Forex Profit Alert: June 30, 2008
June 30, 2008
Today was a humbling day indeed. The Swiss absolutely spanked us and sent us crying home to mamma. Ok, it wasn’t that bad but getting stopped out is never fun.
On the bright side, we do have six new trades that all look promising. When the Swiss moved through our low pivot reversal and closed up this indicated that the pair is reversing and continuing higher. Look for this pair over the next few days to move to previous support which has now become our new resistance level.
Today we have 6 new trades and 1 closed trade.
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Global Economic Calendar: November 16 - 21, 2008
June 30, 2008
Forex Profit Alert: June 29, 2008
June 29, 2008
The market opened this Sunday with all four major pairs having gapped. The JPY gapped up three pips on the open. The EUR opened down twelve pips. The GBP only gapped up by one pip. The CHF opened up four pips higher than last week's closing price. None of the pair's gaps were large enough to trigger a gap trade this week. We will have to check next weeks open to see if there are any new gap opportunities to trade.
We have seven new pivot trades, no open trades, and no closed trades.Global Economic Calendar: November 9 - 14, 2008
June 29, 2008
Global Economic Calendar: November 2 - 7, 2008
June 28, 2008
Global Economic Calendar: October 26 - 31, 2008
June 27, 2008
Forex Profit Alert: June 26, 2008
June 26, 2008
Global Economic Calendar: October 19 - 24, 2008
June 26, 2008
Margins in Forex Trading - Importance of Margins for Profit
June 26, 2008
Trading in the Forex market is done with “lots” and “mini-lots” of currency pairs. These lots and mini-lots are leveraged money, which is what allows you the potential to make so much profit from trading currency in the Forex. The standard size for a lot is $100,000 in currency, while a mini-lot usually represents $10,000 in currency. What leverage allows, is that you don’t need $100,000 to trade $100,000 worth of currency. That’s where leverage comes in.
If you have leverage of 100:1 then you only need $1,000 to trade a lot, since the money is leveraged at around 100 to 1. Most leverage comes at levels of 50:1, 100:1, and rarely at 200:1.
These are the most common amounts used, though sometimes you might hear about a “micro-lot” being traded. A micro-lot is 10% of a mini-lot and has a value of $1,000 of currency. Usually, though, all trading will be done with lots and mini-lots. The use of lots allows more trading because a smaller amount of money (the margin) can allow a trader to control a much larger stake of actual currency. Margin, leverage, and lots and mini-lots are very much connected and allow the common trader to be involved in the Forex market. Traders can trade larger amounts of money with leverage than they could otherwise afford, allowing them to make a much larger return on their trades. This occurs because money is being returned on the entire lot, not just on the initial amount in the trader’s account.
This is how a trader can make profit on a .0001 raise in a currency value, because the sheer amount of currency involved is likely leveraged 100 times over.
The same can happen the other way, however, so while the Forex market offers unmatched opportunities in gaining profit, leverage also magnifies losses when the trader is on the wrong side of a market swing.
You need a good proven trading system to avoid being on the wrong end of a market swing.
And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/
From Jason Fielder – Founder, ForexImpact.com
Understanding Pips in Forex Currency Trading
June 26, 2008
As a new Forex trader, one of the most important things you will need to learn is how to figure out the value of a pip for any currency pair. A pip is the smallest measure of value in a currency pair in Forex, so it’s critical that you understand this concept.
When someone is saying “30 pips,” they’re talking about thirty units of value in a trade. Both profits and losses are measured in pips, though a pip for USD/JPY is not the same as a pip for USD/CAD. The simplest way to put it is this: one pip is one unit of the smallest measured decimal place. For example, if you are trading USD/JPY at 114.95, then one pip is .01 Yen, since that is the smallest decimal place of measurement used in this pair. The JPY is measured in two decimal spaces, and almost all other currencies are measured in four, though it does vary.
For example, if the USD/CAD is trading at 1.0621 CAD than a pip for this transaction is .0001 CAD. If you trade AUD/USD while it’s at 1.2433, then one pip for this trade is .0001 since that combination has four decimal places, as well. See how that works? Like many parts of Forex trading, it is easy once you get used to it. So if the USD/JPY is quoted to only two decimal places, so Yen .01 is the value of this pip. If this pair goes from 114.95 to 115.00, it gained 5 pips. Likewise, if the USD/CAD goes from 1.0621 to 1.0611, it lost 10 pips.
That simple math is all that’s needed at that point. So if USD/JPY went from 88.25 to 88.29 that would be a 4 pip increase. On the other hand, if it went from 88.25 to 87.90, that would be a 35 pip loss. As a note, many non-Yen currencies are figured out four places, making many pips involving USD in the currency pair .0001, but just remember that a pip is one unit of the furthest listed decimal point and you’ll do fine. This also means that for each currency pair the pip can be a different value. You will want to keep track of this.
And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/
From Jason Fielder – Founder, ForexImpact.com
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