The Aussie Playing Field: How To Trade AUDUSD

Hello Traders,

Here is today’s Forex analysis and FX tips on how to trade the Australian Dollar versus the USD:

Aussie turnaround

The Aussie has had a turnaround quite recently most notably marked by the pinbar candle stick formation at the bottom. Ever since then the Aussie has been going sideways and has not yet managed to continue with the potential bullish reversal.

Yesterday’s candle

Yesterday’s day candle however might be the 1st signal of continuation. The day candle had a substantial body with a close very near the high, which signals decent strength to the upside. Furthermore, it is worth noting that the day candle has also engulfed price action of the previous trading day.

 

Confirmations

Besides the above, the currency has the following confirmations:

a)      The Aussie bounced off the bottom of the sideways range

b)      It has a clear close outside of the downward trend line

c)       The Aussie is making higher highs and higher lows on the 4 hour chart

Warnings

However, it should also be noted that the Aussie has been ranging between the 1.02 and 1.06 levels since summer 2012. The flat 200 ema on the day chart confirms the lack of a trending mode.

Also the breakout out of the down trend on the 4 hour chart is hardly convincing when one sees a doji with a huge wick on the top of the candle.

 

Enough space for upside?

That being said, the main question is: does this move have space to the upside? How to trade the AUDUSD?

Yes it does, but a trader must be careful of the 4 hour exhaustion wick. The currency could retrace a bit before continuing north.

If it does break the top or give a sufficient retracement and turnaround, the Fib targets and Fib retracements nicely line up with each other. The most likely target is -0.618 and 618, where the Aussie shows a nice confluence at around the 1.04 level.

Depending on price action we will have to investigate whether the Aussie has more power and strength to continue its upward march, or whether we get the downward continuation.

Extra support

If you are looking to get extra Forex training, then it might be good to consider our LIVE TRADING ROOM. You have access to a free one day trial this Wednesday from 8am EST. Click here for all of the info. OR take a look at this link for more of our Forex services, including Forex mentoring.

Sharing

Please let us know what your opinion is of the Aussie or another currency?

We hope that the post has helped you with how to trade the Aussie. If you like the article, then we thank you for sharing this post. It is so appreciated!

Good trading!
 

View the original article here

The Great British Pound’s Weakness in the Forex Market

The GBPUSD has been quite the sight to see since January.

Falling close to 1500 pips already in 2013, along with horrendous economic figures, many fear the UK has slipped into it’s third recession since the 08' financial crisis.

 

Official data released on Tuesday showed manufacturing production is down 1.5% in the UK from last month. Weak production figures have been a huge component in the economy’s weakness. Recently the Bank of England decided to not add a fresh round of QE, but in result of Tuesday’s economic figures, there are refreshed expectations of further UK quantitative easing in the near future.

“This is the penultimate nail in the coffin in terms of triple-dip – it’s pretty much game over now,” said economist Alan Clarke at Scotiabank (Reuters)

The fact alone that the UK is heading into a third recession is enough to keep investors short on the GBP.

It is also worth noting that U.K. inflation expectations are the highest since September 2008 according to “World First”.

The cause of the evident GBP weakness and the JPY weakness in the Forex Market is not just these currencies weaknesses, it’s also a result of the U.S. Dollar’s strength. Therefore, this week, with about 20 United States economic news events, we could see a lot of continued volatility in the GBPUSD and USDJPY.

View the original article here

United States retail sales, stock market, and value of the u.s. dollar

In the past week the DOW Jones has been violently pressing higher and higher.

Investors and economists had their eyes glued to their computers today awaiting the much anticipated retail sales figures for February. “Will the stock market boom continue?” Some ask themselves as they hope bullish retail sales will manifest in a continued bullish market.

Both the retail sales figure and core retail sales figure were double or more than their forecast.

The general forecast across the board for Wednesday’s retail sales (and core) was a positive .05%. Retail sales figures hit 1.1% while core retail sales hit 1.0%. (Core retail sales exclude automobiles)

“It’s a positive indicator that consumers are adjusting to the higher payroll taxes and higher gasoline prices,” said Russell Price, Ameriprise Financial Inc. (Bloomberg)

It is very possible that Americans have not adjusted to high taxes yet. It’s safe to argue that many Americans haven’t made financial adjustments at all yet. Adjusting to taxes can be a process that takes some time to manifest in the market.

The EURUSD is hitting lows unseen since December.

The U.S. Dollar strength is far from invisible. Momentum could be lost in a heart beat, especially with the issues in Washington. Riding out a trend as long as you can though can be a wise thing to do.

What are your thoughts about the United States Dollar? Do you think it is odd that the U.S. stock market and the U.S. Dollar are both strong?

View the original article here

USDJPY Break & Retest?

Hello Traders!

Today’s article will be focused on the USDJPY. Needless to say, the Yen has been in a huge uptrend, so lets get this analysis starting to see if there is any power and momentum remaining. We will focus on the UJ, but the information will be also very useful for traders who trade in the EURJPY, GBPJPY, and any other cross on the JPY. So here is the free Forex advice and tips on the UJ.

USDJPY

The Yen has had rocket speed ever since October 2012. It first launched from 77 price level and in the meantime it was 30 pips shy of the 97 area. That in itself marks a 2,000 pip move. Not bad for the UJ, huh?

The entire month of February turned out to be sideways pause. But after weeks of congestion underneath the 94.50 area, the UJ’s bullishness again shows signs of revival.

Week chart

The week chart confirmed the continuation with a strong bullish close of the week candle above the 94.50 resistance zone. The close was very near the high indicating that there was no significant sell off or profit taking in that week.

The 20 ema is still showing us a good angle as well. The uptrend seems back in play.

 

Questions

Is the break out real or false? Will we get a retest of the prior resistance zone top? Will we square up this candle and then go or will we reverse?

All very valid questions and that is why Winners Edge is here to offer valuable Forex trading advice and a way how to learn Forex trading.

In my opinion the break out looks sustainable. Not only does the week candle have a clear close above the resistance zone and near the high of last week, there are is also full day candle above that same resistance zone.

 

Trend channel

The well built trend channel on 4 hour chart is an excellent indication of a well built trend.

1)      The uptrend channel has a perfect angle of +/- 45 degrees. This angle translates into a perfect harmony between pip movement and time. The pace of this trend is very sustainable. Trend channels with a higher degree angle are too steep and not sustainable. Trend angles which are too shallow do not indicate sufficient strength.

2)      The uptrend channel has multiple hits on all internal trend lines, which confirms the validity of the trend channel. The lower, upper and middle trend line all have tons of hits and places where the currency respected those lines.

The currency just recently respected the upper trend line and now is correcting itself downwards. The middle line of the uptrend channel could be a support area. That level corresponds roughly speaking with a retest of the top of the previous resistance zone.

 

Retest of resistance

The retest of the broken resistance area could definitely be retested at one point or another. There is a very decent statistical probability that this level will act as support. Why?

Many traders, big banks, and institutions are eyeing this key level and they could be looking for an entry at around that level.

Will that happen now? Maybe.

EW count

If we look at the 4 hour chart and apply a quick Elliott Wave analysis to it, then we can see that there should be still one more up move remaining to finish at least the wave 5 of wave 3.

The UJ seems to be in a wave 4 as we speak. And wave 4’s like to bounce at the 382 Fibonacci retrace level. Other bouncing areas are the 500 fib and of course the 618 fib.

The 618 Fib would be unusually deep for a wave 4 but the 618 would equal the same price level as a retest of the top of the resistance zone.

In any case the entire EW count is invalidated if the UJ would cross back into the price territory of wave 1, which is at 93.70.

After that we could still get a possible wave 4 and a wave 5.

 

1 hour

On the 1 hour chart we see that the -272 target of the 3 move correction could be another reason for a bounce. The lower single trend line in black could also act as support. The upper single trend line in black could act as resistance. If we do break one of these lines, especially the upper resistance line, then this could signal the continuation of the trend for one more push up.

 

We hope you enjoyed this Forex training and are able to use of these Forex tips of your Forex strategy trading.

Thanks for sharing and good Trading!
 

View the original article here

Weekly Preview on the EUR-USD-JPY Triangle

Welcome traders,

Hope you had a great weekend!

As usual, on Monday’s article I will be scanning and analyzing long-term Forex charts to see if we are able to find a directional bias for the entire week.

But before kicking off this article, I am curios and would like to ask what currencies are you looking to trade this week? Tweet us your answer and reason and we will give you our feedback!

In any case, today’s article will be focusing on Forex analysis on the majors: USD, YEN, and EURO.

USDJPY

It was exactly one week ago when the USDJPY made an enormous crash. Last week’s open saw the UJ’s price gap up and then fall 400 pips in a very impulsive manner.  

The bearish move, however, has not been met with any follow through. The UJ has seen support ever since and the weekly candle actually noted a slightly bullish close.

The strong move down almost begged for continuation but the bears have not managed to wrestle back control… so far.

The currency pair is now approaching the top and it is very close to the 786 retracement level of that swing high swing low to the downside. This begs the question: “how to trade the USDJPY”?

The current area is definitely an area where potential resistance might stop the bulls… at least for the moment.

 

Don’t forget that this week there are economic announcements on the Euro interest rates, British Pound interest rates, Yen monetary statements and U.S. Dollar NFP figures.

But despite the busy schedule, I do think there are a couple of likely scenarios which will unfold. Continue reading to gain a perspective how to trade the USDJPY.

Potential scenarios

In my Forex trading plan I will be closely following price action behavior in this region and be looking for clues of major resistance or a break of the top and continuation. The following is the best Forex advice I can give in this difficult spot for the UJ:

1)      From a technical analysis point of view, the currency could definitely show reversal signs anywhere between the 786 Fib and the top for one more correction down. The currency in that case would complete a third impulsive move down, thereby completing a bigger ABC correction for a wave 4. A break of the bottom would be the biggest confirmation.

 

2)      However considering the strength of the uptrend, last week Monday’s 400 pip drop might be all the correcting the UJ does. Only a clear break of the top however would convince me that the long-term uptrend is back in full force.

3)      Another scenario could be a prolonged sideways range in which the UJ bounces back up and down between the tops and bottoms. If it were to make a bigger consolidation zone, then at some point in the future the UJ most likely will break to the upside.

Depending on which of the 2 scenarios unfold in the upcoming weeks, I am looking for the following targets.

Targets

If the UJ does correct deeper, then a nice area of confluence would be the -0.618 target. This target nicely lines up with the 382 retracement Fibonacci level for a great confluence. It is my current expectations that at this point the UJ will continue with the bigger uptrend.

If the UJ however continues to the upside without giving a bigger pullback, then the next target to the upside is in my opinion the 100 level, which is the 500 Fib retracement level on the week chart.

I am definitively incorporating these targets into my Forex trading plan.

EURUSD

The EURUSD had a bearish day on Friday with another push lower, which broke the 1.30 support level.

 

The move down would normal signal an impulsive move down towards lower levels but Friday’s day candle finished with a decent size wick at the bottom. There is also divergence on the 4 hour chart and multiple divergences on the 1 hour chart. Divergences on multiple time frames should always warn traders that a potential retracement could be around the corner. So for the EURUSD I am neutral in my Forex trading strategy unless we break the bottom or top on the 4 hour chart.

 

Thank you so much for all the sharing – it really is great when you share this info with other traders.

Options Analysis 03/04/13

In this guest post from DayTradingZones they are providing WinnersEdgeTrading key market analysis for some futures markets plus GOOG and AAPL for options plays.

View the original article here

This Week’s Ultimate Trading Guide

Dear Traders,

Welcome to the today’s article. We will be focusing on many currencies so grab that cup of coffee and get ready!

I will be analyzing the likely moves of the upcoming week or 2 (depending on how fast things progress).

I think this analysis will prove to be useful for any trader who is looking to capitalize on medium swings in the market. So please continue to read how to trade the majors in the next week or 2!

Of course, it is not an easy to task to make predictions in a week which is full of high level news events, such as interest rates, monetary statements and NFP figures, so please consider this when reading.

EURUSD

The halfhearted break of the bottom and 1.30 level on Friday has seen not bearish follow through as of yet. The 1 hour divergence and especially 4 hour divergence have had their effect on the currency and the EU has been progressing up slow but surely ever since. Due to the 4 hour divergence I still favor a bigger ABC retracement up to the 1.3140 area and later on even to the 1.3250 area.

 

The FX advice on how to trade the majors continue next with the GBPUSD.

For the Cable I am expecting a similar corrective scenario as for the EURUSD. Considering the fact that the ERUGBP is slightly correcting itself to the downside at the moment, I might expect a bit more bullishness on the GU than the EURUSD. This will logically last until the EURGBP resumes its uptrend. Eventually I am expecting the GU to reach the 1.5250-1.53 area after which there could be a decent fall to at least the 1.49 zone and potentially even further down.

 

The FX advice on how to trade the majors continue next with the USDJPY:

In my opinion the USDJPY up trend is not over yet. The big question is: from where and when will it continue to the upside? A break of the top would definitely signal a continuation. In that case waiting for a retest of the broken top is always a safe play. However if the UJ would indeed be looking to correct deeper, then there is a very nice confluence between the C wave target at the -618 and the 382 retracement Fib at 88.50. This would definitely be a long I do not want miss at the 88.50 area with targets in between 98 and 100.

 

The FX advice on how to trade the majors continue next with the AUDUSD.

The Aussie could be either in a wave A of wave 2 of wave C, or in a wave C of wave X of wave B. In any case the likelihood of having downward corrections followed by a move up seems high. One the currency makes the third move up, there is a potential for a good return to risk swing trade with -0.97-0.98 as a likely target area.

 

The FX advice on how to trade the majors continue next with the EURJPY.

The EJ could make one or 2 more corrections down before continuing the uptrend. The uptrend will most likely happen at the same time as the UJ upside (barring any huge falls on eurusd). There are 2 likely candidates for the uptrend continuation; either at the -272 target and 382 retracement at +/- 117 or at the -618 target and at the 500 fib retrace at 114-114.50 area.

Of course we will keep you updated on the development of this analysis as time and price move on. The above mentioned analysis might need to change depending on price action developments in the upcoming days. But this is my expectation at the moment.

Thanks for sharing this vital piece of information with all of your trading buddies!

I wish you Good Trading!

EURGBP to Parity Part II

Welcome traders!

Today we will be again providing free Forex analysis and FX advice…

So get ready for the ride!

Yesterday we already summarized the potential FX movements in the currency market for all of the majors. The analysis is still valid for today so you can read all the details on how to trade the majors right here. 

With the majors thoroughly examined, let us now revisit the EURGBP (EG) cross.

EURGBP

The last analysis dates back from a month ago (Feb 7). And the EG has been behaving exactly as predicted (except the upside target was slightly missed)! That is always good news.

The question now arises: what next? How to trade the EURGBP?

It goes without saying that the EURGBP has been in a huge up trend.

But can the trend continue? And if so, when and where? Let us take a deep look at how to trade the EURGBP.

Detailed analysis 

The momentum and strength to the upside are still in force and it looks like the uptrend is far from over.

Here are the clues I am looking at:

-          Clearly we have higher lows and higher highs for a long while (since summer 2012)

-           The move up on the day chart was very impulsive and strong when looking at day chart candles and high MACD levels

-          There is nice uptrend channel with the impulsive wave crossing from the bottom of the channel to what could be the top of the channel

-          Fib targets to the upside are being respected (-1.618 of wave 1)

If we add a bit of EW analysis in the mix than we can conclude that:

-          We are in a wave 4 of wave 3

-          This means we should expect a wave 5 of 3, a wave 4 and then a wave 5

-          Or in other words 2 more waves to the upside

Trend line

Despite the nice impulsive move up and great trend channel, the EG did break the single trend line by going sideways passively. We can conclude that:

-          The EG did not find power or buying strength at expected support

-          The impulsive move up is most likely over

When and where to expect up side?

When looking at the trend channel on the screenshot, the currency seems to be at the upper end of the trend channel. It also looks like the currency is in a wave 4, which are most of the time lengthy, flat and drawn out type of corrections.

Because of that I am expecting the following:

-          A bounce off of the 382 Fibonacci retracement level (+/- 0.85)

-          A move up from that 382 Fib to the -0.272 target (+/- .90)

-          Because of the single trend line break, I expect the correction to be long (for the moment)

-          Most likely there will be confluence with the middle trend line before the uptrend continues

The trade to the upside of course would be a great 500 pip move.

If I see any reversal candle stick patterns in that region I will be hunting for a long.

Of course if the top were to be broken before the 382 gets hit, then my current expectations are invalidated and the currency is most likely continuing further north. I would especially be keen on a retest of the broken top before trading it though.

This is my Forex analysis, FX prediction of the day, and my current plan on how to trade the EURGBP

Sharing

Please share this article if you like the analysis, thanks!

Don’t forget to add us to you twitter account or recommend to your friends:

Thanks and Good Trading!
 

Bernanke affirms QE3, not seeing the “potential costs of the increased risk-taking”

It has been almost 6 months since the third round of quantitative easing began in America.

The Chairman of the Federal Reserve Ben Bernanke has not wavered on his positive outlook for the QE program.

This quantitative easing effort is one of a different breed, it provides unlimited QE to the Federal Reserve. Therefore, QE3 could go on for the next 20 years, or it could stop tomorrow.

Not only is the time frame unlimited, the amount of money the Fed can create is unlimited. Currently the Federal Reserve is buying $85 billion worth in bonds every month. This number could increase or decrease depending on the preference of the Fed. This process is to go on until the Fed thinks the job market has meet their vague “improve substantially” target.

Potential cost of QE3 downplayed “To this point we do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery and more rapid job creation,” Fed Head Mr. Bernanke said in a meeting on Tuesday. (NY Times)

They do not “see the potential costs of increased risk-taking”. Isn’t this how America got to where it is today economically? It is because we didn’t see the cost of our risk taking. Instead of looking 50 years down the road, we have looked at 4 years down the road over and over again. Therefore, our national debt is over 16 trillion dollars and doesn’t show any sign of slowing down.

The potential risk of continued quantitative easing is inflation. As the Fed creates more money, money becomes less valuable. It is simple economics. Therefore, while the bank’s Fed accounts continue to be filled up, American grocery bills may start to go up. One of the most significant caution signs of the QE3 process is that there is no defined goal. “Improve substantially” (September Meeting Minutes) is as clear as mud, yet the Fed is continuing to pursue a better job market. Hopefully Bernanke and the Federal Reserve do have some definition to “improve substantially” even though they are not sharing it with the public.

How does this influence the Forex market? The risk aversion capacity of the U.S. Dollar could be running thin. Yes, it is still to be considered a safe haven, but in the next few years (if the economy continues to go in the same direction that is going) I think it’s reputation could be so poor that it’s safe haven status could be decrepit. Therefore, if inflation would take place, or another crises like monetary situation, the value of the U.S. Dollar could significantly decrease.

Forex Trading: The Best Education You Can Have

People trade in a daily basis. Some trade their services for money, while others trade products like food, toys and other things for money. People trade to earn money to properly live their everyday lives.

This is why people work, why people put up businesses and why people trade in the financial market. Today, it’s all about money in order for you to give yourself and your family a comfortable life.

If you are considering making money aside from your day job or starting a career, you can do so by trading in Forex. Surprisingly, most people don’t understand how Forex works but are still interested to trade in this financial market. Besides, people would really want to trade in the largest, the most liquid financial market in the world.

Forex operates 24 hours a day and 7 days a week with no centralized location unlike other financial markets. It involves all the currency in the world and trillions of dollars are being exchanged everyday in this market, thus, making it the worlds largest and the most liquid financial market in the world.

The Forex market promises traders a promising way to earn money. However, Forex also has its risk and it is a fact that people lose money trading in this market. But, there are also people who became millionaires in the Forex market almost overnight. Education is the key to start trading in the Forex market. Without the proper knowledge in Forex trading, chances are you will end up losing money.

First of all, before you trade in Forex, this market is the buying and selling of currencies. In simpler terms, you, as a Forex trader, will be purchasing one kind of currency against another kind of currency. This gave Forex a trend to trade in pairs.

If you traveled to another country, chances are, you traded your currency against the local country’s currency to enable you to buy things from that country. If you did this, you have a good idea on how Forex works.

If you want to trade in this ever liquid market, you have to get the best education possible in trading currencies. A good education will enable you to trade in Forex more effectively and increase your chances of earning a considerable amount of money. It is even known that lots of people have quit their day job to concentrate in Forex trading.

Getting a good education about Forex trading will also let you increase your chances of profiting and decrease the risks involved. In getting the proper education in Forex trading, you will also learn how to read Forex charts. Forex charts are one of the most important things you should learn in order to successfully trade in the Forex market. Without this knowledge, you are doomed to fail in this very liquid market.

Expert Forex traders said that the best way to learn Forex is by actually trading in the Forex market. For this, website developers and software developers have developed a program that you can use to practice trading Forex. There are websites available that will enable you to open a dummy Forex account where you can trade in a simulated Forex market using no money at all. With this kind of software, you can really learn the way Forex works. It is also a great program to get the feel of the Forex market and you can even consider it as a stepping stone to start trading in a real account.

Thanks to the internet and the advancement in technology, everyone can trade in this financial market. Unlike in the past, only the multi-national companies and financial institutions, such as banks are allowed to participate in the Forex market.

Trading Forex is relatively easy to start. All you need is a computer with an active internet connection (high speed internet), a funded Forex account, and a trading system.

Always remember beside the fact that Forex can give you the potential to earn a lot of money, the risks involved is also equally great. So, you should first read books about Forex trading that is readily available in the internet for purchase or for download. You have to learn about the major currencies traded in the market, about leverage, and also about minimizing the risks in trading.

Forex Trading: What to Trade, When to Trade, and How to Trade

One of the best ways to earn money is trading , the largest  and the most liquid trading in the world is the financial market .  You can be sure that you can earn huge amounts of profit  if you know how when, andwhat to trade. It is a fact that a lot of people who traded in this financial market became successful and became very rich almost overnight.As a trader, you would want to take the prospect to get lots of money and of course, set up a trading career in Forex. The Forex market, as mentioned earlier, is the largest and the most liquid financial market in the worldwide. The stock marketis different with other financial market, Forex does’t centralized location as it operates 24 hours a day at diverse locations around the world. Trades in this financial market are done from side to side an electronic network.As of the high financial requirements ,in earlier time,  Forex was only limited to big worldwide corporations and financial institutions, such as banks. However, because of the advancement of the communications technology and also the existence of high speed internet, Forex in the late 90s is now available for everyone who is interested in trading in the Forex market.For a Newbie trader, Forex trading is just the buying and selling of different currencies of the world. It's looks very simple for everyone, but you must pay attention that  traders and traders who have experienced a loss a large amount of money in the forex.Always rememnber  in mind  about a fact that in Forex probability between make a great money and lose a great money is exactky equal . For that reason, before you come into this market and trade, you should first think about a few things in order for you be successful in this money making venture.After  you know how to trade currencies,  you need a personal computer completed with  an active internet connection, a funded Forex account and a Forex trading system. There are various websites that proffer Forex trading. You have to open and fund an account first with your chosen website if you want to start trading,. After that, you can now start trading in the most liquid market in the world.In order to keep up with the updates and change of price and prevent slippages from happening , You need to have a fast internet connection.  A further thing you have to consider is that as much as possible, you should  sign up in a Forex website that offer dummy accounts thus you can perform your skills and strategies in Forex trading.After  you identify how to trade in the Forex market, the next thing you have to to know is what to trade. The Forex market involved different currencies from all over the world. It is also traded in forms of currency pairs. Here are the different currency pairs that you should consider trading in the Forex market:These are the the majority usually traded currency pairs in the Forex market. It is up to you to settle on which currency pair you want to trade depending on market  situation. If you do it right, you may be happy   your  earning  a large amount of income. The next and final thing you should consider is when you have to trade in the Forex market. Since the Forex market is operated 24 hours a day, you are able to trade every time you want. And, since it is the most liquid, you can get out every time you want. It is just a matter of be on familiar terms with the market condition is profitable or if it is falling.Forex traders are mostly investors who try to forecast which currency is going to raise in value and which currency will shrink in value. investors use Forex charts to spot a trend and verify when a particular currency will raise or shrink in value.Always remember that in all trades done in the financial market, you should also expect to suffer from losses. You should be prepared to deal with it and accept it. This is why you need a substantial amount of money to trade in Forex.

Forex Trading: The Best Education You Can Have

Posted by Biz Online

People trade in a daily basis. Some trade their services for money, while others trade products like food, toys and other things for money. People trade to earn money to properly live their everyday lives.

This is why people work, why people put up businesses and why people trade in the financial market. Today, it’s all about money in order for you to give yourself and your family a comfortable life.

If you are considering making money aside from your day job or starting a career, you can do so by trading in Forex. Surprisingly, most people don’t understand how Forex works but are still interested to trade in this financial market. Besides, people would really want to trade in the largest, the most liquid financial market in the world.

Forex operates 24 hours a day and 7 days a week with no centralized location unlike other financial markets. It involves all the currency in the world and trillions of dollars are being exchanged everyday in this market, thus, making it the worlds largest and the most liquid financial market in the world.

The Forex market promises traders a promising way to earn money. However, Forex also has its risk and it is a fact that people lose money trading in this market. But, there are also people who became millionaires in the Forex market almost overnight. Education is the key to start trading in the Forex market. Without the proper knowledge in Forex trading, chances are you will end up losing money.

First of all, before you trade in Forex, this market is the buying and selling of currencies. In simpler terms, you, as a Forex trader, will be purchasing one kind of currency against another kind of currency. This gave Forex a trend to trade in pairs.

If you traveled to another country, chances are, you traded your currency against the local country’s currency to enable you to buy things from that country. If you did this, you have a good idea on how Forex works.

If you want to trade in this ever liquid market, you have to get the best education possible in trading currencies. A good education will enable you to trade in Forex more effectively and increase your chances of earning a considerable amount of money. It is even known that lots of people have quit their day job to concentrate in Forex trading.

Getting a good education about Forex trading will also let you increase your chances of profiting and decrease the risks involved. In getting the proper education in Forex trading, you will also learn how to read Forex charts. Forex charts are one of the most important things you should learn in order to successfully trade in the Forex market. Without this knowledge, you are doomed to fail in this very liquid market.

Expert Forex traders said that the best way to learn Forex is by actually trading in the Forex market. For this, website developers and software developers have developed a program that you can use to practice trading Forex. There are websites available that will enable you to open a dummy Forex account where you can trade in a simulated Forex market using no money at all. With this kind of software, you can really learn the way Forex works. It is also a great program to get the feel of the Forex market and you can even consider it as a stepping stone to start trading in a real account.

Thanks to the internet and the advancement in technology, everyone can trade in this financial market. Unlike in the past, only the multi-national companies and financial institutions, such as banks are allowed to participate in the Forex market.

Trading Forex is relatively easy to start. All you need is a computer with an active internet connection (high speed internet), a funded Forex account, and a trading system.

Always remember beside the fact that Forex can give you the potential to earn a lot of money, the risks involved is also equally great. So, you should first read books about Forex trading that is readily available in the internet for purchase or for download. You have to learn about the major currencies traded in the market, about leverage, and also about minimizing the risks in trading.

Bernanke affirms QE3, not seeing the “potential costs of the increased risk-taking”

It has been almost 6 months since the third round of quantitative easing began in America.

The Chairman of the Federal Reserve Ben Bernanke has not wavered on his positive outlook for the QE program.

This quantitative easing effort is one of a different breed, it provides unlimited QE to the Federal Reserve. Therefore, QE3 could go on for the next 20 years, or it could stop tomorrow.

Not only is the time frame unlimited, the amount of money the Fed can create is unlimited. Currently the Federal Reserve is buying $85 billion worth in bonds every month. This number could increase or decrease depending on the preference of the Fed. This process is to go on until the Fed thinks the job market has meet their vague “improve substantially” target.

Potential cost of QE3 downplayed “To this point we do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery and more rapid job creation,” Fed Head Mr. Bernanke said in a meeting on Tuesday. (NY Times)

They do not “see the potential costs of increased risk-taking”. Isn’t this how America got to where it is today economically? It is because we didn’t see the cost of our risk taking. Instead of looking 50 years down the road, we have looked at 4 years down the road over and over again. Therefore, our national debt is over 16 trillion dollars and doesn’t show any sign of slowing down.

The potential risk of continued quantitative easing is inflation. As the Fed creates more money, money becomes less valuable. It is simple economics. Therefore, while the bank’s Fed accounts continue to be filled up, American grocery bills may start to go up. One of the most significant caution signs of the QE3 process is that there is no defined goal. “Improve substantially” (September Meeting Minutes) is as clear as mud, yet the Fed is continuing to pursue a better job market. Hopefully Bernanke and the Federal Reserve do have some definition to “improve substantially” even though they are not sharing it with the public.

How does this influence the Forex market? The risk aversion capacity of the U.S. Dollar could be running thin. Yes, it is still to be considered a safe haven, but in the next few years (if the economy continues to go in the same direction that is going) I think it’s reputation could be so poor that it’s safe haven status could be decrepit. Therefore, if inflation would take place, or another crises like monetary situation, the value of the U.S. Dollar could significantly decrease.