E-Money Blog - Forex, CDF, Commodities - daily news and rates

By Mr. Andrew Noman 

Quality Forex training is the key to success for any budding Forex trader. But sometimes I think Forex training is too regulated then at other times I think that there isn’t enough oversight. The reason that Forex training is so important and vital is because the Forex market is extremely competitive, volatile and fragile. Training is an essential step to become an experienced trader. Forex training is in demand as many people look for ways to profit from the currency trading marketplace.

Some things to consider when looking for free Forex training. Many websites offer a free demo account and free Forex trading System training. You can get free, live Forex training over the web from professional traders. Go to one of these websites and try a free practice account and learn how currency trading works.

Choosing which of the many Forex courses you want to take is not an easy task. There are literally hundreds of courses and materials out there for proper Forex training. Some training courses are specifically designed for home study use. But is it necessary for new Forex traders to study more about Forex trading courses or just join a Forex training program. The good news is that lots of courses will show you winning entry techniques and you should take the time to find and digest as many training courses as you can before you begin. Due to this fact, more and more people are either enrolling into FOREX courses or purchasing different kind of books regarding FOREX trading. Online education courses are a great way to learn and there are many to chose from on the internet today.

Without the proper preparation and expertise, a trader’s chances of succeeding are reduced. With the correct training and mentoring a new trader can then intelligently develop a strategy that is suitable for him. Get to know the tools of the trade, as well as what will be expected of you to become a successful trader. If you’d like to learn how to become a successful Forex trader, consider a professional Forex mentoring course. With this kind of one on one assistance, a new trader can acquire and improve their necessary professional trading skills. With a little research, you can learn how to avoid common Forex trader mistakes and how to learn to move on. Have you heard the wise saying that a trader who fails to plan, plans to fail.

You may ask, “Do I have what it takes to be a currency trader” ask yourself do you have the drive and tenacity to succeed . I can tell you that as a well trained currency trader you can earn average profits of 5% to 25% or more per month. As a competent Forex trader you must study and understand daily foreign exchange rates. Becoming a successful trader will take work and a little stress, but the rewards are great. But I would say that fear and greed are, without a doubt, the enemies of the successful Forex trader and proper training is very important if you seriously want to get into the world of Forex trading.

So to sum it up quality Forex training is the key to success. The reason that Forex training is so important and vital is because the Forex market is extremely competitive, volatile and fragile. Forex training is essential to become an experienced trader. Forex training is very much in great demand as many people are looking for ways to profit from the currency trading marketplace. Training is widely available on the internet, including online courses, advanced trading workshops, books and more. If you search the internet you’ll discover a lot of companies offering Forex training along with some great free Forex resources.

Autor:Bret Frek

Fibonacci retracement analysis is a very widely known and used technical analysis tool, used by traders to mainly calculate possible targets for entry and exit points, and in determining potential levels of support and resistance. The thought behind Fibonacci retracements suggests that the price of whatever currency or market youÂ’re observing will often retrace a certain percentage of a previous move, and find support or resistance at the main Fibonacci levels before continuing in its original direction.

What makes this particular indicator superior to most, is that it’s known as a ‘leading’ indicator, not lagging. In other words it has predictive powers, unlike other technical indicators that are informative of change in trend, after it has already occurred, fibonacci retracement levels show you possible turning points before they occur.

These levels are formed by drawing a trend line between two extreme levels (high & low) of a main market move, then dividing the vertical distance by the main Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%.

The majority of good charting packages have the ability to do this automatically for you. For example in Metatrader, all you have to do is this: First you choose a main market move, select the Fibonacci button (the one that has a couple of horizontal lines on it, along with the letter “F”), hold your mouse button down, and drag the line from the bottom of the main move, to the most recent top (for uptrends). In market moves that are moving downwards you would apply the Fibonacci tool starting at the peak of the move. Metatrader then automatically draws in horizontal lines at the main Fibonacci retracement levels.

You may have heard of a famous trader by the name of William. D. Gann who implemented fibonacci levels in his trading, he also mentions them throughout his books and courses. Of all the levels he talked about, he put the greatest significance on the 50% retracement level. He even went as far as to saying: “you can make a fortune trading this one level alone”. (How to Make Profits in Commodities). Hearing this from such a widely known and very successful trader shouldn’t be taken lightheartedly. Although this book was about trading commodities, many traders use the same principals today, in markets around the world, including the forex market.

How can Fibonacci retracement levels be used?

So the question now is, can you trade forex based on Fibonacci levels alone? The fact is that it is very hard to determine at which Fibonacci retracement level prices will retrace. ThatÂ’s why forex trading systems that use Fibonacci also incorporate the use of other indicators, or price action. For example, if you were to observe that two other indicators are indicating a reversal, while price is near the 61.8% retracement level, this may give you extra confidence that a change in trend is about to occur.

Or alternatively, you could observe a candlestick reversal pattern occurring at a key fibonacci retracement level. For example if a shooting star was formed at a 61.8% retracement level, this would indicate that prices have reached a natural resistance level, and price action is telling you itÂ’s time for a reversal.

Conclusion

Just like pivot points, Fibonacci retracement levels can act as a very helpful guide in determining possible reversal points. But, keep in mind that this is just a tool, and shouldnÂ’t be used alone. By combining the power of fibonacci retracement levels, along with your other technical tools, you should be able to develop a sound forex trading system and add confidence to execute a trade.

Many of the people are making one general mistake when they are starting with  FOREX currency exchange or other business related to money.  I can bet that 90% of the mass that is incoming on the FOREX market is throwing blindly, trusting that the courses offered allover the net will help them create the great profit.  Yes, the FOREX is profitable way but there is one detail that should not be missed in any way.

The fact that you’re operating with money has only one meaning that should be incredibly clear when you’re working with FOREX. The fact that you’re dependable. Dependable not only by the market you’re located - an example if you’re dealing with currencies - only two or three it may seem that you’re dealing on secure but actually when you blink you may loose all that you have placed up to the stop point you may have created. And when you’re feeling good enough in the FOREX stuuf you may loose everything.

This is because the real trick here is hidden in the details. The details are incredibly important and these details will tell you where to place the winning deal. What I am talking about? What are these details when we’re dealing with money? I will tell you. The details that are related with the market where this currency is used most oftenly. The place on the earth where the percentage of the dollars an example have the greatest density will affect brutally the market in case of any kind of instabillity.

Closing the patterns and observing the world we are living in we will adopt the better understanding of the markets, the money and the FOREX stuff in general. When there is war, an example - various markets become more active, others decrease their activity and this of course affects the FOREX proportion related not only to this particular currency but to all of the currencies worldwide. I can give you some examples but my conference is about to begin, so we will proceed with the digging deeply into the FOREX tomorrow.

Martin Tomoff , All rights reserved, 2006