Tag Archives: Forex

Latest Forex News This Week

The 11th of September 2017 saw the Yuan strengthen for the 11th consecutive day against the USD. The recent political turmoil that has caused economic instability and the devastating effects of hurricane Irma have helped Beijing’s central parity rate with the US. There have been a number of factors this year that have helped the yuan including Trump failing to follow through on many of the election promises he made. Although this seems like a background effect on the forex markets – his inability to deliver on foreign policy has left investors scared that the cannot deliver on any of the economic reforms that were promised in his much publicised “Make America Great Again” campaign.

Last week the yuan saw it’s longest continuous daily rising since 2005. The yuan’s central parity rate broke the all important 6.5 barrier for the first time since May 2016

(source: China Foreign Trade Exchange System), by strengthening 35 basis points. The entire year has seen the Chinese currency show strength against the USD but the movement in the past week has been what has caused the most noise in the markets. Last Friday the central parity rate rose 237 basis points and on the Thursday preceding this it rose 42. On September 1st the rate fell below 6.6, which was the first time since June of last year. The Chinese spot trading exchange market allows for rises and falls of 2% from the central parity rate on any given day. This rate is worked out by using a weighted average of the prices that are offered by the market makers. This occurs before the interbank market opens on each day.

The dollar index dropped right down to a two year low on Friday before slightly recovering and rising 0.2% the following Monday against six of the major currencies.

There are a number of different factors that are working together with the dollars recent weakness to make the yuan have one of its strongest years in the recent decade. China has recently imposed a much tighter management of capital outflows. The traditionally communist country is becoming less enamoured with keeping everything in house and more focused on taking the parts of a capitalist economy they need to to make it work for them.

Due to Trump’s positive comments on the trading partnership between the US and China, the risk and speculation of a US – China trade war has all but died down entirely which has helped the yuan significantly. Market sentiment is on the rise due to a strong economic performance from China in the last few quarters which has again helped the yuan become more of a feared competitor against the other major currencies.

Manufacturing activity is also on the rise and August saw it rise for the 13th consecutive month. The first half of this year saw the economy expand 6.9% which was a bigger increase the market analysts expected. China’s foreign exchange reserves rose for the 7th month in a row which has also had an impact – but even Chinese market analysts have not got faith in the trend continuing.

For investors of large scale funds riding the wave the risk may not be able to outweigh the reward, however for small time investors who are using trading platforms like CMC markets to trade online – riding the wave may bring short term returns with little risk in the last quarter. Although no one expects the yuan to go through a long term rally – it does not look like the short term increases are due to stop anytime in the near future.

Nine tips that will help you make Forex trading a profitable enterprise

In order to trade Forex profitably, there are certain rules that must be followed. There are charts and ratios that needs to be understood when dealing with the currency exchange. There is no doubt that Forex trading is an art and a science, those who engage in it profitably have taken their time to master the rules of trading Forex. The following are nine tips that will enable you make profit as a Forex trader:

  1. Set your goals and choose a compatible trading style:

In order to trade Forex profitably, it is essential that you set your goals and choose a trading style that is most compatible with your preset goals. If your goal is to make Forex trading a full time source of income then you may consider day trading. On the other hand, if your goal is to make Forex trading an alternative source of income then you would be better as a Position Trader. Your goals should determine the trading style you will adopt.

  1. Choose a broker with the most suitable platform for your trading style:

There are different Forex brokers offering different trading platforms. It is very important that you choose a reputable Forex broker like CMC Markets. Moreover, it is important for you to choose a Forex broker that offers a trading platform that is suitable for your trading style. If the trading platform you choose is compatible with your trading style then you are more likely to trade Forex profitably.

  1. Begin with small sums and increase your capital with profits not deposits:

One of the best tips for trading Forex profitably is to begin with small deposits and use the profits to grow your capital. Do not be tempted to increase your capital by making more deposits.

  1. Carefully choose your trade entry and exit time frame:

It is very important that a Forex trader is careful when choosing entry and exit time for making trades. This is because there is bound to be conflicting information when looking at charts from different time frames. What shows up as an opportunity to buy on a weekly chart could be a strong sell signal on an intraday chart. If you are using both the intraday and weekly charts, be careful to synchronize the two. This will enable you to determine the appropriate entry and exit time frame for your trades. Do not set your entry and exit time frame without synchronizing both charts. e.g.Euro and Dollar exchange

  1. Keep a trading journal:

It is essential for a smart trader to keep a trading journal. If you place a winning trade, you should record why and how you made the trade. The same thing should apply to losing trades. A trading journal enables you to keep the trading pattern that wins and avoid the trading pattern that loses. The trading journal should include the entry and exit conditions of each trade as well as the resistant and support levels.

  1. Patience is a virtue for a Forex trader:

A Forex Trader must learn to exercise patience. Patience enables a trader to wait for the right opportunities to appear. A trader must enter and exit a trade at the right moment in order to make profit. Entering a trade and exiting at the appropriate time requires patience.

  1. Implement a risk limit:

It is important for a Forex trader to develop and implement a risk limitation system.There should be a maximum percentage of your Forex portfolio that you are willing to risk on any trade. This implies that a Forex trader must not place the total amount of money in his or her portfolio on a single trade. There should be a maximum percentage that should go into every trade.

  1. Follow Experienced Traders:

Social Trading is a form of Forex trading that allows traders to follow experienced traders and copy their trading strategy. This is a very easy way to succeed in trading Forex.

  1. Develop a strong work ethic:

Hardwork is a fundamental requirement for anyone who wants to succeed in anything in life, same goes for Forex trading. A Forex trader must develop a strong work ethic which involves consistent research and study of market trends, consistently learning about new strategies and working to improve previous ones.

Is It Possible To Make Money Online Trading Forex?

forex-tradingForex trading can be a tricky business.  There are a lot of scams out there that promise that you can make absurd amounts of money in almost no time.  So, is it actually possible to make money online trading Forex?

The short answer is yes, it is possible to make money with Forex trading.  However, you have to be able to pick out the scams and avoid them.  Instead, you should be focusing on the real ways to be successful at trading Forex.  Here are some tips to help you.

  • Learn About The Markets:

You shouldn’t just jump right in and start Forex trading.  Take time at first to learn the forex trading basics, learning about the various markets, what makes those markets fluctuate? When you can identify the patterns of the market, you can be more successful at trading within that market.Make Money Online Trading Forex

  • Consider Your Personality And Limitations:

Before you trade Forex, you definitely need to understand who you are.  How do you handle pressure and risks?  Do you have the money to potentially lose?  Is the risk worth the possible reward, or do you have the type of personality that could cause you to get sucked into making bad gambles?  Based on those answers, you can decide whether or not you should get into Forex trading.

  • Learn From Free Systems:

There are a lot of scams out there that want you to pay money in order to learn their “fool proof” Forex trading systems.  However, you shouldn’t fall for those traps.  The truth is that there are plenty of inexpensive books and even free online guides that can teach you the basics of Forex.

  • Take The Time To Test A System:

You shouldn’t just arbitrarily pick a Forex trading system and hope that it works.  Instead, you need to actually test the system out to see how it would work.  Make sure that your chosen system leaves you with an edge, even if it’s a small edge.  That can make all the difference in the world and not enough new Forex traders take the time to do that.

  • Stick To Your System:Make Money Online

Once you have a system in place, the most important thing to do is to stick to your system.  Some people get bored with Forex trading when they use the same system over and over again.  However, the old adage really is true.  If something isn’t broken, you shouldn’t try to fix it.  Just try to remember that you are making a consistent profit the way things are, no matter how stuck in a rut you may feel.

The other reason that some people change Forex trading systems often is that they think that newer trading systems are automatically better.  Resist the urge to test brand new systems because they aren’t really well-established or proven.  Sometimes the older systems are the best because they wouldn’t still be popular unless they really work.

So, is it possible to make money online trading Forex?  Absolutely, but only if you learn how and have the patience to follow through with what you learn.  With the help of a good trading system, you can begin earning money consistently.

How to make profits with the help of Forex mini account?

Do you know about Forex mini account ? Well, traders who are new to the foreign exchange market use it as a brokerage account. It is very good for the newbies who are interested in the foreign exchange market and are learning the process of trading. Investors can use this type of account to take a small position in a currency , instead of trading in standard lots used by the traders with regular accounts.forex

Beginners can use these forex mini account since it limits the amount of risk involved. With these kinds of accounts, traders are allowed to trade in contract sizes of 10,000 units instead of the standard 100,000. This type of account is one-tenth the size of a standard account. Forex mini account holders enjoy the same facilities like the standard account holders. They have access to the same tools like the regular traders such as trading platforms, charts and support.

Advantages of forex mini-account:

You require a less amount of capital in this type of account. If you have just started trading and do not want to go through a lot of risk, then this is the ideal account as per your requirements.

In this type of account, you have a greater control over risk. You can trade in mini lots instead of standard lots and by doing this, you are able to customize the trade and have better control over the risk involved. For example, if a forex trader wants to trade more than 100,000 units, but less than 200,000 units, he will not be able to trade like this in a standard account. But in the mini forex account, a trader can choose any lot sizes between 11 and 19, thereby reducing the total risk involved.

Retail forex brokers give a considerable amount of leverage while using mini-lots.

This type of account is the best for new forex traders because the investors take smaller currency positions and hence it reduces the amount of risk. Once you have gained enough experience, then you can upgrade your account to the standard one.