Forex Signals: Learning the Basics

By Bart Icles

One of the biggest buzzwords in the foreign exchange market is forex signals. If you are new to this trading market and not sure what a forex signals is, then you better start learning about it now. Having knowledge of the different forex signals can determine much about your success or failure in this trading arena. Do not allow yourself to become one of the forex investors who have been trading for a certain period of time but still do not have an idea of what they are actually doing because they have simply failed at learning the basics. And forex signals are part of these basics.

If you think you have already learned the forex basics, then you should be familiar with what forex signals are. If you are still not, forex signals are simply indicators of historical trends in the market. They are mainly based on a technical analysis of the different conditions of this volatile market. These trading signals do not only indicate the major trends in the market, they also help in determining various market entry and exit points.

Following newscasts, newspaper articles, and finance journals can give you much idea about the different forex trading signals. If you do not plan to spend hours and hours in front of the computer each day to keep you from missing on an economic indicator, you might as well subscribe to forex signal services. These are companies that monitor different indicators that are used in currency trading. The forex trading signals are then collected and included in a report that they send to their subscribers through email, fax or instant messages. There are also companies who do not only monitor signals for you, they can also act on these indicators and execute the actual trade for you.

Traders also make use of currency charts. Using a combination of technical analyses, these helpful bars, lines, and pips can give you various trading signals. They can tell you more about SMAs or simple moving averages that show the buy signals at times when prices of currencies reach their peaks above the actual average line. When you notice that prices are going under the average line, this signals the time for you to sell currencies.

There are many other kinds of forex signals. There are MACDs or moving average convergence divergence, DMIs or directional movement indicators, SARs or what most investors refer to as the parabolic system, and many others. The important thing is, you should learn to understand what these indicators really mean and how they affect market trading. - 23196

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A forex trading is a powerful tool in your forex education. s can be great resources for learning about forex trading. Come visit our today.

Foreign Currency Trading, Forex

By Jo Nash

FOREX trading is all about trading foreign currency, stocks, and similar type of products. The currency of one country is weighed against the currency of another country to determine value. The value of that foreign currency is taken into consideration when trading stocks on the FOREX markets. Most countries have control over the value of that countries value, involving the currency, or money. Those who are often involved in the FOREX markets include banks, large businesses, governments, and financial institutions.

What makes the FOREX market different from the stock market? A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.

What really makes up the FOREX markets? The foreign exchange market is made up of a variety of transactions and counties. Those involved in the FOREX market are trading in large volumes, large amounts of money. Those who are involved in the FOREX market are generally involved in cash businesses, or in the trade of very liquid assets that you can sell and buy fast. The market is large, very large. You could consider the FOREX market to be much larger than the stock market in any one country overall. Those involved in the FOREX market are trading daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends.

You might be surprised at the number of people that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!

The FOREX trading market is not something new, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number. - 23196

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Learn how you can guarantee your profits from forex trading with Forex Trading Software or by using Accurate Forex Signals

Specialize In Trading US Dollar (Part II)

By Ahmad Hassam

Suppose you have the data and calculated the currency correlations of the major pairs. The correlation between GBP/USD and EUR/USD is 0.68. This correlation coefficient means both the pairs move in the same direction 68% of the time.

USD/CHF and EUR/USD have a correlation coefficient of -0.975. This is pretty close to (-1). It means both these pairs move in the opposite direction almost all the time. To be precise 97.5% of the time if USD/CHF moves up, the pair EUR/USD will move down!

You have this information about the recent correlation coefficients. It tells you how much these pairs move in the same direction or opposite direction. Suppose you trade both the currency pairs USD/CHF and EUR/USD by going long. What you will be doing by going long on both the positively correlated pairs is in fact canceling both the long positions.

If you make pips on USD/CHF pair, you will lose pips on EUR/USD pair and the two trades would effectively cancel each other. A savvy currency trader would go long on USD/CHF currency pair. At the same time he/she will go short on EUR/USD currency pair. So he/she will be shorting USD in both the trades. It is a way of diversifying the USD bearish investment.

Currency correlations can help you in making entry and exit decisions for each trade. Lets suppose GBP/USD starts showing volatility. The pair approaches a resistance level. You plan on going long if there is a breakout.

However, you notice on the charts that the other three major currency pairs are not showing volatility and moving as much as the GBP/USD. EUR/USD is not showing volatility and moving up on the chart. USD/CHF is not showing much volatility and moving down on the chart. USD/JPY is also not showing much volatility and not moving down on the chart. This means that the volatility in GBP/USD is solely GBP driven. The move is maybe related to some news in the British economy about Bank of England raising or lowering interest rates or some big companies merging.

Now you know that the move in GBP/USD pair is Pound driven and not US Dollar driven. You can take advantage of this information by ignoring the GBP driven move and waiting for a later opportunity that involves simultaneous correlated moves of all the major pairs.

Lets take another example. Suppose you have taken a short position on EUR/USD pair. You want to be sure whether the pair will proceed down towards your profit target. You also want to know can it go against you and cause you to exit the trade with a small loss.

Your EUR/USD has broken the S1 support pivot level and heading towards M1. By looking at the pair EUR/GBP, you find that it has paused at its S1 support pivot level and is showing signs of reversing to the upside.

In this type of a situation, knowledge of currency correlations can tell you if EUR/GBP breaks through the S1 level, you are poised for a profitable trade. However, if it reverses and heads back to the upside, you should watch the indicators and exit before taking a big loss. As you mature in forex trading, you might consider trading a basket of all the major currencies. - 23196

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know These Forex Broker Games. Learn Forex Trading!

A Short Forex Training on Risk Management

By Bart Icles

Any form of trading poses different kinds of risks. In the foreign exchange market, this stands quite true. There have already been lots of investors who have lost large sums of money in the hopes of generating profits in the forex market. Online brokers always try to sound optimistic but a smart trader understands that realistically, there is no easy way to make money in the currency market. A forex training on risk management can help you a lot in ensuring that you will not lose all your assets in just one trading go.

It helps to invest in your forex education before you start trading in the currency market and to continue doing so while you are already actively trading. A simple forex training or tutorial can already do so much in keeping you well informed on the different factors that can affect your trading position. A deficiency in market knowledge often marks the downfall of many investors and is one of the primary reasons why they lose large sums of their money. This also spells failure for new forex traders who do not take time to learn more about the different market forces that drive the currency rates.

Another important factor in managing risks in trading is having a forex broker. While you might learn from many forex tutorials that it is relatively easy to enter the forex market - all you need is a computer and an internet connection - it actually takes more than these two elements for you to start trading.

The tricky part comes in when you start looking for a forex dealer or forex broker to whom you will open an account with. It is important that you choose your forex broker well because forex brokers spell much of your trading success. This is also important in keeping you from taking unnecessary risks. To be safe, you must do some research about your forex broker and only deal with one who is regulated.

So what do these forex brokers or dealers really do? More than just helping you manage your account, they also do much in maintaining your risk profile. When participating in the forex trading market, investors must have risk profiles that are solid as rock. See to it that your forex broker has pre arranged agreements with you about your risk profile or the amount of invested capital you are willing to risk. - 23196

About the Author:

Forex and tricks are powerful when coupled with a desire to learn and a drive to become a great trader. Learning for forex takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Finding and Screening Tenants for Your Rental Property

By Dave Peniuk

Picture this: that property you bought isn't renting like you thought it would. You don't really know anything about renting property, so you decided to rent it out to the first person who showed you some money. You didn't check with their other landlords, or even follow through with a credit check. After all, most people are honest and what could possibly go wrong?

What could go wrong? This lovely new tenant could be unstable and pull a knife on her roommate. Yes - it happened to us at 3am on a Wednesday night several years ago. We had to call the police and have them separate the two tenants. The innocent roommate moved out the next morning and we were left with the knife wielding tenant who then stopped paying rent and refused to move out. It took us three months to evict her. We had to send a collection agency after her for the rent money. We never received a dime.

Now, of course, we are very picky when it comes to finding a good renter. We follow these 5 straightforward steps and they've never let us down:

- Step 1: Prepare the unit for showing

- Step 2: Get your paperwork in order

- Step 3: Research the market rents and place your ad

- Step 4: Show your space

- Step 5: Choose your new tenant.

Step 1: Make sure the unit looks and smells it's best

It's no secret- appearance is the number one thing people look for when choosing a place to live. They want a place where they can be happy, and a nice looking place usually means that.

Easy fixes for your property include:

- make all walls look great by repairing holes and applying a fresh coat of paint

- make sure all the little things like lights, appliances, doorknobs and sockets work the way they're supposed to

- create a checklist to use when the tenant moves in and out. Include details for everything in every room and the current condition- doors, windows, drapes/blinds/shutters, plugs and light switches, shelving, appliances etc.

- make sure the unit smells fresh. Open up the doors and windows to let fresh clean air in.

Step 2: Get your paperwork in order

To attract a good tenant, you will need to be a professional landlord and have the right paperwork on hand. Contact the local residential housing branch of your government or go online and do a search for landlord forms to find the following:

- application forms for tenants

- forms for rental/lease agreement

- forms you might need later, like eviction notices or others. It's always best to be prepared, as some of these forms need to be ordered and delivered by mail.

Quick tip: Every state or province may have different forms, so make sure you have the form that is legal for your area.

Step 3: Place your ad, but do your research first

Make sure the Price is Right!

When renting a property it's best to price it just below the market. You'll have more tenants choose from, and it will rent faster. And the best thing is, a tenant might decide to stay there longer. Online is a great place to research comparable units to make sure yours is always priced below the market.

What's the best way to advertise? We've found that these methods are effective:

- word of mouth - we e-mail all of our friends and let them know we've got space for rent

- use online advertising

- in a readily seen spot on the property (on the lawn or in a window) put up a sign with a phone number

- take out an ad in your local newspapers- these are still effective and not very expensive

- colleges or universities in the area; students are always looking for a place to live.

Step 4: Showing your space

Open houses are still the best way to show off your property. The best thing to do is decide on a two hour block during an evening or weekend, and then have a back up time for a second viewing (if you don't find a good tenant after the first viewing). When someone wants to see it, you can tell them about the viewing times. This way you're not spending all your time showing the unit.

Be dressed in business casual attire with tenant application forms on hand when you greet the prospective tenants.

Encourage people to fill out application forms during the open house, as this will help to make your property seem very in demand. It will also help you to keep the applicants straight in your mind, as you can record your impressions of the people directly on their application form.

Step 5: Choose your new tenant

- study applications carefully, looking for conflicting information or any kind of gaps in time pertaining to where the applicant was living

- always run a credit check. In this day and age it's not enough for people just to have a good job or for you to have a good feeling about them. Verify it.

- always check references. You've asked for them on the application, and you should check them. Remember to ask the critical questions: "Would you rent to them again?", "How long have you known the applicant?" and "What is your relationship with them?".

- listen to your gut. Do you have a good feeling about them? Despite everything else looking great for a tenant, you can usually trust your gut to indicate if you feel that something is wrong. If nothing feels wrong then you might have found your new tenant.

Now that you've chosen your new tenant and they have paid you, make all the other possible tenants aware that the unit is no longer for rent. If they ask you why they weren't selected, it's best to just say "the other tenant had a very strong application". Never say that they were not selected based on factors such as age, race, religion or whether or not they have pets or children. This will help avoid bad feelings (and possibly even a lawsuit). - 23196

About the Author:

Learn How to Retire with Real Estate with Dave's free Real Estate Investing Starter Tips Guide. Learn how to find money for real estate purchases, create financial freedom, positive income and massive wealth with tips like: How to find quality investment properties, find good tenants and keep them, and easy ways to make more money with real estate.