Business | Finance

The spot forex is a support and resistance market. Whatever forex tools and forex indicators you are using to trade the spot forex market, the experience can be greatly enhanced by understanding near term forex support and resistance along with longer term forex support and resistance numbers for the currency pairs of interest. Every spot forex trader and the major forex trading institutions are watching critical areas of support and resistance on the various currency pairs. If any major currency pair breaks through a critical support or resistance number it makes news everywhere on the forex news and on national and global news shows. Support... 

The Euro Bull: The New paradigm of FOREX As the EUR/USD breaks 1.50, investors should take another look at foreign exchange. 100/barrel oil, $1,000 gold, and $10/bushel wheat are not anomalies, nor is there a bull market in commodities. The US dollar is losing its value and its relevance as a world reserve currency. What determines the value of a dollar? The common belief is that purchasing power determines the value of money, which is partially correct, but that is not the entire story. In a world of floating currencies, money is also valued in terms of other money. Simply opening a bank account in Europe, and gaining a few % per annum interest,... 

In this piece I’ll cover 2 significant benefits the foreign exchange market offers to traders. Daytrading with a tiny account if you’d like to daytrade with stocks and you have less than $25.000 on the account, you are probably going to have a tough life. The explanation is a rule called “pattern day traders” enables you to daytrade readily only if you have that amount or more on your account. If you have less, your daytrades ( positions entered and left the same day ) are restricted to 3 in any 5 trading days period. Your broker should observe your activity and ensure you don’t execute trades that are not permitted... 

It has become imperative for every forex trader to learn how to predict the price trend and which method or software is the best. When you do forex trading, it is very important to understand the difference between fundamental analysis and technical analysis. A quick explanation of the difference among the two types of analysis is: fundamental analysis focuses on money policy, government policy and economic indicators such as GDP, exports, imports etc within a business cycle framework while technical analysis focuses on price action and market behavior, especially on chart and technical indicators. Needless to say both schools are equally disparaging... 

Very few spot forex traders conduct any form of parallel and inverse analysis of the major currency pairs an exotic currency pairs to determine the best way to trade the forex market on a day-to-day basis. Forex traders do this in spite of the fact that it would be nearly impossible to trade the forex successfully not knowing where the overall strength and weakness was in the spot forex across multiple pairs or the entire forex market. Lets look at some examples. Many forex traders like to trade the GBP/USD and they spend countless hours losing sleep waiting to trade this currency pair even when no trends or parallel/inverse currency pair confirmation...