How do i analyse and use economic indicator signals in my forex trade decision making.Please give useful ref?
currencies of interest include the Euro, USD, AUD and JPY
As a 10+ year Forex trader, here is how I trade to make money…
If you want, you can also follow these steps. I’ve dumbed it down to the easiest, yet safest way to win in the Forex.
1) Open a live account at http://bit.ly/iPV25O
2) Select AAAFx broker, and open MICRO account with 200:1 leverage.
3) Deposit at least $300 in your account to start.
4) "Add to Portfolio" the top 20 strategies at http://bit.ly/mJiyZV
5) Don’t add any strategy that makes less than 10 average pips per trade.
6) …when adding strategies, set maximum number of trades to 5, and…
7) …select lot size of 0.1 "mini" lots for each $1000 in your account.
It will trade automatically, following all those top 20 strategies.
9) Then sit back, relax and take a vacation as you make easy Forex money.
July 24th, 2011 at 2:51 am
If you mean news trading then you need to be on your pc when newses are published.
If you mean to use economic indicators like unemployment, gdp, interest rates then they http://forumfortrader.com/forumdisplay.php?f=50 provide pretty useful information. They even won awards as far as i know.
References :
http://forumfortrader.com/forumdisplay.php?f=67
July 24th, 2011 at 3:32 am
You can save yourself a lot of hassle by using somone elses signals. Trying to news trade can be incredibly time consuming and more than likely you will not make money that way. Go with trusted and proven signal providers. I used to news trade myself but, learnt about correlations, economics etc and the best thing I ever done was to go with signal providers. I dont have to bother with studying any more and make good returns.
References :
http://www.forextradingsignalservice.com
July 24th, 2011 at 4:11 am
Im using hotforex as a platform and follow gainscope….
It stated that
The currency research team will not be responsible for any losses occured on investments made by readers and clients as a result of any information contained in this page. OUR ANALYSIS IS JUST FOR GENERAL MARKET VIEW. THE PRICE RATES WOULD NOT EXACT AS ITS MENTIONED, IT IS JUST THE ESTIMATION PRICE. (Our Accuracy is about 70% to 80% . No One can predict the market 100% correct)
i gain some bucks following their tips..!!
thanks
References :
http://tinyurl.com/6kd6sp7
http://tinyurl.com/3t36oyo
July 24th, 2011 at 4:54 am
Economic indicators can be divided into 3 depending on their market impact: high impact, medium impact and low impact news. Using the Euro, a news item like the GDP in the Eurozone is a low impact news item, while the ECB statement by outgoing chairman Jean-Claude Trichet can be describes as a high-impact news item.
Once this is established in the trader’s mind, the next thing is to look at how a typical news trade occurs.
In the first phase, there is an initial spike immediately after news release, depending on how far off the numbers are from the pre-release consensus. This spike is mostly caused by the large trade volumes from institutional traders (who get the news before retail traders from premium news services like Bloomberg).
There is then a period where the price seems to stall, and then there is a retracement as the institutional traders who were able to get in early start to take profits. This initial phase lasts about 5 to 10 minutes.
After retracement to levels that can be determined using the Fibonacci retracement tool, the price action will resume the move in the direction of the numbers over a period of hours to days, as the market slowly absorbs the impact of the news item.
Many retail traders are caught out because they try to catch the initial spike. You do not have access to premium news that the big dogs get about 5 minutes before it reaches the retail trading platforms, so trying to get in will only result in getting the "requote" message from your broker. You will most likely be filled in when there is a retracement, and then your trade will be a losing one because by now, the market is heading against your entry.
The best bet is to wait for the initial spike and retracement to occur, then you can decide on entering after you must have absorbed the news and decided on a trade. Such an entry will then have to have a technical basis to support it.
To trade the news, understand these points above and also study the behaviour of the news item you want to trade.
If you are trading a news item like the ECB statement, you have to understand the primary focus of the ECB is to control inflation in the Eurozone using interest rates as a primary measure, so traders look for hints in Trichet’s speech that will suggest that the ECB will hike, lower or stagnate rates. Once he uses terms like "i have no bias towards rates", this is a sign that there will be rate cuts. If he starts to talk of "upside risks" or says things like "inflationary risk is a big concern", then the ECB is considering hiking rates and you will see traders buying the Euro and sending it soaring.
Hope this explanation has helped. Happy pipping!
References :
<a href="http://www.exotrader.com">www.exotrader.com</a>
July 24th, 2011 at 5:22 am
As a 10+ year Forex trader, here is how I trade to make money…
If you want, you can also follow these steps. I’ve dumbed it down to the easiest, yet safest way to win in the Forex.
1) Open a live account at http://bit.ly/iPV25O
It will trade automatically, following all those top 20 strategies.
2) Select AAAFx broker, and open MICRO account with 200:1 leverage.
3) Deposit at least $300 in your account to start.
4) "Add to Portfolio" the top 20 strategies at http://bit.ly/mJiyZV
5) Don’t add any strategy that makes less than 10 average pips per trade.
6) …when adding strategies, set maximum number of trades to 5, and…
7) …select lot size of 0.1 "mini" lots for each $1000 in your account.
9) Then sit back, relax and take a vacation as you make easy Forex money.
References :