Forex Trading Education For The London Open

By Michael Jones

A thorough Forex trading education must include an understanding of the effect market timings can have on trading and liquidity.

Good trading opportunities often arise at the time the London market opens as this can be one of the busiest trading times of the day.

As part of your Forex trading education, learn to analyze market conditions around London open and begin to recognize good setups.

The following questionnaire and checklist will help.

London Open Preparation

About 15 to 30 minutes before London open check the answers to these questions:

Check to see if the MACD indicators on the 4 hour and 1 hour charts are going in the same direction. If not, be very careful!

Is there MACD divergence on the 4 hour, 1 hour, or 15 minute chart? Look for other clues to confirm that price may go in the direction of MACD divergence.

Looking at the four hour chart, ask yourself, what is the overall trend?

Do a Fibonacci calculation on the last swing high and low and see if price is pulling back to an optimum retracement level or whether it is reaching a key extension level.

Note price in relation to the 200 EMA (Exponential Moving Average) on the 4 hour, 1 hour and 15 minute charts. Is price bucking the trend? In other words, is price above the 200 EMA on the 4 hour and 1 hour chart but below it on the 15 minute? Then be prepared for price to go long at some stage. (Draw the opposite conclusion if price is below the 200 EMA on the 4 hour and 1 hour chart but above it on the 15 minute chart.)

Is the market approaching a key fundamental announcement?

Looking at the candle that closes the first 15 minute period after London opens, do you see any distinctive patterns, or is the candle itself a doji or a hammer or any other shape indicating price exhaustion?

If I entered a trade right now in a particular direction, what would be the risk and where would I place my stop?

After waiting a few minutes from the time London opens, and you see a number of converging factors based on the analysis points given above, decide whether you are going to enter the market. Either:

trade

wait for clearer signals or a better entry point

Carrying out an analysis in this way each day at London open will do much to increase your Forex trading education.

You will be able to fine tune your analytical skills and be in touch with the underlying feel of the market.

There is no magic formula involved with Forex trading education. Put simply, successful Forex trading is the result of years of hard work, study, practice, and experience often gained through painful trading scenarios.

At last, the Forex trader learns the mental and emotional skills necessary to remain disciplined at all times - the hardest and most important aspect of Forex trading education.

Practising a set procedure like the one above, while laborious to start with, will help the newer trader make fast progress toward the day when consistent profits are made on a regular basis. - 23221

About the Author:

For a free candle & chart pattern recognition reference tool click here: Candlestick Charts See how to use trendlines to get an optimum trade entry point: Trendline Break

The Advantages of Trading Forex

By Joshua

Trading forex has always been popular, though many lean towards trading traditional stocks and shares. However, there are many advantages to trading forex over stocks, including its great potential for earning without some of the restrictions of the stock market.

This is made easier due to the fact that it is a lot easier to learn about the major currencies than it is to learn the ins and outs of the stock market.

This is just an extremely brief overview of the benefits of forex trading. As you can see, many of these points make it a great choice for beginners who do not have much experience in investing. If you are deciding where to trade, then take a look at the basics of forex and you could find that it is the perfect choice for you.

Forex transactions are generally very quick due to the fact that all trades are done with cash. When you get started with forex trading you will quickly begin to learn about making successful predictions.

Forex trading is also extremely easy for beginners to get started out in. This is due to the fact that there are generally lower fees in forex trading than when trading stocks, and the system allows you to train on margin. This means you can buy large amounts of currency with only a small deposit " though this obviously carries risk as well as benefits.

This is just an extremely brief overview of the benefits of forex trading. As you can see, many of these points make it a great choice for beginners who do not have much experience in investing. If you are deciding where to trade, then take a look at the basics of forex and you could find that it is the perfect choice for you. - 23221

About the Author:

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Why Is Physical Gold Bullion Necessary For A Diverse Investment Portfolio

By Chris Clarke

We simply do not know what is going to happen with this economy, and if the US bailouts will find success or failure yet. The General Motors bailout might be a rousing success. However, the opposite could be true of the auto industry and or the banking system. Simply put, there is no way to tell.

While the future may be uncertain, there is one thing that is secure. That thing is a commodity, a super commodity called Gold. No matter what happens in the economy, right now is the time to start investing in gold.

While it might sound a little crazy to predict these worst case scenarios, take this advice seriously. It's no secret that Gold as a commodity is the most secure and respected way to protect your assets safely. Quite often you hear that you should have a diverse investment portfolio, don't put all your eggs into one basket. That is good advice, especially when that portfolio contains a few golden nest eggs in the form of physical Bullion and Coins.

All over the wold, those who are in the know are literally tripping over themselves to secure as much gold as possible. Let us share two reasons this is the case:

1) It's hard to rely on paper money when so often in the past it has lost all of its value, while never in thousands of years has the gold market crashed.

2) The world financial institutes demand their debts with each other be payed in nothing less than physical gold bullion, what do they know that we don't?

Essentially, when times get tough, the tough buy gold. This economic stimulus package and the billions of dollars in it don't appear out of thin air. Realistically there are going to be consequences for these actions. A huge stress relief is when your investment is in a commodity that is as secure as possible. A huge hint that gold is secure is the simple fact that major banks hold their assets in physical gold.

Now don't forget the importance of owning actual glittering gold. Fake gold comes in many forms like ETF's and gold stocks. While these have their place in the short term investment world, you want something that will stand the test of time. Plan for 20 years in the future when you invest in gold and you will get the correct perspective.

Recently many respected voices in the investing community have been speaking out and making bold predictions about the price of gold. Predictions that, if they are even half true, cannot be ignored. Gold is predicted to sell at over $1,000 an ounce by the end of 2009, and it could peak in the future back to what it was in 1980 of over $2,500 an ounce. - 23221

About the Author:

A solid investment you could look into is buyingCanadian gold coinsand Chinese Panda Gold Coins.

Forex Trading Currency Quick Review

By Calvin Wapasa

Dealing in forex markets is fundamentally working with foreign stocks, money and their goods. One country's currency is weighed against the currency in another foreign market to decide the universal worth.

The worth of that foreign currency is calculated on every trade made in the forex stock marketplaces. Many outside markets will be in control over the value of that countries monetary value, with respects to monies. Individuals who are often involved in the market exchange for FX involves banks, businesses authorities and other finance houses.

What kinds of variables make forex stock markets so different from the US stock market? A forex market transaction is a trade between two countries, and it can take place worldwide. The two countries are 1, that of the investor, and 2, the country the money is being invested in. Most all of the transactions that take place in the forex markets will be qualified through an experienced broker such as a bank.

What are the ingredients of trading in the forex market? The overseas market is comprised of a mixture of financial exchanges amongst nations. For those invested in the forex exchange generally trade in massive bulk with vast amounts of currency. For those deep into the forex stock market are likely to have companies who are cash businesses or are in businesses where assets are bought and sold quickly. While the US stock exchange is immense you would be right to consider the forex market as much larger than an individual market exchange in any one country. Those involved in the forex market are trading every single hour of every single day and most of the time on week-ends.

You might be surprised at the massive amounts of folks who trade on the forex market. In the year 2004, almost two trillion dollars was the average daily trading volume. This is a huge number in terms of the daily amount of financial transactions that took place. You can imagine how much one trillion dollars might be and then times that by two, and this is the number of financial transactions every day on forex!

It is true that the forex exchange has been active for over thirty years, but now that computers are in the game and the world wide web, the forex market multiplies as more everyday people and businesses become aware of the availability of this trading market. Forex trading only makes up around ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number. - 23221

About the Author:

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Trade Away to Prepare for the Rainy Day

By Rick Amorey

It is so difficult to think of the future, especially when you are bothered by the spending of the past. Why think of putting more money into your savings when you are still beset by your student loan? How can you think of your retirement years if you have to worry about current mortgages?

The recession is in full swing this year, and this looming financial problem will make you think twice before investing for your future. What if the total amount you have from ten years of storing extra income devalues by more than 50% before month's end? Sadly, this is a very likely scenario these days.

Faced with these financial uncertainties, many choose to live for the moment rather than think ahead and invest. It's simpler to think of this month's bills, or even this period's financial recession, instead of worrying about what may happen in the coming years or even decades. I don't blame them for thinking this way, but I also think that this is a serious misjudgment.

You see, one of the fundamental truths of the human condition is the fact that everyone gets old sometime. And when your body has aged and has become weaker than it used to be, you just can't work as efficiently as you did before. By then, the best course of action would be to rely on your investments.

Obviously, you can't do that if all your money is stored in simple savings accounts with negligible interest rates. So think of investing as saving up for that rainy day; it may seem like it's so far away, but that doesn't mean that it does not matter at present. Save up, invest, and make wise decisions. Who knows? If you do it well, then you may have the capacity to retire earlier than expected. - 23221

About the Author:

Rick Amorey believes that shortcuts to success are a joke, and instead suggests the comprehensive program of Emini Trading. Be an educated trader with the help of Emini Trading System, and watch your money grow like a carefully monitored seedling.