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What is confluence and why is it so concrete to your trading the forex market? In this article, I will take you through what confluence is and why it is so important, and how you can inculcate it into your FX trading strategy to help put the odds in your favor. What is Confluence? Before going further into the way confluence can improve your forex trading, we need to understand what confluence is. According to a dictionary definition: Confluence is a situation whereby two things occur at the same time or come together . To further simplify the description, confluence is achieved when two or more “things” bind together at the same time. In FX trading, we can say that confluence occurs when two or more factors come together in the same place on a graph. Examples of these “things” can be a level of support or resistance, the price action, moving average, buying or selling signal or even something as simple as a strong trend. All these things are what we call Confluenc

Pivot Points Forex Strategy are used by Forex Investors today. They are calculated on a day before the move, and Forex investors enter the market when it hits a resistance or support line of the Pivot Point, giving that the OB/ OS indicator is in agreement. You’ll have to put the resist and support lines in place first thing in the morning. After, you’ll wait for the market to hit the expected entry Points. Against all what some Forex traders believe, Forex trading with pivot points is one of the most popular Forex Trading method currently used in trading the exchange market today. Long before the creation of computers, this method was used by investors in the pits to determine hidden resistance and support levels. Experienced FX traders and technical analysts still use the pivot point . The major advantage we now have is that we now have computers that can quickly calculate your points ahead of time. A lot of charting packages can now calculate them for you automatically, thu

Forex Trading - Understanding Forex Charts Understanding technical analysis and, in particular, being able to read price charts is essential for any Forex trader. This article serves as an introduction to the often complex world of Forex charting. For the majority of Forex traders their trading strategy will be based very largely on technical analysis. This means, amongst other things, that the Forex trader must have a sound knowledge of technical analysis and, in particular, an ability to read charts. Price charts are used to convey information about Forex prices at specific time intervals, which can range from as little as one minute up to several years. Prices can either be plotted as simple line charts or price variations can be plotted for each time interval to produce a bar or candlestick pattern. Line charts are particularly suitable for giving a broad overview of price movements. They are normally plotted to show the closing price at each chosen time interval and they

The forex market is one of the largest, if not the largest market with up to two trillion dollars traded daily. Unlike stock exchanges the interbank forex market is not a centralized market. In a centralized market like the stock exchange there is a central every transaction is recorded by price and volume. The forex market is a decentralized market with no central market where transactions are recorded. The interbank forex market relies on market makers who record their own transactions and the information is kept private. A market maker is a broker-dealer firm that facilitates the buying and selling of securities or currency. The primary market makers in forex are the world’s largest banks. The interbank market is the system of trading currencies among the world’s largest banks and while most of the transactions are done between the banks themselves some banks do handle forex transactions on behalf of large customers. It has been estimated that 50% of all interbank forex transact

The foreign exchange market, also known as Forex market, is now considered the largest financial market in the world for its massive turnover. The forex market is open 24 / 7. Forex is by miles apart from the most liquid market in the world, prices are more representative and are always changing, gradually adjusting to the new circumstances in the world. In Forex there are two types of analysis: Technical analysis and fundamental analysis Technical analysis: Most small and medium investors in financial markets use technical analysis. This technique comes from the assumption that all information about the market and a series of future fluctuations in a particular currency will reflect in the price of a particular currency. That means you’ve to pay attention to all factors as they all have an effect on the price of the Forex trading. The price reflects all actual market movements. This also includes the demand and supply of currency, political, trade agreements, etc. It i

What causes inflation? Inflation seems to be a subject few people understand. The cause of inflation is likely purposely clouded by the people you send to Washington. To understand inflation, we must first review some history. The USA started printing script, paper money, around the time of the Civil War. The script became promissory notes for an exchange of gold to foreign countries. All U.S. citizens were required to surrender their gold for dollars. All the gold in the USA became the property of the government. An exchange rate of $35 per ounce of gold was established. In international trading, the U.S. dollar became as good as gold. Even though the U.S. dollar was backed by gold, the British pound sterling was the major currency used in the international commodities market up to World War II. As a result of England’s destruction during the war and the decline in value of its currency, the U.S. dollars took hegemony in international trade. Everything went along smoothly for

It is vital to note that futures trading is not for everybody. You can invest in the futures industry in various ways, but prior to taking the plunge, you must be aware of the amount of risk you are willing to face. As a futures trader, you are required to have a basic understanding of how the market and contract works. You also need to figure out the amount of time, attention, and research you can dedicate to the investment.Once you have decided to join the market, the next question should be how? Listed below are three different approaches to factor in. Do It YourselfAs an investor, you can decide to trade your account without help or advice from a broker. This involves a lot of risk as you will be responsible in managing funds, maintaining margins, ordering trades, getting research and creating your own analysis on the market trends in relation to the commodity that you have invested. It needs time and full attention to the market. Open a managed Account Another method to be part

Day-in-day-out, a lot of people, join the forex trading platform, but it doesn’t translate to the fact that the FX trading is for everybody. Even after you learn the basics of forex that is not just enough. You need to continue the learning process with commitment and dedication to get the actual result that attracted you to the forex trading in the first place. Mistakes are inevitable in trading forex, especially for beginners. And in this educative write-up, you’ll learn some of the errors that might likely cause you to hit a hard wall in time. And by the end of your reading, you’ll have gotten familiar with some errors you should try to avoid…at all cost. Some of the common mistakes that you should try to avoid as a beginner: 1. Inadequate Study: Of course it is normal to be curious, to show enthusiasm about what people tell you about the forex trading platform. But ask yourself: “Do I really have what it takes to be successful in this trade?” “Do I have a definite, workin

Forex has been around us for a long period. Long ago, people traded currencies for food, to buy animals, and some bought mineral resources. With the creation of the modern currency (coins and paper money), different countries traded a currency for the other. Initially, currencies were widely traded by major financial organizations (Banks and wealthy organizations and individuals) over the world. The birth of the retail market in the mid-1970s enable non-commercial players in Forex trading. However, the most significant transformation in the industry came in 1996 when FX trading went online. Now, the Forex child grew and became a real giant. More than $ 4.5 trillion is invested daily in the Foreign Exchange market, where close to $ 1 trillion belongs to the activity of traders which are you and me. These numbers reinforce the reputation of Forex, and it clearly shows the possibility of people making a fortune while trading in Forex. However, with the benefits also come the dangers. I

In this day and age many feel that going to college is a necessity. While this is up for debate, the numbers do agree that those with at least a Bachelor’s Degree earn a considerable amount more on average than those who do not. The same can be said for those who go to graduate school and acquire a more advanced degree. However, unless you come from a very wealthy family, chances are you’re going to need to take out some student loans. Depending on the school you go to, these student loans can build up quite fast – even faster if you choose to go to a graduate school. Let’s take a look at two ways that are often overlooked when considering how to lessen the burden of student loan debt. Choose a Good Major First and foremost, before even getting a loan considering what you’re going to major in is a great idea. Many people tell you to simply major in something you’re interested in, but this may not be the best choice. If what you’re interested in has virtually no job market, c

As for the results of the Crimean referendum there are new problems, especially in Russia and in Europe. This problem will enter a new phase for the United States and Russia. The financial markets will have spillover effects from the results of the referendum. U.S. stock decline on Friday’s close was the most seen in seven weeks. Investors believe that antagonism between Russia and the West as well as Ukraine will spread to the financial markets. Russian investors are especially worried that once the U.S. and European economic sanctions against Russia are in action, then the loss will be self-evident. With the current referendum in Crimea, there will be a new evolution of problems for the Ukraine. And the game of tug of war will go on. Western Economic Sanction Programs: 1.Freezing of assets 2.Suspended lines of credit 3.Confiscation of property 4.Abolition trade negotiations 5.Visa restrictions on Russian elite, or the threat of expulsion from the Russian Group of Eight

Now a days it seems that racking up debt in some form or another is just a part of life. In other words, chances are you’re going to need to take out a loan at some point or another. These loans may be for college, a new car or even that house you’ve always wanted. While this debt can be stressful, it is oftentimes necessary. Due to this, it’s important that you utilize every tool at your disposal to manage your loan payments and lessen the stress commonly associated with debt. Online tools such as Mint.com have proven to be extremely valuable in this sector – let’s see why. Payment Notifications Perhaps you have a business meeting one day, your child’s soccer game the next and a get together with friends on the meeting. Add on to that all of the responsibilities you’re sure to have at work and in your home and it’s easy to see why many complain of having a hectic life. With so much going on in your life, it can be very easy to forget which day you need to make a loan paymen

At first blush, personal finance seems like an untamable beast due to so many moving parts. You have to take into consideration your bills, taxes, income, future goals, investments and much more. Luckily, a simple way to combat this overwhelming feeling is to take into consideration what point in your life you are currently at. While this can be said for virtually all facets of personal finance, it is perhaps the most important when considering a loan. Car loans, for example, are something that an individual should put quite a bit of thought into before making the leap. Let’s take a look at a few of the things you should consider before moving forward with securing a car loan. Consider Your Savings First and foremost, you need to consider your savings. Always follow the golden rule of having a savings account with at least 3 months of expenses in it. This way, if you ever suddenly lose your job, you will have a nice buffer to hold you over while you look for another one.

Depending on whom you talk to, it’s generally agreed upon that going to college is great for your future. It will not only give you the skills and degrees you need to make a sizeable income in the future, but also the social skills you need to succeed in the real world. Unfortunately, going to college is very expensive, as you’re sure to know. Depending what university you go to, you may be walking away with upwards of $100,000 worth of debt once it’s done – provided you’re following the norm and getting student loans. This gets even worse once you consider the fact that many people are opting for graduate school. That’s another $100,000 or more added on to your undergraduate debt depending on what degree you choose to pursue. In olden days, it was generally assumed that the increased income you would make from your college degree would help to pay off these loans in a timely fashion. Unfortunately, this doesn’t seem to be the case. Reports have begun flocking in of thousands up

Foreign exchange trading is generally conducted in a decentralized manner, with the exceptions of currency futures and options. Foreign exchange has experienced spectacular growth in volume ever since currencies were allowed to float freely against each other. While the daily turnover in 1977 was U.S. $5 billion, it increased to U.S. $600 billion in 1987, reached the U.S. $1 trillion mark in September 1992, and stabilized at around $1,5 trillion by the year 2000. Main factors influence on this spectacular growth in volume are indicated below. For foreign exchange, currency volatility is a prime factor in the growth of volume. In fact, volatility is a sine qua non condition for trading. The only instruments that may be profitable under conditions of low volatility are currency options. Interest Rate Volatility Economic internationalization generated a significant impact on interest rates as well. Economics became much more interrelated and that exacerbated the need to change in

One of the keys to being a successful currency trader is knowing what information you can rely on. There are many websites that give tips or charge fees for providing information (software services also). How do you protect yourself from losing money? Building a reliable source database is something that is overlooked with many traders. There are three keys you should learn in order to be a successful trader. By following a methodical intelligence technique used by military and government agencies you can increase the chances of your desired outcome. As an intelligence analyst, I’ve noticed how most literature regarding business and investment leaves out details on how to avoid bad information. Whatever businesses you’re in there will always multiple sources of information in leads from every direction. Learn how to channel this information and use it to your advantage. Three steps to building a currency intelligence network: 1. Build a database of sources.   This may seem very

If you’ve taken a look at your automobile insurance bill lately, you may have noticed the premiums going up. This is a trend across the board as virtually every auto insurance company looks to increase their bottom line. Matters can be even worse if you’ve ever been in an accident as insurance companies tend to punish such drivers quite harshly.Luckily, there is hope and finding better, more affordable car insurance is easier than ever.   Try to Negotiate a Discount Before looking to jump ship, take into consideration that you are a valued customer because, well, you’re giving your insurance company money. Due to this, chances are your insurance company will want to keep you around. This means that a simple call to your insurance company may be all it takes to get lower rates. A good tactic to use is to let your representative know that you are considering seeking insurance from another company. This will entice them to pull some strings and offer a discount. If you have been

In the monetary policy meeting the Fed announced the latest issue of the continued reduction in QE, and to abandon the policy interest rate forward-looking guidance. There was also a hint that they might raise interest rates ahead. The dollar index once again embarked on the cusp of the market. From the point of view of yesterday’s Fed monetary policy decisions, the Fed continued to shrink QE 100 billion to $ 55 billion, and will abandon the original threshold of unemployment and inflation rates. The market was once considered a hawkish approach, even after the proposed reduction in QE was completed. From the point of view of other monetary economies, Japan’s recent “Abe economics” was severely tested. Japan will increase in the near future consumption tax; while Britain maintains good momentum of domestic recovery. While the pound has a boost; eurozone recovery is slow, and the economic data is not ideal. Fear of the future remains under pressure. China benefited from the impac

Forex Signals - Are You Limiting Your Profits? For many Forex traders the ability to keep in touch with real time Forex news when they are away from their computer is vital to their trading success. As this article will show, many traders today find that Forex signals provide the answer to keeping abreast of the currency markets no matter where they are or what they are doing. One of the greatest disadvantages for the Forex trader is the time that is needed to monitor the often fast moving and volatile currency markets so that advantage can be taken of entry and exit points for trading. For many traders this means sitting in front of their computer screen and watching the markets for hours on end. One way around this problem is to make use of automation and place limits and stops on your orders. This way, you can walk away from your screen safe in the knowledge that, if nothing else, your losses at least will be kept to a minimum. The problem here though is that you also often m

The Reality of Forex Markets - Someone Needs to Say It By now I know that you the reader have scoured the search engines trying to find out how forex is the next millionaire ticket to financial freedom. It’s like clock work that everyone visits this same introduction to forex trading. What a lot do not realize is that the forex image is controlled by a majority of smart marketers. Deception of how the markets really work out are provided in the masses. True there is some truth told but most of the bad is skewed and left out. This is a very difficult thing for a beginner because this information is the foundation of what they learn. Forex markets work the same as any other market in the world. True there is different information that provides the base of the certain market but they all operate in the same manner. So what is the big secret that lies behind how the currency market works? Supply and demand. Yup, a simple economic principle is the over laying factor in price movement

If you are as confused as I was when I started trading currency on the foreign exchange (forex), than this article will do wonders for you. From facts on the forex to the best online forex trading platform, your questions will be answered. If you are as confused as I was when I started trading currency on the foreign exchange (forex), than this article will do wonders for you. From facts on the forex to the best online forex trading platform, your questions will be answered. Ok, let’s go over some of the basics. What is the forex? Well, forex, the word is simply a combination of the phrase FOReign Exchange. That’s it, you’re ready to trade. Oh, you want more? The forex market is an electronic market where the currency of different countries are traded. In actuality, you are trading the value of currency A vs. the value of currency B. Although you can combine any two currencies to form a currency pair, there are four currency pairs that are considered the major pairs. T

Forex Signals Reviewed I started in the FOREX market in June of 2002. With hardly any experience at all, I really did not know what I was getting into, other than I wanted to be a full-time trader making tons of money from home. Little did I know from the start that my lifestyle as I knew it was about to change drastically. The Problem I initially began with a demo account and did okay for a month. Throughout the course of a month I managed to compile 23 wins and 2 loses, for a net profit of $1,219. I thought to myself, this is excellent; I am ready to begin with a live account and to trade for myself. Moving from a demo account to a real my psychology was blind sided. I was afraid to trade using the same techniques and trading system I had used to become successful with my demo account. The ending wasn’t pretty. I ended up losing a lot of sleep, $4458 and the only thing I gained was un-wanted stress. Out of cash and with other investments failing, I needed to find so

There are numerous simple and easy ways to make some extra cash online. This article will give you some ideas. Surveys One of the best ways to earn some extra cash online is by taking surveys. There are many companies that need consumer opinions on a wide range of topics, and many of them will pay you money or with points you can redeem for cash or prizes. It’s easy and free to signup and the more surveys you take, the more money and prizes you will get. It just takes a small investment of your time. Writing If you have decent writing skills, there are many publishers and content distributors who need content for their websites. Two such sites are AssociatedContent.com and Helium.com, they will pay you for each article you write. You don’t have to be a fantastic writer either, just have a good grasp of English and be able to write something of interest on a given topic. Blogging Blogging is fun and easy and, again, you don’t need great writing skills. You just need to be a

Forex trading is often regarded as risky. Is this perception true or false? How does this affect our decision to trade currencies? What can we do to reduce our risk and avoid one of the majority of traders who lose money from trading. Before we make a decision on how risky forex trading is, let’s define what risk means. Risk is simply the variability of investment returns. If you graph the value of an investment portfolio over time, a low risk investment such government bond should have a smooth curve, while a riskier investment would have a more jagged curve. The fact is that most beginning forex traders lose money. Is this a characteristic of the currency markets, or is it to do with the traders themselves? To answer this question, we need to understand what factors contribute to risk. To an extent, risk depends on the market. If the market rapidly moves up and down, then that can contribute to variable returns. In this respect, forex markets are not more volatile than

Forex transactions are charged based on the spread. The spread, which is measured in ‘pips’, is the difference between the prices at which a currency is bought and sold. One pip is the smallest increment in a currency. For instance, if you are trading in Euros and United States dollars (EUR/USD), a move from 0.6004 to .6005 is one pip. If you are trading United States Dollars for Japanese Yen (USD/JPY) a move from 112.43 to 112.44 is one pip. You can compare Forex brokers based on the spread they charge. Most dealers issue live or delayed prices on their sites. However be aware, that you need to check to see if the spread is fixed or variable. When the market is calm the variable spreads are small, but when the market gets more volatile Forex brokers may increase the spread. The result of this scenario is that a trader’s transaction cost are smaller in a less volatile market conditions. Because of the large amounts of money involved in trading on the Forex markets most Forex b

The key to huge gains when trading forex with leverage is to make sure you have a specific forex money management system in place. Very few traders pay much attention to money management but it’s vital for success and it’s much more than simply placing a stop. Here are some simple tips on money management that will allow you to defend what you have and stay in the game to hit and hold the big profitable trades. Money Management on Your Overall Account You should always see the risk you take on a trade in relation to your overall account. If you have some profit its easier to lose that psychologically than your core equity. If you doing well then increase your bet size – f your not doing so well you decrease it. It’s a fact that poker players make great traders and the reason for this is they know how and when good times to vary their betting style are. You should not bet the same size all the time forex trading is all about taking calculated risks at the right time and i