Here we will point out the two main disciplines used for Forex analysis purposes. The first one is the so-called Fundamental Analysis, which is meant to describe and analyze the overall conditions and state of country’s economy and provides the big picture of the national economy. Some experts use this as a base to find indicators that will determine the price movements and according to them can also help predicting those movements.

The Forex Technical analysis uses indications based on historical data and trend patterns. The main idea is to compare and analyze charted patterns, which will give indications about the price movements and the direction of these movements.

The answer to the question “which one is the better one?” cannot be synonymous. This means that they both should be used simultaneously and the traders who ignore one of these methods to the expense of the other are risking to incur a major failure. The reason for this is that using only one of these analyses will provide you with partial information and gives only one of the aspects of the whole picture.

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Having a winning forex strategy and an awesome forex broker or service are the keys to success. The following systems have worked for a number of people. There are some trading robots that have proven to be more accurate forex trading software than others. The following services come with comprehensive tutorials and training so they are good for expert traders as well as those opening a forex account for the first time. If you are a newbie and would like to trade like a pro as quickly as possible the following forex services are highly recommended.

Fap Turbo The best known to date Forex automated software (robot) is the FAP Turbo. The abbreviation FAP stands for Forex AutoPilot. READ MORE AND REVIEWS ON FAP TURBO HERE.

Forex Auto Money Forex Automoney is an intelligent software which automatically analyzes currency markets and determines when to buy or sell taking all trading doubts away. You can start trading with as little as $1 and register with Forex Automoney for just $4.95. READ MORE AND REVIEWS ON FOREX AUTOMONEY HERE.

Forex MegaDroid Robot Forex Megadroid Robot with This is the first forex robot with RCTPA trading technology implemented in it. A fully automated software Forex Megadroid has reportedly quadrupled accounts every year (average 564% over past 8 years). READ MORE AND REVIEWS ON FOREX MEGADROID HERE.

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In the example bellow we will demonstrate what may realistically happen when one of the analytical methods is ignored:

Let’s imagine that you are using the Forex Technical Analysis only and are ignoring the economy reports and the news. You are relying completely and only on your own patterns and charts. What happens next is that according to couple of indicators you foresee a big movement and an opportunity to gain huge profits. You are expecting a huge jump from the dollar and decide to act straight away and buy a lot of this currency. Your prediction and the charts show that soon you will make a big profit out of this operation.

Then out of nowhere and absolutely unexpectedly the currency – the dollar in this case – falls by 50 pips instead. And you are questioning yourself how is that possible providing all the indications from the analysis showed that the rise was inevitable?

While disappointed and angry at your technical analysis, you leave your PC and turn on the TV set and accidentally bump onto the financial news where the latest news show an unpredicted and unprecedented jump in the unemployment, way beyond the forecasts of the government’s economy experts. And this is not all – a big international corporation announces also unpredicted huge fall in the revenues with the similar perspective for the next couple of quarters.

These two events prove to be powerful enough to shake the financial market to its roots and to turn it upside down, so the predicted sharp rise of the dollar does not happen at all. All this means that if you have had this information in advance and have stayed open to the fundamental analysis, you could have prevented all of this from happening and all of the  incurred losses.

The opposite would have had exactly the same effect – if you were relying solely on the FA. By using the fundamental analysis only you will get the overall picture and directions in general, but the details like when, where and how much to buy/sell will be out of your reach.

All this prove the rule that the simultaneous approach is the right one. By using both analyses combined, your perspectives of success are much greater.

To generalize at the end – discovering the trends and common patterns of the market plus keeping yourself well informed about the political and economical events that will reflect on the market will aid to predict the future price movements, which will help for the success with the Forex currency trading.

Forex currency trading, just like all the financial and even scientific subjects has a specific terminology and if someone is willing to learn forex he or she needs to be familiar with it. Knowing the terms will help you learning the trading properly, and applying it successfully in practice. By doing so, you will eventually stumble across the term “Forex PIP”. The abbreviation stands for Percentage In Point, or Price Interest Point. The profits and losses in forex trading are measured in pips, so it is very important to know what the forex pip really is.

Forex PIP is the smallest price unit of a currency, or otherwise said – the smallest value of a Forex quote. The PIP helps to define the rise all fall of a forex value and it is used as an alternative way of measurement in dollars and cents for example. In pips are also measured the forex spreads. Spread is the difference between the sell and the buy quotes. To try to clarify it a bit further, let us have a look at the next example: when EUR/USD quote reads 1.3200/3, which means that the spread is 3 pips, which in other words is the difference between the values of 1.3200 and 1.3203.

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Having a winning forex strategy and an awesome forex broker or service are the keys to success. The following systems have worked for a number of people. There are some trading robots that have proven to be more accurate forex trading software than others. The following services come with comprehensive tutorials and training so they are good for expert traders as well as those opening a forex account for the first time. If you are a newbie and would like to trade like a pro as quickly as possible the following forex services are highly recommended.

Fap Turbo The best known to date Forex automated software (robot) is the FAP Turbo. The abbreviation FAP stands for Forex AutoPilot. READ MORE AND REVIEWS ON FAP TURBO HERE.

Forex Auto Money Forex Automoney is an intelligent software which automatically analyzes currency markets and determines when to buy or sell taking all trading doubts away. You can start trading with as little as $1 and register with Forex Automoney for just $4.95. READ MORE AND REVIEWS ON FOREX AUTOMONEY HERE.

Forex MegaDroid Robot Forex Megadroid Robot with This is the first forex robot with RCTPA trading technology implemented in it. A fully automated software Forex Megadroid has reportedly quadrupled accounts every year (average 564% over past 8 years). READ MORE AND REVIEWS ON FOREX MEGADROID HERE.

——EDITOR’S NOTE—————————–

Why measure in pips? Simply because a universal currency does not exist. Even though the dollar is the most frequently used currency in the trading, it is not involved in all of the trades. This is why even the dollar cannot be used as such a universal currency, and the pip is introduced for unification of the forex trading values. And this is why traders are using the forex pip, which is a percentage of the rate of the currencies involved in the forex currency trade.

All of the major currencies in the forex trade market are quoted to the fourth decimal, with the only exception being the Japanese yen. Let us have a look at some examples. The bid price for the pair EUR/USD is quoted at 1.2345 and the ask price is at 1.2348, giving you the spread of 0.0003, or in other words – 3pips. Talking about percentage, 1 pip is 0.01% of the whole lot. This means that if the amount is $10,000, then 1pip will be worth $1. This is valid only in case USD is the quote currency. If the quote currency is different, 1pip is 10 units of the currency when the lot size is 100,000 units.

The Japanese yen is an exception of the rule, because of its low unit value. This is why the yen is quoted to the second decimal point. If USD/JPY forex rate is 110.18, one pip is 0.01 or 1% in yen. The pip value will be 1000JPY, which will be worth $11.015. This is a bit difficult to comprehend, especially for beginners, but a thing to remember is: for EUR/USD 1pip = 0.0001, for USD/JPY 1pip = 0.01.

It is always advisable that at the beginning you trade in one only forex pair, preferably in EUR/USD. When doing so, after a while you will get a clear idea of how much is a pip in terms of actual gains and losses. After a period, you will know how much one pip is worth in dollars just by taking a quick look at the forex account.

If you are trading in a number of different currency pairs, which means that you are dealing with pips of different value. This may not only confuse you, but is most likely that you will end up losing money. Therefore its highly recommended that you to stick to the EURO/USD currency pair until you build up better understanding of forex pip values and trends even if you are using a forex software.

What are the main factors that should be taken into account when performing Forex Day Trading? It is well known fact that foreign exchange news is the most frequently used method of earning money with Forex Day trading. This is where traders open short-term trades in accordance to the Forex trading news. This is a quite risky system and traders can easily find themselves into a losing position. Here we will try to bring light to three of the most important things that should be kept in mind while trying to make profit by Forex Day trading based upon the currency trading news.

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Having a winning forex strategy and an awesome forex broker or service are the keys to success. The following systems have worked for a number of people. There are some trading robots that have proven to be more accurate forex trading software than others. The following services come with comprehensive tutorials and training so they are good for expert traders as well as those opening a forex account for the first time. If you are a newbie and would like to trade like a pro as quickly as possible the following forex services are highly recommended.

Fap Turbo The best known to date Forex automated software (robot) is the FAP Turbo. The abbreviation FAP stands for Forex AutoPilot. READ MORE AND REVIEWS ON FAP TURBO HERE.

Forex Auto Money Forex Automoney is an intelligent software which automatically analyzes currency markets and determines when to buy or sell taking all trading doubts away. You can start trading with as little as $1 and register with Forex Automoney for just $4.95. READ MORE AND REVIEWS ON FOREX AUTOMONEY HERE.

Forex MegaDroid Robot Forex Megadroid Robot with This is the first forex robot with RCTPA trading technology implemented in it. A fully automated software Forex Megadroid has reportedly quadrupled accounts every year (average 564% over past 8 years). READ MORE AND REVIEWS ON FOREX MEGADROID HERE.

——EDITOR’S NOTE—————————–

Not considering the market expectations is something that can bring a lot of trouble to forex day traders when using the news based day trading. For example if an announcement about the dollar is expected to be made by a government financial institution, and the trader predicts this announcement to be positive, then the trader opens a trade just before this event to take place, expecting a rise of the dollar’s value on the market. What is not taken into account in this case is the fact that the whole forex market was also aware of the report and predicting that it will probably help strengthening the dollar. This means that in fact, the price movement was already on the way days and even weeks before the event and at the moment when the actual announcement has been made a considerable price jump can only happen if the news in the report are much more positive and encouraging than previously expected.

All this means that the trade will only pay off in case of the above-mentioned conditions are fulfilled. If the report is still good, but not so overwhelmingly positive as anticipated, then what may happen is all this to cause a plunge of the dollar and in reality the trader to lose out in the process. This will be as a result of the unrealistically higher expectations of the market long before the report has been populated.

In situations like the above-mentioned, where an very important financial announcement is to be made, there is a huge possibility the actual spread to rise. What really happens is that in cases like that one the trading volume goes down, which reflects in lower profits for the brokers. This is why when such an event is about to take place it should be taken very seriously into account, otherwise traders that normally would have brought profits will end up losing out. Many forex brokers are even refusing to carry out trades when such events are taking place. During such a period it will be a difficult task to find a broker to execute any trades at all, and most likely those who will agree to do so, will not be willing to keep the spreads at their standard levels.

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A comprehensive Forex day trading training is highly advised so that you can develop your own best strategy for day trading. Automated forex day trading systems are excellent way of executing the trades.

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Another factor affecting the Forex Day trading is the so-called slippage. This is the difference between the price a trader had chosen and clicked on, and the actual price your order is filled at. The slippage is depending on the broker as well as on the fact that the prices are varying quite quickly and frequently.

As an example – when the trader is not quite sure  how the announcement would perform during a day trading, he/she may place an order for a long trade if the price rises to a certain level, let’s say 1.3010, together with directions for a short trade in case if the price drops.

Despite all that, the trader could be still in trouble if the price jumps over the “trigger”. Let’s imagine it goes up to 1.3040. When this happens, the trader will notice that the price of the order is higher than expected – 1.3025. If the price falls, it may well settle down at 1.3020. Meaning that if the order was placed at the initial 1.3010 – it will be OK, but at 1.3030, it will not be good at all. So all this come to tell us that slippage is an important factor in the day trading, may cause some damage, and must not be underestimated.