Currency Trading System

Foreign exchange (FX) professionals are still in demand in Asia. The sector is comparatively profitable and liquid, layoffs are limited, and small-scale hiring is still happening.

“I haven’t seen many redundancies at all in this area. It seems to be a safe haven compared to DCM and ECM,” says Pernille Storm, director of banking and financial services at recruiters Hudson.

There is still recruitment going on in operations and in the middle office to support front-office growth and to control risk. “While in the back office the need for specific product knowledge is not essential, it is needed for middle office roles where trades are booked and queried. A strong product understanding is key to executing the job without error,” adds Storm.

Banks generally want people with experience in complex products - not just vanilla FX - because their clients are seeking structures that can enable them to hedge exposures, limit risk and at the same time benefit from FX volatility.

London and New York are more advanced in terms of products, so professionals from those markets are still sought after by banks in Asia.

If you do not have a forex trading account and want to try out forex trading, you can open a forex trading account with only minimum capital of US$100, click here to open.

Once you master the art of forex trading, you do not have to worry about job insecurity in 2009, because you will be recession free. Alternatively you may get a job as a FX professional.

“Nothing happens by itself…it all will come your way, once you understand that you have to make it come your way, by your own exertions.” - Ben Stein

If you want to learn forex trading, you can go to my websites or send an email to me.



By: brend

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Divergence is a price technical indicator that occurs whenever the live quote and the oscillator a trader is comparing goes in a different and opposite direction. In forex trading, divergence signals if there is an upcoming change in a trend whether in reverse mode or in progress. By observing the divergence, a trader is signaled for a trading opportunity.

There are two types of divergence in currency trading-regular and hidden divergence. Regular divergence happens in two trends. One is when the price creates higher highs when the oscillator says otherwise and the other is when the live quote creates lower lows when the oscillator is not. On the other hand, hidden divergence occur when the oscillator makes higher highs while the price is not and when the oscillator makes lower lows while the live quote is not as well. In a way, regular divergence is the result of changes in the price trend that might happen in the near future while hidden divergence confirms past live quote trends.

In the forex market, once the live quote reach its higher highs while the oscillator turns out to be on the lower highs, it indicates trend reversal from up to down. Same goes when the price reaches its lower lows while the oscillator shows higher lows. Such is an illustration of the classic or regular divergence.

Hidden divergence is somewhat contrary to regular. In this case, whenever the oscillator shows higher highs and the price on its lower highs, the downward price trend is confirmed. Higher lows in price and lower lows in the oscillator is a confirmation of the upward price trend.

The trading system, however, must not be taken as a go signal to enter or exit a trade in the forex market. It acts as mere indicator for a possible profitable trade.



By: Timothy Stevens

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International trade is the exchange of capital, goods, and services across international borders or territories. It strengthens the economic and social relationship between the countries. This type of trade integrates world economy to a greater level, in which costs are affected by supply and demand of global events. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded such as tourism, banking, consulting and transportation in the international market. It is mostly restricted to trade in goods and services, and has a less significant trade in capital, labor or other factors of production.

International Trade is done under the boundaries of trade pacts and treaties which lay down the guidelines for the business, export and import of goods, services and technologies etc. It has become a major source of economic revenue for many nations and in some cases account for a significant part of GDP. It also provides investment, employment and growth opportunities. Lacking international trade, nations would be limited to the goods and services produced within their own region. In the wake of globalization international trade provides opportunity to smaller traders and businessmen to sell their products and services through trade leads in electronic and print media.

Trade Lead is a means for following up and capturing a project. They are a tool for finding a project offered by someone in some other part of the world matching to the set of skills and services you have on offer. The national governments also help companies or traders find such projects by maintaining databases pertaining to this in other countries for eg: the U.S. Government has resources world-wide in Embassies and Consulates that help identify promising leads for U.S. exporters. Through various websites, forums and portals also such projects could be searched and won under different products and services categories. International Trade has led to the opening of markets and economies, thus developing Trade leads between various strata of their economic sectors.

Let us elaborate it by an example. Diamonds are mined in South Africa, but for their cutting they are exported to India as there is less skilled and cheap labor there. They are again sent back to South Africa. Companies or people engaged in the work of Diamond cutting in India look for projects and win them through various trade leads. Thus international trade promotes specialization of countries in certain products and services, trade leads help companies in cutting down on costs of bagging projects.

With time and technology Trade Leads would become more important contributors to the International Trade and make global products and services available to buyers in each corner of the globe.



By: Manu Vikram Singh

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The logic of day trading is totally flawed and will never make you money over the longer term and will wipe out your equity.

If you want to prove it ask anyone who says it does to give you a real time track record of profits and you won’t get one.

Why? Because day trading does not make money.

Before we begin, you may ask yourself why there are so many people claiming they make money at day trading?

Well the answer is it’s a good story and appeals to peoples greed.

This creates system sales and revenue for the vendor OF these day trading methods so they make money you lose.

Here are the reasons day trading does not work:

1. Time Period

A day is to short a time period to judge market trends accurately.

Think about it.

Trillions of dollars are traded everyday and prices can go anywhere and there is no way of guessing what the volatility in a day will be or the direction.

Short term moves are simply random.

You could probably flip a coin and do as well as most day traders.

2. Stops

Day traders use the daily range to buy and sell and set stops.

Stops therefore tend to be close to entry by the very nature of day trading.

Volatility in a single session is impossible to judge and most times simply picks off the stops and creates small losses which add up.

3. Banking profits early

Most day traders are looking to scalp a few pips here and there.

They do have some wining trades (more by luck than by judgment) but of course they break the fundamental rule of trading leveraged investments which is:

Run your profits to cover your inevitable losses.

As they have a lot of losses and marginal profits the net result is the erosion and eventual wipe out of account equity.

Day Trading is a good story, but in reality day trading doesn’t work over the long term.

Simply ask any vendor who sells a day trading system for this:

A real time track record of their profits over 3 years and see the answer you get.

The conclusion from all of this?

You guessed it – Avoid day trading if you don’t want to lose your money.



By: Sacha Tarkovsky

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Forex day trading is a type of trading that a lot of currency traders get involved in. This is especially so for those who are looking for quick profits. Some traders also like the fast and sometimes furious (especially when they are losing money) pace compared to other forms of forex investments.

When you break it down, it would seem a little curious because the profitability earning has a higher percentage than long term investments, but it is the risk of day trading that keeps most investors away from it.

While it is risky, there are certain advantages to forex day trading because of the speed of the trading cycle. In essence, you are taking advantage of daily trends and trying to get in and out quickly while still making a decent profit. You may not make as much as a long term deal, but due to the fact you\’re making a lot more deals, it can be just as profitable.

Another positive of forex day trading is that you are not exposed to the moves of the market after it shuts down like the long term investors are. You are in and out of your trades on a daily basis and can sleep easy at night knowing your profits are in the bank.

Nowadays, there is a proliferation of forex trading software that claims to generate forex signals with very high degree of accuracy. Some of these so called automated forex trading system can even do the trade for you. Do not trust everything they say. Before you buy any of these forex trading software, make sure you visit some forex forums to find out what others have to say about them.

However, it is not all strawberries and whipped cream with day trading. There are estimates that about 80% of the traders that are involved in this segment of the market are actually losing money!

As we stated earlier, there is a much higher risk involved in day trading and a lot of traders simply don\’t understand this when they first dive in and are not approaching the forex market with a proven model that generates the right forex signals and they end up losing their shirts. This is more than likely where forex trading will sometimes be talked about negatively.

The fact is that a lot of the day traders are not actually trading with their own money. They are using leveraged forex accounts and when they take a significant loss, they cannot meet their margins and they end up in debt. It is not the market that is bad, it is the trader making the deals.

The only true way to find out if day trading is for you is to try it out. When you do this, make sure that you use a very conservative strategy so you don\’t fall victim to losing too much money if you find that it is not for you. You can definitely make money day trading, but the fact is that this niche of the forex market is not meant for everyone.



By: Daniel S.

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First what is Forex: The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.

The Forex, or foreign currency exchange, is all about money. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.

Prices of currency are influenced by a number of factors such as political and economic conditions in the issuing country. Interest rates, inflation and political stability are all factors in the prices of a currency. Governments try to control their currency prices by lowering the price (flooding the market), or by raising the price and buying on a large-scale. Although the volume of Forex is sizable, it’s still impossible to have any control of a market for any length time and because market forces normally prevail in the long run, Forex has become one of the fairest investment opportunities available.

Each currency in the Forex market is given its own three letter code that is used in the Forex quotes. The most common and widely used currencies used in the Forex market are USD (U.S. dollars), GBP (United Kingdom pounds), JPY (Japanese yen), CAD (Canadian dollars), EUR (European euros), AUD (Australian dollars) and CHF (Swiss francs). These currencies are the top foreign currencies to watch in the Forex trading game. The prices of the foreign currency exchanges are specified in pairs by the forex quotes. By using a currency pair of U.S. dollars and European euros in the example below, the first currency is called the base (which is always at 1) and the second currency is called the quote (which shows how much it costs to buy one unit of the USD, or base currency): USD/EUR = 0.8419. When reversed, this is the cost of USD to buy one euro: EUR/USD = 1.1882.

The base currency is growing stronger when the price of the quote currency goes up, therefore only one unit of the base currency can buy more of the quote currency. However, if the quote currency begins to fall then the base currency will become weaker. All forex quotes are perceived as a “ask” or a “bid” price. The ask price is what sellers will sell the base currency at, while at the same time be buying the quote currency. The bid price is what the buyers will pay for the base currency, also while selling the quote currency. For example, a symbol bid ask of:USD/CAD 1.2392 1.2397. This shows that you can buy one U.S. dollar for 1.2397 Canadian dollars, or you can also sell one U.S. dollar for 1.2392 Canadian dollars. You can find the exchange rates in cross country charts that list numerous types of currencies with their values against one another. There are also currency conversion calculators, all of which are readily available online.

Along with the U.S. dollar, United Kingdom pound, Japanese yen, Canadian dollars, European euros, Australian dollars and Swiss francs as some of the top currencies to watch in the forex trading game; some new currencies have been emerging. Be sure to keep an eye out on these emerging currencies: CNY (China yuan), CZK (Czech koruna), HKD (Hong Kong dollar), HUF (Hungarian Forint), INR (Indian Rupee), KRW (Korean Won), MXN (Mexican Peso), PLN (Polish Zloty), SGD (Singapore dollar), ZAR (South African Rand), and THB (Thai Baht). These currencies may not be one of the top currencies now, but they can make for some good investments. Taking two examples out of all of the emerging currencies:

The Czech koruna is a convertible, yet free floating currency that has been floating around since May 1997. All foreign investors have unrestricted access to these local markets. London banks continue to be very active in currency trading and accounts for nearly 60% of the daily turnover. This market is liquid for about five years. The Interest Rate Swaps, or the IRS, is mainly driven by offshore banks.

The China yuan is only limited to financial institutions and onshore companies and is not liquid. Currently the USD/CNY rate is about 8.2770 and is being closely managed by the central bank (PBOC). The Chinese government has resisted all calls for them to revalue their currency; but as the Chinese government continues to strengthen their banking systems and make reforms in their economic policies, there is likely to be a possible call for opening spot trading. The interbank money market does not go beyond four months.

Knowing the top currencies to watch in Forex trading will get you in the game.



By: David Mclauchlan

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Forex money management is simply seen as a way of restricting loses but its lot more than placing a stop, if you follow the tips in this article, you could increase your gains dramatically…

The aim of forex traders is to take risks at the right time and get the odds on their side and then get as much as the trend as they can - sure you knew that already!

However most traders think high odds trades come around all the time - they don’t.

The really great trends maybe come around a few times a month no more but how many traders try forex scalping and day trading? Lots. How many lose? All of them.

The first real rule is to get the odds on your side as much as possible and that means

Cutting your trading down - most traders simply trade too much.

Keep in mind though you don’t get paid for how often you trade you only get paid for being right with your trading signal and that’s it.

Once you cut you’re trading down, you can concentrate on hitting the opportunities you are going to trade harder.

A huge mistake is to diversify why?

It simply dilutes gains. Most traders, also have small accounts and if they take the common wisdom of risking 2%, they have to have their stop so close, their guaranteed to get stopped out.

They have a small loss - but on the other hand, they have no chance of winning.

Sure it’s the majority view to risk 2% - but the majority doesn’t win!

Risk 10 - 20% and you will stay in the trade and get some meaningful profits.

Next the most common error of all of novice forex traders is to trail their stop to close and get bumped out the trade, by normal market volatility.

If you don’t know what standard deviation of price is, make it part of your essential forex education!

Knowing how to trail a stop, outside of normal volatility is the key to huge gains.

If you trade don’t trail too quickly and if your long term forex trend following, keep your stop well back.

A good way to do this is to use key trend line support, around the 40 day Moving Average.

Sure you give a bit back at the end of the trend but you don’t know when the trend was going to end anyway so don’t try and predict - you can’t

If you look at a forex chart, the big trends last for weeks, months or years and there worth a lot of dollars in the pocket.

If you trade forex you need to take risk pure and simple. You are not trading in a manner but take calculated risks when the odds are on your side.

If you want to make 10 - 20% you can do it with less risk elsewhere.

If you want 50 - 100% you need to take risks, it’s as simple as that.

Most traders try to restrict risk so much they create it. Sure they keep their losses small but they have a lot of them and never make any decent gains.

So in forex money management terms, you need to take risks at the right time hit the high odds trades with your forex trading strategy and milk them for all there worth.



By: Kelly Price

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The rise of online forex trading means that anyone can swing trade for short term profits, Its not only profitable, its easy to learn, good fun and that’s what trading should be.

Forex swing trading online provides the ideal market for the methodology of swing trading.

So why are currency markets the ideal for swing trading?

Lets first of all define what forex swing trading actually is

Forex Swing trading aims to identify intermediate swings in price, that can last from anywhere from a few days, to a few weeks.

This is not day trading – day trading has no reliable data as the period is to short and you cant make money.

Swing trading here means still looking at short time frames, but the data is reliable enough for you to get the odds in your favor.

The following conditions make FOREX swing trading potentially such a lucrative way of trading

1. Liquidity

Each day the global forex markets see trillions of dollars transacted.

This is a 24 hour market and is the world’s biggest investment marketplace.

The huge size of the markets allows traders to open and close transactions quickly, to lock in profits and minimize losses.

2. Volatility

Currency markets are volatile and this is why a short term trading method such as forex swing trading can be so profitable.

A volatile moving market is essential for swing trading.

This volatility means a large number of potential opportunities that are presented to forex traders.

3. Transaction costs

Low transaction costs that were once the preserve of large institutions, now any trader can get 3 – 5 pip spreads meaning short term trading is viable for any trader

Swing trades come regularly

While currencies present long term trends, there are many profitable swing trading opportunities within them.

These shorter trends last for a few days to a few weeks and they offer regular high reward low risk trading opportunities for forex swing traders

5 Psychology is easy to learn

Many traders lack patience and want to have quick action well that’s exactly what you get with forex swing trading.

FOREX swing trading offers them a lot of trades regularly and you don’t need the patience of a long term trend follower.

Swing trades tend to either run to profit quickly or loss, keeping the trader interested, motivated, disciplined and focused.

This is an ideal way of trading for someone who loves trading.

Forex swing trading is also

Easy to learn you can simply use support and resistance lines with some confirming momentum indicators. For example, we use just stochastics and

RSI – It’s simple and a stress free way of trading and best of all can make big profits with low risk.

FOREX Swing trading is fun and very profitable and that’s the way trading should be.



By: Sacha Tarkovsky

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When you decide on what trading system to use, you should take into consideration your own personality and trading style. A trading system with rules that are not completely understandable to you and is not compatible with your timing preference and risk tolerance will not work nearly as much as one that matches you to a tee. While there are a number of forex trading systems out in the market today that could be purchased for a few thousand dollars, the best trading system is one that you develop yourself. The best thing about this is that it is absolutely free.

Whether you choose to purchase a forex trading system or develop one yourself, the kind of system you should actually put into your forex trading plan should be one that you have been able to back-test yourself and one that you have put through demo trading for about a couple of months. Testing the system yourself will break it in for you and get you used to the kind of trading you can do with it.

Your forex trading system should contain all pertinent information you need in implementing your trades. Your timeframes should be included - do you go for swing trading or an intra-day trading? It should also set the parameters for entries and exits for your trades. You should be able to trust your parameters and not doubt them when it comes time to trade. You do not have much time to dilly-dally during trades or else you’ll might miss your chances for maximum gains. Your forex trading system should also contain the currency pairs you are trading and how much you have in your portfolio.



By: Timothy Stevens

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Here we will look at a trading opportunity we looked at recently and look at two more that are shaping up right now.

Let’s look at them.

Pull up any free chart service such as futuresource.com and add the following indicators:

Bollinger bands, stochastic and Relative strength Index (RSI)

Now let’s look at some trading opportunities – this article is written at 12.AM CET

US V Canadian Dollar

This trade made us some great profits on the downside and now we have taken a contrary trade as we have zeroed in on key support at 1.10

Prices are trying to hold current levels a close below the 1.10 level - negates the contrary trade.

RSI is oversold at 24.38 and stochastics are flat.

We are already long at current levels to enter new positions we look for stochastics to cross with bullish divergence.

Target is the middle of the Bollinger band.

British Pound

We have had a lot of good trades in this currency and made a great profit from the recent breakout.

Prices have pulled back from the highs and another opportunity is presenting itself:

Prices have dropped to the middle of the Bollinger band and started to steady – RSI Has started to rise but stochastic momentum remains down -= The key to this trade is to watch the stochastic

A cross to the upside with bullish divergence should see a quick pop to the highs.

As per usual wait for confirmation of strength before going long.

US Dollar V Japanese Yen

This trade treated us well last time we looked at it and we made a great profit trading the dollar to the long side and were looking to exactly the same again.

Prices broke up above the 120.00 level and prices are testing the breakout point.

If this point can hold and stochastics turn bullish - the bulls will take charge and the US Dollar looks set for strength.

Again, it’s a question of waiting for confirmation before getting in.

Price momentum has not yet turned up so wait for the stochastic to give the signal.

Getting In the market – Confirmation Is The key!

In any trade you attempt, don’t try and impose your view on the market – wait for your view to be backed up by confirmation that price momentum is in your favor.

This will dramatically increase your odds of success.

We love the Relative Strength Index and particularly the stochastic indicator - it amazes me that more traders don’t use them.

If you don’t read our other articles to find out how they can help increase the odds of success in your own trading.

Trading is all about getting the odds in your favor.

For this you need to understand and use changes in price momentum to enter your trades.

Good Trading!



By: Sacha Tarkovsky

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