Foreign Exchange Markets ? a General Overview and Structure of the Forex Market

Posted by on March 29, 2010 under forex indonesia | Be the First to Comment

In the beginning countries would trade with each other using the barter system. If one nation needed lumber but had cattle, they would trade one product for another. This was pure trading. This type of economy has many limitations, but served mankind well for many centuries. However, nations quickly saw the benefit of having a system of exchange, and while some cultures used pretty rocks, or animal teeth, precious metals quickly became established methods of exchange. God and silver were the most popular. Initially gold and silver coins were used, and in fact the name of the British standard currency, the pound sterling, came from the Hasterling region where gold coins were made, and originally meant coins of the Hasterling’s. Up until World War I most nations had central banks that supported the value of their currencies and most used gold as the standard. Paper money was printed and it legally could be exchanged for gold but this did not often happen. Since it was rarely converted, some banks and some nations believed they no longer needed to keep reserves of gold in their vaults, as the US once did with Fort Knox. Inflation then occurred.

Near the end of World War II a conference known as Bretton woods had many nations reach an agreement on a reserve currency system based on the US dollar. The World Bank and other organizations agreed, and a fixed exchange rate system was reached. The value of the dollar was fixed on a certain amount of gold, and other currencies were fixed on value to the dollar. Currency trading after this however has evolved and currencies have grown in value, and gone down in value, leading to fluctuation.

Today traders take advantage of the fluctuation in value among currencies through the forex or foreign currency markets. It is quite common to see a trader who suspects that the value of the Euro will go up against the yen or the dollar and follow the old axiom of “buy low and sell high.” On of the ways this is done is through margin trading. With margin trading a trader doesn’t have to have all the money in an account that is being traded. If a trader has 10,000 and works with a one percent margin, he is able to trade $100,000 in currency. This adds great leverage to the trade and makes forex trading very attractive to many who are looking for a large and quick return on their investments. Forex traders are also attracted to the low costs associated with trading since most trades are without commission. The fact that there is a 24 hour trading cycle is also attractive to many. Traders have opportunities for large profit, but they also have risk inherent. An aggressive trader may experience profit and loss swings of up to 30% in a day. This can be 30% to the good, or to the bad, so forex trading requires education and courage as well as capital. However there are no daily limits and no restrictions on trading hours other than the weekend when markets are closed. For this reason there are always opportunities. Money will always be made.

Much of the forex trading that occurs however is not with individual investors or speculators. Many commercial organizations have currency exposures that are created due to import and export activities. This is reason enough for many to engage in forex trading. However, financial institutions remain the biggest players in the forex market. Banks, brokers, mutual funds and other major financial institutions are actively involved in forex trading.

Some nations in the past have complained about hedge funds and other large institutions involved in forex trading, saying that they have intentionally devalued their currencies to make quick profits. George Soros, the famous billionaire who is involved in politics, has been accused of this practice by the government of Indonesia. Whether it is true or not, and if true whether it should or should not be done is not for this article. However, when institutions control such large amounts of money, the chance of manipulation does exist. As long as foreign currency is traded, there will be such accusations. However, the forex market remains a way to achieve substantial financial gain.

(AFX UK Focus) 2010-03-23 11:32 SE Asia Stocks-Mostly up, led by Philippines; Vietnam falls

Posted by on March 27, 2010 under forex indonesia | Be the First to Comment

(AFX UK Focus) 2010-03-23 11:32 SE Asia Stocks-Mostly up, led by Philippines; Vietnam falls
By Shihar Aneez

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(AFX UK Focus) 2010-03-23 00:59 Philippines-Market factors to watch - March 23

Posted by on March 26, 2010 under forex indonesia | Be the First to Comment

(AFX UK Focus) 2010-03-23 00:59 Philippines-Market factors to watch - March 23
MANILA, March 23 (Reuters) - Here are news stories and press reports which may influence local financial markets on Tuesday. WHAT IS HAPPENING TODAY IN THE PHILIPPINES, ALL TIMES LOCAL FOLLOWED BY GMT (The inclusion of items does not necessarily mean that Reuters will cover the event) MANILA- Department of Finance to release February fiscal performance, media briefing at 11:00 a.m. (0300 GMT …

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The Ultimate Forex Trading System

Posted by on March 25, 2010 under forex indonesia | Be the First to Comment

 Perfect Forex Trading System

Trading the Forex market has become really popular in the last a couple of years. But how challenging is it to achieve success in the Forex trading arena? Or let me rephrase this question, how many traders achieve solid profitable results trading the Forex market? Unfortunately very few, only 5% of traders achieve this destination. One of the great reasons of this is because Forex traders center in the bad information to make their trading decisions and entirely forget about the most powerful factor: Price behavior.

Most Forex trading systems are produced off technical indicators (a moving average (MA) crossover, overbought/oversold conditions in an oscillator, etc.) But what are technical indicators? They are just a series of information points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other facets of price.

There is an serious implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as “the MA crossover prepared the price go up,” but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision produced.

Trading decisions based on technical indicators without including price action into consideration will give us less right results. For example, again a long signal generated by a MA crossover as the market approaches an powerful resistance level. If the price suddenly starts to bounce back off that serious level there is no point on including this signal, price action is telling us the market doesn’t want to go up. Most of the time, under this conditions, the market will continue to fall down, disregarding the MA crossover.

Don’t get me wrong here, technical indicators are a really serious aspect of trading. They help us see certain conditions that are otherwise tough to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.

So, how to create a perfect Forex trading system?

First of all, you want to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You require to make your own research on different trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.

Secondly, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and low signals if the market gives you indication that it will go down.

Third, and most importantly, you require to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling well and being consistent profitable apply your system in a regular account.

Now that you have the system in place you need the perfect forex broker to assist you execute your system, the CFD FX REPORT has recently researched all the brokers and have come up with the Best Forex Brokers in the market. So feel free to visit them or email [email protected]

Happy Trading

(AFX UK Focus) 2010-03-17 02:28 Thai stocks may rise, building on two-month high

Posted by on March 23, 2010 under forex indonesia | Be the First to Comment

(AFX UK Focus) 2010-03-17 02:28 Thai stocks may rise, building on two-month high
BANGKOK, March 17 (Reuters) - Thai stocks may climb further on Wednesday after hitting a two-month high a day earlier, buoyed by strong foreign buying that could spill over to the baht.

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Who want to invest in FOREX bussiness?

Posted by on March 22, 2010 under forex indonesia | 2 Comments to Read

No Tax, Profit can liquid everyday, Risk Management. Profit 10 - 15 % per month, Professional Trader, Registered in BAPPEBTI. (INDONESIA / JAVA ISLAND preferred)

India Said to Propose Sovereign Fund for Oil Assets (Update4)

Posted by on March 21, 2010 under forex indonesia | Be the First to Comment

India Said to Propose Sovereign Fund for Oil Assets (Update4)
March 17 (Bloomberg) — India , with $254 billion of foreign-exchange reserves, may create a sovereign wealth fund to help state companies compete for overseas energy assets with China, a government official said.

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does the forex trading addicting like a kid’s game?

Posted by on March 20, 2010 under forex indonesia | 2 Comments to Read

does investors of retail forex get bore and wanna jump become the owner and build and operating the forex futures company in my country indonesia who am looking for as stated in my blogs

bagaimana membuat expert advisor atau robot forex trader ? kunjungi blog

Posted by on March 18, 2010 under forex indonesia | Read the First Comment

expert advisor, robot trader, forex robot, ea, ea statement, live result, live statement, free expert advisor, belajar mql4 indonesia, cara membuat ea tutorial dengan bahasa indonesia, profitable expert advisor, expert review, managed forex account, fund manager, investing money, forex, forex trader, forex indonesia, trader indonesia, expert advisor indonesia, MT4 indonesia

Forex Brokers For Dummies

Posted by on March 17, 2010 under forex indonesia | Be the First to Comment

Finding Forex Brokers For Dummies


Forex Brokers- Finding a great Forex broker is an important as selecting a winning trade. We know that we must research brokers before choosing one, so what are the key things we should be looking for?

 No matter if you are Forex Trading in India or Forex Trading in Australia, Forex trading can be risky, but it does have huge potential for you to either make a lot of money or lose a lot of money. If you have been around the market awhile you will realize that not all Forex Brokers are equal, and in fact some border being just plain rip off merchants. This can be a major turn off for many new investors, the fear of being ripped off by a Forex Broker.

 So how can you find a Great Forex Broker if you are trading From Indonesia?

 The great news is that there are some awesome forex brokers in the market. A good place to start is finding Forex Brokers as a referral or through a company that knows a lot about forex brokers. Recently the CFD FX REPORTresearched all the Forex Brokers and have found who they believe to be the best.

 Now if you don’t feel comfortable with that and you want to do all the hard work of researching brokers yourself, then here is a list of things to look about when looking for a great Forex Broker.

 1. Find and validated the companies reputation- See what license they hold

 2. Make sure they are tied to Forex legitmatly

 3. If the company has just started stay away, they maybe fly by nighter

 4. What sort of spreads do they offer

 5. Do they offer stop losses?

 6. Do they requite your orders? If the do stay away

 7. What is the slippage?

 8. Where is your money held? If it is not through a reputable bank stay away

 Any trader serious about gaining extra knowledge and becoming a better trader should continue to educate themselves as great place for Free education lessons is the CFD FX REPORT they offer as host of great education lessons. You can also join there forum and chat to traders around the world, or visit there broker section and see who the expert recommend. This site is a must for anyone serious about trading.

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