Forex Trading Software Tip: Is An Automated System Important To Forex Trading?

By Todd Joyner

Just how important is an automated system to the Forex trading system? Before we answer that question, let us first determine how large Forex trading market is. From there, we will know the importance of automated systems for the Forex market.

Before we answer this important question, let us talk about how big the Forex trading market is. From there, we will discuss the value of automated systems for the Forex trading market.

You name it, we've got it. Take a look at the following:

BANKS- they are not just for saving money and lending capital to entrepreneurs, but they are one of the major players in Forex market. Banks cater both to large quantity of speculative trading and daily commercial turnover. Well-established banks can trade billions of dollars worth of foreign currencies everyday. Some of the trades are undertaken on behalf of their clients, but most are through proprietary desks.

COMMERCIAL COMPANIES- these commercial companies trade small quantities of foreign currencies compared to larger banks and their trades produce small and short-term impact on the market rates. However, the trade flows from transactions made by commercial companies are essential factors with regards to the long-term direction of the exchange rate of a certain currency.

CENTRAL BANKS- central banks play an important function in the Forex market. They have the control over the supply of different currency, inflation, and interest rate. In addition, they have also official target rates for the currencies that they are handling. They are responsible for stabilizing the Forex market through the use of foreign exchange reserves. Their intervention in the market is enough to stabilize a certain currency.

INVESTMENT MANAGEMENT FIRMS- these firms commonly manage huge accounts on behalf of their clients such as endowments and pension funds. They are using the Forex market to facilitate transactions, specifically in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.

RETAIL FX BROKERS- they handle a fraction of the total volume of Forex market. A single retail Forex broker estimates retail volume of between 25 to 50 billion dollars each day, which is estimated to be at 2% of the total market volume.

SPECULATORS- these are individuals who purchase and sell foreign currencies and profit through fluctuations on its price as opposed to popular methods such as interest and dividends. They perform the important role of transferring the risk to individuals who do not wish to bear it.

In the Forex trading market, there are already six major players partaking on the $1.8 trillion worth of daily turnover. With a large number of Forex trading players, there is really a vital need in switching from manual to automated Forex trading system.

Among the aforementioned major Forex players, the automated trading system is of great advantage to the speculators. Since they focus on the price fluctuations of various foreign currencies in order to profit, the real time data analysis will help them determine trades that will give advantage to them.

There are several automated Forex trading systems available in the market. There are also automated Forex systems that are offered for free or as part of their trading account acquired from their Forex brokers or agents. Such complimentary system packages are typically elementary trading system. Thus, if you are looking for more features, you can avail of it through additional payments.

There are two types of automated Forex trading system. These are discussed in the following:

Desktop system- all Forex-related data are stored on your desktop's hard drive. This system is unpopular to Forex traders because all data are susceptible to computer virus contamination and other security problems. Worse, when the computer malfunctions, all essential information might be lost and cannot be retrieved (unless you have some back-up files of your own). However, it is little expensive compared to the other types of automated trading system.

Web-based system- the security of your Forex account and other data are provided by your web-based provider. These are hosted on secured servers. It is also convenient in the sense that there will be no software required and it is universally compatible with your Internet browser.

You may also try different automated trading system demos first so that you will be able to determine the automated Forex trading system that suits your personal preference and needs.

Even if you are just a small-time Forex player or just starting out, it will be to your best advantage if you will use an automated Forex trading system for your future Forex trading needs. - 23218

About the Author:

Want to find out more about Forex Automated Systems, then visit Todd Joyner's site on how to choose the best Forex Automatic System for your needs.

US Dollar (Part II)

By Ahmad Hassam

The Federal Reserve Board (FED) is responsible for making the monetary policy of United States. FED sets and implements the monetary policy through its Federal Open Market Committee (FOMC). The voting members of FOMC are the seven governors of FED plus five presidents of the district reserve banks. Eight meeting of FOMC are held every year. These meetings are widely watched by the analyst for interest rate announcements and changes in growth expectations.

FED has the mandate for long run price stability and sustainable economic growth. FED has a high degree of independence in setting the monetary policy. FED uses the monetary policy to control inflation, unemployment and balanced growth. The most important tool used by FED is its Open Market Operations.

FED controls the short term interest rate through its open market operations. It involves FEDs sale or purchase of government securities that includes treasury bills, notes and bonds. Increase in FEDs purchases lowers the interest rates while selling of these securities raises the interest rate.

Federal Fund Rate is the key policy target of the FED. It is the interest rate at which the banks lend overnight to one another. The primary interest rate that is affected by these operations is the Federal Fund Rate.

Fiscal policy means the amount of taxes and government spending for a given year. The US fiscal policy is in the control of US Treasury. In fact it is the US Treasury that actually determines the US Dollar policy.

For example, if the US Treasury feels that the US Dollar is under or overvalued, US Treasury can give instructions to the New York Federal Reserve Board to intervene in the forex markets by actually buying or selling US Dollars. Therefore, you should always try to watch the US Treasury views as changes to that view is very important for the currency markets.

Over 90% of all currency deals involve the US Dollar. The heavily traded currency pairs in the global currency markets are EUR/USD, USD/JPY, GBP/USD and USD/CHF. These currency pairs represent the most frequently traded currency pairs in the global markets. As you can see, all these currency pairs involve US Dollar on either side of the pair. So the most important economic data for the global currency markets is the US Dollar fundamentals.

The relationship between Gold and US Dollar is very important for you to understand. There is an almost perfect negative correlation between the US Dollar and the gold prices. The US Dollar moves in opposite direction to the gold. This inverse relationship stems from the fact that gold is measured in US Dollars.

When US Dollar depreciates due to global economic uncertainty like the present, gold appreciates. Gold is commonly viewed as the ultimate safe haven commodity by the investors all over the globe. You must know that the gold prices are going up right now. - 23218

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Try Strignano's Forex Signals free. Discover a revolutionary Forex Robot Trading System!

Guidelines On Investing In Penny Stock That Matters

By Malcolm Torren

How does penny stock market work? Why does it exist and how come some people talk about penny shares going up and down? Who are these so called stock brokers? Two words should be enough to give you a brief idea. These are because of investments and profits. The stock exchange is a public center where company stocks and shares are being sold and bought everyday. People keep on investing in penny stock trading daily because there is money to be made.

The shares sold in the stock market rise and fall everyday. While every investor's goal is to earn good hefty profit, there will always be lost investments and gain at the end of the day. Some investors own penny stocks in several small cap companies. They do this to increase their probability of profit. They could lose in one deal but gained a great amount of income from another buy.

Investing in penny stock companies is a good challenge and can be fun too. If you're new to this business, check this outline:

- Penny stock investment facts - Common penny stocks are traded between one dollar and five dollars per share. These shares are not traded frequently. Information is usually scarce in this arena. Penny stocks are usually hyped and are more exposed to media press releases. These stocks are usually difficult to accurately price. While it is true that penny stocks are not easy to sell, investors still believe in investing in penny stock trading because of its huge potential leverage.

- Hints of fraud - It is commonly know to investors that penny shares are prone to fraud. This is mainly caused by the lack of information and inaccurate pricing. There are some ways to determine if a penny stock or the stock broker is reliable of not. Here are some of them:

1. Stock brokers that claim impressive history of success in penny stock investing without any documents to show for it;

2. When the media over-exaggerates it, making it sound too good to be true;

3. Strategies that drop names about huge companies which started out with penny stocks;

- Penny stock brokers and advisers - These firms are your best friends in the business. They can do a lot for your investments for a commission. Stock brokerage firms possess the stock market intelligence to level up your confidence. So when investing in penny stock trade, consider getting a broker. You've seen how major stock exchanges like NYSE, AMEX, and NASDAQ work. You just can't do it alone.

- Penny stock investment advices - Learn, learn, and learn. Your assumption must also include the risk of investment loss whether in part or in whole. Research and analyze the trends. Know the best stocks available. Knowing all these things may still not be enough. The stock market is a very fast paced business environment. You must be extremely alert if possible if you decide on investing in penny stock trading. There is actually no guarantee. At the end of the day, what counts most is your decision. And that is always based on how much you know and understand it. - 23218

About the Author:

Know how smart people go about penny stock pick. Study more basic guidelines on investing in penny stocks!

The Yellow Metal Spells Profits

By Michael Swanson

In this economy, it is a good idea to try and make money wherever you can. Gold is one thing that you can invest in where in this economy is still profitable. When people end up hoarding gold, it really affect the price- the cost of gold will remain high. Because of the huge quantity of gold that is stored, the cost of gold is changing all the time. Stock trading with gold investing is a sure way to making money, eventually.

The gold used to represent the paper money. Today, there is more paper money than there is gold. Because of the bank failure during the great depression, President Roosevelt in the 1930's Passed a law to outlaw gold ownership.

Investors buy gold because they can make money on the increasing gold prices and also it is a great thing to have in case of social or economical turmoil where paper money would be rendered useless. This seems far fetched but it is actually something that could possibly happen.

You can buy bullion or coins or you can trade through the gold exchange traded funds. You can also invest in certificates, derivatives, shares or accounts.

The price of gold is constantly increasing at a pretty level rate. A lot of research needs to be done before you start investing, though. There is really so much to learn and know. You want to be fully educated so that you do not get ripped off and you know what you are buying. It really does make the entire process a lot easier.

So, if you would like to start gold investing, you need to make sure that you know the facts. Learn all that you can. If you head this advice, you should be able to buy gold at a good price. - 23218

About the Author:

One good way to start our in gold investing is to subscribe to my free gold stocks newsletter.

Forex Exchange Trend Is Your Friend

By Chris Green

Most forex exchange traders by now should know what the "trend" is. The old saying "The Trend Is Your Friend" is not just a simple rhyme, but an excellent tip for a trader if used properly. Finding the trend in the currency pair you are trading is usually a good place to start. It can give you an idea on where the market is turning. Not all of the time it is best to just follow the trend, but it is a good starting point for giving you an idea of the market direction.

In some cases in forex exchange trading, it can be a little difficult figuring out when a good time to follow the trend is and when to take your own intuition on the trade. There are many different world events that can affect your currency values and put a change of direction into the market. A great way to keep up with this is to read current local and global news every day. Being aware of events going on around the world can have a positive influence on your trading intuition.

When preparing your forex exchange for trading, it is important to constantly be taking in information about the markets conditions and effecting world news. Don't just take a short time frame of research before your trades, this won't work out for the best. Prepare for hours or even days before jumping back into the market. If you fall a day behind in your research into the market, the chances are that your knowledge is a day behind, and many traders wonder why they are not a successful trader. It is all about being prepared.

Being a forex exchange trader, constantly saturating yourself with information on the market, you are going to find that trades come easy to you. The reason for this is that your mind is constantly absorbing and connecting the information you read about without even realizing it. You may find that your trading will become a second nature. The successful day traders do this everyday and make a career out of it. The reason to their success is their constant intake of information.

Following the forex exchange trend is a good start point, but in order to soar to success you need to take your skills beyond that for real results. Don't turn into an average trader, or a failing statistic. Allow yourself to be consumed by forex trading, and you will be able to master it. Second guessing your trades can be a bad move. Know your niche, your either good at what you do or not. Which would you rather be? It takes dedication. - 23218

About the Author:

If you truly want to get out of the ditch and make a buck, check out the "Big Wigs" Forex Exchange method. If you have read up to this point, and have had it with endless searching, stop letting the "Big Wigs" spoon feed you info, find out their insider secrets to Forex Exchange.