Fundamental Information - Forex Trading Strategy - Risk

http://www.theaureport.com/pub/na/16...R+Final+9-7-15

Interest rates affect gold because they affect the dollar. Higher relative interest rates attract capital into the markets, making a currency stronger. A delay in raising interest rates—or further easing—would effectively debase the dollar. That's a big positive for gold and also a big positive for dollar-denominated oil. Having the decision out of the way likely also would have its positive impact, where I agree that it's already discounted by the stock market, and, even if the rate hike comes, it will be small.

Nonetheless, the underlying problem is that the U.S. economy is not recovering. Again, we are looking at a new recession, although I'll contend it is an ongoing element of the economic collapse into 2008–2009. Once that becomes apparent, there will be massive dollar selling, a big spike in gold prices and oil prices will again move higher as the dollar weakens.

TGR: You warned in a special commentary that the world is increasingly out of balance and that dollar selling could be on its way. What are the triggers we should be looking for?

JW: The big issue still remains the long-term solvency of the U.S. The big spike in gold prices came when Standard & Poor's downgraded the Treasuries as Congress argued over the debt ceiling. That has never been resolved. Politicians in Washington are just burying their heads in the sand.

The basis for trading forex successfully is to understand the bigger picture. I call this Perception VS Reality.

Mr Williams shares the reality. I discuss the perception. The US Dollar Index will go down and since EUR/USD makes up 57.6% of the index then EUR/USD will go up. However the question is when ? WE , the World is in a Currency War. Risk On or Risk Off ? That leads to strategy. Any questions ?

http://www.efxnews.com/story/30299/a...%28eFXnews+%29




Snppet:
Turning to the majors, the safe havens EUR, JPY and CHF lost some ground at the start of the week. The single currency remains particularly vulnerable after the dovish September ECB meeting. The biggest beneficiaries should be the USD and GBP. Indeed, more evidence that policy makers outside the US and the UK are taking steps to avoid sharp risk selloff could increase the chances for a Fed hike before long and a BoE hike, next year. While some cautiousness on GBP could prevail ahead of the BoE meeting and minutes release, we think that now may a good time to re-enter short EUR/GBP positions. Risks for EUR/USD should remain on the downside as well.

Going forward, any recovery in risk could be fraught by several risks. A cautious recovery in market risk appetite will make it easier for the Fed (and the BoE) to hike rates before long. Tighter monetary conditions especially in the US could encourage further outflows from the EM and risk-correlated G10 currencies. In addition, even if the PBOC refrains from further competitive devaluation, this need not stop other CBs from weakening their currencies. The September ECB meeting is the latest example of that. We think that the BoJ is not that far from announcing more stimulus. Concerns about competitive devaluation will continue to add to fears of slowing growth and disinflation.

I found this Fundamental Information on another thread and share it here.

Bear
Investor acting on the belief that prices or the market will decline.


Bear Market
Any market that exhibits a declining trend. In the long run they have a down turn of 20% or more.


Bull
Investor who expects markets or prices to rise.


Bull Market
A market where prices are rising or are expected to rise.


Buy a bounce
A recommendation to instigate a long trade if the price bounces from a certain level.
A strategy that focuses on buying a given security once the price of the asset falls toward an important level of support. Traders who "buy a bounce" attempt to profit from a short-term correction or "bounce" off of the identified support.
In order to use this strategy most effectively, a trader has to be sure that he or she is able to identify a valid level of support. Some traders may wish to enter a position before the signs of a bounce off of a support level, but generally this is a high-risk strategy and can result in devastating losses. Most traders will want to confirm a bounce off of a support level by using a combination of other technical indicators before entering a position.


Buy break
A recommendation to buy the currency pair if it breaks the current level specified.
A type of recommendation to buy an asset once the price is able to surpass an influential level of resistance. A move above resistance is used as a buy signal because an increase in upward momentum often follows the breakout. Buying a break is a strategy often used by traders who incorporate the use of chart patterns, trendlines and other technical indicators into their trading.
For example, suppose a stock appears to have met resistance at the $50 price level for the last year. Many traders will watch the price movement around $50 very closely because a break above the resistance would suggest that a likely surge higher will follow. Technical traders use a break above resistance to signal a good opportunity to buy because a resulting surge of upward momentum commonly follows.


Buy stops above
A recommendation to enter the market when the exchange rate breaks through a specific level. The client placing a stop entry order believes that when the market's momentum breaks through a specified level, the rate will continue in that direction.


Cable
Term used to describe the exchange rate between the US dollar and the British Pound.


Chartist
Refers to a technical analyst or one who analyses charts/graphs and data to uncover potential trends.


Correction
A reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index. Corrections are generally temporary price declines, interrupting an uptrend in the market or asset.
A healthy market will correct from time to time.


Cover on a Bounce
A recommendation to exit trades on a bounce out of a support level.
The covering of a short position after it has reached and bounced off a level of support. This strategy waits for the price to move to a support level, instead of selling before, to see if the level will hold (because the trader will benefit if it doesn't hold). Once the security bounces it is clear the security will have trouble moving down further so the trade covers their short position.
Levels of support act as a backstop to a further move downward in price but can sometimes fail to hold. If a security falls below a support level it will often lead to an even stronger downward move as the level is taken out. The trader waiting for a bounce is betting that the support level will not hold and they will benefit if this materializes.


Cover on Approach
A recommendation to exit trades for profit on approach to a support level.


Dead Cat Bounce
A temporary recovery from a prolonged decline or bear market, after which the market continues to fall.
Ever heard the saying, "Even a dead cat will bounce if dropped from high enough!"?

Flat/Square
To either have no positions or positions that cancel each other out.

Fiber
Term used to describe the exchange rate between the Euro and US dollar.

Fibonacci Extensions
Levels used in Fibonacci retracement to forecast areas of support or resistance. Extensions consist of all levels drawn beyond the standard 100% level and are used by many traders to determine areas where they will wish to take profits. The most popular extension levels are 161.8%, 261.8% and 423.6%.
In practice, most traders use Fibonacci extensions in combination with other technical indicators/patterns to help them determine appropriate target prices. As this chart shows, the 161.8% level is often used to set the price target on a breakout of an ascending triangle. This specific target is calculated by multiplying the vertical distance of the triangle by the key Fibonacci ratio of 61.8% and then adding the result to the upper resistance of the triangle.

Fibonacci Retracement
A term used in technical analysis that refers to the likelihood that a financial asset's price will retrace a large portion of an original move and find support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

Fibonacci retracement is a very popular tool used by many technical traders to help identify strategic places for transactions to be placed, target prices or stop losses. The notion of retracement is used in many indicators such as Tirone levels, Gartley patterns, Elliott Wave theory and more.

Flat On A Failure
A strategy of closing out of a position and taking profits if the security in question moves up to a target level but fails to break through it. This can be seen as a method of extracting what profit a trade has been able to produce so far because the trader believes that further movement past the target level is unlikely.
For example, suppose that a trader is in a long position on a given currency pair and the exchange rate moves upward in her favor by a moderate amount but fails to move past a key resistance level she was expecting to act as a catalyst for further movement. In this case, the trader would probably deem the trade flat on a failure and close the position out for whatever profit had been earned.

Fundamental Analysis
The analysis of economic indicators and political and current events that could effect the future direction of financial markets.

GTC (Good-till-Cancelled)
Refers to an order given by an investor to a dealer to buy or sell a security at a fixed price that is considered “good” until the investor cancels it.

Hedge/Hedging
Strategy to reduce the risk of adverse price movements on one's portfolio and to protect against the volatility of the market. Hedging typically involves selling the good forward or taking a position in a related security. Hedging becomes more prevalent with increased uncertainty about current market conditions.

One Cancels Other Order (O.C.O. Order)
An order that through its execution cancels the other part of the same order.

Panic Selling
Wide-scale selling of an investment, causing a sharp decline in price. In most instances of panic selling, investors just want to get out of the investment, with little regard for the price at which they sell.
The main problem with panic selling is that investors are selling in reaction to pure emotion and fear, rather than evaluating fundamentals. Almost every market crash is a result of panic selling. Most major stock exchanges use trading curbs and halts to limit panic selling, to allow people to digest any information on why the selling is occurring, and to restore some degree of normalcy to the market.

Pivot
A price level established as being significant either because the market fails to penetrate it or because a sudden increase in volume accompanies a move through that price level.

Pivot Point
A technical indicator derived by calculating the numerical average of a particular stock's high, low and closing prices.
The pivot point is used as a predictive indicator. If the following day's market price falls below the pivot point, it may be used as a new resistance level. Conversely, if the market price rises above the pivot point, it may act as the new support level.

Resistance
A price level at which most investors expect prices to decline further. A price at which there is sufficient supply to turn a previously uptrend downward. With regards to the forex market, it is the level at which a currency cannot rise above.

Retracement
A reversal in the movement of a stock's price, countering the prevailing trend.
An example might be market risk causing a stock's price to pull back. The Fibonacci retracement tool is favored by many traders because of its abilty to identify a price level that a correction may reach before it is able to reverse and continue in the direction of the original trend.

Reversal
A sudden change in the price direction of a stock, index, commodity, or derivative security.
Also referred to as a "trend reversal", "rally" or "correction".
A reversal can be a positive or negative change against the prevailing trend. Technical analysts watch for these patterns because they can indicate the need for a different trading strategy on the same security.
For example, if a technical analyst holds stock ABC and notices a reversal pattern, he or she may want to consider closing his/her existing long position and assuming a short position to capitalize on the potential downward movement of the stock's price.


Rollover
Refers to a process of reinvesting in which, at the expiry, the settlement is postponed until a later date. The cost of the process is measured by the interest rate differential between the two currencies.

Scalping
A trading strategy that attempts to make many profits on small price changes. Traders who implement this strategy will place anywhere from 10 to a couple hundred trades in a single day in the belief that small moves in prices are easier to catch than large ones.

Stochastic Oscillator
A technical momentum indicator that compares a security's closing price to its price range over a given time period. The oscillator's sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result. This indicator is calculated with the following formula:

%K = 100[(C - L14)/(H14 - L14)]
C = the most recent closing price
L14 = the low of the 14 previous trading sessions
H14 = the highest price traded during the same 14-day period.

%D = 3-period moving average of %K

The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. Transaction signals occur when the %K crosses through a three-period moving average called the "%D".

StochRSI
An indicator used in technical analysis that ranges between zero and one and is created by applying the Stochastic Oscillator formula to a set of Relative Strength Index (RSI) values rather than standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold - a measure that becomes specifically useful when the RSI value is confined between its signal levels of 20 and 80.
The StochRSI is deemed to be oversold when the value drops below 0.20, meaning the RSI value is trading at the lower end of its predefined range, and that the short-term direction of underlying security may be nearing a correction. Conversely, a reading above 0.80 suggests the RSI may be reaching extreme levels and could be used to signal a pullback in the underlying security.

Stop Order (Stop-Loss Order)
An order used to hedge against excessive loss in which a position is liquidated at a specific, prearranged price.

Support
A price level at which there is sufficient demand to turn a downtrend up.

Take-Profit Order (T/P)
An order used by currency traders specifying the exact rate or number of pips from the current price point where to close out their current position for a profit. The rate deemed to be the level where the trader wants to take a profit is sometimes referred to as the "take-profit point".
As the name suggests, take-profit orders are used to lock in profits in the event the rate moves in a favorable direction. For example, if you are long a currency pair position and believe the price will rise to a certain level, but are unsure what it will do beyond that level, placing a take-profit order at that point will automatically close out your position allowing you to lock in profit. Example: Buy $100 worth of yen at 107.4 yen per dollar = 100*107.40 = 10,740 yen
Place a take-profit order at 108.80. Price then rises from 107.40 to 108.80 Take-profit order automatically executed to sell $100 and buy 10,880 yen
Profit of 140 yen realized.

Technical Analysis
A technique used to try and predict future movements of a security, commodity or currency, based solely on past price movements and volume levels. It examines charts and historical performance.

Technical Correction
A decrease in the market price of an asset or entire market after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level.
A technical correction is a drop in stock or market prices when there is no fundamental reason for a decrease. After a steady increase in value, investors may become more cautious buyers at the higher prices and look to reevaluate the market, resulting in a decrease in purchases. The drop in purchase volume will stop the upward price trend from continuing while the market re-evaluates the short-term direction.


Trendline
A line on the price or value chart of a security depicting the general direction in which the security is headed. This chart shows an example of an upward trendline:
Many people believe that prevailing trends, either up or down, will determine where a security is headed. Trendlines can be used to analyze individual securities, such as stocks, commodities or indexes, among other things.

Volatility
Refers to the tendency of prices/variables to fluctuate over time. It is most commonly measured using the coefficient of variation (the standard deviation divided by the mean). The higher the volatility, the higher the risk involved.

Whipsaw
Term used to describe sharp price movements and reversals in the market. A whipsaw would be if shortly after you bought a stock the price plummeted

Most traders lose because they did not learn to contol their ego. The maket is always right until it is not. Then we move on to Fear & Greed.

How can you learn to trade if you fear that you will lose your money ? How can you take profits if you want to make more and more ?

How can you control your risk so that you can keep trading ?

If you want the answer to these questions then ask me and I will share my trading experience with you. I have been trading forex for almost 10 years now.

Enjoy your Labour Day if you reside in North America.

http://davidstockmanscontracorner.co...+Saturday+9+AM

Snippet:

The destruction of honest financial markets by the Fed and other central banks has created a class of hedge fund hot shots that are truly hard to take. Many of them have been riding the bubble ever since Alan Greenspan got it going after the crash of 1987 and now not only claim to be investment geniuses, but also get downright huffy if the Fed or anyone else threatens to roil the casino.

Leon Cooperman, who is an ex-Goldman trader and now proprietor of a giant fund called Omega Advisors, is one of the more insufferable blowhards among these billionaire bubble riders. Earlier this week he proved that in spades.

It seems that his fund had a thundering loss of more than 10% in August during a downdraft in the stock market that the Fed for once took no action to counter. But rather than accept responsibility for the fact that his portfolio of momo stocks took a dive during a wobbly tape, Cooperman put out a screed blaming the purportedly unfair tactics of other casino gamblers:

Lee Cooperman, the founder of Omega Advisors, has joined the growing chorus of investors blaming last week’s stock market sell-off — and his own poor performance in August — on esoteric but increasingly influential trading strategies pioneered by hedge funds like Bridgewater.
Well now. Exactly how was Bridgewater counting the cards so as to cause such a ruction at the gaming tables?

In a word, Ray Dalio, the storied founder of the giant Bridgewater “All-Weather” risk parity fund, has been doing the same thing as Cooperman, and for nearly as many decades. Namely, counting the cards held-out in plain public view by the foolish monetary central planners domiciled in the Eccles Building.
To be sure, Dalio’s fund has had superlative returns and there is undoubtedly some serious algorithmic magic embedded in Bridgewater’s computers. But at the end of the day its all a function of broken capital markets that have been usurped and rigged by the Fed.

http://globaleconomicanalysis.blogsp...nd+Analysis%29

A Gallup poll conducted in May and June but just released today shows Majority of Greeks Say Adopting Euro Has Harmed Country
As the Greek debt crisis came to a head again earlier this summer, it's no surprise that leaders in more solvent eurozone countries expressed doubts about Greece's participation in the monetary union -- but these doubts are also widespread among Greeks themselves. A majority of adults in the country -- 55% -- said in a poll conducted May 14-June 16 that they think converting from the Greek drachma to the euro in 2001 has harmed Greece, while one-third (34%) said the common currency has benefited the country.
Euro Question

In general, do you think changing this country's currency to the euro has benefited or harmed Greece?
image: http://3.bp.blogspot.com/-AgDiZV1dfKQ/Ve2lUZy7W0I/AAAAAAAAfSI/SCdPZeOkjek/s400/Greece%2BEuro%2BPoll.png
http://3.bp.blogspot.com/-AgDiZV1dfK...uro%2BPoll.png
Read more at http://globaleconomicanalysis.blogsp...rApOdzeAsTx.99

http://globaleconomicanalysis.blogsp...uble-down.html

Snippet:
That's quite a collection of clowns all in one place. All they lack is ample makeup. If those hypocrites actually believed what they stated, QE would go out the window in a second.

ECB president Mario Draghi is the top clown at the moment. He hopes to drive the euro lower to increase inflation. His method of choice is QE rather than a peg or fixed rate of exchange.

For some reason QE is an acceptable means to drive a currency lower, but China's peg is not. The irony is the yuan might plunge if China floated it as the G20 and US treasury wants.

Mike "Mish" Shedlock
Read more at http://globaleconomicanalysis.blogsp...OSbqxvCsQVe.99

The purpose of these articles with links is to show the difference between PERCEPTION and REALITY !!!

When you know the truth then you can be aware of how the game is played and then enter on the winning side.

You still need to understand Support and Resistance. You still need to use Technicals. You still need to develop your discipline.

You need to invest your time and effort to learn how to trade properly. Any questions ?

http://globaleconomicanalysis.blogsp...lds-where.html

Snippet:
As of yesterday, the effective federal funds rate was a mere 8 basis points. Since April, it has been swinging from a low of 6-8 basis points to a high of 14-15 basis points.

I suspect the odds of a hike are close to 50-50.

The CME Fed Watch has the hike odds at 27% as of September 2. However, the CME does not consider a move to 0.25% a hike.

I do, because it clearly is.

The current Fed stance is 0.00% to 0.25%. With the effective Fed Funds rate hovering between 8 and 15 basis points, a move to a firm 0.25% would be about an eighth of a point hike.

Why nearly everyone expects a quarter point hike is a pure mystery to me.

If the Fed delays until December, we may see such a move (if the economy stays reasonably firm), but even then, I believe the Fed will baby-step this in a Market May I approach, quite similar to the childhood "Mother May I" game.

Yellen vs. Greenspan

 

1. Recall Greenspan's famous statement: Hikes will be at a "pace that's likely to be measured".
2. The Yellen expected "pace" is half as often.
3. The Yellen expected "measure" is half as much.

Read more at http://globaleconomicanalysis.blogsp...osshhWFtqYH.99

http://www.zerohedge.com/news/2015-0...y-your-problem

Snippet:
There is no better way to describe the international monetary system today than through the statement made in 1971 by U.S. Treasury Secretary, John Connally. He said to his counterparts during a Rome G-10 meeting in November 1971, shortly after the Nixon administration ended the dollar’s convertibility into gold and shifted the international monetary system into a global floating exchange rate regime that, "The dollar is our currency, but your problem.” This remains the U.S. policy towards the international community even today. On several occasions both the past and present chairpersons of the Fed, Ben Bernanke and Janet Yellen, have indicated it still is the U.S. policy as it concerns the dollar.

Is China saying to the world, but more particularly to the U.S., “The yuan is our currency but your problem”? China’s move to weaken the Yuan against the US dollar is in fact a huge response to America’s resistance to reforming the international monetary framework. It’s telling American policy makers that the longer they delay acting on reforming the international monetary system, the harder and longer they are going to make it for the U.S. to climb out of their trade deficit and depreciate their currency to where they need it to be.

China has been preparing for this moment for several years by accumulating gold through its central bank but also by using banks/corporations and individuals. It has in recent years signed several international agreements to bypass the US dollar in international trade and use preferably the Yuan. It has created an alternative World Bank (Asian Infrastructure Investment Bank) and a gold fund to invest in gold mining for more than 60 countries. The project is being overseen by the Shanghai Gold Exchange (SGE) and it is likely that the newly mined gold will be either traded on the SGE or be sold directly to the PBoC and other central banks. It has also bought a large amount of gold and kept the exact amount as secret as possible.

The international monetary system is in crisis and ready to collapse. It has been since at least 1971 but it seems we are very close to the end (within five years). The International Monetary Fund (IMF) is working discreetly to have the Special Drawing Rights (SDR) replace the US dollar as the international standard. Since the delinking of the dollar from gold in 1971, the US dollar has been the de facto international standard. The IMF itself makes no bones about its ambition to establish the SDR as the global reserve currency.

In a 2009 essay, Governor Xiaochuan of the People’s Bank of China (the Chinese central bank) also called for a new worldwide reserve currency system. He explained that the interests of the U.S. and those of other countries should be “aligned”, which is not the case in the current dollar system. Xiaochuan suggested developing SDRs into a “super-sovereign reserve currency disconnected from individual nations and able to remain stable in the long run”. What does he mean by “disconnected from individual nations”? The present SDR is a mathematical formula of the price of its composing currencies of “individual countries” with no backing whatsoever. Does he imply some kind of link to gold? That would explain many other statements in favor of gold by China’s officials and their aggressive encouragement of Chinese institutions and individuals to buy gold.

I am going to open a demo account with starting capital of $50,000 US and show how to make 10% ROI by September 30, 2015. Check back daily and I will explain all my trades as I do them and daily I will print out the report. Please do Not do any trades that I do since at times I may close my trades if new facts become known.

Good Evening Forex Traders

Forex Factory moved my thread to the Trading Journal section which is fine. I will start my Journal regularly on Sunday night as we prepare for the FED to do nothing because they are all out of options although it is still possible to save face they might raise once during 2015 and then next in 2017.
The Dow is coming down to 15,000 soon and money will not flow into bonds. Deflation and Debt and China and all that will soon be there for more to see and then Frank will sing "The End Is Near" The Final Curtain Will Be Raised and the FED will be naked except for Janet who will be wearing a red dress and saying ALL is Well. :-)

Combined Account Statement
Statement Period:from Sep 10, 2015 8:47:36 AM through Sep 10, 2015 8:53:13 AM
User Name:Benjamin Israel


FXCMUK
Benjamin Israel
Canada

Trade account#:02928374 Created at:Sep 10, 2015 8:47:36 AM Status:Active Base currency:USD
CLOSED TRADE LIST

Ticket # Symbol Volume Date Sold Bought Gross P/L Comm Dividends Rollover Adj Net P/L Condition Created By
No data found for the statement period
OUTSTANDING ORDERS
Order # Expire Date Type Ticket Symbol Volume Date B/S Price Peg Offset Market Price Created By
No data found for the statement period
OPEN/FLOATING POSITIONS
Ticket # Symbol Volume Date Sold Bought Floating P/L Comm Dividends Rollover Net P/L Condition Created By
No data found for the statement period
ACCOUNT ACTIVITY
Time Posted Code Description Account # Ticket # Amount Balance
9/10/15 8:47 AM Depos Deposit 02928374 50,000.00 50,000.00
Total: 50,000.00

ACCOUNT SUMMARY
Beginning Balance 0.00
Comm Trading Commission 0.00
Rollover Rollover Fee 0.00
PnL Profit/Loss of Trade 0.00
Depos Deposit 50,000.00
Withd Withdrawal 0.00
Option Options Payout 0.00
Comm Options Commission 0.00
AdminFee Administrative Fee 0.00
MngFee Management Fee 0.00
PerfFee Performance Fee 0.00

Good Morning Everyone

I have started my Demo Account and it has an opening balance of $50,000.00 US

The reason 95% of all forex traders lose trading forex is because of the way that they train themselves or are taught by others. This method works since it removes two of the three elements required to be a forex trader in the 5% winning category.

The two elements are FEAR and GREED.

You cannot lose any money trading with a $50,000 US funds Demo account so enjoy the ride and do not develop bad habits.

I will have the balance in this demo account up by 10% by the end of September. That would be very good since few can show a ROI of 10% a month.

I never trade more than 20% of my total capital so the most positions that are on at one time is 10 positions. Now I did not say that all twenty would be on at one time. Each trade plan cannot have a loss of more than 5% so the maximum loss of capital on any one trade plan is $2500.00.

Using this method you can never have a margin call as even with 20 positions open or $10,000 US of the $50,000 US the maximum capital loss is 20%

I welcome questions at anytime as I trade currencies for my corporation and this is the method that I have use over the last almost 10 years to achieve my trading goals of a minimum of 10% ROI (Return On Investment)

Have a good trading day.


Benjamin

Good Morning Again

I just went long 3 contracts of XAU/USD and the total capital used is $1950.00 US and I control 300 ounces of Gold at an average cost of $ 1113.61

The maximum loss per position is set at $1000.00 US so my maximum loss can only be $3000.00 US or 6% of my Trade Plan. Any questions ? That will be my only trades for the moment and I will set a limit out of $1000.00 profit a contract right now.


Benjamin

so u trade based on fundamentals?

My EDGE is using Fundamentals which for myself includes MONEY FLOW and I do use Technicals for entry and exit points. However the most Important part of my forex stategy is my Risk Management Plan.

can't wait to see more..write more about the money flow and how it moves from one currency to another when fundamentals shift or whatever u think it's more important...i have also started reading into macroeconomics but for the moment untill i understand them better i use only technicals for my trading...i also have one question when does big trend happend it's because the central banks right?

Good Morning

I will explain about MONEY FLOW this morning for anyone who is interested in getting an EDGE trading Forex. Let us go forward to next week and the day of the FED announcement.
The FED will either raise rates or hold off until the December meeting. Let us say that they will not raise rates. The markets have priced in a increase in the FED funds rate.

If the FED stays on HOLD here is how the MONEY FLOW will evolve as it relates to EUR/USD and Gold which I have now long 3 positions.

Since EUR/USD makes up 57.6 of the US Dollar Index of Forex currencies then when the US Dollar goes down the Euro will go up and Gold will go up.

I now know which way the Money will flow if that event I suggested occurs. Let us say that the FED raises rates then it will probably be the same Money Flow result. "Buy The Rumor, Sell The News"