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 Trading Forex online is interesting and can be profitable for traders who take risks seriously. Trading Forex has in recent years become easier as the software used to trade with has been in a development. The software has become more user-friendly and traders have access to advanced trading tools.
Even with the development trading is still risky and the traders have to stick to their trading strategy. In this article I will give examples of how to set an exit point in a trade.
Exit point. It is the point where the trader will closes the trade. An exit point is the same as a stop/loss ... more →
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 Hedge Against Exchange Rate Risk With Currency ETFs
June 17 2012| Filed Under » ETFs, Forex, Short Selling
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Investments in overseas instruments, such as stocks and bonds, can generate substantial returns and provide a greater degree of portfolio diversification, but they introduce an added risk, that of exchange rates. Since foreign exchange rates can have a significant impact on portfolio returns, investors should consider hedging this risk where appropriate. While hedging instruments such as currency ... more →
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 Usually leverage quotes a ratio that is 100:1.
It means that you can trade with 100 units by just investing one unit. By just investing 1,000 USD you can trade up to 100,000 USD.
Margin is quite same as leverage, but a viewpoint is little different. Margin is usually quoted as a percentage that is 10%.
Borrowed money trading is leverage. Brokers on the foreign exchange provides greater leverage than the brokers in the equities and future market that makes Forex more tempting and interesting than other kinds of traders. It is important to understand that the leverage is not without ... more →
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 Not so long ago most people wouldn't even think about how they're going to get the best exchange rate when they want to buy another currency, but nowadays things are a lot different since the majority of people are starting to be a lot more careful in relation to money. If you're about to buy another currency soon, then we recommend that you follow the tips below to make sure that you get the best exchange rate possible:
Avoid airports/hotels etc.: If you're going away for a break to another country you might be tempted to change your currency either at the airport or at the hotel that ... more →
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 The European Central Bank is already under pressure to lower interest rates in the wake of a growing crisis in the Eurozone and the prospect of a global slowdown which could exacerbate what is already a difficult situation. Now the International Monetary Fund has added it voice to the chorus, with Managing Director Christine Lagarde recently suggesting that the ECB had “room” to provide further accommodations to stimulate growth. In a recent interview in Sweden, Ms. Lagarde specifically mentioned the ECB’s two accommodative options; namely, the LTRO and interest rate policy.
Despite ... more →
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 Earlier today, much as expected by markets and analysts alike, the Reserve Bank of Australia lowered its benchmark interest rate to 3.50% from 3.75% with effect from tomorrow. According to the statement which accompanied the decision, the RBA’s Governing Board is of a mind that the Eurozone crisis remains a likely source of adverse shocks, and future prospects there have been diminished by various factors including heightened political uncertainty, weakened growth, and concerns of fiscal sustainability and banking sector strength. With the inflation outlook permitting, and given the central ... more →
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 Have you ever asked yourself what makes other professional day traders achieve success and money? Don't you wish you were amongst them?
Well, the answer is - they follow a very strict trading plan that have yielded them a set of rules and trading strategies to minimize their trading losses and maximize their trading profits or gains.
In this article, I will go over the top five rules that all successful day traders adhere to. You will gain some insight on the importance of consistency, trading mindset and body (which I call day trading fitness), trading plan and strategies have on ... more →
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 US indices and EU Indices bounced back after reporting of possible rescue plan for Spain by the IMF.
ECB President Mario Draghi calls for EU leaders to unify and set clear goals for the EUR currency. In addition to this a Poll made in Greece, showed voters supporting to stay in the EU.
News of Facebook (FB) entering the mobile technology, support Zynga (ZNGA) stocks today as anticipation for Zynga new game slate and expanding with Facebook to mobile technology.
Despite Google (GOOG) unveiled major changes to its shopping business the stock declined 1.14%
Don’t understand the ... more →
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 Mixed data from the Eurozone is giving a boost to European equities and giving rise to investor hopes that the European Central Bank will decide to provide additional easing when they meet next week. German data points led off the day with May retail sales beating expectations on a month-over-month basis, coming in at 0.6% against expectations of a decline to 0.0% from April’s 1.6% (which was upwardly revised from 0.8%). On a year-over-year basis, retail sales contracted to -3.8%, well below expectations of 0.2%. To some extent, labor data beat analysts’ expectations; the unemployment ... more →
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 According to China’s official news source, the government has no plans to introduce large scale stimulus measures that could counter the current economic slowdown. Given Premier Wen Jiabao’s comments of last week, suggesting that the focus on growth should be greater, markets had been hopeful that Beijing would deploy measures at least equivalent (i.e. $630 billion worth) to those measures rolled out three years ago at the height of the global crisis. Analysts point out that given April’s industrial production figures that fell short of expectations, GDP data is also likely to show that ... more →
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 In Japan, it was reported late yesterday that overall household spending as seasonally adjusted fell in April on a year-over-year basis to 2.6% from 3.4%, but the data was better than forecasters’ calls for a drop to 2.4%. At the same time, the Ministry of Economy, Trade and Industry reported that retail sales rose in April by 5.8% on a year-over-year basis, just off the consensus forecast of a rise to 6.3%. Sales at large retailers was slightly worse than forecast in April falling to negative -0.5% from 5.1%, against expectations of a decline to -0.3%.
Separately, the Internal Affairs ... more →
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 Oil prices tracked higher for the 3rd consecutive trading session, finding support from a weaker U.S. Dollar and an encouraging opinion poll from Greece which buoyed hopes that the country would not be compelled to withdraw from the Eurozone area and thus dampen demand. One analyst said that Greece continues to be the oil markets’ primary driver and news that suggests a more conservative stance regarding the austerity measures and bailout loans are helping the rally. Other factors that the markets perceive as positive include the move toward the creation of a joint Euro-bond of some sorts, ... more →
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 Over the weekend, the results of a recently conducted Greek poll suggested that the pro-bailout contingent may be down but not out and helped to keep market hopes alive that Greece won’t be forced out of the Eurozone. That news helped to bolster risk on sentiment which in turn helped to prop up commodities and their linked currencies. In early Asian trade, gold prices inched higher, trading up 0.1% or $1,581.29 per ounce, working toward recouping some of last week’s price drop of 1.4%. Nonetheless, commodity analysts don’t expect to see too much volatility in prices during the upcoming ... more →
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 So far, Europe’s equity markets are enjoying another up day, following a string of declines as investors brace themselves for what is likely to be Greece’s withdrawal from the Eurozone. What is providing some buoyancy is growing speculation that the new measures will soon be put in place by the European Central Bank. According to a recently issued research note from French bank Credit Agricole, and a similar analysis by Bordier & Cie, a Swiss bank, analysts expect that the ECB will announce additional measures at the June 6th meeting which will likely include another LTRO. Likewise, ... more →
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 Oil prices could be set to post their fourth consecutive weekly loss despite increasing tensions in the Middle East which could disrupt supplies; analysts say that if realized, that would be the longest losing streak in more than two years. On the whole, it would appear that investor worries over a slowdown in the global economies are having a greater impact on prices than supply concerns. Oil analysts believe that the situation in Iran will likely result in a premium being priced in, much as the recent steep drop was seen as the outcome of markets pricing in a Greek exit.
Over the past ... more →
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 I have been on eToro for quite a while now and I find the idea of social trading fascinating! Imagine being able to peek into the minds of the best traders of our community. Now that is power, if only we could know who the best traders actually are.
In my opinion, now is the perfect time to evaluate who the best traders amongst us are. This is because of the erratic movements of the markets during European crisis. What you want to know are 3 things:
1. Does the guru use both fundamental and technical analysis? Look at his profit and loss chart. Markets have not been obeying pure ... more →
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 Large numbers of traders today use RSI, the relative strength index to trade currencies on the foreign exchange market. Many however, have not learned what is called the New RSI. Learn Forex RSI correctly and you will add a powerful arsenal to your trading method.
First, what is the Old RSI (Relative Strength Index) and as first devised by Welles Wilder when he created the relative strength index over 30 years ago? It was a momentum indicator. Why is momentum important? Imagine if when you entered a trade the momentum was immediately behind you leaving a trail of price bars in your ... more →
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 After a very strong US session yesterday, risk assets stalled their gains overnight as Asian and European traders attempted to digest what had transpired domestically. The EUR/USD held firm around 1.2788 throughout the Asian session and actually even started to pick up towards the European open. It sounds like there was a lot of hope about Eurobonds being brought to the table (again), but honestly, we have gone down this road time and time again. Fool me once, shame on me; fool me twice, shame on you; fool me a third time, who even knows. European politicians have thrown around the Eurobond ... more →
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 We are planning to expand our online trading offering by adding stocks of publically traded companies!
During the last months, we have conducted a survey among our loyal users and we want to thank everyone who participated.
Following are the results of the survey, which were very conclusive:
* 91% of all respondents said they would be interested in purchasing stocks with eToro
* Even without the ability to day-trade, 75% would still be interested
* 76% said that they would buy Facebook shares
Read all about Forex news, stock market analysis and special trading ... more →
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 After the first (nearly) full day of Facebook stock trading, it may have only been $0.23 higher at the closing bell, but at least it didn’t close down. With all the hoopla and build up ahead of Facebook’s IPO launch last Friday, there was a great deal of anticipation and hope that Facebook’s attraction as the world’s largest social network would be enough to propel the shares higher with a huge – 20%, 30% or 50% – pop. It initially surged about 10% and then fell back to its opening price, where it pretty much stayed throughout the day.
The first day of Facebook trading did not ... more →
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