Fx-Megaforex

In

 order to be a good trader you need to have certain attributes, check out if you are in this group:

Attributes of a Good Trader

• Is properly capitalized - enough money to trade and survive.
• Treats Trading as a Business.
• Has a low tolerance for risk.
• Trades only when the market provides an opportunity.
• Can control your emotions.
• Has a Trading Plan.
• Has a risk management plan.
• Is incredibly disciplined.
• Is focused.
• Has back tested his trading methodology.

Attributes to fail as a Trader

• Is undercapitalized.
• Lacks discipline.
• Overtrades.
• Does not understand the markets.
• Rushes into trades.
• Chases the market.
• Is afraid of missing a move.
• Is stubborn and marries a position or idea.
• Misinterprets the market news.
• Is always looking for home runs.
• Lets losers get too big.
• Takes winners prematurely.
• Takes trading too lightly.
• Takes large risks.
• Has little control of his emotions.

So before you start ask yourself this questions and see if you qualify to trade in Forex. Also remember everyone can make the right adjustments to become a good trader, so keep up and never give up. To open you demo account and start practice click here.

Everyone knows that when you trade in Forex you need to take a closer look to fundamentals factors that affect currencies values. Here is a closer look to this fundamentals factors:

1. Gross Domestic Product (GDP) GDP is considered the broadest measure of a country's economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures: the advance report and the preliminary report. Significant revisions between these reports can cause considerable volatility. The GDP is somewhat analogous to the gross profit margin of a publicly traded company in that they are both measures of internal growth.
2. Retail Sales The retail-sales report measures the total receipts of all retail stores in a given country. This measurement is derived from a diverse sample of retail stores throughout a nation. The report is particularly useful because it is a timely indicator of broad consumer spending patterns that is adjusted for seasonal variables. It can be used to predict the performance of more important lagging indicators, and to assess the immediate direction of an economy. Revisions to advanced reports of retail sales can cause significant volatility. The retail sales report can be compared to the sales activity of a publicly traded company.
3. Industrial Production This report shows the change in the production of factories, mines and utilities within a nation. It also reports their 'capacity utilizations', the degree to which the capacity of each of these factories is being used. It is ideal for a nation to see an increase of production while being at its maximum or near maximum capacity utilization.Traders using this indicator are usually concerned with utility production, which can be extremely volatile since the utilities industry, and in turn the trading of and demand for energy, is heavily affected by changes in weather. Significant revisions between reports can be caused by weather changes, which in turn, can cause volatility in the nation's currency.
4. Consumer Price Index (CPI) The CPI is a measure of the change in the prices of consumer goods across over 200 different categories. This report, when compared to a nation's exports, can be used to see if a country is making or losing money on its products and services. Be careful, however, to monitor the exports - it is a focus that is popular with many traders because the prices of exports often change relative to a currency's strength or weakness.Some of the other major indicators include the purchasing managers index (PMI), producer price index (PPI), durable goods report, employment cost index (ECI), and housing starts. And don't forget the many privately issued reports, the most famous of which is the Michigan Consumer Confidence Survey. All of these provide a valuable resource to traders, if used properly.

So, How Are These Used?

Since economic indicators gauge a country's economic state, changes in the conditions reported will therefore directly affect the price and volume of a country's currency. It is important to keep in mind, however, that the indicators discussed above are not the only things that affect a currency's price. There are third-party reports, technical factors, and many other things that also can drastically affect a currency's valuation.

Here are a few useful tips that may help you when conducting fundamental analysis in the foreign exchange market:

Keep an economic calendar on hand that lists the indicators and when they are due to be released. Also, keep an eye on the future; often markets will move in anticipation of a certain indicator or report due to be released at a later time.

Be informed about the economic indicators that are capturing most of the market's attention at any given time. Such indicators are catalysts for the largest price and volume movements. For example, when the U.S. dollar is weak, inflation is often one of the most watched indicators.

Know the market expectations for the data, and then pay attention to whether or not the expectations are met. That is far more important than the data itself. Occasionally, there is a drastic difference between the expectations and actual results and, if there is, be aware of the possible justifications for this difference.

Don't react too quickly to the news. Oftentimes, numbers are released and then revised, and things can change quickly. Pay attention to these revisions, as they may be a useful tool for seeing the trends and reacting more accurately to future reports.

Conclusion

There are many economic indicators, and even more private reports that can be used to evaluate the fundamentals of forex. It's important to take the time to not only look at the numbers, but also understand what they mean and how they affect a nation's economy. When properly used, these indicators can be an invaluable resource for any currency trader.

Now that we are finishing 2009 I look back and see what were my biggest mistakes this year.

One of my biggest mistakes was that I was holding my positions in the US dollar to long. I should had analyze the market better and see that the US Federal Reserve was implementing quantitative easing and the US Treasury was printing money to pay for the massive stimulus plan.

Another mistake was that I ignore the trend, you need to analyze the trend for 1 or 3 month in order to keep yourself in the right track. I also get out of position too early because I was afraid when I see my positions getting against me. But this mistakes and so much more that I did gave me great lessons.

Some of the lessons I learned are:

• It’s essential to keep your position size according to you account equity and risk taking profile.

• Being early can be just as bad as being late

• If you are sure you are right, you are probably wrong; do not ignore trend indicators.

• Use a filter such as a 1 or 3 month moving average in order to keep yourself on the right side of the trend for a longer period of time.

• You need to pay attention to your charts.

• Determine if you are a long or short term trader so you don´t get out of position to early or to late.

• Never put yourself in a position where you can compromise much of the equity in a short time.

• Trace a plan and stick to it. You should be prepared for the worst case scenario and trace your exit and stick to it.

I hope my experience will help you trade better in 2010. Good luck everyone and have a wonderful 2010! Happy new year!!!

Hi if you are new to Forex you are maybe a little confuse on how to start, so here are some great tips to get start it.

1. Choose a broker: The first step is to pick a market maker with which to trade. Some are larger than others, some have tighter spreads and others offer additional bells and whistles. Each market maker has its own advantages and disadvantages.
2. Open a demo account: Now that you chose your broker open a demo account so you can test the platforms and there service. Be sure to practice your strategies before you put real money.
3. Do you research: When you trade you need to justify your trades so be sure you research your analysis by reading books, magazines and newspapers. There are many ways to learn the basics of Forex and to learn about Economic events be sure you do your research before you trade.
4. Education: As you will learn Forex can be easily done if you do your part. before you trade with real money take a Forex course to learn the basics, join forums where you can exchange your opinions with other traders and learn from them. Make sure you keep learning every day.
5. Trading Systems and Signals: When you are new to Forex you will really need all the help you can get, so be sure you enroll in a good package of signals and trading systems. Many traders wonder whether it is worthwhile to buy into a system or a signal package. System and signals fall into three general categories depending on their methodology: trend, range or fundamental. And yes they are worthwhile.
6. Trading Setups: When you trade be sure to combine technical and fundamental analysis. be sure you keep up with big economic news that can change the market trend. But remember every trader is different so you need to know which system works best for you.

Trading in Forex is like any other business so be consistent and serious when you trade. The best way to lose money is to trade with your emotions, so take it like you will take any other business. Good luck!

Sometimes the best trade is no trade at all

There are many differences between new traders and professional traders.

But many of them have little to do with their expertise of the markets and more to do with their own actions. The problem is that new traders feel they have to be in a trade all the time to be successful. But in reality it is the other way around. Professional traders do not mind waiting for the quality setups. As a matter of fact, this is one of their edges. They do not trade for the fun or for the excitement, but rather they trade to win. Having the patience to just sit and watch and not trade is an easy thing to describe, but very hard to do. It can be very frustrating watching the market move without being in a trade. This frustration can lead to questionable setups being taken in an attempt to be in on every move. But entering into or exiting from a trade because of impatience is never the right reason for your action. Having the patience and discipline to wait for the quality setup is the mark of a confident trader. They realize that sometimes the best trade is no trade at all.