Forex - Dollar gains on Bernanke comments, output data, G20 language

The dollar rose against most major currencies on Friday after Federal Reserve Chairman Ben Bernanke said that despite high unemployment rates, the U.S. economy was improving.

Talk a G20 summit won't end with warnings for member nations not to devalue their currencies pushed the greenback as did soft industrial production figures.

In U.S. trading on Friday, EUR/USD was down 0.06% at 1.3356.

A G20 summit is underway in Moscow, and talk that the final draft of the meeting will not involve accusations of devaluations taking place in Japan and in other countries where currencies have been weakening fueled dollar demand.

The yen rose on recent fears Japan may be accused of tinkering with its exchange rate to weaken it, though talk that G20 ministers remain comfortable with exchange rates today allowed the yen to continue its slide, which sent the dollar gaining.

The dollar also saw demand after Federal Reserve Chairman Ben Bernanke told G20 finance ministers and central bankers earlier that while unemployment rates remain high in the U.S., the economy is improving.

The news sent the greenback rising on sentiment the Fed may be closer to considering winding down its USD85 billion monthly bond-buying program, a monetary stimulus tool that weakens the dollar to spur recovery and job demand.

Soft activity in U.S. mines, utilities and factories fueled dollar demand as well.

Official data showed that U.S. industrial production slipped 0.1% in January, missing expectations for a 0.2% rise after a 0.4% increase the previous month.

Elsewhere in the U.S., economic indicators came in solid.
In a preliminary report, the University of Michigan said that its index of consumer sentiment rose to 76.3 in February from 73.8 the previous month, well above expectations for a rise to 74.8. 

Meanwhile, the Federal Reserve Bank of New York reported that its index of manufacturing activity beat expectations in February, rising to 10.0 from a reading of -7.8 the previous month. 

Analysts had expected the index to improve to -2 this month.

The greenback, meanwhile, was down against the pound, with GBP/USDtrading up 0.13% at 1.5512.

The dollar firmed against the yen, with USD/JPY trading up 0.57% at 93.40 and rose against the Swiss franc, with USD/CHF trading up 0.12% at 0.9223.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.61% at 1.0071, AUD/USD down 0.63% at 1.0295 and NZD/USD trading down 0.76% at 0.8446.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12% at 80.57.

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U.S. stocks end flat on soft industrial production data; Dow gains 0.06%

U.S. stocks finished Friday flat to lower after poor industrial production figures washed out appetite for equities and sent investors chasing dollar positions and other safe-haven assets.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.06%, the S&P 500 index ended down 0.10%, while the Nasdaq Composite index fell 0.21%.

Official data showed that U.S. industrial production slipped 0.1% in January, missing expectations for a 0.2% rise after a 0.4% increase the previous month.

Elsewhere in the U.S., economic indicators came in solid, though the weak industrial production figures coming from the country's mines, factories and utilities weighed on sentiments.

In a preliminary report, the University of Michigan said that its index of consumer sentiment rose to 76.3 in February from 73.8 the previous month, well above expectations for a rise to 74.8. 

Meanwhile, the Federal Reserve Bank of New York reported that its index of manufacturing activity beat expectations in February, rising to 10.0 from a reading of -7.8 the previous month. 

Analysts had expected the index to improve to -2 this month.

Meanwhile, a G20 meeting is underway in Moscow, and market talk that policymakers won't voice major concern about a sliding yen and other currencies fueled dollar demand as well, giving investors another reason to hang out in the safe an liquid greenback until better news hits stock markets another day.

Leading Dow Jones Industrial Average performers included Coca-Cola, up 1.57%, Walt Disney, up 1.31%, and United Technologies, up 1.18%.

The Dow Jones Industrial Average's worst performers included Wal-Mart Stores, down 2.15%, Hewlett-Packard, down 1.35%, and American Express, down 1.07%.

European indices, meanwhile, finished largely lower.

After the close of European trade, the EURO STOXX 50 fell 0.76%, France's CAC 40 fell 0.25%, while Germany's DAX 30 finished down 0.49%. Meanwhile, in the U.K. the FTSE 100 finished up 0.01%.

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Forex Beginners 'Must-Do'

It is believed that more than 50% of traders are losing money long term in the foreign currency exchange market. Yet there are still many jump in the forex market, trade blindly and lost their money. Trade after trade, its surprising to see that "normally" losers "keep traders betting (not to invest!) Their money in Forex market without consideration of their negotiating strategy. Immaterial that you experienced or beginners, there are some "must do" the negotiation Forex to manage risks effectively and increase your chances of making profits.

'Must-Do 1': Invest in your brain first

If you are serious about investing in the Forex market, setting up your skills and knowledge is the first step you should take. Seminars, workshops, video tutorials, learning online, or even books are rare to help us learn from the professional.

Learn how to implement technology in your business cards, learn the use of indicators to determine the right time to enter / exit the market; refresh your experience in trading with a demonstration ... all these are effective in ensuring your good start and it will certainly reduce your chances of losing money. (Recommended Forex Trading Course here.)


'Must-Do 2': Getting the right trading system

It is wise to research very well and consider all the various brokers at your disposal system before making your choice. By applying some level of automation (such as automatic mapping and make trade), negotiation, a well-designed trading system will reduce your work dramatically. This in turn, give you more time to focus on studying the market and your strategy for tracing. Moreover, the use of auto-trading system do you avoid emotional-trades. (Review recommended Forex trading FX tool dashboard here.)

'Must-Do 3': Have a trading plan

As the former said: "No to plan plan to fail." The trade environment is like sailing in the sea, you will not go anywhere without a compass and navigator.

What is the purpose of retail trades? How many benefits to be expected in commerce? When to get on the market? How to invest? What is the price to leave the market? If things do not work, to execute when the stop loss order? What is the risk affordable? A good business plan should at least meets the above questions. Besides, if your plan fails negotiation, review and modify your business plan. To find out your mistakes and learn from them.

"Must-Do 4": money management

The money management is to control your risk through the use of protective stops, while balancing your profit potential of your potential loss. For example, good money management, you know that your profit goal and chances to be good or bad, and monitor your risk protection stops. You are better with a trade where you could lose $ 1000 if you make a mistake and $ 500 if you're right, this work eight times out of ten, but to take a business where you would be $ 1000 if you're right and lose only $ 500 if you make a mistake, but works only once in three.

"Must-Do 5": Discipline commercial

Forex Trading with discipline is important. Forex commercial success could be achieved by drawing the best plan. It is also on the implementation depends on the plan. Be discipline, trade depending on your plan and never trade with your emotions, regardless of whether you lose or win money. Greed will prevent you from taking profits at predetermined level, while the fear you not to kill the beautiful on the market.

OPEN A FOREX TRADING ACCOUNT AND WITHDRAW YOUR PROFIT INTO YOUR NIGERIAN BANK ACCOUNT (NAIRA ACCOUNT).

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FOREX: WIN SOME AND LOSE SOME

Do not emotionally affected if you lose money in forex. It is part of the trade, you win some, and you lose some. If you lose, accept it and don’t think about what mistakes you did. Think about how you can prevent it from happening again and do not think how you can recover your lose.

Never chase the market and by doing this, you can trade in the forex market much easier. Keep in mind that the forex market is a risky market. It is always recommended that you should take a forex demo training program before you enter the foreign exchange market.

You must have find a good system which have ability to know when to buy or sell currency and also knowing when to stop trading and when you did find it you have to believe 100% with the system.

When you enter the market you should be knowledgeable in forecasting price movements. Knowing how to forecast market movements by looking at market generated data is one of the most important aspects of a forex market.

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DON’T PUT YOUR LIFE SAVINGS ON FOREX

Unlike other markets, the forex market does not open at certain times of the day. It is always open, due to the fact it deals with international currencies where at least one market is open at any given period of the day. This is great for those looking to make sudden and continuous gains.

If you plan on making any money trading in the Forex market, you should first read a lot of information to become familiar several different methods. Trial and error of these strategies is the next step, making sure you only invest in small amounts. Because of its volatile nature, Forex has the potential to create huge gains in a short period of time and at the same time, huge losses.

Once you have find a strategy that works well, stick to it, even if you lose money initially. It’s best to become skillful in one strategy, rather than continuously chopping and changing between methods. Every method that has been invented works, that’s why they were invented in the first place.

When you decide to invest in the Forex market, NEVER invest more than you can afford to lose. The longer you stay in the game, the more you learn and the better you get. Don’t put your life’ savings on Forex market, because this market has a way of turning on you when you too expect it.

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DO NOT PREDICT

Investors often look to experts and experienced traders for their predictions on how the market will trend. For example, trader often asked to predict where the Down Jones Index will be at any given time. The truth is, no one have any idea how to answer these questions. Predictions on the market are like throwing a dart. Most traders would be thrilled if they could predict where the market will be just minutes from now.

What many day traders need to remember, however, is that successful trading does not require predictions. It requires a system to deal with the markets no matter what direction they are trending. I always tell traders the same thing: keep it simple! There are three simple rules to remember when trading that are better than any expert’s prediction.

Buy when the market is going up, and sell when it is going down. I know this sounds overly simple, but too many investors forget to follow this very obvious advice. They may fall for concepts where you actually buy a stock even though it is falling. Although they may have read some persuasive defense of such a strategy, it goes against what should be obvious to everyone

Know when to exit. Most traders stay too long in the market. Either they fail to take profits or they let their losses run too far. Both mistakes can be disastrous. Trader should know when to exit a trade even before you enter it. If you haven’t determined your acceptable loss and your target profit from the outset, then you aren’t yet prepared to trade. As soon as you are in a trade, place a stop loss order and a profit taking order. Good traders use a stop loss, but great traders use a profit target in order to maintain a profitable edge.

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TAKE THE CONTROL AND FOCUSED

Controlling your mind will improve your trading because you will be focused. Focus in forex is a powerful thing because it will bring up new insights and ideas. Take the time to let your mind to focus and these may change the way you trade.

Read a forex morning article preview on some forex blog will allow your mind to take the time it needs to focus. Your mind likes to process, think about the daily review. Before you trade you have to get your mind to settle in on process, think about and review forex trading.

Review your plan and all the points within it. Look for important things within your plan and your trading rules that you may struggle to follow and when identify those points that you may struggle with you will better be able to fight them.

Only focused and discipline trade can survive in this game of life. Study the trade and understand how transactions are carried out so as to eliminate chances of losing out on huge amounts of cash.

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HOW TO BECOME A FULL TIME TRADER?

The fact is that you only need to master one trading setup to be a consistently profitable trader. The best setup to begin with is the one that you see and understand easiest. If you are forcing yourself to learn a setup because you believe another person is successful using it you may be taking the longer route to profitability.

We are all different, our brains and personalities will gravitate to different setups. This is also true of exit techniques. Most traders I hear from lengthen their road to profitability by trying to apply too many concepts before owning the first one. They have studied a myriad of techniques but have yet to master any. This allows them to talk about trading but unable to consistently trade profitably.

The first decision to make is, do you desire to be a counter trend trader? or a with the trend trader? Eventually, you can be both. At the beginning, or a new beggining perhaps, you will do best choosing to master a setup and follow the trend. If you have been at this game for awhile and are not yet consistently profitable you know what I am saying is correct.

Create your trading techniques and setups with the intent that it will aid you. Forget about combination of various styles and setups. PICK ONE, MASTER IT, BE CONSISTENTLY and BE PROFITABLE and do this exercise on it and backtest it before you deciding to jump into real account.

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THE BEST HOME BASED BUSINESS OPPORTUNITY

Forex trading is the perfect business and best home base business opportunity. It is capitalism’s best kept secret that will allow you to work at home. The market makes no distinction about your wealth, educational level, ethnic background or any other aspect of your identity. There is no room for office politics, difficult bosses or tricky employees in this arena. You can trade from anywhere. Follow a few simple rules, and you can run your business as you see fit.

But most people never master trading because it seems difficult to win and they seldom have access to an experienced, successful trader or trading methodology that actually works. They usually go it alone or attend countless seminars and read even more books. Not that reading books are bad, but in most cases, nearly but not everyone ever reaps excellent results.

The main reason of why so many people lose money trading is that they simply do not know how to trade. If you do not know how to trade, that does not mean that you are not smart. On the contrary, many highly intelligent people lose millions of dollars in the market. Successfully trading is difficult if you do not know what you are doing.

You will need more than just forex account a strong desire to succeed and put in a little work and after a bit of practice, it will become easy. If you have a strong enough succed desire then you will find a way, no matter how difficult the pain, to get the job done.

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WHY DO MOST FOREX TRADERS LOSE

If you’ve been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn’t seem to matter how smart are you, how many seminars you attend or how many hours you spend analyzing the charts, you just can’t seem to prevent that invisible hand from depleting your trading account funds.

So why do traders lose? Whether you are a seasoned professional or just thinking about opening your first trading account, the ability to stop the invisible hand is a real challenge.

To be a consistently successful trader, then you must have a defined trading methodology, which is simply a clear and concise way of looking at markets. Guessing or going by gut instinct won’t work over the long run.

A Lack of Discipline is main invisible hand who takes out your money. If the way you view a price chart or evaluate a potential trade setup is different from how you did it a month ago, then you have either not identified your methodology or you lack the discipline to follow the methodology you have identified.

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TRADE FOREX MAKE MONEY FROM HOME

The job market is dead basically because everyone is running scared. Everyone I know is afraid of losing their comfortable jobs because they know how tough it’s going to be to replace that income. If you don’t believe me then try applying for a few jobs and see how many other applicants there are for the same job.

If you affected by the current economic climate you’re going to be looking for some way to augment your income, and if you aren’t looking yet, isn’t it about time you started?

Don’t you tired of getting up early and fighting through hundreds of people, standing on trains squashed together like a sardine in a can with strangers. Time to get tired of spending the best years of your life making someone else rich while you were struggling to survive. Good news now you can join as Forex Trader wagon that will advanced their financial Position by trading from home.

Every country has some or other currency that is always being traded, dollar for pound, pound for euro, euro for yen, etc. As long as people are around they will buy and sell each others currencies. And there’s a profit to be made doing so. Overnight riches? No, it’s hard work! but not as hard as you thing. It just need to Learn and try. Hey by working at home It’s also easy being green, Save Money, Save Emissions.

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OFFICE WORKER VS FOREX TRADER

As we are facing a world recession jobs are becoming extremely difficult to come across, so would self employment be an option for you? Have you considered making massive income through forex trading?

There have been many people that have thought the same as you and have gone onto to be professional traders. So what is stopping you? I am not saying work into work and quit, you can start to learn forex and still work full time until you have the skills and confidence to do it full time.

You can trade from anywhere, home, beach during vacation, internet cafe anywhere in the world. The best part about the forex market is it is open 24 hours a day and almost 6 days per week so you can still hold a full time job build up your confidence and capital before becoming a full time trader.

How to Get Started? This is simple, get yourself educated, open a trading account (demo first), get a trading plan and strategy together and you are ready to trade. Learning and keep practicing. Join the internet FX forum, ask the master for the best advice and mostly the group will help you to learn it. Remember that Financial freedom are awaiting ahead.

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