Forex Trading Winners

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New Zealand Dollar Depreciation Encouraged By Central Bank

The New Zealand dollar was lower today on the issues concerning the impact of Germany’s moratorium of short selling on the European economy and after the Governor of the central bank said that the slow depreciation of the currency is what is needed.

The quotes of the New Zealand’s central bank policy makers caused people to guess that the bank isn’t going to increase the interest rate soon and that they maywant the eventual depreciation of the currency. Alan Bollard, the Governor of the Reserve Bank of New Zealand, said:

A slow and steady depreciation of the New Zealand dollar remains a likely outcome for a sustainable recovery of the New Zealand economy, as it would increase export returns and weaken household spending on imported products.

NZD/USD traded today near 0.6786 as of 12:52 GMT, rising from its opening price of 0.6936.

If you would like to comment on the New Zealand dollar’s recent activity or have any concerns regarding this world currency, please, feel free to leave a comment.

Traders Panic, Loonie Down From Germany’s Ban On Short Selling

The Canadian dollar lost ground today against some other popular traded world currencies, including the U.S. dollar, the euro and the Japanese yen, soon after the route of the German leaders to ban naked short selling, resulted in the risk sentiment to deteriorate and the investors to avoid the high risk assets.

In short sales the investors borrow the assets, counting on the future decrease of the prices. In naked short sales the borrowing of the actual assets doesn’t happen, creating opportunity for unlimited bets. The German leaders concluded the last practice is destroying the economy and deleted it in hopes to improve the overall economic affairs. The decision revealed exactly opposite results, causing the uncertainty and volatility in the markets and causing the traders to bail on German investments.

These economic conditions tends to draw the investors’ sentiment towards the less risky investments, causing the currencies tied to the growth to contract. The chances for the increasing interest rates waned as the volatility in the markets grew. The analysts say that the Canadian currency may fall to 1.0700 — 1.0750 per the U.S. dollar.

USD/CAD traded at 1.0427 as of 20:46 GMT today after it opened at 1.0389. EUR/CAD traded at about 1.2945 after opening at 1.2679. CAD/JPY traded near 87.96 down from the opening rate of 88.73.

Economic Growth In Japan Gives Strength To Yen

The Japanese yen advanced today after the country’s gross domestic product increased, signaling about the growing pace of Japan’s economic recovery.

The gross domestic product grew at the annual 4.9 percent trend in the first quarter. Japan’s economy is slowly recovering, as was confirmed by the Goldman Sachs Group Inc., which said about “solid growth driven by external demand and policy stimulus”.

USD/JPY traded near 91.26 as of 8:46 GMT today after it opened at 91.67. EUR/JPY traded at about 113.19 after opening at 113.80.

Are you prepared to currency trade?

Currency trading is the most popular way to earn to money and it is without doubt a very profitable market. However few are familiar with its unpleasant intricacies and most ignore a very important aspect: risk. It is not enough only to be given the chance to invest your money successfully, you have to be careful because Currency trading can be an efficient trading system or it can ruin you. Why is Currency trading risky?

– Currency trading is very unstable. It is the subject of rapid and overwhelming changes. The market is volatile and it is influenced by political events.
– One can loose at any time especially when he has just ventured into Currency trading. Experience, information and attention are necessary.
– Some unexpectedly loose the Risk Capital which sometimes consists of College money, the retirement funds or some other substantial sum that shouldn’t have been considered as Currency trading capital in the first place.
– Fluctuations in currency prices, discrepancies between interest rates in two different countries, insolvency of financial institutions that take part in transactions and limited flow of exotic currencies will most likely lead to loss.
– Large profits and minimal losses are impossible to predict with 100% certainty.
– The Currency trading market has great winning potential, but it also has loss potential.
– Misinformation and the emotional baggage are most of the time cause of loss. Use facts, not hope or fear, when Currency trading.
– Sometimes trends can lead to money loss.
– Huge leverage is available to traders. This leads to dangerous positions that risk too much in comparison with the size of the account.
– Lacks of money management and of back testing plans are the mistakes that currency traders make sometimes.
– Using brokers is sometimes inefficient because this counterpart can refuse to trade during volatile market conditions affecting the retail trader. They can even widen spreads. However it is recommended to collaborate with a broker, because he can deal in the interbank market and he surely knows more about Currency trading making it safer from other points of view.
– Scams were very common years ago when dealing with a broker. However, one can be confident with the person he is working with by checking their background and the Institutions he is associated with (large banks, important insurance companies).

Don’t be frightened! It isn’t all about risks. And don’t start trading in fear! You will loose this way. You just have to keep in mind all possibilities and avoid unwanted situations only you can get yourself into. All Currency traders have to be very well informed about their activity. They have to know technical analysis and how to read and interpret charts, they have to develop effective strategies and minimize risk. The financial exposure has to be limited and this can be done in many ways available to currency traders who inform themselves.

So, educate yourself, be prudent, take risks only when you can handle loss and always be prepared for anything. And have this in mind: If Currency trading isn’t profitable then why are so many financial investors, banks, international institutions and important players that obtain huge amounts of cash by simply turning their own money into other currencies?

Mini Forex Trading – What You Need To Know

Forex trading is the new way to make money through online currency trading. With a worldwide market and over 60 currencies for you to trade there has never been an easier way to make money online.

Forex trading until recently was reserved for banks and other large financial industries but thanks to the power of the internet and online currency trading, forex has now become feasible for everyday people. The forex market has become the largest trading market in the world and each day there is an estimated turnover of over $1.5 trillion dollars. Another added bonus is that forex trading is available 24 hours a day, 5 days a week unlike most other markets that operate on an 8 hour day. This means that people wishing to trade forex can do so at any given time.

Forex currency trading is done is pairs and these are known as crosses. These pairs are always against the US dollar and the main crosses you will find when trading forex are the USD/EUR and the USD/GDP. The most popular crosses are known as majors and these can make forex traders great profits. Currencies change on a regular basis and are based on the how the world financial markets see the value of the currencies. You can sell or buy these currencies and forex brokers do not charge commission fees.

There are two types of forex accounts; a mini forex account and a regular forex account. Mini forex trading is an excellent way for small investors to learn about and take part in forex trading and with the most forex brokers offering a leverage of 100:1, mini forex trading will allow you to control a $10,000 currency position with a deposit of only $100. Mini forex trading is a great way to get a feel for forex trading and learn the tricks and skills needed to succeed without having to go to great expense. Why not try mini forex trading now and see just how easy it is to profit with forex trading.