One of the leading causes for the failure of many businesses is their lack of planning. I think most successful people would agree that if you want to be successful in life and business you need to have a plan for how to obtain that success, set goals to meet along the way, and then work on executing your plan and meeting your goals. This is a concise currency trading tutorial, which will give you all you need to get started in currency trading and develop a trading system for triple digit annual gains…

The first point you need to keep in mind is 95% of traders lose and only 5% win. While anyone has the ability to learn currency trading and win, most lose . Discipline and Self Control:Anyone can learn a forex trading system with a currency trading tutorial but the key to success is, executing it with discipline when you are losing. It’s not easy to keep putting in your trading signals, while the market hands you losses and makes you look a fool. You need to be disciplined until you hit a home run.

There are 2 basic types of analysis you can take when approaching the forex:

Fundamental analysis : Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand. In other words, you look at whose economy is doing well, and whose economy sucks. The idea behind this type of analysis is that if a country’s economy is doing well, their currency will also be doing well.
Technical analysis. : Technical analysis is the study of price movement. In one word, technical analysis = charts. The idea is that a person can look at historical price movements, and, based on the price action, can determine at some level where the price will go. By looking at charts, you can identify trends and patterns which can help you find good trading opportunities.

Source : forextradingtutorial

Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand.

Investors and traders around the world are looking to the Forex market as a new speculation opportunity. But, how are transactions conducted in the Forex market? Or, what are the basics of Forex Trading? Before adventuring in the Forex market we need to make sure we understand the basics, otherwise we will find ourselves lost where we less expected. This is what this article is aimed to, to understand the basics of currency trading.

There is no two ways about it-if you want to profit from the currency market, you’ve got to know the basics currency trading. Currency trading is not about spur of the moment decisions and uninformed choices; though some experts would have you believe that. Are you doing any of the following? These practices could prevent profits for you and even result in huge losses-

All currency trades involve the buying of one currency and the selling of another, simultaneously. Currency quotes are given as exchange rates; that is, the value of one currency relative to another. The relative supply and demand of both currencies will determine the value of the exchange rate.if you are in the currency market- you will suffer losses at some point of time! If you stick to a bad position- you will just cough up losses in the long term. Get smart- remember that it is just a trade and don’t commit permanently to a position!Concentrate on suitable stop losses at every point and just relax- you CANT control the market beyond that!

Source : forexsecretexposed

On the downside a move below the 1.5995 level, would please the bears (see chart below). The trendline off the low on the same chart below comes in at the 1.5982 level.  This will also be a key level for the pair today.

The price has indeed fallen, but the price remains above the 100 hour MA at the 1359.50 level.  As a result, the technicals are still fighting between the 100 hour MA and resistance above on the daily chart (see below) against a series of resistance levels including the 100 day MA, the 50% retracement of the move down from the January 2011 high to the 2011 low, and the underside of the trendline (see chart below).

So although the there is some minor selling, the market remains contained with neither bulls or bears taking control.

The USDCHF broke above the 100 day MA today. If the price can close above this level today (0.9685), this will be the first close above the MA level since June 25th 2010. That is signficant and the price action has reacted accordingly today with prices moving steadily higher.

Of coures, breaks higher (or lower) still have levels to get through in order to keep the bullish momentum in tact. The next target level for the USDCHF is the 0.9773 level. This is the 61.8% of the December 2010 high to the low reached at the end of December.  Above that is the high from December at the 0.9783 level. A break of these levels should lead to further bullish momentum for the pair.

Looking  longer term, the pair has been depressed for some time and therefore has some room to run.  Catalyst include a stronger global/US economy that takes the pressure off the safe haven flows into the CHF.  This ultimately could lead to more significant upside potential.  The 0.9807 level is another upside level to get through (see daily chart below) and 0.9964 (50% of the move down from the Aug 2010 high) is another target. The 200 day MA is all the way up at the 1.0200 level.

Intraday, if the price can stay above the 0.9739 to 0.9747 level, the pair could sustain the upside momentum from an intraday perspective (38.2%  of the last surge higher). Please see the chart below.

Have a great weekend,

Greg Michalowski

The currency pairs covered in the report (in the order of review) include:

EURUSD
GBPUSD
USDJPY
USDCHF
USDCAD and
AUDUSD

If there is a pair that you would like for me to review, please send me an email at greg@fxdd.com

Thanks for your support and commitment to FXDD and have a safe and happy weekend,

Greg Michalowski

At the same time, banks borrowed sharply less from the ECB’s emergency 1.75% marginal lending facility, following the ECB’s special 13-day refinancing operation Thursday, the data showed.

Financial institutions across the 16-nation euro zone parked EUR43.619 billion overnight with the ECB at 0.25%, a rate that is below the overnight market rate, currently at 0.40%. The amount deposited with the ECB was down about EUR22.0 billion from the previous day.

However, the usage of the ultra-safe deposit facility is high compared with levels recorded last week, as banks are hoarding liquidity ahead of the Christmas holiday. If markets are functioning properly, banks use the ultra-safe facility to the tune of only a few hundred million euros.

ECB data also showed Friday that banks sharply lowed their use of the ECB’s emergency 1.75% marginal lending facility. Banks borrowed EUR229 million overnight from the ECB Thursday–an amount within the normal ranges–after requesting almost EUR3.5 billion Wednesday.

ECB website: http://www.ecb.int

-By Nina Koeppen, Dow Jones Newswires; +49 171 569 4340; nina.koeppen@dowjones.com

The government’s initial budget for the fiscal year beginning April 2011 contains Y92.412 trillion in total spending, exceeding the previous record of Y92.299 trillion for the current fiscal year due to increased debt-servicing costs, the government said.

Yet Prime Minister Naoto Kan’s cabinet kept the amount of new debt issuance at Y44.298 trillion, below this fiscal year’s Y44.303 trillion. It also held its main spending—or the sum of policy outlays and financial aid for local governments–at Y70.863 trillion, below this year’s Y70.932 trillion.

The government now faces the challenge of passing the budget through parliament by the March 31 end of this fiscal year.

The budget means that the government has satisfied the first-year requirement of a new fiscal overhaul plan created earlier this year that aims to balance the nation’s main budget over the coming decade. Although Japan’s fiscal state remains perilous, with the amount of planned debt issuance expected to exceed tax revenue for the third straight year, signs of the government’s commitment to fiscal overhaul may reassure investors in Japanese government bonds.

Japanese officials find it increasingly important to rein in the nation’s ballooning debt, which is now roughly twice Japan’s annual economic output. Europe’s deepening debt crisis has boosted their discomfort over their country’s still-growing liabilities.

While the ruling Democratic Party of Japan and its coalition partners can pass the main budget bill because of their dominance in the lower chamber, other budget-related legislation requires approval from the upper chamber, which is controlled by increasingly combative opposition parties.

The budget estimates the next fiscal year’s tax revenue at Y40.927 trillion, compared with an estimated Y39.643 trillion for the current fiscal year.

The government plans to use Y7.187 trillion in non-tax revenue, including one-time sources of revenue from separately managed government accounts as well as gains on the nation’s $1.1 trillion foreign reserves. Its heavy reliance on those sources has already raised concerns over the long-term feasibility of the fiscal reform plan.

The primary balance, a measure of how reliant Japan is on borrowing to pay for its policy spending, is Y22.7 trillion in deficit under the fiscal 2011 budget, the government said.

Few economists expect the Japanese economy to get much boost from the budget, in which debt-servicing costs and social security spending make up about 55% of total spending. Aid for local governments accounts for another 18.2%, and the rest is divided among various policy measures such as defense, public works projects, education and technology.

In the meantime, the government plans to boost the Ministry of Finance’s accumulated funding limit for currency-market intervention by Y5 trillion to Y150 trillion.

But government officials told Dow Jones Newswires that the move is mostly technical and doesn’t necessarily mean that more intervention is on the card. It is partly to make up for Y2 trillion spent by the government for a Sept. 15 yen-selling intervention, one of them said.

-By Takashi Nakamichi, Dow Jones Newswires; +81-3-6269-2781; takashi.nakamichi@dowjones.com