FOREX ECONOMIC CALENDAR

babypips.com's FOREX economic calendar must help you go deep into all the financial events, excepts the heartburn of FOREX analysis paralysis.

By now, you must be up-to-date with the economic events that can affewct the FOREX market. Be sure you also know the way trade them. Then Count on Pip Diddy’s Daily Forex Fundamentals reports to which can help you assess what these trends could mean to your favorite currencies!  Are you thinking to decide for which pairs may be effective to trade? Come on. Search and look for the Big Pippin's blog and check out the setups he spotted on his Daily Chart Art. It might help you actually.

An example is given bellow as you can get it easily.

Trading or GAMBLING!

If you trade without risk management rules, you are in fact gambling.
You are not looking at the long term return on your investment.  Rather, you are only looking for that “jackpot.”
In fact, Risk management rules will not only protect you, but they can make you very profitable in the long run. If you don’t believe us, and you think that “gambling” is the way to get rich, then consider this example:
You can see, the people go to Las Vegas all the time for the purpose of gambling their money in hopes of winning a big jackpot, and in fact, many people do win.
Think a moment, how casinos still making money if many individuals are winning jackpots in the world?

WHAT IS RISK MANAGEMENT?

Risk management: It is one of the most important topics you will ever read about trading.
Can you say what its importance is? Well, we are in the business of making money, and in order to make money we have to learn how to manage risk (potential losses).
Basically, it is one of the most overlooked areas in trading. Many FOREX traders are just anxious to get right into trading with no regard for their total account size.

You can see that, those are simply the determination how much they can stomach to lose in a single trade and hit the “trade” button. There is a term for this type of investing. Do you know what? It is simple, gambling. We are going to describe it bellow.

WHY YOU NEED A FOREX TRADING JOURNAL

What are you thinking about journaling?!?
Isn’t that only for silly high school girls who write about their silly crushes on silly high school boys?
 Umm…. Heck yaaaaaaa!
Ok, not really… high school girls keep DIARIES.
FOREX traders must keep trading JOURNALS. And not only FOREX traders, but all of the traders even a small grocery shop a keep their transactions journal.
Are you thinking that two entirely different things! Get it right! Geez!
 Actually, keeping a trading journal is actually a crucial task in any performance or goal-oriented endeavor. The key is to have some way to measure, track, and stay focused on improving your performance.

HOW TO CREATE A MECHANICAL TRADING SYSTEM

Many times ago, we have facilitate you learn the way develop your trading plan. We’ve also explained the importance of it is for you to discover which type of FOREX trader you are.
Then, we feel the necessary to teach you the way add some meat to your thin trading plan frame by showing you how to create a FOREX trading system.
 Specifically, we would like to teach you all about FOREX mechanical trading systems.
Mechanical trading systems:  This comprises the systems that generate trade signals for a trader to take. These are named mechanical as a trader will take the trade regardless of what is happening in the markets now and then.

KNOW THE DIFFERENT TYPES OF TRADING STYLES

FOREX traders are unique from one another.
More than8 billion people work in this FOREX World (including space aliens disguised as humans) and not one person is exactly the same as another. Even identical twins will have different fingerprints.
Each one has their own look, personality, style, talents, and pizza topping preferences (we like pepperoni and potato chips). We all like different things and are unique in our own way discrete.

WHAT IS A TRADING PLAN?

We already have completed more than half of the way through college, this is one of the most important pieces of advice you should always keep in mind.
Be your own trader.
We can say: Don’t follow someone else’s trading advice blindly! Just because someone may be doing well with their method, it doesn’t mean it will work for you well.
We are going on all in different situations in life, and we all have different market views, thought processes, risk tolerance levels, and different market experiences. You need to have your own personalized FOREX trading plan and update it as you learn from the market.
With rock solid discipline, your trading could look like this.

THE FOREX TRADER’S GUIDE TO MAJOR ECONOMIES

Now, we’re going to make small travel around the world, but it will not take 80 days.
When you’re fast enough to keep up, we can probably get around in just 80 seconds!
…Not!
If, we make you sure that you learn about the nitty-gritty of each major economy and what makes its engine go.

FOREX AND GLOBAL EQUITY MARKETS

Have you ever heard that equity markets can also be used to help gauge currency movement? In a way, you can use the equity indices as some kind of a forex crystal ball.

With the thing idea, what you see on the television, what you hear on the radio, and what you read in the newspaper, it seems that the stock (equity) market is the most closely covered financial market. It’s definitely exciting to trade since you can buy the companies that make the products you can’t live without.

HOW GOLD AFFECTS AUD/USD AND USD/CHF

At first are going to detail the relationship between the com-dolls and gold before. Keep in mind the U.S. dollar and gold don’t quite mesh very well.
Generally, if the dollar moves up, the gold falls.
Here is a traditional logic that during times of economic unrest, investors tend to dump the greenback in favor of gold.
Dissimilar to other assets, gold maintains its intrinsic value or rather, its natural shine!

WHAT IS THE US DOLLAR INDEX?

When you trade stocks, you must be know all the indices available such as the Dow Jones Industrial Average (DJIA), NASDAQ Composite Index, Russell 2000, S&P 500, Wilshire 5000, and the Nimbus 2001. Oh wait, that last one is actually Harry Potter’s broomstick.
Good, when U.S. stocks have an index, the U.S. dollar can’t be outdone. For currency traders, we have the U.S. Dollar Index (USDX).
The U.S. Dollar Index comprises of a geometric weighted average of a basket of foreign currencies against the dollar.
Say whutttt!?! Okay before you fall asleep after that super geeky definition, let’s break it down.
This is very common to how the stock indices work in that it provides a general indication of the value of a basket of securities. Of course, the “securities” we’re talking about here are other major world currencies.

WHAT IS CARRY TRADE?

Have you ever heard there is a trading system that can make money if price stayed exactly the same for long periods of time?
Well there is and it’s one the most popular ways of making money by many of the biggest and baddest money manager mamajamas in the financial universe!
It’s called the “Carry Trade“.

NEWS MAKES THE FOREX MARKET MOVE

This is not sufficient to only know technical analysis when you trade. It’s just as important to know what makes the FOREX market move.

Similar to the great Star Wars world, behind the trend lines, double tops, and head and shoulder patterns, there is a fundamental force behind these movements. This force is called the news!

To assess the importance of the news, imagine this scenario (purely fictional of course!)

Say, on your nightly news, there is a report that the biggest software company that you have stock with just filed bankruptcy.

FOREX MARKET SENTIMENT

How’s Mr. Market Feeling?

Most time, FOREX traders will have an opinion about the market.
“this a bear market, everything is going to hell!”
“Things are looking too bright. I’m pretty bullish on the markets right now.”

Almost all traders will have their own personal explanation as to why the market is moving a certain way.
In trading time, traders express this view in whatever trade he takes. But sometimes, no matter how convinced a trader is that the markets will move in a particular direction, and no matter how pretty all the trend lines line up, the trader may still end up losing.
Most FOREX trader must realize that the overall market is a combination of all the views, ideas and opinions of all the participants in the market. That’s right… EVERYONE.
This comprises the feeling that market participants have is what we call market sentiment.
this is the dominating emotion or idea that the majority of the market feels best explains the current direction of the market.

FOREX MANAGED ACCOUNTS

Don’t have time to learn how to trade FOREX? Want to be part of the Billionaire’s Club?

If you answered “yes” to these two questions, the FOREX managed accounts scam is the fraud for you!

You can call our hotline at 1-800-4XFRAUDS!

This scam operates by having an investor “invest” with a “professional” trader, who trades the investor’s capital for a percentage of the profits.

This can sound appealing, especially to beginners who have no idea what they are doing or don’t have the time to learn.

They make out, “Well, he’s a ‘professional’ – he must know what he’s doing! It’s 100 times better than if I traded by myself!”

There is a problem that the user is placing complete trust of his/her money into the hands of a complete stranger.

READING THE CORRELATION TABLE

With this knowledge of correlation, let's look at the following tables, each showing correlations between the major currency pairs during the month of February 2010.

The upper table above shows that over the month of February (one month) EUR/USD and GBP/USD had a very strong positive correlation of 0.95. This implies that when the EUR/USD rallies, the GBP/USD has also rallied 95% of the time. Over the past 6 months though, the correlation was weaker (0.66) but in the long run (1 year) the two currency pairs still have a strong correlation.

CURRENCY CORRELATION EXPLAINED

 Did you see that when a certain currency pair rises, another currency pair falls? Or how about when that same currency pair falls, another currency pair seems to copy it and falls also?
If you reply “yes,” you’ve just witnessed currency correlation in action!
And if you say “no,” you need to stop doing less important things like sleeping, eating, playing Candy Crush or Angry Birds, and instead spend more time watching charts.
But, don’t be worried about. We are going to start with the basics and break it down yo…

4 TYPES OF STOP LOSSES

Come forward to face it. As the market will always do what it wants to do, and move the way it wants to move. In each new second coming is a new challenge, and almost anything from global politics, major economic events, to central bank rumors can turn currency prices one way or another faster than you can snap your fingers.

Position Sizing

By now, you have already learned the hard lesson of trading too big, let’s get into learn properly the usage of leverage using proper “position sizing.”

Position sizing is setting the correct amount of units to buy or sell of currency pair.

This is one of the most crucial skills in a FOREX trader’s skill set, in deed.

What is Fundamental Analysis?

On the way travels, you must come across Gulliver, Frodo, and the topic of fundamental analysis.
Wait a minute…
You have already been provided a teaser about fundamental analysis during Kindergarten! Now let’s get to the nitty-gritty!
Do you the exactly usage of it? Well, fundamental analysis is the study of fundamentals! That was easy, wasn’t it? Ha! Gotcha!
There is really more to it than that.  Really much more than you imagine!
If you hear people mention fundamentals, they’re really talking about the economic fundamentals of a currency’s host country or economy.
The economic fundamentals cover a vast collection of information – whether in the form of economic, political or environmental reports, data, announcements or events.
Even a credit rating downgrade qualifies as fundamental data which do you need to look how Pip crawler turned this news into a winning short EUR/USD trade.