Latest forex report: In the past 2 weeks the dollar fell against the yen and euro as investors speculated that signs the economy is slowing will bring the Federal Reserve closer to a pause after two years of raising borrowing costs.

Traders pared bets yesterday that the Fed will lift its overnight lending rate between banks for an 18th consecutive time next month after U.S. job growth in June fell short of economists' forecasts. At the same time, expectations grew that central banks in Japan and Europe will raise rates in the next month.

A currency strategist in New York said it’s expected to continue in the second half of the year, the decline of the dollar against the yen and the euro.

In the past week, the dollar dropped 0.3 percent to 114.04 yen, reaching the lowest since June 9^th. It weakened 0.2 percent to $1.2810 per euro, touching the lowest since June 6^th.

This forex information, brought above, allows you to conduct fundamental analysis to the information and decide accordingly if you wish to invest in the USD/YEN or EUR/USD (meaning - going long or short).

The other way of deciding whether to go for long or short investing, is the technical analysis, which would be brought to you in the near future, here, as it is described in the books. Forex technical analysis disregards the influences of politics and economics on currencies’ rates, and analyzes mostly the charts used to display the rates’ movement with time.

 

I bet you can draw some obvious parallels between running a business, any business, and Forex trading. Just as a sole example: most successful businesses keep statistics on everything from their conversion rate, to their average dollar sale, to the number of people that come in the door (and even the number of good-looking ladies).

Businesses do this to keep track on things and on top of that, how they are doing on a day-to-day basis. Improvement shows that something is done right, while decrease in sales is a reason to stop and think: what are we doing wrong?

Using a past testing plan in your forex trading can be exactly as powerful and helpful.

Now that you're revising trading as a business, you need to learn some priceless statistics about your system so you can improve its performance. 

Now, after you’ve developed a testing plan, you can't improve your system unless you have something to measure it up to. How could you expect to improve your trading unless you knew what it was you were looking to improve?

There are many sites on the net that can direct you to your desired goal (your win/lose ratio, your average profit and average loss etc.). These sites can make you a much better forex trader, and can show you the things you did wrong along the way, things that weren’t the right decision at the time.

Remember - a good trader ALWAYS gets better. Not getting better means getting worse in the trading world.

 

 

Foreign currency trading scams often attract customers through advertisements in local newspapers or radio promotions. These advertisements may present high-return, low-risk investment opportunities in foreign currency trading, or even highly-paid currency-trading employment opportunities. Specialists urge you to be skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with minimal risks, or that employment as a currency trader will make you wealthy quickly. Tons of other scams, in a lot of other fields often work the same way.

Commodity pool operators often search for investments from friends, neighbors, co-workers and fellow religious or social group members by using their reputations in the community or their personal relationships. In many cases, however, the investment schemes turn out to be fraudulent, and investors lose their entire investment, in many cases as a result of outright theft. Individuals and firms that fraudulently solicit funds from investors for commodity futures and options trading are usually not registered with the CFTC.

They may operate “Ponzi” schemes in which little or none of the money sent in by investors is ever invested as promised – in the commodity markets. Instead, the operator of the scam steals the funds, and creates the illusion of a successful business by using some of the money put in by later investors to pay phony “profits" to earlier investors. This tactic makes it appear to investors that the investment is actually making money, which in turn attracts additional investors. Be wary of such payouts if you do not fully understand the source of any purported profits.

Well, i'm sure it's obvious - when dealing with money, you need to handle it with trustworthy companies and through known routs.

Foreign exchange exposures arise from many different activities. A traveller going to visit another country has the risk that if that country's currency appreciates against their own their trip will be more expensive.

An exporter who sells its product in foreign currency has the risk that if the value of that foreign currency falls then the revenues in the exporter's home currency will be lower.

An importer who buys goods priced in foreign currency has the risk that the foreign currency will appreciate thereby making the local currency cost greater than expected.

Fund Managers and companies who own foreign assets are exposed to falls in the currencies where they own the assets. This is because if they were to sell (repatriate) those assets their exchange rate would have a negative effect on the home currency value.

Other foreign exchange exposures are less obvious and relate to the exporting and importing in ones local currency but where the negotiated price is being effected by exchange rate movements.

Generally the aim of foreign exchange risk management is to stabilise the cash flows and reduce uncertainty from financial forecasts. Fortunately there are a range of hedging instruments that achieve exactly that. What is forex trading?

Foreign exchange is essentially about exchanging one currency for another. The complexity arises from three factors. Firstly what is the foreign exchange exposure, secondly what will be the rate of exchange, and thirdly when does the actual exchange occur.

 

Theres more to tell actually but if I'll tell it all now there will be nothing for you to come back for....

 

So Come back and learn more!