Monday, October 19, 2009

Institutional Forex

As only banks can participate in this type of broker, it is not suitable for beginners. If any other broker grants you direct access to the Interbank market, he does not play fair as the market is not open to individual traders. Furthermore, institutional brokers have direct access to the market and represent 50% of all Forex trading.

Now you can see, that only four of the five mentioned markets are open for individuals. From these four, the Retail market maker is the most appropriate one. Within this type, there are a lot of different types and they are easy to find. However, one must take a look at the services provided by the broker he selects. But don't chose a book maker or bucket shop, as they are illegal.

Retail market maker

Despite the fact that this type of broker represents most brokers on the market, they do not provide the same services and access to the market. A lot of traders chose this type and is also suitable for beginning traders. Nevertheless, one most be aware of the provided services. In the United States and most other countries, this type of broker is legal.

Institutional market maker

This type of broker has the most direct access to the Forex market and is very suitable for beginners. You can be given more direct access to the Interbank market, when you are willing to pay a larger sum of money.

Forex account types

There are many dealers with online access to be found on the world wide web, both legal and illegal. Many offer the same services and access to the market, but their policies and procedures might differ. Therefore, every trader must chose his type carefully.

Beginners need to be very careful, as the market allows a lot of trading services, which are not suitable for beginners, to operate on the market.

Different levels of the Forex market are represented by each type of broker, ranging from a high level with direct access to a lower level with little or no access to the market at all. We will cover the different types of brokers below.

Forex news headlines

Our website provides you with the most recent news and highlights subjects that might influence the market, to let you know what is happening in the world of Forex trading.

01-09-2009: online!
Today is big day for our crew, as the website is officially launched and starts its journey to become a well-known and reliable source of information dealing with the Forex market. Our website contains all kind of information, covering the best brokers, Forex lessons and a special system that determines the best Forex account for you!

As the website is new, there might be a possibility, that you bump into some errors. We would like you to report these using the contact form (footer). will try to keep you updated with the best brokers and hottest news in the future. Thank you for your visit and we hope to see you back soon.

Trading advice is offering you a trading advice weekly. This might contain safety information, rules for the Forex or tips to improve your earnings. Make sure to check the page weekly to gain the most recent advice, or read all the Forex tips.

This week's advice: This is the first advice to be published on our new website. This week, we will give you information about joining a Forex broker. This is a company, which can give you access to the market. You are obliged to be signed in with a broker, to work with the Forex trading. But what broker is the best for you?

At this moment, there are more than 100 Forex brokers on the internet. That's a lot. To make sure you'll get the broker that fits you the best, you need to think things over. What would you like from your broker? Would you like to trade in other currencies than US dollars? Or would you rather trade in oil? Are you a big trader or do you want support and lessons from your broker?

You can use the Broker search function to see what type of account and which broker fits you best. Your choice is always right as allows the best brokers only, enabling you to have the best trading experience. You can always be sure of 100% reliability, professionalism and welldeveloped tools.

How does Forex works?

Forex is short for Foreign Exchange and cannot be compared with the shares (like Nasdaq). The currencies are traded between the central bank and the brokers. Currency can be traded in pairs, like EUR/USD. EUR is the basic and USD the second. This means that EUR/USD can be 1.3000 where one EUR is 1.3000 USD.

Forex products prices are displayed with two or four decimals (e.g. €/$ 1.12 or 1.1234). The decimal holds the name “pip”. To be able to trade on the Forex Market, you'll need an account. The brokers can give you access to the market and offer different account types. A minimum deposit of $25 to $25,000 is required, when you like to enter the market with real money.

The winning and losing of money by buying or selling currency, is displayed in pips. If you, for example, win five pips (1.3000 to 1.3005) and you own 100,000 pairs, you'll win $50 (0.0005*100,000). We advice you, as a starter, to only deal with small pairs.
To read and learn more about the market, check our Forex tutorials or join the lessons from your Forex broker.

Forex trading helps starters to find their way on the Forex market. All the information provided on our website is free and reliable. Furthermore you can get a free demo account to try the Forex brokers (companies who give you access to the market).

The best Forex brokers, articles and more relevant information can be found on our website. We compare the differences between the account types and different brokers to make sure you can join the programme which fits your situation best. (Choose option: "Broker search")

Our Forex trading skills are highly recommended when you like to deal with real money. Check out our articles and learn to work with tutorials on the brokers page, to become a professional on the market. Did you know, that the Forex currency trading market generates over three billion US dollars a day? Don't wait, start today!

Typical Spreads Under Normal Market Conditions












leverage fx

That's easy. We use our trend identification tools FX Multimap which shows statistical strength/weakness and also FX Power Index which shows % of currencies that support buying/selling.

IF on the pullback to the fib level there is not much weakness on these tools and the previous move up had HUGE strength then we look at the 38 to 50% fib level to buy and the EXACT entry is when trendline over the highs gets broken! Reverse for shorts. Call us and I'll give you a week of our classes free.

Relative Strength Index

The Relative Strength Index (RSI) is designed to measure a market's recent gains vs. its recent losses in an attempt to show the relative strength of a trend. Essentially, the RSI plots a line on a scale from 1 to 100. Generally, most analysts consider the market to be overbought when the RSI reaches above 70 or oversold when it drops below 30.

One of the easiest ways to use the RSI is to identify potential reversal points. In the EUR/USD example above, the RSI moved above the 70 mark on April 5, followed by a long selloff until April 9, when it just touched the 30 mark. The market then reversed again, moving up until April 13, when it again moved the RSI above 70, reversing once more.

As always, no indicator is correct 100 percent of the time. The RSI is best used in conjunction with other forms of technical and/or fundamental analysis to confirm or enhance its findings.

How does it work?

In a nutshell, Foresight-A.I. examines market movements and patterns from the previous few days and, using a sophisticated mathematical algorithm, forecasts those patterns most likely to repeat. The forecast is delivered to you the night before the next day's trading begins, so you can plan your trades well in advance. The forecast is for between 8:20 a.m. and 4:30 p.m. each trading day.

Because no indicator can be correct 100 percent of the time, we highly recommend combining Foresight-A.I. with other forms of technical analysis to confirm or enhance the forecast. Every trade should be considered carefully as to how it fits with your personal trading strategy, including appetite for risk.

Dynamic Charting

Want to check the charts? Now you have access to real-time forex charts from anywhere you have internet access — without having to log into your GFT account.'s new interactive charting offers the same powerful features available in DealBook® WEB, so you can check current prices, apply customized indicators and customize the chart by timeframe, chart type and history for more than 20 of the most popular currency pairs

iPhone App

Forex traders using Apple's® popular iPhone now have the forex market at their fingertips. The new FX360® iPhone application from GFT offers all of the best features of, but in a fast, portable iPhone-based format. Get real-time quotes on currencies, equities and oil along with dynamically updated intraday charts! is Getting Even Better!

If you haven't seen our forex news, commentary and analysis site,, you've been missing out! Not only does it deliver commentary and fundamental and technical analysis from Kathy Lien and Boris Schlossberg, along with the rest of the team, but we've just added some new features to make it even better!

Forex Tips

Get the inside scoop on forex tips, tricks and trade ideas from GFT's professionals.

GFT delivers helpful information to forex traders with forex education, forex training and helpful resources that forex traders need.

What Makes Prices Move?

Today I will go over what I think drives price movement in the markets, why I hold these beliefs, and why I think it is important to understand the forces in price movement.

Planning Your Trades - FX360

When most people start trading, they do not put much thought into theirtrades. They will either buy or sell a currency pair (probably theEUR/USD) because they think they see a trend or maybe even because they put a moving average on the chart. Sometimes there is no reason at all for the trade, they just want in. Either that trade nets a small profit or the trades starts going against the new trader. The trader that gets the small profit will feel invincible and likely base trades in the near future on the same reason as the first one. Of course they expect every trade to win. The trader whose position moves against them leaves their position open, stares at the their computer without blinking, and laments that they will get out if the market only goes back to break even.

Trade Invalidation Management

I have heard from some customers that they have had trouble determining when a trade is invalidated, or they occasionally enter a trade that was clearly invalidated.

Trade Invalidation Management

Whenever I post a trade, I usually include a list of conditions that could invalidate the trade. These conditions invalidate the trade because they each would suggest that the reason for the trade is no longer present. This short list of conditions that would invalidate the trade isn't a substitute for experience, and they aren't always perfect. However, this list is the best way for us to quickly and easily explain what invalidates a trade.

I have heard from some customers that they have had trouble determining when a trade is invalidated, or they occasionally enter atrade that was clearly invalidated. Today, we will go over some simple steps to take that will decrease the odds of entering a clearly invalidated trade. The best way to accomplish this is by setting price alarms at key levels before the trade's entry. GFT's Dealbook software can send alarms to your email or your cell phone, so you do not need to be near your computer to be aware of an alarm being

Playing the FOMC

USD/JPY and the Fed meeting

Right now, the focus should be on USD/JPY for forex traders. The FOMC is meeting, and expected to announce its rate decision at 2:15 p.m. Eastern. While no change is expected, it is the Fed's policy statement that will be of interest. And it is the policy statements that will provide some direction on the currency market.

Most likely to be affected by the Fed's statement is the USD/JPY currency pair. GFT'sKathy Lien describes, in FX360, possible scenarios connected with the Fed's later announcement:

If the Fed changes or drops their “the pace of economic is slowing” and” economic activity is likely to remain weak for a time,” statements, expect a rally in USD/JPY. If they talk of exit strategies and bond yields start to rise, we could see a more dramatic dollar rally. If the Fed disappoints by downplaying the improvements in the U.S. economy, we could see an ugly reversal in the greenback. The currency pair that will have the purest reaction to the FOMC decision will be USD/JPY.

As always, market movements are often determined by sentiment and by the interpretation of data. Because the Fed is so influential, it is natural that what is said by the body holds weight on the currency market.

Increase Your Odds: A Basic Technical Approach

The following article will use Doji for the purpose of providing specific and detailed examples
Doji are neutral indicators that simply represent a “tie” in the never-ending battle between buyers (bulls) and sellers (bears). They form when the open and close of acandlestick are equal or very close to equal and are considered a neutral formation suggesting indecision between buyers and sellers—b ullish or bearish bias depends on previous price swing, ortrend. Length of the upper and lower shadows (wicks and tails) may vary giving the appearance of a plus sign, cross, or inverted cross. Completed doji may help to either confirm, or negate, a potential significant high or low has occurred especially when found at support or resistance, after long trend or wide-ranging candlestick.

Will the U.S. Dollar Hold Its Gains?

Forex trading forecast for the greenback

For the dollar, it may not be that bad. And it may not even mean that things are going that badly for the labor market. GFT's Kathy Lien looks, in FX360, at what the latest payroll numbers may mean for the U.S. dollar in currency trading:One of the questions being asked right now has to do with whether or not the U.S. dollar can hold its recent gains. Many are wondering what today's unemployment rate report -- showing 9.7% unemployment -- means for the forex trading forecast.

However there is no question that the trajectory of payrolls has improved, which has brought relief to the currency market and helped the dollar recovered its gains after traders realized that the report was not that bad. With the initial post payroll volatility settling and the holiday weekend looming, the dollar should hold onto its gains.

How Long Have You Been Trading Forex?

I had begun to trade Forex back in August 2005 when I first heard about the company (Marketiva) that offers free $5 bonus to start trading Forex with them. It was interesting for me to try and at that time free $5 sounded like a lot to me, so I’ve opened an account. Since then I’ve been losing and wining and I have also changed my broker a lot of times but Forex trading has been a great part of my life since my first opened position. I believe that experience is one of the greatest teachers in Forex and that new traders rarely can start to win consistently without years of real on-line trading. So, in this new poll I’d like to know how long have you been in Forex.

Consumer Confidence Above 50 Boosts EUR/USD Up

The dollar is currently losing against the euro on the Forex arena after falling slightly yesterday. The European currency gains from the improved outlook for the global economy on positive consumer confidence and home price index in U.S. EUR/USD currency pair is now trading near 1.4324.

S&P/Case-Shiller home price index for 20 U.S. states reached a seasonally adjusted rate of 141.31 in June — that’s a 15.45% drop compared to June 2008 but at the same time it’s the first gain in the index in more than two years. This indicator was expected to be reported at -16.4% year-to-year change.

Richmond Fed manufacturing activity index for August was reported at the same unchanged level as in July — 14, while it was expected to grow up to 16.

Consumer confidence went up from 47.4 in July to 54.1 in August, signaling generally positive expectations of the consumers in the United States. A decline to 45 was forecasted by the economic analysts.

EUR/USD Down on Good U.S. News

After posting a clear doji candlestick yesterday, EUR/USD is now falling down despite the good fundamental reports from U.S. accompanied by the stock market growth there today. It’s a rather uncommon case for the dollar to gain with the good macroeconomic reports, but it looks like the traders are interpreting these positive factors as the signals that the U.S. interest rate will be raised soon. EUR/USD is now trading near 1.4238.

Durable goods orders increased by 4.9% in July after falling by 1.3% in June. Median forecasts by the market analysts pointed at 3% gain for the report.

Seasonally adjusted annual rate of the new home sales in U.S. went up from 395k to 433k in July. A further drop to 390k was expected by the traders.

Crude oil inventories increased by 0.2 million barrels last week, which is quite a insignificant change. Total motor gasoline inventories dropped by 0.7 million barrels during the same time.

GDP Revision Doesn’t Happen — EUR/USD Gains

EUR/USD reacted with a small drop immediately after the GDP release today but then retraced and is now trading with a considerable daily gain. The Q2 2009 GDP change value was expected to be negatively revised today but since the revision didn’t happen, traders react on a positive signal for the U.S. (and global) economy. EUR/USD is currently trading near 1.4269.

U.S. real GDP decreased at an annual rate of 1.0% in the second quarter of 2009 according the latest estimate report. Previous estimate report also showed a -1.0% change. Traders expected a revision of the estimate to a drop by 1.5%. The GDP fell by 6.4% in the first quarter of 2009.

Initial jobless claims declined to 570k last week, down from 580k a week before (revised from 576k). A decline to 565k was expected from this report.

EUR/USD Grows Positive Income/Spending Data

EUR/USD rose today at a relatively slow pace after posting its biggest daily gain since August 3 yesterday. The rather good personal income/spending data that came out in U.S. today helped the traders to decide in favor of more risky and yielding assets, including the euro. EUR/USD is now trading near 1.4367.

Personal income in U.S. remained unchanged in July compared to June’s value, while the June’s change was positively revised from -1.3% to -1.1%. Personal spending increased by 0.2% in July after 0.6% gain in June (positively revised from 0.4% gain). According to median forecasts, income should have increased by 0.1% and spending — by 0.2%.

Michigan sentiment index went up to 65.7 in August according to a new revised report. The previous value was 63.2 and the traders expected a rise only to 64.


Fibonacci Retracement Levels

Tom DeMark’s Pivot Points

Tom DeMark’s Pivot Points

Camarilla Pivot Points

Camarilla Pivot Points
Pair4th Sup3rd Sup2nd Sup1st Sup1st Res2nd Res3rd Res4th Res

Woodie’s Pivot Points

Woodie’s Pivot Points
Pair2nd Sup1st SupPivot1st Res2nd Res

Floor Pivot Points

Floor Pivot Points
Pair3rd Sup2nd Sup1st SupPivot1st Res2nd Res3rd Res


I am typing this from my pc. It a bit of a mess now, the new house still needs a little work and I am not feeling well lately. Maybe its the change in climate.

This week I am going to talk about numbers only. Forex is after all based on numbers. Example, I have a long position on GBPUSD @ 1.4700 with a profit of 320 pips at the moment and still holding.

What I am going to say is big players only see big number. The do not see the last 2 digit. The last 2 digit is for scalpers. Big players only see the 1st 3 or 4 digit only. So if a bank wants to buy or hedge a currency they will give an instruction to buy at 1.47. Thats it. Simple yet people fails to see it.

So what happens at 1.47? The price will bounce of or hover around it but things arent always what they appear to be. What happen is price will have a range between 1.46 - 1.48. That is almost 200 pips wide range. Imagine what happen to your 50 or 100 pip SL?? Now you know why people lose money even though they have the right direction.

These big players have big money they dont mind to stand few hundreds negative pips coz in the end they will profit big time. What they do is they will have a standing order to trade at certain level. Because the total amount of order, the market cannot fill the order in 1 transaction and so price will hover or bounce of a certain level. This is where double top or bottom appear. Behind it is the action of filling orders by these big players.

Example EJ currently have a top of 1.34 and a bottom of 1.30. Big players are playing the game here. At the moment EJ is climbing and there is a big possibility that it will reach 1.34 again. I have a standing order to buy EJ at 1.30. If it hits there is a very big chance for 400 pips gain. Only time will tell.

Attach is a chart of GBPUSD. If you look carefully, you can see my actual entry point. I will explain the rest of the chart in due time.


One of my favorite indi is LWMA 55. I dont know why but the price seems to react a lot of this line. People say that MA is a lagging indicator and I agree with them 100% but do not use MA as a signal generator, instead use them as a dynamic support and resistance.

For those of you who love to experiment, try putting LWMA 55 on a chart and see how price actually interact with the line. Its not magic but its a mathematical calculation.

Dont get me wrong, you may not be able to trade using MA 55 alone. Try putting LWMA 13 in there as well and remember they are not signal generators. Treat them as dynamic support and resistance.


Forex is not a quick rich scheme.
Forex is not easy even though my blog says so.
Forex is not a place for newbie
Forex is not something you can learn overnight
If you needed the money, dont put it in Forex. Seriously. Go somewhere else.
Forex is a journey, enjoy it.
There is no such thing as holy grail coz there is no perfection in this world. If perfection exist in this world it would be boring. No more room for improvement.
Forex is not rocket science. There is no right or wrong. There is only probability.


On April 2009, I moved to Kuala Lumpur. A new place requires me to have new schedule. I dont have much time as I would like in front of a PC which means, shorter time for me to trade. It requires me to adapt to the time I have to trade and make a new system.

In my quest to adapt my existing system to a new time constraint trading requirement, I accidently stumble onto a new system. Its a very simple system that has shown good result for the month of April and May at the moment.

Just to show you what I have stumble upon, here is a screen shot of my demo account that I have used to run the test. It doesn't show high accuracy but it shows a return of over 100% last month and a small return this month so far.

Here is the hard part. What if I say that I can actually have an accuracy of 100%. Meaning I can win all the time with this system. The numbers you see there is me using a demo account trading with limited time with no regards for the system rules.

Would it be nice to actually win all the time. I will keep you guys posted on the result by the end of this month. In the meantime I cannot be online as long as I like to. For my friends, I know my YM is not online for a long time but just leave a message and I will answer when I have the time.


On my last post, I was telling you about a new system. I decided to do forward testing. As usual all testing was done on a demo account. No live account was hurt during the testing period.

The result as you see is superb. There are actually 2 part of testing. The early trades are done on a shorter time frame, 5 minute to be exact. The later part of testing is done on a longer time frame, 1 hour.

I must say the system looks promising on the longer time frame. On the shorter time, I just dont have the time to monitor the trades.

As of now the system is running on my live account. At the moment on 4th June my account is up 40%. Hopefully everything goes well and I will have good profit by end of the month. Will keep you inform on the result later


Due to restricted time and Internet connection that I have now, I have opted to trading using the daily charts.

Its not as aggressive and thrilling as trading on the shorter time frame but the result is about the same minus the headache. I'm beginning to like daily trading. I need to make decision once in a while and the rest of the time I just hold my position.

On a daily chart, the candlestick is much easier to read and pattern is much clearer. On 13th August I opened 3 position. 2 of which is still holding while 1 has been closed. At the moment all position are in profit.

Daily trading is not for everyone. It took me sometime to adjust on the requirements of daily trading, but once you are there you never look back.