This might be useful to know. Have you ever looked at the EUR/USD with the chart for USD/CHF underneath?

Have you noticed that sometimes when the EUR is strenghtening against the USD then the USD is weakening against the CHF? Sometimes it’s uncanny how these two currency pairs move in the opposite direction, naturally when the USD gains or losses against the Euro zone.

Did you know that there is a website which can give you the exact correlation between these pairs and other commonly traded currencies?

It’s called Mataf.net – here’s the link to the page you need: www.mataf.net/en/tools/correlation

If the currency pair correlates to anyother pair the reading will be 80% or greater. So you need to look for a reading of more than 80% and as close to 100% as you can get. If you enter a position on a currency pair, then you could wait for a similar setup on its correlating pair to trade in the same direction.

If the reading is -80% then the currency pair will be trading in the opposite direction to your compared currency.

Hope that helps. Let me know how you get on!

To Your Success!

Annabel

It’s well known that 94% of all people trading the Forex at home fail. Sometimes this can often be the result of not having a good trading psychology or developing the right mindset for success. What if that was the only thing stopping you making consistent profits for a very long time – wouldn’t you want to make sure you get this right?

Here are 5 things you can do now.

1. Use the ‘3 strikes and your out’ rule. If you have 3 bad trades, take time to stop and reasses what you are doing. Go back to your trading plan and make sure you are sticking to it. It may well be that the market isn’t giving you the trades it normally does. In this case wait until it does!

2. Learn from your mistakes and don’t talk to yourself using negative language.

3. Set your trading hours and then enjoy your time away from the markets. Forex trading is pretty intense and you can run the risk of burning yourself out. Have a balance.

4. Don’t try to pre-determine the market. Yes have a strategy to deal with all eventualities but make sure you aren’t trying to control the market. It will do what it wants. You can, however, control your emotions and reactions to the market. The market will move in 1 of 3 ways – up, down or sideways and you should have a strategy to deal with them all.

5. I can’t stress enough the importance of taking your trading step by step. You won’t make consistent money over night. You may very well make a good living out of Forex trading if you learn how to do it and practise over time. Once you are consistent and confident with your strategy, you will have set yourself up with a good source of income for a long time to come.

Are there any tricks or strategies you have used successfully in your trading to control the psychology of trading? Add your thoughts and comments below!

Thanks for reading. To Your Success!

Annabel

Here are 5 reasons to read around the subject of Forex trading and general economic factors.

1. Firstly factors like Retail Sales figures and GDP will move the market. If your Forex trading strategy includes trading these events and it’s a fully back-tested plan then great. If not then I would advise to close your positions before the news comes out.

2. Secondly you can gain some advantage over other traders by being informed and anticipating how the market might react to certain events. Countries like Australia and Canada are major producers of commodities. If  Australia has had good crop gorwing seasons then this might strengthen the Australian Dollar – which you could anticipate as part of your Forex trading strategy.

3. Exports. Canada exports a large proportion of the goods they produce to the US. If your research shows an increase in goods produced, then you would look to possibly buy Canadian Dollars.

4. The price of oil will have a major effect on currency prices for both oil producing countries in addition to those major consumers of oil – especially for industry purposes. Keep an eye on the price of oil as this will move the currency markets.

5. The general economic stability of countries will also move the market. As we saw last week, the European Summit was successful in coming up with a strategy to deal with the debt problems of Greece which strengthened the Euro – especially in the US session!!

Those are just a few of the factors you can look out for. Having a little more background understanding and taking a look at the bigger picture will make sure you are well informed. This way you can take advantage of potential strengths or weaknesses in the currency pairs you trade – being one step ahead of others.

There are many more tips and strategies over at www.tradeforexfromhome.com Act now and click on the link for much more!

Do you have your own top 5 watch lists for good Fundamental analysis to add to your Forex trading strategy? Add your comments below – would be interested to hear from you.

To Your Success

Best wishes

Annabel

Yes you really can listen to MP3 files from this web site to give you interviews on trading related topics. There lots of information on a wide variety of subjects including the link below to the post and broadcast called ‘What Makes A Consistent Trader’.

Check the link below

www.traderradio.net

Let me know how your trading is going – to your success!

Best wishes

Annabel

Do you need to know much before starting your trading for the day? Can you just trade the price action without knowing whats happening ‘out there’? Well I would recommend doing the 5 things below before you start.

1. Check all economic data. You don’t want to be caught out in an open trade if a major news event is scheduled which you don’t know about. Take a look at www.fxstreet.com as the data is updated almost immediately and will send you an alert as the results come in.

2. Check to see which currency pairs correlate with each other. This means you can watch certain pairs as they move – either in the same direction or in opposite directions. If you are short on one pair you may be able to trade a long position on its opposite pair. Check out www.tradeforexfromhome.com for a great correlation chart.

3. Decide in which direction the trend is moving. Pull out to the larger time frames to understand the general direction. This is because if the direction is generally South, then a move North might just be a short-term correction before the price continues down. If you are looking for a good move, then perhaps a move North will only be short-lived.

4. Make sure you have Pivot Points, Spuurt, Resistance levels added to your charts. To a certain extent you can add a setting to MetaTrader but if not then I would recommend www.actionforex.com This means you can anticipate potential stalling points as the market moves. Fibonacci, Elliott Wave etc are all good ways of anticipating market moves, pullbacks and reversals.

5. Read reports of general market sentiment so you can better understand market moves. Sign up to a few newsletters and read them before you start trading. Don’t take them literally but it will give you a good sense of potential areas of support/resistance which may help you make better trading decisions.

I guess the above is there so you can arm yourself with a general over view of the market without getting yourself involved with too much information. If you find out that general opinion is that the EURUSD has strong support at 1.3550 then if the price stalls around this area, you will know why!

For more of the same tips, advice, strategies etc head over to www.tradeforexfromhome.com

To Your Success!

Best wishes

Annabel

Having lost over 20% of its value since 2007 a welcome resurge has recently been seen in the Forex trading market. But how will the currency fair moving further into the year?

Alot depends on the strength of the economic recovery and ofcourse the looming general election in which we may see a change of government.

So how does that effect your Forex trading?

At the end of the day if the UK once more becomes a favourable place to invest, then it all looks good for the GBP to continue strengthening against the majors.

Take a look at the report below which has been written by the staff at www.actionforex.com

www.moneyshow.com

Enjoy the read.

To Your Success!

Best wishes

Annabel

Have spent some time over the holidays doing some research on good Forex trading tips and resources for you. OK so some of  those I have found haven’t given any new information but have found a few really useful resources.

Check out these below -

• www.forextradepoint.net – I thought this was good as it gives you an indication of the general direction of the currency pair – pretty much general market sentiment for daily and weekly trends. Its pretty useful – you can then trade more long or short positions depending on the trend direction.
• Some general fundamental and Forex trading research resource over at crooksblog.sovereignsociety.com

• Lots of general information over at www.theforexhotspot.com

• A Forex broker comparison table over at www.tradeforexfromhome.com so you can look quickly and easily to see which broker offers the best options to open an account with.

Will be looking for some more tips and resources for you in addition to my own!

Good Trading – To Your Success.

Best wishes

Annabel

Whilst researching the Forex trading market and looking around for products and services to recommend to learn Forex trading, I came across this press release.

The article mentioned about a free signup period – I’m not sure if that offer still exists. It looks like a forum where you can have your say about the Forex products, books, tools, systems etc you have used and what you thought. From what I can tell its an honest take on the whole market, giving you the cold hard facts about this industry.

It has a rating system too from Forex broker reviews to software and everything inbetween.

Here’s a link to the full article so you can read more for yourself:

http://www.prweb.com/pingpr.php/U3F1YS1aZXRhLUxvdmUtU3VtbS1UaGlyLVNpbmctWmVybw==

Hope the article helps!

Oh and don’t forget you can get an insight into which Forex brokers offer what by clicking on Forex Broker Reviews

Good Trading – To Your Success!

Best wishes

Annabel