Undoubtedly one of the most important things to consider when investing in the forex market Forex broker is to choose a suitable fill our needs. As the Forex, an unregulated financial market, allows the proliferation of many companies that offer the opportunity to invest in foreign exchange.
This in itself was not all bad, because competition between these companies has led them to provide better service and perks such as bonuses, advice, Forex education, better operating conditions, etc. However, while this situation has to be born companies whose customer service is not only inadequate but even fall in illegal practices. If we review the specialized forums on the subject see constant complaints from hundreds of customers to dirty practices of some brokers and arbitrary closure of winning positions and even accounts, late payments and retention of earnings and the like.
Therefore, below is a series of practical tips that can be helpful when choosing a good Forex broker – yes there are, of course.
1. The broker must be regulated: This is my number one recommendation, mostly because of security issue. A regulated broker in Europe or North America, must meet a series of financial and legal requirements to be accepted, including a minimum amount of capital to ensure the operations of its customers and transparent practices. In addition, being enrolled in a regulator as the NFA in the U.S. or the UK FSA, there is the possibility of filing a complaint with any problem between the broker and the client. With an unregulated broker. This possibility does not exist.
2. Operating Time: This is an aspect that many people do not consider, but in my case is irrelevant. Not the same a company founded a year ago or less than a broker who has spent years operating in the market and has already made a name in the industry.
3. Country of origin: It is advisable to choose a broker located in a country with a strong financial tradition and that has a strong relationship in this regard. We think so, what is more reliable, a broker based in the U.S. or the UK or one located in a tax haven with lax regulation?.
4. Customer Service: It is important that a broker has a good customer service always attentive to our questions and help solve our problems. For example, sometimes may have problems running on the platform that we incurred losses. In this case, our broker must address our complaint and resolve it promptly.
5. Trading Platform: A broker must have a complete trading platform that offers a good first run, fast and reliable and several analysis tools that allow us to analyze the market, such as graphics, updated quotes, market news, etc. .
6. Methods to add / withdraw funds from the trading account: A broker must have a variety of ways to add and withdraw funds from their accounts, including payment processors like Paypal and Moneybookers. Thus, make sure we have several ways to withdraw our earnings if they have any. In this regard, it is best to avoid those brokers who are notorious for delaying payments.

Perhaps one of the most important aspects of trading is money management. For many traders, especially beginners, this is a strange concept since the majority focuses on finding the strategy “perfect”, ie one that allows them to win all the time, which of course does not exist.
We must first understand that the market will be times when we lose, that’s inevitable, and it is best to get an idea. Basically, the question is not whether or not we lose one day, but we will do when that happens. The logic here is to limit the losses so that they do not have an excessive impact on our balance sheet, ie the end we won exceeds the loss.
This is precisely the monetary management, to manage our capital to that in case of loss, they are not too large. Proper money management strategy allows us to set a maximum loss per trade according to the capital we have. In fact, according to experts, at no time did we risk more than 2% of our account in the positions we have open.
Thus, we make our money go further and increase the chances of being profitable in the long term. Without proper money management, even the best trading strategy will end in failure because we lost probably when they will be very strong.
It’s a proven fact, that even a trading strategy with an average yield of 50% for instance, you can make money for the operator if applicable even basic money management concepts. By contrast, a very successful strategy, yielding up to 70% may fail but we manage our capital and operating properly controlling risk.
Despite its importance, this aspect of trading is one of the least studied by novice operators, which are constantly looking for magical solutions that will avoid losing money. However, many would avoid unnecessary loss, headaches and disappointments if they took the time to learn at least some stories money management principles. At least in some cases may maintain their operating accounts longer.
If we look at trading as a business, which is in fact, we view money management as how to manage the business by controlling the risk at the same time. If we have a company and invest our money without any control or measure, will not be long before we met on the street. In the case of trading, something similar happens.
If we develop a good trading strategy, we take the emotions of our operations and above all learn to manage money from our account, the chances that the market actually generate money for us will be much higher. As in everything related to the market, there are no guarantees, however we can put the odds in our favor, which is what this business is.

If we analyze the trading itself, really is not such a complex activity, especially when compared to pursue a career such as medicine, engineering or law. That is, to become a good engineer for example, requires years of university studies in various branches of science. However, trading is not, does not mean that you should not study or prepare, on the contrary, in comparative terms but does not require the same level of preparation and knowledge of the professions listed above. There are even cases of people who were successful as players in the market and just completed high school.
In this case, the question arises why so few people succeed in the marketplace?
This is an interesting question, and I think in most cases the answer is the psychology of each person. For each trader, the biggest enemy is not the market but the same. It is the psychology that makes many of us enter into the market only a “hunch” without following a logical plan, or close a winning trade too soon for fear of losing the proceeds, or worse, to keep open a losing position simply because of stubbornness or hope that the market will reverse only because we want to.
An inappropriate trading psychology is what leads to losses and to flush cut profits when it should be otherwise. May cause laughter thinking, but how many of us do not leave open a losing position and further added with the hope that at that time the market will move in our favor, which both positions will be compensated and we get lossless. That is a common practice in many beginner traders, and which causes them more losses as the market can go on and on in a certain direction. The logic in a case like this dictates that if we are losing a market position and shows no signs of change, it is best to close the position and take a minor loss.
However, in this case our psychology prevents us from doing that and choose the worst possible way, adding to a losing position and multiply the losses. The interesting thing is that we know that we are wrong and we’re just throwing the money and still do. It almost seems that we lose money on a whim.
Psychology being such a fundamental aspect in trading, it is important to know in depth before starting to operate, and determine what motivates us and what aspects of our personalities can affect our decision to analyze the market and operate. For example, people are very fearful or reckless, or easily change our minds we are stubborn to the point of never admit when we were wrong. The psychology in trading involves knowing also bear the losses and profits, and do not take it personally, but simply as something that can and will happen.
If you still can not do this, it is best not to operate on the market until we changed those negative aspects of our personality that we are to avoid being traders winners.

Perhaps the most common mistake among traders, especially beginners is the search for the perfect strategy, ie one that rarely fails and allows them to earn tons of money in a few months, which should be clarified, there .
This search led many traders to spend hundreds or even thousands of dollars in trading systems developed by “professionals” who promise returns of 90% -95% and earnings exorbitant dedicating a few minutes a day to market. In these cases, the loss is not limited to the amount spent on purchasing the system, but also includes the money lost by the trader using the system to operate in the market.
Be aware that there is no such thing as a perfect trading system that produces almost no losses. The market is extremely volatile and variable, so changing their behavior. In a market like Forex, for example, what works today may not work tomorrow and vice versa.
Therefore, a system that produced steady gains over a given period, in another only causes losses. In general, house trading system works well under certain conditions and under others not so simple. For example, there are excellent systems for markets with clear trends either up or down, while trading ranges (no clear trend), are a failure. By contrast, other systems work particularly well in markets without a clear trend.
Being so difficult to develop a trading strategy that works under all market conditions, probably the best thing for a trader is using several strategies, according to the conditions prevailing in a given time. That is if the market is bullish or bearish and has a XYZ system specially designed for these conditions, the trader can use that system until conditions change.
It is also important that the trader has enough patience to wait for the market just this the right environment to use a strategy, because if you do not have that ability, probably open positions at the wrong time wasting good opportunities.

Also, you must understand that the market is not important just to have a good operational strategy, as there are other equally relevant aspects and more, such as money management and risk management.
A trading system can be extremely effective and succeed in most occasions, but without proper money management strategy in the long run will not be profitable trader and end up losing money. Therefore, rather than concentrate on finding a perfect strategy that can win cash in the market, the trader must put together a portfolio of trading systems suitable for different types of markets and conditions. At the same time, it must develop a comprehensive money management and risk manage their capital, and trading psychology to help you control your emotions in both time loss and gain.

Is the beginning of another month and you know what that means – a new round of interest rate decisions! Here are three reports of interest rate that could give pips if you play your cards right:

Reserve Bank of Australia
First we have the RBA announced its decision Tuesday at 4:30 GMT. Since Australia has been the impression than expected economic reports, but lately, the market junkies are not seeing an increase of 4.75% figure last month.

You see, building approvals fell surprisingly by 7.4% in February, when the Australian bulls is expected to grow 4.2%. In addition, a total of 10,100 workers lost their jobs in February, although the rate of unemployment remained at 5.0%.

And do not forget that the strength of the Aussie as Chuck Norris still give members of the RBA heebie-jeebies. Recall that a strong currency makes exports less competitive and can take its toll on an export economy.
As bad as these reports, however, do not think the RBA actually reduce their interest rates as some bigwigs of the target market.

On the one hand, retail is still collected by 0.1% in February. In addition, many believe that once the dust settles in Japan (no pun intended), the reconstruction will push prices of commodities and help the economy of Australia.

Of course, we never know in what direction will the RBA. After all, the RBA loves surprises. Just keep your eyes peeled for any news, or add new Twitter account RBA to check for updates. And while you’re at it, why not give a Shoutout to my friends Happy Pip, Huck, and Pipcrawler Cyclopip are also in the Universe Twitter

Bank of England
Later in the week is the UK’s Monetary Policy Committee in the headlines. Like what was talking about my past blog, markets are blurred in the direction of the PSM would.

In the minutes of the MPC meeting last seen three hawkskeeters have voted for a rise in interest rates. Andrew Sentance (who will retire soon) I wanted to point rate hike-base 100, while Martin Weale and Spencer wanted to give a 75 basis-point raise. As for the other six guys MPC who voted in favor of a “wait and see the game to measure the impact of high oil prices in the economy.

Month, the MPC This decision has not been made easier. The CPI report was 4.4% in February, which is just above 2.0% set by the BOE, but is also a 28 month high for the data. On the other side of the field of MPC also has to consider the UK ‘s limited economic growth.

After all, William the wedding of Prince only inspire so much expense and good vibrations.
Stay for this because it is bound to get interesting.

ECB
The end of all interest rates next week the action takes place on Thursday at 19:45 GMT, when the ECB announced its decision.

If you’ve been too busy trying to learn how Dougie, you should know that last month, the ECB kept interest rates at a record low of 1.00%. What is more interesting, however, is that EUR / USD still rose by 100 pips because ECB President Trichet was harder than the markets had expected. You see, while members of the ECB raises inflation was only 2.2% at the end of the year, Trichet also said a rise in interest rates this month’s meeting is very possible.

If a rise in ECB interest rates is “very likely”, with an inflation rate of 2.2% at the end of the year, how much more “possible” is now the euro zone ‘s actual CPI March is 2.6%? Not only is the inflation rate of 2.0% above the ECB’s target, which is also the fastest since October 2008! That was way back when Huck was disturbing to see Beverly Hills Chihuahua with her.

It is therefore a rise in ECB interest rates in the bag?
While the odds are stacking up in favor of a rate hike, still I recommend caution in their operations. The ECB has to deal with political concerns in Portugal and Germany, as well as economic imbalances between its regions. Also, if the ECB can get away with pushing the euro higher just by the sound of hard-line, why actually raise rates and make it more expensive for the financially troubled economies like Greece and Ireland to borrow money?

This week, market sentiment toward the dollar was similar to what I feel for the immature children – I hate them! The greenback sell-off in all areas, particularly against the euro and pound.

The only currency that the dollar was able to win was against the yen … that’s not really saying much since the yen has lost practically all of the coins out there too.

Why did this happen?
I think it’s due to the fact that inflation in Europe and the United Kingdom has experienced inflation above central banks in their respective goals! When inflation rises, central banks typically respond by the types of funds, which is bullish for the currency. A news report I read also said that the European Central Bank (ECB) is expected to rates at its next meeting.

In other news, I’ve been getting many comments on my HLHB system. Some of you think that might be more profitable if I can make some modifications. And I agree … So for the next week or so I will backtest the new rules of my system HLHB.

Go with what one of my readers suggested in a previous post of my, here are the changes they plan to do on my system HLHB:
1. Tickets are still based on moving average crossovers. But this time, I want to generate more signals HLHB, so I’ll change my SMA 5 and 21.

2. Replace the Stochastic RSI. I know that the oscillators are like two drops of water, but I will not pay attention to prices that are oversold and overbought. Instead, I use the RSI to confirm a trend.

3. If the RSI is above 50, that means the couple is in an uptrend and should go long. On the other hand, if the RSI is below 50, I take that as a sign that the market is in a downtrend and use that as a confirmation to go short.

4. I keep my filter, but instead of 30 pips, I will be reduced to just 20. So if there is a crossing higher and RSI is above 50, my order will be set 20 pips above the high of the candle beam.
I have also decided to include the three candles of success after the intersection instead of one. Why three? Well, that’s what my 20-pip filter may cover both European and U.S. sessions. Looking back, I realized that I missed a few transactions because of the trend during the U.S. session not maintained in the Asian session due to lack of volatility.

Here are some sample configurations:

The first was a valid configuration to go as long as there was an upward crossing and the RSI was above 50. My entry would have been started just after the crossing of the candle after closed 20 pips above the high of the candle beam. The second also meets my requirements for entry, but it would have been for a short operation.

On the other hand, the last settings you have made void the next three candles after the crossing was not more than 20 pips above the candle.

As for the rules of my departure, I think I’ll keep them as they are. My stop will be set 10 pips below / above the low / high of the candle before crossing the candle and I capped my stop about 150 pips. So I’ll go with whichever is less.

Okay, that’s all. So for the next week or so, I’ll be busy backtesting HLHB the new system. If it shows promise, to pass the test. If not, then I will return to the original HLHB.

When you have a basic understanding of currency trading is an urgent need to grow your understanding further. Of course, currency trading is a broad topic and very complicated. There are numerous currency exchange operators worldwide experts to offer training courses for people who are new to forex trading. A currency trading course as taught the basic skills needed to become a profitable forex trader, such as the simplest form, a) Recognize the basic beliefs behind foreign currency exchange trading b) Identify market trends and find out how to use c) Select the time to open and close a variety of trading positions d) Manage risk and protect open positions e) Translate business and political events that influence the cost of global currency f) To make consistent profits that can build a valuable and balanced investments g) Create portfolio for your car and make your own business approach. Ultimately, it is best to view it as an investment in yourself rather than a cost. These currency trading courses usually occur in small groups and focus more on the Forex market speculation. Just be sure to select someone with a history of profitability and a currency exchange operator.

But whatever you choose, there are certain things that all currency trading courses should really very good offer. 1) General elements and Excellent way to use forex trading courses teach you all the essential elements.

But more than that, the best courses in currency trading will teach you to think for yourself. The best forex trading course will teach the general framework and the best way to think for yourself so you can apply these elements to any situation they are facing. And it should be. Just think about it. If you reach for to become a currency trader effective exchange following a set of directions without effort, everyone would be doing the same too. There should be an excellent balance between the unproven foreign trade and the practical side of buying and selling currencies.

They teach you to appreciate all the nuances practical identification of business opportunities, place orders and closed positions.

This could give useful practical experience and allows you to start developing your own trading system. Three), real-time trading experience to produce calls in real time trading is a crucial part of any course of currency trading. currency trading courses that providing an online trading strategy and a high level of private support are symptoms of an excellent coach worthy investment.

These features will help you prepare for your first venture into the actuality of the world trading currency exchange. The best forex trading courses will provide a bridge between understanding the concept of exchange rate and real trading taking calls for support of his own money. Most courses have a tendency to focus on the best way to trade the U.S. Dollar against other currencies around the world as it is the most well-liked in the currency market.

Four) Building Trust: A currency trading course also be given to both the ease of making their own choices and the confidence to put them into action.
A currency trading course should not be considered a magic secret of the creation of huge amounts of money without any work.

If you want to discover more about becoming a successful entrepreneur, you really should check out forex trading with Peter Bain

The most beloved strategy for analyzing the time of forex trading is forex technical analysis. Technical analysis involves looking at pictures of foreign exchange costs to track trends, compared with fundamental analysis, which deals with elements such as political and economic information to see how that can affect currency prices.

Technical Indicator does not ignore these elements in place, is already reflected in the present value of the currency and therefore no longer need to be considered separately. Technical indicator is also based on two assumptions that other, that history repeats itself and prices move in trends. Market investors tend to react in a predictable and this is reflected in price movements.

In operating the use of technical currency analysis of the basic idea is the trend. A trend is just the general cost movement of currencies. There are three types of trends: up, down and sideways. Trends can be much easier to identify when prices are the letters, because the graphics present information graphically. Currency costs are usually shown on charts as a series of peaks and valleys depending on whether you are moving up or down. When successive peaks or valleys go higher and lower is interpreted as upward trends downward.

The graphics are a basic tool of technical indicators and invaluable in revealing the trends in currency prices. Therefore, all forex traders need to discover how to use them so they can comply with the fundamental principle of technical currency analysis: follow the trend.

AUD / USD has been in a strong run lately, but you know what they say, all good things must come to an end. It seems the couple passed out at 1.0405 and is about to head lower, maybe even break below the rising trend line in Figure 1 hours.
If that happens, AUD / USD could fall all the way to the 1.0200 handle, which is very much in line with last week’s low. That will be my profit target for this latter trade since the fall of potential would reverse when they hit resistance at that level before. I’ll be looking to add a middle position in the area of ​​1.0260 in the case of the couple breaks well below the lower range weekly.

If 1.0400 is actually the beginning, the important psychological level should hold as resistance and maintain AUD / USD to go further.

As for the foundations of my trade, I am counting on the economic reports than expected, worse than left Australia while I was cooking sausage stuffed mushrooms for my friends. Apparently, Australia, the trade balance report a bit scared when markets were surprisingly a trade deficit of A $ 210 million instead of 1.15 billion trade surplus AUD traders expected.

In addition, AIG Services Index released around the same time, showed a decline to a reading of 46.5 in March from 48.7 in February figure, which suggests that purchasing managers in the industry services grew less optimistic in the last month.

I have to see the impact of the decision on RBA interest rates, although as the report does not show both anti-war statements as I had predicted. Anyway, here’s my recipe for pips this week:

Short AUD / USD at 1.0320, stop at 1.0420, profit target at 1.0200.

Once you add it to my position at 1.0260, I’ll be moving my stop to breakeven and trailing it. As always, I ventured to 1% in my position.

“The market is similar to a person with this disorder in behavior that is modeled, but not sensitive.”
Robert Prechter

Comment & Analysis
True confessions! Being “smart” does not mean you will win money in FX
I was on the radio last Saturday to discuss the coins. Unfortunately I had some phone problems and could not finish the interview. One of the things I was going to speak before my phone was cut was the fact that the gentleman in front of me (a pleasant and intelligent man I respect) was absolutely huge demonstration on the Canadian dollar rises. Is it time to start looking in the other direction
This man said on the show how wonderful it was to vacation in the U.S. because things are not so cheap. It was really all excited and proud of everyone apparently wanted to put money to work in their country fair and Canada. It seemed, so I figured it was a foregone conclusion that the Canadian dollar was in a perpetual slide longest running (USD / CAD lower).

What I said about the conditions was true. All numbers are validated. But often when an intelligent man who has been around the area of ​​investment for a long while and are excited little question about Goldilocks is usually a sign we are nearing a top.

When I hear that kind of obvious that comes from any kind of assets or money, they immediately think of Mr. Yin-Yang. [As far as I know Mr. Yin-Yang is still free, the Chinese have not disappeared, however, although they have been trying very hard.

So, to steal a line from the famous film, "say hello to my little friend"

Hope in the face to disappear. The optimism to pessimism ... the wheel turns. We know it does. You have to, is the way it is. The only question is when the spin of the wheel? It usually turns before it is widely recognized for our cause analytical and logical mind against the Newtonian effect validate based on evidence, it is time to turn. [I apologize for that sentence, but could not resist.]
This was the consensus reading of bullish versus bearish speculators of the last commitment of traders report in Canadian dollars:

Bullish Bearish 96% 4%

This bull / bear positioning number suggests that there are a lot of people that comes on the Canadian dollar. Most interesting is the huge number of COT was before the recent new high against the dollar in CAD. Starting this week, probably close to 100% … hmmm.

There is never, never any guarantees in this game. There is never, never, no perfect measure – is the nature of the beast of human behavior and irrational rational that this is so – but I think if we could deliver a single indicator of all we use – and technical foundations – Trust would best. It must be, because it captures the feeling of all fundamental and technical analysis of all players to reach a conclusion yes or no – commercial or not.

The problem for us and our Western analysis is that we want “real” proof of facts and statistics. This mentality has evolved very good reason and served us well in our daily lives. But it’s the kind of mentality that gets us into trouble in the investment world, this is a world in which the most important information can come in the “soft” stuff, where few people are focusing on.

Let me give an example of what I’m trying to say. Suppose you’re a hotshot analyst and asked to be on CNBC with Becky Quick buffet, Joe Kernan and Carl (can not spell his surname) – assessment of accommodation. So, Mr. Hotshot analyst, why do you think the Canadian dollar is near a top? Well Becky, everyone likes the Canadian dollar. There is an acute trust. That’s why.

Nope. That I will not. Becky, Joe, and Carl is pressed to the facts and figures. Economic comparisons of growth, yield spreads, the central bank’s monetary policy, the impact of the QE2, why Canadians decided to get involved in Libya, the latest results of hockey, and deep powder in Whistler against Aspen. Of course not, wanting to make a fool, stick to their principles, and walk off the set and lose those “big fish” credentials, source statistics that blur the brains of most listeners.

This is how the “big fish” analyst game is played. Wow! That guy is very intelligent, learned that Marta? 72.567498% There is a correlation between snow depth of Whistler and duration 14.5786 tendency week the USD / CAD.

What I call the “statistical confidence” game.

When launching rockets into space, or building bridges, or do something in the real world is important, you better be able to play this game well – otherwise people die. But in the investment world, this game seems very overrated and often kills the trading accounts.

In the world of the single currency, thanks to all possible sound reasonable grounds ranging from crude oil prices to what Bernanke had for breakfast, I am increasingly finding that less is more.

If it sounds too smart and try to “be” too clever, you may fill your head with tons of analysis leads to the dreaded “analysis paralysis.” The first sign of infection is that you can not pull the trigger on a trade. And when it does pull the trigger, following an anxiety attack.

As I get older I’m finding that less is definitely more when it comes to winning at forex trading. Damn I’m still learning the lesson itself. I learned this again recently. This is true and a real life example is using me as the subject and unfortunately my customers pay the price of my learning this again.

I decided to subscribe to Reuters 3000 (currently the Eikon platform) for a while so it would make news and analysis in virtually all living and dead assets anywhere in the world 24 / 7. I can even get sum scores of fight when they want. The day I have that system, so they could do more tests and become “smarter” is the day he began to negotiate seriously. And the day I stopped using the system and reverted to my old ways simpler graphical analysis and evaluation of market views basic theme is the day my business began to improve. That’s my confession. And no, I’m going to Oprah about it.

Does this mean that my trade will be good? No. Does it mean Reuters is a bad idea for retailers? No. But I say that less is really more for me, and I bet it’s the same for many of you.

The more we ignore the soft, fill our minds with statistics – the hard, keep trying to sound “smart” and stop taking some time off to sit and think, the worse our trade, and yet we do not know why, because we are doing “everything” right.

So thinking about what my little friend tells me about springing for the Canadian dollar, just maybe it’s time to start looking in another direction. Stay tuned.