Your Questions About Fx Trading

admin answers:

You only need a moving average. 21 cycle or 30 cycle works best.
You use it to establish trend and then you buy at the pullbacks during an uptrend and short at the bear rallys during a downtrend.

You really have to look at higher highs and higher lows vs. Lower highs and lower lows. Other indicators tell you the exact same thing, you dont need to use them

admin answers:

By who? By Allah, yes. By the tax man no. Profits are subject to CGT. If you do it through a spread betting firm, yes, no CGT.

admin answers:

Try www.babypips.com and im not sure about colorado

admin answers:

The only fundamental things that are powerful enough to move the Forex are things that are calamities that are on CNN 24/7 for several weeks. For example, speaking of USD/JPY, look at it on a daily chart starting when the tsunami hit Japan and thereafter, it went down for a while. But as soon as it was old news and people stopped talking about it, well, it went back up again, from what I remember anyway.

To be successful with the Forex, you need two things strategy-wise…
1) You need a strategy. They are NOT as hard to come by as people suggest, in fact, you can select from a list of 8000 of them right here: http://tinyurl.com/3tcla4v
2) Then you need good money management. Even with the best strategy, if you trade too large of lots, or you do poor money management (aka impatience, greed, etc) you’ll blow your account.

I suggest that you open a demo account at the above link, and add ALL of the top 20 strategies to it, and let the demo run for a month or so. If it does well after a month, you can then weed out any of the strategies that didn’t do so well at that point. I suggest following multiple strategies rather than just one, because more strategies = more stability. Any strategy can go bad at any time, no matter how good it’s done in the past. But following multiple good strategies means that if several go bad, you’re still in the green.

If it does well after a month or two and you are ready to go live, then I highly advise you to NOT put a large amount of money in to start. If you have a lot of money, put it in gradually. Start with around $2000, and then let that go for a month or more. IF it is in the green after a month, then add more money if you wish, and gradually increase the lot sizes as you gradually add more money. Never add money in if it has lost money. In other words, never add money to make up for a loss. If the account has a loss, it must make that loss back on it’s OWN, not by YOU adding your own money in! And that takes a lot of patience because some times it can take it a while to make it back, and during that time, you have to wait. So patience is key. But For example, if you have a hundred thousand dollars to put into the Forex, I would say it should take you 6 months to a year to get it all uploaded into the Forex. Because you start with 2k, then let than run a month. And if it does well, then you double it, and let that run another month. And if that also does well, then you double it again, etc. It’s much safer that way, because if you do some horrible miscalculation, most likely you’ll have the loss early when your account is just $2000, rather than lose your whole $100,000!

Also, be sure to go with a no dealing desk broker, like FXCM. I hope all this info helps. If you have any questions, you are welcome to private message me anytime.

admin answers:

Central banks (the Fed) intervene in the market by buying and selling currencies to influence the exchange rate. For example: China is heavily active in this, which is responsible for a good portion of our trade deficit. They devalue their money so that their products will be cheap to the US dollar. In their case, they are actually pegging their exchange rate to the US dollar.

* The U.S. Monetary authorities occasionally intervene in the foreign exchange (FX) market to counter disorderly market conditions.

* The Treasury, in consultation with the Federal Reserve System, has responsibility for setting U.S. Exchange rate policy, while the Federal Reserve Bank New York is responsible for executing FX intervention.

Purpose of Foreign Exchange Intervention:
The Department of the Treasury and the Federal Reserve, which are the U.S. Monetary authorities, occasionally intervene in the foreign exchange (FX) market to counter disorderly market conditions. Since the breakdown of the Bretton Woods system in 1971, the United States has used FX intervention both to slow rapid exchange rate moves and to signal the U.S. Monetary authorities’ view that the exchange rate did not reflect fundamental economic conditions. U.S. FX intervention became much less frequent in the late 1990s. The United States intervened in the FX market on eight different days in 1995, but only twice from mid-August 1995 through October 2003.