Art of Forex magazine september 2014

Foreign Exchange News, Analysis, Education for Currency Traders

September 2014

The Craft of Mastering Forex Trading

TRADER’S VIEW

WORLD CURRENCY NEWS

Iraqi Dinar, is it a good investment?

TRADER’S CORNER

The course you should explore artofforex.org

GETTING TO KNOW YOUR PLATFORM

Why currency trading can be better than stock trading LEARN

COACH

TRADE

CONTENTS TRADER’S CORNER

FX TIPS & TRICKS

PREVEW TO FOREX TRADING ONLINE TRAINING PROGRAM 2014

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We are excited to introduce the Art of Forex trading course, it is a 8 week course where we go from the basic, the intermidiate and the propietary Art of Forex Strategy.

GETTING TO KNOW YOUR PLATFORM

TOP 5 MYTHS ABOUT TRADING THE FOREX MARKET

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Pertaining to common myths about currency trading.

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WOLRD CURRENCY NEWS Iraqi Dinar, is it a good investment?

Why currency trading can be better than stock trading

EDITORIAL

Portafolio in Perspective

3

Francis Reyes

Portafolio in perspective

Forex Trader / Analyst President Art of Forex

We are extremly excited about Portafolio, for years now

freyes@artofforex.org

we have been crafting a service that can provide the forex

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community the necessary information.

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There are many things in the forex market community that all of lack, and in a effort to answer these needs we decided to launch our forex knowledge service called Portafolio.

So what is Portafolio?

Portafolio is Art of Forex’s collection of Forex services, that ranges from a weekly assessments to our unique and revolutionary Sentiment locator.

Weekly Assessments We look ahead to the market every week, so we can be prepare about what’s going to happen.

Understanding and being prepare is a good strategy to have a successful trading session.

Currency Sentiment Locator Our Currency

AF Magazine Our experts research the market every

lets you know what is happening with

month, and write about interesting situations through the market. AF Magazine is the first one of its kind and has been widely accepted by many.

Portafolio Cafe Since we are also traders, we understand the current situation that a daytrader is faced with every day. We have also gone thru the stage of not knowing what is going on and facing the decisions that we take alone. So we have decided to create a community where

Sentiment Locator, is a unique service that the eight major currencies in real time. It shows what is the actual strength and who is weak in real time, so you can trade with confidence.

We have devoted a lot of time an effort on putting all these services together, so you can get all the necessary information.

We are convinced that our Portafolio will

all of us can share, learn, ask and grow together.

become your Portafolio, and that you will

AF Phone alerts We are using current top of the

be vital for you day trading.

feel part of a growing community that will

edge technology to send you phone alerts. Our alerts are different from other services, it is tide with our revolutionary service that quantifies the actual sentiment The Craft of Mastering Forex Trading

of the market. artofforex.org

2014

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TRADER’S CORNER

PREVIEW TO

FOREX TRADING

ONLINE PROGRAM

2014 A Program that you can follow As part of the program, understanding the different factors and

Art of Forex has devote over 8 years of experience a collection of vital information. A trader need to be hollistic and understand

tools gives the trader the edge to perform very well in the market.

the market in a more active

We devote in this section the understanding of the most used

and logical approach. We have

indicators. These indicators are very well know and its information gives the analyst and trader a wide range of information. Follow us

created a two part strategy, one is call the 4 Dimension Trading Strategy and the other is the

as we talk about these indicators and if you would like to get more

Currency Matrix.

information about or how to get the education that you need visit

strategies follow a very stric rule,

us at www.artofforex.org artofforex.org

2014

Both of this

understand your enviorment and know your surrounding.

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Allow me to help draw a line between trading in the Forex Market and trading in the stock market.

There are some similarities but there are some differences as well. Below is a series of differences that could help you start thinking about looking into the Forex Market as an active trader.

TRADING HOURS

Both the stock market and the Forex market open and close at different times. This alone is a huge advantage. For example, most stock markets operate for 8 hours, and then close until the next morning when it reopens. Trading times for the New York Stock Exchange are 9:30 am to 4:30 pm.

In contrast, there is no downtime in Forex trading. Forex markets operate 24hours a day in 3 shifts, throughout the entire year, choosing between the US, Asian or Europeans Forex trading hours. One can trade currency day or night.

Forex, unlike the stock markets, are not geographically tied down. It is in fact considered

an

over-the-counter

(OTC)

exchange. It can be conducted on a location best suited to the demand and convenience

TRADING MARKETPLACE

of the trader. On the other hand, stock markets are centralized. This means that it is located mainly in one place like New York Stock Exchange (NYSE), in where all trades are entered or exited.

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2014

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GETTING TO KNOW YOUR PLATFORM

WHY CURRENCY TRADING CAN BE BETTER THAN STOCK TRADING?

FINANCIAL FRICTION

The stock market always requires a middleman, which results in additional fees. Every time a stock is bought and sold, a middleman such as a broker or some other entity is always standing between buyer and seller. They make money just to facilitate the trade.

That is not the case with Forex trading. In the Forex market, a trader can buy or sell directly by spot trading because the Forex market is not centralized. Forex brokers in comparison to stock brokers are compensated by the spread without additional commission.

TRADING SPEED

In stock markets a trader has to get his order to the trading floor, and from there, it

still takes several

minutes to be executed.

In Forex markets, a trader can use programs to automatically execute a Forex trade on a Forex trading signal. This makes Forex trading almost instantaneous. The bottom line is that you execute trades faster and there are no waiting times whatsoever.

COMPLEXITY When you think about it, the currency trading boils down to tracking just a few major currency pairs. By comparison, in the stock market there are thousands of stocks available to trade making research and technical analysis quite daunting. The name of the game is to be consistently profitable year after year.

artofforex.org

2014

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FX TIPS & TRICKS

5

TOP MYTHS

ABOUT TRADING THE FOREX MARKET

I get questions all the time pertaining to common myths about currency trading. Here are some top myths that I wanted to share with you.

I

I need a special license to trade currency

No license what so ever is required to start trading. Anyone over 18 years old can open up an account with a currency broker and start trading.

artofforex.org

2014

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FX TIPS & TRICKS

2

You need large investment for Forex trading

There was a time when forex trading was allowed for only banks and large fund managers. That time has come to an end with advance internet and online trading concept. Now a day, you can open a forex trading account with as little as $50. As forex brokers allow high margin ratio, you can trade big size with a small investment.

But you should be careful about using high margin or leverage as it carries a high risk beside high profitability. Almost every forex broker offers demo accounts. You can open a demo account without any deposit.

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A complex strategy is required to be a successful in Forex

2014

The main requirement to be successful in Forex is a self-discipline and money management. There are many traders that make consistent profits with rather simple and old strategies.

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Nobody watches the market constantly. Each trader conducts his transactions when he sees the opportunity, at the time most suitable to him.

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The forex market is rigged

artofforex.org

2014

FX TIPS & TRICKS

4

In order to earn in Forex, you need to monitor the market 24hours a day, without losing time to eat and sleep.

Of course, at the time when he is resting or being busy with something else, he might miss a profitable opportunity. But that is something that might happen to anyone, even to the most expert trader. In addition, each person differs from another. Some people spend 2 hours per day on trading, while others spend every walking minute on their computer screen. It is also important to note, that not even the most experienced professional can accurately predict at any time where the price will go.

A skilled and successful trader is the one who chooses to make his transactions only in times when currency movement is well predictable.

Sometimes you might hear a trader complaining that the market is against them. Every trade they make is a losing one.

They blame the broker, the interbank, the government, the timing. The truth is this: foreign exchange rates change often and are too volatile to be rigged. Forex trading is not for the faint-hearted. Blaming everyone but yourself for bad trades will prevent you from learning and growing as a trader. The only person responsible for your poor trade performance is you.

Franics Reyes & Robert Osorio, Forex Experts

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http://www.yemeneconomist.com

After the Iraq war, many people

and the vast resources of oil

difference

saw in the Iraqi dinar as a good

that Iraq has augmented this

creating even more division

opportunity for investment.

scenario.

and confusion inside the Iraqi

After all, history has shown

The problem that many people

government. And now we are

that after a country establishes

over looked was that; Iraq had

seeing the result of this chaos;

a new government; it opens

a very big internal problem.

the uprising of the different

doors to do business and the

Iraq has many factions that

factions boosted by the help

local currency does tend to

expected a more influential

of countries that want to have

appreciate against others. In

role in the new government,

their hands in the vast oil

this case, the influence of the

and hoped that their people

reserves, and the worrisome

US and its involvement with

could have a voice and an

of the international countries

Iraq could create a perfect

improvement in their quality

where they see the inevitable,

environment for the currency

of life.

This didn’t happen,

the end of Iraq and the

to appreciate at a fast pace,

and more and more their

beginning of a new countries.

artofforex.org

2014

were

shown;

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WORLD CURRENCY NEWS

The Iraqi Dinar, is it a good investment?

The problem that many people over looked was that; Iraq had a very big internal problem.

Iraq has many factions that expected a more influential role in the new government, and hoped that their people could have a voice and an improvement in their quality of life. This didn’t happen, and more and more their difference were shown; creating even more division and confusion inside the Iraqi

where they see the inevitable, the end of Iraq and the beginning of a new countries.

So where did the Iraqi Dinar became so popular as an investment? Why so many people were sold on the idea that by buying the Iraqi currency could lead them to become millionaires?

A few years back, a plethora of “investment” companies that

after the war, the Vietnamese Dong appreciated at a fast pace, and people that have large quantities of the currency found themselves with a large wealth. That was the promise being made, that by investing small or large amounts of money, usually between $100 to a $1000 or even more, they will see a return that will boost their wealth to the sky. Of course, the catch was they have to wait for several years, and they would find themselves with a currency that even banks today label it as of high risk.

Copyright John Stuart/Mira.com

Although most of these investment companies knew the risks; their goal of course was to make the money in the exchange of pennies, sell high buy low. Transactions where sky high, and they were moving the currency like hot commodities.

government. And now we are seeing the result of this chaos; the uprising of the different factions boosted by the help of countries that want to have their hands in the vast oil reserves, and the worrisome of the international countries artofforex.org

2014

sold new opportunities to their investors, came out with this new investment opportunity with a promise of great results. Their selling pitch was a historical event in the 1970’s, the Vietnam war. They reference that event, where

I was asked plenty of times in a 2 year period if the dinar was a good investment, that if I saw this currency as a possibility of a good return.

More and more I try to explain that they needed to do their due diligence, and to get more knowledgable with the social political environment following the news closely if they wanted to go that route.

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When making an investment,

Additionally

you need to

no case where the dinar could

there are several things to take

create and evaluate the ROI

appreciate at the rate promise.

in consideration. You need to

based in true results and not

At the present moment, the

research the macroeconomics

on something that people

dinar is sitting at a point

of the country, you need to

sells, and the most important

where it could disappear or

see the different factors like

thing is to quantify your risks.

depreciate even more.

unemployment, imports and

In the dinar case.

exports, the country interest

The major factors on why

As you can see on the chart,

rates, the way the central bank

this is not a good investment

the dinar is sitting at a range

is handling internal affairs,

are very simple. There is no

that has been there for the past

retail sales, industrial output

socio-political

5 years, and the technicals

and of course the socio-

established,

there

political environment . All of

agreement

between

this is call the Fundamental

factions in Iraq, and there is

Analysis.

environment is

no

are pointing to a depreciation

the

rather than to a appreciation.

Also the technical

analysis of the country and the currency, is vital to make

So, if anyone comes and suggest the dinar as a great

a clear and concise decision.

investment where your $100 can become a “million� in

When people get involve in the

a very short time, do your research, study the currency,

currency market, the previous

read the news and evaluate your consequences. At the

analysis mention is require, in addition there are two other

same time, I raise a warning with the Vietnam Dong.

more analysis that you have to take into consideration.

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2014

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TESTIMONIALS FROM OUR LIVE TRADING SESSION

We have great followers and these are some of the comments that we wanted to share.

“Rare exceptions

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wants to see Forex

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doing a big news

where you they

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Currency trader for

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