After the Bretton Woods Accord came the Smithsonian Agreement in December of 1971. This agreement was similar to the Bretton Woods Accord, but allowed for a greater fluctuation band for the currencies. In 1972, the European community tried to move away from its dependency on the dollar. The European Joint Float was established by West Germany, France, Italy, the Netherlands, Belgium and Luxemburg. The agreement was similar to the Bretton Woods Accord, but allowed a greater range of fluctuation in the currency values
Both agreements made mistakes similar to the Bretton Woods Accord and in 1973 collapsed. The collapse of the Smithsonian agreement and the European Joint Float in 1973 signified the official switch to the free-floating system. This occurred by default as there were no new agreements to take their place. Governments were now free to peg their currencies, semi-peg or allow them to freely float. ... Read more »

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. Retail traders (small speculators) are a small part of this market. They may only participate indirectly through brokers or banks

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he wou ... Read more »

When writing currency pairs, the market uses the following format: EUR/USD = 1.23700, rather than expressing them this way: EUR$1 = USD$1.23700. In the preferred format, the base currency is shown on the left, the Euro in this case, and the quote currency is shown on the right, which is the US dollar.Forex is business! Forex is very good trading. I think we can  win  very big money ! Forex is excelente.

When investors are selling, the exchange rate of the foreign currency tells them how many units of the quote currency they will get for one unit of the base currency. T ... Read more »

Hello my friends,Forex is business,  but you can earn 1.23456  million $

True or false, all technical indicators are lagging?

The answer – mostly true. It all depends on how you define the term, “technical indicator”. If you are thinking of indicators such as moving averages, MACD or RSI, then yes, these are all lagging indicators as they are based on past price action.

But what if I told you that in certain market conditions, there is such a thing as a leading indicator. While it may not get labeled as a conventional technical indicator, it certainly is an indicator in the true sense of the word.

This is not an indicator that will tell you when to buy or sell or even when to take profit. Instea ... Read more »

One of most frequent questions I receive is, should I wait for the retest of a broken level or enter immediately following the breakout? In other words, if a currency pair breaks out from a head and shoulders pattern, should you wait for a retest of the neckline as new resistance or simply enter once the day closes below the level?

While the aneswer is fairly subjective, there are a few “golden rules” that can help you decide whether to enter on the breakout or wait for a possible retest. Today’s lesson will cover three simple rules that should always be factored into your decision-making process.

But before we begin I want to be clear that this style of trading (entering without price action confirmation), is a bit more advanced than waiting for a pin bar to form after the market breaks a key level. So if you are new to price acti ... Read more »

There are a million ways to make money in the Forex market. The key to success in this business is not finding one that works, it’s finding one thatworks for you.

While I started out in 2007 trading nothing but pin bars and inside bars, my “style” today is quite different. Put simply, the way I trade today is much more robust than it was in 2007.Today, I still trade pin bars and inside bars, however over the years I have expanded my trading plan to also include a few choice technical patterns.Why trade these Forex chart patterns in addition to candlestick formations?Think of it like this. Before a developer begins building a mall, big-name shopping stores are signed on in order to provide the best experience possible to shoppers. These are called “anchor stores”.In a similar man ... Read more »

As the Forex Market is so big, there must be room within it for you to make a profit especially as there are so many so-called great trading tools and techniques available.Unfortunately, this is not the case and you need to view this business in a different way to understand why.

As stated, the daily turnover of the Forex Market exceeds well over $3 Trillion dollars. This colossal figure is the total sum of all the transactions traded worldwide on any given day that are initiated by a massive number of participants, each having their own agenda. In addition, some of these Forex traders are large corporations and governments who have substantial budgets at their disposal that may well exceed billions of dollars. They can generate, just on their own, very large movements in currency pairs (spikes) by the sheer size of their transactions and can do so without providing any prior warning to the rest of the ... Read more »

Now you can see just how bad of shape the forex industry is in, with only minor improvements in some areas. This is reflected by the fact that most forex traders lose. At the end of the day forex traders and potential traders are somewhat crippled by the industry that is supposed to be trying to serve them and the vast majority of the information on the internet is of no help. Fx traders have no identity because they spend all of their time wading through literally thousands of variations of technical indicators,  and vendors that do not provide measurable results but are willing to charge high prices to anyone who is financially qualified but still unqualified to trade. In order to avoid or neutralize these risks, traders should always open demo trading accounts and trade micro lots with stops before scaling up to larger lots when using any system or ... Read more »

Forex is business! Forex is very good trading. I think we can  win  very big money ! Forex is excelente.

Ever since I wrote about the Forex Pyramid. I have received a lot of interest in it from both members and non-members alike. This is especially true for members as they are more “in the know” about my trading activities than non-members.

When I wrote that lesson, the idea of adding to a winning position was a new concept for many, and with any new concept or technique come questions. Since that lesson was published I have received hundreds of questions on the topic of pyramiding.

For this reason I decided to highlight a recent trade of mine where I used the pyramiding strategy to pull off a handsome profit. My hope is that by showing you my exact thought process throughout the trade, you will gain a better understanding of what it takes to pyramid one of your own trades.

Let’s get started!

If you do searches on the internet for forex trading systems you will find websites dominated by technical indicators, with no real complete systems available.  These technical indicators and the automated robots that are based on these indicators do not work and forex traders are very tired of this approach, and all of the ensuing frustration. 

The concept of a computer program that executes decisions and trades for you is a great concept. In practice and real trading, these expert advisors and robots do not work and are extreme time wasters. Forex robots are based on the same failed technical indicators. Remember the vast majority of retail traders fail and this is what they use. So it would stand to reason that you would completely avoid robots. Robots do not account for trading sessions, news drivers, trending versus choppy market, and about 10 other variables, ... Read more »

This article will compare and contrast where the retail forex trading industry started and where it has progressed to since retail trading became available to the public. We will examine 4 areas: Retail Forex Brokers, Forex Educational Providers, Indicators and Trading Systems, and Forex Website Quality. In 2000, the CFTC won the authority to regulate forex trading and by 2008 most of the major problems were cleared up related to regulation of the industry in the USA.

When retail trading became available to online traders, the advantages over trading the stock and options market were very clear. Liquidity and leverage were built in. Equity, index and options traders worldwide became immediately attracted to the forex market. As of November 2012 this daily turnover had exceeded $5.0 trillion ... Read more »