Hey guys, it has been less than 2 months since I came back from Hong Kong and tomorrow morning I will be off to Batam for a short trip! I will be coming back on Friday evening, so please trade with caution and care if there is any signals that appeared from my Forex Trading system. Below are the updated news of the current financial market…

The Dollar and yen continue to pullback against major currencies as the US stock markets open higher following announcement of further actions to stabilize the financial markets. Treasury Paulson confirmed that US will spend $250b into financial institutions, including using about half to buy preferred shares of nine of the largest banks. Fed will start to buy commercial paper on Oct 27 and FDIC will begin guaranteeing most new debts and offer insurance on non-interest bearing accounts used by small business for payrolls.

BoJ held their interest rate unchanged at 0.5% and there were several announcements made to stabilize the Japanese financial markets. Firstly, Liquidity in JGB Repo market will be improved as the bank announced it will add floating-rate JGBs, inflation-indexed JGBs and 30yr government bonds to the repo operation. Secondly,  BoJ will lower minimum fee rates applied to the Security Lending Facility from 1% to 0.5% and extend the period of relaxation. Thirdly, the bank will increase the frequency and size of Commercial Paper Repo operations.

Bank of Canada also announced move to increase liquidity in the financial system. Firstly BoC will increase term PRA to be auctioned on Wednesday from $4b to $10b. A new Term PRA facility for primary dealers is announced. For a temporary period, BoC will accept an assignment of non-mortgage loan portfolios as eligible collateral for Large Value Transfer System.

For economic data, UK CPI accelerated faster than expected to 5.2% in Sep. DCLG house prices dropped more than expected by -3.4% . RICS house prices balance dropped from -82% to -84%. BRC retail sales showed -1.5% fall in Sep. Germany ZEW economic sentiment deteriorated to -63 in Oct. Eurozone ZEW economic sentiment also deteriorated to -62.7.

So guys, hope you all have a nice week ahead and of course profitable with forex trading. Cya.

Forex demo accounts are a service provided for free by forex brokers and are loved by some people yet hated by others, why is this so? If I am never going to reveal about the bad part of Demo Forex Trading, you would think that a practice account will always be good right? In this article we will discuss about the pros and cons of such demo accounts and you decide for yourself.

Lets start off by looking at the forex demo account. Forex brokers offer online Forex Trading/demo accounts to help people to get used to their forex trading platforms, let them play around with the platform trading tools and get them real interested in forex trading. Practice accounts not only let you learn how to trade forex for free, which is great for a newbie trader, but it also expand the number of traders in the forex market and on their platform.

I can provide you with unlimited forex trading tips, forex advice and forex trading guide etc, but the most important thing is that you must absorb what you have learned and apply it. It’s just like I can teach you how to fish, but if you don’t apply those techniques properly yourself, you would not be able to fish well.

So the main pro of currency trading is by using a free practice account which allowed people to begin forex trading with ‘virtual’ money until you have the confidence and knowledge to risk your own hard-earned cash. You will be able to learn the forex market, test out your forex trading systems and trading strategies without risking a penny! However, this is not always good news. Why? Here comes the cons…

When trading with ‘virtual’ money, you may feel that you are not using the real hard-earned cash and are more likely to risk on forex trades that you know you shouldn’t and wouldn’t make in the real forex trading world. If you opened a forex demo account, and you happen to win trades(by luck), which shouldn’t be opened at all, your confidence will suddenly be boosted up. A few times of that and you will start to think that your trading skills are up to standard, which are not, and start to take uncalculated risks, trading with your real money. You will then imagine if you can make this much money in demo trading then how good would it be if you were using real money? Then you open a real forex account and deposit your own cash. This is where hell breaks loose. You enter a risky forex trade with your most of your capital, it fails, suddenly your forex career is over and you are left with a significant loss.

Practice accounts are very useful, only if you use it properly, with discipline. Finally, I feel it is good to use a practice account for a few weeks while you learn some forex trading basics and Forex Trading techniques, then slowly start to trade with little capital to build up your trading account.

I would like to open the mindset of the people who wants to make money online besides Forex Trading. During the last few days, I happened to come across an internet marketing blog which has a lot of contents inside and useful stuffs. And the blog owner belongs to John Chow the great!

To me, he is a serious a guy whom you may wish to know as he helps people to make money online through blogging! I like how he share his everyday life and he will post anything that is useful on his blog. From what I know, he shares most of his knowledge and experience in internet marketing. Long time ago, some of my friends has asked me to visit his blog as well, to see how he actually make some big bucks. So now I finally see the reasons for them to be excited about John Chow’s blog.

The website is well done up, with some nice links and advertisement! And of course the most important thing in his blog is sharing with people how to generate online income. It is no doubt I would also want to model his mindset of success in blogging and would want to be on par with him next time! If you happen to be in the internet marketing business as well, you can get a free backlink from John Chow if you review his blog.

Recently, the Canadian Dollar plunged to its lowest levels in over three years, why?? If you have noticed, the prices in crude oil keep falling during these few weeks and reached a low of $77.70 currently from the high of more than $120 when oil prices surged last time. As a result, the Canadian Dollar fell drastically too as there is more than 90% correlation between the oil prices and the Canadian Dollar. As Forex Trading is concerned, the rout in crude oil prices and broader commodity markets led to a dramatic rally in the USD/CAD exchange rate. The Canadian currency likewise fell victim to broader US Dollar strength, as the Greenback was the best performer among the G10 currencies through the day’s clear financial market duress. Further Dollar gains would bode poorly for the Canadian Dollar in Forex Trading rate.

Forex traders should be selling the Canadian dollar against the U.S dollar if this continues. Even if you want to join in the crowd, please follow the Forex System Trading which gives you the signals to short, and not shorting it without having any trading plans. Since the financial crisis has worsen, the demand for oil has dropped and thus the prices reflects it. Until when the financial situation has got better, it will be quite tough for oil prices to reach a high again.

On the other hand, the US Dow Jones Industrials Average recovered from its earlier drop below the critical 8,000 mark, but the 1.49 percent daily decline was the eighth such loss in as many days - the Dow’s worst streak since the aftermath of the September 11, 2001 terrorist attacks. The stock index has not lost for nine consecutive trading days since February of 1978.

Dear forex traders and friends, today U.S President George W. Bush said that U.S has the obligation to help solve the biggest financial crisis ever since the Great Depression. The statement was claimed by him during the meeting with the world’s richest nations. He also said that although U.S is taking actions to restore stability in the financial market as soon as possible, the results will not be realized overnight. The policy makers said they would take necessary steps in order to unfreeze the credit and money markets and ensured that major banks have access to enough cash and able to tap public funds for capital.

The statement seemed to be positive for U.S and it hoped to bring confidence back to the financial market and this may further strengthen the U.S Dollar in Forex Trading if the traders decide to go along with the positive statement. Also, the U.S trade deficit came in narrower than expected at -59.1b in Aug.

In Forex Trading technical analysis, USD/JPY recovers mildly after reaching as low as 97.91. While some volatility might be seen, short term outlook remains bearish as long as 101.40 and 100.68 resistance holds. The fall from 110.66 is expected to extend further to have a test on 95.77 low at least. On the upside, above 101.40 will turn short term outlook neutral and bring some more consolidation before resuming the decline. So traders please follow the signals in my forex system trading that is provided in my FREE E-book. So far, you guys have any problems following it?

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Finally, all of my positions are closed for the day with a total of 510 Pips! Hey there, and it was an intraday trade! To be honest, this was the biggest profit that I have made far for AUD/USD pair in my forex trading career for an intraday trade, within 5 hours. Do you want a forex trading tips from me on how I did it? haha…no secrets actually, I just simply followed my PIPS MOVER™ forex trading system, with the money management rules and discipline. Mind you, I gave that system away for free as I wanted my friends and fellow traders to make money online through forex trading. But instead, my friends called me ‘Crazy Boy’ to give away such a good system and membership for FREE! :(  So how?? I’m a bit hesitated now on whether to sell my forex trading guide which drives so much profits or continue to give it for free? I don’t know but you all better grab my free system and membership before I decided to charge them with fees. Anyway, if any of you find difficulty in understanding my forex guide or trading system, please leave me some comments so that I can help to solve the problem. Thank you and have a nice day~

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Let’s continue from the forex trade that I have posted earlier. When the price broke through the Dan_S S1 line, there was enough bearish momentum to take the price to the Dan_S S2 line, so I changed my profit target for 1st batch and set it to the Dan_S S2 line. YES! there was very bullish momentum to even push the price passed the S2 line, so my target profit was triggered at the S2 line(at 0.6785) and made 269 pips for the 1st batch of trade. I didn’t close all the positions of my trade although I’m quite satisfied with the profits because you can see that a ladder is forming and the price will return to as close as the 4 EMA. So forex trading isn’t that difficult right? Of course you have to follow my trading system rules to get it right. So let’s move on and see if my remaining few lots will be triggered by protective stop or profit target…

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Hi traders and friends, I apologised for posting my trades only until now because I was very busy yesterday with some personal commitments and not forex trading. So let’s discuss what I have done yesterday and if you all have followed the signals from my PIPS MOVER™ forex trading system, I’m quite sure that you have profited a lot from some of the currency pairs. I took this AUD/USD trade because the Yen was strengthening against most major currency pairs. AUD/JPY was very bearish and it pulled down AUD/USD strongly also. Besides, the gold movement was not in favour of AUD. So I followed my PIPS MOVER™ system and shorted AUD/USD according to the stochastic crossed down signal as 4 EMA is still below 60 EMA. The fast MACD followed the trend too. This trade was confirmed by the resistance of the Dan_S Pivot Point(which I created myself). You can get that forex indicator when you subscribed to our FREE daily analysis membership. The price I sold here was 0.7054. The risk to reward ratio for this trade was 1:4 at first, with stop loss 30 pips. Please see my next post for the results.

Equity markets tumbled yesterday despite the Fed hinting on rate cut on or before its October 28-29 meeting as the outlook for economic growth in the United States worsens. The DOW has now lost nearly 900 points this week and the S&P 500 and NASDAQ have lost about 10% over the past two trading sessions. Bernanke said US economic activity would be “subdued” into next year and that the market turmoil “may well lengthen the period of weak economic performance. ”

On the NYSE, the DOW was on 9447.11 after losing 508.39 points. The S&P closed on 996.34, down 60.55 points (-5.73%), closing below 1000 for the first time in 5 years. The NASDAQ finished the day’s trading on 1754.88 with a loss of 108.08 points (-5.80%). Traders sold Treasuries after the Fed announcements on its new facility to purchase commercial paper. Yield on the ten-year note rose 34.9 basis points to 3.488% while the two-year note’s yield gained 15.2 basis points to 1.445%.

The dollar dropped in forex trading last night as the result of the talk of rate cut. As the global economic crisis worsens, we can expect investors to sell the Euro and Sterling to buy back the Yen to return loans. This is the time where the forex markets are seen trendy and a good time to trade. So for those who wants some forex trading tips on how to trade forex, you can get my free ebook with the PIPS MOVER™ trading system to help you profit from the market, which is trendy now.

To further stabilize the credit markets, Fed announced that they will buy commercial paper to support financing needs of corporations. The plan, which is called the Commercial Paper Funding Facility (CPFF) is a radical departure from how the Fed normally operates because the Fed (to this point) has only supplied loan to banks and other financial institutions when secured by collateral.The $99 b daily market of commercial paper has virtually dried up recently which made it increasingly difficult for corporations to raise short term money. Such unstable situations will leave many companies vulnerable. Fed will create special fund to purchase from eligible issuers three-month dollar denominated commercial paper at a spread over the three-month overnight-indexed swap rate.

In forex trading, the actions of the Fed buying commercial paper may increases the strength of the Dollar as that boosts the confidence of investors. But again, we are chartist, and by following the forex trading technical analysis, we do not react to fundamentals but technical analysis. For example, yesterday after RBA cut its interest rate, AUD/USD instead of falling actually rose. As you can see the movement did not move according to fundamentals at all. If you are not sure how to trade forex, you can get my free ebook containing the PIPS MOVER™ trading system and learn how to trade forex from there. I wish traders and friends out there happy and profitable forex trading~