check this out; I copied and pasted from a blog as I don’t want to spam or give this person hits. Anyone agree to this?

strip away all the fancy indicators, graphs, formualas, analysts, books, gurus, machines, robots, computers, marketers.
whats left? people who want to buy at the lowest possible price and sell at the highest possible price. Currency is currency
and is determined by the strength of the countries economy. The currency I am buyings strength stems also from the strength
of the currency I am using to buy the currency. So strong economy equals a strong currency, a strong currency is relatively stable
and does not fluctuate alot with respect to outside influences. We want to buy strong currency when it is at its weakest and sell it when
it recovers its strengths. When a strong currency weakens, its weaker counter-parts become stronger for a period of time until the strong

• Buy strong currencies at there weakest and sell them at there strongest
For example: You got a tip that the more of the euro would be needed to buy a single US dollar. Therefore you buy a whole bunch of dollars whilst selling euros. Later on when the dollars are at there maximum strength you sell them all and buy back all the euros you sold plus extra. For example you buy the US dollar and sell 0.7500 Euros and then 3 months later it takes 0.85 to buy one US dollar therefore you sell your 1 dollar and collect 0.85 euros. So you initially starting with 0.75 euros invested and now you have 0.85 euros in your

Thats basically it: USD/CAD just means that it takes 1.02 CAD to buy 1 US dollar. If you get a tip that the CAD dollar would get strong and would infact be at 1.01 with respect to the dollar then you have to buy as much US dollars as you can and when the 1.01 point is reach, sell all the US dollars to get back the Canadian dollars. Example:

At this point, you by a lot (100,000 dollars) of canadian dollars because it is getting stronger even though it is weak at the moment. Since you have a 100/1 leverage you only need 1000 dollars to make this trade. Now you spent your 100,000 USD and have 102000 CAD in your bank account.

Fast forward to now where the CAD has strengthened. Now you sell back all your CAD in return for your USD so it would be 102000/1.01 =100990 USD

So you have effectively made 990 dollars just by buy the stronger currency at its weakest and selling it at its strongest.

There is nothing special about the ‘market’… narrow it down and remove all the extra fancy mumjo jumbo and all we have is a couple of people trying to make money off each other. It is impossible for both parties involved in a transaction to make money. Someone always is at the losing end. Ok so we stripped the market down and we have 1 person buy US dollars and selling CAD dollars and we have another poor fellow buying CAD dollars whilst selling US dollars.

1rst guy: Buys a lot of USD/CAD at 1.02 so spends 102000 CAD in the process (100000 USD)
2nd guy: Buys a lot of CAD/USD at 1.02 so spends 100000 USD in the process (102000CAD)

Ok now the market says in a few months the USD will increase in strength and would need 1.03 CAD to buy 1 dollar, what happens??
2nd guy: He is in a dilema, he has 102000 CAD which is worth now less the 100000 dollars which is what he first spent to aquire that money. So in a sence, he has lost 1000 CAD and would have to restart the trading to earn back his losses.

Yep KISS (Keep It Simple Stupid) so why didn’t this blogger do just that.

billions of people buying and selling different types of currencies all with the same goal of generating a profit fro themselves. So in reality, noone is in it for charity. EVeryone who trades in FOREX is in it for the easy money. But why is everything soo complicated…

So the Boj sold yen for profit?

Trading forex is simple but not easy.

This is a misguided idea. The individual is arguing that fundamental trading (news trading/info trading) is not only superior to technical trading (indicators/chart studys), but it is the only way to trade.

First, a “system” is necessary in both fundamental trading and technical trading. If you do not have a good place to enter the market, a stop loss to control the maximum risk you will allow, and a take profit to get out of the market before another major new story influences the price, you are doomed to fail. Money management is essential as well and all of these are parts of a “system”.

Second, I agree that many indicators are mostly hokum. They reinterpret a moving average and represent it as something new. However, they can be usefull tools when combined with an effective system or good technical trading.

Third, fundamental trading is, in my humble opinion, much more difficult then technical trading. “Hunting for news” and then trading on how you think the market will react is VERY DIFFICULT. You have to consider the information, its impact on the market in the past, how important the news is going to be relative to other stories currently occuring, how recent news increases or decreses its accuracy or effect on the market, and how every other trader is going to interpret all of these factors and a hundred more. Now, do all of that in the 5 seconds after the news comes out. Oops, too late, its now on a retracement and your stop loss got hit. Good luck next time :D.

If you are wondering if news is important to forex trading, Yes, very. However, technical trading is a strong foundation for any fundamental trader. Learn how to trade using candlestick patters, strong indicators and kiss systems with good money management. Then…learn fundamental trading. I’m doing very well with technical trading and I’m sure I’m one of many.

(and stay away from the “this indicator is 99 percent effective and you will make eleventy billion dollars in a week”. Your poster probably blew out an account on one of these and is mad at the whole institution of technical trading. )

GL