Forex Strategies

Selection strategies in Forex Trading is very important, because our strategy is determining decide our fate in the future. In the world of forex trading there are many types of commonly used strategies for trading, including hedging strategies, strategy intraday, swing trading strategy, scalping strategies, news trading strategies, etc.

At this time I wanted to share some of the right strategy to get good results. However, at the time of trade, there is the possibility that any system will succeed in the long run if not used in connection with a solid money management either.


Full hedge Carry trade
This strategy involves opening a trade with a positive carry and hedging it with a broker that does not charge the carry.

Risk free arbitrage with spread betting?
I found there is a risk free arbitrage between spread betting in British pounds and hedging the same position with a standard forex broker.

5 / 8 Cross over strategy
This is a very simple strategy that involves buying and selling currency pairs when the 5 exponential moving average crossed the 8 EMA.

Simple Trendline Strategy
This trading strategy involves using Trendlines as buy and sell signals.

This information can I give to you, hopefully this information useful.

Wolfgang Flottl and Helmut Elsner, the financial scandals at the Bank für Arbeit und Wirtschaft AG (BAWAG)

In forex trading we would never make a mistake and cause small and large losses in Demo or Real account. We introduce to you about two people who cause harm to a large bank in Austria that is the Bank für Arbeit und Wirtschaft AG (BAWAG). Losses due to foreign exchange transactions. Both men are Flöttl Wolfgang and Helmut Elsner. The total losses caused by them are for 1.4 billion euros (equivalent to $ 1.97 billion today - 2008). Event is known as the Refco scandal.



BAWAG Profile
Bank für Arbeit und Wirtschaft is a bank in Vienna, Austria with its mission as serving the Commercial banks banking, Investment banking, Private banking and asset protection clients. Established in 1922 and on October 1, 2005, the bank's merger with investment institutions Österreichische Postsparkasse (PSK) and the name was changed to "Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse AG", abbreviated as BAWAG PSK Actually the majority of shares Österreichische Postsparkasse (PSK) has been dominated by BAWAG. But not until the year 2005 the merger occurs.

BAWAG nearly bankrupt Refco scandal in 2005 with the receivables not collectible for 425 million, demand deposits and bonds bilyet In total for a 1.4 billion Euro for Forex transactions. The person is a party related to the internal Flöttl named Wolfgang and Helmut Elsner.

Unable to survive because of the large losses that the U.S. investment firm Cerberus Capital Management bought BAWAG with funds of 3.2 billion pounds.

Refco Profile
Refco is a futures brokerage firm that trades including forex, index and commodity. Founded in 1969 under the name "Ray E. Friedman and Co.." or shortened by Refco. In 2005 the volume of transactions Refco reached $ 4 billion in the year 2005 with the number of customers reached 200 thousand people. Refco also included in the list of brokers on the Chicago Mercantile Exchange

Scandal Wolfgang Flotti & Helmut Elsner

Financial scandals that began on October 10, 2005 where the CEO (Chief Executive Officer) and concurrently the leader of Refco, Phillip R. Bennett hid the $ 430 million without the knowledge of investors and auditors. In April of 2006 files Bennett crimes known customers from Bawag PSK Group (a member of the investment firm / hedge fund Liberty Corner Capital Strategy, which borrow money Refco). Can be concluded Bennett borrow money to BAWAG. Bennett handed the money to the $ 430 million investment company Ross Capital.

Wolfgang Flottl was a trader in the Capital mentradingkan Ross Bennett funds of $ 430 million. Before the public knows who carried out embezzlement Bennett, so Bennett did loan money again for 350 million euros to BAWAG to close the $ 430 million. BAWAG internal parties who approved the loan ceiling is Helmut Elsner Bennett. Problems began when the investment made by Wolfgang losers. This is complicated processes occur. Finally, Central Bank of Austria and the Financial Market Authority bodies know that something is wrong and investigate BAWAG's involvement with Refco.

Bennett finally arrested and ordered to pay all his debts. Overall Bennett, Wolgang, and General Director of BAWAG Helmut Elsner was arrested the authorities.

Because the act of speculation and fraud that hurt the bank BAWAG (largest bank in Austria 4), in the end (derived from AustriaTimes) Helmut Elsner and Wolfgang Flotti each sued for 9.5 years and 2.5 years in prison.

BAWAG bank scandal eventually brought a total of 9 people charged into custody. The huge losses experienced by BAWAG result of this company sold to Cerberus Capital Management LP in 2007.

Here are the mistakes made by Elsner causing heavy jail sentence:
1. Helmut Elsner banks lend funds to the U.S. futures are at Refco Inc. when it was in the bankruptcy.
2. Helmut Elsner was also accused guilty of lending money to Wolfgang Flotti because borrowing is based on risk and without liability. More than that, Elsner did not report the amount of borrowed funds after the funds had been loaned for speculation measures. He is also guilty of having received bonuses and retirement benefits that should not be accepted if from the beginning he had caused considerable losses.

As for Wolfgang Flotti not described in detail the action he did. However, as a hedge fund manager, he was prosecuted for actions that do not use the funds properly, fraud, and fraud in the reporting.

However, despite all that, according to AustrianTimes, Flotti Wolfgang Helmut Elsner and still have the right to request review of their case.

Forex Terms

At this time I want to tell to you about the terms used in forex trading.

Alligator

is a concept of technical indicators from Bill Williams to determine price trends. Is a combination of three (3) fruit and the Moving Average: 5,8,13. You can use it on the graph M30 (30 minutes) & H1 (1 hour). This indicator can be found on the MetaTrader software.





Technical Analysis
is an analysis in Forex trading to measure price movements over the price graph. The things that should be known from this technical analysis is the trend, saturation, support, ressisten, and Pivot Points.



Fundamental Analysis

is an analysis in Forex trading to predict price movements based on fundamental news. News here in the form Fundamental economic news, affiliated, and security that affect price movement.



Buy

is the position in Forex Trading for the Buy. Condition is if the price was going up significantly then you can open a Buy position.



Fibonacci

is a branch of the particular technical indicators to determine areas of support-ressisten. The most famous and easy to use the Fibonacci Retracement. Other families are Fibonacci Arc, Ekspansion. Fibonacci device you can also find the Metatrader software.



Forex

is an investment that trade one currency with another currency. Is an abbreviation of Foreign Exhange or exchange foreign currency.



Leverage

Is the leverage in Forex trading, where the comparison factor will be multiplied by the contract size.

Example is 1:200 with a mini contract is 10,000 margin account is used (1:200) x 10,000 = 50 units traded currencies.

For example an open position USD / JPY the margin used is $ 50. If trade with the GBP / USD then the margin is used for 50 Pounds Sterling. If converted to dollars is 50 times the rate of GBP / USD. Eg rate GBP / USD is at 1.4000 rate. Then used margin is 50 x 1.4000 = $ 70

For Standard accounts, contracts used by 100,000 Leverage is 1:100. The average opening of accounts per lot is $ 1000.



Margin

is guaranteed in forex trading. This term is associated with leverage. If Leverage 1:100 for mini accounts (10,000 contracts), the margin is used for 100 units of currency. Trading USD / CHF with a margin of $ 100. Trading EUR / USD to 100 euros or $ 130 if the rate of EUR / USD when it is at 1.3000.



Pip

is the value of 1 point rise or drop in price movements. For a mini account, 1 point is worth $ 1, for the standard account is $ 10.



Ressistent

are the points that are above the current price. Point of support can be drawn from the line at Fibonacci Retracement Time Frame H1 & H4.



Support

are the points that are below the current price. Point of support can be drawn from the line at Fibonacci Retracement Time Frame H1 & H4.



Zig Zag

is a technical analysis tool to determine trends and support-ressisten prices.

Euro Holds Most Of Relief Rally

* US Q4 GDP revised lower to 5.6% from 5.9%
* University of Michigan consumer sentiment steady at 73.6 in March from Feb
* Merkel: Europe isn’t in the position to solve such a problem on its own
* Greek central banker: Will not need to use aid
* ECB’s Bini-Smaghi: EU/IMF plan not ideal solution
* IMF: Always ready to consider members’ requests for aid
* S&P affirms Portugal’s A+ rating
* South Korean Naval ship sinks near border; early reports of N Korean attack downplayed

* IMM specs short a record 75,000 EUR contracts
* US equities close virtually unchanged
* US yields ease slightly; 2-year note 1.06; 10-year note 3.85%
EUR/USD closed at its highs Friday afternoon, around 1.3423, underpinned late in the day by news that speculators are short a record number of EUR contracts on the IMM. Narrower Greek yield spreads over Germ,an bunds helped as well as Trichet muted his earlier criticism of IMF participation in the Greece safety net.
Central bank offers are seen at the 1.3430 area, just below the 1.3435/45 level which defined the base of the range for nearly a month. Large stop-loss buy orders are clustered around the 1.3465 level.

USD/JPY took a breather in US trade, consolidating recent gains after stalling below 93.00. Heavy offers are seen at the 93.00 level and again toward 93.50. US funds remain buyers on dips to the 92.30/40 region.

AUD/USD was pressured by profit-taking today with many macro accounts selling long AUD. covering short EUR positions. AUD/USD fell to 0.9002, holding above the 0.8994 level which is the 38.2% retracement of the 0.8575/0.9250 rally.

Greece Test Market

Expect Greece to issue a quick EUR 5 bln in debt early next week to take advantage of the market calm after the EU/IMF deal, the FT reports.

A successful sale should further calm the markets and could prompt a more serious short-covering rally.

The market held below the first resistance point of any importance at 1.3435/45 on Friday. 1.3530/40 is another significant area. Stop-loss buy orders are perched at 1.3465 in considerable size, traders reported on Friday.

I Call It! Triangle Double Combo Fibo

Here is one common technique I use to predict a currency movements. I call this technique Triangle Double Combo Fibo. This technique uses a different Fibonacci 2 and using the triangle shape.

The Secret To Forex Trading Success With Fibonacci Ratios

Leonardo of Pisa, is a mathematician who discovered the series "Fibonacci". Fibonacci appeared at the time he was breeding rabbits and find out how many pairs of rabbits he had at the end of the year based on the breeding behavior of rabbits. This is just nonsense that no approach to the FOREX.

Many people regard as the Fibonacci sequence of mathematical abstraction, but it is rooted in the real world math applications. Fibonacci sequence is useful to make us aware and then describe the hidden patterns of the people around us every day.


Then, how could this be applied to investments? Smart investors can quickly to understand that there are hidden patterns in the stock market based on the mass of investors behavior. "Buy low and sell high" and "The best time to buy is when there is blood in the streets" are but two investment aphorisms not only works, but also from the hidden patterns of understanding of investment markets.

The reason that the pattern of investment market very well, and the hidden is because they are "close", and can not be seen. Day after day, hour to hour fluctuations in investment markets can not be predicted with accuracy. But given the overall trends that lasted for a period of time would be longer.

Using the Fibonacci sequence involves a series of numbers. Each of the following phone number is the sum of the two previous numbers. This progress like this 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and becomes infinite. There is a number in that number. For example, take a number; is approximately 1.618 times the previous number. Ancient Greeks found reprehensive amount of 1.618 golden ratio which is the highest essence of balance. This balance is the fundamental strategy of profitable investment

Forex versus Stocks!!

At the time the company is in good condition, then the company earns a profit, and increased stock value. Shareholders can sell their shares for a profit or hold on to stocks for more profits in the future. Sometimes companies will issue dividends - part of the profits distributed to shareholders.

Shares traded on the stock market. Most stocks are listed only on one exchange, although large companies may have several listings on the stock market.

Sometimes stock can be bought on margin, which means that the investor borrows money to buy shares. The level of margin is usually around 50% - the investor can borrow as much as half the value of shares.


The Foreign Exchange Market (FOREX) market is very different from the stock market. FOREX is short-term market. Most traders enter and exit transactions in the 24-hour period - sometimes within minutes.

FOREX is the largest financial market in the world. This is a market that handles transactions worth $ 1.5 trillion every day. In comparison, all U.S. stock exchanges combined handle daily transactions worth about $ 100 billion. Large volume of FOREX means that it is one of the most liquid market in the world. There are always buyers and sellers for any type of currency because the world economy depends on the movement of goods from one country to country. The stock market is less liquid, because the participants may choose to hold their investments or move to another market.