Forex Education and Analysis

Tuesday, 05 May 2009
by John Jagerson

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In the last article, on the hedging ban from the NFA, we commented that hedging makes it impossible to profit and only winds up feeding your dealer or system seller an extra spread and rollover payment. This was the same rationale the NFA used to issue the new ruling. During the comment period no surveyed dealers were able to provide any evidence that hedging could enhance productivity or produce profits at all. Despite these issues we were surprised to receive very polar responses to the article. Considering this confusion we felt that it would be helpful to break down the issue into more a more detailed case study.

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Monday, 04 May 2009
By Ryan Teeples

Sadly, the newspapers and TV news shows are full of talking heads and so-called "experts" predicting the future of the market and the new direction of the US economy. Most of these experts and pundits couldn't trade a dollar for a donut. But many of these jokers are telling the world we're at the start of a new bull market in equities, while others continue to preach doom and gloom and predict protracted recession and bearishness.

We who are in the market are left wondering who do believe, and pondering the question: "Is this a new bull market for US stocks or will the down-trend continue?" And if so, why should you as a forex trader care?
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by John Jagerson

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The NFA (National Futures Association) proposed a rule change to the CFTC (Commodity Futures Trading Commission) last year that was approved and will begin applying to forex dealers in the U.S. on May 15th 2009. There are two unrelated features in the rule change. The most controversial feature has to do with "hedging" or hedged forex positions. The second feature has more to do with the conditions that must be applied before a trader's position can be adjusted by a dealer. This article will discuss the changes and why they may not be such a bad thing.

Anti-Hedging Rule
There are some unique trader behaviors in the spot forex market. Some order types ...

Sunday, 26 April 2009
By Ryan Teeples

Here's a second installment in what was a popular article, outlining common mistakes made by new and experienced forex traders alike that cause them to "blow up" their accounts and lose all their money.

Knowing these pitfalls, and the ways to avoid them can help you avoid learning hard lessons. If you missed it, here's the link to part 1: Avoid Losing All Your Money in the Forex.

Here is the next batch of common mistakes, and information to help you avoid them:

Lack of Diversification - Trading only one pair

Often we find that traders who have wiped out their account have focused all their attention on one pair, ...