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Information Overload Opposes Forex Success

One of the very best things about the Internet is also one of the very worst things…

Too Much Information!!!

With so much out there on any topic, it is often confusing to find the “truth.” Perhaps the MOST difficult topic to find the “TRUTH” on is online forex trading.

I just went to google and searched forex trading & discovered there are 102,000,000 pages out there. I’d be willing to bet that perhaps a few HUNDRED actually teach you something about how to trade.

You read that correctly…perhaps a few HUNDRED!

I’m not being cynical here, that’s how much BS there is out there about forex trading online.

A lot of it’s also good information, just not much of it will actually teach you to actually trade forex.

Beauty in Simplicity

The ugly truth is that most forex trading courses & software programs aren’t designed to get you trading. They make money by selling you one course, then another, then another, and so on…But you never learn how to actually trade, you keep chasing the carrot & never reach the goal.

It’s Easier than You Think

Forex trading isn’t complicated. There are several “legitimate methods” for online forex trading out there. But perhaps the biggest mistake a forex newbie can make is to learn them all, then try to make his own “killer system” from what he’s learned…

This is FOREX SUICIDE!!!

If you try to combine a bunch of different systems you’ll encounter one of  two problems:

1. You’ll eliminate something that works
2. You’ll create a new “system” that contradicts itself (i.e. trades can rarely line up, cause it’s so complex).

Forex Simplicity

All you really need to succeed with forex trading is a trading method that works, and taking some time to master that system.

You’re not going to be an expert at anything the first time you try. The first time you rode a bike, you fell off. The first time you drove a car wasn’t the smoothest. The first time you had sex probably wasn’t the BEST…

Fortunately I’ve made things super simple. If you haven’t already studied & mastered Forex Sailing, I recommend you do so now. It’s a free method that you already have access to, as my way of saying “thank you” for subscribing to rapidforex.com.

I’m also here to help anyone who’s serious about mastering forex trading. I spend the majority of my work day every day helping people understand how to trade.

Forex trading has given me the lifestyle of my dreams. I’d love to see it give you the same

 

Posted in Forex Trading Mindset

Valuable Forex Information | Fundamental Announcements

Fundamental announcements are important pieces of forex information because they affect forex prices significantly (often preceded by a tight sideways consolidation in forex charts as forex traders wait for the fundamental announcement).

To monitor forex fundamental announcements, I use the free forex economic calendar at fx360.

A fundamental announcement is a report released by a country to announce its recent economic performance. This is important forex information for trading. There are about 14 different reports that the major Forex players release to describe the economic situation in their countries.

Fundamental announcements reveal the relative strengths of a country’s performance in a variety of areas and can shift the value of that country’s currency.

Fundamental announcements, therefore, are the main reasons for large price swings and breakouts in the currency market.

Each country has a wide variety of forex information it releases in its fundamental announcements.

Some examples of the most widely released forex information are:

1. GDP (Gross Domestic Product): The total amount (expressed in dollars) of the goods and services produced in the country. GDP includes goods and services produced by private industry as well as goods and services produced by public industry. GDP is usually expressed in real terms (that is, prices are indexed relative to some year in the past such that GDP does not also include inflation).
2. CPI (Consumer Price Index): The CPI reflects the relative price of certain consumer items like food, clothing, housing, transportation, and energy. It is indexed to provide a measure of today’s prices compared to prices at some other time (e.g. 1983 or 2000).
3. PPI (Producer Price Index): The PPI reflects the relative price of certain items used by producers in the production process. The PPI includes such items as raw materials and energy. Like the CPI, the PPI is indexed to provide a measure of today’s prices compared to prices at some other time (e.g. 1983 or 2000).
4. Unemployment rate: The unemployment rate is calculated by dividing the total number of persons seeking employment by the total number of persons who are employed. The unemployment rate reflects the percentage of people who want jobs (and are actively seeking jobs) but are jobless.
5. Personal income: The amount of money that all of the persons of the country made in income. Per capita personal income, another measure, is the total amount of income received divided by the number of persons in the country. Like GDP, personal income is usually expressed in real terms (that is, dollars are indexed relative to some year in the past such that personal income does not also include inflation).
6. Consumer spending: The amount of money that all of the persons of the country spent (the amount of income that was spent on consumer goods such as food, clothing, housing, luxury items, etc.). Like GDP and personal income, consumer spending is usually expressed in real terms (that is, dollars are indexed relative to some year in the past such that consumer spending does not also include inflation).

Other forex information released in a fundamental announcement includes industrial production, capacity utilization, retail sales, money supply, current account balance (the balance in a country’s international trade account), and government deficits.

Not all fundamental announcements, however, move forex prices. If the fundamental announcement does not reveal any new forex information about the country’s economic performance, then the value of that country’s currency will likely not change. In this case prices would not break out of the consolidation, but rather would slowly return to the previous trend.

When a fundamental announcement from a previous trading session moved the market to a new price and the new fundamental announcement is only repeating that price move, then the market will likely not respond to the fundamental announcement with a break out. In either case, prices would likely continue to move in the direction of the trend that existed prior to the consolidation.

Posted in Fundamental Announcements