The Importance Of Forex Alert
The Spot FX market- Forex has been in existence since a long time
. Back then, all the forex alert, investments and trading was not as simple as they are today. Previously, many of the brokers used to gather investments based on a VOICE MARKETING structure. In this system; the brokers would shout the prices of the stock or the currency; the trades used to take place. It was only after a substantial time that the customized computer trades took place.
However, this was not the technique used in the earlier times. The forex trading method was much different back then; due to lack of technology. In those days, volunteers of the stock brokers used to shout the on- going rates and values and the interested investors would place their orders with them. This was a tedious work and there used be confusion as well.
But now, you can take a line connection from your broker and trade yourself as well. This facility, however, comes with an increased risk, as novices as well as experienced investors fall prey to the market swings and effectively incur losses, if they do not monitor their trades, currency transfer and conversion rates properly.
There have been instances when the investors have incurred great debits because of negligibility in monitoring the trades. As the forex professional broker is well versed with the skills required to protect your finances; one should always lay trust on them. After this, it is your personal choice to opt for the method they like.
Apex banking and economic institutes of the country releases figures reflecting commercial and economic status of the country on a daily basis. For instance, CRR Rates, Lending rates, unemployment figures, Non-Farm Payrolls, etc., have an erratic effect on the market when compared with previous data and can drive the market in either side. As a thumb rule, it is important for the novice as well as for the veterans to stay away from the market on the day of such important announcements. These can be studied and analyzed by following forex trading and alerts offered by different software companies which provide real time data and information.
As far as the technical analysis goes, one should be well aware of the stock and currency prices. Also, the prices have to be strictly watched and analyzed. The open, high, low and close are the main restraining factors in any currency values. One has to note it properly; so that one can effectively predict the future happening as well as graphical representations.
After this, the next thing to be undertaken would be the fundamental analysis. In this you have to have a look at the Fibonacci figures to be precise. The currency prices are always affected by the economic numbers that are released by the apex banking as well as the economic institutes if that country. The CRR rates, unemployment figures and more of such things are taken into consideration when disclosing the economic figures.
In the opposite direction- Stop and reverse area. Fibonacci is a very useful tool and method to calculate both this levels. Fibonacci is the sequence of numbers in an arithmetical progression originated and developed by the great master Fibonacci almost 750 years ago. Influenced by nature (rind of pineapple or seeds of sunflower) Fibonacci developed a famous sequence : 1, 1, 2, 3, 5, 8, 13, 21, till infinity. This value is derived by adding first and second number to get third, second and third to get fourth one and so on and so forth or a percentage ratio between the two numbers. This will then be plotted on a chart to get the trend. This is provided by most forex charting software providers, so you need not be a mathematician. This shows importance support and resistance area with each move on the chart. Some more momentum indicators can be added along with this to maximize your profits in both directions.
Using these forex alerts, trading with technical tools and by keeping yourselves abreast with the fundamental aspects one can make your trading run in bumper profits.
by: Fabian Lee
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