FXCM Speculative Sentiment Index’s Success Story on the Euro, Pound, and Swiss Franc, April 22, 2010 -April 29, 2011 | Business Wire

NEW YORK–(BUSINESS WIRE)–

By Kiana Danial
Published: May 2, 2011

Most forex traders use fundamental and technical analysis to try to

predict the direction of the forex markets, and to time their entries

and exits. In the futures market, traders have access to a third tool to

help them accomplish these goals, which provides insight to what the

other traders are thinking—sentiment analysis in the form of positioning

data.

Because the futures market is centralized in exchanges, traders can see

where other traders are positioned in reports such as the CFTC’s weekly

Commitments of Traders report. Unlike the futures markets, the forex

market is largely conducted “over the counter,” meaning that it is

decentralized. This makes it difficult to find comprehensive volume or

open interest data. But DailyFX has taken measures in an attempt to fill

this gap by offering clients access to FXCM

Inc.’s (NYSE: FXCM) proprietary open-interest and positioning data.

The Speculative Sentiment Index (SSI) provides live FXCM clients a

virtually unparalleled view of forex-market sentiment. What’s more, the

SSI is updated twice a day with current information on DailyFX

PLUS. This is in stark contrast to the weekly Commitments of Traders

reports, which only shows data that has been delayed for three days.

DailyFX PLUS is a free signals-and-education website exclusively

available to live FXCM clients.

The SSI reports provide information on how many FXCM accounts are short

or long in each of 8 currency pairs. By following the SSI’s twice-daily

updates, you can see how many traders are entering or exiting the

markets. Many FXCM clients use the SSI as a contrarian indicator, and we

believe that the SSI has been a reliable forecasting tool in the forex

market in the past. Below is the SSI’s success story for the past week,

focusing on EUR/USD, GBP/ USD, and USD/CHF. It should be noted, however,

that past performance does not guarantee future results.

The SSI Diary of Selected Dollar Pairs | April 29, 2011

EUR/USD

In the past week, the majority of FXCM accounts have been short the

pair, resulting in an SSI signal for further gains in the euro/dollar.

  • Price Movement Result: EUR/USD has continually gained all week,

    posting 5 straight days of gains, totaling nearly 300 pips. A trader

    would have been successful in this instance had they followed the SSI

    signal and bought the euro*.

GBP/USD

Similar to the euro traders, the majority of the FXCM Pound crowd was in

a short position for the pound/dollar, expecting it to fall. The

Speculative Sentiment Index suggested going against the crowd and being

long the pair all week.

  • Price Movement Result: The pair surged throughout the week,

    breaking above the resistance at 1.6600 on Wednesday, April 27.

    Following the SSI signals would have resulted in a successful trade

    this week,* but now it may be too late.

USD/CHF

There has been a sustained fall in the value of the dollar against the

Swiss Franc and many traders have been net long the pair for almost a

year. Presumably, the thought process might have been that this can’t be

sustained forever, that the USD/CHF had reached a bottom and prices

would turn around soon. However, the SSI has generally been forecasting

more USD/CHF losses, including a sustained losing signal in the past

week.

  • Price Movement Result: The Swissie has fallen for 8 consecutive

    days. The pair was below 0.8700 on (ADD DATE) after establishing an

    all-time low at 0.8643 the morning of (ADD DATE). The SSI signal was

    correct in this instance, with the USD/CHF having fallen nearly 200

    pips this week.*

*Past performance is not indicative of future results.

Given that FXCM is one of the world’s largest non-bank forex brokers,

the SSI boasts access to one of the largest and may be one of the most

representative samples of the broad retail forex market available. The

SSI derives information from over 130,000 active accounts† in over 200

countries. The reports are available free twice a day on DailyFX+

for all FXCM live-account holders. The public can also view a weekly SSI

report on Thursdays on DailyFX.com.

† An Active Account represents an account that has traded at least once

in the previous 12 months. This information was recorded in March 2011.

About FXCM Inc.

FXCM

Inc. (NYSE: FXCM) is a global online provider of foreign exchange

(forex) trading and related services to retail and institutional

customers worldwide.

At the heart of FXCM’s client offering is No Dealing Desk forex trading.

Clients benefit from FXCM’s large network of forex liquidity providers

enabling FXCM to offer competitive spreads on major currency pairs.

Clients have the advantage of mobile trading, one-click order execution,

and trading from real-time charts. FXCM’s UK subsidiary, Forex Capital

Markets Limited, also offers CFD products with no re-quote trading and

allows clients to trade forex, oil, gold, silver, and stock indices on

one platform. In addition, FXCM offers educational courses on forex

trading and provides free news and market research through DailyFX.com.

Trading foreign exchange on margin carries a high level of risk and may

not be suitable for all investors. DailyFX has taken reasonable measures

to ensure the accuracy of the content herein, however, does not

guarantee its accuracy, and will not accept liability for any loss or

damage that may arise directly or indirectly from the content and your

use of the charting indicator and EAs herein. In addition, the content

herein, including, but not limited to, the charting indicators and EAs

is provided as general market commentary and does not constitute

investment advice.

Read full risk

disclaimer.

All references to “FXCM” refer to FXCM, Inc. and its consolidated

subsidiaries.

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Nial Fuller Teaching Forex Traders How To Trade Forex with Price Action

(PRWEB) July 25, 2010

Nial Fuller educates traders on how to use the art and skill of price action analysis to simplify and efficiently trade the forex currency market. According to Mr. Fuller, price action analysis is the interpretation and implementation of various price patterns that form in the context of daily price movement in financial markets. The approach that Nial takes is that traders need to learn how to “master” one price action setup at a time; this creates discipline and confidence in traders, both of which are necessary for success in the financial markets according to Mr. Fuller.

Attempting to simplify the world of personal financial management might seem counter-productive to some people at first glance. However, Nial Fuller is proving to the world that it is indeed possible to effectively simplify trading and investment strategies through a comprehensive educational system geared towards using price action analysis to trade the forex market, delivered via the internet in a concise package. The price action strategies Mr. Fuller teaches can be used for any financial market; however Nial has chose the backdrop of the foreign currency market to illustrate his concepts because of its thick market liquidity, low start-up costs and ease of access for interested participants.

When asked to comment on what sparked his interest in teaching other traders how to make their trading decisions more effective, Nial remarked, “I simply knew from my own experiences in route to becoming a professional trader that there was a vast amount of irrelevant, ineffective, and overly-complicated information floating around the internet regarding trading strategies. So, after achieving a high level of success in the markets, I decided to take some of my new-found extra time and share my methods with struggling traders and investors because I know exactly how it feels to be in their shoes wanting to learn forex trading, and it isn't fun “. Mr. Fuller went on to discuss how there is a lack of effective educational material on the internet regarding simple yet effective trading strategies, and his services are filling this niche for the many traders out there who are frustrated with their current trading strategies or who are new to the trading world and looking for something solid to work off of.

In sharp contrast to the many automated forex trading programs for sale on the internet today, Nial is providing traders with a method that he says will allow them to develop a unique perspective on price movement which helps them make their own informed trading decisions. One of the primary lessons that Nial tries to get across to his students is the futility of following a rigid rule-based trading method. Mr. Fuller's price action trading methods teach traders how to think for themselves and use discretion in navigating today's volatile forex financial markets.

For additional information on forex or price action trading strategies contact Nial Fuller or visit: http://www.LearnToTradeTheMarket.com

Nial Fuller is a price action forex trading mentor with a decade of profitable trading under his belt. He has worked for major Australian finance firms and managed large funds for private clients; he is the founder and author behind the educational material at his website.

Contact:

Nial Fuller, owner and founder

http://www.LearnToTradeTheMarket.com

Mobile: +61401840083

Forex Trading: Great Opportunity or Scam?

(PRWEB) June 10, 2005

A lot of interest has been generated recently in FOREX trading, hailed by some as the great new investment opportunity. There are even companies running TV infomercials, offering sure fire systems that will bring massive profits in an easy fashion.

So what is forex? Is it something new? The exchange of currencies is said by some to be the world's second oldest profession and as long as there has been two sovereign states that have issued their own currencies, there has been foreign exchange as a facilitator for trade.

Forex, as foreign exchange has been abbreviated to, has been conducted for centuries and has become a global market with a daily turnover according to a recent Bank for International Settlements survey of $1.9 trillion (billion, billion) per day. Essentially it is a global market place with no physical exchange building where all claims on foreign currencies are settled – between governments, corporations, investors and speculators among others. Banks have traditionally been the middlemen who provide the liquidity to this gigantic market, which incidentally is traded on an almost continuous 24-hour basis.

Then came the Internet and suddenly it became possible for everyone to get a piece of the speculative action. Brokers sprouted up with their electronic trading platforms and high 'leverage'. Essentially the brokers lend clients funds to speculate with, 100:1 or in some cases up to 400:1 ratio, or leverage. This means that $10,000 can 'control' up to $4,000,000 in the market. This is far higher than is possible in the stock market.

Many people have been attracted to the possibilities of earning fast profits from forex. There are often sharp movements that can turn your $10,000 to $20,000 in a matter of minutes. You can also get wiped out, but the lure of a fast buck has turned would-be speculators into out-and-out gamblers.

The Internet has also made it possible for the individual to obtain so-called 'charts', that allow them to do 'technical analysis' on their own PCs. The theory is that price movement patterns repeat themselves, so if you have a system of analysis, you can predict a future move in the market.

This may well be the case, but it does not address the problems of the psychology of trading – the fear and greed that drives many to irrational behaviour. People are often taken in by the seller of a system, often paying $5,000 for a piece of software that shows a green light to buy and a red light to sell. However, they don't tell you how to manage your money.

So speculators lose. It has been estimated that 90% of new investors in forex lose their capital in the first year – an appalling figure. What can one do to avoid being a victim? Well, forex is a business like any other business and planning is required. It is also a profession and as such, adequate training is necessary so that you understand fully what forex trading is all about.

Many are prepared to invest thousands in forex trading without really knowing what it is all about. Just think if franchises were offered in a major hamburger chain without the franchisees having a clue how to run a restaurant or even make the burgers. The failure rate would also probably be 90%.

As with all investing, it is all a matter of risk and reward. Investing in Government securities is considered low risk, therefore they carry the lowest return. Increase the risk (the probability of loss on the investment), the higher an investor is rewarded in terms of return. An individual trading forex decides his own level of risk, which should dictate the level of reward. However, in the hands of an inexperienced trader, the two factors are impossible to reconcile, meaning in stark terms that traders cannot control the risk or the reward levels.

People attracted to forex trading often have an unrealistic expectation of what can be earned. To start with an investment of $5,000 and expect to be making $100,000 a year after the first year is unrealistic. It is not impossible; then again, neither is winning the lottery.

If the parameters for trading are laid down and adhered to combined with knowledge of forex trading, success is possible. It does not take much in the way of 'enhanced' returns to be able to double an investment. 26% per annum is required to double your investment within 3 years.

Who is going to teach you? There are some very good courses available, but these will only give you the theory, in itself very important. The ideal way is to have a mentor, or guide to show you the way.

Getting mentored is a wise move because it makes it possible to draw on the experience of a veteran expert and avoid making the common mistakes that cause the unwary to suffer catastrophic losses. After a while under guidance, a forex trader will gain the experience

The bottom line is that forex is not in itself a scam. There are for sure scam artists who prey on individuals' greed as there are in any other business. If it is approached in a sensible and realistic manner and the trader is prepared to work hard, forex can provide a good living both financially and materially.

Steve Pickering is founder and owner of Forex Trader Mentor and has been engaged in the forex markets since 1971. http://www.forextradermentor.com