Todays Free Forex Signals 23 09 2022 NEW YORK/LONDON FX SIGNALS – Telegram Signals – (Reuters) – The Japanese yen soared across the board on Thursday after monetary authorities intervened in the foreign exchange market to boost the battered currency for the first time since 1998, although analysts said Japan may struggle to keep the yen strong.
USDCAD SELL 1.34866
The dollar was last down 1.2% at 142.33 yen. It hit a low of 140.31 after the intervention, having earlier reached a fresh 24-year peak of 145.9 yen. The spread between the day’s high and low for the pair was the widest since June 2016.
North American traders cautiously pushed the dollar higher against the yen after Japan stepped in, but for now, few are challenging Japan’s action.
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Todays Free Forex Signals 23 09 2022
“The market is nervous,” said Steven Englander, head of global G10 FX research and North America macro strategy at Standard Chartered (OTC:SCBFF) in New York.
“There is a risk that Japan becomes a permanent presence in the market for intervention to be successful. Not that Japan has to step in everyday, but the market has to be afraid of intervention,” he added.
The euro, pound, Swiss franc, the Australian and New Zealand dollars, among others, also plunged against the yen.
“We have taken decisive action,” Japan’s Vice Finance Minister for international affairs Masato Kanda told reporters, responding in the affirmative when asked if that meant intervention.
Confirmation of the intervention came just hours after the BOJ decided to maintain low interest rates to support the country’s fragile economic recovery.
BOJ Governor Haruhiko Kuroda told reporters the central bank could hold off on hiking rates or changing its dovish policy guidance for years.
In contrast, central banks around the world, most notably the Federal Reserve, are raising rates aggressively and the policy divergence has weighed on the yen.
However, analysts said Japan can’t keep propping up the currency on a sustained basis.
“Over the next three to six months or possibly even longer, as long as those diverging paths of monetary policy are still in place and those differences persist, you’ll continue to see a weaker yen,” said Brendan McKenna, international economist and FX Strategist at Wells Fargo (NYSE:WFC) Securities.
Even after Thursday’s moves, the dollar is still up 23.6% against the yen so far this year, on track for its largest yearly percentage gain in 43 years.
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In a busy day for markets, the pound pared the small advance it had made in London trading after the Bank of England raised interest rates by 50 basis points.
The hike was in line with expectations, although markets had been pricing in a small chance of a larger 75 bp move.
Sterling was last down 0.2% at $1.1251 , not too far from a fresh 37-year low of $1.1213, hit in Asia trading.
The euro was little changed at $0.9832, recovering from a new 20-year trough of $0.9807 hit earlier in the global session.
The dollar index, which measures the greenback’s value against a basket of six major currencies, slipped 0.1% to 111.32, sliding from a 20-year high of 111.81 hit early in the day following the conclusion of the Fed’s policy meeting on Wednesday.
The Fed issued new projections showing rates peaking at 4.6% next year with no cuts until 2024. It raised its target interest rate range by another 75 basis points (bps) overnight to 3%-3.25%, as widely expected.
The dollar was already supported by demand for safe-haven assets after Russian President Vladimir Putin announced on Wednesday he would call up reservists to fight in Ukraine.
Separately, the Swiss franc tumbled after Switzerland’s central bank raised rates by 75 bps, when some had talked up the possibility of a full percentage point move.
The dollar and euro both climbed roughly 1.2% against the franc, with the greenback last at 0.9783 francs and the euro at 0.9619 francs.
The Norwegian crown eased against the euro and dollar after the country’s central bank hiked interest rates by an expected 50 bps, and signalled a more gradual approach to tightening ahead.
The euro was last up 0.5% at 10.2203 crowns, while dollar rose 0.3% to 10.3955.
If you open short on EUR/USD of size 2 lots you will be shorting 200,000 euros. One pip
will be around 20$. Magic of leverage (and the curse same time…).
There are also smaller base sizes like:
1 mini lot (0.1) = 10,000 units of base currency
If you open long position on EUR/USD of size 0.1 then you will be long with 10.000
In MetaTrader4 it will be as Volume list like:
• 0.1 (one mini lot)
One pip will be here around 1 euro.
1 micro lot (0.01) = 1000 units of base currency
In MetaTrader4 it will be as Volume list like:
• 0.01 (one micro lot)
Going long with 0.01 lot on EUR/USD means that you are long 1000 euros. One pip is
here around 0.1 euro.
1 nano lot (0.001) = 100 units of base currency
In MetaTrader4 it will be on select list like:
• 0.001 (one nano lot)
• 0.002 (two nano lots)
Fund your Forex account
When you have registered an account, you can add funds. It is very easy. You can start with few hundred dollars on mini account. Minimum amount is different for each broker.
Test platform on demo
Before you decide to open real account, test a platform on demo (especially if you are new to Forex trading). You will have some virtual 10k or 100k to play with on demo. Test how order placing works, how to place stop loss etc. You do not want to learn these things with your real cash. When to Take Demo Trading to a Live Trading Account
Practice forex trading – demo accounts
It is hard to make profit in Forex that is why practice is so important. You have now many options to practice your trading skills and learn to trade. OK, but what is best? Do you need trading simulator? Paper trading is a good way to start – not real paper but with help of demo account of course. We talk about paper trading when you are trading with virtual money. Years before simulators you simply put trades on a piece of paper. When you felt ready to trade on real account, you made a switch. In 1930’s it wasn’t that easy to open brokerage account, besides fees for opening and closing trades were also high. Paper trades were good solution – you could learn how to trade without losing real money.
Demo trading in Forex
Now when we are talking about paper trading, we mean trading on simulators. Of course, you can use pencil and paper, but trading on simulator is much better way to go. You can easily open a demo account and get access to trading platform so you can test it. Your demo account is funded with virtual money and you can place orders.
The main advantages of Forex demo trading
The main disadvantages of demo trading
• you do not put at risk real money – you react different when it is real money
you are losing
• you make trades that you normally wouldn’t make with real money
Is paper trading a good way to learn how to trade?
Generally, yes. If trading Forex is something new for you or you want to test totally
new strategy then yes, it is ok. I would say that demo trading is very important when you want to start trade on Forex.
As you know, on currency market we use leverage. There are different position sizes. The basic one is 1 lot. You can open position as big as couple lots (for example 5 lots), or position smaller then 1 lot – this will be micro lot or nano lot. If it sounds not familiar, then you have to test it on demo account. Thing is, with leverage it is very easy to blew whole account in matters of few minutes. It is crucial to master how to manage positio size and understand well how it works. Leverage can be your best friend or the worst enemy.
Trading and psychology
When you are on demo and you switch to real money trading, you will notice difference. Now you care. When you are losing money, you feel fear. You hesitate to close losing position “because it may turn around” (yeah, it always does 😉 ). When your
trade is in profit, you are greedy. You hesitate to close position, because it may go even higher. Hell, this may be a trade of your life. This kind of emotions occurs only when you are trading with real money. You will learn over time that most of your loses come from not following trading plan and allowing emotions to play too big role in your decision making process. You are not able to switch off your emotions. On the other hand, you must be aware of them and not allow to take control. That is why you need to have your trading plan on paper. Write down as many things you can in your trading plan – that way you will minimize impact of emotions in your trading. Open a Forex Account
Ok, so let’s see where demo trading is in trader education process.
Demo trading in trader learning process
1. Open demo account
2. Build strategy and trading plan
3. Test different position sizes – add to trading plan size of positions. Test different
currency pairs, different time frames.
4. Test your trading plan – set goals such as do not lose money in next 3 months etc.
When you are profitable on demo
5. Open real account
6. Fund account with money you can afford to lose
7. Set realistic goals and trade according to your trading plan
8. Trade smaller positions!
When you are profitable…
9. Increase position size
How to learn to trade forex
We’ve learned about forex trading basics, about demo trading. Question still stands – how to learn to trade forex? There are few steps you can take to learn it. Below I mentioned most important ones.
Find a mentor
It is not an easy task to find mentor. In most cases, there are no ads or other information about mentoring possibility. Initiative should be on your side. If you follow trader you like, then you can ask him about mentoring. Some will say no because of lack of time. Others do not like to mentor because not everyone has teaching skills. Still, finding a mentor is the fastest way to learn to trade Forex. With mentor, you will avoid many mistakes and sometimes save many years of trial and errors. Two important things to remember. Do not approach mentor if you don’t have basic knowledge about trading. It is not a role for mentor to guide you through the basic stuff. You want mentor to teach you how to trade successfully, not to teach basics. Another thing to remember. Check different styles of trading. Decide which one suits you best. Do you like technical analysis more? Then look for mentors who trade mainly with TA. You have a job and you want to learn about long term trading? Then do not look for help from day traders, just go and look for other long-term investors.
Learn to trade on demo
Before you move to trading with money start with demo. Play with different currencies, instruments. Understand what leverage is all about. See how spread is different for different forex pairs. Test different trading strategies. trading books (not only about forex) Of course, practice is most important but books will give you new ideas how you can trade forex. There are so many books about trading, that it is hard to recommend only few. One important things about books. Reading more trading books does not make you a better trader. It can give you some ideas, you can learn something new but you must practice this in live market. Just a quick reminder, because I met many aspiring traders who were reading too much and trading too little 😉
Go to courses
Yes, many Forex traders are losing money. Brokers know that. That is main reason why they organize free trading courses (online and stationary). Often they hire well known traders who teach you about trading. Of course, not every course is free. Sometimes you can find good trading course which costs quite a lot. Decision is yours. was a knowledge based on trading experience and it helped me to jump into another level.
Follow other traders on twitter/fb
Social media are great. There is so much valuable information here, better than cats 🙂 Look for traders via hashtags and other search terms. Twitter is a great app. Most people follow here celebrities, but you can find also many
great specialists. Traders too. They share their quick thoughts about market, sometimes they twit some chart or interesting link.
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