While scanning the Forex news recently, I noticed quite a few disturbing headlines regarding the proliferation of ponzi schemes in the Forex market…

This week's article will review some of the new regulations affecting retail Forex traders with accounts in the US that took effect in August, 2009. Includes how to use stops and limits after July 31st along with a discussion of FIFO and counter party risk.

Recently, I had lunch with a fellow Forex trader that I met several years ago. During our conversation, I asked him how his trading was going. His answer was "I am still working at getting consistent." I asked him if he had a written plan that included specific trading rules and strategies to accomplish this goal, and he said no. I strongly encouraged him to do this vital task before he took his next trade. I use a mechanical approach to my trading which includes specific rules for trading both a trending market, and a range bound market. My friend continues to look for the Holy Grail, one size fits all type of system that does not exist…

Successful short term Forex trading is the goal of many new traders who enter the Forex markets each year. For them, life begins and ends on the one or five minute chart. It is important to understand that the trend on a small time frame chart may only be a retracement of the primary trend from a higher time frame chart. As a result, understanding the higher time frame trend is an important step in becoming a successful, short term Forex trader.

Both of these are different ways for a trader to enter the markets they are trading that are trending higher. These entries can be used in any market, but certain types of entries will work better in the Forex markets due to the 24-hour trading session. Each type of entry has a set of rules including a method for entry, a first profit target, and a stop loss. Let's examine both of these strategies and explain how and when to use them effectively when trading Forex from the long side…

When I write my articles, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events. The charts provide me with the clues as to where the buyers and sellers are waiting to act in the future based on their actions in the past. The US Dollar Index (USDX) is the main currency chart I watch for clues as to the sentiment of the currency traders of the world, and for the places where battles have taken place in the past that may once again shape the future…

The only way to keep yourself out of trouble in the Forex market, and also profit from various market periods, is to know what trend the market is in and, most importantly, know what the next trend is going to be…