Dynamite TNT Forex Trading System
A Result-Proven Forex Trading System that Consistently Pulls in Your Profits

extracted from Oanda TXTrade (fxtrade.oanda.com/learn/what_is_forex/index.shtml)

Historically, currency trading has been a “closed” market, reserved primarily for major banks, multi-national corporations, and other large organizations. These institutions trade in large transaction sizes and high volumes and it has been next to impossible for smaller-scale, individual investors to participate in an equal and competitive manner.

This all changed however, as new technologies such as OANDA’s proprietary FXTrade platform have made it possible for smaller investors to participate directly in the forex market. By lowering these traditional barriers, the forex marketplace is now open to a new group of forex investors.

Forex trading is rapidly winning favour as an alternative investment opportunity thanks not only to new trading tools pioneered by OANDA, but also because forex trading has several inherent benefits when compared to equity trading. This page lists some of these benefits.

Continuous, 24-hour Trading

The currency exchange market is a true 24-hour market, operating five days a week. Equity trading, on the other hand, is restricted to the operating hours of the various equity exchanges. While after-hours trading for equities has become available to a limited degree through some electronic communication networks (ECNs), there are no guarantees that liquidity will be maintained after-hours or that trades can executed at true “market prices”.

High Liquidity and Greater Efficiency

Key to any efficient market is high liquidity. After all, as a trader, you want to know that you have an active market with plenty of buyers and sellers looking to participate. Trading volumes in the currency market can be one hundred times larger than that of the New York Stock Exchange, and daily dollar amounts traded in foreign currency approaches $3 trillion compared to less than $100 billion for the NYSE. High volumes and “round-the-clock” trading ensures an active market for currency traders and greater liquidity.

The incredible volumes traded in the FX market also contribute to the integrity of the market—it is virtually impossible for an individual or group to manipulate prices. Compare this to the equity markets, where large price movements can be triggered with no warning should a major holder of a stock suddenly decide to reduce their holdings.

Intra-day Volatility

FX trading is centered around a handful of currency pairs referred to colloquially as the big seven. The high volume and liquidity combined with fewer active instruments generates greater intra-day volatility than the equity markets where hundreds of stocks are actively traded. It is this volatility that can be profitability exploited by forex traders.

Low Spreads

Currency trading offers spreads that are much lower than what can be obtained when buying or selling equities, especially during after-hours trading. Although exceptionally tight currency spreads were previously reserved for transactions involving $1 million or more, a shift towards tighter spreads for smaller transactions is gaining traction. Again, OANDA’s FXTrade is an industry leader in offering tight spreads regardless of the size of the trade.

Margin-based Leverage

Leverage—or margin based trading—makes it possible for FX market participants to submit trades valued considerably higher than the deposits in their trading accounts. Typically, margin ratios for trading currencies are higher than those permitted for equities, and this is primarily attributable to the higher level of liquidity within the currency markets.

To illustrate the power of leverage provided through the use of margin, consider a margin ratio of 20:1 coupled with a trading account containing $10,000. This means that you could trade amounts up to $200,000! Trading in larger volumes allows you to take better advantage of even small price movements (but also increases your risk). Read about OANDA’s margin policy.

Profit Potential regardless of Market Direction

By definition, an investor with an open forex position is long one currency and short another. If you determine that a currency is about to fall in value, then you can sell that currency short and go long with another currency. No matter whether you buy or sell a currency pair, however, every trade you make involves the buying of one currency and the selling of another. Therefore, potential exists in the FX market regardless of whether the market is moving up or down.

Short-selling is much less common in the equity markets and there are many rules and regulations that you must abide by when shorting stock. This can make it difficult for you to take advantage of a declining share price or market trend. These same restrictions do not apply to the FX market, thereby allowing you to gain no matter which direction the market heads.

No Commissions or Transaction Costs

A currency transaction typically incurs no commission or transaction fee outside of the quoted spread. This is in stark contrast to the equity market, where commissions for stock trades can range anywhere from $8 to $70 per trade, in addition to the quoted spread.

EUR/USD

We are looking to buy the pair based on TNT signals as long as it remains above the 1.5710 level, provided prices are trendy and not choppy. Our next price target is at 1.6000, followed by 1.6200 and 1.6500.

GBP/USD

We are looking to buy the pair based on TNT signals as long as it remains above the 2.0000 level, provided prices are trendy and not choppy. We are presently reviewing our short-term price target.

USD/CHF

We are looking to sell the pair based on TNT signals as long as it is below the PIPS Weekly Pivot, provided prices must be trendy and not choppy. The next price target is at 0.9500.

USD/JPY

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, provided the global stock market is bearish, and vice versa. For both cases, prices must be trendy and not choppy. Our short-term price targets at 100.00 and 98.00 have been reached. Our next price target is 95.00.

EUR/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the 155.75 level, provided prices are trendy and not choppy, and vice versa. We are still reviewing the Short-Term Price Target for this pair.

USD/CAD

We are looking to sell the pair based on TNT signals once it breaks below the PIPS Weekly Pivot, provided prices are trendy and not choppy. Note that the medium-term price target for this pair is 0.9500, followed by 0.9000.

AUD/USD

We are looking to buy the pair based on TNT signals as long as it remains above the 0.9165 level, provided prices are trendy and not choppy. Note that our short-term price target at 0.9400 has been reached. We now have 1.0000 as our long-term term price target.

EUR/USD

We are looking to buy the pair based on TNT signals as long as it remains above the 1.5710 level, provided prices are trendy and not choppy. Our next price target is at 1.6000, followed by 1.6200 and 1.6500.

GBP/USD

We are looking to buy the pair based on TNT signals as long as it remains above the 1.9940 level, provided prices are trendy and not choppy. We are presently reviewing our short-term price target.

USD/CHF

We are looking to sell the pair based on TNT signals as long as it is below the PIPS Weekly Pivot, provided prices must be trendy and not choppy. The next price target is at 0.9500.

USD/JPY

We are looking to sell the pair based on TNT signals once it breaks below the PIPS Weekly Pivot, provided the global stock market is bullish, and vice versa. For both cases, prices must be trendy and not choppy. Our short-term price targets at 100.00 and 98.00 have been reached. Our next price target is 95.00.

EUR/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the 155.75 level, provided prices are trendy and not choppy, and vice versa. We are still reviewing the Short-Term Price Target for this pair.

USD/CAD

We are looking to sell the pair based on TNT signals once it breaks below the PIPS Weekly Pivot, provided prices are trendy and not choppy. Note that the medium-term price target for this pair is 0.9500, followed by 0.9000.

AUD/USD

We are looking to buy the pair based on TNT signals as long as it remains above the 0.9165 level, provided prices are trendy and not choppy. Note that our short-term price target at 0.9400 has been reached. We now have 1.0000 as our long-term term price target.

EUR/USD

The pair looks toppish on the charts. We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot. However, if the pair breaks below the PIPS Weekly Pivot, we may look to sell the pair based on TNT signals. For both cases, prices must be trendy and not choppy. Our next price target is at 1.6000, followed by 1.6200 and 1.6500.

GBP/USD

We are looking to buy the pair based on TNT signals as long as it remains above the 1.9940 level, provided prices must be trendy and not choppy. We are presently reviewing our short-term price target.

USD/CHF

We are looking to sell the pair based on TNT signals once it breaks below the PIPS Weekly Pivot. However, if it fails to break below the PIPS Weekly Pivot, we may look to buy the pair based on TNT signals. For both cases, prices must be trendy and not choppy. The next price target is at 0.9500.

USD/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the 99.75 level, provided the global stock market is bullish, and vice versa. For both cases, prices must be trendy and not choppy. Our short-term price targets at 100.00 and 98.00 have been reached. Our next price target is 95.00.

EUR/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the 155.20 level, provided prices are trendy and not choppy. We are still reviewing the Short-Term Price Target for this pair.

USD/CAD

We are looking to sell the pair based on TNT signals once it breaks below the PIPS Weekly Pivot, provided prices are trendy and not choppy. Note that the medium-term price target for this pair is 0.9500, followed by 0.9000.

AUD/USD

We are looking to buy the pair based on TNT signals once it breaks above the 0.9165 level, provided prices are trendy and not choppy. Note that our short-term price target at 0.9400 has been reached. We now have 1.0000 as our long-term term price target.

EUR/USD

The pair looks toppish on the charts. We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot. However, if the pair breaks above the PIPS Weekly Pivot, we may look to buy the pair based on TNT signals for small profit. For both cases, prices must be trendy and not choppy. Our next price target is at 1.6000, followed by 1.6200 and 1.6500.

GBP/USD

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, provided prices must be trendy and not choppy. We are presently reviewing our short-term price target.

USD/CHF

We are looking to buy the pair based on TNT signals as long as it remains above the 1.0050 level, or sell the pair if it breaks below the 1.0050 level based on TNT signals. For both cases, prices must be trendy and not choppy. The next price target is at 0.9500.

USD/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the 99.75 level, provided the global stock market is bullish, and prices are trendy and not choppy. Our short-term price targets at 100.00 and 98.00 have been reached. Our next price target is 95.00.

EUR/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot, provided prices are trendy and not choppy. We are still reviewing the Short-Term Price Target for this pair.

USD/CAD

We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot, and vice versa. Note that the medium-term price target for this pair is 0.9500, followed by 0.9000.

AUD/USD

We are looking to buy the pair based on TNT signals once it breaks above the PIPS Weekly Pivot, provided prices are trendy and not choppy, or sell the pair if it remains below the PIPS Weekly Pivot. Note that our short-term price target at 0.9400 has been reached. We now have 1.0000 as our long-term term price target.

EUR/USD

The pair looks toppish on the charts. We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot. However, if the pair breaks above the PIPS Weekly Pivot, we may look to buy the pair based on TNT signals for small profit. For both cases, prices must be trendy and not choppy. Our next price target is at 1.6000, followed by 1.6200 and 1.6500.

GBP/USD

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, provided prices must be trendy and not choppy. We are presently reviewing our short-term price target.

USD/CHF

We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot, or sell the pair if it breaks below the PIPS Weekly Pivot based on TNT signals. For both cases, prices must be trendy and not choppy. The next price target is at 0.9500.

USD/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot, provided the global stock market is bullish, and prices are trendy and not choppy. Our short-term price targets at 100.00 and 98.00 have been reached. Our next price target is 95.00.

EUR/JPY

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, provided prices are trendy and not choppy. We are still reviewing the Short-Term Price Target for this pair.

USD/CAD

We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot, and vice versa. Note that the medium-term price target for this pair is 0.9500, followed by 0.9000.

AUD/USD

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, provided prices are trendy and not choppy, and vice versa. Note that our short-term price target at 0.9400 has been reached. We now have 1.0000 as our long-term term price target.

We welcome our Batch 9 students who have just completed their training from 15 to 17 Mar 2008.

EUR/USD

The pair looks toppish on the charts. However, we are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot. However, if the pair breaks above the PIPS Weekly Pivot, we may look to buy the pair based on TNT signals. For both cases, prices must be trendy and not choppy. Our next price target is at 1.6000, followed by 1.6200 and 1.6500.

GBP/USD

We are looking to sell the pair based on TNT signals as long as it remains below the 1.9938 level, provided prices must be trendy and not choppy. However, if the pair is able to break above the 1.9938 level, we may look to buy based on TNT signals. We are presently reviewing our short-term price target.

USD/CHF

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, or buy the pair if it breaks above the PIPS Weekly Pivot based on TNT signals. For both cases, prices must be trendy and not choppy. The next price target is at 0.9500.

USD/JPY

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, provided the global stock market is bearish, and prices are trendy and not choppy. Our short-term price targets at 100.00 and 98.00 have been reached. Our next price target is 95.00.

EUR/JPY

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, provided the global stock market is bearish and prices are trendy and not choppy. We are still reviewing the Short-Term Price Target for this pair.

USD/CAD

We are looking to buy the pair based on TNT signals as long as it remains above the 1.0024 level, and vice versa. Note that the medium-term price target for this pair is 0.9500, followed by 0.9000.

AUD/USD

We are looking to sell the pair based on TNT signals as long as it remains below the 0.9232 level, provided prices must be trendy and not choppy. However, if it breaks above the 0.9232 level, we may look to buy the pair based on TNT signals. Note that our short-term price target at 0.9400 has been reached. We now have 1.0000 as our long-term term price target.

EUR/USD

The pair looks toppish on the charts. However, we are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot. However, if the pair breaks above the PIPS Weekly Pivot, we may look to buy the pair based on TNT signals. For both cases, prices must be trendy and not choppy. Our next price target is at 1.6000, followed by 1.6200 and 1.6500.

GBP/USD

We are looking to sell the pair based on TNT signals as long as it remains below the PIPS Weekly Pivot, provided prices must be trendy and not choppy. However, if the pair is able to break above the PIPS Weekly Pivot, we may look to buy based on TNT signals. Our short-term price target for this pair is 2.0400.

USD/CHF

We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot, or sell the pair if it breaks below the PIPS Weekly Pivot based on TNT signals. For both cases, prices must be trendy and not choppy. The next price target is at 0.9500.

USD/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot, provided the global stock market is bullish, and prices are trendy and not choppy. Our short-term price targets at 100.00 and 98.00 have been reached. Our next price target is 95.00.

EUR/JPY

We are looking to buy the pair based on TNT signals as long as it remains above the PIPS Weekly Pivot, provided the global stock market is bullish and prices are trendy and not choppy. We are still reviewing the Short-Term Price Target for this pair.

USD/CAD

We are staying away from this pair for today. Note that the medium-term price target for this pair is 0.9500, followed by 0.9000.

AUD/USD

We are looking to buy the pair based on TNT signals as long as it remains above the 0.9232 level, provided prices must be trendy and not choppy. However, if it fails to break above the PIPS Weekly Pivot, we may look to sell the pair based on TNT signals. Note that our short-term price target at 0.9400 has been reached. We now have 1.0000 as our long-term term price target.

Foreign Exchange market, abbreviated FOREX or FX, is the largest financial market in the world. Forex traders include many financial institutions, such as large banks or central banks, as well as governments, currency speculators, and multinational corporations. The average daily trade currently exceeds $3 trillion.

Although Foreign exchange trading can be confusing for newbie’s, the market still lures many people in because it has numerous advantages when compared to other markets like stocks or commodities. Forex trading is somewhat different from stock exchange markets and there are opportunities for those who take part in it. Do not be tempted to jump into trading forex before you have a clear understanding of how the market works.

So how does the forex market work? Here are the key features of forex that differentiate it from other trading markets:

(1) Forex trading does not happen at one location but through use of the telephone and networks, although there some main trading centers in major cities all over the world.

Foreign exchange brokers conduct business from their office via a microphone that is connected directly to a phone line. The brokers voice is continuously being transmitted to dealing banks’ speakers. To have a better feel for how this is done, visit www.forexvoice.com and you will hear brokers calling the bid/ask prices. Currencies are quoted in pairs, for example EUR/USD. A trade in forex is equivalent to buying one currency while at the same time selling another. The sell quote is displayed on the left and is the price at which you can sell the base currency. The sell quote is also referred to as the market maker’s bid price.

(2) Forex is extremely liquidity.

The large number of traders on the forex market and their diversity makes forex unique. The exchange rates, which represent the basis of the forex market, can be influenced by a great variety of factors, hence the opportunity for speculations that exists on this market more than on any other financial market. Although the forex market has low margins of profit by comparison to other fixed income markets, its large trading volumes allow for profits to be considerably high.

(3) Forex trading hours and the geographical dispersion are unique.

Forex trades virtually for 24 hours each day from 5pm EST on Sunday until 4pm EST Friday. A trader can choose to trade whenever it is convenient for him or her. You even have the possibility of using auto-trading on many trading platforms.

(4) Another characteristic specific to the forex market is that it lacks a central regulatory agency.

There are some countries that regulate their dealers. You should only do business with regulated dealers. Otherwise, you may wake up one day and find out that your dealer has gone under taking your account with it!

(5) Forex provides the opportunity to trade with leverage, hence higher profit or loss.

In the stock market, you could use margin to achieve a leverage of 2:1, while in forex market leverage of 100:1 or 500:1 are available.

(6) You can open an account with as little as $25 to start trading with.

With most brokers/dealers, you can open a demo account and practice for as long as you like without paying a dime.

(7) There are free real time quotes and sophisticated charting programs for forex.

An excellent example is Metatrader that you can download for free with tons of technical analysis and expert advisors to show you how to trade forex.

Just as in any other market, trading forex along with its exclusively high profit potential, carries a high risk that must be understood. It is possible to gain success only after good training including a familiarization with the structure and kinds of forex, the principles of currencies price formation, the factors affecting prices alterations, trading risks levels, and money management. You also need sources of information necessary to account for all these factors. You need techniques to analyze or predict market movements as well as trading tools and rules. In future articles we will discuss some of the pitfalls beginners should look out for before starting forex trading.

Professor Sunmonu is a Professor Of Mathematics at York College. His forex trading blog can be found at http://www.FrxBank.com

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