The forex market is driven by economic forces, so forex forecasts depend to a large extent on economic or fundamental indicators. These form the basis of the financial news and announcements that you can see coming up on a forex calendar.

Of course, some of these economic factors are more important than others in terms of currency prices. Some will pass with scarcely a ripple on the surface of the market. Others have the power to shake the forex market by its roots and overturn even the biggest trends. So which are the ones that you must keep track of for your forex forecasts? Here we list the 7 top fundamental indicators for the currency market.

1. Interest rate

An interest rate change in any of the major financial powers (USA, Britain, Japan, Germany, etc) can have a huge effect on currency prices. Even if you are trading a pair that does not include that particular currency, you are likely to see a knock on effect. Interest rates are the biggest driving force for the forex market.

This is because the interest rate is one of the strongest and fastest indicators of a country’s economic performance. Investors are looking to invest in countries with a strong performance, so a rise in the interest rate will immediately attract investors. This affects currency prices because they must in effect buy that country’s currency in order to invest in its stocks. It will also, clearly, affect the currency of other countries where they will selling investments in order to buy into the new strong country.

Interest rate changes in turn are driven by other factors which the central banks will watch in order to decide whether a change in the interest rate is needed. This means that instead of waiting for the interest rate to change and affect the market, you too can watch these other indicators and formulate your own forex forecasts from them. The remaining 6 factors will all be used by central banks as indicators of a country’s performance.

2. Consumer Price Index or CPI

A high index (high prices) reflects a strong economy.

3. Producers’ Price Index or PPI

This is the cost of materials for manufacturers etc. When these rise, the price rises will be passed on to consumers, which leads to a higher CPI (inflation) and perhaps a rise in the interest rate.

4. Gross Domestic Product or GDP

The GDP is like the accounts sheet of the whole nation. Results are reported every quarter and economists generally take this as the strongest indicator of the nation’s economic performance. Again a high GDP may be a signal that interest rates could be rising.

5. Payroll Employment

National payroll figures are a measure of the employment situation in the country. This index is also high when the economy is strong.

6. Retail Sales

This figure records the total receipts of retail stores in the nation, indicating consumer spending and confidence.

7. Durable Goods Orders

This is a measure of the value of orders placed with manufacturers.

So increases in all of these factors will indicate a strong economy and probably strong currency values. However, be aware that sometimes a result may be announced which is less of a rise (or fall) than the market expected. This applies particularly to GDP and interest rates.

In this case the market will have moved in anticipation of the change, and when the announcement comes and is less of a change than expected, it could cause a backlash. So even if you watch the indicators, forex forecasts can sometimes catch you out.

If you are looking for forex trading tips, take a moment to think about something that most people do not want to know, and yet it is one of the most important strategies to master if you are going to have any chance of succeeding with forex trading. This is how to deal with losing trades.

Everybody wants to hear about winners and how to make money. Nobody wants to hear about losing. However, it is clear when you think about it that minimizing your losses is just as important as maximizing your gains when it comes to making a profit.

In this respect forex trading is just like a business: in order to increase your profits, you can either increase your income or you can reduce your costs. Loss management in forex trading is a question of handling the losing trades in such a way that they do not stop you making a profit on the bottom line.

The first thing to understand is that losses are inevitable. There is no point even beginning to trade live if you read that statement thinking, ‘Yes, but not for me.’ If you expect to win every trade you are going to have a bad shock which could throw you right off course.

For the unprepared, a loss can make them lose faith in their system. Soon they have abandoned the system for random trading according to wild guesses about the way that the price might move. As all forex trading tips will tell you, abandoning your system is a recipe for disaster.

Losses should be accepted as a normal part of Forex trading. You should plan for them in the sense that you always set up a stop loss when you open a trade. ALWAYS. You do not hang onto a bad trade thinking it ‘must’ go right because your system is going to produce winners every time. You accept that this one is a loser and cut your losses at the right moment. You do not start kicking yourself or wondering what went wrong. You accept that this was one of the 1 in 5 or 10 losing trades that statistically your system will produce, and you move onto the next trade without giving it another thought.

What can be harder, of course, is when there are a lot of losses in a short time. Say that your system normally throws up 1 loser in 8, but lately you have had a run where it’s almost 1 in 3. The result is that for this month you may be showing an overall loss. What do you do in this situation?

Again, before throwing out your forex trading system, make sure that this is not just a question of statistics balancing themselves out. If you look at the whole year, are you still within that 1 in 8 ratio? If so, there is no problem. Your system is still fine. Just keep an eye on it.

If you just started trading for real and this happens, then maybe you were not quite ready psychologically and there have been some mistakes. Look over your records to check that the signals were always exactly right. You may need to go back to your demo account for a while to be comfortable operating your system again. Then take extra care to work on stress management and clear thinking when you do go live.

Finally, if you look over your records and conclude that your system might be at fault, for example because you have stuck to it to the letter and things are just going from bad to worse, it might be time to go back to school. Stop trading for a while and take some training. In the process you may discover what went wrong with your system or you may find a better one. You will certainly pick up a lot more forex tips that will help you in the future.

In this FibMaster review we take a look at the series of videos developed by master trader Neal Hughes in the art of successful trading using the Fibonacci method.

What Is Fibonacci Trading?

Fibonacci trading is based on taking advantage of reversals in price movements. The Fibonacci sequence of numbers was discovered by an Italian mathematician in the 12th century. It has various applications in mathematics and in nature, but the importance for financial traders is that the ratio between the numbers in this sequence can predict reactive price movements or retracements.

As you will know very well, after any significant upward or downward price movement, the price will tend to ‘bounce back’ at least some of the way. This is known as retracement.

Broadly speaking, currencies and stocks tend to follow patterns in which the retracement is usually around either 23.6%, 38.2%, 50% or 61.8% of the previous move. To understand which of these is likely to apply to a particular currency movement, you need a solid system based on Fibonacci charts.

In trading, Fibonacci is a leading rather than a dragging indicator. This means that it predicts future price movements rather than analyzing past movements or averages. The future is what we need to know when we are trading, so this gives this method an advantage over other chart analysis systems from the get go.

Fibonacci Trading For Forex

Fibonacci trading has been used to produce great results in stock trading for years. In fact, it has been described as ‘trading voodoo’ because its ability to predict retracements is so uncanny. Now there is a Fibonacci trading method that can be used to trade currency on the forex market as well as for stocks, options and futures. Neal Hughes’ method can be used on all of these markets with equally solid results.

What You Get

With the FibMaster method you get two stand alone video training courses. The first is an introduction to Fibonacci trading and the systems that you can use. Following on from that is the advanced Fibonacci trading course. In total, 21 video tutorials are provided, totalling over 3 hours of training.

Subjects include: how Fibonacci trading works, advice on entry and exit levels plus stops, when to take your profit, day trading and longer term trading strategies, how to stack the odds in your favor, and more.

What You Will Need

You’ll need a computer on which to watch the videos, of course, including sound. You will also need a trading account that provides Fibonacci charts. If this is not available from your broker, you can get it from any good forex charting service.

Level

Theoretically the FibMaster method could be used by a beginner. However, the examples focus on stock trading so you do need to translate to the forex market. That is very easy to do of course if you have a little experience, but a complete beginner might find this confusing.

Equally, it does depend on chart analysis which some people find easier than others. If technical analysis does not come easily to you then you will need to put in some time, but Neal Hughes makes the learning curve as short and simple as possible. However, if this is an issue, Neal also provides daily videos of forex trading opportunities through his site at dailyforexcharts.com.

The videos themselves are clear and cover everything from the basics of Fibonacci trading to more detailed analysis that you will want to save for a later viewing. The beauty of this is that you can run with a simple technique if you wish or try it all in a demo account step by step, gradually adding to your system as you master more aspects of the technique.

If you have not tried trading with Fibonacci charts before, we think you will find this method a real eye opener. If you have, Neal Hughes will almost certainly introduce you to systems and tips that you have not seen before.

Guarantee

The product is sold by Clickbank who offer a full money back guarantee for 8 weeks from the date of purchase. So you can buy and try it out in your demo account for a full two months without risk.

FibMaster Review Summary

In summary, we highly recommend the  demonstrated in the FibMaster videos if you are a forex trader looking for a new and profitable method of price movement prediction. FibMaster is the easiest and best way to profit from Fibonacci trading that we have seen.

Check It Out: FibMaster 

Lee Campbell is finally opening the doors to his Forex trading system Forex Mutant.

And I don’t expect that they will stay open long though. And here is why… I have never seen a Forex Trading System create so much excitment!

I’m told that 31,018 people signed up to be told as soon as Forex Mutant was open, but Lee is only making 525 copies available, so it’s going to move FAST.

He’s also added some killer bonus’ to sweaten the pot as if the Forex Mutant system itself wasn’t enough!

Go find out more here NOW:

Forex Mutant

“So, What is Forex Mutant?”

Well, Forex Mutant is a very powerful Forex signals software based on highly sophisticated algorithms that will tell you EXACTLY when you should be entering and exiting a trade and what to do.

It is a perfect software for both beginners and experts that can literally sky rocket your Forex profits and grow your initial investment over and over again with very little effort.

And, unlike a Forex robot, this software is able to do that SAFELY. No more accounts wiped out, no more losing trades eating up all the profits you have made until that point.

Robots can’t think. They simply follow the build in formula no matter what is really going on in the market. That’s why it’s very well known among traders that what the best robot can do in a year, a beginner trader can do in a month!

There is no trading robot in existence that can work better than a human mind.

By using a signals software or an advanced manual system such as Forex Mutant, you will be in full control all the time. You can take the trade or not. Follow the signal or not.

And the most important part is, when using an advanced manual system, is that you will learn as you trade. So your trading results will be improved over time. Even on the rare occasions where there will be a small loss. Robots never learn! They will keep repeating the same mistakes over and over again.

The high winning rate of more than 90% makes this forex signals software very profitable and at the same time, because of the low drawdowns, extremely safe to use — like nothing else on the market.

It has SAFELY generated 6 figures per year, year after year, with an amazing 90.30% winning rate.

Basically, this is really what people want right now… An easy and step-by-step automated system to make money fast and on a regular basis at the price even a novice can afford to pay for!

Forex Mutant will sell out, no doubt about it. With only 525 copies available, it won’t be long before the people who can see the opportunity that having a sytem like Forex Mutant…

A system that grew a $5,000 account into a $20,600 one and wins nearly 90% of the time when used correctly — And we are not just talking about another forex robot.

Don’t delay — go try it out NOW:

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Everybody involved in currency trading are looking for forex trading secrets. What most people do not realize is that when you are paying top dollar for a forex trading system, it does not necessarily mean that the same thing will work for you.

On the other hand, there are some secrets of success that will work for practically everybody. These focus around mindset and good practice and they are much more important than most people realize. In fact, they are probably even more important than your system. So check out these 5 forex trading secrets to success.

1.  Set A Morning Routine

Every morning (or whenever you start trading) there will be certain things that you need to do. The first is to check the economic calendar for the next 24 hours. This is vital and you can be sure that the one day you forget will be a day that something big happens. So if necessary, set up something on your computer so that you see a reminder as soon as you log in.

Email is a distraction so give yourself set times for checking and answering email, and close your email client the rest of the time. The last thing you want is an icon flashing or bleeping about incoming mail when you are in the middle of a trade. The same is true of your phone.

2.  Move That Body

Sitting at a computer all day without breaks is one of the worst things you can do to your body. Be sure to stand up, walk around and change the focus of your eyes at least once an hour. Get a drink of water or visit the bathroom and instead of rushing straight back, spend 5 minutes pacing the room or looking out the window. This will help you to relax and avoid serious problems such as thrombosis or eye strain.

If you are working at a desk full time, either for your trading or in a day job plus your trading, plan some workout time into your day too. This could be when you first wake up or later in the day, but make it at least two hours after a meal. Choose either cardio, flexibility or strength training and aim for at least 30 minutes, 4-6 days per week.

3.  Get A Life

If you are not going to go completely crazy, you will need to have some outside interests. If you have a partner or family around you, they will probably take care of most of your spare time. If not, seek out friends or pursue a non-trading interest that brings you into contact with other people. It can be tempting to want to do nothing but trade, but you will burn out fast that way.

4.  Use The Forums

Forex forums can be great for chatting online with other traders. You can ask questions, give and receive advice, check out reviews of systems and pick up a lot of forex trading secrets and tips. It gives you somewhere to go when trading is slow. Just make sure you don’t start spending all day there … it is easy to do.

5.  Spread Your Wealth

When you are starting to make good money from your trading, it is time to diversify. Consider investing some of your funds in property, bonds or even stocks if you have the knowledge of that market.

Even if you are not yet making enough to want to divert money away from trading right now, you probably only need half or less of your funds to be in your account, so withdraw the rest and invest it safely. This means that even in the worst disaster you cannot lose everything. You will not regret doing this. Protecting your funds is one of the major forex trading secrets and golden rules.

"The Art of Forex Portfolio" is not an ordinary Forex Manual. For the first time, two master traders, Joseph Seelentag and Daniel Peleg release a unique and comprehensive course. They teach the secret rules and tactics behind money-making Forex Portfolios.

What’s "The Art Of Forex Portfolio" all about?

Many are not familiar with the term "Forex Portfolio" so let’s say a few about it:

"Portfolio" means diversifying one’s strategies. Whether the trader uses manual trading, automated robots or a signal service, none of these can stand alone. The right way to trade the Forex market is by using a combination of several of these strategies working in harmony.

"The Art of Forex portfolio" course includes ꢬ detailed pages of how real Forex trading should be done in practice. It is simple to understand and implement and full of examples and illustrations.

As bonuses, there are 3 winning manual trading strategies which can actually work together as a portfolio. In addition, the authors created a smart and unique Risk Management Indicator which compliments the course.

Check It Out:

<< Click here to instantly access The Art Of Forex Portfolio >>

The best thing about Bob’s Forex Classroom, is that the entire course was designed with the student in mind. You will be learning a tried and true trading style that is easy to learn and immediately effective.

Unlike any of the other hundreds of Forex scams out there, Bob Iaccino is a real trader who has climbed his way up from humble beginnings. His trading technique will allow you to be active in the market, but not chained to your trading platform. Do not leave your strategy to chance when you have a true expert (appears on CNBC, CNN, Fox Business Channel) offering to show you how to trade now!

• Classes are offered on multiple days, at multiple times and are recorded LIVE. Get answers to your questions!
• Bob records the LIVE class and posts them in the member’s section for you to download later.
• You have a lifetime membership to Bob’s Forex Classroom so you can learn at your own pace!
• You choose your level, Basic or Advanced. Both will get you on the path to Forex success.
• Receive access to Bob’s Daily Webinar with market analysis that effects your trades.

Bob’s Forex Classroom

Courses start next Monday, December 7th, 2009. Don’t wait as this offer REALLY will sell out and the doors will close.

You can find the full schedule and all the details posted on the enrollment page…

Bob’s Forex Classroom

This truly is your chance to learn from a REAL FOREX PRO and start taking money out of the Forex markets on a consistent basis.

If you have ever dreamed of becoming a full-time trader or even just want to earn extra money trading, there simply is not a better resource than Bob. Rest assured, you are in the right place and learning from the right teacher.

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Bob’s Forex Classroom