Today we have a guest post from a reader named Vincenzo that I think that you all are truly going to enjoy....
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Next Generation Technology and the Forex Market
Has technology improved the forex market? Many of the forex brokers were able to push the retail forex business due to the new generation technology of being able to operate a large database of traders in a fast moving environment. The retail forex business has given the ability to millions around the world to enter the market as speculators or professionals. Also, over the years the retail forex business has improved with faster trade executions, more transparent, and having to operate within more rules and regulations. Some of the forex online scams were also created with the new found technology which caused a “wild wild west” environment for anyone to enter and create many of the forex robots and systems that we see today (but not as much). The forex online scams are being replaced with a new positive burst of the “social media” expansion into the forex market. If you are new to the forex market, you have the opportunity to signup to a forex course offered by the many forex brokers as an incentive to begin your trading career.
Fraud Monitoring and Compliance
The Forex market is regulated by the NFA (National Futures Association) in the States. The rules and regulations are always changing to create more transparency and to minimize the risk. The NFA are regularly monitoring the forex brokers for any fraudulent activities and the forex trader do also have the opportunity to fill-in a complaint if they suspect foul play. Many forex brokers have moved off-shore due to the strict rules and regulations that the NFA has created over the last couple of years.
Technology for the Forex Customers and Brokers
The forex customers have the unique opportunity of taking advantage of the advanced technology provided by the forex broker. The forex brokers have the ability to provide trade executions (buy or sell) within seconds of a request. Many forex brokers and entities in the forex market have specific rules and liquidation capacity. You should always look for the most liquidated forex broker because it has the sufficient equity to take the opposite direction of your trade.
The technology available today allows all the forex traders to have the ability to access up to the minute news, charting, and the overall sentiment. The forex news comes from many sources online such as dedicated forex news websites, leading online news channels, and forex brokers. Forex news websites provide you with latest forex news and in depth-analysis of what your next move should be (buy, sell, or hold). These websites consist of long-term members of wanting up-to-date daily news and charts. Leading financial television news channels such as CNN, CNBC, etc. have realized the potential of online technology and decided to make use of the social media websites such as YouTube, Google Video, etc. When you signup with a forex broker you receive the authorization to execute multiple trades and receive up to the minute news updates. Forex charting is an important part of your success in the forex market. The two factors to look for in your forex charts to be successful:
Currency Trend – Ability to view the currency trend start to end. If the currency is moving in an upward position, then the bullish sentiment is strong. If the trend is heading in downward position, then the bearish sentiment is leading the way.
Resistance Lines – Resistance lines are where the buyers decided to enter or leave the market. If a trend breaks a previous resistance line then you know that your position has just strengthened and if your position is hovering over or under the resistance line without breaking it, then you know you have a weaker position.
The burst of popularity in the online social media websites such as Facebook, Twitter, YouTube, etc. has given the forex market the technology to resurrect. Now, more then ever you see dedicated forex social media websites that are made for the purpose of forex traders to interact, view what the majority are trading, and a generous database to get your questions answered. Social media technology is here to stay for years to come because the forex traders have latched to the change by allowing them to move from a sole trader to more of a team environment, it also allowed the flow of ideas to freely move between multiple traders, and most importantly it allows you to expand your forex education by trading with other professionals.






