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Wednesday, February 27, 2013

Forex Strategies

There are plenty of profitable forex strategies out there and The Last Bear will not share any specific strategy, but rather offer crucial pointers in order to successfully execute a forex strategy:
  1. Define a forex strategy which you would like to follow. Take your time when you create your strategy and test it on paper before you execute it in your live PaxForex account.
  2. Define your exit strategy before you enter a trade and set your take profit levels as well as stop loss levels. Again, do these before you enter the trade as at this time you are emotionless and can think with a clear head.
  3. Execute your strategy as previously planned and do not adjust it after you entered your trade. You need to learn to stick with your strategy when trades go against you.
Remember the following:
 

Your profit is made when you enter your trade and not when you exit your trade.
 

Regardless which strategy you decide to implement in your portfolio, keep the above pointers in mind and you should drastically reduce your learning curve and increase the success rate of your trades. Your portfolio will thank you for it.
 

All of you who do not have a forex strategy yet should check out PaxForex Trading Recommendations as well as the 250 Pip-per-Week Journey.

How to Trade Forex Pairs?

The very first thing you need is a reliable forex broker. The Last Bear recommends the following broker for your services:

PaxForex

We strongly advise our traders to open a live account there and take advantage of what PaxForex offers its clients in order to succeed in today’s forex markets. Those things include:
  1. Reliable broker with great execution on dozens of currency pairs, rare re-quotes and almost no slippage.
  2. High leverage up to 1:500 which offers the right combination of increased profitability while still decreasing the risks to blow out an account due to over-leveraging.
  3. Trading Recommendations which are very accurate and will allow traders to turn a profit the first week after the have opened their live trading account.

What are Forex Pairs?

Forex pairs put one currency, for example the EUR, against another currency, for example the U.S. Dollar, and then forms the EURUSD forex pair or currency pair. The first currency is referred to as the base currency while the second currency is referred to as the quote currency. The price of the currency pair illustrates how much of the quote currency is required in order to purchase one unit of the base currency.

Positive economic as well as monetary news out of the base currency and negative economic as well as monetary news out of the quote currency will drive the exchange rate higher. On the same note, negative economic as well monetary news out of the base currency and positive economic as well as monetary news out of the quote currency will drive the exchange rate lower.

Here is an example:

Let’s assume the EURUSD is currently quoted at 1.3525. This means it takes $1.3525 in order to purchase €1. Therefore, if we receive positive news out of the Eurozone the Euro will grow stronger and the EURUSD pair will increase in value as it will cost more U.S. Dollars in order to purchase Euros. The same holds true for negative news out of the U.S. which would push the EURUSD exchange rate higher as it will make the U.S. Dollar weaker.

USDJPY

This pair is under destruction by the Bank of Japan and should create plenty of riskier trades which we enjoy here at The Last Bear. This pair will move hard and heavy and we are in the severe minority who believe in a big Japanese Yen rally towards the end of the year.

We will update our traders here with our monthly USDJPY predictions.

GBPUSD


This pair is another highly traded currency pair and put the British Pound Sterling against the worthless U.S. Dollar. Almost equal to the EURUSD this pair provides plenty of great trading opportunities for traders as it is also highly traded.

We will update our traders here with our monthly GBPUSD predictions.


EURUSD

This pair is the most traded currency pair and therefore the most liquid pair. It puts the world’s biggest economy, the EU, against the world’s second biggest economy, the U.S., and offers traders a highly liquid and often volatile currency pair which creates plenty of exciting opportunities.

We will update our traders here with our monthly EURUSD predictions.


PaxForex Trading Recommendations March 2013

Starting on March 1st 2013 we will publish a link to every single PaxForex Trading Recommendation here for all our readers to follow. Don’t forget to head over to PaxForex and open your live account today in order to join us on our 250 Pip-per-Week Journey through the forex market.

Monday, March 4th

USDCHF Exhausts Rally

Tuesday, March 5th

USDCAD Chart Pattern Breakdown

Wednesday, March 6th

AUDCHF Bump-and-Run Reversal

Thursday, March 7th

EURAUD Ready for Rally

Monday, March 11th

USDJPY Tops Out

Tuesday, March 12th

AUDNZD Trades at Top

Thursday, March 14th

NZDUSD Double Bottom

Monday, March 18th

GBPCAD Due for Pullback

Tuesday, March 19th

EURUSD Double Bottom

Wednesday, March 20th

EURAUD Pauses at Support

Thursday, March 21st

AUDJPY Ripe for Correction

Monday, March 25th

AUDUSD Rising Wedge Formation

Tuesday, March 26th

NZDUSD Spinning Top

Wednesday, March 27th

USDCAD Falling Wedge Formation

Thursday, March 28th

EURUSD Bearish Price Channel

Total profits in March: 1,531 pips

PaxForex

The Last Bear recommends PaxForex as your top forex broker destination for all new entrants to the world of forex. All new traders are confused when it comes to forex trading and there are a lot of bucket shops out there which want their clients to over-leverage and blow up their accounts. Some even trade against their clients in order to generate profits, but either way they simply do not care about new traders.

PaxForex is different. A new and dynamic forex broker who has constantly evolved over the past year in order to increase its services offered. PaxForex caters to new traders who enter the market and seek a reliable source for their forex portfolio. PaxForex cares about its traders and actually strives to better their trading as this broker understands that only a client who makes profits is a good client. Basically, the more traders make, the more PaxForex earns. This is the reason PaxForex cares about every trader.

Here are a few features The Last Bear enjoys about PaxForex:
  1. Stable, secure and reliable off-shore broker who welcomes U.S. clients.
  2. PaxForex Trading Recommendations.
  3. Offers plenty of forex pairs to traders.
  4. Leverage of up to 500 times your investment.
  5. Attractive bonuses.
  6. Great customer service team.
  7. PaxForex Blog.
  8. Rare re-quotes
  9. Almost no slippage
  10. Decent spreads.
They have also introduced a forex course for beginners in order to promote understanding and help out new clients. We strongly recommend that you dive into the course which we will also publish here and then head over to PaxForex in order to open your live account today and get your forex career started.

2013 Market Outlook

Let’s cut the crap and jump right into The Last Bear’s 2013 market outlook where we will give our predictions for the S&P 500, FTSE 100 and also give our three favorite currency pairs a look.

S&P 500 2013 Market Outlook

The S&P 500 started 2013 at 1,426.19 and endured a strong rally during the first two months of the year. We believe the rally will fizzle out with the looming sequester which will kick in on March 1st and therefore call for a 25% correction during 2013.

We believe the S&P 500 will close 2013 at 1,069.64. Allow an error of margin of 3% which will get us to a closing range between 1,037.55 and 1,101.73.

FTSE 100

The FTSE 100, our top pick for 2013, started the year at 5,897.80. Given weak economic performance at the start of 2013 and the Eurozone crisis we believe the FTSE 100 is due for a 15% correction during the year.

We believe the FTSE 100 will close 2013 at 5,013.13. Allow a margin of error of 3% and we have a closing range between 4,862.74 and 5,163.52.

EURUSD

The EURUSD opened 2013 at 1.3271. This one is quite tricky as both the Euro as well as the U.S. Dollar face severe problems. The Euro issues are more structural while the USD is simply not worth the paper it is printed on. Given the Eurozone debt contagion the Euro will not be able to rally as much as it should against the USD.

We believe this currency pair will close 2013 around 1.3600 for a gain of 2.48% on the year. Nothing to get too excited over, but expect nice volatility which will allow for plenty of short-term trades and the profits will add up.

GBPUSD

The GBPUSD opened 2013 at 1.63101 and formed a triple top. During the first two months the GBP has been pounded like there is no tomorrow and dropped almost 8%. We believe the GBP will emerge as one of the best currencies for 2013, if you have opened your longs around the 1.5200 level. The Sterling had to deal with weak economic reports, a loss of the UK’s AAA credit rating and a dovish Bank of England.

We believe this pair will bounce back from lows around the 1.5000 level; this currency pair may reach the 1.4750 mark should another event rattle the monarchy, and close 2013 around 1.6000 which would give traders a gain of 5.26%. We expect the next few months to be very volatile so: Traders be aware and profit with The Last Bear.

USDJPY

The USDJPY opened 2013 at 87.192 and has soared ever higher after the Bank of Japan announced that it will do all it can to devalue the Japanese Yen. The Deputy Economy Minister threw the 100 level out there. While the Yen has been collapsing and most believe it will close the year around the 95 mark we believe it is due for a strong rally primarily due to USD weakness and the potential of QE4.

We believe this pair will move the other way especially after price action February 25th which shook lose the bulls as the bears took ‘em to the slaughterhouse. Our 2013 prediction for this pair is a close around the 80.000 level which is a move of 8.25% from the opening level and over 15.79% if you got this at the top of its range; screw the 100 level.