Forex Blog

There are 7 New Zealand Dollar NZD pairs that can be easily traded by forex traders. Forex traders continue to overlook NZD trading and these pairs, but they present great opportunities to make pips. These pairs include the NZD/USD, NZD/JPY, NZDCAD, NZD/CHF, EUR/NZD, GBP/NZD and AUD/NZD. Seven NZD pairs total.

New Zealand Dollar NZD Pairs Characteristics

The most popular pair that forex traders trade is the EUR/USD. Many of the New Zealand Dollar NZD pairs have characteristics that are are much better for trading than the EUR/USD. We trade 28 pairs total in the Forexearlywarning trading system, including all seven NZD pairs.

The NZD pairs offer a wide variety of characteristics, like low volatility to high volatility, and can be traded in the Asian trading session or the main trading session. From the standpoint of market trading hours, any trader in the world can trade these pairs throughout the trading week.

New Zealand Dollar NZD Pairs Volatility

The volatility characteristics of the New Zealand dollar pairs can be a great benefit to traders. Take the EUR/NZD for example. When this pair is moving in the main trading session the volatility is beneficial as this pair moves much faster than more popular pairs like the EUR/USD. This allows traders to take profits and move stops to breakeven faster. And the GBP/NZD is suitable for traders who have experience trading volatile instruments, volatile stocks or low float stocks with high volatility. Traders who are looking for volatility will love trading the GBP/NZD.

The spreads on the NZD pairs are reasonable from most forex brokers for all of the NZD pairs during the main trading session. However on some pairs like the AUD/NZD or GBP/NZD you may have to check with more than one broker as spreads on these pairs are higher. Being aware of the most of the currency pair characteristics of the pairs you are trading will open the door to many more pairs and more pip potential.

When To Trade The New Zealand Dollar NZD Pairs

The New Zealand Dollar NZD pairs can be traded during the best times to trade the forex market, during both sessions. The Asian trading session and the main forex trading session. You can check the forex news calendar and you will see that the NZD news drivers occur frequently in the Asian trading session and drive movement on these pairs. All currencies can move in the main trading session. This is an advantage over trading the EUR/USD, which only moves on the main session. Surprising but true as most traders continue to focus on just one pair.

New Zealand Dollar NZD Economic News

How To Set Up Trend Indicators for Monitoring the New Zealand Dollar NZD Pairs

Lets look at the best way to set up your trend indicators for trading the New Zealand Dollar NZD pairs. Traders can start with our free forex trend indicators, which is a system of exponential moving averages for tracking individual currencies.

New Zealand Dollar NZD Pairs Trend Indicators

New Zealand Dollar NZD Pairs Grouped Together

The next thing you would like to do is set up all 7 New Zealand Dollar NZD pairs together in a group, side by side. This makes it much easier for traders to see if the NZD is consistently weak or strong. For example if all of the pairs with the NZD as the base currency NZD/ are trending up, and all of the pairs with the NZD as the cross currency /NZD are trending down. The NZD is strong and you should be trading in that direction. This is called forex analysis using parallel and inverse pairs, and is by far the best analytical method available to forex traders.

Grouping the New Zealand Dollar NZD pairs together allows trader to see if a valid trade is possible and to check if the NZD is consistently strong or weak.

How To Enter Trades on the New Zealand Dollar NZD Pairs

Now we will present some rules for entering trades on the New Zealand Dollar NZD pairs. First, check the trends on the larger time frames like, H4, D1 and W1 on the NZD pairs. If a good trend is in place or developing on the higher time frames, then that pair is a candidate for a trade.

Then set an audible forex price alert on the smaller time frames so that you can be notified of any breakouts to intercept the next movement. When the price alerts hit check The Forex Heatmap® forex heatmap for consistent NZD strength or weakness to confirm the entry. Make sure the price target is at least 100 pips away to preserve risk to reward ratio for each trade. Along with audible price alerts, we also have other other professional forex alert systems to notify traders when the forex market is moving.

New Zealand Dollar NZD Trading Signal

New Zealand Dollar NZD Trade Entry

See the example trade above. On this trading day the EUR/NZD dropped 250 pips. Other trades like buying the NZD/USD were possible on the same day, based on the NZD strength in the market. Hundreds of pips of movement across the NZD currency pairs occurred on this day. If the EUR/NZD is in a downtrend, or if the NZD/USD is in an uptrend, even more pips are possible going forward, along with these strong intraday movements.

Most forex traders never look at trades like this due to their using technical indicators and following only one pair, the EUR/USD. If traders are able to change their thinking and start to follow groups of pairs and setting up these indicators, traders can increase pip totals substantially.

Summary and Conclusions: Forex traders should follow the New Zealand Dollar NZD pairs and trade them. These pairs are overlooked by most traders, but these pairs have great characteristics and high potential to make pips. We have provided traders with the best possible setup of indicators in this article for success trading these pairs. The methods and indicators you see in this article also work for a total of 8 currencies and 28 pairs.

In this article we will present three important forex trading guidelines to turn your trades into winners. The three guidelines: trend, current momentum, and price targets are simple to understand, and once fully understood, can be easily implemented into your forex trading strategies. We are confident that trading accuracy and confidence will increase dramatically in a matter of just a few trades with the information in this article.

Forex Trading Guideline Number 1:

All traders must identify if the pair they are trading is trending on the higher time frames, H4 and larger. If a currency pair is in an uptrend on the H4, D1 or W1 time frame then it is a good candidate for a buy or sell entry.

Forex Trading Guidelines Trending Pair

Here is an example of a currency pair that is trending on the higher time frames, in this case the pair is trending up on the D1 time frame and is a candidate for a buy. Notice that is has been trending up for several days. If you catch a pair early in the D1 trend cycle you can ride the trend until it stalls and you can collect more pips by letting the trend do the work. If a currency pair is not trending on the higher time frames and you enter the trade anyway, you are daytrading.

Here is a link to our forex trend indicators for 9 time frames and 28 pairs total. Traders can set them up one any pair you like, but we suggest setting them up by individual currency, or you can use our high powered chart setup and view multiple pairs at once with the same common currency.

Forex Trading Guideline Number 2:

When you enter a trade you must make sure the pair you are buying or selling has lots of momentum at the point of entry. On buy trades you want lots of momentum going up. On sell trades you want lots of downward momentum at the point of entry. Currency pairs only move because one currency is strong and the other is weak or both and that is the only reason. For successful forex trades you can use a strength and momentum indicator for live signals like the one below:

Forex Trading Guidelines Momentum Indicator

Forex Trading Guidelines Momentum Chart

Look at the example above. The live momentum indicator shows consistent NZD strength on all of the NZD pairs. The EUR/NZD had a nice drop with good momentum as shown on the price chart. The EUR/NZD dropped about 100 pips in one trading session. Several hundred pips of movement combined in one trading session, so this is significant. Trading forex with a premium live momentum indicator allows traders to move their stop to breakeven. Then you can check the higher time fames to see if the pair is trending for more trend based pips over the next few days, possibly longer. The above example is for the NZD pairs, however the same strategy works for 8 currencies going in two directions.

We also have a chart setup that will allow traders the ability to see the movements of all 7 pairs in any currency group. If you set up your charts using the metatrader profiles you can see all of the NZD pairs on one screen and more than likely trade several NZD pairs in the same trading session. This excellent chart setup can be used on 8 currencies with easy navigation using the hotkeys on your keyboard.

Forex Trading Guideline Number 3:

Setting price targets at critical areas of support or resistance are important for any forex trade. If you sell a pair you must know when to take all profit or at least some profit to increase your account equity, while providing you with risk free upside potential on the remaining lots.

Forex Trading Guidelines Price Target

Look at the example above. The breakout point 0f 0.7325 is clear on the D1 time frame. You can set an audible price alert at that point to monitor for a price breakout. When the alert hits you can go to the momentum indicator to verify your entry. Your price target of 0.7700 is knows and identified in the chart analysis. This is a pip potential of 375 pips, not bad at all ! A good example of why working with the higher time frames is best. This is just one example, we also have many more examples of setting price targets using the higher time frames.

Add Money Management To These Guidelines

If you use these 3 guidelines consistently you will be creating a fantastic forex trading system. So adding a few money management guidelines will be an improvement. Always trade with a stop order, then move your stop order to breakeven when you obtain a reasonable profit. We have more specific forex money management procedures to make your guidelines work better with much lower risk that other forex trading systems.

If You Only Need Three Guidelines Why Do Traders Fail?

Forex traders are consumed by and engulfed in technical indicators. Technical indicators are attached to pairs, not individual currencies, which is a terrible flaw. You are trading currencies, not indicators, so we suggest starying away from technical indicators. There are about 150 standard technical indicators and about 50 different candlestick chart formations, and none of them work at all, because they are attached to pairs, not individual currencies. Standard technical indicators like Fibonacci, RSI, envelopes, etc. take over your mindset and cause months and years of frustration. Currency pairs are two instruments and each one should be examined before trade entry. Momentum is created when one currency is strong and the other is neutral or weak.

Conclusions about our three forex trading guidelines: If currency traders move away from standard technical indicators and towards individual currency analysis, their results will improve substantially. Incorporating other things like trading with the trend, current momentum and some basic money management rules will also improve their trading results as they press forward into more profitable trading.

If you are evaluating home based business opportunities, becoming a forex trader should rank near the top as an ideal home based business. This article will explain how to get a great trading system, how to get a fully funded trading account, and how to keep your startup and ongoing costs very low.

Why Forex Trading Is A Great Home Based Business

All you need is a good computer and an internet connection. If you have a laptop this will make your trading portable. You can trade from home or remotely, and working from home is direction most people want to go these days anyway. Forex trading as a home based business will get you working from home right now.

The forex market is the best market to trade, much better than the stock or options markets. It is the largest financial market in the world. Due to the high liquidity and short daily work schedule, the forex market presents itself to home based business opportunity seekers as a great way to make money online.

Keeping Your Costs Low For Your Forex Trading Home Based Business

Any viable business would control costs and expenses. There are websites that charge thousands of dollars to teach a trader how to trade the forex market. And many of these education courses are poor. These costs can be reduced to zero, just your own time and effort, by reviewing the illustrated forex lessons and videos on the Forexearlywarning website.

Also, ongoing costs can be kept very low by using low cost service providers, like Forexearlywarning. If you combine free forex education with low cost services, your monthly costs will drop to close to zero. If you do not have the funds for a trading account, there are millions of dollars in live trading capital  available from numerous capital providers. All of this combined means that smart traders are now set and can have a little or no out of pocket cost forex trading business.

Commitment of Time To Run A Forex Trading Home Based Business

Someone who is interested in using forex trading as a home based business would need to understand how much time is needed to get the business off the ground and running.

If you are a prospective trader seeking to start a home based forex trading business, there is a commitment of time. If you started today and you have never traded any financial market, it would take you about 30 days of study to review their chosen trading system. We suggest the Forexearlywarning trading system as it is tried and true. Then you would have to start demo trading for 30-60 days, unless you had previous experience trading financial markets, then the time could be shorter.

A typical forex trading day would be for about 6 hours per day in the main trading session, the exact time of day would be based on where you live. The forex market is closed on the weekend. So trading the forex is a part time business, and you should be able to pursue other business interests simultaneously.  So if you have another side business it is possible to pursue both.

Home Based Business Forex Trading

Summary and Conclusions — Forex trading as a home based business has many unique advantages. Little to no startup cost, short hours, lots of third party capital available. All entrepreneurs should evaluate forex trading as a home based business. In many ways it is an ideal home based business. If you would like to have a home based business as a forex trader, you need to find a great trading system,  study the system well, open up a no cost demo trading account and see if you can make positive trades, then get capital for your live account if you need it.

Forexearlywarning.com is now offering a forex affiliate program for our daily trading plans and live signals. Our daily trading plans, live signals and alert system are for 28 currency pairs. Forex marketers can make residual income and payment of 25%. Our trading system is effective and is based on the trends of the forex market on the higher time frames. The Forexearlywarning trading system is a proven system and provides traders with accurate, trend based trade entries. The trading system includes our live signaling system, The Forex Heatmap®

Forex Affiliate Program

Forex marketers can boost their income and revenue with monthly residual income from our affiliate program. Forex meetup group owners, forex website owners, forex forums and online communities, forex facebook page owners and facebook marketers, and other social media markers in the retail forex trading space can also benefit with monthly income. Also, introducing brokers and IB affilliates with current affiliate income streams can diversify their income stream by marketing our trading plans and signals.

Our forex affiliate program is easy to set up. Affiliate marketers can use our existing paypal subscription page and use your own unique affiliate promotional code so we can track your referrals.

Forex Affiliate Program

Affiliate Program Terms: Forexearlywarning will pay our affiliates a 25% residual income, month after month. Payments will be via Paypal at the end of each calendar month. Affiliates just need to contact us via email and get a promotional code assigned to them for accurate accounting. Other affiliate terms are available, so contact us for other commission structures.

If you are a retail forex trading industry marketer, and you are interested in adding a trading plan and signals based forex affiliate program to your store or supermarket, contact us about our affiliate program.

Forex Affiliate Program

Forex proprietary trading firms, also refererred to as “prop trading” firms, provide third party funding to forex traders. Many forex traders dont have the necessary funds to open a large trading account. Traders want to obtain funds to trade with from third party prop trading firms to earn strong profit splits from them. All the traders have to do is demonstrate good forex trading skills and pass the qualifications. Forex proprietary trading forms are becoming more commonplace and the industry is growing.

There are about 25 forex proprietary trading firms now offering funding for forex traders. Any trader who has demonstrated profitable trading on a demo account, but is short of money to fund a live account, should consider contacting these firms about qualifying for funding. This would give any forex trader with good trading skills a chance to build a large trading account and share in the profits. The proprietary trading firm supplies the funding to a forex trader in a live account, then the firm shares the profits with the trader.

This proprietary trading firms market sector is growing. Any individual who enjoys forex trading and who can demonstrate good trading skills can become a fully funded forex trader.  Any forex trader who lacks funding can use the money provided by various third party proprietary trading firms, as well as some private entities and individuals who have set up funding programs. Proprietary forex trading has a bright future ahead and thousands of accounts are being funded for traders every year.

How Do I become A Forex Proprietary Trader?

From the traders perspective, you must have a great forex trading system and be consistent with your trades. If you want to trade third party funds from a proprietary trading firm, there will be a qualification program and rules of money management to follow. But any traders who is successful at  demo trading is very likely to a be able to qualify for funding. Each forex proprietary trading firm has rules, so check them closely. Click on the link to a great illustrated article about getting  live trading capital and funding for your forex trading account from third party forex proprietary trading firms.

Having great trading skills, but not enough funds for a live trading account should not be a deterrent to success any longer. The proprietary firm providing the funding will provide you with the funds for your live forex trading account. So if you are a forex trader and you have a profitable forex trading system, but no funds to trade with, forex proprietary trading firms will provide you with capital to trade with and you can split the profits with them. It is like running your own miniature hedge fund!

Forex Proprietary Trading Firms

Since the forex market is a leveraged market, at 50:1 or higher, it becomes feasible for the proprietary trading firm as well as the trader to provide lots of buying power. If a proprietary trading form provides a $5,000 account to a trader at 50:1 leverage, this is $250,000 in currency buying power. Many firms provide 100:1 leverge and up to $1,000,000 USD buying power, and it is easy to qualify for much more. Any forex trader is eligible for funding as long as they can demonstrate their trading skills. This opens up forex trading as a career for anyone.

Forex Traders Need A Great Trading System

In order to qualify for funding from a “prop firm”  you need a profitable momentum and trend based trading system that makes lots of pips. The Forexearlywarning trading system is ideal for trying to qualify for funding with these firms. Look at the example trade below:

Forex Proprietary Trading System

Forex Proprietary Trading

The trader gets a push alert to their cellphone or desktop telling them that the NZD is strong in real time. Then the trader pulls up the NZD pairs all on one screen. They can buy the NZD/USD or sell the EUR/NZD for potentially strong profits with low or no drawdown. This great  charting system and trading system is available for 8 currencies and 28 pairs total.

Conclusions about Forex Proprietary Trading Firms: Prop firms can provide traders with a funded account with all the trading capital they need, but they still must have a great trading system. After some demo trading of your system you can decide if you would like to apply for funding from one of these prop firms.

Anyone who wants to participate in a forex trading business should have a business plan. In this article we will show traders how to approach setting up a business plan for trading the forex market. Just like any other business startup, you have to have a business plan in writing, and follow it.

Advantages Of A Forex Trading Business

Traders can work their home trading business from home, work, or anywhere in the world with a good internet connection and work space. Forex traders can work while they travel or manage another business, as long as they are near the computer. You can trade part time on the side while full time employed. Traders can take a day off whenever they want if they are sick or need a break. If a trader is mobile, they can set up notifications on their phone or mobile device to notify them as to when the market is moving. Most forex website and brokers have mobile options and impressive apps..

Forex Trading Business Plan, Startup Costs

Here are some fixed costs associated with starting up a forex trading business. All traders will need a desktop computer or laptop, good quality phone or wireless device if you are mobile, internet connection, and funds for funding a live trading account. Most charting systems like Metatrader are free with your brokerage account.

There are some optional costs associated with a forex trading business. Fees for forex education courses are optional. To reduce or eliminate the cost associated with education, you can go to the Forexearlywarning website and all of our online forex courses are free, and these education courses are the best in the retail trading industry. This will save a forex trader a lot of money as education courses can range up to $50,000. Also, some charting systems have a monthly cost but the Metatrader platform is free and works just fine. Reduce costs of your forex trading business with these tips.

Another optional expense might be the cost for trading signal or alert services. These can range between $40 and $200 per month. Once again top quality trading plans and live signals are available from Forexearlywarning.  Check out Forexearlywarning for only $19.95 per month. Forexearlywarning provides trend based trading plans, a complete and detailed trading system, and excellent tools for entering your trades. Doing this will keep your monthly operating cost very low. Keeping expenses low is good for all business startups, until you are trading profitably.

The  final expense of a forex trading business is risk capital or working capital to fund a live trading account. This is not money paid out, but funds that a trader deposits into an account that you, as a trader, completely control  There are a lot of misconceptions about funding a live trading account. Trading a leveraged market like the spot forex reduces the amount of working capital needed. With leverage of 50:1 and higher,  traders can enter the forex market with live accounts funded in the $2000-$5000 range and have plenty of equity to reap good profits.

You should not fund a live trading account at all until after you demo trade. There are no costs associated with a demo trading account, so no risk to your capital. You should never fund a live trading account until your demo trades are successful.  You may not need to fund an account at all if your demo trades don’t work out. Don’t take a chance trading live funds until your demo trades are successful. There are even some entities that will fund your trading account for you, if you successfully demo trade.

To protect your live account and working capital, make sure your broker is financially viable and maintains client account protections. After you successfully demo trade and get a live account funded, you can move forward with live account trading. Having a great trading system and implementing good money management procedures, trade after trade will make your live trading account and working capital grow.

Forex Trading Business Plan Checklist

Use this checklist of items for your trading business startup. Find a trading system you like, find a reputable broker, find a charting system you like, we suggest Metatrader to start. You can move on to more sophisticated charting systems and your experience level and personal tastes dictate. Find online forex trading courses to take, and make sure you are available to trade in the main trading session, which is the best time to trade the forex market.

Forex Trading Business , Trading System

As part of your trading system, traders should have simple but powerful trading signals, like the one you see above. This is The Forex Heatmap® from Forexearlywarning. This system tells you what pair to trade and it works for 28 pairs. The example above is a sell signals on the GBP/JPY.

Skills Needed For A Trading Career

Here is a list of some of the basic skills a trader would need to consider a forex trading business. A trader would need to have knowledge of how to operate a  personal computer or laptop, have basic typing skills, know how to download software programs from the internet, etc. They would also need to know how to set up Metatrader or other forex charting systems. They would also have to have the discipline to study the details of a trading system they are using, good reading comprehension, and the discipline to follow the trading system with demo trading.

Forex Trading Business Plan

Forex Trading Business Partners

Here are some business partners you might need as part of your forex trading business. A reputable forex broker, education provider (free or paid), signal and alert services, trading system provider that may also includes signals and alerts. It might also be a good idea to have a business partner and trade under a joint account. This might be a  good idea if you have a full time job or live in a location where the main trading session and most trading is in the middle of the night.

Forex Trading Business Entity and Taxes

As a “trader” you may be able to deduct quite a few expenses,  like your home office expenses. Understand the Internal Revenue Service definitions of “trader” versus “investor”. If you qualify as a trader, you can take the deductions. Self employed traders can file Schedule C. Income might be reported on Schedule D as capital gains. Traders can download annual trading data, with details of all trades, from their broker fairly easily. Traders might also consider trading under an entity like an LLC. These suggestions are for traders who reside in the USA. In all cases check with a tax advisor for guidance in the country that you reside in.

Conclusions About Forex Trading Business Plans – In this article we present as much information and ideas as possible for consideration to make your forex trading business startup successful. Use these ideas to think about how to improve your business plan on the way to forex trading success.

Heatmaps visually represent large amounts of data, graphically. A heatmap is a graphical representation of data that uses a system of color-coding to represent different values. Heatmaps are used in various forms of analytics, to visualize large quantities of data. Data visualization reduces the time needed to make decisions by observing a color coded, 2 dimensional map. They have wide applications in various business, science and financial markets. A heatmap of email use by location  is shown below.

Location Data Heatmap

Heatmap Applications and Data Analysis

Heatmap applications are wide and varied. They can be used for things like website analytics (pages visits, link clicks, mobile app clicks, etc), mapping, biology, meteorology, frequency and number of occurrences of events, risk assessment, sales statistics by geographic region, demographics, hardware systems status, etc. The number of applications seems endless. An example website clicks heatmap is shown below.

Website Clicks Heatmap

Financial Heatmap Applications

Heatmap applications to financial data are numerous. Financial maps are usually two dimensional color coded grids. These market map grids show performance or price movement of stocks, stock sectors, regional or worldwide stocks, bonds, currencies, interest rates, etc. They summarize large quantities of pricing data across different delayed time periods, or sometimes in real time.

Currencies Heatmap

This financial heatmap is called The Forex Heatmap®. It is a tool for forex traders that summarizes real time pricing data for currencies and converts the data into a convenient visual map. The above image is for the British Pound pairs. This map summarizes the real time pricing data for the GBP pairs along with 7 other currencies. Real time analysis of the forex pricing provides currency traders with a pre-programmed, web based, plug and play tool for quick determination of what pair to trade for profitable currency trading. This is a real time financial map.

Conclusions about heatmap applications: Heatmap applications are broad. These visual maps allow the end users to get the full story on almost any type of data with less interpretation. Heatmaps will provide tremendous insight to the data and better decision making.