May 11, 2010

Forex Crunch Trading Forex on your Mobile? Think Again

Forex Crunch Trading Forex on your Mobile? Think Again

Trading Forex on your Mobile? Think Again

Posted: 11 May 2010 02:00 AM PDT


Today’s smartphones and special forex applications enable trading using a mobile phone. But do we always want to use this technology?

Internet on mobile phones is available for quite a while, but it was rather limited. Some forex traders connected to the internet in order to get a quote, but not more than that. In 2007, the technology significantly advanced:

The launch of the iPhone in 2007 was a revolution in mobile phones – WiFi abilities became common on mobile phones and specialized applications of all sorts of kinds became available in the iPhone App store, and later for other phones as well.

The forex industry is technologically advanced, and jumped on this wagon as well. Brokers such as FXCM, CMS Forex, FxPro, eToro, ForexYard launched special applications for mobile phones.

These applications often have chart that can be moved with two fingers, quick access to quotes and the ability to make trades in your account. Sounds great, right?

Well, here are some disadvantages:

The technology: Despite the big technological leap, these apps are still somewhat limited. The desktop software will always be more sophisticated and have more options than the mobile app. The mobile app might be enough for some traders, but insufficient for others.

Addiction: Many traders get addicted to trading. They stick their nose to the computer screens and watch every tick in the chart. This may lead to taking bad positions and losing control of their strategies. So, are you sure that you’d like to be connected while walking on the street? This is a chance to disconnect, relax and make a fresh start.

If you still prefer being connected while you’re on the go, I recommend limiting the usage. For example, using the mobile application only for manually closing the position but not researching and starting a new one. This way, you’ll utilize the connectivity but not the research tools that are somewhat limited on a mobile phone. This will also reduce the chance of addiction.

Do you trade with a mobile phone? How does it feel?

Want to see what other traders are doing in real accounts? Check out Currensee. It's free.

Forex Daily Outlook – May 11 2010

Posted: 10 May 2010 02:00 PM PDT


U.S. IBD/TIPP Economic Optimism is expected to rise and the Wholesale Inventories indicate a rising demand in the market while Britain’s Manufacturing Production and Industrial Production predicted to drop reflecting market deceleration. Here is today’s review. 

In the US, IBD/TIPP Economic Optimism is expected to rise in 0.5 points bringing more optimism to the market after Non -Farm Employment Change showed a rise of 35000 in the number of employed people in the market.

Later in the US, Wholesale Inventories released monthly is foreseen a drop of 0.1%   from 0.6% in the previous month which is another good sign for the market’s activity since a decline in Wholesale Inventories indicates that retailers are buying more goods to meet strong or rising demand.

For more on USD/CAD, read the Canadian dollar forecast.

In Europe German Final CPI released monthly, measuring the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of Inflationary pressures is expected to remain of  -0.1%  indicating deflation and the German Wholesale Price Index is also heading for a drop from 1.3% to 0.3% following the same tendency.

More in Europe, Switzerland’s SECO Consumer Climate is expected to edge up by 9 points from -7 in the previous month indicating a good business climate and a favorable insight on future consumer spending.

Finally in Europe, Deutsche Bundesbank President Axel Weber, delivers a speech about exit strategies in financial politics at the CER-ETH/KOF lecture, in Zurich. And will have impact on Eurozone’s key interest rates and future monetary policy;

For more on the Euro, read the EUR/USD forecast and Casey Stubbs' latest analysis.

In Great Britain, Manufacturing Production is predicted to drop by 1% from the rise experienced in the previous month, indicating poor industrial production. 

More in Great Britain, Industrial Production is also expected to fall to 0.3% from 1.0% in the previous month indicating market deceleration.

Read more about the Pound in the GBP/USD forecast.

That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It's free.

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