Thursday, 31 December 2009

2009 Stock Market Review

With no shortage of drama, 2009 has been a much more pleasant year than the eventful yet dreadful 2008. Year to date, the S&P500 has returned about 22%, in contrast to a 38% decline in 2008. Although there has been no formal announcement, the consensus is the US finally exited one of the longest recessions in its history over summer, with 3rd quarter GDP growing at an annualized 2.8%. Just as important, financial institutions are no longer on the brink of collapse and investors are not in panic mode any more. Appetite for risk is back, evidenced by Junk bonds (JNK) returning nearly 20% year to date, just 10% below its pre-Lehman collapse level. According to EPFR Global, year-to-date money market fund outflows as of Nov 18, amounted to $452 billion, as investors reallocated assets to equity and bond markets. 2009 has not been exactly a smooth journey, however, and investors have been showered with some most extraordinary events. This month we summarize some of the key events that have led us to where the markets stand today.

Read the full article at: http://seekingalpha.com/article/177378-our-stock-market-year-in-review

Monday, 21 December 2009

What Is Online Forex Trading?

Do you know what Forex trading is? Some people have heard of this type of trading, others have not. If you haven't, it might be something you are interested in trying. Forex trading stands for foreign exchange trading. What it consists of is the buying and selling of different currencies. This is done simultaneously, and there are people who make a lot of money with this kind of trading. This is apparent by the 1.9 million dollar turnover in this market that happens every day. Also a lot of it is done online. Online Forex trading is very popular.

The most common currencies to trade are the Euro and the U.S. dollar, and the U.S. dollar and the Japanese Yen. However, nearly all of the Forex trading done involves the major currencies of the world. These include the Euro, Japanese Yen, U.S. dollar, Canadian dollar, British Pound, Australian dollar, and the Swiss franc. The Forex exchange is different from other exchanges, such as the New York Stock Exchange, in that it does not have a physical location or central exchange. The exchange day begins in Sydney, then moves to Tokyo, on to London, and finally ends in New York. Each country takes the responsibility of regulating the Forex exchange activities in their own country. So there is no overall regulatory agency. However, this does not seem to be a problem and most countries do very well at overseeing Forex exchange activities.

There are a lot of things that influence the Forex rate. For instance, economic things, like interest rates and inflation, and also political things, such as political unrest in other countries and major changes in government cause up and down changes in the Forex rate. However, these things tend to be short-term, and don't affect it for long.

Online Forex trading sites are easy to find by surfing the Internet. Most of them provide a wealth of information for the first time trader. You can find out about the history of Forex trading, how to co it, tips on being successful, etc. You can also start trading with as little as $250 in your account on some sites. For anyone who is interested in currency or trading, it is something you should check out.

As with any type of trading, there are no guarantees that you will make money or that you won't make money. It is a smart choice to learn as much as you can about online Forex trading before investing any money and doing any trading. It is a fact that informed investors do better than those who don't know much about what they are trading. So get the fact before you dive in. You might just make a little money in a very interesting currency exchange.

Source: http://www.forexinformation.info

FOREX Daily Outlook

Thursday, 17 December 2009

Forex Patterns & Probabilities: Trading Strategies for Trending



While most books on trading deal with general concepts and shy away from specifics, Forex Patterns and Probabilities provides you with real–world strategies and a rare sense of clarity about the specific mechanics of currency trading. Leading trading educator Ed Ponsi will explain the driving forces in the currency markets and will provide strategies to enter, exit, and manage successful trades. Dozens of chart examples and explanations will guide you each step of the way and allow the reader to "look over the shoulder" of a professional trader hard at work at his craft.

This book provides traders with step–by–step methodologies that are based on real market tendencies. The strategies in this book are presented clearly and in detail, so that anyone who wishes to can learn how to trade like a professional. It is written in a style that is easy to understand, so that the reader can quickly learn and use the techniques provided.

Monday, 14 December 2009

Forex Trading - 10 Essential Tips You Must Do and 10 Errors to Avoid

Here are ten things you must do and 10 things to avoid when formulating and executing your forex trading strategy. If you want to be successful at forex trading then read and understand the points below there essential to achieve currency trading success

1. Don’t day trade

It doesn’t work! All short term volatility is random so you have no chance of winning longer term.

2. Don’t buy a Currency trading system with..

A hypothetical track record.

These are done in hindsight knowing the closing prices so avoid them. In forex trading its more difficult, you have to make money going forward!

3. Don’t trade off news stories

News is discounted by the markets instantly and is impossible to trade so don’t try.

4. Don’t mix fundamentals and technical

There separate, you are either a technical or fundamental trader - you can’t combine both.

5. Don’t use scientific theories

The king of these is Elliot wave and it doesn’t work.

It’s supposed to be objective but everything about it requires subjective judgement.

If markets moved to a scientific theory we would all know the prices in advance and there would be no market!

6. Be Objective

Use objective criteria to execute trading signals. Avoid subjective theories (like Elliot wave mentioned above) or cycles, these are subjective and mean your emotions can get involved

7. Don’t chase your tail

Gets a currency trading system you are confident in and stick with it. Don’t chop and change it!

8. Don’t forget to place stops immediately

Always place it as soon as you have entered a trade. Never use a mental stop or you will be tempted to run losses.

9. Don’t have an ego

Many traders like to see that market as they want to and not as they really are. Leave you ego behind and accept the market price is the RIGHT price.

10. Don’t work to hard

Many forex traders think the more they put in the more they will get out.

While this is true in many professions, it is not true in the forex markets – you only get rewarded for being right.

Successful forex trading is all about working smart not hard.

Now ten things you must do:

1. Get a simple system you understand

Simple systems work best and you only need a few rules or indicators in it. Don’t complicate it, the more rules and the more parameters, the more likely it is to break or lose in trading.

2. Make sure you have confidence & discipline

Develop it yourself and you will get confidence that leads to discipline. If you try and follow someone else’s system you will lack both and fail.

3. Use a technical approach

Takes less time and also takes into account human psychology which moves all forex prices.

4. Be patient

Only execute your trading system in line with your trading signals and don’t be tempted to chase profits.

5. Always look for confirmation

Never hope a support or resistance level will hold, get the odds on your side by using momentum indicators to confirm first, this will dramatically increase the odds of success.

6. Ignore others

Trade in isolation and ignore others. Don’t discuss what you are doing, this will keep your emotions out of your trading.

7. Have goals & a plan

Have a realistic plan and profit goals. Sure people get rich overnight but their a minority! If you can make 50 – 100% per annum your up there with the best traders.

8. Take risks

Forget restricting risk to much, when you see an opportunity go for it and take calculated risks this is not being rash, it’s the reality of trading FX.

9. Know your edge

If you don’t know your edge i.e. why you should win at forex trading while 95% lose you don’t have one so you will be joining them!

Get the right forex education and know your edge before you begin.

10. Enjoy what you do

If you sweat about positions, feel edgy, or worry about trading it’s not for you. You should view trading as enjoyable and a challenge, if you don’t forget it and do something else.

We have expanded on all the points in our other articles so check them out.

Keep in mind forex trading is not easy very few win and most lose. The good news is, if you understand and apply the above, you could soon be making big forex profits.

GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER

On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html

Article Source: http://EzineArticles.com/?expert=Monica_Hendrix

Monday, 7 December 2009

FOREX Weekly Outlook



FREE Forex eBooks

Forex eBook - Read and Learn

Forex Cheat Sheet - Forex Secrets


NEW: FREE FOREX TRADING DIARY

Which Forex Broker?

This is most definitely the most significant step you make. Different brokers offer different spreads, some charge for guaranteed stop losses, some have better charting tools, no slippage etc.

Finding The Right Forex Trading Broker...

By: John Howard
Forex is nothing but the Foreign exchange market which is the arena where two different nations can exchange there currencies for a mutually agreed upon rate. This can be considered to be equal to stock market with a major difference where people try to earn money through the increase in the currency rates not through the increase in stocks! Normally all the currencies are traded in pairs where each of them is given an abbreviation.

The most important currencies that are used in the trading are Dollars, Pounds and Yen. A Forex trading broker may act in between two firms or individuals. A Forex Brokerage Firm may be an individual who acts as an intermediary between the buyer and the seller and works for them for a small commission. In reality the very less need for the Forex brokers came up due to the entry of Forex into the O.T.C market. But on the large scale the Forex trades are executed between two individuals or firms thus eliminating the need for a broker. The assistance of a good Forex broker is very essential in order to achieve success with the money that the users may invest.

A Forex broker may also act as a dealer who will provide online trading services to allow the individuals/firms to speculate on the rapidly changing foreign exchange rates. Normally as any other trading it is best to use professional Forex brokers. They will help you understand the market better. They guide the individuals and firms to start trading on there own. Recently Many U.S and other international companies may provide with software's and other materials for users to speculate the changes in the foreign exchange rates. Normally there are trading rules to be followed. Trading rules are put up by the Forex Brokers.

We can classify the membership levels into three types: As the first level we have the Administrative Level who are the Forex Dealers ie the brokerage accountants, next we have the Trading Level who are the Forex Traders ie the real accounts, on the last level we have the Study Level who are the Students ie the demo accounts who are the beginners, they maybe people who are new to the market.

The Forex dealers are the Market Makers of a particular system dependent on the country, who have their own set of calculated accounts. These are the accounts which will allow them to open individual trading accounts for their clients. These accounts will help there clients to access the dealing rooms that is rooms where they can start there trading. Care should be taken to ensure that a proper broker is chosen. A broker should have proper software that will indicate the amount of profit that is made while trading currencies. A broker should also provide excellent customer service so as to enable the client to have an overall good experience with the trading.

The best Forex brokers maybe those who help beginners to trade in the market with even minimal amounts. They are people who can guide the clients to have good leverage, easy to use software, proper spread sheet analysis showing statistics and graphs of the current market and loss protection features.

Article Source: http://www.articlesbase.com/ - Finding The Right Forex Trading Broker

Forex Definition - What is Forex Trading?

Here is a simple forex definition with some example trades.

Forex is basically where buyers and sellers conduct foreign exchange transactions. The Forex market is useful because it helps enable trade and transactions between countries, and it also allows an investment opportunity for investors like me and you. 



Individuals who trade in the Forex market typically look carefully at a country's economic and political situation, as these factors can influence the direction of its currency. One of the main aspects of the Forex market is that the volume of trading is so high, it is estimated that around $4 trillion goes through the Forex market each day. Forex is also known as the foreign exchange market.

Examples of forex trades:

If the investor believes the Canadian dollar will become stronger against the US dollar, he would take a short (sell) position in the USD-CAD currency pair.

Another example, if one was to think the pound is to get stronger against the dollar they would take a long (buy) position in the GBP-USD currency pair.

What one must remember is whenever a trade is placed, you are in a loss whether its a long or short trade until the price you bought it for is met.

GBP-USD : 1.052 / 1.054
If you were to buy this (take a long position) at the price quote above there would be a 2 pip spread which means, until the price goes up 2 pips you are evens. The opposite would be the case if you were to take a short position.



What does it mean: 'long' or 'short' position?

In trading terminology, a long position is one in which a trader buys a currency at one price and his or her goal would be to sell it later at a higher price. In this example, the trader benefits from a rising market. 



A short position is one in which the trader sells a currency in speculation that it will depreciate. In this scenario, he or she benefits from a declining market. 


See our other articles and videos about what forex is.





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