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Forex Profits
2008-03-04 14:28:00
Look the advantages and weaknesses of trading using the hedged, grid trading system to trade volatile markets. Look at how money can be made by breaking a number of trading truths or principles; there is nothing to gained by entering into buy and sell deals at the same time. The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let's take some to look at this more closely. Let's say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The b
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Pivot Points
2008-03-01 08:45:00
Pivot Point defined: A technical indicator derived by calculating the numerical average of a particular stock’s high, low and closing prices. A technical indicator derived by calculating the numerical average of a particular stock’s high, low and closing prices. In a nutshell, pivot points are exactly what they sound like - the point at which the market is expected to turn - if it's been going down, a pivot point is the value at which it will reverse the trend and begin to climb. If it's been rising, then the pivot point is where the sentiment of the traders will turn and begin a downward trend. Obviously, being able to predict major movements in the money market is a valuable skill, since it hints at the where the market is moving and whether or not this i
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Forex Trading
2008-02-25 17:59:00
Foreign Exchange Market, or Forex as it is commonly called, is an international exchange market to buy and sell different currencies from around the world. An investor has the ability to buy and sell these currencies in order to create gains from small movements in the value of one currency over another. The forex market is open from Monday at 0:00 GMT until Friday at 10:00 GMT. For this reason Forex traders are not limited to the general time constraints of the New York Stock Exchange or NASDAQ.This versatility attracts many investors to become Forex traders. The liquidity of the Foreign Exchange Market is also very attractive for the Forex investor as trades range from 1 to 1.5 trillion dollars on a daily basis. These massive amounts of trades make it extremely difficult for any one trad
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Welcome to Forex
2008-02-21 06:55:00
Foreign Exchange (Forex ) describes the purchase of a particular currency from an individual or institution and the simultaneous sell of another currency at the equivalent value or current exchange rate. Essentially, the process of exchanging one currency for another is a simple trade based on the current rates of the two currencies involved. At the core level of the world’s need for money exchange is the international traveler. When traveling from the US to England, for example, you will of course need the local currency to pay for transportation, food, and so on. Upon arrival at the airport you will surrender (sell) your US Dollars in order to receive (buy) the equivalent in British Pounds. In this example, you sold the USD and bought the GBP, conversely the foreign exchange c
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Forex Profitably
2008-02-19 16:26:00
Start with candlesticks. Get the best literature you can afford on candlestick charting and just study that to the point when you can be intuitive when looking at them. At this stage you can then bring in other indicators. Also you will discover this way whether forex/any trading for that matter is for you before you lose your money in case it is not for you as either you will become quite passionate about reading into market psychology prevalent in charts or it will bore you to death.You need to enjoy the process to be really successfull. And what a process it is, so many people think it is a get rich quick and that is why only about 3% prevail - it will take a few years to be consistent enough to say you can earn a living from trading. Along with your candlesticks learn learn learn prope
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G7 x Currencies
2008-02-18 09:01:00
In its annual meeting, the G7 virtually ignored the situation in forex markets. In previous years, the G7 used the so-called "communique," which essentially functions as a summary of the meeting, to rebuke China for not allowing the Yuan to appreciate at a satisfactory pace. This year, the RMB has appreciated markedly- by 9% on a trade-weighted basis- and thus, the G7 opted not to apply further rhetorical pressure. In addition, several of the most prominent EU member states had hoped to work a discussion of the Dollar into the communique, but alas, any mention was notoriously absent. Analysts have speculated that this is due both to America's political indifference towards the valuation of the Dollar as well to a disagreement over what the correct valuation should be, if indeed it is und
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Debt Induced Recession
2008-02-14 19:58:00
Debt is a way of life! Corporations, individuals, and Governments finance some of their spendings through borrowing. This some times may not be very bad and can even be advantageous in many instances. For Corporations, financing through debt keeps cash available for other uses. For Governments, issuing debt allows them to run uninterrupted until taxes can be collected. For Individuals, debt is the only way most can purchase items such as homes and cars. But no matter who does the borrowing, too much debt can be a heavy burden that weakens financial health. When the interest on debt becomes too large an expense, other expenses and spending must suffer. This reduction in spending by Corporations, Governments and individuals, can cause a significant slowdown in the economy


Central Banks and Monetary Policy
2008-02-14 19:57:00
Central Banks attempt to achieve economic stability by varying: A. The quantity of money in circulation. B. The cost and availability of credit, and C. The composition of a country's national debt. Central Banks have three instruments in order to implement monetary policy: A. Open Market Operations: The buying or selling of Government bonds by the Central Bank in the open market. If the Central Bank were to buy bonds, the effect would be to expand the money supply and hence lower interest rates, the opposite is true if bonds are sold. B. Reserve Requirements: A percentage of commercial banks' deposits are kept on deposit in the Central Bank. This is affecting the money supply and credit conditions. If the reserve requirement percentage is increased, this would
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The Price/Earnings to Growth (PEG) Value Ratio
2008-02-14 19:56:00
The PEG (Price/Earnings to Growth ) ratio is a tool that can help investors find undervalued stocks. It's not as well known as its "cousins," the P/E and P/B ratios, but is just as valuable. When used in conjunction with other ratios, it provides investors a perspective of what the market thinks of a stock's growth potential relative to Earnings per Share (EPS) growth. The PEG ratio compares a stock's Price/Earnings (P/E) ratio and its expected Earnings per Share (EPS) growth rate. If the PEG ratio is equal to 1, it means that the market is pricing the stock to fully reflect the stock's EPS growth. Which is "normal," in theory, because the P/E is supposed to reflect a stock's future earnings growth in a rational and efficient market. If the PEG ratio is great than 1 it could i
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Money Markets
2008-02-14 19:54:00
Money Markets are the financial markets for short-term borrowing and lending.This contrasts with the capital markets for longer-term funds. The need for money markets arises because receipts of economic units do not coincide with their expenditures. These units can hold money balances — that is, transactions balances in the form of currency, demand deposits, or NOW accounts — to insure that planned expenditures can be maintained independently of cash receipts. Holding these balances, however, involves a cost in the form of foregone interest. To minimize this cost, economic units usually seek to hold the minimum money balances required for day-to-day transactions. They supplement these balances with holdings of money market instruments that can be converted to cash quickly an
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Money
2008-02-14 19:53:00
"Money is like a sixth sense without which you cannot make a complete use of the other five." William Somerset Maugham (1874 - 1965) Money permeates every relationship in life, every interpersonal interaction: Friendship and Courtship, Partnerships, Investments, Living Together, Marriage, Divorce, Death and etc! Money is a commodity which takes on other meanings and emotions. Money becomes the emotional football that everybody may use to throw back and forth at all others and never resolve their real issues. Workers earn it, Spendthrifts burn it, Bankers lend it, Women spend it, Forgers fake it, Taxes take it, Dying leave it, Heirs receive it, Thrifty save it, Misers crave it, Robbers seiz


Liquidity
2008-02-14 19:52:00
There are two aspects of liquidity: A. How readily an asset can be turned into cash (the ease with which buyers and sellers can be brought together and can agree on a price) is called liquidity. An important consideration in assessing risk is how liquid various financial assets are. Therefore, assets that are less liquid tend to have a wider spread between the "bid" (the price offered by a would-be buyer) and the "ask" (the seller's asking price). Cash is King! You need cash and liquidity for freedom and security. The cash in reserve provides money for not only emergencies but opportunities as well. A cash reserve provides the foundation for your entire financial position. You should get your cash reserve in order before taking on any risky investments with money you can n
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The Real Estate Bubble!
2008-02-14 19:50:00
We live in a time when wish fulfillment matters above all. Lately I'm seeing a prime time TV ad with several success-driven faces mouthing the phrase, "I will own a Jaguar." Never mind that a Jag today goes for what a starter home in a Midwestern suburb used to cost about 10 - 15 years ago. And speaking of wishes and homes, we know that ownership of the latter is, after all, the American dream. It's just that cost and income have always kept some folks from partaking. Yet lenders have apparently discovered a way to create the illusion of owning a home when, arguably, there is no "ownership" at all. For a lot of wannabe homeowners, lining the pockets of lenders is the price for playing along. Trends in residential real estate over the past decade help explain how this i
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Forex
2008-02-14 19:49:00
While the value of a country's currency remains stable within its own borders, in the same time its value can widely fluctuate compared to that of other countries. Exchanging rates keep on changing constantly and supply and demand for any given currency, and thus its value, are influenced by economic factors, political conditions and market psychology. Betting on the spreads between countries" currencies by placing "buy" or "sell" orders is what Forex trading is all about. Although, the value of the daily turnover in the forex markets substantially exceeds those of other markets, this is not the domain of the big players only. Small investors can also participate! The market for foreign exchange is the world"s largest financial market. Trading is conducted through an "over-


Investment Philosophy
2008-02-14 19:48:00
People choose to spend their money in many ways. The bulk of most people's income goes for day-to-day living expenses: Food, shelter, and clothing. But even if you live a no-frills lifestyle, it is important to make some investments for the future. A relatively small sum set aside each year can make an important contribution to your long-term financial security. The theory behind investing is elementary: Money not needed now can be invested to produce more money later, which will come in handy when needed. We all need money, not just for our day-to-day lives, but for bigger plans -- buying a house, a car, a business, etc. There is one major idea which comprises the philosophy of investing: The Future Value of Money! Future value is the sum to which an amount inve
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Stock Market Crash. A Hypothetical Scenario?
2008-02-14 19:47:00
Twenty months ago you bought the XYZ stock for 100. You were right to follow your hunch with the XYZ's. Your 100 has skyrocketed into 275 in just twenty months! Well, this Thursday you've been checking the stock prices and in the newspaper the headline reads "CRASH". You read on and discover that yesterday the stock market had dropped another 9%, not to mention the fact that XYZ's stock value had been deteriorated to 57. You can't believe it! Twenty months of expectations and dreams, all gone, in just a few days! What brought about this crash? Why such a drop in such a little time? One major reason for the crash was fear. Fear of a correction. Fear of a drop. Fear of being to late to get out ... The past twenty months had brought large stock increases, people had been mak
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Investing and the Frustrated Speculators
2008-02-14 19:46:00
How come when I buy a stock it always goes down? How come I almost always get the feeling that the market is out to get me? Well the market is never out to get you ... But ... You must take the heat out of the market! Therefore, you must always be ready to accept that the market will almost always go lower than you think. There is an old trader's expression: I'd rather be out of a market wishing I was in, than in a market wishing I was out. At some point you are going to notice that markets seem to go down faster than they seem to go up. I think that this is because speculators are most of the times initiating long positions, hoping the market will rise. Therefore, speculators are more easily panicked than investors, so when the market goes against them, they
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Herd Mentality: Are You a Lemming?
2008-02-14 19:44:00
Many investors react to market conditions like lemmings:Stampeding up the high mountain when markets are rising and down into the cold deep sea when markets are falling!This "herd" mentality can be extremely dangerous to your pocketbook. Why? Because investors often get into the market too late and get out too early! You should never let emotions cloud your trading judgment. But you can turn the crowd's fear and greed to your advantage! To exploit market psychology, you must act in a contrarian fashion, taking the contrary course when the crowd falls prey to its emotions. Extreme optimism can coincide with market tops. People think the sky's the limit and send stock prices flying. Savvier investors sell into this frenzy and run to cash. The market tanks soon afterward! Extr
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Forex Hedged Grid System
2008-03-14 10:09:00
The hedged grid system been used successfully (and highly unsuccessfully) over the last few years. Unfortunately the failures tend to discourage traders from taking advantage of this great system. The failures are mainly due to ignorance, impatience and greed (common reasons for trading failure).In a nutshell the grid system uses the following methodology. You start by buying and selling a currency. When the price moves a predetermined distance (grid leg) you cash in the positive leg, leave the negative leg and buy and sell again. Sooner or later the system goes positive and you would then cash in when it is positive.Money is made when the price retraces 100%, 50%, 33% at various levels. This starts looking like a strategy that supports the Fibonacci concept. The grid system is also based
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Forex Education
2008-03-18 15:11:00
As you can see there are huge potentials to make profits on the Forex . But like any financial market, there are risks associated with Forex trading, and even the most experienced of traders makes a wrong decision every once in a while that ends with them losing a large sum of money. Because the Forex market is such a volatile and unreliable market, it is absolutely necessary that you have a thorough knowledge of trading techniques and plans, market indicators, as well a clear understanding of the Forex market itself.Every good Forex trader knows that the secret to success comes from a well planned strategy or system that enables them to determine profitable trades. A system usually is used to find good trades, though you do need to analyze the market before you can create a good syst
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