Monday, March 9, 2009
Best Forex Trading System
Forex Trading Advice
Forex trading success to a degree relies on method - but if you don’t have confidence in your method, you will never have the discipline to apply it and without discipline, you simply have no method at all.
Why the Forex market?
Yeah, you can jump in and try to learn on your own. But we'll guarantee that you'll lose money. Just giving your money away like that and not making anything doesn't seem very productive. The way to make money in the Forex market is by predicting a price movement of a currency pair and investing right before and exiting right after. This usually happens a few times in a day. Real day traders and professional traders do just that, hence the name "day" traders. Huge companies like Citi Group and JP Morgan Chase do this every single day and employ thousands of professionals that do it for them.
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Wednesday, March 4, 2009
Crash Market Rules for Traders
While what you are about to read may have more to do with psychology, over actual trading, all is of great importance in the present environment.
HELLO FROM CHINA...
Good afternoon from China! Wow! I think I may have just traveled for about 24-hours to get to Dalian finally last night... I have quite a few stories for you already; I am seeing many great things too - namely, some great investment opportunities for all traders! I will share them with you as the week progresses!
I have to tell you, when I was flying over the ice caps yesterday, I couldn't help to think how amazing this world is and how much there is to see all the time. Don't get me wrong, I've traveled the world over, I even went to school in London; however, sometimes, from time-to-time, we just forget in our day-to-day lives. For some reason, the ice caps reminded me.Jittery Markets Spell "Range-Bound"
Forex markets are yet to break out of the recent ranges; something that many expected last week with the ECB and BOE rate cut decisions...
Today, the Bank of Canada slashed rates 75 bps to a 50-year low of 1.50%, bringing the USD/CAD differential to 0.5% and the EUR/CAD differential to 1%. What this means is that there really is no carry trade effect in either currency pair and markets will remain locked in the recent range until something else surfaces...
Euro and Pound Moving Higher - Here's a Piece of the Puzzle
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Why is the Yen Sinking? You Might be Surprised..
We're setting up to see some pretty big volatility in the upcoming week... Towards the end of last week, we really witnessed the yen begin to lose steam... And, many traders are struggling to find a reason supporting cross currency strength... Here's the thing, really, there's not too much "flight to safety" reasoning behind the yen today, nor was there yesterday. In fact, the "flight to safety" reasoning is really more psychological than anything else.
Here's what you WON'T read anywhere else but here... While the rest of the world is trying to figure out why the yen has come under weakness, the reasoning is truly the potential deterioration in the credit quality of U.S. Treasuries.
See, it is a fundamental principal in economics that anytime you increase the money supply, inflation kicks in. Right now, the market is pricing in deflation. But there's more to the story. Three weeks ago, in the U.S. Treasuries $30 billion auction, there were no buyers of U.S. debt. Mysteriously an anonymous bid stepped in to save the day...
Just read this excerpt from James West, "Last Thursday, an $30 billion auction in five-year notes failed to stir the interest of traditional primary dealers. The auction itself was saved by an anonymous "indirect" bid.
Buyers are discouraged by the prospect of what is expected to amount to $2 trillion total issuance for the full year of 2009. The further out the maturities on notes, the more bearish the sentiment towards them. The only way to entice buyers is through the increase in yields."
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Maybe Australia is First Out; Maybe Not.
FX Trading - Maybe Australia is First Out; Maybe Not.
Worried about your countries currency? The easy solution to your worries: don't cut rates when the market expects it.
The Reserve Bank of Australia announced their latest monetary policy decision overnight. Sitting at 3.25%, most analysts figured that was plenty of room for the RBA to knock a few more basis points of their benchmark.
Wrong.
Even though the RBA slashed about 4% off their benchmark since September, they opted not to make any changes this time around. Australian dollar? Zoom, Zoom!
Yeah, the Aussie rocketed-up once the market realized the RBA wasn't budging this month. This inaction shored-up confidence (perhaps only temporarily) in Australia's economy ... effectively saying, "Things aren't really as bad down here as they are most everywhere else."
For now it seems they're content in Australia with government stimulus and previous rate cuts. For now they don't expect growth to roll off a cliff. For now their economy looks set to out-under-perform (i.e. slow less sharply than its counterpart countries).
And while rather subdued from its glory days just over a year ago, the Australian dollar was able to achieve the title of best performing major currency in the month of February. Unfortunately, a pause in the interest rate downtrend isn't going to be enough to stop its longer-term downtrend versus the US dollar.
We've mentioned it plenty of times recently - Jack especially - but we're targeting another 46% downside for the commodities complex from current levels. That is, in the chart below we're looking to at least retake the levels from Oct 2001 when the rocket took off.
Central bankers boast they know history, but.
You might want to sing it note for note
Don't worry be happy
In every life we have some trouble
When you worry you make it double
Don't worry, be happy......
Ain't got no place to lay your head
Somebody came and took your bed
Don't worry, be happy
The land lord say your rent is late
He may have to litigate
Don't worry, be happy
Look at me I am happy
Don't worry, be happy
Here I give you my phone number
When you worry call me
I make you happy
Don't worry, be happy
Ain't got no cash, ain't got no style
Ain't got not girl to make you smile
But don't worry be happy
Cause when you worry
Your face will frown
And that will bring everybody down
So don't worry, be happy.....
Dodd Dollar Dump
"The general shape of the universal delusion may be indicated by three of its familiar features.
"First, the idea that the panacea for debt is credit.
"Second, a social and political doctrine, now widely accepted, beginning with the premise that people are entitled to certain betterments of life.
"Third, the argument that prosperity is a product of credit, whereas from the beginning of economic thought it had been supposed that prosperity was from the increase and exchange of wealth, ad credit was its product.
"Result: Much more debt. A world-wide collapse of foreign trade, by far the worst since the beginning of the modern epoch. Utter prostration of the statistical serpents. Credit representing many hundreds of millions of labor days locked up in idle industrial equipment both here and in Europe. It is idle because people cannot afford to buy its product at prices which will enable industry to pay interest on its debt. One country might forget its debt, set its equipment free, and flood the markets with of the world with cheap goods, and by this offense kill off a lot of competition. But of this thought occurs to all of them, and so all. With one impulse, raise very high tariff barriers against one another's goods, to keep them out.”