Set limit orders on the trading of stocks.
Avoid overtrading. Do not trade a large number of stocks at once.
Do not base decisions on daily ups and downs. Observe the long term trends. Avoid trading based on rumors.
Online trading is a good tool to earn a living as well as to supplement regular income. However, before venturing into online trading, an investor should carefully research on the risks associated with it and prepare for them
Wednesday, November 18, 2009
Benefits of Online Trading
Transparency: Online traders have complete information from the time of order placement till the final settlement. Every stage of online trading is subject to scrutiny, as this provides transparency to the trading process.
Best prices: Investors can get the best quotes for securities due to high transparency in the system.
Added convenience and liquidity: Online trading can be carried out anytime during business hours. This provides liquidity to investors.
Low commissions: Investors can make transactions frequently, without worrying about the burden of commissions. This makes day trading and short-term trading more feasible.
Best prices: Investors can get the best quotes for securities due to high transparency in the system.
Added convenience and liquidity: Online trading can be carried out anytime during business hours. This provides liquidity to investors.
Low commissions: Investors can make transactions frequently, without worrying about the burden of commissions. This makes day trading and short-term trading more feasible.
Dangers of Online Trading
Technology problems: This includes delays in transactions due to Internet connection outages or power failures.
A mentor’s absence: Lack of guidance from an experienced broker may lead to formulation of improper trading strategies, resulting in huge losses.
Overtrading: Online traders generally have a long term strategy before investing. However, the lure of capitalizing on short term movements makes them buy and sell more frequently. The low level of commission in online trading further lures the investors into day trading. This takes the traders away from their well-researched long term trading strategy, causing losses in the long run.
A mentor’s absence: Lack of guidance from an experienced broker may lead to formulation of improper trading strategies, resulting in huge losses.
Overtrading: Online traders generally have a long term strategy before investing. However, the lure of capitalizing on short term movements makes them buy and sell more frequently. The low level of commission in online trading further lures the investors into day trading. This takes the traders away from their well-researched long term trading strategy, causing losses in the long run.
How to Trade Online
In online trading, orders are implemented with the help of online trading platforms offered by various brokers. Investors place the orders directly on a broker’s site. The broker executes the orders on the stock exchange and makes payments on behalf of his clients. Brokers also provide their clients with market data, news and charts through their online platforms. This is done to help them in taking informed decisions. They charge software usage fees and trading commissions for their services. An investor can trade in more than one product or market through the same account and software.
Online Trading, Trade Online
Online trading is the process of buying and selling financial securities, commodities and currencies through the Internet. In order to trade online, investors need to exercise patience and use the right proprietary softwares provided by various brokers
Thursday, November 12, 2009
European Market
Later during the day trading, just earlier than the Asian trade hours comes to a lock, the European market takes above in custody the activity of the currency market. These FX exchange time sectors are extremely solid and include a number of major financial markets that could stand in as the representative capital. However, London eventually takes the honor in crucial parameter for the European market. Official trade hours in London are between 7:30am and 3:30pm GMT. Fore second time, although, this trading period is extended due to the presence of additional capital markets (counting Germany and France) before the certified open in the U.K.; while the conclusion of the meeting is pressed rear as instability holds awaiting for the London market to stick after the close. Therefore, trading in European market is seen successively from 7am to 4pm GMT.
Asian Trading Session
Asian Trading Session When liquidity is restored to the FX market following the weekend passes, the Asian market are obviously the initial to see achievement. Illegally, action from this division of the globe is represented by the Tokyo finances markets, which reside from midnight to 6am Greenwich Mean Time. However, there are a lot of other nations with substantial haul that are there through this period counting China, Australia, New Zealand and Russia, along with others. Taking into account how these scattered markets are, it makes sense that the commencement and end of the Asian sessions are stretched further than the normal Tokyo hours. Allowing for these unusual markets' action, Asian hours are calculated to run between 11pm and 8am GMT.
Wednesday, November 11, 2009
Central banks
National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high—that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.
The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.[7] Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.
The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.[7] Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.
What is the global Forex market?
Today, the “Forex” market is a nonstop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are continually and simultaneously bought and sold across local and global markets. The value of traders’ investments increases or decreases based on currency movements.Foreign exchange market conditions can change at any time in response to real-time events.The main attractions of short-term currency trading to private investors are:24-hour trading, 5 days a week with nonstop access (24/7) to global Forex dealers.
An enormous liquid market, making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising as well as falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
A brief history of the Forex market
The following is an overview into the historical evolution of the foreign exchange market and the roots of the international currency trading, from the days of the gold exchange, through the Bretton-Woods Agreement, to its current manifestation.
The Gold exchange period and the Bretton-Woods Agreement
The Bretton-Woods Agreement, established in 1944, fixed national currencies against the US dollar, and set the dollar at a rate of USD 35 per ounce of gold. In 1967, a Chicago bank refused to make a loan in pound sterling to a college professor by the name of Milton Friedman, because he had intended to use the funds to short the British currency. The bank’s refusal to grant the loan was due to the Bretton-Woods Agreement.
Bretton-Woods was aimed at establishing international monetary stability by preventing money from taking flight across countries, thus curbing speculation in foreign currencies. Between 1876 and World War I, the gold exchange standard had ruled over the international economic system. Under the goldstandard, currencies experienced an era of stability because they were supported by the price of gold.
However, the gold standard had a weakness in that it tended to create boom bust economies. As an economy strengthened, it would import a great deal,running down the gold reserves required to support its currency. As a result, the money supply would diminish, interest rates would escalate and economicactivity would slow to the point of recession. Ultimately, prices of commodities would hit rock bottom, thus appearing attractive to othernations, who would then sprint into a buying frenzy. In turn, this would inject the economy with gold until it increased its money supply, thus driving downinterest rates and restoring wealth. Such boom-bust patterns were common throughout the era of the gold standard, until World War I temporarilydiscontinued trade flows and the free movement of gold.
California Mortgage Brokers And Lenders - Using Online Services
Those purchasing a home for the first time may be unfamiliar with tips and techniques for selection a good mortgagelender or broker. If buying a home, choosing the right broker makes a big difference. You have the option of completing a loan application with individual lenders, or opting to use the assistance of a mortgage broker.The Role of Mortgage Brokers in CaliforniaUsing a mortgage broker to find a fitting loan program is very beneficial. Each homebuyer has a different situation. Fortunately, there are many loans availableto help homebuyers achieve their dream. For example, if you have poor credit, it is possible to find a loan that is catered to those with low credit scores. Secondly, programs that offer closing costs assistance are available for those with little money.The responsibility of a mortgage broker is to match you with a potential lender. There are many mortgage lenders to choose between. Thus, selecting the right lender may be challenging. Besides, contacting each lender and inquiring of their loan programs is time consuming. If using a broker, you avoid the legwork.Mortgage brokers will gather all your personal information, and submit it to lenders for review. Within a few hours, you can expect mortgage quotes from lenders eager to have your business.
Newly purification gold
Are newly separated purification gold dust, silt and other impurities by the strong currents of water to remove sand and alluvial minutes, and minutes remaining gold in place because of the high density of gold has been used to dissolve gold mercury without sand and silt. Then finds gold from mercury Ptkotair latter. It also draws upon a gold mining copper and silver.There are chemical methods to extract gold, which emphasizes the way cyanide, or dissolve its alloys silver in sulphuric acid status, and are purifying gold nitric acid first, and then the electric analysis. Uses gold We have known gold emerged value since immemorial ages metal easily formed more than any other metal. In addition to the easy availability of gold in its image clean. The beauty of its gold, and corrosion resistance of metals has made him distinguished in the arts and crafts of different since ancient times. Given the relative scarcity, gold was used as currency, the basis for international financial transactions. The unit used in weight gold Alounsh the equivalent of 31.1 kilograms. One of the most important uses of gold now that uses a reserve currency. For several centuries ago, the gold and silver used Kaamlten used directly.During the nineteenth century, playing a new role as gold is the only basis for the currencies of most countries in the world where securities can be converted into gold. Since the seventies of the twentieth century, the gold is sold and bought in the market at prices UNSTEADY to a large extent, the relationship between gold reserves and the value of currencies indirect relationship to a considerable extent. It has become an increasing demand for gold in the very processes of industrialization. Because gold a good conductor of electricity and of high resistance to corrosion and erosion, it is of great importance in the manufacture of electrical circuits minute. If Azept small quantities of gold and placed in glass or plastic sheeting, they prevent the passage of infrared and serve as a protective heat effectively. Because gold is consistency chemical, it is used in machinery operating in the atmosphere leads to rust, as the metal surfaces prone to corrosion or erosion due to liquid or fumes. Gold is also used also in the form of paint chips in gold and gold writing. One derivatives used in gold glass color red. It uses potassium cyanide added to the gold in the gold paint, which are electrically. As well as gold used in medicine for proven compatibility with the body organs of living. It is used in the dental, and pharmaceutical packaging. As used isotopes of gold in biological research in the treatment of cancer. It uses the largest amount of gold produced in currency and jewelry. To meet these ends, the other metals, gold is mixing up the firmness required. And reflects the gold found in this jumble karats.
Forex Trading On Economic News
The creation and expiation of the Internet has resulted in a change in the way news is presented. Not only are individuals with computers and Internet able to get news faster, they are also exposed to a greater amount of world news than ever before. For those that are involved in foreign exchange trading this availability of news has helped many make millions.
Unfortunately, some new traders, encouraged by the success of others who have utilized the news, have attempted to make large trades based on economic news and have lost millions. Forex trading on economic news is encouraged and can be profitable but it takes experience and market understanding to make the best financial trading decisions.
Forex trading on economic news is trading that is done based on news reports that may affect a countries economy and currency. Economic hardship in a country might cause its currency value to drop while advancement might cause its value to skyrocket. Many Forex tradersthat are being influenced by news and using news reports to make decisions must be able to tell what news will actually make an impact on the market and which news items will have no effect.
Just because an economic expert might give an interview predicting doom that expert might not always be correct. Some investors involved in forex trading have learned to their sorrow that the opinions of an expert are not fact. They are merely the opinion of one person and it takes more than the opinion of one individual to change the entire market.
Unless the person giving you advice is your long time Forex broker that has rarely steered you wrong be careful when it comes to letting one's personal opinion influence all of your financial decisions. Remember, if that expert is wrong the only person who will suffer is you and that expert will more than likely be giving another interview the next day quickly revising their initial analysis.
When making forex trades based on economic news always base your speculations on how the majority of other investors are going to react to the news. It is the investors that will ultimately determine the fluctuations in the market. Be aware of the current news and try to determine how those involved in the market will take the news but unless you are an extremely experienced foreign exchange speculator do not attempt to invest on an assumption or a guess. Instead invest based on facts and actually prices.
A good way to conduct forex news trading is to simply be aware of the news and be prepared to react to what happens in the market. Try to plan for a worst case scenario and a best case scenario and prepared to go either way. Avoid taking economic predictions as fact and acting to early. Impulsiveness will often lead to financial losses if not ruin.
If you are new to the world of Forex trading take as many courses and read as much on speculation and how economic news affects Forex trading before attempting to use the news to determine your trades.
Unfortunately, some new traders, encouraged by the success of others who have utilized the news, have attempted to make large trades based on economic news and have lost millions. Forex trading on economic news is encouraged and can be profitable but it takes experience and market understanding to make the best financial trading decisions.
Forex trading on economic news is trading that is done based on news reports that may affect a countries economy and currency. Economic hardship in a country might cause its currency value to drop while advancement might cause its value to skyrocket. Many Forex tradersthat are being influenced by news and using news reports to make decisions must be able to tell what news will actually make an impact on the market and which news items will have no effect.
Just because an economic expert might give an interview predicting doom that expert might not always be correct. Some investors involved in forex trading have learned to their sorrow that the opinions of an expert are not fact. They are merely the opinion of one person and it takes more than the opinion of one individual to change the entire market.
Unless the person giving you advice is your long time Forex broker that has rarely steered you wrong be careful when it comes to letting one's personal opinion influence all of your financial decisions. Remember, if that expert is wrong the only person who will suffer is you and that expert will more than likely be giving another interview the next day quickly revising their initial analysis.
When making forex trades based on economic news always base your speculations on how the majority of other investors are going to react to the news. It is the investors that will ultimately determine the fluctuations in the market. Be aware of the current news and try to determine how those involved in the market will take the news but unless you are an extremely experienced foreign exchange speculator do not attempt to invest on an assumption or a guess. Instead invest based on facts and actually prices.
A good way to conduct forex news trading is to simply be aware of the news and be prepared to react to what happens in the market. Try to plan for a worst case scenario and a best case scenario and prepared to go either way. Avoid taking economic predictions as fact and acting to early. Impulsiveness will often lead to financial losses if not ruin.
If you are new to the world of Forex trading take as many courses and read as much on speculation and how economic news affects Forex trading before attempting to use the news to determine your trades.
Forex Megadroid Reviews-Forex Traning Accreditateon
Forex trading robot is increasingly becoming a popular aid of new forex traders. Thanks to net, forex trading is no longer restricted to enormous financial institutions. Retail financiers are entering the forex market in a big fashion with the plan of making money. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Forex trading is fast rising as a moneymaking option for many folks to make a living. The flexible trading hours of the Forex market has gave the chance for many to pursue trading on a part time basis also. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Thus once the trade signal is identified it is equally vital to act fast. Standard new entrants to the Forex market don't possess the requisite capacity to do all this.
A trading system developed for Metratrader is referred to as an Expert Advisor. When you make sure that Metratrader is kept on during the day the expert counsel will look after your trading. For such folks Forex trading robot is ideally appropriate. When you use robots there's no need to sit in front of computer all day. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. The bots function on the idea of automated Forex trading software. The major benefit of this kind of a trading system is that one can perform the trades at any point of time during the day or perhaps during the night. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. The automated trading system thus has this special edge over the trader. One can also trade on various systems, like in systems that depend on various kinds of indicators, or which can trade long or short time frames so that one can diversify their risk concerned together with smoothing out the equity curve and mitigating the drawdown involved.
Do a complete research of all the androids available and check out their features. It is preferable to go in for a forex trading robot, whose developers are prepared to display live trading transactions. Normally they permit new users to check out the system by accessing their website. To boldly display live accounts requires lots of confidence in the product's capability of providing consistent performance. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Failure if any in the live trading environment will to be viewed critically by potential purchasers. Therefore these products routinely deliver what they promise. Forex trading androids are advantageous in several ways.First of all since it is fully automated, it relieves the trader of hard work and stress. Second, it monitors the Forex market all of 24 hours so making certain that no profit making opportunity is lost. It is programmed to look for certain criteria. If the standards are met, the deal will be automatically executed. The robot can be rewarding if the forex system is completely programmable. Even if it physical trading or trading through the automated software, both need regular monitoring of the performance to cross check the performance during the current trading times as well as during the past.
Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Do you know that Forex market trading is no longer the domain of giant institutions alone. Forex trading androids need trading strategies that are absolutely mechanical.
A trading system developed for Metratrader is referred to as an Expert Advisor. When you make sure that Metratrader is kept on during the day the expert counsel will look after your trading. For such folks Forex trading robot is ideally appropriate. When you use robots there's no need to sit in front of computer all day. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. The bots function on the idea of automated Forex trading software. The major benefit of this kind of a trading system is that one can perform the trades at any point of time during the day or perhaps during the night. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. The automated trading system thus has this special edge over the trader. One can also trade on various systems, like in systems that depend on various kinds of indicators, or which can trade long or short time frames so that one can diversify their risk concerned together with smoothing out the equity curve and mitigating the drawdown involved.
Do a complete research of all the androids available and check out their features. It is preferable to go in for a forex trading robot, whose developers are prepared to display live trading transactions. Normally they permit new users to check out the system by accessing their website. To boldly display live accounts requires lots of confidence in the product's capability of providing consistent performance. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Failure if any in the live trading environment will to be viewed critically by potential purchasers. Therefore these products routinely deliver what they promise. Forex trading androids are advantageous in several ways.First of all since it is fully automated, it relieves the trader of hard work and stress. Second, it monitors the Forex market all of 24 hours so making certain that no profit making opportunity is lost. It is programmed to look for certain criteria. If the standards are met, the deal will be automatically executed. The robot can be rewarding if the forex system is completely programmable. Even if it physical trading or trading through the automated software, both need regular monitoring of the performance to cross check the performance during the current trading times as well as during the past.
Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Do you know that Forex market trading is no longer the domain of giant institutions alone. Forex trading androids need trading strategies that are absolutely mechanical.
Three Ways To Autotrade Forex
The world of forex is huge, and very exciting, but can also be quite intimidating for those first venturing in for the first time. This is where it is really useful to sign up for an autotrade opportunity.There are many services on the web that offer this type of service, some better than others. There are really three main approaches to autotrading forex:Forex Robots - this is a system whereby software automatically makes all trading decisions based on a certain formula such as scalping, swing trading or trend trading.
You can have the software based on your own computer, which means that it has to be on, connected and running 24 hours per day. Or you can base the robot on a Virtual Platform, which you log into whenever you want. The robot runs fully automatically for 24 hours without interruption. This system has the least amount of human input - you simply set the software up, link it to your account, and let it run.
The most talked-about example of this type robot currently is FAP Turbo, which claims to be able to double a trading account in a month. Data on their website seems to indicate that this is true, and there are plenty of forum postings from users that are doing well from the system.Community based autotrading - a system whereby real human traders make the trading decisions.
You can log into the system, and do your research to find the most successful trader. You can then choose to have that trader's signals applied to your broker account. The system is totally anonymous - the trader does not know that you have selected him. If his system goes bad, you simply drop him and pick someone else. or you can spread your risk by having your account traded by several traders that you have picked for yourself. This system has a moderate amount of user input - a user has full control over the selection of signal providers, and can change them at any time.
Once a trading system has been selected and applied, the account is traded automatically. A good example of this type of system is that provided by Zulutrade. Started by two brothers from Greece, it has hundreds of traders and users, and can be applied to accounts with five different brokers.User controlled forex robot - in this system, the robot picks the trades, and the user selects the trades in which he wishes to participate. This system requires the most user input and attention, because the user must be connected and online in order to make timely decisions on picks generated by the robot. A good example of this is Fx Automoney, which has three services - intraday, daily and weekly.
The system can be fully automated, if the user selects that option.Autotrading forex is a useful alternative for those who lack the knowledge or experience in forex trading, or for those who do not have the time to devote to sufficient technical analysis or to monitor the news and world events. Selecting the right approach and the best system needs research into results and performance, as well as an understanding the systems and strategies involved
You can have the software based on your own computer, which means that it has to be on, connected and running 24 hours per day. Or you can base the robot on a Virtual Platform, which you log into whenever you want. The robot runs fully automatically for 24 hours without interruption. This system has the least amount of human input - you simply set the software up, link it to your account, and let it run.
The most talked-about example of this type robot currently is FAP Turbo, which claims to be able to double a trading account in a month. Data on their website seems to indicate that this is true, and there are plenty of forum postings from users that are doing well from the system.Community based autotrading - a system whereby real human traders make the trading decisions.
You can log into the system, and do your research to find the most successful trader. You can then choose to have that trader's signals applied to your broker account. The system is totally anonymous - the trader does not know that you have selected him. If his system goes bad, you simply drop him and pick someone else. or you can spread your risk by having your account traded by several traders that you have picked for yourself. This system has a moderate amount of user input - a user has full control over the selection of signal providers, and can change them at any time.
Once a trading system has been selected and applied, the account is traded automatically. A good example of this type of system is that provided by Zulutrade. Started by two brothers from Greece, it has hundreds of traders and users, and can be applied to accounts with five different brokers.User controlled forex robot - in this system, the robot picks the trades, and the user selects the trades in which he wishes to participate. This system requires the most user input and attention, because the user must be connected and online in order to make timely decisions on picks generated by the robot. A good example of this is Fx Automoney, which has three services - intraday, daily and weekly.
The system can be fully automated, if the user selects that option.Autotrading forex is a useful alternative for those who lack the knowledge or experience in forex trading, or for those who do not have the time to devote to sufficient technical analysis or to monitor the news and world events. Selecting the right approach and the best system needs research into results and performance, as well as an understanding the systems and strategies involved
Trading Forex - Chilean Piso
Since the beginning of the financial crisis, many less known currencies have been making headlines. Icelandic Krona became a poster child of the global turmoil, with many analysts claiming it was the proverbial straw that broke the camel's back and pushed financial markets over the edge. Iceland once prominent banking industry was destroyed, together with depositors from many countries.Most currencies, primarily in emerging economies, but not only, lost as much as 50% of value in relation to the US Dollar.
As money was seeking safety, Polish Zloty, Swedish Krona, Brazilian Real and scores of other currencies fell precipitously. Even Australian Dollar and New Zealand Dollar were punished. In the most extreme cases, like Zimbabwe, local currency virtually seized to exist.Largely overlooked by most analysts and the press was Chilean Peso (CLP). Peso was no exception last summer, following global trends. At the apex of the crisis it lost just above 50% of its value to USD, as measured from the yearly high.
This brought an end to a long bull market, which CLP had enjoyed since late 2002.Fortunes have changed for the Peso since beginning of 2008. While volatility, expressed by daily and weekly price ranges, remains in high historical ranges, CLP has appreciated 20% as compared to a dollar. This is a little more than currencies from other countries deemed as developing, with prospects for the most immediate future also bright.Peso is not pegged to USD, but its central bank has been following moves of FED, resulting in close resemblance of financial markets performance between the two countries.
For starters, in order to stimulate credit markets, benchmark rates have been cut by 7.75% this year. In this respect Chile is a leader among Latin American countries, with the region lowest rates at 0.50% and an all time record level for the country.While this low rates is a positive sign for the economy, as reflected by recent stock market performance, it could put some pressure on the Peso. Bank dealers have been reporting increase in the demand for dollars as some banks and investors move money to Brazil to benefit from the interest rates differential.
The carry trade between CLP and BRL. However, it is not expected to be a major trend because more money is flowing into Chilean equities from abroad.Main stock indices gained about 25% this year, with the Chile 65 electronic trading benchmark jumping 30%. Being an important producer of raw materials like copper, steel and lithium, Chile stands to benefit even more with any sign of world recovery. This should support CLP, as foreign investors continue to seek above average returns on country stock exchanges.
Furthermore, central bank is expected to start raising rates again soon, making any carry trade less appealing.Chilean Peso is not a mainstream currency. Most Forex brokers don't offer it and it has to be traded through banks. Also, the spreads are elevated, by currency trading standard, making it rather unsuitable for active trading. That said, anybody who likes exotics or seeks exposure to Latin America, should give CLP second look. Longer term it is appealing currency, especially if compared to others in the region.
As money was seeking safety, Polish Zloty, Swedish Krona, Brazilian Real and scores of other currencies fell precipitously. Even Australian Dollar and New Zealand Dollar were punished. In the most extreme cases, like Zimbabwe, local currency virtually seized to exist.Largely overlooked by most analysts and the press was Chilean Peso (CLP). Peso was no exception last summer, following global trends. At the apex of the crisis it lost just above 50% of its value to USD, as measured from the yearly high.
This brought an end to a long bull market, which CLP had enjoyed since late 2002.Fortunes have changed for the Peso since beginning of 2008. While volatility, expressed by daily and weekly price ranges, remains in high historical ranges, CLP has appreciated 20% as compared to a dollar. This is a little more than currencies from other countries deemed as developing, with prospects for the most immediate future also bright.Peso is not pegged to USD, but its central bank has been following moves of FED, resulting in close resemblance of financial markets performance between the two countries.
For starters, in order to stimulate credit markets, benchmark rates have been cut by 7.75% this year. In this respect Chile is a leader among Latin American countries, with the region lowest rates at 0.50% and an all time record level for the country.While this low rates is a positive sign for the economy, as reflected by recent stock market performance, it could put some pressure on the Peso. Bank dealers have been reporting increase in the demand for dollars as some banks and investors move money to Brazil to benefit from the interest rates differential.
The carry trade between CLP and BRL. However, it is not expected to be a major trend because more money is flowing into Chilean equities from abroad.Main stock indices gained about 25% this year, with the Chile 65 electronic trading benchmark jumping 30%. Being an important producer of raw materials like copper, steel and lithium, Chile stands to benefit even more with any sign of world recovery. This should support CLP, as foreign investors continue to seek above average returns on country stock exchanges.
Furthermore, central bank is expected to start raising rates again soon, making any carry trade less appealing.Chilean Peso is not a mainstream currency. Most Forex brokers don't offer it and it has to be traded through banks. Also, the spreads are elevated, by currency trading standard, making it rather unsuitable for active trading. That said, anybody who likes exotics or seeks exposure to Latin America, should give CLP second look. Longer term it is appealing currency, especially if compared to others in the region.
Tuesday, November 3, 2009
Dollar east exchange company
H & H - Pakistan's first Exchange Company. Granted license by the State Bank of Pakistan to carry out foreign exchange business. We also deal Dollar East Exchange Company (Pvt.) Limited is a leading exchange company in Pakistan. The company is one of the pioneers to start currency exchange business in the country. It was amongst the first companies to receive the license of money changer from State Bank when this business was regularized in 1992. When State Bank established exchange companies in Pakistan in 2002, Dollar East was the second exchange company to be awarded permission. It received exchange company License on 2nd May 2003 and commenced its operation on 7th July 2003. Under the exchange company license, Dollar East is authorized to deal in the business of currency exchange, travellers' cheques, notes, postal notes, money order, bank drafts and inward/outward remittances in a regulated environment. The company is authorised to set up its own branches or grant franchise arrangements for full range of services. The Company is also allowed to establish its own or franchised payment booths for inward remittances all over Pakistan. The company currently operates a network of 18 branches which are strategically located in all high potential areas. The company has aggressive plans to expand its branch network to other areas of Pakistan. The company also operates 3 payment booths in Rawalpindi, Mandi Bahauddin and Sahiwal and is also in the process of setting up franchised network of currency exchange booths and payment booths network in both rural and urban areas of Pakistan. in cash currencies, foreign remittanc
Core functions of state bank of pakistan
State Bank of Pakistan is the Central Bank of the country. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until 1st January 1974 when the Bank was nationalised, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956, with subsequent amendments, forms the basis of its operations today.
Under the State Bank of Pakistan Order 1948, the Bank was charged with the duty to "regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage". The scope of the Bank’s operations was considerably widened in the State Bank of Pakistan Act 1956, which required the Bank to "regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilisation of the country’s productive resources". Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February 1994. On 21st January, 1997, this autonomy was further strengthened by issuing three Amendment Ordinances (which were approved by the Parliament in May, 1997) namely, State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalisation Act, 1974. The changes in the State Bank Act gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments in Banks Nationalisation Act abolished the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and institutionalised the process of appointment of the Chief Executives and Boards of the nationalised commercial banks (NCBs) and development finance institutions (DFIs), with the Sate Bank having a role in their appointment and removal. The amendments also increased the autonomy and accountability of the Chief Executives and the Boards of Directors of banks and DFIs.
Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals. The traditional functions, which are generally performed by central banks almost all over the world, may be classified into two groups: (a) the primary functions including issue of notes, regulation and supervision of the financial system, bankers’ bank, lender of the last resort, banker to Government, and conduct of monetary policy, and (b) the secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters and maintaining close relationships with international financial institutions. The non-traditional or promotional functions, performed by the State Bank include development of financial framework, institutionalisation of savings and investment, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank also has been playing an active part in the process of islamization of the banking system. The main functions and responsibilities of the State Bank can be broadly categorised as under.
Under the State Bank of Pakistan Order 1948, the Bank was charged with the duty to "regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage". The scope of the Bank’s operations was considerably widened in the State Bank of Pakistan Act 1956, which required the Bank to "regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilisation of the country’s productive resources". Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February 1994. On 21st January, 1997, this autonomy was further strengthened by issuing three Amendment Ordinances (which were approved by the Parliament in May, 1997) namely, State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalisation Act, 1974. The changes in the State Bank Act gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments in Banks Nationalisation Act abolished the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and institutionalised the process of appointment of the Chief Executives and Boards of the nationalised commercial banks (NCBs) and development finance institutions (DFIs), with the Sate Bank having a role in their appointment and removal. The amendments also increased the autonomy and accountability of the Chief Executives and the Boards of Directors of banks and DFIs.
Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals. The traditional functions, which are generally performed by central banks almost all over the world, may be classified into two groups: (a) the primary functions including issue of notes, regulation and supervision of the financial system, bankers’ bank, lender of the last resort, banker to Government, and conduct of monetary policy, and (b) the secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters and maintaining close relationships with international financial institutions. The non-traditional or promotional functions, performed by the State Bank include development of financial framework, institutionalisation of savings and investment, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank also has been playing an active part in the process of islamization of the banking system. The main functions and responsibilities of the State Bank can be broadly categorised as under.
Devolopment role of state bank
The responsibility of a Central Bank in a developing country goes well beyond the regulatory duties of managing the monetary policy in order to achieve the macro-economic goals. This role covers not only the development of important components of monetary and capital markets but also to assist the process of economic growth and promote the fuller utilisation of a country’s resources.
Ever since its establishment, the State Bank of Pakistan, besides discharging its traditional functions of regulating money and credit, has played an active developmental role to promote the realisation of macro-economic goals. The explicit recognition of the promotional role of the Central Bank evidently stems from a desire to re-orientate all policies towards the goal of rapid economic growth. Accordingly, the orthodox central banking functions have been combined by the State Bank with a well-recognised developmental role.
The scope of Bank’s operations has been widened considerably by including the economic growth objective in its statute under the State Bank of Pakistan Act 1956. The Bank’s participation in the development process has been in the form of rehabilitation of banking system in Pakistan, development of new financial institutions and debt instruments in order to promote financial intermediation, establishment of Development Financial Institutions (DFIs), directing the use of credit according to selected development priorities, providing subsidised credit, and development of the capital market.
Ever since its establishment, the State Bank of Pakistan, besides discharging its traditional functions of regulating money and credit, has played an active developmental role to promote the realisation of macro-economic goals. The explicit recognition of the promotional role of the Central Bank evidently stems from a desire to re-orientate all policies towards the goal of rapid economic growth. Accordingly, the orthodox central banking functions have been combined by the State Bank with a well-recognised developmental role.
The scope of Bank’s operations has been widened considerably by including the economic growth objective in its statute under the State Bank of Pakistan Act 1956. The Bank’s participation in the development process has been in the form of rehabilitation of banking system in Pakistan, development of new financial institutions and debt instruments in order to promote financial intermediation, establishment of Development Financial Institutions (DFIs), directing the use of credit according to selected development priorities, providing subsidised credit, and development of the capital market.
Khanani & kalia international
Khanani and Kalia International (KKI) is a leading and trusted name in the business sector of Pakistan. Khanani and Kalia (KKI) being the pioneer of foreign currency business in Pakistan, nation as well as worldwide Khanani & Kalia International is a renowned name. Khanani & Kalia International is the first company which was awarded with the official license by State Bank of Pakistan to pursue as Money Changers. Now as per decision of State Bank of Pakistan, Khanani & Kalia International is among the early birds to receive the license of Exchange Business and hence, in 2003 it has been transformed as Exchange Company. It is an honor and pride for us that Khanani & Kalia International is the first ISO 9001 Certified Exchange Company in Pakistan. Its main and foremost objective is to facilitate and serve customers, with their best services throughout the country and at international levels as well. To fulfill the objectives, KKI has spread its network all over Pakistan. Khanani & Kalia International has its international correspondents over 22 countries in the world. Khanani & Kalia International facilitates people through the safest and securest means of transaction of money. We were and are playing our major role in increasing the Foreign exchange reserves, playing an effective role in combating against the money laundering along with the State Bank of Pakistan. One of the secrets of remarkable success that Khanani & Kalia International has earned in the last decade lies in excellent customer relations. The company has always strived hard to provide best quality of services and products to our customers and by the Grace of Allah we have succeeded in it, which is truly reflective by the customer base that Khanani & Kalia International holds today. Khanani & Kalia International believes IT is an innovative technique and a way to progress and prosperity and this is the reason KKI has a well established IT department. The use of IT leads to the new horizon of working, impacts the future growth and advancement of the organization, insures the maximum security of transaction and company provides the best possible services. KKI being innovative and unique in techniques of marketing, introduced the online services through its official websites; www.forexpk.com, www.kkionline.com. Forex mainly focuses at the market affairs and emphasize on the latest activities of money market and also other aspects of business, not only of Pakistan but the major markets of world as well. Forex is one of the most authentic source of currency market affairs and is among the pioneer of many online currency related services in Pakistan, like real time currency rates and currency rate archive, reviews and previews, Pakistan stock to world stock, local news to global news, online international currency trading facilities, analysis and a lot more. On the other hand, www.kkionline.com contains all the corporate information necessary for the visitors. This site has all the information about KKI and its products, thus enables the visitors to perfectly know about the company. KKI is unique not only for the IT system but also for appointing new and fresh blood as employees in the company. We believe in modernization and new horizons, this is the reason there is an access of younger generation in our organization. Young blood has a vision to touch the sky and with their ideas and collaboration KKI has been improving day by day and one day Inshallah we will touch the sky. Since KKI has been transformed to an international company, therefore, the management aims to adopt all the working procedures of the company systematically as per prevailing laws, SBP rules & regulations and present business environment. In this regard the Human Resource Department of KKI is actively performing and trying its best to get the proper systems implemented in all the departments of the organization.
Pakistani Dollar reserve rise
There is light at the end of the tunnel, and it is not an oncoming train.Pakistan's dollar reserves are climbing again and its currency stabilizing, after more than a year of monthly declines. The nation's foreign exchange reserves rose by $260 million to $10.21 billion in the week that ended on Jan. 24, according to the State Bank of Pakistan.This included $500 million Pakistan received from China to help build foreign reserves, said Syed Wasimuddin, chief spokesman for the Pakistan's central bankThis included $500 million Pakistan received from China to help build foreign reserves, said Syed Wasimuddin, chief spokesman for the Pakistan's central bank.Pakistan's foreign reserves hit a record high of $16.5 billion in October 2007 but fell to $6.6 billion in November, largely because of a soaring import bill. There has been a dramatic decline in the cost of imports such as oil during the last few months, spelling relief for Pakistan and other non-OPEC developing nations. The price of oil has dropped to about a quarter of what it was last summer.Pakistan signed a $7.6 billion loan agreement with the International Monetary Fund in November to stave off a balance of payments crisis. It received its first tranche of $3.1 billion that month. In its first assessment since November, IMF has expressed satisfaction with Pakistan's progress. “Initial developments under the program have been positive,” IMF spokesman David Hawley told a regular news briefing, according to Pakistan's Dawn newspaper. “The foreign exchange rate has appreciated somewhat and preliminary information suggests that end-December targets for net international reserves and net domestic assets at the State Bank of Pakistan were met,” he added.Pakistan's economy deteriorated sharply over the course of 2008, as inflation surged, and the current account deficits jumped on the back of rising oil and food prices, according to a World Bank report.The report titled ‘Global Economic Prospects 2009’ says political turmoil and ongoing security concerns have also taken a toll on Pakistan’s economy, while the global financial crisis added substantial downward pressures on its financial markets. The general deterioration in regional trade balances has been offset by large remittance inflows, which represent a sizable, and generally increasing share of GDP: during 2007, 14 per cent in Nepal, 8 per cent in Bangladesh and Sri Lanka, 4 per cent in Pakistan, and 3 per cent in India.Given strong underlying growth dynamics in South Asia, the negative feedback effects of the global financial crisis are expected to be temporary. A relatively rapid rebound is expected in 2010, with a projected revival of GDP growth to 7.2 per cent.“Investing in Pakistan is investing in future,” Prime Minister Gilani recently told leading businessmen in Dav, Switzerland, on the sidelines of the World Economic Forum. Gilani said Pakistan’s sound fundamentals offered the investors an opportunity to explore the country’s economic potential in diverse fields. He emphasized the need for more foreign investment coming into Pakistan and benefit from its investor-friendly economic policies. He said Pakistan’s liberal economic regime with zero import duty on raw material provided equal opportunities for the local and foreign businessmen. He said Pakistan was confronting a number of challenges including economic crisis, however the democratic government was determined to improve the situation.“Despite all the challenges, economy continues to be buoyant and vibrant in Pakistan,” the Prime Minister said, adding the country’s mineral and work-force resources had the great potential to be fully tapped.
Major markets
The US & UK account for more than 50% of turnoverMajor markets: London, New York, Tokyo
Trading activity is heaviest when major markets overlap
Nearly two-thirds of NY activity occurs in the morning hours while European markets are open 4 4. NY Federal Reserve
Average Daily Turnover by Country
What is the Difference Between Forex and Stock?
The Forex market has a lot of advantages compare to stock market:
A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.
Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.
Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.
Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.
If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.
In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.
A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.
Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.
Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.
Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.
If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.
In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.
Where do you start if you want to learn currency trading?
Well a good starting point is to look at just what Forex trading is and who the players in this market are. We should also think about just why you should be learning online Forex trading and thinking about starting you own online ForeThe Forex market (which is sometimes referred to as the FX market and for which the full title is The Foreign Exchange Market) was established as we know it today in 1971 following the demise of fixed currency exchanges. Forex currency trading is conducted around the clock, 5 days a week, and daily currency trades are worth in the region of $1.9 trillion US dollars. This means that the Forex the largest market in the world and puts the major stock markets very firmly into second place.
A world-wide market established to facilitate the buying and selling of currency, the Forex market involves large organizations, such as central governments, commercial companies and international commercial banks as well as smaller players such as brokerage houses and individual brokers.
There is no set location for the market (although there are major trading centers around the world in a number of cities such as London, Frankfurt, New York and Tokyo) but it is essentially an 'over-the-counter' market with the vast majority of trading being conducted by telephone and on the internet.x trading business
A world-wide market established to facilitate the buying and selling of currency, the Forex market involves large organizations, such as central governments, commercial companies and international commercial banks as well as smaller players such as brokerage houses and individual brokers.
There is no set location for the market (although there are major trading centers around the world in a number of cities such as London, Frankfurt, New York and Tokyo) but it is essentially an 'over-the-counter' market with the vast majority of trading being conducted by telephone and on the internet.x trading business
The Cash Foreign Exchange Market
The Forex market is a cash inter-bank or inter-dealer market established in 1971 when floating exchange rates began to materialize. The simplest definition of foreign exchange is the changing of one currency to another. In comparison to the daily trading volume averages of $300 billion in the U.S. Treasury Bond market and the less than $10 billion exchanged in the U.S. stock markets, the Forex market is huge; in September 1992 The Wall Street Journal estimated the trading volume at $1 trillion per day. Today, it is believed to have grown in excess of $1.5 trillion per day.
The most important foreign exchange activity is the spot business between the dollar and the four major currencies (British Pound, Eurodollar, Swiss Franc, and Japanese Yen). Participants in the market consist of five main groups: central banks, commercial banks, other financial institutions, corporate customers, and brokers.
The most important foreign exchange activity is the spot business between the dollar and the four major currencies (British Pound, Eurodollar, Swiss Franc, and Japanese Yen). Participants in the market consist of five main groups: central banks, commercial banks, other financial institutions, corporate customers, and brokers.
FOREX Is Tough But Potential Money-Making Opportunity
Trading foreign currencies is a tough task; however, it is potentially a money-making opportunity for those who are educated and are knowledgeable about their investments.
Nevertheless, prior to choosing to participate in trading in the Forex market, you should:
•Cautiously judge the purpose of investment
•Your familiarity with risk factors
Forex is meant for the money you put aside and are prepared to loose. It might not be a wise idea to Forex trade to pay your regular bills.
Forex (Foreign Exchange market) is an inter-bank market that got a form in 1971; this was the period when the international trade transited from fixed exchange rates to floating rates. This transition paved way for the set of transactions between forex market brokers relating to the exchange of specific sums of money in a currency unit for the currency of some other country at an approved rate for any specified date.
During any trade day, the exchange rate of one currency to another currency is decided basically by supply and demand – to which both parties will be in agreement. The price of a currency is mentioned in terms of one more currency.
he possibility of transactions in the international currency market is frequently increasing, which is due to growth of global trade and eradication of currency limits in many countries.
Online Forex is the one of the most innovative forex trading method of Foreign Exchange trading over the Internet. You can start trading with a basic account. Beware of margin trading because unless you are a careful market watcher trading with borrowed money can be risky.
The online forex trading method gives fast implementation of foreign exchange (Forex) trading through the Internet, with cutting edge software and well-organized trustworthy service guarantying an excellent trading experience
Nevertheless, prior to choosing to participate in trading in the Forex market, you should:
•Cautiously judge the purpose of investment
•Your familiarity with risk factors
Forex is meant for the money you put aside and are prepared to loose. It might not be a wise idea to Forex trade to pay your regular bills.
Forex (Foreign Exchange market) is an inter-bank market that got a form in 1971; this was the period when the international trade transited from fixed exchange rates to floating rates. This transition paved way for the set of transactions between forex market brokers relating to the exchange of specific sums of money in a currency unit for the currency of some other country at an approved rate for any specified date.
During any trade day, the exchange rate of one currency to another currency is decided basically by supply and demand – to which both parties will be in agreement. The price of a currency is mentioned in terms of one more currency.
he possibility of transactions in the international currency market is frequently increasing, which is due to growth of global trade and eradication of currency limits in many countries.
Online Forex is the one of the most innovative forex trading method of Foreign Exchange trading over the Internet. You can start trading with a basic account. Beware of margin trading because unless you are a careful market watcher trading with borrowed money can be risky.
The online forex trading method gives fast implementation of foreign exchange (Forex) trading through the Internet, with cutting edge software and well-organized trustworthy service guarantying an excellent trading experience
Friday, October 16, 2009
Forex Live News
The first quarter, the company cut down the attributable production to be approximately 798 thousands ounces, from its previous guidance of 820 thousands ounces. However, it expects the cash costs to be in line with its earlier guidance of approximately R154,000/kg or US$618/oz. Notional Cash Expenditure or NCE, which includes all operating costs as well as sustaining and project capital, is expected to be approximately 6% better than previous guidance, at R227,000 /kg or US$910/oz. The first-quarter, gold production in South Africa operation is expected to be up by 2% with approximately 492 thousand ounces. The cash cost is expected to be R154,000/kg or US$618/oz, compared to a previous guidance of R157,000/kg or US$610/oz. The NCE for the South Africa operation is down to R213,000/kg or US$857/oz, from a previous guidance of R221,000/kg or US$860/oz. For the international operations, the company expects the first-quarter gold production to be approximately 306 thousand equivalent ounces. The cash costs and NCE for the international operations are expected to be approximately US$616/oz and US$983/oz respectively, compared with the previous guidance of US$570/oz and US$1,060/oz. CEO, Nick Holland said that despite the rehabilitation work in South Africa and international growth projects scheduled for completion, the company is in line to achieve the short term target of a run rate of approximately 1 million attributable equivalent ounces of gold, during the third quarter next year, at an NCE of approximately US$725/oz at R/US$8.00. Thursday, the stock closed at $8.31 on the New York Stock Exchange. Reported Date : may 18 2009.
The world's most traded market, trading 24 hours a day
With average daily turnover of US$3.2 trillion, forex is the most traded market in the world.A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night
ForexCharts by eSignal
forexCharts by eSignal is a complete charting package developed by a leading provider of real-time market information and award-winning products and services. The ForexCharts by eSignal package provides indicators and drawing tools for trend analysis and to identify potential entry and exit points, and includes the following features: * Real time data feed powered by FOREX.com for the majors and several crosses * Composite data feed from Global Treasury Information Services, Inc. (GTIS), that provides a broad representation of the market as a whole * Line, bar and candlestick charts * More than 30 analytical studies * Page-saving system to organize charts and layouts, and more ForexCharts by eSignal is available at no cost to FOREXPlus, FOREXPremier and FOREXPro clients. Click here for more information on FOREX.com Premium Services. Analytical Studies Accumulation and Distribution Moving Average ADX / DMI On Balance Volume Average True Range Open Interest Bollinger Bands Oscillator CCI Parabolic Choppiness Percent Price Donchian Channels ROC Envelopes RSI Keltner Channel Stochastic RSI MACD Stochastics Momentum Volume Money Flow Index Williams %R Drawing Tools Trend Lines Fibonacci Circle Regression Trend Channels Fibonacci Time Fibonacci Retracements Andrew's Pitchfork Fibonacci Extensions Andrew's PitchFan Resources Preview ForexCharts by eSignal Symbol Guide View other available charting packages.Trading Psychology
I wish I knew then what I know now." How many times has that thought rolled through your head? Our friend James has probably thought that about his trading career hundreds, if not thousands, of times. You see James started on the wrong foot as a Futures trader. He thought the most important thing to understand was the market. He focused all of his energy trying to learn about the market and didn't spend any time focusing on himself as a trader - and he paid the price.Futures traders have to not only compete in the Futures market but also against themselves. You have the potential to be a successful Futures trader, but you also have the potential to be your own worst enemy. We, as humans, are naturally emotional. Our egos want to be validated - we want to prove to ourselves that we know what we are doing and that we are capable of taking care of ourselves. We also have a natural instinct to survive.All of these emotions and instincts can combine to provide us with trading successes every now and then. Much of the time, however, our unchecked emotions get the best of us and lead us to trading losses unless we learn to control them.Many Futures traders believe it would be ideal if they could completely divorce themselves from their emotions. Unfortunately that is next-to-impossible and some of our emotions may actually help us to improve our trading success. The best thing that you can do for yourself is learn to understand yourself as a trader. Identify your strengths and your weakness, and pick a trading style that is right for you. Don't get too far down the road, like James did, before you spend time learning about you.In this section you will learn about the following four psychological biases that may be affecting your trading results and what you can do to overcome them:* Overconfidence bias* Anchoring bias* Confirmation bias* Loss aversion bias.Don't Deal With Anyone Who Won't Give You Their Background
Plan to do a lot of checking of any information you receive to be sure that the company is and does exactly what it says.Get the background of the persons running or promoting the company, if possible. Do not rely solely on oral statements or promises from the firm's employees. Ask for all information in written form.If you cannot satisfy yourself that the persons with whom you are dealing are completely legitimate and above-board, the wisest course of action is to avoid trading foreign currencies through those companies.
The Stop Loss
Trading shares should, over time, lead to better outcomes than betting on the outcome of tossing a coin. There are three main reasons for this.
1. You should have tested your trading system to ensure that, on average, it provides a better than 50/50 chance of success.
2. Each time you toss a coin, the best possible outcome is that you double your money. In a single trade it is possible to multiply your funds by 3,4,5,6......20,30....some very large number (if the trade goes expectionally well).
3. Each time you lose on the toss a coin, you lose all of your stake money. Provided you set a stop-loss it is highly unlikely you will lose all of your money in a share trade. Your stop-loss will be triggered and you will exit the trade having sufferred a controlled, relatively small loss. (On rare occasions, you will lose more - for example if you buy the shares of a company that, overnight, goes out of business.)
To avoid large losses when a trade goes against us, we set a strict stop loss on each trade. Some traders prefer to set stop losses at a fixed percentage. If the price of a share they have bought falls by, for example 5 percent, they sell. This is called a trailing stop loss. It trails the share price. If the share price goes up, the stop loss rises in tandem, always moving to 5 percent below the highest price reached (or the price you paid - whichever of these is higher). Other traders prefer to set their stops in accord with share price history. If, for example, a shareprice has found support at a particular level, they will set the stop loss slightly below this support level.
1. You should have tested your trading system to ensure that, on average, it provides a better than 50/50 chance of success.
2. Each time you toss a coin, the best possible outcome is that you double your money. In a single trade it is possible to multiply your funds by 3,4,5,6......20,30....some very large number (if the trade goes expectionally well).
3. Each time you lose on the toss a coin, you lose all of your stake money. Provided you set a stop-loss it is highly unlikely you will lose all of your money in a share trade. Your stop-loss will be triggered and you will exit the trade having sufferred a controlled, relatively small loss. (On rare occasions, you will lose more - for example if you buy the shares of a company that, overnight, goes out of business.)
To avoid large losses when a trade goes against us, we set a strict stop loss on each trade. Some traders prefer to set stop losses at a fixed percentage. If the price of a share they have bought falls by, for example 5 percent, they sell. This is called a trailing stop loss. It trails the share price. If the share price goes up, the stop loss rises in tandem, always moving to 5 percent below the highest price reached (or the price you paid - whichever of these is higher). Other traders prefer to set their stops in accord with share price history. If, for example, a shareprice has found support at a particular level, they will set the stop loss slightly below this support level.
Stop searching for the holy grail forex system, it does not exist./font>
One of the most frustrating modes to be in is searching for years for a trading method that grows your trading account balance. You’ll find some people trying con you all over the internet. We are here to tell you its all rubbish. If you're going to change things, then the time to get moving is now. Learn skills, learn methods, learn entry setups with a proven edge in the market. We have discovered a proven way to siphon pips out of the forex market, but you still have to use my head, its not perfect, and it's automatic.. nothing is.
A forex trading method with a good winning percentage will be rewarding psychologically, keeps your morale high and is enjoyable to trade. A string of profits will build your confidence. See our trade of the week page which is updated at the end of each trading week. If you are looking for a forex system with no losing trades, forget trading and find another business or hobby. My priority is to keep losses small and wins should be larger than losses.
Your forex profits will increase.because you will have an edge.because the strategies reduce fear and indecision.because you will be able to spot entry setups and end of moves before the crowd does. Avoid chasing the market so you don’t enter a trade too late and get “burnt”.because you will be able to “read’ the market better.because the strategies can be implemented without buying any costly software or subscribing to expensive data services.because you will exit successful trades before your profit evaporates.because you will know when to let your profits run.because you will learn how to use higher time frames to gauge how price will react on lower time frame charts
A forex trading method with a good winning percentage will be rewarding psychologically, keeps your morale high and is enjoyable to trade. A string of profits will build your confidence. See our trade of the week page which is updated at the end of each trading week. If you are looking for a forex system with no losing trades, forget trading and find another business or hobby. My priority is to keep losses small and wins should be larger than losses.
Your forex profits will increase.because you will have an edge.because the strategies reduce fear and indecision.because you will be able to spot entry setups and end of moves before the crowd does. Avoid chasing the market so you don’t enter a trade too late and get “burnt”.because you will be able to “read’ the market better.because the strategies can be implemented without buying any costly software or subscribing to expensive data services.because you will exit successful trades before your profit evaporates.because you will know when to let your profits run.because you will learn how to use higher time frames to gauge how price will react on lower time frame charts
The euro and the United States Dollar
Since the mid-20th century, the de facto world currency has been the United States dollar. According to Robert Gilpin in Global Political Economy: Understanding the International Economic Order (2001): "Somewhere between 40 and 60 percent of international financial transactions are denominated in dollars. For decades the dollar has also been the world's principal reserve currency; in 1996, the dollar accounted for approximately two-thirds of the world's foreign exchange reserves" (255). Many of the world's currencies are pegged against the dollar. Some countries, such as Ecuador, El Salvador, and Panama, have gone even further and eliminated their own currency (see dollarization) in favor of the United States dollar. The dollar continues to dominate global currency reserves, with 63.9% held in dollars, as compared to 26.5% held in euros (see Reserve Currency). Since 1999, the dollar's dominance has begun to be eroded by the euro, which represents a larger size economy, and has the prospect of more countries adopting the euro as their national currency. The euro inherited the status of a major reserve currency from the German Mark (DM), and since then its contribution to official reserves has risen as banks seek to diversify their reserves and trade in the eurozone continues to expand.[1] As with the dollar, quite a few of the world's currencies are pegged against the euro. They are usually Eastern European currencies like the Estonian kroon and the Bulgarian lev, plus several west African currencies like the Cape Verdean escudo and the CFA franc. Other European countries, while not being EU members, have adopted the euro due to currency unions with member states, or by unilaterally superseding their own currencies: Andorra, Monaco, Montenegro, San Marino, and Vatican City. As of December 2006[update], the euro surpassed the dollar in the combined value of cash in circulation. The value of euro notes in circulation has risen to more than €610 billion, equivalent to US$800 billion at the exchange rates at the time (today equivalent to circa US$968 billion).
online forex gold investment
Successful Investments After The 2008 CrashFrom an investor point of view, we are definitely living very exciting moments and the next few years will produce huge investment and speculative opportunities if you are ready with the right mindset. Let me explain how I see events developing. Even thought I am not bullish yet, I believe we have seen a bottom in the Dow (7.882 October the 10th 2008) and, even if this level is tested again, I do not think it will go much further down.Regardless if you are bullish or bearish, one thing is sure, the markets will maintain a high level of volatility during the next few weeks or even months. So, be ready for it and make it work for you
Forex Education
FX Instructor, LLC is a US-based forex education company specializing in world class forex education based on the MetaTrader 4 platform, in our real-time Live Trading Room.See our charts, hear our voice, and ask questions while the market movesObserve us analyzing the market, opening positions, and managing tradesLearn "best practices" for trading through our own exampleAcquire powerful new strategies and skillsLearn to approach the market with discipline and patienceTrade together with a global community of fellow tradersAccess a vast library of lessons, videos, and tutorials*FX Instructor is the recommended trading school for all traders of FXOpen.*Attending the Live Trading Room is beneficial for traders of all levels, no matter how big your account or experience - and it costs just $24.95 a month, with a 100% Satisfaction Guarantee.This is quite possibly the best investment ever made by traders who becomes a member of our Live Trading Room community. To take advantage of the Live Trading Room,
Saturday, October 10, 2009
What Is Margin Trading?
In the world of forex, margin trading (or “buying on margin”, or “trading on margin”) means trading with short-term borrowed capital. Margin is thus a form of borrowed money or debt. This borrowed capital is used to buy much more currency that you’d be able to purchase ordinarily (unless you have hundreds of thousands of dollars available). In the forex market, currencies are usually traded in lots, with a standard lot being $100,000. (The forex market is a highly leveraged market.) The term “lot” refers to the minimum amount of currency that must be bought. To achieve this amount of currency, brokers offer a margin trading option. This means that through your margin account, you can execute deals with a small amount of initial capital. You can open $100,000 or $10,000 positions with as little as $50 or $1,000. In forex, trading small amounts makes no sense since profits can only be made through large amounts of currency.Let’s take an example of margin trading: Some market indicators are telling you that the Euro will strengthen against the US Dollar. You believe it’s the right time to buy EUR/USD and you open a position of $100,000 (one lot) to buy Euros with a 1% margin at the price of 1.3520 hoping that the rate will rise. This means that you are holding $100,000 worth of Euros with an initial deposit of $1,000. The price does rise and reaches 1.3570 You decide to sell and close your position. You have won about $500 (50 pips x $10 per pip), which constitutes a 50% return on your initial capital investment of $1,000. You know have $1,500 in your account. Also, brokers use this forex margin as collateral to cover any losses incurred by the trader. Since in margin trading, nothing is actually sold or bought for delivery, the funds in your account serve as margin requirements. Those margin requirements vary depending on which brokerage firm you choose. To match its traders’ risk levels, Finotec offers low margin requirements – as low as 0.5%. However, we advise traders new in the forex industry to start trading with higher forex margin capacities to minimize the amount of risk involved in such transactions.
What Is a Margin Call
As you know, forex is a speculative activity, through which you can either win or lose money. When the market moves against your position, there is a risk that the capital in your account will fall below margin requirements. In this case, the broker will issue a margin call for you to add funds. If you fail to do so, your position(s) will be closed to prevent further losses. A margin call thus prevents you from having a negative balance in your account. Example :A trader opens a $10,000 trading account. He then opens one lot of the GBP/USD with a margin requirement of $1,000 (used margin). This means that he now has a $9,000 usable margin. The used margin refers to the capital available for potential losses or for the purchase of new positions.In the event that the market moves against your position and that your losses exceed the $9,000 of your usable margin, if you do not add funds upon receiving a margin call, your position will be closed. By closing your position, your broker limits both his and your risk. The consequence is that when trading forex online, you will never lose more than what you’ve deposited in your account.
Forex Charts
When approaching the forex to trade, there are two ways you may analyze the forex market: using fundamental analysis or technical analysis. Although some analysts would argue that one is better than the other, finding a middle-ground between both approaches is usually the common recommendation.In brief, whereas fundamental analysis deals with economic, political and social developments and their impact on the supply and demand forces, technical analysis deals with price movements. Forex charts are generally associated with technical analysis. Basically, once you enter the world of forex technical analysis, you also enter the world of online forex charts. Since technical analysis focuses on the study of price movement (current, past and future), it uses all sort of graphs and forex chart indicators. Viewing those different types of forex charts will help you identify forex trends according to which you will make your trading decisions.When looking at such a chart, you are viewing historical price actions which in some way will give you an idea of where the price is heading to. Here, you are looking at a candlestick chart.There are three common types of Forex charts:Line Chart: a very basic chart. A line chart is made up of contiguous lines connecting one previous closing price to the next. Bar Chart: Like the line chart, the bar chart shows the closing price of a given currency, but it also shows its opening price and it's high and low. Candlestick Chart: probably the most popular type of charts. On top of showing you the closing, opening, high and low prices, it gives you an indication about the strength of the buying and selling forces. To read those charts beyond the obvious, traders have at their disposal a wide range of trend indicators to help them identify good trading opportunities as well as good entry and exit points. You can apply indicators to each type of forex charts. However, interpreting those forex charts requires precise knowledge of the chart indicators you choose to use and although it may seem easy, identifying forex trends can be quite difficult. Each type of chart will give you more or less the same information but in a different form.
What is a Forex Broker?
Forex Broker definitionA Forex Broker (or forex brokerage firm) is a company, institution - or an individual – acting as an intermediary between currency buyers and currency sellers. Usually though, forex brokers serve as the “transaction counterpart.” Recent Internet technologies and online dealing have made it easier for new forex brokers to see the light of day and new firms are sprouting up all over the web. So what is it that makes a good Forex Broker? And what is it that makes Finotec a great Forex Broker?Forex Brokers can be gauged according to four main criteria:Reliability. This is achieved by becoming a main industry player both through years of experience during which the firm gains recognition among the world’s leading financial institutions and through the consolidation of its client base. Quality institutions are usually registered with financial authorities such as the FSA. Only a few firms have achieved this level of reliability and business, and Finotec is of course one of them. Low spreads and leverage. The spreads offered by a Forex Broker are the reflection of the solidity and stability of its financial foundation. The lower the spreads, the better-established it is with major banks and the more efforts it makes towards its clients. As for leverage, the higher it is, the less money you have to deposit. Resources and tools. The larger and more serious the firm, the more it invests in R&D. This translates into more resources, more tools, better software, and more qualified personnel. For the client, this means “all-in-one trading”: all tools and resources required to trade are easily accessible from that same broker. Support. Although this may not seem so important at first glance, it is crucial. If you have the slightest technical problem with the software or if you have any questions, the best is to always have someone available to assist you – someone qualified! So why is Finotec the best forex broker?Because it fully meets those criteria and offers much more. Although we are not of those heavyweight financial institutions that have been in place for hundreds of years, we have managed to enter the big league of forex brokers in less than a decade. This success wouldn’t have been possible without our dedication to excellence and our innovative approach to trading.Not only do we offer low spreads and high leverage, we also provide our clients with advanced trading tools and daily analysis. written by our very own team of experts. Our assistance team is always there to help you with any problem you may encounter. We are constantly working on product and service and improvement to make forex trading easier and faster for our clients. Also, as an FSA (Financial Services Authority) registered company, we are committed to transparency in all areas of operation.In the end, it is the customer that decides who is the best forex broker. The relationship we build with our clients is based on trust and a will to succeed. Once traders start trading with us, they feel they can rely on us and they know that we are here to help them achieve their investment objectives.When trading forex with Finotec, you are in the best of hands, the hands of the best forex broker!
Forex Trade Software
When you first come across the idea of automated Forex trading how did you react? Pessimistic is how most people react. Well if you were optimistic or pessimistic but curious I would like to congratulate you! The truth is Forex trading software will work for you, as it has worked for thousand other people. Those people are now enjoying extra income without doing anything. Many of them have actually quit their old job and living solely from automated Forex trading software. Why did they quit their job? Because they do not need them since trading Forex is more than enough to cover their expenses. You must be wondering how Forex trade software performs such task. Did you know that foreign currency actually behaves according to a certain pattern? Researches on these patterns have been conducted in many universities. They actually found out that while erratic, Forex movements can be predicted to a certain extent. The researches have reached a point where the predictions become so accurate therefore it is very profitable. So experts simply compile these formulas and knowledge into Forex trade software.So what you need to do to start getting your automatic income? Well glad you asked! Simply download the software, setup the software according to how you want it to work, and sit back. You can start seeing the results in few days time. The settings can vary between programs and some programs can be switched between semi automatic and fully automatic. Simply follow the instructions given for your software.
Start Trading Forex
With the Finotec Online Forex Trading Platform, trading forex had never been so easy! At Finotec, we provide you with many resources and tools to help you enhance your skills and trade successfully. Most importantly, Finotec offers you one of the best trading systems available today. You can trade forex in one click and view your open positions any time, in a user-friendly and secure environment. So start trading now!Example:You expect a strengthening of the euro against the dollar and you decide to buy $100,000 worth of EUR/USD. Let's assume that you were right and that the rate moves from 1.3540 to 1.3610. It has moved 70 pips. (1.3610-1.3540=0.0070.) In this case, each pip is equal to $10 (please note that the value of one pip varies depending on the transaction size and the currency pair traded).Your profit: 70 x $10= $700.EUR/USD (Sell : 1.3537 , Buy: 1.3540 , Amount: 100,000)Forex trading online has become an investment vehicle of choice for many individual investors. Like any other speculative activity, it involves a certain level of risk (which you can control by setting your own Risk Management policy) but it also allows for huge profits. So don't waste anymore time! Enter the world of forex with Finotec and start investing money for your
Forex Day Trading
What is Forex Day Trading?With Forex trading now accessible to all investors thanks to the advent of Internet technology, forex day trading has become one of the most popular types of currency trading. Some traders – professional traders – have made forex trading their day job. They engage in what is known as forex day trading. As its name suggests, forex day trading consists in opening and closing positions – buying and selling currencies – within the same day. Usually, forex day traders try to take advantage of the fast-fluctuating currency rates, even if their movements are often smaller on a shorter term.The four major currency pairs have an average daily range of 104 pips, which represents $1,040 per lot – much more than other currency trading markets. With their longer “length of line”, they also offer more “swing trades” opportunities.Forex day trading is time-consuming and can also be money-consuming if you are not properly educated and trained in currency trading. To help you understand the ins and outs of day trading forex, Finotec offers you free fundamental and technical analysis education (see our Forex Trading Videos Section) as well as all the tools you need to analyze market trends, including a free demo account. As with stocks day trading, forex day trading can be done over the entire day, but it also can be done over a few hours, a few minutes or even a few seconds! Part of the skills of day traders lies in their ability to react quickly to the markets and make fast decisions.Different Types of Forex Day TradingAs mentioned above, some traders will enter and close positions within a few minutes – or even a few seconds (this method is known as “scalping”) – while others will maintain positions for several hours or even through the entire day. While some day traders combine these strategies or switch from one to another depending on current market conditions, most prefer to stick to one type of day trading.Forex day trading strategies can also be categorized according to the type of resources and data used by the trader. Some day traders for instance trade only on fundamental analysis. They wait for the release of certain economic indicators and data (payrolls, GDP, etc…) and trade the expected market swings. Others rely solely on technical analysis. Whichever type of trader you are, you must know always watch out for economic and statistical releases if you don’t want any surprises.A Few Tips for Day Trading ForexSkill has a big part to play in forex day trading. You should have a good understanding of the markets, their trends and their direction before you engage in this type of trading. You should also know how to read the information and use all the resources made available to you. Finotec has put together a series of forex training videos to help you do just that. Stick to your strategy. While this tip is true for almost all types of trading, it is even truer for day trading since you tend to spend more time in front of your computer and pay attention to the slightest move in either direction, which often prompts you to act and change your strategy. Whatever happens, do not panic. You should be aware that forex day trading comes with a certain degree of risk and accepting that risk means also accepting to lose sometimes. Make sure you have enough time on your hands. Most day traders are professional traders who have made a career of currency day trading. Others have jobs that allow them to devote some time to it during their workday. So make sure your schedule is suited to this type of trading. To start forex day trading with Finotec, open an account by filling out the form on the right. If you have any questions, one of our representatives will be happy to help you.
Critical Checklist For Forex Trading
Before you ever even engage in your first transaction in the forex trading market you need to take some time to carefully review all of your options and choices available to you, but at the same time, there are a few things that you need to follow in order to get started. The exact method that you choose to prepare with is entirely up to you, but following these general steps is always useful.You should first go to the time and effort to locate a wise broker. With the door closing quickly on investments you need to know someone who can readily understand the goals that you are after, but also help you copy those goals and achievements down only paper so that you have a written set of goals to use. This will also be helpful to ensure that you are making goals that are actually realistic also. Of course while people might want to dream about it, there is very little that you can actually do to engage in transactions in currency trading that will return profits in the levels of 100% or higher.Keep your minimums low is another good idea when dealing with a currency transaction. The higher the amount the greater the returns obviously, but this is very difficult for most beginners. This means you really should stick to some lower amounts until you have figured out exactly what you are doing. You can always raise the amounts once you gain some knowledge and experience to ensure that details are worked out properly. Starting out slow will ensure that you have plenty of money to learn with, but if you are using a demo account before you even start investing actual money you will find it does not take long to gain the experience and skill necessary to make larger trades successfully.Look toward the internet to be your friend. By providing continuous updates, you will find that the internet is truly the best source of information pertaining to issues that affect the exchange currency market. This information can help you to make some split second decisions, but will also prove useful in just watching the market to see what impacts the news carries on a long-term basis. If you are careful, what you do and which information you look at you will generally find that you can locate information on any currency that is completely accurate within a matter of minutes.Another great idea to take some time to decide upon a currency pair or pairs that you want to work with. The currency market of course allows you to trade currency for any other currency you want, but really this is far too many choices for most people. It is important to watch the market and really learn what is going on, and this will require that you limit yourself usually to much fewer choices. The best way to do this is to create a trading pair. This is what you will use, and you will continuously trade currency between the pair. You can create several pairs, but generally, no more than two to begin with is best to allow you ample opportunity to learn how the pairs actually relate to each other and ensure you are able to clearly identify the patterns that they follow. Increasing to more pairs is always allowable once you have a firm grasp of the basics
Forex Trading Strategies
With stock prices tumbling almost daily, multi-billion dollar Ponzi "investment" schemes wreaking financial havoc in people's lives grabbing headlines, and decades-old companies scrambling for the shelter of government bailouts, it's not surprising that seasoned stock traders and investment novices alike are feeling quite shell shocked. Many have stepped aside from trading in the stock market and are looking for alternative ways to earn a comfortable living. Quite a few have found it in the Foreign Exchange Market, commonly known as Forex.The more astute amongst them are getting Forex training before risking even a penny of their capital.Forex is the biggest financial market in the world. Over three trillion US dollars per day are traded on the Foreign Exchange. It's an over-the-counter market that offers extreme liquidity to the people who trade it.You can trade Forex from anywhere in the world twenty-four hours a day, five and a half days a week.One of the reasons most folks who are considering trading this market need forex training is because they will be dealing with an entirely new investment language.For example, as a trader you will be trading currency in pairs – buying one while selling another. Essentially you will be speculating that one currency will either rise or fall in value against another currency.Although virtually any currency can be traded, Forex focuses primarily on the "majors". These are the British pound, the US dollar, the euro, the Japanese yen, the Canadian dollar, the Swiss franc, and the Australian dollar. All of these currencies are quoted in pairs.Since nobody has a crystal ball, Forex traders make their money by exploiting market probabilities. Traders need to have a thorough understanding of different tools, different markets, and different trading strategies along with how and when to use them. Otherwise they can very quickly lose substantial amounts of money.However with proper forex training, these same people can gain a trading edge that could earn them substantial profits.Knowledge to Action has recently launched ‘Ultimate Forex Secrets Seminar 2009’. When you attend you will also receive a ground-breaking 60-page report - "Millionaire Forex Trader Secrets" This report contains some of the key money making secrets of the Forex community!Critical Mistakes in Forex Trading
An average person has a very simple life, because of this they are blissfully unaware of exactly what the problems are that they can encounter. Knowing what the potential disasters are before you get started can help you to ensure you do not find yourself in the same situation. Remember, there is nothing wrong with learning from the mistakes of others and a bit of effort carefully placed into the proper research will allow you to reduce your expenses, save hassle and make money much faster.The very first mistake that is made is not entering a stop loss order. This is a useful tool that will allow you to quickly and easily set a minimum to the currency that you hold. Once it drops to a certain level it would be arranged to automatically sell. The benefit of this is you do not even have to watch the market directly to have your currency sell at the level that you desire. This is quite useful in the event that you are not interested in taking a loss on your transactions. Because of the turbulence that the market gives, it is very dangerous to not have a stop loss order in at almost all times.Allowing yourself to become wrapped up in emotion as well will cost you thousands of dollars in the forex market. Knowing that you have some problems with emotion will allow you to learn how to distance yourself while still getting all of the benefits that you need. If you start to think that you are never going to have any problems with disasters striking you will quickly discover just how hard it can be to make things work out properly. Taking some time to practice separating yourself from the situation is extremely important. Another critical mistake that is often made is trying to predict what the market is going to do. This can create some serious problems because it can often lead to overconfidence. You absolutely have to stick to just facts rather than trying to just guess or predict what the market will do. If you decide to try guessing you might luck out and make a correct guess or two, but the majority of the times you attempt at just guessing you are going to lose money. Avoid this situation if at all possible and instead focus on getting all of the information you can possibly gather together to avoid making an incorrect decision.One other mistake that is often made is treating investing as if it is a hobby. This creates a lot of problems for people when they are trying to work on straightening out details. Making money at forex is possible, but only if you treat it like an actual business. In order to be truly successful you need a business mindset and you need to be thinking clearly when you are working on all of the transactions. If you have no clue what you are doing, you will quickly discover that the entire process is useless and provides you no major benefits. In order to really enjoy the process, you absolutely must take the time to determine your goals and a course of action. Diving right in and getting started working is not a safe idea, not is it a wise investment of your money.The right mindset is one of the biggest things that is required in order to be secure while engaging in transactions in foreign exchange. Knowing what the major problems tend to be and working diligently to avoid them will help you to ensure you get on track properly and stay there. Taking control of your forex experience really is possible but you absolutely must ensure you get started successfully. Starting out properly is much easier than trying to fix your mistakes after the fact. Success is possible, but avoiding these mistakes will help further ensure all of your success.
Overview of the Forex Market
The speaker provides an overview of the forex market. He suggests that the forex market carries the most amount of liquidity in relation to any other type of securities market. Not only is there tremendous liquidity, there is also trading available 24 hours per day; however, this can be a negative if you cannot pull yourself away from the screen. He also talks through the leverage that is taken in the forex market. Typically, traders will use 200:1 leverage when placing trades. New traders should be extremely careful as their accounts can be wiped out on 1 trade if proper risk management is not employed. Another benefit of the forex market is that it only moves dramatically when macroeconomic events take place, as opposed to a stock which can have a huge drop overnight due to earnings releases or other negative newsChoosing The Right Expert Advisors
Expert Advisors or EAs refer to those automated systems that aid Forex traders in implementing their trade strategies. These trade tools allow the individual traders to set their trade indications and limitations, also these systems will automatically execute the organized trade strategies.Forex Expert Advisors For Beginners
Forex Expert Advisors level the arena for individuals who want to get into Forex trading. Banks and institutional investors are far ahead from individual Forex traders when it comes to expertise in trading skills. But with the help of the EAs, it seems that the gap between the expertise and the experience has narrowed
Forex Trading Styles
There are two main Forex trading styles that are used by a majority of Forex traders:Technical TradingFundamental TradingEach of these has its differences, so let’s look into them in some more detail.Technical Forex trading is primarily based on one of two tools. Charting tools are, as the name suggests, charts of past currency movements. As with any chart, you can add in trend lines to help smooth out the minor fluctuations and allow you to see the bigger picture. Of course, charting is a lot more complicated than mere trend lines but there are software programs out there that will help with your chart analysis. Once you get deeper into charts, the other main technical Forex trading method is the use of Quantitative Trading Models. These use math to analyze the markets and identify opportunites for trading. Technical trading uses past data to endeavor to predict future movements in the market.Fundamental Forex trading involves the analysis of things such as key economic data. This includes reports from governments, current event news coverage and any other data that the fundamental analyst considers useful. Fundamentalists consider that currency movements are mainly affected by economic and political conditions and events. Whilst central banks have been known to get involved in the currency markets, this has become less common in recent years. Fundamentalist Forex trading looks at interest rates, inflation figures, balance of trade figures, Gross Domestic Product, retail price indexes, producer price indexes amongst other factors.You need to decide which of these two trading styles fits best with your own personal style as well as the amount of time you have available for analysis and any help that you can get from computer programs.Forexyard is the leader in online currency trading. It provides real-time deal execution, free Forex charts and quotes together with 24 hour commission free Forex trading.
Foreign Exchange Tips
Setting goals is a great way to become successful. By setting a goal you work hard to achieve that goal. Many people set small goals so when they reach it they feel a sense of achievement and set a bigger goal. People who are in the financial market also set goals for themselves. These goals will be different from different marketers because they all have different income levels and circumstances. It is hard to find the right market that fits you meaning the right market that fits your goals (no matter how big or small) and your circumstances too. In this article I will give you a market that is very profitable and the market I am talking about is Forex (otherwise known as the Foreign Exchange Market). One thing that you should note about this market is that it isn’t using stock or shares but instead it is using a nation currency for economic trading. The reason for this is that a nation’s currency can’t be reduced by certain incidents like news or weather, whereas shares are affected by these factors and can end up being reduced in a day! As you should be able to tell this way of trading is a good idea for marketers.A question you should ask yourself before jumping into the Forex market is whether you are planning to trade as a business or an avocation. In other words are you planning to work part time which would mean you will be doing this in your free time or are you planning to work full time. It doesn’t matter which one you choose because the Forex market is open for a very long period (24 hours and 6 six days a week). Online trading platforms facilitate the needs of the other nation’s time zones.The question of part time and full time is very important because if you are going to trade on the Forex market part time then you will not have the same capital as someone trading full time. Regardless of your choice, you should know that the Forex market can accommodate any trading plans.With two unit sizes this is easy to do. The Forex Market contains a full unit size which is 100,000 units which has a 1% unit margin and the other unit size is 10,000 units which are controlled by a smaller unit margin of 0.5%. A mini account can be started for as little as $300 which is not bad considering all the profit that can be made back from this system.Now that you know what the Forex market is, does it fit your financial goal and circumstances? If you are looking for a financial market then why not use Forex? It is very easy to use and with the cheap set up of $300 (cheaper than many competitors) that can be turned into $3,000 it is very hard to let this offer pass you.Risks in Forex Trading
As a mostly speculative activity, forex trading involves many risks. In two words, forex trading risks are mainly about losing money. That's why Forex Money Management is so crucial when it comes to forex. Traders must have a plan and stick to it no matter what, or else they might lose their shirt in a matter of hours – that’s why you must never trade money that you need to survive. In fact, one of the ways to approach forex trading is through risk management. Much of how you trade is actually defined by your risk profile: are you someone who likes taking risks, hates taking risks or someone who is generally apathetic to risk?Depending on your answer to this question, you will build your own customized trading strategy. Having a trading plan and sticking to it is the only way to make forex trading profitable and to avoid the main forex trading risks. When trading forex, risk management makes up a big part of your plan. To define a clear trading plan, traders must define several points:When to trade: what timeframes are best suited to your trading routine? Are you more of a day-trader – someone who trades over a couple of days, usually aiming for 10 to 50 pip profits; an intra-day trader – this category of traders is also known as “scalpers”: they trade on time frames of a few minutes and make a large number of deals for profits usually ranging from 5 to 10 pips; a swing trader – these are professional traders who open positions over several days for profits ranging from 50 to 100 pips; or a position trader – meaning that you make less transactions over a longer period of time for profits ranging from 500 to 1000 pips To learn more, continue to: Forex Trading HoursWhat tools do you base your trading strategy on? Whereas intra-day traders and day traders will generally make their trading decisions according to technical analysis, position traders usually trade according to fundamental analysis. As for swing traders, they usually use both. Which products do you trade? Some products such as options are more complex than others and will therefore be traded by more seasoned traders. Choosing the right product is also essential when it comes to trading strategy. And last but not least: what risk are you willing to take? According to your money management system, you will define a certain percentage of your capital you are ready to loose, and set margin, leverage and stop-losses accordingly. The extent of forex trading risks is equal to its potential profitability. Indeed, since forex is a leveraged market, it allows for huge profits but can also lead to huge losses. That’s why we recommend traders new to the field to use a relatively low leverage level at the beginning. That way, you can test your overall strategy without risking too much. If you lose, you can readjust your strategy and still have enough money to get back into the game.In brief, the main forex trading risk is losing money. However, with a sound trading strategy, solid money and risk management plan and a cool head, you may limit and minimize your losses while maximizing your profits. It is also to be noted that with Finotec, in order to prevent over-ambitious traders to lose what they can’t afford, you cannot lose more than your initial deposit. If a trader reaches that point, part or all of his positions will be closed to avoid.
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