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Friday, July 31, 2009
Senators Grill Bernanke Over Economic Conditions
RTTNews - A Senate panel Wednesday fired pointed questions at Federal Reserve Chairman Ben Bernanke over the state of the economy.
Sen. Chris Dodd, D-Conn., the chairman of the Senate Banking Committee, said that while some signs of economic recovery have been seen on Wall Street, the benefits have yet to make it to Main Street.
"Today we meet to receive the semi-annual monetary policy report," Dodd said. "And if the goal is full employment, then obviously the news today is rather grim."
Dodd noted that although big banks that received government bailouts are now posting profits, consumer and small business lending remains sluggish, with many Americans still concerned about reports of executive bonuses at the same time layoffs are being made.
"I appreciate your hard work on the monetary policy side of the equation and the positive indicators we have seen in recent weeks," Dodd said. "But these positive indicators seem to be stuck at the top."
He added, "We on this committee work for the American people. When can they expect the recovery that they have funded? When will working families see their rally, their pay raise, their jobs stabilized?"
Bernanke conceded that unemployment is "the most pressing issue" facing the Fed, but he noted that there are steps that Congress could take to ease the situation, similar to the already-passed extension of unemployment benefits.
He said one serious concern was that the long-term unemployed might see their job skills atrophy, leaving them unqualified for work once the economy recovers. Extending job training programs might be one response Congress should consider, the Fed chief said.
Dodd also said there was "a history at the Fed that is deeply troubling" regarding consumer protection. The Administration has proposed removing that duty from the Fed and placing it in the hands of a consumer financial protection agency.
Bernanke conceded that the Fed had not acted quickly enough and that there are "legitimate concerns about the long-term commitment of the Fed."
However, he said that the agency has the capacity to take strong actions to protect consumers and that Congress could take steps to ensure the Fed focuses more on consumer protection, perhaps by requiring a semi-annual report specifically focused on the Fed's actions to protect consumers.
Sen. Richard Shelby, R-Ala., the ranking Republican on the panel, questioned Bernanke's role in the recent financial rescue efforts.
"While monetary policy is the central focus of this hearing, I believe we must also examine the Fed's performance as a bank regulator as well as its participation in bailouts over the last year," Shelby said. "I do not believe that the board or the regional banks have handled their regulatory responsibilities very well."
He added, "I am not aware of any effort on the part of the Fed, prior to the crisis, to question or require such [financial] firms to take any actions to address the significant risks they were taking."
Shelby also asked Bernanke to what degree he would be willing to subject the Fed's actions to Congressional or Government Accountability Office scrutiny.
Bernanke said that with the exception of the Fed's deliberations and decisions regarding monetary policy, "Congress should have the ability to oversee all aspects" of the Fed's actions.
He added that he was willing to work with congress on legislation to establish such oversight.
Bernanke added that it would be "somewhat premature" to make a strong case that the $787 billion federal economic and recovery package had either worked or failed.
Sen. Chris Dodd, D-Conn., the chairman of the Senate Banking Committee, said that while some signs of economic recovery have been seen on Wall Street, the benefits have yet to make it to Main Street.
"Today we meet to receive the semi-annual monetary policy report," Dodd said. "And if the goal is full employment, then obviously the news today is rather grim."
Dodd noted that although big banks that received government bailouts are now posting profits, consumer and small business lending remains sluggish, with many Americans still concerned about reports of executive bonuses at the same time layoffs are being made.
"I appreciate your hard work on the monetary policy side of the equation and the positive indicators we have seen in recent weeks," Dodd said. "But these positive indicators seem to be stuck at the top."
He added, "We on this committee work for the American people. When can they expect the recovery that they have funded? When will working families see their rally, their pay raise, their jobs stabilized?"
Bernanke conceded that unemployment is "the most pressing issue" facing the Fed, but he noted that there are steps that Congress could take to ease the situation, similar to the already-passed extension of unemployment benefits.
He said one serious concern was that the long-term unemployed might see their job skills atrophy, leaving them unqualified for work once the economy recovers. Extending job training programs might be one response Congress should consider, the Fed chief said.
Dodd also said there was "a history at the Fed that is deeply troubling" regarding consumer protection. The Administration has proposed removing that duty from the Fed and placing it in the hands of a consumer financial protection agency.
Bernanke conceded that the Fed had not acted quickly enough and that there are "legitimate concerns about the long-term commitment of the Fed."
However, he said that the agency has the capacity to take strong actions to protect consumers and that Congress could take steps to ensure the Fed focuses more on consumer protection, perhaps by requiring a semi-annual report specifically focused on the Fed's actions to protect consumers.
Sen. Richard Shelby, R-Ala., the ranking Republican on the panel, questioned Bernanke's role in the recent financial rescue efforts.
"While monetary policy is the central focus of this hearing, I believe we must also examine the Fed's performance as a bank regulator as well as its participation in bailouts over the last year," Shelby said. "I do not believe that the board or the regional banks have handled their regulatory responsibilities very well."
He added, "I am not aware of any effort on the part of the Fed, prior to the crisis, to question or require such [financial] firms to take any actions to address the significant risks they were taking."
Shelby also asked Bernanke to what degree he would be willing to subject the Fed's actions to Congressional or Government Accountability Office scrutiny.
Bernanke said that with the exception of the Fed's deliberations and decisions regarding monetary policy, "Congress should have the ability to oversee all aspects" of the Fed's actions.
He added that he was willing to work with congress on legislation to establish such oversight.
Bernanke added that it would be "somewhat premature" to make a strong case that the $787 billion federal economic and recovery package had either worked or failed.
Economic Conditions: Gold and Interbank Forex
Current economic conditions in both the US and Europe have caused a slowdown in the sale of gold by banks. Sales of gold by European banks are expected to be lower this year since banks are trying to mitigate the risks of paper assets. Banks in Asia and the Middle East are expected to become buyers of gold to diversify away from the US dollar. The main reason cited for central banks holding gold is the instability of the US dollar.
Although the dollar has rallied against the Euro recently European banks are uneasy about the long term stability of the Dollar. The European Central Bank Gold agreement allows the sale of 500 tons a year but sales have fallen short of the ceiling placed on gold sales and current sales amount to 357 tons. Said metals consultant Philip Klapwijk, "Given the damage done to a lot of other paper assets that were formerly considered secure, there will be greater risk aversion among central banks." This will only boost gold's status within central bank reserves. Bundesbank, with the second largest gold reserves in the world after the U.S. Federal Reserve, announced that it would sell no gold during the next 12 months. After announcing the sale of 250 tons of gold the Swiss National Bank announced it had no plans to sell more gold.
Earlier in the year the Dollar slipped to record lows against the Euro and many European central banks are expressing doubts over the long term future of the dollar. Again Mr. Klapwijk states, "There are more and more questions being placed against the U.S. dollar and its role at centre of existing international financial system." Since World War Two the US dollar has been the standard against which all other currencies are measured. The current crisis in the US has many questioning the wisdom of pegging currencies against the dollar.
Demand for gold is predicted to increase with corresponding rises in price. Financial concerns are making gold more attractive as a reserve asset for central banks. Gold is seen as a confidence building and stabilizing influence on a country's currency. While gold prices are not expected to skyrocket as in the past, increased demand is expected to increase prices.
What effect this will have on the interbank Forex markets is open to wide speculation. Markets, including the Interbank Forex, are taking a wait and see approach due to the US financial crisis and concerns about the proposed bailout. The US bailout bill passed overwhelmingly in the US Senate and a vote is expected in the House of Representatives by Friday. Until then markets will probably remain in a state of limbo.
Although the dollar has rallied against the Euro recently European banks are uneasy about the long term stability of the Dollar. The European Central Bank Gold agreement allows the sale of 500 tons a year but sales have fallen short of the ceiling placed on gold sales and current sales amount to 357 tons. Said metals consultant Philip Klapwijk, "Given the damage done to a lot of other paper assets that were formerly considered secure, there will be greater risk aversion among central banks." This will only boost gold's status within central bank reserves. Bundesbank, with the second largest gold reserves in the world after the U.S. Federal Reserve, announced that it would sell no gold during the next 12 months. After announcing the sale of 250 tons of gold the Swiss National Bank announced it had no plans to sell more gold.
Earlier in the year the Dollar slipped to record lows against the Euro and many European central banks are expressing doubts over the long term future of the dollar. Again Mr. Klapwijk states, "There are more and more questions being placed against the U.S. dollar and its role at centre of existing international financial system." Since World War Two the US dollar has been the standard against which all other currencies are measured. The current crisis in the US has many questioning the wisdom of pegging currencies against the dollar.
Demand for gold is predicted to increase with corresponding rises in price. Financial concerns are making gold more attractive as a reserve asset for central banks. Gold is seen as a confidence building and stabilizing influence on a country's currency. While gold prices are not expected to skyrocket as in the past, increased demand is expected to increase prices.
What effect this will have on the interbank Forex markets is open to wide speculation. Markets, including the Interbank Forex, are taking a wait and see approach due to the US financial crisis and concerns about the proposed bailout. The US bailout bill passed overwhelmingly in the US Senate and a vote is expected in the House of Representatives by Friday. Until then markets will probably remain in a state of limbo.
Thursday, July 30, 2009
After Cancun, it is China's forex policy
AFTER CANCUN, the next hot issue in international forums could well be China's exchange rate policy. Rather more generally, the exchange rate policies of all countries which actively intervene in forex markets to depress their own currencies and in the process build their forex reserves. India does not appear so far to have come on the radar screen of the G 7 (excluding Japan) which has now begun a systematic campaign against interventionist forex policies.
The flare-up over exchange rate policies once again shows how inextricably economics is linked with politics. It cannot be otherwise as both economics and politics are ultimately concerned with people in the ordinary business of life. And current forex rates policy, say in China, seems to be having a noticeably adverse impact on jobs in the G 7 countries — particularly in the U.S. and the Euro zone. And, of course, exchange rate adjustments are seen as a palliative (even if only for the short-term) to the problem of jobs destruction in the U.S. and the Euro zone.
U.S. and Euro zone arguments
Both the U.S. and the European Union now want China to abandon its policy of pegging the exchange rate of its currency, the yuan, against the U.S. dollar at a fixed 8.28 units. They have called for a revaluation of the yuan, commensurate with China's enhanced (and still growing) stature in the international economy.
First, the U.S. argument. This is not difficult to understand. America wants the yuan to be revalued so as to make Chinese goods costlier for American consumers and thereby make domestic goods more saleable. This, in turn, is expected to support domestic production and thereby help in the retention of domestic jobs.
The numbers here are quite significant and seem to support this argument. China has now emerged as the second largest trading partner of the U.S. after Japan. More importantly, it accounts for 20 per cent of the U.S. trade deficit and ranks first among nations with which the U.S. runs trade deficits. (For instance, the US has posted a trade deficit of $250 billion in the six months to June 2003 and China's share in that is $ 54 billion. This is higher than Japan's share at $ 32 billion and Germany's $19 billion).
As for the structural composition of the trade deficit, here too the trends appear to be turning adverse for the U.S. For long, one thought that the Chinese were dominant exporters of textiles, light engineering goods and toys to the U.S. market. Recent developments suggest that even manufacture of medium and heavy industry (with critical job potential) may be shifting into the low-cost base of China. Caterpillar, the world's largest maker of earth-moving equipment, recently went on record that a manufacturing base in China as a global supply base could be crucial for the company going forward. Global automakers such as General Motors and Daimler-Chrysler already have a full-scale manufacturing presence in China. (On a more macro plane, it is estimated that more than 50 per cent of all manufactured goods that Americans buy now are imported, up from around 30 per cent in the mid-1980s).
America does not have the time for structural adjustments of the type which can provide more than a transitory cure for its bulging trade deficits. More so with the Presidential elections due in 2004. Exchange rate adjustments are therefore seen as a panacea, even if only for the short-term.
The E.U. argument for a higher Chinese yuan is more interesting. A pegged Chinese currency against the U.S. dollar means that the Euro (the common European currency) is taking a disproportionate burden of adjusting for the massive US trade imbalance. That is, with the yuan not revaluing, the Euro has been revaluing also for it, in addition to any inherent forces that may be pushing the Euro higher against the dollar. And, of course, for major manufacturer exporters such as Germany (the locomotive economy in Europe), a strong Euro is a major bugbear.
The numbers here bear some emphasis. While the yuan has remained pegged at 8.28 against the dollar, the Euro is up more than 25 per cent in the past year and a half — it has zoomed from just around 89 U.S. cents early in 2002 to around 1.13 U.S. dollars now.
Sentimental comfort but bad economics
The mechanism of the Euro's upward adjustment consequent to a pegged Chinese currency is even more interesting. While on the one hand it could be comforting for the Euro's founders (who wanted the common currency to emerge as an alternative to the dollar as a reserve currency), it is bad economics as Germany teetering on a recession appears to indicate.
Quite simply, the massive hoard of dollars which countries such as China are accumulating from their trade surpluses with the U.S. is not fully lent back to the U.S. (as BoP capital account flows). A part of it or even a sizable part appears to be flowing into Euro-denominated assets. This is also contributing to the major upward thrust to the Euro in foreign exchange matters. This is what is meant when Euro zone authorities say that the common currency is now carrying a disproportionate burden of adjusting for the pegged yuan also.
Information flow from China is scanty. But the Reserve Bank of India has pointed out that valuation changes (from holding non-dollar assets in the forex reserves) account for 20 per cent of the increase (of around $ 17 billion) in India's forex reserves in the past year. It is quite likely Indian forex reserves management strategy now somewhat resembles China's.
The bottomline: not only is the Chinese peg hurting America, it is also becoming a major headache for the Euro zone, particularly Germany. The peg, though, may not be dismantled any time soon. In such a situation, given the magnitude of trade and investment flows emanating from China, one can reasonably expect the U.S. dollar to continue to remain weak against the Euro for some more time to come.
The flare-up over exchange rate policies once again shows how inextricably economics is linked with politics. It cannot be otherwise as both economics and politics are ultimately concerned with people in the ordinary business of life. And current forex rates policy, say in China, seems to be having a noticeably adverse impact on jobs in the G 7 countries — particularly in the U.S. and the Euro zone. And, of course, exchange rate adjustments are seen as a palliative (even if only for the short-term) to the problem of jobs destruction in the U.S. and the Euro zone.
U.S. and Euro zone arguments
Both the U.S. and the European Union now want China to abandon its policy of pegging the exchange rate of its currency, the yuan, against the U.S. dollar at a fixed 8.28 units. They have called for a revaluation of the yuan, commensurate with China's enhanced (and still growing) stature in the international economy.
First, the U.S. argument. This is not difficult to understand. America wants the yuan to be revalued so as to make Chinese goods costlier for American consumers and thereby make domestic goods more saleable. This, in turn, is expected to support domestic production and thereby help in the retention of domestic jobs.
The numbers here are quite significant and seem to support this argument. China has now emerged as the second largest trading partner of the U.S. after Japan. More importantly, it accounts for 20 per cent of the U.S. trade deficit and ranks first among nations with which the U.S. runs trade deficits. (For instance, the US has posted a trade deficit of $250 billion in the six months to June 2003 and China's share in that is $ 54 billion. This is higher than Japan's share at $ 32 billion and Germany's $19 billion).
As for the structural composition of the trade deficit, here too the trends appear to be turning adverse for the U.S. For long, one thought that the Chinese were dominant exporters of textiles, light engineering goods and toys to the U.S. market. Recent developments suggest that even manufacture of medium and heavy industry (with critical job potential) may be shifting into the low-cost base of China. Caterpillar, the world's largest maker of earth-moving equipment, recently went on record that a manufacturing base in China as a global supply base could be crucial for the company going forward. Global automakers such as General Motors and Daimler-Chrysler already have a full-scale manufacturing presence in China. (On a more macro plane, it is estimated that more than 50 per cent of all manufactured goods that Americans buy now are imported, up from around 30 per cent in the mid-1980s).
America does not have the time for structural adjustments of the type which can provide more than a transitory cure for its bulging trade deficits. More so with the Presidential elections due in 2004. Exchange rate adjustments are therefore seen as a panacea, even if only for the short-term.
The E.U. argument for a higher Chinese yuan is more interesting. A pegged Chinese currency against the U.S. dollar means that the Euro (the common European currency) is taking a disproportionate burden of adjusting for the massive US trade imbalance. That is, with the yuan not revaluing, the Euro has been revaluing also for it, in addition to any inherent forces that may be pushing the Euro higher against the dollar. And, of course, for major manufacturer exporters such as Germany (the locomotive economy in Europe), a strong Euro is a major bugbear.
The numbers here bear some emphasis. While the yuan has remained pegged at 8.28 against the dollar, the Euro is up more than 25 per cent in the past year and a half — it has zoomed from just around 89 U.S. cents early in 2002 to around 1.13 U.S. dollars now.
Sentimental comfort but bad economics
The mechanism of the Euro's upward adjustment consequent to a pegged Chinese currency is even more interesting. While on the one hand it could be comforting for the Euro's founders (who wanted the common currency to emerge as an alternative to the dollar as a reserve currency), it is bad economics as Germany teetering on a recession appears to indicate.
Quite simply, the massive hoard of dollars which countries such as China are accumulating from their trade surpluses with the U.S. is not fully lent back to the U.S. (as BoP capital account flows). A part of it or even a sizable part appears to be flowing into Euro-denominated assets. This is also contributing to the major upward thrust to the Euro in foreign exchange matters. This is what is meant when Euro zone authorities say that the common currency is now carrying a disproportionate burden of adjusting for the pegged yuan also.
Information flow from China is scanty. But the Reserve Bank of India has pointed out that valuation changes (from holding non-dollar assets in the forex reserves) account for 20 per cent of the increase (of around $ 17 billion) in India's forex reserves in the past year. It is quite likely Indian forex reserves management strategy now somewhat resembles China's.
The bottomline: not only is the Chinese peg hurting America, it is also becoming a major headache for the Euro zone, particularly Germany. The peg, though, may not be dismantled any time soon. In such a situation, given the magnitude of trade and investment flows emanating from China, one can reasonably expect the U.S. dollar to continue to remain weak against the Euro for some more time to come.
Policy and Personnel
Board-Approved Forex Policies
As part of the forex hedging implementation plan, management will develop a Foreign Currency Hedging Policy to be approved by the Board of Directors. This policy will act as a guideline for managing foreign currency risk. A detailed policy includes the following components:
As part of the forex hedging implementation plan, management will develop a Foreign Currency Hedging Policy to be approved by the Board of Directors. This policy will act as a guideline for managing foreign currency risk. A detailed policy includes the following components:
- Hedging objectives
- Currency exposures
- Hedging timeframes for future exposures (3, 6, 12, or 24 months)
- Authorized hedging products
- Speculation limits and authorizations, if applicable
- Internal controls (segregation) & reporting
- Performance measures (not based on whether the hedge is profitable)
- Risk management structure
- Departmental responsibilities: trading, reporting, compliance (tax, GAAP), and management reports (treasurers, controllers, and tax)
- Board Approval
To view sample forex hedging policies for Boards and management, see the following document:
Properly Educated Personnel
Qualified staff is necessary to manage hedging processes, particularly for hedging future transactions and engaging in speculative trading. When your company is considering whether to hedge future foreign currency transactions, proper validation of the forecasted foreign currency exposures requires good judgement and investigation skills. Your staff must be qualified and trained to identify and manage these exposures effectively.
Speculative forex transactions carry a higher than average degree of risk, and forex speculation is not a recommended activity for companies (unless it is the prime focus of their business). If your company decides to trade foreign currencies speculatively, be aware of the risks. For example, in addition to the normal volatility, risk can also be associated with factors such as changes in a country's political condition, economic climate, or acts of nature, all of which may substantially affect the price or availability of a given currency. You must, therefore, carefully consider your investment objectives, level of experience, and appetite for such risk prior to entering this speculative market. Most importantly, do not invest money that your company is not in a position to lose.
Counterparty Risk
Every contract carries the risk (for each party) that the counterparty will not live up to its contractual obligations or will default. For example, the provider may not execute the foreign currency transaction as directed. Or, once the forex transaction is executed, there is a risk of default if the provider didn't hedge out the transaction with another customer’s trade or with another forexliquidity provider.
To help manage risk, you must verify counterparty viability before placing any trade with them. For example, verify that the counterparty:
- has extremely good credit
- has a strong capital position
- has risk management policies which hedge out any net forex exposures to an appropriate liquidity provider. The use of margin accounts should eliminate the counterparty’s exposure to any customer losses
As an example, US-based counterparties must have either a single A credit rating from a major credit rating agency or a minimum of $50 million in Excess Regulatory Capital, as defined in the monthly reporting to the Commodity Futures Trading Commission (CFTC).
Global Equity Slump Props USD
Risk aversion propped the dollar higher against the majors in Wednesday trading amid a retreat in the global equity markets – with Shanghai’s Composite Index plummeting by 5% overnight. Commodities also slumped with gold falling to its lowest level in 2-weeks just above the $927 per ounce level and crude oil sliding to below $64 per barrel. The greenback pushed the euro toward the 1.40-figure and the Swiss franc around the 1.09-handle.
US economic reports released this morning saw durable goods orders decline sharply in June, posting a monthly decline of 2.5% versus a downwardly revised increase of 1.3% from May. The excluding transports durable goods orders improved to 1.1% compared with a downwardly revised 0.8% increase a month prior. The Fed’s Beige Book revealed the pace of economic decline had moderated or stabilized at a low level in most districts adding that the manufacturing sector remained subdued but slightly more positive than in the past. The Fed said there was still slack in the labor markets, with most sectors reducing jobs or holding steady and net employment falling.
Meanwhile, NY Fed President Dudley expressed optimism over the economy, saying he expects moderate growth in the second half of this year, albeit considerably slower than in past recoveries. Dudley said “the balance of risks is still tilted toward weakness in growth and employment and not toward higher inflation”, suggesting that the Fed will likely maintain low interest rates for some time to come. Lastly, he said that “if the recovery does, in fact, turn out to be lackluster, the unemployment rate is likely to remain elevated and capacity utilization rates unusually low” in the near-term.
US economic reports released this morning saw durable goods orders decline sharply in June, posting a monthly decline of 2.5% versus a downwardly revised increase of 1.3% from May. The excluding transports durable goods orders improved to 1.1% compared with a downwardly revised 0.8% increase a month prior. The Fed’s Beige Book revealed the pace of economic decline had moderated or stabilized at a low level in most districts adding that the manufacturing sector remained subdued but slightly more positive than in the past. The Fed said there was still slack in the labor markets, with most sectors reducing jobs or holding steady and net employment falling.
Meanwhile, NY Fed President Dudley expressed optimism over the economy, saying he expects moderate growth in the second half of this year, albeit considerably slower than in past recoveries. Dudley said “the balance of risks is still tilted toward weakness in growth and employment and not toward higher inflation”, suggesting that the Fed will likely maintain low interest rates for some time to come. Lastly, he said that “if the recovery does, in fact, turn out to be lackluster, the unemployment rate is likely to remain elevated and capacity utilization rates unusually low” in the near-term.
Tuesday, July 28, 2009
What makes a good Trading Strategy?
Ask most NEW traders, and they will tell you about some moving average or combination of indicators or a chart pattern that they use. This is, as the more experienced trader knows, an entry point and not a strategy.
Any trader who is more experienced will say a strategy should also include money management, risk control, perhaps stop losses and of course, an exit point. They might also say that you must let your profits run and cut your losses short. A well-read trader will also tell you that your strategy should fit with your trading personality.
BUT there is one other vital ingredient that many traders forget - and that is to fully understand the "personality" of what you trade. Some traders specialise in say, gold or Brent crude or currencies or they might specialise in a particular index such as the FTSE 100 or the Dow but many traders choose to trade shares. Indeed some traders dabble in a bit of everything. I think this is the area that causes many traders to fail or at least not reach their full potential.
In my view: You absolutely MUST specialise.
I am sure that on the surface most people would say that sounds sensible but here is why it is a MUST!
Superficially, many charts look the same. I bet if you had not seen the charts for some time and someone where to show you a chart of Brent Crude over 6 months and then a chart of Barclays PLC over the same 6 months you would be hard pushed to say which was which purely on the look of the chart.
However, I bet that if you found a trader who trades ONLY Barclays day in and day out and also found someone who trades ONLY Brent Crude day in and day out, both of them would easily identify which was which. WHY?
Because every share, index or commodity has it’s own "personality".
Some will be volatile intra-day, some will follow their sector or the main index (market followers), some will do their own thing, some will spike up and down regularly, some will stop at key moving averages and some will just plough through. Some will move by 5% on average before they retrace and some by 2%. Some will gap up or down regularly, some will not. You get the idea!
Therefore, no matter how good you are at analysing indicators, moving averages, trends and patterns, the same strategy WILL NOT work for everything. I would go so far as to say that a strategy that works well for Bovis Homes, for example, is likely NOT to work for BT Group - they have very different "personalities".
So let’s return to our question: What makes a good trading strategy? Let me answer with a series of ten questions that you need to find answers to, in order to build a REALLY GOOD strategy.
What do you want to trade (share, index, commodity, currency, etc)? If your answer is shares (plural) I would urge you to pick one typical share at this stage to really specialise. You can add more later.
What "personality" does that share, index etc have?
What entry system is the most reliable for that share?
What stop loss system is the most effective for that share?
What average risk will a typical trade carry?
What exit system works well for that share?
What is your trading personality (attitude to risk, losses, discipline, how much do you worry etc) and can you trade that strategy without overriding it?
What timescale do you want to trade? (Using intra-day or end of day data)
How much data do you keep on past trades to help identify strategy weaknesses?
How does all this fit with your trading objectives?
Once you have an answer to each question you need to do one final thing. Make sure all those things fit together and complement each other. For example, if the ideal stop loss position represents a big average risk and conflicts with your own attitude to risk, you need to start again. If you will override your exit point because greed makes you hang in for more, you need to think again. Perhaps you shouldn’t trade that stock in the first place - look for one with a different "personality" which will lead to a strategy you can trade comfortably.
It is a long and sometimes painful iterative journey. You might need to go round and round in ever decreasing circles over a long time. Testing and refining, testing and refining before you can truly have a reliable and repeatable strategy that REALLY WORKS for you.
THEN, you can look for other things to trade that have the same "personality" as your specialist stock, index, commodity or currency.
But if it were easy, everyone would be doing it right?
Good luck and enjoy your trading.
Any trader who is more experienced will say a strategy should also include money management, risk control, perhaps stop losses and of course, an exit point. They might also say that you must let your profits run and cut your losses short. A well-read trader will also tell you that your strategy should fit with your trading personality.
BUT there is one other vital ingredient that many traders forget - and that is to fully understand the "personality" of what you trade. Some traders specialise in say, gold or Brent crude or currencies or they might specialise in a particular index such as the FTSE 100 or the Dow but many traders choose to trade shares. Indeed some traders dabble in a bit of everything. I think this is the area that causes many traders to fail or at least not reach their full potential.
In my view: You absolutely MUST specialise.
I am sure that on the surface most people would say that sounds sensible but here is why it is a MUST!
Superficially, many charts look the same. I bet if you had not seen the charts for some time and someone where to show you a chart of Brent Crude over 6 months and then a chart of Barclays PLC over the same 6 months you would be hard pushed to say which was which purely on the look of the chart.
However, I bet that if you found a trader who trades ONLY Barclays day in and day out and also found someone who trades ONLY Brent Crude day in and day out, both of them would easily identify which was which. WHY?
Because every share, index or commodity has it’s own "personality".
Some will be volatile intra-day, some will follow their sector or the main index (market followers), some will do their own thing, some will spike up and down regularly, some will stop at key moving averages and some will just plough through. Some will move by 5% on average before they retrace and some by 2%. Some will gap up or down regularly, some will not. You get the idea!
Therefore, no matter how good you are at analysing indicators, moving averages, trends and patterns, the same strategy WILL NOT work for everything. I would go so far as to say that a strategy that works well for Bovis Homes, for example, is likely NOT to work for BT Group - they have very different "personalities".
So let’s return to our question: What makes a good trading strategy? Let me answer with a series of ten questions that you need to find answers to, in order to build a REALLY GOOD strategy.
What do you want to trade (share, index, commodity, currency, etc)? If your answer is shares (plural) I would urge you to pick one typical share at this stage to really specialise. You can add more later.
What "personality" does that share, index etc have?
What entry system is the most reliable for that share?
What stop loss system is the most effective for that share?
What average risk will a typical trade carry?
What exit system works well for that share?
What is your trading personality (attitude to risk, losses, discipline, how much do you worry etc) and can you trade that strategy without overriding it?
What timescale do you want to trade? (Using intra-day or end of day data)
How much data do you keep on past trades to help identify strategy weaknesses?
How does all this fit with your trading objectives?
Once you have an answer to each question you need to do one final thing. Make sure all those things fit together and complement each other. For example, if the ideal stop loss position represents a big average risk and conflicts with your own attitude to risk, you need to start again. If you will override your exit point because greed makes you hang in for more, you need to think again. Perhaps you shouldn’t trade that stock in the first place - look for one with a different "personality" which will lead to a strategy you can trade comfortably.
It is a long and sometimes painful iterative journey. You might need to go round and round in ever decreasing circles over a long time. Testing and refining, testing and refining before you can truly have a reliable and repeatable strategy that REALLY WORKS for you.
THEN, you can look for other things to trade that have the same "personality" as your specialist stock, index, commodity or currency.
But if it were easy, everyone would be doing it right?
Good luck and enjoy your trading.
Forex Currency Trading - Knowledge is the Key to Success
Today, the Forex market is the largest market in the world with more than 1.8 trillion dollars changing hands daily. With its attractive features like super liquidity, 24 hours market and better execution, it is also considered as one of the most striking and rewarding market. But is it very difficult to make money in the Forex market? Definitely not, provided you know all about Forex and currency trading.
In the Forex market, if you look at the performance graph of Forex brokers, you will see that some traders succeed while others fail to trade successfully. The main reason is lack of proper trading knowledge.
That means they are trading currencies but they don’t know all about Forex and currency trading. Therefore it is very important to know everything you can about Forex and currency trading before you start trading in the Forex market.
If you want to know more about Forex and currency trading, start with fundamental analysis and technical analysis. These are two major things that will help you to understand when the market will move up, what is the right time to buy or sell currency pairs, how to gain more profits and what are the currencies to be traded.
Fundamental analysis includes world news, studying variables like monetary and fiscal policy, political conditions, trade patterns, economic indicators, inflation rates, unemployment rates etc.
On the other hand, technical analysis involves computer charting, using trend lines, support and resistant levels, reversals and numerous patterns, and studying the behavior pattern of market crowds to track and identify buying and selling opportunities.
As you enter into the realm of knowing all about Forex and currency trading, you will have a good idea about the major currency pairs that are traded in the Forex market. Among all the traded currencies, currencies that are most liquid and often traded along with the US dollar are:
European Euro
Japanese Yen
British Pound
Swiss Franc
Canadian dollar
Aussie dollar
Generally the most commonly traded currencies are those of countries with stable governments, reputable banks and low inflation.
As you gradually come to gain knowledge, you will understand that your success rate will be high if you follow the Forex trading system. The system has its own discipline that it follows rigorously. The system will let you know what are the trades that have greater rate of success and will send signals accordingly.
The Forex market is global and it is a 24 hour market. You can access Forex market anytime; don’t worry if it is night at your place, it will be daytime in some other parts of the world and trade is ongoing over there. So if you know all about Forex and currency trading, you can easily use your online currency trading system and start trading.
The major dealer centers and time zones are that of Sydney, Tokyo, London and New York. However, since the markets are interconnected, if any events occur at any hour, in any part of the globe, the investment community gets affected instantly.
Trading successfully in the Forex market is not an easy task. However, if you know all about Forex and currency trading your success rate will be highly influenced.
In the Forex market, if you look at the performance graph of Forex brokers, you will see that some traders succeed while others fail to trade successfully. The main reason is lack of proper trading knowledge.
That means they are trading currencies but they don’t know all about Forex and currency trading. Therefore it is very important to know everything you can about Forex and currency trading before you start trading in the Forex market.
If you want to know more about Forex and currency trading, start with fundamental analysis and technical analysis. These are two major things that will help you to understand when the market will move up, what is the right time to buy or sell currency pairs, how to gain more profits and what are the currencies to be traded.
Fundamental analysis includes world news, studying variables like monetary and fiscal policy, political conditions, trade patterns, economic indicators, inflation rates, unemployment rates etc.
On the other hand, technical analysis involves computer charting, using trend lines, support and resistant levels, reversals and numerous patterns, and studying the behavior pattern of market crowds to track and identify buying and selling opportunities.
As you enter into the realm of knowing all about Forex and currency trading, you will have a good idea about the major currency pairs that are traded in the Forex market. Among all the traded currencies, currencies that are most liquid and often traded along with the US dollar are:
European Euro
Japanese Yen
British Pound
Swiss Franc
Canadian dollar
Aussie dollar
Generally the most commonly traded currencies are those of countries with stable governments, reputable banks and low inflation.
As you gradually come to gain knowledge, you will understand that your success rate will be high if you follow the Forex trading system. The system has its own discipline that it follows rigorously. The system will let you know what are the trades that have greater rate of success and will send signals accordingly.
The Forex market is global and it is a 24 hour market. You can access Forex market anytime; don’t worry if it is night at your place, it will be daytime in some other parts of the world and trade is ongoing over there. So if you know all about Forex and currency trading, you can easily use your online currency trading system and start trading.
The major dealer centers and time zones are that of Sydney, Tokyo, London and New York. However, since the markets are interconnected, if any events occur at any hour, in any part of the globe, the investment community gets affected instantly.
Trading successfully in the Forex market is not an easy task. However, if you know all about Forex and currency trading your success rate will be highly influenced.
How to Win a Near 100% of Your Forex Trades
If you can't stand to stake the risk in forex trading but still are looking to make some extra money, you should join the 30% of all other traders who are currently using a forex trading machine. Here is how it works to enable you to win almost every single trade in the forex market.
A forex trading machine is a program which works by constantly remaining connected to and analyzing real time forex market data and makes use of mathematical algorithms to find profitable trends to invest in. Once the program has enacted a trade, it follows that investment along to ensure that the market is constantly situated so that you are constantly earning money on it. Once the market finally inevitably fluctuates out of your favor, the program trades the now turned investment away and starts the whole process over again.
The best forex trading machine and machines out there today are quickly gaining in popularity given the fact that they enable complete inexperienced rookies make real money in the forex market. Casual traders who do not have the time to effectively devote to trading can take advantage of this technology, as well.
Also, the forex trading machine and machines which trade more conservatively are especially reliable as they boast the greatest, near perfect winning rates as I mentioned in titling this article. The more aggressive trading machines have a habit of losing more than they take in as they notoriously always go for risky but potentially very rewarding trades, but just like manual trading this is not encouraged.
A forex trading machine is a program which works by constantly remaining connected to and analyzing real time forex market data and makes use of mathematical algorithms to find profitable trends to invest in. Once the program has enacted a trade, it follows that investment along to ensure that the market is constantly situated so that you are constantly earning money on it. Once the market finally inevitably fluctuates out of your favor, the program trades the now turned investment away and starts the whole process over again.
The best forex trading machine and machines out there today are quickly gaining in popularity given the fact that they enable complete inexperienced rookies make real money in the forex market. Casual traders who do not have the time to effectively devote to trading can take advantage of this technology, as well.
Also, the forex trading machine and machines which trade more conservatively are especially reliable as they boast the greatest, near perfect winning rates as I mentioned in titling this article. The more aggressive trading machines have a habit of losing more than they take in as they notoriously always go for risky but potentially very rewarding trades, but just like manual trading this is not encouraged.
Why Do Most Forex Traders Fail?
According to studies, over 90% of forex traders fail. You may ask if there is any reason for anyone to join the hordes of traders in the financial market, especially knowing that alongside the popularity of forex trading are fraudulent offers from fly-by-night firms. But those who have serious interest on investing must fret not. There are successful traders who can testify on how trading can double their earnings in a span of a year.
Nonetheless, it is not true that foreign currency trading is easy money. Those who succeed in forex options trading have invested a lot not only on their accounts but on education as well. Although information on currency trading is available everywhere on the internet, the saying that you really have to pay for quality education still applies. On an average, learning how to trade effectively may cost about $4000. This includes training courses that utilize videos, software and spread-betting accounts. All that is needed to learn about the financial market should be absorbed entirely before you can even start trading with a demo account.
But this is not all. Learning proper trading strategies require time and practice. Most traders who fail are those who entered the market using real money at the wrong time. Using a demo account for a few months before trading with real money shall equip you with the right experience in order to succeed in trading. One must practice a single strategy and stick to that system up to the time when you are all set for trading with real money.
Nonetheless, it is not true that foreign currency trading is easy money. Those who succeed in forex options trading have invested a lot not only on their accounts but on education as well. Although information on currency trading is available everywhere on the internet, the saying that you really have to pay for quality education still applies. On an average, learning how to trade effectively may cost about $4000. This includes training courses that utilize videos, software and spread-betting accounts. All that is needed to learn about the financial market should be absorbed entirely before you can even start trading with a demo account.
But this is not all. Learning proper trading strategies require time and practice. Most traders who fail are those who entered the market using real money at the wrong time. Using a demo account for a few months before trading with real money shall equip you with the right experience in order to succeed in trading. One must practice a single strategy and stick to that system up to the time when you are all set for trading with real money.
Price Action - The Forex Trading Technique That the Pros Use
I can't help but smile when I see all the different kinds of forex trading techniques that you can find online. They always seem to be these indicator driven systems where you make a trade based on what five different indicators are telling you at the time. There is no rhyme or reason for any of them. You are only basing your trading decision on a bunch of mathematical formulas that are lagging in time.
Just like everybody else who gets into trading, I used these indicators religiously, and they just let me high and dry. It's pretty obvious why that is. As I said, they are lagging. So a signal goes off after the I missed the entire move, because it is telling me what has already happened.
I'm glad I changed courses. I learned all about the oldest trading technique and the one used by the most successful technical traders in any of the trading markets. The concept is real simple. Its all based on price action. This means no indicators.
When researching, I couldn't believe how many successful traders don't spend thousands of dollars on all that fancy software, and the bells and whistles. It was a great shock to me as I am so used to seeing the trading desks where traders are looking at 20 computer screens with the 10 charts on each screen. But none of that is necessary. Its just useless filler.
All those indicators you get from trading software powerhouses like e-signal and tradestation, could never in a million years replace the power of your own eyes. Every single chart you look at, the market is telling you something. When you grasp the concept price action, you'll be able to understand exactly what that is.
Just like everybody else who gets into trading, I used these indicators religiously, and they just let me high and dry. It's pretty obvious why that is. As I said, they are lagging. So a signal goes off after the I missed the entire move, because it is telling me what has already happened.
I'm glad I changed courses. I learned all about the oldest trading technique and the one used by the most successful technical traders in any of the trading markets. The concept is real simple. Its all based on price action. This means no indicators.
When researching, I couldn't believe how many successful traders don't spend thousands of dollars on all that fancy software, and the bells and whistles. It was a great shock to me as I am so used to seeing the trading desks where traders are looking at 20 computer screens with the 10 charts on each screen. But none of that is necessary. Its just useless filler.
All those indicators you get from trading software powerhouses like e-signal and tradestation, could never in a million years replace the power of your own eyes. Every single chart you look at, the market is telling you something. When you grasp the concept price action, you'll be able to understand exactly what that is.
Price Action - The Best Forex Trading Technique
There are certainly a lot of traders searching for the best forex trading technique. If I could make a recommendation, it would definitely be price action. All you have to do is look at the some of the most famous technical traders in the history of trading. The vast majority of them used price action as their key technique.
I'm not saying they used the same exact method, because after all, price action means a lot of different things to a lot of different people. However, the common thread is that traders can use price movement to be able to predict the future direction of the market.
There are certainly other things involved, for instance fundamental analysis is another area that traders should know about. But when it comes to technical analysis, price action is critical.
Unfortunately, many traders don't really get this far. They are too busy tossing as many indicators as they can find onto their charts.
This is what happened to me when I first started trading the forex market. I must have tried every single indicator at one time or another. I tried the generic indicators like MACD, stochastics, RSI, moving averages, and I also tried those "state of the art" proprietary indicators. None of them worked.
If you were able to have success using these tools, then more power to you, because quite frankly, there aren't too many people that have.
This is when I started to realize that I was making this out to be more complicated than it had to be. All I really needed to understand the market was using price movement. When I was using indicators, it was like having an interpreter, interpret the markets for me. I realized that I would have to be the one to learn the language of the markets, and eliminate the middle man.
I'm not saying they used the same exact method, because after all, price action means a lot of different things to a lot of different people. However, the common thread is that traders can use price movement to be able to predict the future direction of the market.
There are certainly other things involved, for instance fundamental analysis is another area that traders should know about. But when it comes to technical analysis, price action is critical.
Unfortunately, many traders don't really get this far. They are too busy tossing as many indicators as they can find onto their charts.
This is what happened to me when I first started trading the forex market. I must have tried every single indicator at one time or another. I tried the generic indicators like MACD, stochastics, RSI, moving averages, and I also tried those "state of the art" proprietary indicators. None of them worked.
If you were able to have success using these tools, then more power to you, because quite frankly, there aren't too many people that have.
This is when I started to realize that I was making this out to be more complicated than it had to be. All I really needed to understand the market was using price movement. When I was using indicators, it was like having an interpreter, interpret the markets for me. I realized that I would have to be the one to learn the language of the markets, and eliminate the middle man.
Some Simple, Yet Effective Forex Trading Techniques
Experts will always assert that one of the surest ways to succeed in currency trading is knowing and implementing forex trading techniques. Foreign exchange is truly a dynamic and demanding investment avenue and there is the need to understand and truly comprehend such trading if you want to make your capital grow from it.
What are forex trading techniques? To begin with, such strategies are special and are schematic processes or styles of trading that are designed and implemented with the principal aim of generating higher revenue or income. Just like in any other form of trading, there is also a need to know and implement proper and working techniques to make your money grow through currency trading. Thus, it would be helpful if you would be familiar with several simple, yet proven effective forex trading techniques.
The first simple technique would be buying low, selling high. In general, this is the principal principle that should be practiced. Through this, investors should always strive to buy currencies that have lower values than what your currency form is. Thus, you would realize that you are actually making your capital valuation instantly. Then, you should wait for sometime until that currency appreciates and when it does, it would be the perfect time to sell it, which would return your money into your base currency, but this time in higher value.
Another simple technique is to convert your capital into US dollar as a base currency. If you are already having the dollar as a base currency, you could stick to it, but otherwise, it would be advisable if you convert into dollar. From there, you could easily convert into other currencies. Almost all currencies have direct dollar conversion rate, making it easier for traders to determine and actually run transactions.
Lastly, trade currency based on to market and economic factors. This technique employs the value of research about the factors and risks of the economy of particular countries. For example, if you want to trade into Japanese yen, it would be helpful if you would first understand what is going on in the business environment in Japan. This way, you could easily foretell if your converted money would rise or fall.
As an investor or trader, it should always be your goal to make your capital grow. Know and adopt effective forex trading techniques and see how your money could attain its real growth potential in no time.
What are forex trading techniques? To begin with, such strategies are special and are schematic processes or styles of trading that are designed and implemented with the principal aim of generating higher revenue or income. Just like in any other form of trading, there is also a need to know and implement proper and working techniques to make your money grow through currency trading. Thus, it would be helpful if you would be familiar with several simple, yet proven effective forex trading techniques.
The first simple technique would be buying low, selling high. In general, this is the principal principle that should be practiced. Through this, investors should always strive to buy currencies that have lower values than what your currency form is. Thus, you would realize that you are actually making your capital valuation instantly. Then, you should wait for sometime until that currency appreciates and when it does, it would be the perfect time to sell it, which would return your money into your base currency, but this time in higher value.
Another simple technique is to convert your capital into US dollar as a base currency. If you are already having the dollar as a base currency, you could stick to it, but otherwise, it would be advisable if you convert into dollar. From there, you could easily convert into other currencies. Almost all currencies have direct dollar conversion rate, making it easier for traders to determine and actually run transactions.
Lastly, trade currency based on to market and economic factors. This technique employs the value of research about the factors and risks of the economy of particular countries. For example, if you want to trade into Japanese yen, it would be helpful if you would first understand what is going on in the business environment in Japan. This way, you could easily foretell if your converted money would rise or fall.
As an investor or trader, it should always be your goal to make your capital grow. Know and adopt effective forex trading techniques and see how your money could attain its real growth potential in no time.
Efficient Tips to Select the Best Forex Brokers
What are forex brokers and how is it important? It is an agent which represents the client in the foreign exchange market. There are many people who do not know how to use the market for earning profits. In such cases they end up loosing money in the process of trading. Forex brokers were evolved to help the clients who are in need of special training on more about the techniques of trading. It helps the person to take apt decisions by analyzing the current situation prevailing in the market. In the long run it increases the profit levels.
In olden times, forex market was not open to public. Only banks and top level government institutions had access to the place. But now the scenario has changed and anyone can peep into the area with the help of forex brokers. You should select a broker according to your needs. Some of the best forex brokers which are available nowadays are Saxo Bank, GCI financial Limited, CMS forex and Gain capital. They provide free demos to the clients and offer twenty hour trading. Each company has its own specification and you choose out a broker keeping your priorities in mind.
There are over a thousand forex brokers in the market and to choose the best among them is a hectic task. A wrong move and you can be destroyed forever. They can build your career and at the same time destroy everything you have within a few period of time. Do not consider this a joke because there are dirty tricks played in the market by many brokers. Do not be a prey to such activities as it will end up ruining your life completely.
Make sure that your broker is honest, trust worthy and will not steal or do any other illegal activity. Always select a reputed broker who will efficiently take care of your accounts without any misdeeds.
In olden times, forex market was not open to public. Only banks and top level government institutions had access to the place. But now the scenario has changed and anyone can peep into the area with the help of forex brokers. You should select a broker according to your needs. Some of the best forex brokers which are available nowadays are Saxo Bank, GCI financial Limited, CMS forex and Gain capital. They provide free demos to the clients and offer twenty hour trading. Each company has its own specification and you choose out a broker keeping your priorities in mind.
There are over a thousand forex brokers in the market and to choose the best among them is a hectic task. A wrong move and you can be destroyed forever. They can build your career and at the same time destroy everything you have within a few period of time. Do not consider this a joke because there are dirty tricks played in the market by many brokers. Do not be a prey to such activities as it will end up ruining your life completely.
Make sure that your broker is honest, trust worthy and will not steal or do any other illegal activity. Always select a reputed broker who will efficiently take care of your accounts without any misdeeds.
The History And Beauty Of Agate
Agate is a semi-pellucid crystallized quartz, consisting of banded inclusions of chalcedony. Physical properties of agate are in general those of quartz.
Agate is found in all colors of the rainbow ranging from colorless to yellow, brown, purple, and pink. It also comes in blue and green but these colors are quite rare.
Cryptocrystalline quartz often displays exotic color bands, swirls, and other patterns.
The word Agate comes from the Greek "Agateeq" which means happy. Agate is the Ayurvedic Birthstone for May, the Hebrew Birthstone for May, the Roman Birthstone for May, the Arabic Birthstone for June, the Mystical Birthstone for September.
The sun Sign (Star Sign) for Aquarius, the Zodiac Birthstone for Gemini, the Talismanic Birthstone for Libra, and the Sun Sign (Star Sign) for Capricorn.
Moss Agate is also the anniversary gemstone for the 14th year of marriage.
Historical Agate is more than fossils; it is a cultural landscape that has evolved over millions of years and reflects many faucets; from early mammals which roamed the valleys to the nomadic nations of the plains.
Later tales followed of life in the American West which included tales relating to Agate.
Agate can be traced back to the Stone Age man in France 20,000-16,000 BC. The Egyptians used it prior to 3000 BC. Agate was highly valued by ancient civilizations as it was said to render the wearer invisible.
During the 1880s scientists rediscovered what the Lakota Sioux and others already knew about Agate. With the help of James and Kate Cook, the complex interactions between weather, mammals and the land would be studied by scientific field crews.
Agate has a hardness rating of 7 however, it will still chip and crack rather easily. It is important to protect agate from scratches, sharp blows, sudden temperature changes, household chemicals such as bleach or cleaning products.
Agate is said to have healing properties. Because it is a cooling stone, it reduces fever, quenches thirst, and is beneficial in the stomach area. Agate will also slow the pulse and quiet heart throbs.
It is said to insure good health combined with a long and prosperous life. It is also said that Agate has mystical powers.
Those wearing or carrying Agate will be guarded against danger, will become cautious, will be able to view themselves with clarity and view the world with a broad viewpoint.
Agate is believed to cure insomnia and to insure pleasant dreams.
Agate is a very affordable with the exception of some varieties with unusual banded or scenic markings.
Agate is found all over the world including Brazil, Nepal, Mexico, Africa, Egypt, Germany, India and Asia. It is also found in the USA, and Montana Agate is becoming recognized in the jewelry world.
Agate is found in all colors of the rainbow ranging from colorless to yellow, brown, purple, and pink. It also comes in blue and green but these colors are quite rare.
Cryptocrystalline quartz often displays exotic color bands, swirls, and other patterns.
The word Agate comes from the Greek "Agateeq" which means happy. Agate is the Ayurvedic Birthstone for May, the Hebrew Birthstone for May, the Roman Birthstone for May, the Arabic Birthstone for June, the Mystical Birthstone for September.
The sun Sign (Star Sign) for Aquarius, the Zodiac Birthstone for Gemini, the Talismanic Birthstone for Libra, and the Sun Sign (Star Sign) for Capricorn.
Moss Agate is also the anniversary gemstone for the 14th year of marriage.
Historical Agate is more than fossils; it is a cultural landscape that has evolved over millions of years and reflects many faucets; from early mammals which roamed the valleys to the nomadic nations of the plains.
Later tales followed of life in the American West which included tales relating to Agate.
Agate can be traced back to the Stone Age man in France 20,000-16,000 BC. The Egyptians used it prior to 3000 BC. Agate was highly valued by ancient civilizations as it was said to render the wearer invisible.
During the 1880s scientists rediscovered what the Lakota Sioux and others already knew about Agate. With the help of James and Kate Cook, the complex interactions between weather, mammals and the land would be studied by scientific field crews.
Agate has a hardness rating of 7 however, it will still chip and crack rather easily. It is important to protect agate from scratches, sharp blows, sudden temperature changes, household chemicals such as bleach or cleaning products.
Agate is said to have healing properties. Because it is a cooling stone, it reduces fever, quenches thirst, and is beneficial in the stomach area. Agate will also slow the pulse and quiet heart throbs.
It is said to insure good health combined with a long and prosperous life. It is also said that Agate has mystical powers.
Those wearing or carrying Agate will be guarded against danger, will become cautious, will be able to view themselves with clarity and view the world with a broad viewpoint.
Agate is believed to cure insomnia and to insure pleasant dreams.
Agate is a very affordable with the exception of some varieties with unusual banded or scenic markings.
Agate is found all over the world including Brazil, Nepal, Mexico, Africa, Egypt, Germany, India and Asia. It is also found in the USA, and Montana Agate is becoming recognized in the jewelry world.
Get Started Quickly on the Forex Market
If there is one thing that all of us having common, it is that we want to have things right now and do not necessarily want to have to wait for them. This is especially true whenever we are feeling rather urgent, as many of us are over the current economic situation. As a result of this urgency, many of us are ready to begin trading on the Forex market without delay.
Of course, getting involved in something as complex as the Forex market does take a little bit of time on your part and it would be a bad idea for you to jump right in, without knowing the basics. Although it would be impossible for us to teach you everything about the Forex market in a single article, we can teach you a few of the more important things that will help to get you up and running in no time.
The first thing that you need to understand about the Forex market is the fact that nobody has access to it directly. Even though you may be able to place your trades in real time, you are still doing so through a qualified broker. These brokers are the ones that are going to place any trades for you on the market, and it that is your first step, finding one that you would like to work with.
Often, it is necessary to work with these brokers indirectly through a Forex platform. These platforms give you access to the market so that you can trade in real time but behind them are a number of qualified brokers who are able to access the market for you. It gives you a feel as if you were trading yourself, but in reality it is just giving you access to what you need to be able to trade.
The good thing about working with these various Forex platforms is the fact that they often have a tutorial section which helps to guide you through the process. These tutorials are an excellent way for you to get used to trading or to begin trading, even if you have never done so before. Make sure that you look for a broker and Forex platform that is geared towards beginners.
Once you begin to get more comfortable with trading on the Forex market, you're going to want to increase the amount of trading that you do. One of the easiest ways for you to do this is to get one of the Forex system that is available. From partially automated to fully automated, these systems will help to make the everyday task that you have to do a little easier.
The absolute best thing that you can do for yourself is to take a little bit of time to learn before you jump in with both feet. The knowledge that you acquire is not only going to help you for the short term, it will help you to be successful for the long term.
Of course, getting involved in something as complex as the Forex market does take a little bit of time on your part and it would be a bad idea for you to jump right in, without knowing the basics. Although it would be impossible for us to teach you everything about the Forex market in a single article, we can teach you a few of the more important things that will help to get you up and running in no time.
The first thing that you need to understand about the Forex market is the fact that nobody has access to it directly. Even though you may be able to place your trades in real time, you are still doing so through a qualified broker. These brokers are the ones that are going to place any trades for you on the market, and it that is your first step, finding one that you would like to work with.
Often, it is necessary to work with these brokers indirectly through a Forex platform. These platforms give you access to the market so that you can trade in real time but behind them are a number of qualified brokers who are able to access the market for you. It gives you a feel as if you were trading yourself, but in reality it is just giving you access to what you need to be able to trade.
The good thing about working with these various Forex platforms is the fact that they often have a tutorial section which helps to guide you through the process. These tutorials are an excellent way for you to get used to trading or to begin trading, even if you have never done so before. Make sure that you look for a broker and Forex platform that is geared towards beginners.
Once you begin to get more comfortable with trading on the Forex market, you're going to want to increase the amount of trading that you do. One of the easiest ways for you to do this is to get one of the Forex system that is available. From partially automated to fully automated, these systems will help to make the everyday task that you have to do a little easier.
The absolute best thing that you can do for yourself is to take a little bit of time to learn before you jump in with both feet. The knowledge that you acquire is not only going to help you for the short term, it will help you to be successful for the long term.
Trading Forex - Australian Dollar Top
Over last few weeks, some of the strongest behaving currencies have experienced measurable corrections against US Dollar. After marking all time highs, Euro pulled back about 700 pips and Swiss Franc bounced almost 1000 pips, Japanese Yen lost 900 pips. Even high yielding New Zealand Dollar slipped from a high of over 0.8200 to just above 0.7600. These currencies have joined British Pound and Canadian Dollar, which reached their respective highs last year.
Looks like all major currencies have undergone some correction, in cross trading with USD. There is one notable exception- Australian Dollar. Contrary to others, AUD not only didn't loss ground, but managed to reached a new multi year high. As of this writing, mid May 2008, AUD-USD is at about 0.9560. While this is not an all time high, it is a highest level seen since early 1980's, or 25 years.
Why is that? Why is AUD acting so strong and is it sustainable? We can always discuss high commodities prices, but most likely reason is interest rate differential. Australian Dollar is probably the last "carry trade" currently under way. Reserve Bank of Australia raised its benchmark Cash Rate Target to 7.25% as recently as in March 2008. No other major central bank has done it this year. They are either cutting rates or staying put. Even Reserve Bank of New Zealand has not changed its rates since July 2007. Almost a year.
It is very unlikely, that Australian Central Bank will stay the course. One should expect a pause or even longer term halt in rates hike. No rate cuts are necessary, just a non action. Combined with projected softer prices of major commodities, that alone should be enough to see AUD retreat against USD and perhaps even all other majors. Especially if Crude Oil undergoes a long overdue price correction.
What is next? Should one go ahead and start shorting AUD? Not exactly. Picking the exact top ( or bottom for that matter) is considered by many a fool's game. We would expect to see some price acceleration just before the top. If recent moves in other currencies were any guide, we might witness 200-300 pips daily move to top off the run.
With current quotes of over 0.9500, it's not out of realm of possibility to see a price spike to parity or close to. That is extremely important psychological level. Whatever the ultimate top, it might come as soon as 2-3 weeks from now.
Instead of guessing where the top might happen, it would be more productive to place sell order just under recent low. At this writing that level is around 0.9300. Should the up move continue, 4H chart will provide better entry points, more exact. Daily and weekly charts indicate a probable move to 0.8600-0.8500, taking 6-8 moths to complete. If during this time USD proves that its recent strength is for real, our down target will be farther revised.
Current situation is very interesting and potentially presenting great trading opportunity. Even perennial USD bears, as most people seem to be these days, should recognize, that in decade long moves, there is room to be profitable on both side of the market. This just might be one of these times.
Looks like all major currencies have undergone some correction, in cross trading with USD. There is one notable exception- Australian Dollar. Contrary to others, AUD not only didn't loss ground, but managed to reached a new multi year high. As of this writing, mid May 2008, AUD-USD is at about 0.9560. While this is not an all time high, it is a highest level seen since early 1980's, or 25 years.
Why is that? Why is AUD acting so strong and is it sustainable? We can always discuss high commodities prices, but most likely reason is interest rate differential. Australian Dollar is probably the last "carry trade" currently under way. Reserve Bank of Australia raised its benchmark Cash Rate Target to 7.25% as recently as in March 2008. No other major central bank has done it this year. They are either cutting rates or staying put. Even Reserve Bank of New Zealand has not changed its rates since July 2007. Almost a year.
It is very unlikely, that Australian Central Bank will stay the course. One should expect a pause or even longer term halt in rates hike. No rate cuts are necessary, just a non action. Combined with projected softer prices of major commodities, that alone should be enough to see AUD retreat against USD and perhaps even all other majors. Especially if Crude Oil undergoes a long overdue price correction.
What is next? Should one go ahead and start shorting AUD? Not exactly. Picking the exact top ( or bottom for that matter) is considered by many a fool's game. We would expect to see some price acceleration just before the top. If recent moves in other currencies were any guide, we might witness 200-300 pips daily move to top off the run.
With current quotes of over 0.9500, it's not out of realm of possibility to see a price spike to parity or close to. That is extremely important psychological level. Whatever the ultimate top, it might come as soon as 2-3 weeks from now.
Instead of guessing where the top might happen, it would be more productive to place sell order just under recent low. At this writing that level is around 0.9300. Should the up move continue, 4H chart will provide better entry points, more exact. Daily and weekly charts indicate a probable move to 0.8600-0.8500, taking 6-8 moths to complete. If during this time USD proves that its recent strength is for real, our down target will be farther revised.
Current situation is very interesting and potentially presenting great trading opportunity. Even perennial USD bears, as most people seem to be these days, should recognize, that in decade long moves, there is room to be profitable on both side of the market. This just might be one of these times.
Learning About Forex Currency Trading - Where So Many Go Wrong
It's certainly no secret that there are a lot of traders who want to learn the right way to trade the forex market. They envision themselves (like a lot of other people) working from home and finally getting rid of that job they can't stand.
This is exactly the same reason I got started in forex trading. I hated my 9 to 5 job and I was hearing from people all over the internet, that they were making a fortune trading the forex market.
Well, if this describes your current situation, I just want to tell you something from the get go. There are a lot of people who like to flap their gums, but very few actually can back up what they say.
You know this is the case because over 95% of people who trade the forex market are losing money.
If there are so many people losing money, then does that mean that forex trading is difficult? Well....not necessarily.
The problem that most people have is that they don't really take the time needed to actually learn how to trade properly. Instead we live in times where people are just constantly searching for one shortcut to the next. When traders do this, they are essentially gambling, instead of trading.
You can tell by the terminology a lot of new traders use. You'll notice use the phrase "playing", instead of investing or trading, as in "how much are you playing with". It really goes to show the kind of mindset many traders have.
Many traders want all the work to be done for them, that's why you have traders spending way too much on needless charting packages. They think the more expensive the software, the better the chances of success. Well.....that's not the way it works.
If it did, then 95% of traders wouldn't be losing money, if it was that simple.
This is exactly the same reason I got started in forex trading. I hated my 9 to 5 job and I was hearing from people all over the internet, that they were making a fortune trading the forex market.
Well, if this describes your current situation, I just want to tell you something from the get go. There are a lot of people who like to flap their gums, but very few actually can back up what they say.
You know this is the case because over 95% of people who trade the forex market are losing money.
If there are so many people losing money, then does that mean that forex trading is difficult? Well....not necessarily.
The problem that most people have is that they don't really take the time needed to actually learn how to trade properly. Instead we live in times where people are just constantly searching for one shortcut to the next. When traders do this, they are essentially gambling, instead of trading.
You can tell by the terminology a lot of new traders use. You'll notice use the phrase "playing", instead of investing or trading, as in "how much are you playing with". It really goes to show the kind of mindset many traders have.
Many traders want all the work to be done for them, that's why you have traders spending way too much on needless charting packages. They think the more expensive the software, the better the chances of success. Well.....that's not the way it works.
If it did, then 95% of traders wouldn't be losing money, if it was that simple.
How to Use the Best Forex Trading Indicators to Your Advantage
Having the correct tools and best FOREX trading indicators on your side will increase your chances in succeeding in this financial trading market. Let us look at how we can understand and analyze better how to use these tools to our advantage.
We will make it clear first that there is no single trading indicator that will work every single time. It usually takes a combination of two or several indicators for you to come up with a proper strategy to increase your chances of success in trading.
Trends in the FOREX market are usually easy to understand by looking at figures that go up and down in simple charts. They can paint a picture that would be simple for us to visualize from afar what currencies have a better potential for income than others at a certain point in time.
Apart from knowing that, here are some trading indicators that can lead you to a greater advantage by learning how to understand them.
Simple Moving Averages is one indicator that is very useful. It is taken from a certain period of closing prices of currencies that are then summed up and divided by the total amount of periods. In other words, it is the average price of a certain period for a currency.
Bollinger Bands can help by showing the volatility in the market trends. They are labels or tags that show when a currency or commodity has reached an overbought or an oversold level. They can show you assumed lowest levels for you to purchase or the highest levels of the trend to show the best time to sell, and at the same time, show all the deviations of the market flow toward that commodity or currency.
Aided with these, a proper stage for timing must be set. Just bear in mind that you should never try to predict a move and should use your market indicators to get the proper timing.
Good indicators to help you with timing are the RSI or Relative Strength Index and the stochastic. The RSI shows you oscillations of time entries for existing trends, usually preferred in 9-day, 14-day, and 25-day RSI's. The stochastic, on the other hand, has crossovers to help show any movement that you look at by showing contrasting trades between the bullish and bearish divergence from oversold and overbought areas - all against the current currency trend.
Although each indicator has an advantage in a particular area, no single one may be a preferred standout choice. These indicators are the best FOREX trading indicators there are available today but must be blended depending on instance, to create the best market trading strategy for you.
We will make it clear first that there is no single trading indicator that will work every single time. It usually takes a combination of two or several indicators for you to come up with a proper strategy to increase your chances of success in trading.
Trends in the FOREX market are usually easy to understand by looking at figures that go up and down in simple charts. They can paint a picture that would be simple for us to visualize from afar what currencies have a better potential for income than others at a certain point in time.
Apart from knowing that, here are some trading indicators that can lead you to a greater advantage by learning how to understand them.
Simple Moving Averages is one indicator that is very useful. It is taken from a certain period of closing prices of currencies that are then summed up and divided by the total amount of periods. In other words, it is the average price of a certain period for a currency.
Bollinger Bands can help by showing the volatility in the market trends. They are labels or tags that show when a currency or commodity has reached an overbought or an oversold level. They can show you assumed lowest levels for you to purchase or the highest levels of the trend to show the best time to sell, and at the same time, show all the deviations of the market flow toward that commodity or currency.
Aided with these, a proper stage for timing must be set. Just bear in mind that you should never try to predict a move and should use your market indicators to get the proper timing.
Good indicators to help you with timing are the RSI or Relative Strength Index and the stochastic. The RSI shows you oscillations of time entries for existing trends, usually preferred in 9-day, 14-day, and 25-day RSI's. The stochastic, on the other hand, has crossovers to help show any movement that you look at by showing contrasting trades between the bullish and bearish divergence from oversold and overbought areas - all against the current currency trend.
Although each indicator has an advantage in a particular area, no single one may be a preferred standout choice. These indicators are the best FOREX trading indicators there are available today but must be blended depending on instance, to create the best market trading strategy for you.
Forex - An International Online Currency Exchange Amazing World Full of Secrets
Forex is an international online currency exchange that was established in 1971. It is now the premier foreign currency exchange market in the world, with an average daily trading volume reaching as high as one and a half trillion. Forex is a true, established 24-hour market, which offers a major advantage over stock and futures trading. Forex trading begins each day in Sydney, then moves around the globe to Tokyo, London, and finally New York. Forex is a great way to make quick money online. You just have to know the basic skills for trading and you will be on your way to making money at home.
Forex is currently one of the most popular trading industries on the market, which sometimes forex is known as FX, or currency exchange. Forex involves the process of selling pairs of currencies, or else buying pairs of currencies in units. FOREX is a market where the value of individual currencies from all over the world are traded. Forex is an international market that buys and sells currencies of the world; the mechanisms of the marketplace are very similar to that of other markets such as the stock market. The purpose is to buy low and sell high to maximize profits.
Forex is no different than anything else, the few people "in the know" make money and the rest are hung out to dry. Some public investors jump into Forex as they see the opportunity like the bright lights of the Vegas strip. Forex is online currency trading or online foreign exchange. FOREX is huge business. In our opinion, It's the mamma of all industries.
FOREX is a highly profitable business which doesn't depend on time, place or political situation in your country. The main FOREX advantage is that you perform operations using computer from any part of the world 24 hours per day 5 days per week. Forex is also dictated at times by speculation of dealers, brokers, or others. What they predict becomes a major influence on forex. Forex is the largest and most liquid market in the world where around three trillion dollars exchange take place every day. That?s an enormous money flow.
Forex is here to walk you through the steps to set up an account and start making money right now on the foreign exchange market. Forex is foreign exchange market where large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions buy or sell one currency for another. Buyers seek to buy at the lowest vailable price and sellers seek to sell at the highest available price. Forex is the worldwide market for buying and selling currencies. These markets were developed to cater for the supply and demand of different currencies by governments, companies and individuals - for international trade and assisting importers and exporters.
Forex is known for its ability to adapt to the strong demand of real-time information as markets move instantaneously. The robustness of its platform is also key to its ability to answer heavy data and information traffic. Forex is made up of 5000 trading institutions like international banks, commercial companies, government banks and brokers for all types of foreign currency exchange. Forex is not affected by any one bear market. Forex traders buy and sell foreign currency pairs from around the world, simultaneously buying one and selling the other.
Forex is currently one of the most popular trading industries on the market, which sometimes forex is known as FX, or currency exchange. Forex involves the process of selling pairs of currencies, or else buying pairs of currencies in units. FOREX is a market where the value of individual currencies from all over the world are traded. Forex is an international market that buys and sells currencies of the world; the mechanisms of the marketplace are very similar to that of other markets such as the stock market. The purpose is to buy low and sell high to maximize profits.
Forex is no different than anything else, the few people "in the know" make money and the rest are hung out to dry. Some public investors jump into Forex as they see the opportunity like the bright lights of the Vegas strip. Forex is online currency trading or online foreign exchange. FOREX is huge business. In our opinion, It's the mamma of all industries.
FOREX is a highly profitable business which doesn't depend on time, place or political situation in your country. The main FOREX advantage is that you perform operations using computer from any part of the world 24 hours per day 5 days per week. Forex is also dictated at times by speculation of dealers, brokers, or others. What they predict becomes a major influence on forex. Forex is the largest and most liquid market in the world where around three trillion dollars exchange take place every day. That?s an enormous money flow.
Forex is here to walk you through the steps to set up an account and start making money right now on the foreign exchange market. Forex is foreign exchange market where large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions buy or sell one currency for another. Buyers seek to buy at the lowest vailable price and sellers seek to sell at the highest available price. Forex is the worldwide market for buying and selling currencies. These markets were developed to cater for the supply and demand of different currencies by governments, companies and individuals - for international trade and assisting importers and exporters.
Forex is known for its ability to adapt to the strong demand of real-time information as markets move instantaneously. The robustness of its platform is also key to its ability to answer heavy data and information traffic. Forex is made up of 5000 trading institutions like international banks, commercial companies, government banks and brokers for all types of foreign currency exchange. Forex is not affected by any one bear market. Forex traders buy and sell foreign currency pairs from around the world, simultaneously buying one and selling the other.
Advantage Trading Forex
The forex market has several advantages, which make it an ideal trading market for many people who do or do not have any knowledge of other markets. It takes only a short tutorial to have you playing like a pro. In addition, the forex market is fast. The prices can go up and down several times a day, and there is no end to the combinations that you can get. In addition, in time, with the proper training, you can become a professional Forex trader and even help other people come into the exciting world of Forex. What is best of all is that the Forex trading market is today the biggest market in the world, and there is no end to the number of trades and transactions that you can make. Advantage of the Online Forex Spot Transactions
The Forex spot market has a huge advantage because after you see a price of a certain currency on your computer screen, you can immediately buy or sell that currency and get the current price for your trade. This gives you a spot on connection to the online Forex market, and you are sure that you are not missing anything, because it's real time.
The fact that the online Forex spot market is concurrent, allows for the many trades to take place each day, and eventually is one of the reasons why the online Forex market is a very quick option to make money. Unlike the regular stock market, the Forex market is much more dynamic, so you don't have to sit and wait for changes in your stock. You can view your currency on the spot, and if you don't like it from one minute to the next, you can go and sell it immediately and not suffer any unnecessary losses.
Accordingly, once you have noticed that the currency you invested in has risen enough, and is saturated, you can decide to sell it and reap the profits. The Forex spot market is seen in it's real time glory through the charts offered by technical analysis, so you can view the dynamics by yourself.
Trend lines
The basic trend line is one of the simplest of the technical tools employed by the chartist, but by any standard the most powerful and valuable tool in trading. The trend line is constructed when there are three higher or lower points to be connected. This forms a channel which the price action can be monitored. As discussed, one of the obvious presumptions derived from chart studies is that prices have a prevailing tendency to move in a particular direction. This trend frequently assumes a definition pattern which evolves along a straight line. This ability of prices to adhere extremely close to an imaginary straight line is one of the most extraordinary characteristics of chart movements.
Drawing a Trend line
The correct drawing of trend lines is an art like every other aspect of charting and some experimenting with different lines is usually necessary to find the right one. Sometimes a trend line which appears to be correct may have to be redrawn. With practice, the art of drawing trend lines becomes easier, but initially there are some useful guidelines in the search for the correct one. There must be evidence of a trend. This means that, for an up trend line to be drawn there must be at least two reaction lows with the second low higher than the first. Once two ascending lows have been identified, a straight line is drawn connecting the lows and projected up and to the right. Once the third point has been confirmed and the trend proceeds in its original direction, the trend line becomes very useful in a variety of ways. One of the basic concepts of technical analysis is that a trend in motion will tend to stay in motion. Therefore, once a trend assumes a particular slope or a rate of speed, as identified by the trend line, then it usually maintains the same slope. The trend line then helps not only to determine the extremities of the corrective phases but also importantly, when that trend is changing. Very often the breaking of the trend line is one of the best early warnings of a change in trend.
The Significance of the Trend line
It is very important to discuss how to determine the significance of a trend line. In every market and on every chart you see there are many trends in motions, short term, mid term, long terms, hourly and so on. However, not all these trends will be significantly strong. If they are not, a trader runs the risk of entering or exiting the market at the wrong time. The more significant a trend line, the more confidence it inspires and the more important its penetration. There are two factors that determine the significance of a trend line. Firstly, the length of time it has been intact, and secondly how many times it has been tested. A trend line that the market has tested 8 times for example, but keeps pushing the price away, is obviously a more significant trend line than one that has only been tested twice. As a rough estimate after the third bounce off the trend line will be when the market will start to offer trading signals. Similarly, a trend line that has been intact for the last 9 months is of more importance than one that has been intact for 9 weeks. There is no standard as to what duration one needs to wait before relying on the trend, as some trends will only stay in motion for short periods of time. To catch these, you have to use the time in conjunction with the testing of the line.
Support and Resistance
Support and resistance levels are ones of the most basic but essential components of technical analysis. Support and resistance are price areas where an abundance of trading has taken place and where considerable buying or selling pressure exists. Underlying support (buying pressure) keeps a market in an uptrend, and overhead resistance (selling pressure) keeps a market trending lower. Once a trader can accurately determine where these levels are, they can be used very effectively to manage risk, and identify profit opportunities. By entering trades at price levels at which a significant move is likely, the probability or reward over risk is improved. There are support and resistance levels that are applicable to every traders time frame. Observing how the market reacts when encountering these levels is a very good barometer to measure the strength of the underlying trend. They are also key points for breakout moves. Large quantities of stop loss orders will usually accumulate at key support and resistance areas and will often contribute to a dramatic surge in the market in the direction of the breakout once these areas have been penetrated.
Support Levels
A support level is a price area at which there should be an increase in the demand for that product. A support area is not difficult to find in a chart. When the market is in an uptrend, any previously established congestion area is the uptrend is usually an area of support. To draw a support line you need to find at least 2 points on the chart that adhere to this criteria. This then forms a line that can be extended across the chart.
When a support area is penetrated on the downside, it then may become the nearest resistance area to a subsequent advance.
Resistance Levels
A resistance level is a price area characterised by increased selling pressure or increased supply of a particular investment product which tends to level off advances. If the market is in an uptrend, any point at which new highs are reached or any congestion on the upside will act as resistance. To draw a resistance line you need to find at least 2 points on the chart which adhere to this criterion. This then forms a line which can be extended across the chart.
When a resistance area is penetrated on the upside, it may become then the nearest support area to any subsequent decline.
The Forex spot market has a huge advantage because after you see a price of a certain currency on your computer screen, you can immediately buy or sell that currency and get the current price for your trade. This gives you a spot on connection to the online Forex market, and you are sure that you are not missing anything, because it's real time.
The fact that the online Forex spot market is concurrent, allows for the many trades to take place each day, and eventually is one of the reasons why the online Forex market is a very quick option to make money. Unlike the regular stock market, the Forex market is much more dynamic, so you don't have to sit and wait for changes in your stock. You can view your currency on the spot, and if you don't like it from one minute to the next, you can go and sell it immediately and not suffer any unnecessary losses.
Accordingly, once you have noticed that the currency you invested in has risen enough, and is saturated, you can decide to sell it and reap the profits. The Forex spot market is seen in it's real time glory through the charts offered by technical analysis, so you can view the dynamics by yourself.
Trend lines
The basic trend line is one of the simplest of the technical tools employed by the chartist, but by any standard the most powerful and valuable tool in trading. The trend line is constructed when there are three higher or lower points to be connected. This forms a channel which the price action can be monitored. As discussed, one of the obvious presumptions derived from chart studies is that prices have a prevailing tendency to move in a particular direction. This trend frequently assumes a definition pattern which evolves along a straight line. This ability of prices to adhere extremely close to an imaginary straight line is one of the most extraordinary characteristics of chart movements.
Drawing a Trend line
The correct drawing of trend lines is an art like every other aspect of charting and some experimenting with different lines is usually necessary to find the right one. Sometimes a trend line which appears to be correct may have to be redrawn. With practice, the art of drawing trend lines becomes easier, but initially there are some useful guidelines in the search for the correct one. There must be evidence of a trend. This means that, for an up trend line to be drawn there must be at least two reaction lows with the second low higher than the first. Once two ascending lows have been identified, a straight line is drawn connecting the lows and projected up and to the right. Once the third point has been confirmed and the trend proceeds in its original direction, the trend line becomes very useful in a variety of ways. One of the basic concepts of technical analysis is that a trend in motion will tend to stay in motion. Therefore, once a trend assumes a particular slope or a rate of speed, as identified by the trend line, then it usually maintains the same slope. The trend line then helps not only to determine the extremities of the corrective phases but also importantly, when that trend is changing. Very often the breaking of the trend line is one of the best early warnings of a change in trend.
The Significance of the Trend line
It is very important to discuss how to determine the significance of a trend line. In every market and on every chart you see there are many trends in motions, short term, mid term, long terms, hourly and so on. However, not all these trends will be significantly strong. If they are not, a trader runs the risk of entering or exiting the market at the wrong time. The more significant a trend line, the more confidence it inspires and the more important its penetration. There are two factors that determine the significance of a trend line. Firstly, the length of time it has been intact, and secondly how many times it has been tested. A trend line that the market has tested 8 times for example, but keeps pushing the price away, is obviously a more significant trend line than one that has only been tested twice. As a rough estimate after the third bounce off the trend line will be when the market will start to offer trading signals. Similarly, a trend line that has been intact for the last 9 months is of more importance than one that has been intact for 9 weeks. There is no standard as to what duration one needs to wait before relying on the trend, as some trends will only stay in motion for short periods of time. To catch these, you have to use the time in conjunction with the testing of the line.
Support and Resistance
Support and resistance levels are ones of the most basic but essential components of technical analysis. Support and resistance are price areas where an abundance of trading has taken place and where considerable buying or selling pressure exists. Underlying support (buying pressure) keeps a market in an uptrend, and overhead resistance (selling pressure) keeps a market trending lower. Once a trader can accurately determine where these levels are, they can be used very effectively to manage risk, and identify profit opportunities. By entering trades at price levels at which a significant move is likely, the probability or reward over risk is improved. There are support and resistance levels that are applicable to every traders time frame. Observing how the market reacts when encountering these levels is a very good barometer to measure the strength of the underlying trend. They are also key points for breakout moves. Large quantities of stop loss orders will usually accumulate at key support and resistance areas and will often contribute to a dramatic surge in the market in the direction of the breakout once these areas have been penetrated.
Support Levels
A support level is a price area at which there should be an increase in the demand for that product. A support area is not difficult to find in a chart. When the market is in an uptrend, any previously established congestion area is the uptrend is usually an area of support. To draw a support line you need to find at least 2 points on the chart that adhere to this criteria. This then forms a line that can be extended across the chart.
When a support area is penetrated on the downside, it then may become the nearest resistance area to a subsequent advance.
Resistance Levels
A resistance level is a price area characterised by increased selling pressure or increased supply of a particular investment product which tends to level off advances. If the market is in an uptrend, any point at which new highs are reached or any congestion on the upside will act as resistance. To draw a resistance line you need to find at least 2 points on the chart which adhere to this criterion. This then forms a line which can be extended across the chart.
When a resistance area is penetrated on the upside, it may become then the nearest support area to any subsequent decline.
3 Forex Trading Tips
When looking for forex trading tips there is a lot of information out there to consider and it can be difficult to navigate the waters and find someone you can really trust. With this in mind, this article has gathered some of the best forex trading tips to share with you in an easy to understand way for the best results. One of the biggest things to remember is that knowledge truly is power. The more you know about forex trading, the more in control of your trading you can be. When you first start trading online, take the time to read through everything and get a real grasp on how the system works and when is the most beneficial times to trade and how.
1. You also want to gauge your risk level, if you are a trader who sets tight orders, works with small increments, or puts inflexible stop orders on your trading then you are not going to get the full range of benefits from forex trading. You need to be able to relax a little and let the market do what it will before you freak out and change everything. The best times to trade in forex trading is during its most volatile times, not the safe quiet times. This takes a little grit on the part of the trader, but is crucial to make the real profit margins you are looking for instead of nickel and dime profits.
2. Another great benefit of trading forex is the small margins and while an experienced trader can use this to their advantage since they are able to trade amounts larger than their deposits total, a novice can easily get carried away and get in trouble using this tactic. A good rule of thumb is to increase your leverage as your experience increases.
3. Never trade without some sort of strategy. You aren't expected to be able to predict the future, no one can, nor know what is going to happen with each trade you make, but you should have a goal in mind and a plan of action that can reasonably get you to that goal. Also avoid trading during off-peak hours, this may seem like the best thing to do, but it's not and unless you are extremely experienced with forex trading it won't work to your benefit.
In the short run, the biggest forex trading tip there is to be successful is to know what you are doing. Take the time to learn how forex trading works and if you are insecure in your trading, get the help of a broker or at least talk with independent traders who have been using forex for awhile. Then develop a strategy and follow the simple tactics above to learn how to successfully take part in forex trading.
1. You also want to gauge your risk level, if you are a trader who sets tight orders, works with small increments, or puts inflexible stop orders on your trading then you are not going to get the full range of benefits from forex trading. You need to be able to relax a little and let the market do what it will before you freak out and change everything. The best times to trade in forex trading is during its most volatile times, not the safe quiet times. This takes a little grit on the part of the trader, but is crucial to make the real profit margins you are looking for instead of nickel and dime profits.
2. Another great benefit of trading forex is the small margins and while an experienced trader can use this to their advantage since they are able to trade amounts larger than their deposits total, a novice can easily get carried away and get in trouble using this tactic. A good rule of thumb is to increase your leverage as your experience increases.
3. Never trade without some sort of strategy. You aren't expected to be able to predict the future, no one can, nor know what is going to happen with each trade you make, but you should have a goal in mind and a plan of action that can reasonably get you to that goal. Also avoid trading during off-peak hours, this may seem like the best thing to do, but it's not and unless you are extremely experienced with forex trading it won't work to your benefit.
In the short run, the biggest forex trading tip there is to be successful is to know what you are doing. Take the time to learn how forex trading works and if you are insecure in your trading, get the help of a broker or at least talk with independent traders who have been using forex for awhile. Then develop a strategy and follow the simple tactics above to learn how to successfully take part in forex trading.
What's Forex?
"Forex" stands for foreign exchange; it's also known as FX. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. The foreign exchange market is an over-the-counter market. Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for forex. All transactions happen via phone or electronic network. Who trades currencies, and why? Daily turnover in the world's currencies comes from two sources:
Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.
Speculation for profit (95%). Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs. 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.
Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.
Speculation for profit (95%). Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs. 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.
A Simple Guide to Forex Quotes
The currency trading market is attracting an increasing number of aspiring traders these days. With good money to be made, it is not surprising that this lucrative field is being chosen as a career option by many young men and women nowadays. For any beginner getting to know forex quotes could be a real challenge. Knowing them is important since this knowledge would form the critical component when it comes to devising a winning strategy. It is therefore important for anyone aspiring to become a leading trader to get to know everything about these quotes.
In order to find out which currency is involved in the trading, you should look at the first part of the quote. The base currency is the one which belongs to the nation that is listed first . What this means is that the trader is holding this particular currency and is using it to buy the trade or quote currency. Beginners are always advised to get themselves thoroughly well versed with reading forex quotes before they begin to trade in a full fledged manner. In fact, many experienced traders always advise beginners' to begin with small accounts for this very reason. With smaller accounts they can learn the ropes of the trade, getting well versed with the various aspects of the forex market, without having to worry about losing money.
If you were to go through forex trading platforms you will find that there are more than sixty currencies listed on them. In a vast majority of cases, you can find the combinations of Japanese Yen, US Dollar, Euro, Swiss Franc, Australian Dollar and Canadian Dollar. Anyone trying to make it big in the forex market should know thoroughly about these six currencies, since they are considered the most important. These currencies are known to be historically the most stable ones in the whole world. This is what makes them so crucial when it comes to learning about forex quotes.
In order to find out which currency is involved in the trading, you should look at the first part of the quote. The base currency is the one which belongs to the nation that is listed first . What this means is that the trader is holding this particular currency and is using it to buy the trade or quote currency. Beginners are always advised to get themselves thoroughly well versed with reading forex quotes before they begin to trade in a full fledged manner. In fact, many experienced traders always advise beginners' to begin with small accounts for this very reason. With smaller accounts they can learn the ropes of the trade, getting well versed with the various aspects of the forex market, without having to worry about losing money.
If you were to go through forex trading platforms you will find that there are more than sixty currencies listed on them. In a vast majority of cases, you can find the combinations of Japanese Yen, US Dollar, Euro, Swiss Franc, Australian Dollar and Canadian Dollar. Anyone trying to make it big in the forex market should know thoroughly about these six currencies, since they are considered the most important. These currencies are known to be historically the most stable ones in the whole world. This is what makes them so crucial when it comes to learning about forex quotes.
Keys to Using the Forex MegaDroid Robot
The Forex investment marketplace can be both an easy place to earn money trading in foreign currency, but also a complex and formidable investment area. Many people have been able to have great success with Forex trading, while others struggle and eventually give up. Forex trading is a complex series of trades in foreign currency's value against another nation's currency. The big thing in Forex trading is that there is no time limit. You can easily make trades any time during the day or night. Unfortunately, that is also one of the problems.
If you don't know what to look for, or know when the peak times of the day are for trading, you could be selling your currency too soon, or have already missed out on an earlier trade. To combat this, many traders are making use of Forex robots, like the Forex MegaDroid Robot, to help automate some of their trading. Like all investment software, there are some do's and don'ts to using this type of Forex robot.
1. Know How To Use It
Before you begin attempt any type of Forex trades with any trading robot you will want to make sure you know how to use it correctly. Even if you have used a different Forex robot before, many of them have little differences that you will want to know about before using it.
A great place to really learn about how to use the robot is if the company you bought if from has an online discussion forum for the people who have purchased their software. Participate on these forums and you can learn a great deal.
2. Learn How To Integrate With Your Broker
Every Forex trader has to make trades through a Forex broker house. You can make your own trades, but the buying and selling of the currency pairs have to go through a bank or broker house. Learn how to set up the robot; software like Forex MegaDroid Robot makes this simple, with your broker so you can easily make trades from the robot.
3. Learn The Peak Selling Times
The most useful aspect of using a Forex trading robot is for it to be able to make trades for you when you are not there. It can automatically buy or sell when certain limits are met. You can also set it to look for certain things during the peak times of trading if you can't be there for the actual trades.
4. Learn How To Read It
When certain conditions are met within the market the Forex robot will let you know when you should buy or sell the currency you are holding. Knowing how to read the charts, and diagrams, that are associated with the software will help you to see trends, and even see when to buy before the software.
Using a Forex robot, much like Forex MegaDroid Robot, will help you to keep track of your trades, and even help you make trades when you are not there. It is not a set up and forget type software, but is a tremendous value to any Forex trader.
Plan and decide carefully what Forex Trading System you choose to work with.
If you don't know what to look for, or know when the peak times of the day are for trading, you could be selling your currency too soon, or have already missed out on an earlier trade. To combat this, many traders are making use of Forex robots, like the Forex MegaDroid Robot, to help automate some of their trading. Like all investment software, there are some do's and don'ts to using this type of Forex robot.
1. Know How To Use It
Before you begin attempt any type of Forex trades with any trading robot you will want to make sure you know how to use it correctly. Even if you have used a different Forex robot before, many of them have little differences that you will want to know about before using it.
A great place to really learn about how to use the robot is if the company you bought if from has an online discussion forum for the people who have purchased their software. Participate on these forums and you can learn a great deal.
2. Learn How To Integrate With Your Broker
Every Forex trader has to make trades through a Forex broker house. You can make your own trades, but the buying and selling of the currency pairs have to go through a bank or broker house. Learn how to set up the robot; software like Forex MegaDroid Robot makes this simple, with your broker so you can easily make trades from the robot.
3. Learn The Peak Selling Times
The most useful aspect of using a Forex trading robot is for it to be able to make trades for you when you are not there. It can automatically buy or sell when certain limits are met. You can also set it to look for certain things during the peak times of trading if you can't be there for the actual trades.
4. Learn How To Read It
When certain conditions are met within the market the Forex robot will let you know when you should buy or sell the currency you are holding. Knowing how to read the charts, and diagrams, that are associated with the software will help you to see trends, and even see when to buy before the software.
Using a Forex robot, much like Forex MegaDroid Robot, will help you to keep track of your trades, and even help you make trades when you are not there. It is not a set up and forget type software, but is a tremendous value to any Forex trader.
Plan and decide carefully what Forex Trading System you choose to work with.
Forex EA (Software Program) Reviews
Forex software programs (or Expert Advisors) are scripts written in MQL4. These scripts control the trading functions of an account. They can be set to live or to demo, whichever the user opts for, and can essentially take care of the trading for the user. Basically what this allows is a user/trader to access his strategy based on historical evidence, and then apply the strategy to the active market. The beauty of the program application to trading is this: it is tireless, and your nerves will not take the beating they most certainly would if you were to apply the strategy manually. On top of that, the program trades strictly based on the strategy. Any long time trader will tell you the most difficult part of trading is not so much defining a strategy, it is sitting on one's hands until the conditions met by the strategy unfold.
The trading climate is chaotic. I have a strategy that trades about forty times per month. That strategy, you would think, would enter the market twice per day. (Forex markets are open 24 hours a day, but closed on the weekends). But what I see time and again is that the trades come in blocks. Certain days have four trades, while certain weeks have one trade. My criteria for entry is strict, and my trades generally are held for 3-4 hours. That said, the market goes through a variety of fluctuations, and forex trading programs can ride out the market variations that don't speak to the trader's knowledge. This is by far the strongest argument for moving away from manual trading and toward a completely automated trading platform. It takes the discipline of a chess master to sit on one's hands throughout an ENTIRE TRADING session without placing a trade. Because of this I moved toward building my own programs.
When I chose to build programs I had absolutely no experience in programming or coding. None. I started by purchasing a tutorial book. It took nearly a year to work itself out. I blew plenty of money and time trying to condition my approach to fit my programming limitations. If I were to do it again I'd purchase one of the three programs below.
Here's why: what you'll do by simply observing these simple and sometimes effective trading programs is begin to understand the limitations of any approach. Technical analysis is not a pure science. You're dealing with something that in many ways can be considered a meta-science. Observation is the keenest form of study when it comes to technical analysis. By breaking down the structure of the program you've purchases, you'll better understand the variety of methods at play. These are three industry standards. Again, do not expect to place 2k into an account, turn the EA on and watch the money grow exponentially. You may make money. You may lose money. But if you're smart, you'll learn valuable lessons day in and day out. Don't bother visiting a million forums to see who's made three billion with what program. Again, all nonsense. Nobody would sell a billion dollar winning program for $129. But they will offer you a program that can offer insight.
If you're seriously in the market for one of these, don't spend the rest of your day guessing over which name or campaign seems best. Simply go with your gut if you want to give this a try. Before long you'll have created your own personalized EA. Good luck to you!
The trading climate is chaotic. I have a strategy that trades about forty times per month. That strategy, you would think, would enter the market twice per day. (Forex markets are open 24 hours a day, but closed on the weekends). But what I see time and again is that the trades come in blocks. Certain days have four trades, while certain weeks have one trade. My criteria for entry is strict, and my trades generally are held for 3-4 hours. That said, the market goes through a variety of fluctuations, and forex trading programs can ride out the market variations that don't speak to the trader's knowledge. This is by far the strongest argument for moving away from manual trading and toward a completely automated trading platform. It takes the discipline of a chess master to sit on one's hands throughout an ENTIRE TRADING session without placing a trade. Because of this I moved toward building my own programs.
When I chose to build programs I had absolutely no experience in programming or coding. None. I started by purchasing a tutorial book. It took nearly a year to work itself out. I blew plenty of money and time trying to condition my approach to fit my programming limitations. If I were to do it again I'd purchase one of the three programs below.
Here's why: what you'll do by simply observing these simple and sometimes effective trading programs is begin to understand the limitations of any approach. Technical analysis is not a pure science. You're dealing with something that in many ways can be considered a meta-science. Observation is the keenest form of study when it comes to technical analysis. By breaking down the structure of the program you've purchases, you'll better understand the variety of methods at play. These are three industry standards. Again, do not expect to place 2k into an account, turn the EA on and watch the money grow exponentially. You may make money. You may lose money. But if you're smart, you'll learn valuable lessons day in and day out. Don't bother visiting a million forums to see who's made three billion with what program. Again, all nonsense. Nobody would sell a billion dollar winning program for $129. But they will offer you a program that can offer insight.
If you're seriously in the market for one of these, don't spend the rest of your day guessing over which name or campaign seems best. Simply go with your gut if you want to give this a try. Before long you'll have created your own personalized EA. Good luck to you!
Spotting Brilliant Forex Systems
In all honesty, you and I know that there are a lot of scams out there when it comes to Forex systems. Hundreds of experts and so called mathematical geniuses out there will collaborate on a daily basis to make a product that is really good, sell it as the next best thing since sliced bread and all you will be ending up with is a dud that makes about as much money as mouldy potatoes. It is these products that give the real gems out here a bad name, and you need to be able to spot brilliant Forex systems a mile away.
For one thing, there is no such thing as a system that can make you thousands on a daily basis. If that was the case, the person who made this system would be charging you at least $10, 000 - $15, 000 a month to use the system. And there are systems like these, but these are formulated, up kept and improved on by banks and massive financial organisations who are making 30 - 40x what they are investing on these systems. So, to make x amount, you need to come out y. So a $49.90 system cannot make you $14, 000 a month. In fact, it would struggle to make you a tenth of that amount for a start.
So, do you now see the disparity in the whole situation? Anything worth his lout as a Forex systems expert author would not make promises he cannot and will not be able to keep. It is up to him to maintain his reputation as someone who is able to come out with good systems. In fact, he will not advertise so much, but use the power of word of mouth to come out with his marketing strategy. He will also take the personal approach in plenty of his marketing, because his or her clients will be the one paying top dollar for his system.
But do not get me wrong - there are plenty of good to medium level systems out there who can make you money. Not lots of money. But some money. In fact, the whole concept of the good Forex system is that one is attached to a single account, or one system will take over a few accounts. That is the only way that you can make money. It has to be a constant cycle of investment into a system and using it to generate income and so on and so forth.
Not one can do the job, but plenty working together can do this. Good systems are those that have been used and reviewed, so use the feedback system of the internet to the best of your ability. The best people to recommend systems are those who have used it and broken it down. All have their good and bad points, there is no such thing as a perfect system. The nature of the market does not allow this. Forex systems, when chosen right, can help you make plenty of money.
For one thing, there is no such thing as a system that can make you thousands on a daily basis. If that was the case, the person who made this system would be charging you at least $10, 000 - $15, 000 a month to use the system. And there are systems like these, but these are formulated, up kept and improved on by banks and massive financial organisations who are making 30 - 40x what they are investing on these systems. So, to make x amount, you need to come out y. So a $49.90 system cannot make you $14, 000 a month. In fact, it would struggle to make you a tenth of that amount for a start.
So, do you now see the disparity in the whole situation? Anything worth his lout as a Forex systems expert author would not make promises he cannot and will not be able to keep. It is up to him to maintain his reputation as someone who is able to come out with good systems. In fact, he will not advertise so much, but use the power of word of mouth to come out with his marketing strategy. He will also take the personal approach in plenty of his marketing, because his or her clients will be the one paying top dollar for his system.
But do not get me wrong - there are plenty of good to medium level systems out there who can make you money. Not lots of money. But some money. In fact, the whole concept of the good Forex system is that one is attached to a single account, or one system will take over a few accounts. That is the only way that you can make money. It has to be a constant cycle of investment into a system and using it to generate income and so on and so forth.
Not one can do the job, but plenty working together can do this. Good systems are those that have been used and reviewed, so use the feedback system of the internet to the best of your ability. The best people to recommend systems are those who have used it and broken it down. All have their good and bad points, there is no such thing as a perfect system. The nature of the market does not allow this. Forex systems, when chosen right, can help you make plenty of money.
LMT Forex Formula Review
I have had the privilege of trading with the program for a month before it was released to the public. Having a month of experience prior to its release has given me a great look at the product and a great foundation for reviewing.
L.M.T. stands for Low Maintenance Trading which is an appropriate name for this program. While it is a program that analyses and spots potentially profitable trades, it isn't a robot. When there is a possible trade a signal is given. When trading on the daily chart it only takes 10 minutes to check for trades and open or close any trades as appropriate. You have to do a little analysis, but it is all laid out for you in the 47 page manual. Simply look at the 4 checks to determine if a potential trade set up is one that you should take. I really like this aspect because it puts me in charge of my trading. I can decide how good the signal for the trade is and whether or not I want to enter the trade.
The goal of L.M.T. Forex Formula is to identify trades that have the potential of producing large wins consisting of hundreds of pips. This is definitely not a scalping program. It is nice to have a trading program that looks for large wins and not a program that is simply scalping the markets.
And another great aspect of L.M.T. Forex Formula is that it can be used with any pair. I have been testing it on 10 pairs with good success. In 3 weeks of trading I have had 5 trades that have been executed and closed. Of those trades 3 were wins, 1 loss, and 1 break even. The result from these 5 trades is that the account is up 413 pips.
The L.M.T. Forex Formula can be used to check for trades either once a day or you can use the programs to trade more often for smaller profits. This makes the program great for those who have full time jobs or for people who want to be more active in their trading.
You can follow the results that I am getting with L.M.T. Forex Formula at my partner and my review site, LMTforexformulareview.com. We will be doing weekly updates and offering help to fellow traders.
L.M.T. stands for Low Maintenance Trading which is an appropriate name for this program. While it is a program that analyses and spots potentially profitable trades, it isn't a robot. When there is a possible trade a signal is given. When trading on the daily chart it only takes 10 minutes to check for trades and open or close any trades as appropriate. You have to do a little analysis, but it is all laid out for you in the 47 page manual. Simply look at the 4 checks to determine if a potential trade set up is one that you should take. I really like this aspect because it puts me in charge of my trading. I can decide how good the signal for the trade is and whether or not I want to enter the trade.
The goal of L.M.T. Forex Formula is to identify trades that have the potential of producing large wins consisting of hundreds of pips. This is definitely not a scalping program. It is nice to have a trading program that looks for large wins and not a program that is simply scalping the markets.
And another great aspect of L.M.T. Forex Formula is that it can be used with any pair. I have been testing it on 10 pairs with good success. In 3 weeks of trading I have had 5 trades that have been executed and closed. Of those trades 3 were wins, 1 loss, and 1 break even. The result from these 5 trades is that the account is up 413 pips.
The L.M.T. Forex Formula can be used to check for trades either once a day or you can use the programs to trade more often for smaller profits. This makes the program great for those who have full time jobs or for people who want to be more active in their trading.
You can follow the results that I am getting with L.M.T. Forex Formula at my partner and my review site, LMTforexformulareview.com. We will be doing weekly updates and offering help to fellow traders.
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