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Using Intermarket Analysis in Your Currency Trading

Using Intermarket Analysis in Your Currency Trading

Author: Andrew Shiveley

I am going to assume that if you are reading this article then you already have a foundational knowledge of the foreign exchange (forex) market, so I am going to breeze through the basics and go right to the main topic of intermarket analysis.

If you are a financial market junkie like me, the topic of intermarket analysis is a fascinating one because it can applied to making money with forex trading (the main topic of this article) as easily as it can be applied to commodities. As you can probably guess, the term "intermarket" in this context simply means looking beyond normal economic data in order to come to a conclusion about where the price of a certain currency pair is headed. The opposite of intermarket analysis is plain fundamental analysis, usually focusing on major economic data such as employment, labor, and interest rates.

A few of the most significant intermarket relationships have to do with gold, oil, and the 10-year bond yield in the United States. The reason that the 10-year yield is important is because this value can be correlated to the value of a dollar index, or a basket of goods that can reveal the overall strength of the US dollar.

When it comes to gold and oil (which are arguably two of the most important commodities in the world today), the prices of those commodities will most affect the currencies of the countries that produce these commodities. There are two main relationships when it comes to gold and oil: Canada is a large producer of oil, an so the Canadian dollar (CAD) will be affected by changes in oil prices; and Australia produces alot of gold, and there are many companies in Australia that manufacture gold products such as rare coins, so the Australian dollar (AUD) will be affected by changes in gold prices.

These are some of the most profound instances of intermarket relationships in the global economy, but keep in mind that these relationships are *not* exclusive to the currencies I just mentioned. That is to say, changes in gold prices are not going to only affect the price of the Australian dollar and leave the value of every other currency unchanged; changes in the value of these important commodities like gold and oil will affect every currency, it just so happens that a larger part of the Australian economy has business interests in gold, so if gold gets more expensive then it becomes harder to do business.

Though oil and gold each have a "flagship" currency which they affect the most, fluctuations in the price of each of these commodities will also affect every currency in a somewhat predictable manner. When it comes to gold, a basic rule of thumb is that the currency value of all nations will decrease when gold gets more expensive, since this can indicate that more people are buying precious metals because they may not have as much faith in the main governing bodies in the world.

The way that oil affects currency prices is very interesting, since at this point in history (but hopefully not for much longer) nearly every major economy is dependent on oil for transportation and heating. The way that changes in oil prices affect a country's currency depend on whether or not that country is an importer or an exporter of oil. As an example, Canada has traditionally been an exporter of oil, whereas the United States has been an importer. So when oil becomes more expensive, this can be damaging to the United States economy and beneficial to an oil-exporter like Canada.

As a forex or currency trader, it is important to understand these relationships so that you do not derive your trading signals from only one source. It is also good to know how major commodities affect currency prices because you can also use this knowledge to make money in the global stock market, by investing in companies such as a Canadian oil producer or an Australian company the specializes in gold coins.

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5 Important Things To Consider When Choosing A Forex Broker

5 Important Things To Consider When Choosing A Forex Broker

Author: James Woolley

If you go to your favourite search engine and do a search for 'forex brokers', you will be bombarded with endless results of companies all vying for your business, so how do you decide which one to go with? Well here's five important points to consider:

- Location

Always look at where a company is registered. After all if you're going to be sending money to a company in order to start trading, do you really want to be sending it to an offshore company based in some remote part of the world, and can you be sure that you'll be able to successfully withdraw money when the time comes?

- Regulation

Following on from the last point, if they're based in the US or UK, for example, check that they're fully registered with the relevant regulators, such as the NFA and CFTC in the US and the FSA in the UK.

- Reputation

Reputation is another point to consider and again requires a little bit of research. Do a search at your favourite search engine for the company you are researching and see what other people have to say about them. What better way to find out about a company than seeing what other traders have to say about them?

- Trading Platform

If you're going to be using a company's trading platform on a regular basis, then you need it to be easy to use and user-friendly in general so test drive the demo platform if they offer one. Also look to see what extras are included such as charting facilities and news updates.

- Spreads

If you're a short-term trader this is a very important factor. If you're a long-term trader looking for moves of several hundred points each time, then a few extra points spread won't make much difference, but if you're a scalper or short-term trader then it can be the difference between making money and losing money. After all it's obviously so much easier to make money trading the GBP/USD intraday with a 2-3 point spread than a 5-10 point spread.

So there you have five important points to consider when choosing a forex broker. You'll notice I didn't mention margin as a factor. This is because it's far too easy to be attracted to brokers that offer up to say 1:400 leverage, and therefore allow you to take out very large positions with a small margin, but this is a very dangerous game and it's all too easy to over-leverage yourself and wipe out your account completely.

Article Source: http://www.articlesbase.com/currency-trading-articles/5-important-things-to-consider-when-choosing-a-forex-broker-344086.html

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Forex Trading System - a Simple, Free Profitable One for Big Fx Profits

Forex Trading System - a Simple, Free Profitable One for Big Fx Profits

Author: Kelly Price

If you want to buy a mechanical forex trading system there are plenty on the net that you can buy but 99% of them don't work as they have never been traded and come with simulated track records. On the other hand, you can use this free one which is simple and profitable.

The trading system we are going to look at is incredibly simple but don't assume that just because it's simple it doesn't work - it does. You can make big profits with it by incorporating it in to your forex trading strategy.

This system was developed by trading legend Richard Donchian in the late seventies for trading commodities and many traders have used over the years. While it was developed to trade commodities it works well in currency markets because they trend.

The system is called "The four week rule" and it does exactly what its name implies.

Here are the rules:

1) Close short positions and reverse to a long position when a price exceeds the highs of the previous 4 weeks.

2) Close long positions and reverse to a short position when a price falls below the lows of the previous 4 weeks.

That is the system and you couldn't get simpler than that.

The above will work very well in trending markets but in sideways and consolidating markets it will get chopped, so you can consider using a filter. Enter trades on the 4 week rule - but exit the position on a shorter time period and go flat.

1 or 2 week cycles are ones to consider. You would then simply re enter on the next 4 week signal.

I have used this currency trading system as part of my strategy for years and it works -most traders won't use it though, despite the fact its proven and it works - Why?

1. It's too simple.

Most people discount it purely on this, although simple systems always tend to beat complicated ones as they are more robust.

2. It takes discipline to follow, as it is not fussy about exact market timing.

Most traders are obsessed with buying low and selling high (even though it doesn't work!) so can't follow it and most traders lack discipline anyway.

3. Its not trendy.

Most forex traders like trendy or mystical systems Fibonacci, Elliot Wave, Neural networks, artificial intelligence etc which are all a bit more glamorous than a system from the seventies, with one parameter.

Make no mistake though, this system beats most on the net that are sold and it's free!

While it may be simple, keep in mind many famous traders have used it such as, Richard Dennis, the turtles and many more - if it's good enough for them, it's good enough for you.

You can of course just use the general principle in your forex trading strategy as a currency trading system it is based on the 4 week cycle of price and you will be surprised at how important it is.

To get diversification you can trade currencies with other markets as well and diversify. For example -the energies and interest rate markets are good trending markets to combine with currencies.

The 4 week rule is free and if you are serious about your forex education, take a look at it and it will help you enjoy forex trading success.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-system-a-simple-free-profitable-one-for-big-fx-profits-343954.html

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Day Trading - Will Wipe Your Trading Account Out Quickly!

Day Trading - Will Wipe Your Trading Account Out Quickly!

Author: Kelly Price

Article Source: http://www.articlesbase.com/currency-trading-articles/day-trading-will-wipe-your-trading-account-out-quickly-343950.html

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Forex Trading System - Beware of This When Choosing One!

Forex Trading System - Beware of This When Choosing One!

By: Kelly Price

There are a lot of forex trading systems for sale and most are junk. You can find out if a system is likely to make you money by looking at one key factor which is the subject of this article.

Let me ask a question first:

Would you take driving lessons from someone who hadn't past their test?

Of course you wouldn't!

With forex trading systems however traders buy systems that have never been traded and then wonder why they lose. If you are looking for a forex trading system online they will all give you a track record that's profitable. However the way to discard 95% or more of them is - to look for the disclaimer below or similar one - read it carefully:

"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

What this means is that a vendor can publish or make up any track record he likes knowing the closing prices and simply put this disclaimer on it. Most traders never question it - buy the system lose and then wonder why they didn't experience the same gains as the track record.

If you are looking for a forex trading system then always be cautious when you see the above disclaimer - you have to ask yourself the question:

If the vendor has not had the confidence to trade it why should you?

This is a very valid point and you need to use common sense.

In forex trading to many people are blinded by greed and see forex as an easy way to riches but of course with the rewards on offer its not that simple. You can make a lot of money but you need to get the right forex education.

The Route to Currency Trading Success

Forex trading requires you to do your homework - no one is going to make you rich only you can do that, so seek out sensible down to earth advice and learn it yourself and you can build your own forex trading system - which we will cover in our next article.

New! FREE ESSENTIAL TRADER PDF's + A Unique Forex Course For a wealth of free Forex education, a currency trading course and 2 x essential FREE currency trading basics PDFs visit our website at: http://www.learncurrencytradingonline.com

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Why Invest in Stock

Why Invest in Stock

By: Frank Vanderlugt

Many people today are watching the stock market go up and down on a regular basis. They hear the terms about the ‘bull’ and ‘bear’ on the evening news and most people know that this means that the market is very good or very bad. With all of the speculation within the stock market why would anyone want to invest in stocks?Today the stock market in the US is trading at over 13,000 and it is at an incredibility high rate and it seems to be staying fairly steady. Many people wonder why they should invest in the stock market when it is so high and the chances are that the numbers will go down. Overall the stock market has been fairly consistent by providing fairly good returns for most investors. There are, of course, people who lose money when they take risky chances with their stock portfolio.So, why invest in the stock market? If you work with a reputable stock broker, he can provide you with an overview of the market. He will work with you to determine how comfortable you are with the risks that are involved when buying stocks. The two of you will come up with a plan that involves the purchase of certain stocks that have been consistent throughout the years. Your purchase price for some basic stocks might seem high, especially when you see what these particular stocks were worth a few years ago. But, if you are serious about investing, you have to start somewhere and it is with some of these basic stocks that you can begin a sound foundation on which to build.Some of your friends and relatives might just ask you the question ‘why did you invest in the stock market’? Yes, it is up right now, but it will go down again. This is definitely a true statement because the stock market does fluctuate—sometimes very dramatically.Remember that it takes time to make money in the stock market—there are very few overnight successes. You might hear about someone who made a million dollars, but chances are this did not happen overnight. There are some very lucky people out there who for some reason seem to have the Midas touch, but that is not the norm.If you are unsure about why you should invest in the stock market, make an appointment with a reputable stock broker and talk to them about your interest and concerns. They will take the time to help you understand what is involved and what the risks are. Knowing all of this information up-front will help you make an informed decision when it comes to investing your hard earned money in the stock market.

Frank j Vanderlugt owns and operates http://www.lazytrader.com Day Trading

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Forex Indicator Software Training

Forex Indicator Software Training

By: Paul Bryan

Forex indicator software training programs are designed to facilitate individual traders and investors in learning the indicator software for using them effectively.

The training software ideally should be available in different levels, for beginners, intermediate, and advanced learners. An experienced conventional forex trader may not have strong computer skill as well. The software, therefore, should have the ease of operation and user friendly instructions.

If you subscribe to some technical indicator software, the vendor may offer you the training material for free. One particular software may have several indicators with detailed instruction on how to use them.

The training material should have step by step installation guide, basic operations, Frequently asked questions (FAQ), back-up support, and many such interactive features, through which you can develop a fair idea of the operations.

The software as well as the training program for forex indicator should work effectively in almost all platforms like Windows 2000/XP/2003/Media Center/Vista etc.

A professional forex indicator training software may also have trading simulator, which allows to make trades using history data, develop and test trading strategies, and check the performance of each and every trading indicators individually.

Through a forex indicator trading software you can acquire and improve necessary professional trading skills based on the technical indicator of your choice.

A good forex technical indicator training software combines traditional technical indicators with state-of-the-art neural network and genetic algorithm technologies to create a full-proof, effective trading models. It should be dynamic, interactive, and innovative method of providing traders with the most comprehensive training in forex technical indicators.

The visual representation of the data derived by the technical indicator is extremely important. The forex indicator training software should clearly explain the parameters with 2-dimensional or 3-dimension charts and graphs, so that you can relate the results to the indicators while making actual trading.

Most of the economic indicators have a marked effect on the forex trading market. Some of them are released weekly, while others are released monthly or quarterly. In advanced forex technical indicator software, common indicators are improvised with new technology.

As all the trading indicators are based on mathematics and computation, one may think learning them is pretty difficult. But this is quite wrong. All you need to learn is to understand the logic on basis of which these technical indicators are developed. Then you can interpret the indicator in your own way to apply it in your trading.

One must remember, buying a forex indicator software and the training material can never ensure your success in trading.

You should have the patience and zeal to learn the software with the help of the training material offered and apply them judiciously and not by following them blindly. Sound knowledge proves to be the key for a successful forex trading with technical indicators.

To start becoming a better trader visit Forex Indicator Software Training

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Forex Foreign Exchange Spreads

Forex Foreign Exchange Spreads

By: Paul Bryan

Forex trading is one of the most popular and fastest growing financial trading opportunities. Exchange rates for currencies in the forex market are quoted as 'bid/ask' rates. The difference between the purchase (ask) and the sale (bid) rates is called the 'spread'. Forex spread is one of the most important single parameter to make the difference between a successful and losing trading.

Forex spread is expressed in percentage in point (pip) which is the smallest measure of price move. For example, if the currency pair EUR/USD is trading at 1.3000 and then changes to 1.3020, the pair is said to move by 20 pips. A pip in most currencies is 1/10,000 of an exchange rate, but in USD/JPY, it is 1/100.

The bid/offer spread is the difference between the buying (bid) and selling (offer) price. The ask price is the immediate execution prices for quick buyers or traders and bid price is for quick sellers.

In forex market brokers generally do not charge any commission from you. But they get their money by charging you a spread. As the spread is the difference between the bid price and the ask price for any currency being traded, the broker adds this spread onto the price of the trade and keep it as their fee for service.

Therefore, for you, lower the pips and spreads, higher the forex profits. If the spread is big, you have to pay more when you buy and get less when you sell. Forex spread is charged only on one side of the transaction, usually on the "buy" side of the trades. So, as a forex trader your aim should be to buy low and sale high.

If the quote between EUR/USD is said to be 1.2222/5, the spread equals 3 pips (5-2). Although it seems to be small, forex spread difference of one pip can make significant difference in your profit. You may find the difference to be as high as 25% on your trading costs.

Therefore, we advise you to choose a low spread forex broker. Most brokers offer different spreads for different currencies. For the most popular currency pairs like the EUR/USD or GBP/USD, you get the lowest spreads, while less popular currencies are traded with higher spreads.

The forex trade can also vary with the type of your account and volume of trades. But there are brokers who offer same spread to all accounts and any trade volume. You can even opt for fixed foreign exchange spread, but they are generally higher than floating spreads.

It should always be remembered that spread is the difference between bid prices and ask prices as determined by the free market and therefore can never be guaranteed. Spreads are generally tighter when there is good market liquidity but it widens as liquidity goes down. Find a forex broker, who is honest and transparent with the operations. Make sure there is no hidden spread and the execution is fast and accurate.

To find out more about trading with currencies online visit Forex Foreign Exchange Spreads

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Golden chances for green investors

Golden chances for green investors

By: Jim Barnaby

In an increasingly eco-friendly marketplace, everything, it seems, has to be environmentally friendly. Organic food is in, irradiated and GM is out. Recycling is good while waste is unforgivable. Everything from using more public transport to fitting insulation and using energy-saving light bulbs has been caught under the green umbrella.
Many still resist the temptation to give up flying, but those who are conscious of their carbon footprint yet don't want to ditch the foreign holiday are taking advantage of the new Eurostar service to head for the continent, according to French property website VEF.
Founder and managing director of the firm Trisha Mason said the Channel Tunnel link, plus the 186mph TGV train service inside France helped attract precisely this market, making parts of France ideal for investors interested in capturing the green market.
She said: "Eighty-four per cent of our clients who visited our partner office in Burgundy in 2007 said that this was a prime factor in them choosing this area."
Green travel possibilities are not the only ways in which the eco-friendly tourist may be served by investors. The properties themselves are becoming greener in many instances.
One such case is that of Spain. The government recently announced moves to provide €1 billion (£719 million) in grants to homeowners to make their older properties more eco-friendly, with €2 billion in credit every year to make homes more energy-efficient.
Signalling his intention, prime minister Jose Zapatero said: "All the lights are flashing red. We are at the point of no return. I ask all citizens to act with urgency and to put this country at the forefront of the challenge to fight climate change."
Mr Zapatero pledged to do more if his government stays in power after the next Spanish general election. In the meantime, developers of new properties in Spain are obliged to ensure between 30 and 70 per cent of their hot water using solar thermal power.
With environmental issues being a worldwide concern, governments everywhere are seeking to ensure developers create greener properties. In India, often seen as a growing source of pollution as its economy grows rapidly while enjoying Kyoto exemption, Pune Municipal Corporation has announced that builders in the city will get between five and ten per cent off the rateable values for property built using eco-build techniques, such as fitting rainwater collection facilities and solar panels, reports the Times of India.
For investors, these trends mean the market is falling into line with other areas of economic activity, with the high levels of government support given to eco-building and home improvements reflecting the reality that buildings produce a much higher proportion of emissions than aircraft. All this promises that those looking to invest in such properties overseas will be able to serve an eco-conscious market, not to mention ensuring they themselves are keeping it green.
In today's world Property investment is an excellent investment option especially investment in UK

Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property

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Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose

Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose

By: Kelly Price

Forex trading is all about having the right method but also the right attitude. Here we will look at 10 character traits that the losing 95% of traders have and if you want to enjoy currency trading success you need to avoid them.

Here they are in no particular order of importance.

1. I am not responsible

A symbol of losers - they think success will come with no effort on their behalf and blame everyone else for their failure from the tip they got from friend, newswire or broker, to the market being against them.

These people make up a surprising amount of the losing majority and they fail to see that no one can give them success but themselves. Instead of seeing this they do the following.

2. I Like to take expert advice

If you do be very careful as most of the people who put themselves out as experts on the net are anything but - their marketing companies and have never traded in their lives.

Again a vast amount of traders buy systems with unbelievable track records and then are surprised when they fail in real time (they never look at the disclaimer that says the track record is a simulation and not real). If something looks to good to be true it probably is and this is very true in forex trading.

If you follow an expert and have not done your homework on the logic they base their views on, then you are unlikely to have the confidence to follow their method with discipline when it hits a losing period.

If you don't follow a method with discipline then you have no method at all.

3. I don't like being wrong

Well in forex trading your going to be wrong a lot of the time, as only you can be wrong and the market price is always right - no matter what you or I think. Most traders hate taking a loss and looking stupid but the markets do that to everyone and even the best traders lose at times.

If you try and argue with the price and justify your position, you will run up losses and lose and your emotions will take over.

4. I deserve to win I am smart

I have met some very clever people in forex trading and the majority of them lose - if you think that being smart helps you then it won't.

In forex trading you get paid for being right with your trading signal that's it and it's a fact that the best forex trading systems are simple.

They work far better than complicated ones as they have fewer elements to break.

Clever people tend to over elaborate their trading and think the more they put in the more they get out but this does not apply in forex trading.

If you want to make money keep it simple and remember forex trading is probably 20% method and 80% mindset.

5. I am not a patient person

If you are an anxious or nervous person then you are unlikely to win at forex trading. You need patience to wait for the right opportunities and you need patience to hold positions through short term volatility to bigger profits.

If you are an anxious trader you will probably let your emotions get the better of you trade too much, engage in revenge trading etc and lose.

There of course other losing traits but the above are very common ones and hold anyone of them and you will lose.

Forex trading is not hard to learn anyone can do it but most fail because they don't realize that correct mindset is the key to success. To be successful at forex trading you need to rely on yourself, have a deep understanding of why your method works, so you can have the confidence to apply it with discipline.

If you understand the above you can avoid these common losing traits and get a mindset for forex trading success.

New! 2 X FREE FOREX Trader Pdfs For a wealth of free forex education, currency trading course and some FREE Currency Trading PDF's visit our website at: http://www.learncurrencytradingonline.com

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Forex Online System Trading

Forex Online System Trading

By: Paul Bryan

Forex online system trading is an automated trading method that applies preprogrammed strategies for automatic trade execution. You can operate forex online system trading from your home computer or can opt for a managed account. In case of managed account, experienced and professional traders or brokers will take care of your trading while you engage yourself in some other occupation.

Till few years back, forex trading was limited to banks and other big financial institutions. With the progress of information technology and networking, the trading has opened to medium and small investors and traders.

Forex online system trading has played a key role in making the trading popular and within everyone’s reach. Now, you need a computer and internet connection to operate forex trading from your workplace or home.

The first step to start forex online system trading will be to open an online account. You can either buy some proprietary software or can download from sites offering trading platforms.

Before choosing a trading platform you may visit sites that offer comparative analysis of different leading trading platforms with describing their pros and cons in detail. Once you have downloaded the forex online trading system, open a specific type of account depending on your level of expertise, budget, and trading strategies.

If you are a new investor, you may open a demo account with your broker. Through this demo account you learn the functioning of the forex online trading system, the basic principals of trading, and things you must know about the trading practices. As no real money is involved while trading with a demo account, you can apply different trading strategies and learn the risk management features to find out the most effective one.

The next step for forex online system trading will be to open a mini account with a small sum, for example, $100 or $50. As a small amount is involved in the trading, you can experiment with new trading strategies and method before you gain confidence and graduate to a standard account.

A good online broker helps its customers to invest their funds appropriately and securely and may return 30 annual compound growth on their investment.

The first and primary advantage of forex online system trading is it takes away the emotions from the trading. The major reason a trader looses money is they trade without a specific strategy and let their emotions dictate their trading.

This lack of discipline results in losses. As the forex online system trading is purely mechanical and follows past trends for future trade, technical and fundamental analysis of the market helps in identifying winning trades.

Forex online system trading is exceptionally rewarding for them who do not have the expertise or time to trade in this ever-operating market. You need to follow the signals and set the limits in your trading terminal automatically. Make sure that you understand the logic on which the system works. This will help you in exploiting the full potential of your online forex trading system.

Start trading currencies online today by visiting Forex Online System Trading

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2008 will be a year where food inflation makes us profits

2008 will be a year where food inflation makes us profits

By: Monty Guild

PLEASE ACCEPT OUR WARMEST WISHES FOR A HEALTHY, HAPPY AND FULFILLING 2008

2008 WILL BE A YEAR WHERE FOOD INFLATION MAKES US PROFITS

It is not yet widely in the news in the developed world, but in the developing world and in the energy producing countries of the Mid East, Asia, and Latin America; inflation is beginning to share the headlines with news about rapid economic growth.

Most of the western economic pundits dismiss inflation as a non-problem because it is their view that inflation has been caused by higher food prices, and food prices will move lower once good weather allows more crop production, or once high prices dilute demand as has been the case in the past.

MAY WE RESPECTFULLY SUBMIT THAT THIS IS NOT THE PAST

Presently, as well as in the future, the consumers of food are and will be much richer and more interested in upgrading their diets than they have been in the past. There are also other reasons to suggest that grain prices will rise, like the focus on ethanol production. However, let us just keep it simple and look at how much richer the food consumers of Asia, Russia, Eastern Europe, and Latin America are now than they were just a few short years ago. As they become richer, these consumers demand more food and more animal products, which consume a lot more grain to produce. Grain prices are certainly going to move higher over the long-term. Meat and dairy prices will rise as well.

We strongly believe that demand for food and the products used to grow food including fertilizers, machinery, transportation and processing will be profitable industries in 2008.

This is a theme that we will be participating in more in 2008. Over the past few years, we have owned these types of stocks, and done well in them but they have not been a major theme of ours. We are now initiating them as a major theme.

Some will say that the fertilizer stocks have already risen, food prices have already risen, and grain prices have risen. This is of course true, but may I ask you a question? After Gold had already risen from $250 and ounce, was it a bad buy at $400/ounce? No, because it is currently at $831. Was oil a bad purchase at $50/barrel because it had risen from $20? No, it is currently at about $96.

Corn and soybeans have not risen as much as oil and gold in the last 10-11 years, but they will.

Food has always been a bigger part of the total expenditures for people in poorer countries. If they keep their food expenditures flat as a percentage of their total expenditures, their food consumption grows a lot as their incomes rise.

OUR THEMES FOR 2008

We are sticking with several of our old themes and adding two new ones.

We have reviewed all of our themes in the context of a more inflationary environment expected in 2008. 1. Precious metals and foreign currencies remain a theme, and we continue to believe that both inflation and a weak U.S. dollar will lead to higher gold prices in the coming year.

2. Energy remains a good theme. Energy, along with precious metals, India and China has been a theme of ours for 5 years. In our opinion, the price of oil will rise more slowly in 2008 and may only get to $115. However, if one buys the companies with the good oil discoveries and low valuations, the energy theme can still provide good returns.

3. Brazil, India and China remain good themes. We believe some stocks in these countries are currently overpriced and we will be waiting for dips to add to current positions and initiate new positions. These countries are not monolithic. They have broadly diversified economies made up of many industries. Some industries will do better than others. We generally prefer infrastructure in India, and the consumers in China and Brazil. Once these markets turn up again we could see a big rally and higher prices for many sectors of their economies.

4. Base metals may be under pressure for a few more months due to fears of demand decline as a result of the recession in the developed world. We think that demand from the developing world will create big long term demand, so we will buy them on price weakness.

5. Russia is a new theme introduced in our last memo. We are primarily interested in consumer stocks, and we will buy if a correction develops before the March 2008 election.

6. Food and farm related industries mentioned above are a new theme.

IN 2008 WE SEE GROWTH FOR SOME COUNTRIES STAGFLATION FOR OTHERS

Countries which grow slowly in inflationary times suffer from stagflation. Those that grow fast attract capital as their returns exceed the rate of inflation. India, China, Russia, and Brazil will grow faster than inflation in the long term, so we will buy them when they decline in price.

SUMMARY

Our themes for 2008 are about the same with 2 new additions; Food and Farm, and Russia. But the emphasis is different; everything is being viewed in terms of oncoming inflation.

Every theme stands up well in an inflationary environment. They are either beneficiaries of inflation such as food, energy and metals, or they may be countries which produce these products mainly Brazil and Russia, or lastly they are countries which are growing very fast and can easily adapt to higher inflation because their economic growth rate is strong [China and India].

We wish all of you a wonderful New Year, and we look forward to the opportunities we will find in 2008. Please contact us with your questions and suggestions.

Guild Investment Management, Inc., a registered investment advisor. All material presented herein is believed to be reliable. Investment recommendations and opinions expressed in these reports may change without prior notice.

You can also read our past periodic market and economic commentary articles by going to the Commentary Archive on our web site www.guildinvestment.com.

These articles are for informational purposes only and are not intended to be a solicitation, offering or recommendation of any security. Guild Investment Management does not represent that the securities, products, or services discussed in this web site are suitable or appropriate for all investors. Any market analysis constitutes an opinion that may not be correct. Readers must make their own independent investment decisions. The information in this article is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Guild Investment Management to any registration requirement within such jurisdiction or country. Any opinions expressed herein, are subject to change without notice. In addition, there are many market, currency, economic, political, business, technological and other risks that are beyond our control. We make reasonable efforts to provide accurate content in these articles; however, some content and some of the assumptions, formulas, algorithms and other data that impact the content may be inaccurate, outdated, or otherwise inappropriate. In addition, we may have conflicts of interest with respect to any investments mentioned. Our principals and our clients may hold positions in investments mentioned on the site or we may take positions contrary to investments mentioned.

Guild’s current and past market commentaries are protected by copyright. Apart from any use permitted under the Copyright Act, you must not copy, frame, modify, transmit or distribute the market commentaries, without seeking the prior consent of Guild.

Monty Guild - CEO and Chief Investment Officer Mr. Guild founded Guild Investment Management in 1971. Mr. Guild is a recognized expert in the areas of international investing and economics. He has been a writer and speaker on economic issues for 30 plus years and has been widely quoted in the world media. Mr. Guild supervises the investment and research functions at Guild Investment Management. He holds a BA in economics and an MBA with highest honors.

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Become a Professional Currency Trader from Home Live the Dream!

Become a Professional Currency Trader from Home Live the Dream!

By: Monica Hendrix

Many people want to become professional currency traders and work from home and pile up big profits but very few people achieve it for one simple reason - They do not understand two key points that all professional traders understand.

Before we go through these key points lets start with a rather inspiring story.

Back in 1983 legendary trader Richard Dennis decided to teach a group of people to trade who had never traded before. They were of all ages, both sexes and of varying levels of intelligence.

He then spent 14 days teaching them to trade and then gave them accounts.

The result?

They made over $100 million dollars and went on to become trading legends.

So Dennis proved the point - anyone can be taught to be a trader.

If anyone can learn why do 95% of traders lose?

There are two main reasons for this

1. Taking Responsibility

If you think that you can take advice from someone else and be successful your wrong. Only you can make yourself successful.

Today, to many people want to buck responsibility not do their homework and pass the buck when they lose - well that wont wash in forex trading your on your own.

If you understand this and have a desire to learn and want success, you will then be able to learn the correct way. Forex trading is not hard to learn - but you of course need to know the basics of what you are doing and have confidence in your forex trading strategy.

This is the real key to success - Understanding.

This leads to confidence which allows you to trade your method through inevitable periods of losses to eventual currency trading success - with discipline.

2. Discipline

When Dennis taught his students, he didn't just cover a method he spent considerable time on showing them the importance of executing it with discipline.

He knew what all successful traders know:

If you can't execute a method with discipline you really have no method at all.

Learning a method is not hard, becoming disciplined is - because you have to deal with your emotions and confront an all powerful being the market - where only you can be wrong and it's always right.

If you think discipline is easy, try trading and find out its not!

You have to have rock solid confidence in what you are doing and keep your emotions in check.

Understanding = Confidence = Discipline

Many traders look at forex trading and think it's easy but it requires unique skills such as the ability to construct and operate your rule system, ignore news stores, ignore the majority opinion and deal with the emotions of greed and fear.

The good news is:

If you take the time to understand and get confidence in your trading system the chances are you will be a disciplined trader and enjoy currency trading success.

They Did So Could You?

Dennis's group of students did it - and they should act as an inspiration to you as they showed it is possible and the rewards of trading can be life changing. Sure you might not become as rich as them, but there is NOTHING to stop you become a successful trader apart from yourself.

NEW! 2 X FREE TRADER PDFS & PRFESSIONAL FOREX COURSE For a wealth of free forex education, currency trading course, free PDF's and more on Currency Trading Basics visit our website at: http://www.learncurrencytradingonline.com

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A little hope for the festive season after a turbulent storm

A little hope for the festive season after a turbulent storm

By: Mike Wright

Tricky would be a choice world to describe global equity throughout the second half of this year. Stock markets and economies appear to be balancing on a knife edge with the chances of a global recession as high as 50/50 according to some analysts.

The credit crisis, interest rates, inflation, government debt and consumer spending are all interconnected and will form the focus for 2008. Last week, global stock markets closed a jittery week strongly with sentiment swinging around the news flow of these five factors. On Thursday, the Nasdaq 100 closed up over 2% on better than expected consumer spending numbers and earnings reports from Research In Motion (Blackberry) and Oracle Corp.

The FTSE was one of the strongest markets last week on news that the last interest rate cut was voted for unanimously. This may increase the chances of a series of further rate cuts, with the next cut expected to come as soon as January 10th.The MPC said that a "substantial loosening of policy"might be needed to head off the risks to economic growth from the credit squeeze.

Sterling plummeted to its lowest levels for three months against the dollar and to near its all time low against the Euro. UK shoppers hopping over to New York for Christmas shopping will have had much less of a bargain than hoped as the USD/ GBP exchange rate dropped below $2 to the pound on Thursday.

A dramatic surge in Government Borrowing also affected sentiment as data from the Office of National Statistics showed that the UK's current account deficit had doubled in the third quarter to £20bn. This is now the biggest deficit in cash terms, at 5.7% of GDP and is now bigger than the US deficit comparatively.

However a rate cut in January isn't a done deal with inflation fears persisting. A 'no change' verdict is most likely at the next meeting, according to many senior economists and interest rate futures. Libor (London Inter Bank Lending Rate) fell last week on the back of the global central bank 'rescue' plan. It is hoped that the easing of this rate means that credit markets will begin to flow again in the New Year without the need for another rate cut.

There is much talk of the Santa Clause rally coming into effect between the close on Christmas Eve and New Years Eve. Since 1940 the S&P 500 has been up during this period 76% of the time with an average gain of 0.8%. The effect has diminished in recent years according to Bespoke Investments with the S&P 500 actually posting a decline on average during the festive period since the start of the current bull market in 2003.

According to the Stock Trader's Almanac when the rally doesn't appear, it can be bad news for the stock market. "If Santa Clause should fail to call; bears may come to Broad Wall" as they put it. This was certainly on the mark back in 2000.

Next week there is a reduced Christmas trading calendar. Most notable are US core durable goods orders & consumer confidence on Thursday. On Friday, house price sentiment will again dominate with the UK's Nationwide house price data and US new home sales released at the end of the week.

Thursday and Friday's strength was impressive, but it could be argued that the rally from Tuesday was too far too fast. We are entering a seasonably positive period, but the speed of Friday's rally may have exhausted the bulls' enthusiasm earlier than expected.

Therefore a no touch higher may be the better option for the Christmas week and beyond. This allows for some minor further upside while providing exposure to churning market over the next month. A 'No Touch'higher on the S&P 500 with the trigger set to 1590 over 35 days returns a yield of 10%. This level is 14 points higher than the all time high posted in October.

- THE END -

Contact Details:

Name: Mike Wright Tel: 448003762737 Email: editor@my.regentmarkets.com Url: Betonmarkets.com & Betonmarkets.co.uk

Address: Regent Markets (IOM) Limited 3rd Floor, 1-5 Church Street Douglas, Isle of Man IM1 2AG

Regent Markets is the world's leading fixed odds financial trading group. Through its main multi-award winning websites, BetOnMarkets.com and BetOnMarkets.co.uk, it has established itself as the leading global provider of a unique, powerful way to trade the world's major financial markets. The number, length and variety of trades available to our clients exists nowhere else in the world.

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Currency Trading Books 3 You Must Read

Currency Trading Books 3 You Must Read

By: Kelly Price

There are many currency books but here I have selected three that every trader should have in their library of books - if you are seasoned pro or novice trader these books are great forex education.

1. Market Wizards (Jack Schwager)

Schwager interviews 17 trading legends including Richard Dennis, Paul Tudor Jones, Ed Seykota, Marty Schwartz, Tom Baldwin and others. The traders interviewed are not just traders their super traders. There methods may all be different but there is something to learn from all of them,

One of the top-selling trading books of all-time and with good reason - if you can't learn from these guys then there really is no hope

2. What I Learned Losing a Million Dollars - (Jim Paul Brendan Moynihan)

This books focus is on losing and may seem an odd choice as essential reading but it is for this reason as it correctly states

There are many different ways to make money but only a few ways to lose it.

Part biography and part a lesson in money management - if you only thought money management was placing a stop you need this book.

One of the most unique trading books you will ever read.

It focuses on the fact that trading and investing are personal journeys; about finding out who you are, and then how to manage what you find and use this understanding to trade successfully.

The reason why most traders never make money is they don't understand that success comes from within and that trading is all about self knowledge not the method they are using.

3. The Way of the Turtle - (Curtis Faith)

While visiting a turtle farm, legendary trader Richard Dennis had a bet with his big pal and trading partner - Bill Eckhardt that traders were not born - they could be taught.

To settle the bet, they recruited a group of individuals from all walks of life, gave them accounts to trade, and trained them for 14 days and nicknamed them the Turtles.

The Turtles proved Dennis right and earned more than $100 million in less than four years. Here the most successful turtle Curtis Faith goes through the experiment in great depth offering his unique perspective on the experiment.

He explains why the Turtle Way works in today's markets and how to apply it. He also shares his wisdom on taking risks, choosing your own path, and learning from your trading mistakes.

So there you have 3 currency trading books that are essential forex education.

Keep in mind:

Currency trading is relatively easy to learn in terms of method the real problem is getting the right mindset and all the above books will give you a unique insight into getting the right mindset to succeed in currency trading.

Treat yourself and get these 3 currency trading books and learn from true market pro's.

New! 2 X Essential Free Trader Pdfs Professional Forex Course For a wealth of free forex education, currency trading course, free PDF's and more on Best Currency Trading Books visit our website at: http://www.learncurrencytradingonline.com

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Forex Trading - Make Money Fast With These Simple Tips

Forex Trading - Make Money Fast With These Simple Tips

By: Kelly Price

If you are trading Forex and making mediocre gains or simply want to improve your overall profitability then this article is for you. The tips we are going to list here are not conventional - but most traders don't make money fast in forex trading so don't let that worry you!

These are simple yet powerful tips any Forex trader should consider to improve their profitability. A good place to start is with classic investment book - the Zurich Axioms by Max Gunther. The wisdom is simple, profitable timeless, unconventional, funny and its one of the most inspiring and essential investment books ever written.

Several of the Axioms are not accepted wisdom - however the Swiss investors who wrote them became rich, while most investors are not.

Let's look at some of them.

"Resist the allure of diversification"

Diversify your investments is accepted as a way to make money longer term and reduce risk - but all it does is dilute profits. You will read about risking 2% per trade and spreading your trades around - but if you are like most Forex traders and trading a small account of around $2,000 you won't make much money risking $40.00!

The Zurich Axioms encourage you NOT to diversify.

Look for the big potential winners and risk more. This does not mean you are being rash, you are simply risking more on the high odds trades and ignoring marginal trades - many traders simply trade too much.

In currency trading you don't get paid for how much effort you put in or the amount of trades you make - you get your reward for being RIGHT with your trading signal.

The Pareto Principle - 80 / 20 Rule

The above philosophy of trading less is related to famous the 80 / 20 rule or Pareto principle. The rule states that 80% of your results come from 20% of your activities.

This is true in many areas of life in sales, business and trading.

The rule postulates that by concentrating on the best investments, and ignoring the others, you can improve your profitability.

By only focusing on a smaller number of good trades.

This is really a common sense rule, yet very few Forex traders think about or practice this rule. Most Forex traders are obsessed with trading - they think if their not in the market they will miss a move. Other traders try trading in ways that simply offer them no chance of success like Forex day trading or scalping. I know traders that make triple digit annual gains and only trade once every few months and I know other traders who trade every day and lose.

Keep in mind - the aim of Forex trading is to make money - nothing more.

Love Risk!

The major reason traders don't win is they are frightened of risk.

Does this mean you should act in a rashly or in cavalier manner?

No it doesn't:

However - to make big gains you have to take calculated risks when the time is right and a good trade presents itself and load it up with a meaningful amount of money.

In the Zurich Axioms Gunther states:

"Worry is not a sickness but a sign of health...If you are not worried, you are not risking enough" and "Always play for meaningful stakes. If an amount is so small that its loss won't make any significant difference, then it isn't likely to bring any significant gains either".

If you want to make money fast in forex trading then you need to risk meaningful amounts on the right trades at the right time.

So if you want to make money fast seek out the high odds trades and load them up with as much as you can afford and aim for and achieve higher returns.

New! FREE ESSENTIAL TRADER PDF's + A Unique Forex Course For a wealth of free forex education, a currency trading course and 2 x essential FREE currency trading PDFs visit our website at: http://www.learncurrencytradingonline.com

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Simple Stock Investment Plan for Long-Term Gains

Simple Stock Investment Plan for Long-Term Gains

By: Vince Shorb

Dollar cost averaging is a dead-simple investment technique that may help young investors achieve long-term gains with less risk. Within an hour you can have this stock market investment strategy set up and working for you.

Long-term gains using a dollar cost averaging plan.

Dollar cost averaging allows young investors to purchase stock investments consistently over a longer period of time. This stock market strategy works especially well with broad-based market index investments like the mutual funds and ETF's that mirror the return of the S&P 500. This powerful and simple investment plan will help lower risk and you have the potential for higher returns.

For young investors looking for consistent gains over time, establishing a dollar cost averaging plan could be a perfect solution. Young investors are able to purchase more shares when the stock market experiences short-term corrections. That way when the index turns around and starts heading up in value young investors are able to profit more because they own more shares.

When the market is rising young investors are able to capitalize on the market trend because they are following a consistent investment plan. As they purchase more and more shares in a bull market that money is going to work for them right away.

Dollar cost averaging spreads the prices that you purchase stock market investments (cost basis) over a longer period. Investors are protected from stock market corrections and benefit from long-term gains in the market.

Steps to creating an effective dollar cost averaging plan.

For young investors creating a successful dollar cost averaging plan is simple. There are two basic steps that will get your money working for you:

1. Decide on the exact amount of money you will invest each and every month. The key to a successful dollar cost averaging plan is consistency. You can increase your investment over time but avoid investing different amounts each month.

2. Set up the exact times you invest. If you decide to invest once per month do so on the same day. For instance, the fifth of every month invest $150. It gets even easier when you put your dollar cost averaging plan on auto pilot. Set this up one time and your investments are made automatically for you each and every month. All you have to do is check your statements to see how your investments are doing.

Improve your dollar cost averaging plan through diversification.

Diversification is a simple spreading out the risk of owning a stock investment by owning many different stocks in a variety of sectors. Instead of owning one individual stock, which is very risky for the inexperienced, you may choose to own a group of stocks. This will reduce the risk of owning any single investment. The investment of choice for many young and beginning investors is broad based indexes.

An example of a broad based market index is the S&P 500. By investing in the S&P 500 index you own a piece of every stock that makes up the S&P 500. Stocks like American Express, Google, Ford, Nordstrom, Home Depot, Staples and Yahoo are a few of the stocks that make up that index. That way you're protected in case one of the stocks in the S&P 500 drops 70% of its value, you're only invested 1/500th, and you won't experience too much loss from that. In comparison, if you just owned that stock by itself you would have lost 70% immediately.

For young investors, keeping your investments diversified and using a dollar cost averaging investing technique - you have effectively reduced risk and are in an excellent position to achieve long-term profits.

Vince Shorb provides Free video investment education for young investors at http://www.FreeBy30.com . His course 'Financially Free by 30' guides young investors, with the use of audio, video and interactive tools, to gain the practical financial education that young investors need to succeed in the real world.

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Far From Being Over, Further Economic Uncertainty?

Far From Being Over, Further Economic Uncertainty?

By: Mike Wright

To say that Wall Street has been paying close attention to the actions of the US Federal Reserve recently is an understatement to say the least. Last week was no different as the Dow Jones & Co reacted frantically to Fed attempts to stoke greater movement in moribund credit markets.

Last week's mixed economic readings came in a week already made busy by the Fed's decision on Tuesday to lower interest rates for the third time this year, and its part a day later in the coordinated global liquidity 'rescue' plan. Investors have since been debating the effectiveness of such measures.

In one unwelcome development, prices of gasoline at wholesale level jumped 3.2 percent in November, the biggest increase in 34 years. But the news was not all bad last week. The Commerce Department said retail sales rose in November by the largest amount in six months, and a Labor Department report showed a drop in new claims filed by those seeking jobless benefits.

The modest movement came as investors further examined the Fed's agreement with the European Central Bank and the central banks of England, Canada and Switzerland, to combat what it described as elevated pressures in the credit markets.

The market's back and forth trading of the last couple of weeks, is likely to have kept some uneasy investors out of action, not likely to return until after the New Year.

Next week we have yet another look into the US housing market, which hasn't shown any hints of improving anytime soon. Maybe the new bailout plan, which will be freezing the mortgage rates for some of those exotic mortgages for the next 5 years, will help out some people, but its unlikely to be shown in next week's readings.

Also next week is the final reading of the GDP and inflation. Both are potential market movers, as in the last few months rate cuts could have pushed up inflation, therefore hurting consumers and their take home pay.

For a trade this week it may be advantageous to look at a potential increase in volatility in the markets, due to the fact that most traders are going away for vacation, thus creating an overreaction for any major move.

An up or down bet on the S&P 500 with an 18 days to maturity, and 45 points away from the spot on either side, pays a potential 9% ROI. This means that the market has to move 45 points in either direction from Monday's open for you to win.

-THE END-

Name: Mike Wright Address: Regent Markets (IOM) Limited 3rd Floor, 1-5 Church Street, Douglas, Isle of Man IM1 2AG, British Isles. Phone: 448003762737 Email: editor@my.regentmarkets.com URL: http://www.betonmarkets.com & http://www.betonmarkets.co.uk

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Forex Scalping Systems - Why You Will Lose All Your Money Quickly

Forex Scalping Systems - Why You Will Lose All Your Money Quickly

By: Kelly Price

Wherever you look on the net you will say adverts for forex scalping and day trading systems which promise regular profits that can make you rich but there is a problem, none of them work, because forex scalping is based on logic that simply is not correct...

The problem of course is prices are determined by humans and I such short time spans as a day you have no way of knowing which way prices are going to go.

Millions of traders all using different methods and governed by the emotions of greed and fear cannot be predicted in such short time spans. This means that daily volatility is random, prices can and do go anywhere in a day and support and resistance is meaningless.

You will always see track records that make huge profits presented but they are all done knowing the closing prices! Let's face it if a track record looks to good to be true it normally is and this applies to forex scalping and day trading systems.

You can simply look for a disclaimer and you will normally find this one or similar on any track record.

"CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN".

Of course if we all knew today's prices in advance, we would all be rich but we don't.

Forex trading is harder - you have to trade going forward not backwards.

Vendors who sell these systems simply use hyped copy and a simulated track record to appeal to naïve or greedy traders - they know the system doesn't work, so they don't bother trading it - they simply make up a track record.

Despite the hype, forex scalping doesn't work and you need to trade the odds to win and that simply is not possible in short time frames.

There are two ways to make money in forex trading, you can either swing trade which takes advantage of trends that last for a few days to a few weeks, or long term trend follow which takes advantage of moves that last for weeks or months.

If you want to enjoy currency trading success, you need to trade the odds - to do this you must have valid data and data within a day or less is not valid.

Forex trading is not easy and you wouldn't expect it to be with the rewards on offer but if you learn forex trading the right way and spend some time on your forex education, you can make big profits and for the effort you put in no other business offers you more in terms of rewards.

So forget forex scalping systems and look to trade the odds, using valid data and this will lead you to currency trading success.

NEW! 2 X FREE TRADER PDFS & PRFESSIONAL FOREX COURSE For a wealth of free forex education, currency trading course, free PDF's and more on Currency Trading Basics visit our website at: http://www.learncurrencytradingonline.com

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Beginners guide to forex trading

Beginners guide to forex trading

By: Karen Fairham

HOW TO PLAN YOUR FOREX JOURNEY
The forex market is the largest market in the world and growing. But just as the Forex market holds great promises it also holds even greater heart breaks for the inexperienced trader who jumps in headlong.
Most people hear about forex trading and go for a 3 day forex trading course and afterwards believe they are ready to trade forex, but they only learn how unprepared the are the hard way. I am talking from my own personal experience here and I can assure you the pain of seeing your hard earned money fast disappears are indeed a great pain.
But that said is the forex market really a big scam or is it for real? Yes it is for real and indeed you can make a living from it but there are a few things you need to know first.
" Educate yourself first and do it properly (there are books and a lot free materials on the net which will teach you)
" Identify the kind of trader you want to be (either a day trader or a swing trader) this will help you with the next stage which is building your trading plan.
" Have a trading plan (this is very important), reason been that if you do not have a trading plan I can assure you that you have planned to fail even before you began.
" Paper trade your plan to help you strategise properly and fine tune your trading plan.
" Then take your time to find a broker (when looking for a broker check to make sure the broker is registered)
Since Forex trading became popular there has been a huge influx of online forex brokers and trading platforms to the web. Finding your way through them all is a daunting task for most newcomers to forex trading. It is always best to open an account with an established broker with a good online trading platform.
As you go through your forex journey you will also encounter a lot of software peddlers, who will promise you pips upon pips every month. I am not here to dispute any vendor but rather to encourage you not to start of your trading journey with those bad habits that will lead to your failure. There might be some signal developers out there who are for real but it will do you no good to be dependent on these softwares when it comes to calling your trades.

Karen is a full time individual Forex & Futures trader. www.forexvillagers.blogspot.com

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Researching Stocks: Quicker, Objective, Better

Researching Stocks: Quicker, Objective, Better

By: Roy Macnaughton

Ian Campbell was sick of wasting his valuable time grappling with all the websites, blogs, newsletters, reports and various information found online that related to how to research stocks online.

It just wasn't working. This bothered Campbell, who for three decades has been viewed as a preeminent expert in the rendering of Canadian independent business valuation opinions in large and medium Canadian public and private company shareholder disputes and company valuations. He literally wrote the books on this subject. They are used by professionals all over Canada.

For several years, with the assistance of three investment advisors, each of whom specialize in different industry groups, Ian has researched macro-economic concepts and investment ideas online. He consistently spent more time doing this than he believed should be necessary. At the same time he had to develop financial and market comparators that he could not readily find in one organized place.

Campbell then considered what he had learned in his years of helping clients determine the value of their companies and investments. He concluded that if the most pertinent data was consistently summarized across a focused group of companies, and focused due diligence techniques were applied to those companies in much the way a company acquirer might do, this should lead to considerable time efficiencies and importantly, to a more in-depth knowledge of the companies.

The result, after nearly one year of research and site-building, is a unique site, recently launched in December.

He was especially interested in the 'due diligence' aspect. This was used to get to the heart of the financial matters of these publicly-traded Canadian Junior Mining and Oil & Gas Industries. Campbell and his team developed a patent-pending 'due diligence' questionnaire that includes more than 200 questions organized by three dozen topical headings.

The questionnaire searches company documents by keywords. The responses of each search are linked to company documents. This allows members to directly link to each specific response as it appears in the company's documents. Later, a special search-report is available for the member's review and follow-up.

Members have an opportunity to quickly and systematically learn a great deal about an individual company without having first to read voluminous corporate documents

Now here is where I think it really gets interesting. Members quickly learn what the company has not disclosed that may be important to their own work. All questions that do not yield a response to the special key words and phrases search are reproduced in an abbreviated 'follow-up questionnaire'. Often the questions that weren't answered are as ' if not more ' important as those that were.

It has taken nearly one year of hard work to find out what the individual investor and the Investment Advisers wanted; then to organize it in one place so they could find what they need and make their own investment decisions. So far, it looks like Campbell has hit the nail right...on the head.

©Copyright, R.W. MacNaughton, 2007

You can learn more about this transparent, time-saving site at: http://www.stockresearchdd.com Roy MacNaughton is a niche marketing coach and business writer. He's a seasoned marketer, with more than 30 years of international marketing and financial experience, including 10 years online. His blog is: http://www.UmarketingU.com

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Forex Education - 6 Vital Tips for Novice Traders

Forex Education - 6 Vital Tips for Novice Traders

By: Kelly Price

If you want to make money in currencies you need the right forex education and it's a fact any trader can learn forex trading and be successful but most fail to make money - this article will give you 6 tips so you can enjoy currency trading success.

Here are your forex tips in no order of importance but there all essential to your trading success.

1. Success Rests On Your Shoulders

No one else can make you rich you have to understand what you are doing to get the confidence to follow your path with discipline. If you don't understand what you are doing then your discipline will go as soon as you have some losses.

If you cannot follow a forex trading strategy with discipline you have no system.

2. Forex trading is NOT easy

Anyone can learn to trade but the really hard part is the mindset to succeed.

Do not believe anyone who tells you that it is and sells systems saying that you will make money every month or they can predict prices they can't.

There is a huge market for these systems and there mostly junk and come with a worthless simulated track record. As we said success comes from understanding what you are doing and self education is the key that will make you successful.

Forex trading is not easy and wouldn't expect it to be with the rewards to be had but the good news is - it's not that hard either.

3. Work Smart Not Hard

Most traders think the harder they work the more money they will make.

In many areas of life this is true but not in forex markets! You get paid for being right with your trading signal and that's it.

Work smart and learn the right knowledge and avoid all the common myths that most traders fall for which include:

- Day trading systems make money.

- You need to predict forex prices to win.

- The more complicated your trading strategy the more likely you are to win.

- Trading news stories is a great way to make money.

None of the above are true - there all myths we have covered even more in our other articles so look them up.

4. Use Forex Technical Analysis

It's simply the most time efficient and best way to trade.

You can learn it in around two weeks and then spend just 30 minutes a day executing your trading signals - and that's it. All you need to do is learn to act on the reality of price change and not predict.

5. Keep it Simple!

Simple currency trading systems work better than complicated ones, as they tend to be more robust.

Complicated systems fail in real time trading as they have too many elements to break.

6. Know Your Trading Edge

Your trading edge is something that will give you an advantage that will allow you to make profits when 95% of traders lose.

You must understand it and be confident that it will lead you to forex trading success.

If you don't know what it is you don't have one and its time to continue with your forex education until you do.

As you can see form the above your forex education is all about working smart not hard and getting the right knowledge and mindset to succeed. If you can learn currency trading the right way, a life changing income could be yours.

NEW! 2 X FREE TRADER PDFS & PROFESSIONAL TRADER COURSE For a wealth of free forex education, currency trading course, free PDF's and more on Currency Trading Basics visit our website at: http://www.learncurrencytradingonline.com

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Leverage and Fundamental Forex Trading

Leverage and Fundamental Forex Trading

By: Paul Bryan

Leverage is the ratio of total capital available to actual capital, which is the amount a broker will lend you for trading. For example, if the ratio of 10:1, your broker will lend you $10 for every $1 of actual trading capital you invest.

Most of the forex brokers offer leverage at least 100:1. Forex market offers higher leverage as compared to any other financial trading markets. Leverage also facilitates the forex traders to maximize their trading profits. With the help of leverage, a trader can make use of as high as 200 times the actual sum against the investment. It is a tool for using various economic parameters, such as margins.

Although leverage is a very powerful tool, it should be handled carefully, making sure that you have thought and formulated a risk management plan. You should always apply leverage on a small position or deal size. If it works successfully, it should be applied further on a bigger sum. Here leverage and fundamental forex trading plays an important role.

You can apply leverage frequently but wisely on your daily trading if it is backed by systematic fundamental analysis of the market. As leverage facilitates traders to make full use of the short-term instability or variations experienced in the forex market, it is closely linked with the trend and movement of the market. Market trends, in turn, are always influenced by the global political and economical situation, which can be rightly judged by fundamental analysis.

Fundamental analysis is a method of study that attempts to predict price action and market trends by analyzing economic indicators, government policy, and societal factors. Fundamental analysis alone is difficult to use when dealing with forex, and other margined products.

Because, it does not provide the specific entry and exit points, and therefore makes it difficult to control risk when using leverage. However, fundamental analysis can be used as a guide to judge overall direction or trends in a market.

Forex traders using fundamental analysis rely on news reports to gather information about economic, political, and social parameters. When applying leverage for the trading you must consider this wide perspective where a tiny element can swing the trend against your investment.

Two of the most important fundamental indicators are interest rates and international trade. Others are consumer price index, durable goods orders, producer price index, purchasing manager's index, and retail sales.

You, as an investor in forex must be aware of these indicators before investing large sum on leverage. You therefore must remember that leverage and fundamental forex trading goes hand in hand for a successful trading.

Learn more about Forex trading for free by visiting Leverage and Fundamental Forex Trading

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Forex Trading MACD

Forex Trading MACD

By: Paul Bryan

To be a successful forex trader, you must learn how to use the technical indicators, at least few most important ones. These technical indicators are very useful parameters that forecast, with a high probability, the future trend of the market. Moving Average Convergence Divergence or MACD is one such detailed method of using moving averages to find trading signals from price charts.

MACD was developed by Gerald Appel in 1979. It plots the difference between a 26-day exponential moving average (EMA) and a 12-day exponential moving average. A 12-day EMA is obviously faster than the 26-day EMA. A 9-day moving average is generally used as a trigger line, to indicate a bearish signal (time to sell) or a bullish signal (time to buy).

Moving Averages is your "trendy friend". It tells you the average price in a given point of time over a defined period of time. They are called moving as they reflect the latest average, while adhering to the same time measure. The MACD histograms are remarkable visual representation of the difference between MACD and its 9-day EMA. If prices are rising, the histograms grow larger as the speed of the price movement accelerates and contracts as price movement decelerates.

There are three kind of moving averages: Simple MA, Linearly Weighted MA, and Exponentially Smoothed. The latter is preferred as it assigns greater weight for the most recent data. It also considers data in the entire life of the instrument making it a more accurate indicator.

Forex traders study MACD to look for early signals or divergences between market prices. If the MACD turns positive and makes higher lows while the prices are still tanking, this relates to a strong buy signal.

On the other hand, if the MACD makes lower highs while prices are making new highs, this indicates a strong bearish divergence and a sell signal. Although trading divergence is a popular way to use MACD histogram, it is not very accurate. So it is better to use the histograms for trade-entry and trade-exit.

MACD in forex trading responds to the speed of price movement. Most of the forex traders use this to measure momentum and to gauge the strength of the price move than to determine the direction of a trend.

We must remember, MACD is just a technical indicator. A serous weakness of MACD is they lag the market. To overcome this problem, it may be used in combination with two averages of distinct time frames.

However, a logical and methodical approach in managing the rules will result in higher gains. The concept of MACD histogram offers a new way to trade an old idea in forex. It ensures huge scaling up of positions and applies equally for day trading and position trading.

To learn how to trade Forex profitably visit Forex Trading MACD

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Stock trading and stock broker as a career to look forward

Stock trading and stock broker as a career to look forward

By: Peter Frank

A stock broker is a qualified person who deals in various kinds of stocks and securities on behalf on a particular investor. In this case stocks mean shares, which gets traded in the stock market. With the boom in the market people have started to shift their attention and now even a small salaried person who works in a small organization as a clerk wants to trade in the market as the profits that he would earn risking are very high. But he will not be allowed to trade in the market individually. He needs to contact a stock broker or stock broking house. Now who qualifies to become a stock broker? As per SEBI (Securities and Exchange Board of India) in order to qualify for the position of the Stock broker or Stock trader you need to have the below mentioned qualifications

The minimum qualification required to become a stock broker is a graduation with at least 2 years of experience in a stock broking firm. A sub-broker, the previous stage of being a broker needs to have passed the XIIth standard to be eligible for his job. In India there are institutes offering courses in stock broking. Some of the renowned ones providing certified courses in Mumbai are listed below

1. Bombay Stock Exchange's BSE Training Institute, Mumbai 2. Institute of Financial and Investment Planning, B/303,Ventex Vikas, M.V.Road, Andheri(E) Mumbai 69 3. The UTI Institute of capital Market, Plot 82, Sector - 17, Vashi, Navi Mumbai - 400 705

After completing the course one has to register with the Securities and Exchange Board of India (SEBI) to become a broker.

In the earlier times when the markets moved up by 200 and 300 points and when our economies were not so strong students and youngsters were not so keen in taking up this career as it did not provide them with ample opportunities. But now with the markets riding on a wild bull these courses and careers in this field have gained tremendous impetus. The new courses offered make the new entrant equipped with enough knowledge to enter these competent markets without fear.

The professionals have got career opportunities Iunder various fields. He may work in · Business Houses · Stock Broking Firms · Investment Banks · One can work as a dealer or an analyst (to be an analyst one needs to be be a M.B.A or a C.A)

Apart from that if the person gets an opportunity to work in NASDAQ as a stock broker or if you could join any stock trading company who does trading in stocks then the monetary benefits are quite high.

Liberalization and globalization of economy have made the stock broking and stock trading a hot pancake for most investors who have some experience and interest in Stock trading

Visit www.kotaksecurities.com to know more about Stock Broking, Stock Trading, Online Stock Trading services.

Matthew Green Intenational Marketing Manager – Online Kotak Securities

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Charles Dow: His Last Name Says it All

Charles Dow: His Last Name Says it All

By: Ken Fisher

Charles Dow is one of Wall Street's most significant legends for two very significant reasons -- he created our financial bible, the Wall Street Journal (WSJ), as well as our first market barometer, the Dow Jones Averages. He is also the father of technical analysis. Ironically, Dow went relatively unnoticed for his achievements and died quietly at age 51 in his modest Brooklyn apartment in 1902 -- years before he was credited with revolutionizing the way we now talk about the stock market.

You could explain "his" theory and its technical applications, but during his lifetime, he never laid out a "Dow Theory," per se. When he first began compiling stock market averages in 1884 -- before the WSJ even existed -- he hadn't established much besides an index with an all-inclusive "index number" by which to measure the stock market. Later he added his intuitive opinions. In fact, the Dow Theory as we know it today was only named and extracted from his WSJ editorials twenty years after his death by other market technicians, like William P. Hamilton.

Standing over six feet tall, yet slightly stooped and weighing over 200 with dark eyes and brows, a jet-black beard, and walrus mustache, ultra-conservative Dow had a grave air about him, spoke with measured speech and was reminiscent of an overly serious college professor. He never raised his voice and often said it took him a full 24 hours to get angry, and once angry, he stayed angry. The professorial analogy is strengthened by the fact that, working during the end of the robber baron era, he never chose to play that game, never tried to make a market fortune for himself; he instead chose, to be a sidelines observer and commentator.

He was born on a Connecticut farm in 1851 and worked odd jobs as a kid. His father died when he was six. When he was old enough to choose his career, he chose to abandon farm life for the pen. Following a scant education, he apprenticed for six years with the influential Massachusetts newspaper, the Springfield Republican. Then he moved to a Providence, Rhode Island paper, where he found his niche in financial writing while covering the mining industry beat.

Having made a modest name for himself, Dow, at 31, next ventured to New York and in 1882, founded Dow, Jones & Company with fellow reporter Eddie Jones. They used second-hand office equipment and worked out of a tiny, one-room office in a ramshackle building at 15 Wall Street, building a profitable news agency. They provided daily financial news updates to subscribers, who were mostly typical Wall Street wags. Printed news was scarce on the Street, and there was a value to being plugged into news sources even if they were little more reliable than the gossip proliferating through the crowd. So, their service was cherished, and the firm grew rapidly within the year. Soon, they started publishing a two-page newspaper called the Customer's Afternoon Letter -- the WSJ's predecessor.

It was in the Letter that Dow first published his average, which he left unnamed. For example, on February 20, 1885, his average was compiled from 14 companies -- 12 railroads and two industrials -- whose closing prices totaled 892.92. Dividing this figure by 14, he came up with 63.78. Since the previous day's close was 64.73, the market was said to be down nearly a point for the day. A more precise observer might have been able to note that it was down 1.47 percent. The index was the first enduring attempt at precise market measurement. The index also gave birth to what would later evolve into the entire realm of "technical" analysis, wherein people forecast future price activity based on pricing history.

The Letter grew into the WSJ, in 1889. Costing $5 for a yearly subscription, 2 cents per copy and 20 cents per line for ads, the WSJ contained four pages of financial news and statistics, including bond and commodity quotes, active stocks, railroad earnings and bank and U.S. Treasury reports. At a time when there were about 35 major stocks and several hundred less widely followed names, an authoritative news source began to create, in effect, a standard by which reality was to be measured. We use the same standard today, published by the same firm. That function alone insures Dow a seat in the financial hall of fame.

Dow was a perfectionist. He worked quietly and intently, using his market averages to pursue his theory of market behavior in a series of editorials between 1899 and his death in 1902. Although he predicted the bull markets of the early I900s, Dow disciples believe the furthest thing from his mind was creating a system of buy and sell recommendations; they say he used his own theory to review market history, not predict future activity. Regardless, his efforts linking past and future pricing activity were the seeds of technical analysis, a field which today involves thousands of investment professionals and a major investment of time and money.

The theories Dow put forth in his succinct editorials are technically described in this book's biographies of William P. Hamilton, Dow's successor at the WSJ and major contributor to the Dow Theory; and Robert Rhea, who transformed Dow's and Hamilton's principles into a system.

It is impossible to think of how the Wall Street landscape would look today without Dow's influence. Whether because of his newspaper or technical analysis via his indexes, the name Dow cannot be separated from the market. Dow lived before the beginnings of "the information age." While no one would create an index today that operates in such a bizarre and inferior manner (coupling just a few stocks and price-weighting), nonetheless, it was a breakthrough for its time.

In a world of computers the Dow seems to be our worst major index, poorly conceived and non-reflective of the typical stock in America. But that is looking at it from our perspective today, on the back-end of an information and electronics explosion. Back then it was an easy-to-calculate index, and price-weighting made more sense because the data required to build market cap and unweighted indexes was not readily available and updatable. And the Dow Series was more complete then, because the few stocks they covered were a higher percentage of the relatively few big stocks traded.

Dow was an innovator, foreseeing what wasn't yet there. Several lessons can be extrapolated from Dow's life. First, is the importance of news and information. Second, the importance of perspective -- something this author feels is increasingly lost in a world that now sometimes seems too bombarded with news, opinions, and media. And finally -- the importance of foresight and the ability to see what wasn't yet in the market, and would be important to the future. If instead of being 100 Minds That Made The Market, this book were focus on only a dozen names, Dow would still be one of them.

Copyright © 2007 Ken Fisher

The above is an excerpt from the book 100 Minds That Made the Market by Ken Fisher Published by Wiley & Sons, Inc.; August 2007;$19.95US/$23.99CAN; 978-0-470-13951-6 Copyright © 2007 Ken Fisher

Author Ken Fisher is best known for his prestigious "Portfolio Strategy" column in Forbes magazine, where his twenty-three-year tenure of high-profile calls makes him the fourth longest-running columnist in Forbes' ninety-year history. Ken is the founder, Chairman, and CEO of Fisher Investments, a multi-product money management firm with over $40 billion under management. His success has ranked #297 on the 2006 Forbes 400 list of richest Americans. He is a regular in the media and has appeared in most major American finance or business periodicals. Fisher also recently authored the New York Times bestseller The Only Three Questions That Count, also published by Wiley.

Ken Fisher is best known for his prestigious "Portfolio Strategy" column in Forbes magazine, where his twenty-three-year tenure of high-profile calls makes him the fourth longest-running columnist in Forbes' ninety-year history.

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