Saturday, May 30, 2009
Gold Maker
Turkey has been an important regional gold market for many years; during the 1990s domestic jewellery fabrication averaged 125 tonnes (4.02 million oz). In addition, Turkey has been a key source of bullion for several neighbours countries. Turkish bullion imports, which normally exceed 100 tonnes (3.2 million oz) on an annual basis, came to 107 tonnes in 1999 but then rose significantly in 2000 to 205 tonnes (6.6 million oz). However, the following year bullion imports fell sharply. According to GFMS, this was partly due to the sharp devaluation of the Turkish currency and the associated economic and banking crises which affected the country. On a separate note, Turkey's position in the international market was enhanced by the full liberalisation of the local gold market in 1998 and the opening of the Istanbul Gold Exchange on 26 July 1995.
Got or Loss
Did you know that you can find a market that is open 24 hours a day? The market is called Forex market and if you go there, you can’t find services, commodities and goods. The Forex market is the place where different kinds of currencies are traded. In every trade, two currencies are involved. For instance, you can sell your Canadian dollars for Euros; or you can pay Japanese Yen for US dollars. Forex rates or exchange rates can change unexpectedly. You need to monitor these exchange rates in order to determine if the price of a certain currency increased or decreased.
Changes in the Forex market usually occur quickly and so it is important for traders to keep track of the market. Political and economic events can influence the changes in the Forex market. If you want to determine whether you’re gaining or losing in Forex trading, this article can help you with the calculations.
The Forex investment is greatly affected by the exchange rate and in order to understand the relationship between the two, you should also be familiar with Forex quotes. Like the currency pairs, Forex quotes can be found in pairs as well. Here is a very good example:
1.Suppose the currency pair is USD (US dollar) and CAD (Canadian dollar)
The Forex quote for this pair is USD/CAD=170.50; this is interpreted as ‘every one US dollar is equivalent to 170.50 CAD. The currency found at the left side is known as the base currency and it is always equivalent to 1. The currency found at the right side is called counter currency. The stronger currency is always the base currency and in this case, the USD. The Forex quote’s central currency is USD and so you can find it in most Forex quotes.
How can you determine if you’re earning profits or not? You can use another example.
2.This time use EUR to USD. Assuming that the Forex rate is 1.0857; in this example, the USD is the weaker currency. If you bought 1,000 Euros, you will need to pay $1,085.70. After a year, the Forex rate was at 1.2083 and this means that the Euro’s value increased. If you decide to sell the 1,000 Euros now, you will get $1,208.30; now, in this transaction, you gained $122.60. What if the Forex rate a year after was 1.0576? This means that the Euro’s value weakened. If you still decide to sell the 1,000 Euros, you will only receive $1,057.60 which means that you lost $28.10; did you get it?
Forex trading involves a lot of risks just like mutual funds and stocks. The fluctuations in the exchange market are responsible for such risks. Low level risks like government bonds in the long-term can give returns but are quite low. If you want to get higher returns, you need to invest in Forex trading but you need to face higher level risks.
You must set financial goals for the short term, as well as for the long term. By doing so, it will be much easier to balance the risks involved and the security. You will be able to conduct your trades with ease and comfort. Make use of all the available Forex trading tools so that you can make wise and profitable trades. After reading this article, you can already calculate if you’re gaining profits or not.
Changes in the Forex market usually occur quickly and so it is important for traders to keep track of the market. Political and economic events can influence the changes in the Forex market. If you want to determine whether you’re gaining or losing in Forex trading, this article can help you with the calculations.
The Forex investment is greatly affected by the exchange rate and in order to understand the relationship between the two, you should also be familiar with Forex quotes. Like the currency pairs, Forex quotes can be found in pairs as well. Here is a very good example:
1.Suppose the currency pair is USD (US dollar) and CAD (Canadian dollar)
The Forex quote for this pair is USD/CAD=170.50; this is interpreted as ‘every one US dollar is equivalent to 170.50 CAD. The currency found at the left side is known as the base currency and it is always equivalent to 1. The currency found at the right side is called counter currency. The stronger currency is always the base currency and in this case, the USD. The Forex quote’s central currency is USD and so you can find it in most Forex quotes.
How can you determine if you’re earning profits or not? You can use another example.
2.This time use EUR to USD. Assuming that the Forex rate is 1.0857; in this example, the USD is the weaker currency. If you bought 1,000 Euros, you will need to pay $1,085.70. After a year, the Forex rate was at 1.2083 and this means that the Euro’s value increased. If you decide to sell the 1,000 Euros now, you will get $1,208.30; now, in this transaction, you gained $122.60. What if the Forex rate a year after was 1.0576? This means that the Euro’s value weakened. If you still decide to sell the 1,000 Euros, you will only receive $1,057.60 which means that you lost $28.10; did you get it?
Forex trading involves a lot of risks just like mutual funds and stocks. The fluctuations in the exchange market are responsible for such risks. Low level risks like government bonds in the long-term can give returns but are quite low. If you want to get higher returns, you need to invest in Forex trading but you need to face higher level risks.
You must set financial goals for the short term, as well as for the long term. By doing so, it will be much easier to balance the risks involved and the security. You will be able to conduct your trades with ease and comfort. Make use of all the available Forex trading tools so that you can make wise and profitable trades. After reading this article, you can already calculate if you’re gaining profits or not.
Forex signal
So you decided to make full time leaving from foreign exchange market? Or you are going to supplement your income from here? You have set up yourself with proper broker available. I believe you spent hundred of hours in front of PC trying to put together all maths and physics involving currency market. Now you watching business news in the morning paper and following CNBC channel to be on the top with latest information from exchange market. You trading your demo account trying to figure out how to make it all work? So? Does it? No?
Face the fact that in currency market all is possible and there is no golden rule to follow. There are so many aspects to consider that you will need at least another head to set this puzzle together.
But do not worry there is a hope that can make it work.
Signal solutions for forex trading. People who traded forex for a long time and developed their own systems to enter and exit with profit strategies. They will share this knowledge with you for varieties of prices from usd49 to usd499 a month for those precious information. Problem is which one will suit you best. Are they scams? How do I know?
For medium advanced forex trader is almost impossible to choose proper forex signal system, which is not a scam, or at least not profitable. There is bulk of forex signals providers out there. They all offer their signal solution to trade currency with success.
Advice is that you will have to establish what type of trader are you? Do you want to trade quickly or maybe over the days or weeks? What losses can you manage and how much money you want to invest.
As long as you know al that it is a time to pick up signal trade provider.
Few things worth researching are: performance, service offered and rewievs of the signal. Search on forum for another users of the product you are interested in and ask for comment. Every profitable system should be up on collective2 with real track performance. Look for service offered. You will quickly find out that only few offer free trail-option to try signals before you pay. Demand performance evidence.
But while doing all that hard work choosing your automat forex signal system remember that you will have to totally follow it without exceptions to make most out of it. Any even small innovation may have dramatic results in your own gains.
Remember that your future profits will depend on your signal provider so calculate carefully and make smart decisions.
Face the fact that in currency market all is possible and there is no golden rule to follow. There are so many aspects to consider that you will need at least another head to set this puzzle together.
But do not worry there is a hope that can make it work.
Signal solutions for forex trading. People who traded forex for a long time and developed their own systems to enter and exit with profit strategies. They will share this knowledge with you for varieties of prices from usd49 to usd499 a month for those precious information. Problem is which one will suit you best. Are they scams? How do I know?
For medium advanced forex trader is almost impossible to choose proper forex signal system, which is not a scam, or at least not profitable. There is bulk of forex signals providers out there. They all offer their signal solution to trade currency with success.
Advice is that you will have to establish what type of trader are you? Do you want to trade quickly or maybe over the days or weeks? What losses can you manage and how much money you want to invest.
As long as you know al that it is a time to pick up signal trade provider.
Few things worth researching are: performance, service offered and rewievs of the signal. Search on forum for another users of the product you are interested in and ask for comment. Every profitable system should be up on collective2 with real track performance. Look for service offered. You will quickly find out that only few offer free trail-option to try signals before you pay. Demand performance evidence.
But while doing all that hard work choosing your automat forex signal system remember that you will have to totally follow it without exceptions to make most out of it. Any even small innovation may have dramatic results in your own gains.
Remember that your future profits will depend on your signal provider so calculate carefully and make smart decisions.
Forex Reserved
By some measures, Saudi Arabia’s reserves are the fastest growing in the world. The country’s reserves recently crossed the $250 Billion threshold, and are now growing at a pace equivalent to nearly 40% per year. The source of the reserves should be a mystery to no one: oil. Oil prices have surged over the last five years, bestowing a windfall of profits to the entire Middle East region. Plus, as summer gets underway, oil prices are sure to climb further, which will ensure continued growth in Saudi forex reserves. Fortunately for the US, the majority of the world’s oil contracts are settled in USD, which means the boom in oil prices has actually stabilized the USD, despite its contribution to the US trade deficit. In addition, Saudi Arabia is one of the world’s most reliable investors in US capital markets, which means Dollar bulls can breathe a cautious sigh of relief that reserve “diversification” will probably be given short shrift by the Sauds.
Home Business
The more you understand about any subject, the more interesting it becomes. As you read this article you’ll find that the subject of forex home business is certainly no exception.
When running a forex home business, a person quickly gains knowledge of how the business world works. Whether it be selling crafts, doing a home delivery business, or selling real-estate, after investing a lot of time and effort into a home or small business, a person quickly becomes aware of the few basic business truths that govern business.
One of those truths is that you have to have time and money to start a small business or any business for that matter. More often than not, the people that have the time dont have the money to invest in a home-based business and the people that have the money dont have the time. With Forex home business, it is quite possible to generate an income with a small time investment per day, after studying FOREX for a few months, and a very small investment as little as $50 in some cases.
The second truth, and these are probably quite obvious to most people, is that in order to make money a business has to have some sort of product to sell or perform some type of service. In the FOREX world, nothing is being sold and no service is being performed, but rather money is being exchanged. You are making a profit based on the actual exchange value of one currency against another currency. This eliminates the need for employees, such as customer service personnel and human resource people if your company were to become that big.
Also, because of the huge size of the FOREX market, trading nearly $1.5 trillion dollars a day, such things as social events, bad publicity, and changes in political climate will have no effect on your business. In fact, after studying FOREX, you will be able to see how these things will actually benefit your FOREX home business.
When running a forex home business, a person quickly gains knowledge of how the business world works. Whether it be selling crafts, doing a home delivery business, or selling real-estate, after investing a lot of time and effort into a home or small business, a person quickly becomes aware of the few basic business truths that govern business.
One of those truths is that you have to have time and money to start a small business or any business for that matter. More often than not, the people that have the time dont have the money to invest in a home-based business and the people that have the money dont have the time. With Forex home business, it is quite possible to generate an income with a small time investment per day, after studying FOREX for a few months, and a very small investment as little as $50 in some cases.
The second truth, and these are probably quite obvious to most people, is that in order to make money a business has to have some sort of product to sell or perform some type of service. In the FOREX world, nothing is being sold and no service is being performed, but rather money is being exchanged. You are making a profit based on the actual exchange value of one currency against another currency. This eliminates the need for employees, such as customer service personnel and human resource people if your company were to become that big.
Also, because of the huge size of the FOREX market, trading nearly $1.5 trillion dollars a day, such things as social events, bad publicity, and changes in political climate will have no effect on your business. In fact, after studying FOREX, you will be able to see how these things will actually benefit your FOREX home business.
Volume
A Forex trader could trade more transaction compared to the futures market (the trading volume could be a times larger), and the risk will be strictly under control. The trading volume of the Forex market is 46 times larger compared to the futures market, moreover Forex traders could make more profit from the Forex market due to the larger trading volume (the transaction volume is a few times larger), the REFCO Switzerland rich transaction platform allowed transaction between 1-100 times to be carry on, moreover a Forex trader could decide his or her own transaction amount, for example: Your account has $30,000, the basic transaction unit is each $1,000 (which transaction amount in $1.00, million), namely, so the proportion of the margin of each transaction unit is 100:1.
Monday, May 11, 2009
Trading Opening Range Breakouts
In yesterday's post I discussed why the average daily range is so important when day trading the major currency pairs. Well today I thought I would discuss how you can use this information to help you trade opening / overnight range breakouts.
Fighting the Market
When fighting the trend and insisting that the market is due to reverse itself is a sure sign that a trader will not be in the market very long. If a trader tries to catch short-term countermoves trying to make a few pips or always looking for the tops and bottoms hoping to catch the big one he is always trading against the long-term trend and against the odds.
When the market has been trending for a while and a trader has been going with the trend then the market stops for a while and looks like it will make a quick retracement. The trader jumps in for a few quick pips and get right back out again only to find that the market did not give the quick pips and continued on with the trend. Not having set a stop loss he is now looking for the next bounce to minimize the loss to only end up losing even more. The risk reward ratio is not good either. With a Large stop loss if there is a stop loss at all and only a small profit target. At times like these it is better to stick with the trend. More money will be made, less stress will be involved and the trader’s focus and connection with the market can more easily be maintains.
A trader that is going to practice countertrend trading will have to be quick and willing to take many small losses. In the long run it is better to wait out the countertrend rather than trying to make some extra pips on it.
When the market has been trending for a while and a trader has been going with the trend then the market stops for a while and looks like it will make a quick retracement. The trader jumps in for a few quick pips and get right back out again only to find that the market did not give the quick pips and continued on with the trend. Not having set a stop loss he is now looking for the next bounce to minimize the loss to only end up losing even more. The risk reward ratio is not good either. With a Large stop loss if there is a stop loss at all and only a small profit target. At times like these it is better to stick with the trend. More money will be made, less stress will be involved and the trader’s focus and connection with the market can more easily be maintains.
A trader that is going to practice countertrend trading will have to be quick and willing to take many small losses. In the long run it is better to wait out the countertrend rather than trying to make some extra pips on it.
Forex Market Session
Forex market is a totally different beast as compared to the stock market. Stock market is open only for a fixed times usually from morning to the evening. After that it closes and trading stops. But forex markets never close. They are open 24 hours a day, 5 days a week except on weekends.
Continuous 24 hour action at the forex markets baffles many new traders. Forex markets have no central exchange. It is an Over the Counter (OTC) market that is spread over various locations in the world.
As there is no open and close of the forex market, many new traders get confused and dont know when the best time when major price action takes place is? So they sit in front of the computer all the time and in the end simply exhaust themselves losing their stamina. A clever way is to divide the 24 hour day into three 8 hour sessions.
Again divide each 8 hour session in 4 hours by using 4 hour charts. As you will read this article, I will explain how this division is logical and can help you understand the forex markets. Forex markets are basically controlled by three money centers and these three sessions will help you identify the risk appetite and the price action for each.
The three major money centers that affect the forex markets everyday are namely: Asia, London and New York. We will call our three trading sessions, the Asian, the London and the New York Session.
Asian FX Market Session: Sydney, Tokyo, Hong Kong and Singapore are the main centers that constitute the Asian Session. Export corporations and Central Banks of these countries are trying to hedge their currency fluctuations. Due to this price action is jumpy, fades away and is not sustainable.
London Market Session: London is the center of the global forex markets. The price action that takes place during this session forms the trend in the rest of the day trading. London forex markets are deep and highly developed. London market is also assisted by Paris, Geneva and Frankfurt. Since lot of money is needed to move this market, these moves give a lot of information for the traders.
New York FX Market Session: New York is second biggest FX market after London. Both of these markets overlap in the morning when New York is opening and London is closing. This is the time for major action.
The following table gives important times of the day that any forex trader needs to know: 00:00 GMT-Sydney Opens. 11:00 GMT-London opens. 15:00 GMT- London becomes very active. 17:00 GMT- London is active and New York opens. 18:00 GMT- London and Europe closes. 19:00 GMT- New York and Chicago getting ready for a close!
This overlap between London and New York is the time when major price action takes place. There is lot of volatility in the market and you can make many pips. London is the trend setter in both forex and fashion.
Continuous 24 hour action at the forex markets baffles many new traders. Forex markets have no central exchange. It is an Over the Counter (OTC) market that is spread over various locations in the world.
As there is no open and close of the forex market, many new traders get confused and dont know when the best time when major price action takes place is? So they sit in front of the computer all the time and in the end simply exhaust themselves losing their stamina. A clever way is to divide the 24 hour day into three 8 hour sessions.
Again divide each 8 hour session in 4 hours by using 4 hour charts. As you will read this article, I will explain how this division is logical and can help you understand the forex markets. Forex markets are basically controlled by three money centers and these three sessions will help you identify the risk appetite and the price action for each.
The three major money centers that affect the forex markets everyday are namely: Asia, London and New York. We will call our three trading sessions, the Asian, the London and the New York Session.
Asian FX Market Session: Sydney, Tokyo, Hong Kong and Singapore are the main centers that constitute the Asian Session. Export corporations and Central Banks of these countries are trying to hedge their currency fluctuations. Due to this price action is jumpy, fades away and is not sustainable.
London Market Session: London is the center of the global forex markets. The price action that takes place during this session forms the trend in the rest of the day trading. London forex markets are deep and highly developed. London market is also assisted by Paris, Geneva and Frankfurt. Since lot of money is needed to move this market, these moves give a lot of information for the traders.
New York FX Market Session: New York is second biggest FX market after London. Both of these markets overlap in the morning when New York is opening and London is closing. This is the time for major action.
The following table gives important times of the day that any forex trader needs to know: 00:00 GMT-Sydney Opens. 11:00 GMT-London opens. 15:00 GMT- London becomes very active. 17:00 GMT- London is active and New York opens. 18:00 GMT- London and Europe closes. 19:00 GMT- New York and Chicago getting ready for a close!
This overlap between London and New York is the time when major price action takes place. There is lot of volatility in the market and you can make many pips. London is the trend setter in both forex and fashion.
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