by forexrobot on January 3, 2011
It is not a secret that you can trade on forex market to earn money. Here are these examples. For example by selling dollar and buying yen with an eye to further dollar’s cheapening, we will earn, if the dollar really falls in price and yen becomes more expensive than it has been before. So at the end of the trading we will have the yen which has more dollars than ever before, that means we get more dollars, as during the trading an automatic conversion of all currencies into dollars happens and a loss or win are gained in dollars only.
What is more interesting is that every single day, almost without exceptions, currencies’ rates on this market fluctuate in one direction by about 80-150 standard units or points (or as they are also called pips, pips – principal interest points. One point equals $10 on the average.
If a currency rate changed by 100 points and you had correctly chosen the direction of the market and passed (underwent) this rate change in the same direction as the market did, then you would have earned $1000 for several hours of trading (as well you could have lost this amount, if you had incorrectly identified the direction of the market and didn’t close this losing position on time)!
In order to understand the process of trading correctly you need to create a free unlimited training account (demo). This unique training tool makes it possible for any trader, without loosing his own money, to try himself in learning by playing on the stock exchange, trade and develop a winning strategy, which then can be used when trading real money.
Trader, who doesn’t know basic principals and methods of “personal safety” on this market have to understand clearly that this market as any other market in the world gives him almost the same chances to lose his own money, but for users of our trading computer network there exist effective technical tools which allow to cut your losses by sums which you can afford to lose. Though these tools are simple, but you have to learn how to use them correctly.
by forexrobot on January 3, 2011
While the Western world was celebrating Christmas, China increased its key one-year lending and deposit interest rates over the weekend by 25 basis points in a continuation of unwinding of stimulus actions taken to battle the recession. This is the Chinese government’s latest maneuver to contain an elliott wave of rising inflation, which reached above 5 percent (year on year basis) in November, according to data released earlier this month.
Chinese leaders have to do a balancing act to keep growth within a targeted range. Growing too fast or too slowly could lead to civil unrest, a sensitive issue in China. With the country leaving recession far behind, and inflation reading at the highest point in two years in November, Chinese policy is tilting toward controlling inflation and moderating growth. Besides hiking interest rates, China could also continue to raise banks’ reserve ratio requirement, sell notes to withdraw cash from its economy, or loosen its reins on the yuan allow the yuan to appreciate more strongly against the U.S. dollar.
The tightening efforts have, not surprisingly, impacted Chinese stocks—the Shanghai Composite Index has declined to the lowest point since early October, before the first interest rate increase. Commodities though, have, for the most part, held ground, indicating that the decisionbar market is seeing beyond the cooling of the Chinese economy in the near-term. Although investors are watching China’s every move with concern, it’s important to remember that China is still likely going to grow at least in the range of 8 percent per year, significantly better than any other major economy in the world.
Moving our focus to the other region that has been making big news lately, the European Central Bank has pledged to lend about €150 billion (close to $200 billion) for three months at benchmark rates to the banks in the EU to help them raise the needed cash. Most of the money is to repay maturing loans owed to the ECB, so essentially the ECB is handing out cheap money to repay itself. In order words, EU banks are heavily reliable on their debtor to come up with funds to pay back funds owed to the very debtor. Clearly, that is not a great sign of financial health.
There is no end in sight for the ongoing European credit crisis. While the euro is unlikely to fail overnight given the all-but-assured interventions from not just the ECB and IMF, but also countries with vested interest in the euro’s survival and the EU’s economic health, its weakest links (namely the PIIGS countries) will likely continue to weigh on the region. The euro is treading water by default—the U.S. dollar, the major alternative currency, isn’t on exactly solid footing either.
In a reversal of recent trend of encouraging economic readings, figures from consumer sentiment and housing price measurements were poor—the S&P/Case-Shiller Home Price Index showed the first year-over-year decrease in October for the first time since January—the greenback is falling across the board against major currencies, including to an all-time low against the Swiss franc. One U.S. dollar is now worth less than one Swiss franc. The Australian dollar is also trading above parity with the greenback, and the Canadian dollar is inching closer to parity.
The soft economic readings in the U.S. suggest that the Federal Reserve will likely continue its unprecedentedly loose monetary policies, and the possibility for even more quantitative easing down the road is left open. All of this, of course, point to more money flooding into the system and diluting the greenback further. The strength of commodities, of course, have also helped not just the economies, but also currencies, of countries rich in supply—including our recommended developed nations, Australia and Canada.
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by Brian Brown on January 3, 2011
When the average person thinks of investments, they often think of the stock market, and specifically, the New York Stock Exchange. Because there is a level of risk involved with the NYSE, many people cannot afford to pay professionals to trade for them, and they get swallowed up by the market, losing their money. Forex trading can be a smart way to invest while avoiding a lot of those issues, and Forex trading signals can get you there.
## What is Forex?
Forex stands for “foreign exchange market”. Because it is not limited to the United States, it is the largest financial market in the world, running a daily volume of $2 trillion. When you invest on Forex, you are investing against the trends of pairs of currencies, and you gather your gains or suffer your losses as they fluctuate.
##A low-cost way to invest
Because it is so large, Forex is not dominated by the professional traders found in the New York Stock Exchange. In addition, you can even begin trading with just a few thousand dollars, if desired. And because there are no middlemen when trading on the Forex, you do not have to pay extensive fees on your trades.
##Forex trade signals: what are they?
If you want to keep abreast of the market as it happens, Forex trade signals are a smart tool to use. These are notifications that you receive when trends develop on the market. This way, you can take advantage of the trends as soon as they are available.
##How risky is Forex?
Because transaction fees are low, Forex offers a smaller risk. And because the money in the Forex is highly liquid, you can take your money and stop investing if you do not feel confident or you notice that you are losing money.
Forex is a stronger investment than the NYSE because it keeps professional traders in check and transaction fees low. Consider Forex trading when you want to have the investment thrill with limited risk.
Looking for a sober and intelligent way to get Forex Trade Signals from a veteran trader? Visit PalmerForex.com today and see if Art Palmer’s Forex signal service subscription could work for you.