Wednesday, October 7, 2009
Forex-The complete information
Saturday, October 3, 2009
Dollar Carry Trade in “Eight Inning”
The performance of virtually every currency against the Dollar (with the lone, major exception being the British Pound) in the last quarter has been downright impressive. Put another way, the performance of the Dollar has been downright pathetic.
The Dollar’s under-performance is no mystery. While some critics have pointed to long-term weaknesses such as the trade and budget deficits, most of the current impetus continues to come from low US interest rates. As I have reported recently, US short-term rates (based on the 3-month LIBOR rate for Dollars) is already the lowest in the world, and is still moving lower.
As a result, investors have been able to comfortably borrow in Dollars, and invest the proceeds in (comparatively) risky assets, predominantly outside the US. “Low rates have weighed on the dollar as equities have rallied over the summer, leading risk-based traders to buy the higher-yielding euro and commodity-based currencies, such as the Australian dollar, over the safe-haven greenback,” summarized the WSJ.
For most of the last 20 years, such a carry trade strategy would have been most profitable if funded using Yen or Swiss Francs. Since the stock market rally in May, however, buying a basket of emerging market currencies using the Dollar as a funding currency would yield the highest returns, as much as 10% higher than if the same trade had been funded using Yen. Moreover, the Sharpe-ration for such a trade (which seeks to measure the invariability of returns) is the highest when shorting the Dollar, implying that not only is this strategy lucrative, but also comparatively stable.
For a few reasons, however, analysts are beginning to wonder whether the Dollar carry trade has (temporarily) run its course. Technical indicators, for example, suggest that the Dollar may have appreciated too far, too fast. “The U.S. currency rose…after the 14-day relative strength index on the euro- dollar exchange rate climbed yesterday to 74, the highest level since March. A reading of 70 may indicate a rally is approaching an extreme and a reversal is imminent.” Stochastic indicators yield similar interpretations. “Traders have placed an unusually high volume of bearish bets against the U.S. dollar in recent weeks and may want to lock in profits by reversing those trades.” Besides, anecdotal evidence implies that anti-Dollar sentiment may be reaching irrational levels, as every other investors now seems to be betting against the Dollar.
From a rates perspective, the Dollar carry trade may soon become less viable. The markets (as reflected in futures prices) largely expect the Fed to be the first major Central Bank to hike rates, perhaps as soon as 2010 Q2. The ECB, by comparison, is not expected to hike until at least two quarters later, while the Bank of Japan is nowhere even near close to tightening monetary policy. The Fed is also beginning to contemplate possible exit strategies for its quantitative easing programs, which suggests that it is becoming concerned about inflation. One analyst connects this to a decline in the carry trade: “There might be a little bit of nervousness going into the FOMC if they start signaling any potential unwind of quantitative easing. There is a bit of risk over the next couple of days of the dollar starting to recover a little bit of ground.”
Finally, there are concerns that another crisis could trigger a pickup in risk aversion, in which case investors would likely return to the Dollar en masse. Recall that in 2007, when the Japanese Yen carry trade was in vogue, the main concern was volatility. Traders weren’t ever afraid that the BOJ would hike rates. Rather, they feared that some kind of event would inject uncertainty into the markets, making their returns (via the Yen) erratic. If investors suddenly got nervous about the ongoing stock markets rally, then the Dollar could conceivably become more volatile, which would make carry traders think twice.
At the same time, emerging market currencies will continue to offer much higher interest rates than the Dollar. While the Dollar, then, could conceivably become more attractive relative to the Yen, for example, it will remain extremely unattractive compared to high-yielding currencies. The yield differentials are currently so enormous that even if the Fed raised rates tomorrow, it would still be immensely profitable to short the Dollar relative to the Brazilian Real or South African Rand. While the Dollar slump may be reaching an endpoint, a Dollar rally will not necessarily follow. Brace yourself for sideways trading.
Candlestick Chart Analysis
Learn Candlestick Charting. Know these Candlestick Patterns. Get your 82 page free Candlestick Guide now!Candlesticks have become popular in the Western trading community especially the United States in the past decade. However, candlestick charting methods had been developed by Japanese rice traders hundreds of years back.
The advent of internet has leveled the playing field for traders whether they trade stocks, futures, options, commodities, precious metals or currencies. Access to the market is now only one mouse click away.
Market information is now in most cases freely available online. Internet has made commission rates dramatically lower. The result is that a whole generation of new traders and investors want to try their luck beating the market.
I am a great fan of candlesticks charting and I have seen many traders both new and professionals becoming die hard fans of candlestick charting. Why? Because candlestick charting is the best tool available. Can you beat the market? It depends if you are using the right tools.
There are many forms of charting techniques that have been developed over time. Why candlestick charting is superior to other forms of charting like the line charts, bar charts or point and figure charts? One of the best features of candlestick charting is its visual appeal and readability. You can glance at a candlestick chart and quickly gain an understanding of what’s going on with the price action in the market.
Opening and closing price levels can be a very important area of support and resistance from day to day. You can easily spot and opening and closing price of a security or currency on a candlestick chart.
There are certain specific candlestick patterns that can help you identify when is the best time to buy, sell or wait on a trade or investment. This information can be extremely useful for short term traders like day traders and swing traders.
Now in order to trade and invest effectively using candlestick charts you need to understand these candlestick patterns. These candlestick patterns can be a real boon to your trading and you can combine them with other technical indicators for even more reliable results.
Many different types of candlestick patterns can tell you what may lie ahead in the market. Patterns appear on the candlestick charts as simple, single stick occurrences or complex multi stick formations.
You may use the information provided by candlestick patterns to decide when to get into a trade, when to get out of a trade or even when to hang unto a trade you are already in. This information can be highly valuable in knowing that the prevailing trend might reverse or continue.
Download your 82 page candlestick guide here complete with strategy flash cards all free. This is the best candlestick guide in the market and you don’t need to waste your money on buying a guide because this candlestick guide is a complementary gift for you from the Options University.
Metatrader EA Enhances – New US Forex Regulations Go Into Affect
Metatrader Indicator Updates – New US Forex Regulations Implemented
Qualification: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.
Have you reviewed the new forex regulations taking affect in the USA that will change the way you are doing trading?
If you are at any Metatrader Broker based in the US at InterbankFX, FXDD you ought to get in touch with them and find out how this will affect your trading. If you desire to continue to do limit orders, hedging and other trading methods, you’ll want to consider shifting to another brokerage.
The Time Is Right Now To Turn To A Different Metatrader Forex Broker
On the whole persons want to maintain with what they’re doing and not have to be bothered about learning a total new set of rules concerning entering orders. The good news summary is you can still do this. Here’s a record of the very best places to go on with your trading via the identical EA’s and same trading tools you are used to.
Metatrader Forex Broker – Best Trading Platform for Forex
What is a Metatrader EA? It is a forex broker that uses our software as its trading platform.
Here’s a list and you can accept the best Metatrader Forex Broker which are using the Metatrader Brokers 4 or 5. The list we are showing below meet all of our criteria for regulation, security of funds and trade execution.
FXCM
http://www.bestmt4brokers.com/fxcm-open-account.htm
This firm is one of the world’s largest and most well renowned Metatrader Brokers and they offer the Forex Metatrader as well as other platforms. You can do hedging with them and the stop and limit orders too as they have a UK division.
Gain Capital.
http://bestmt4brokers.com/gain-open-account.htm
Gain Capital also know as Forex.com is a USA Metatrader EA that has a UK branch as well. They are a well known Metatrader Forex Brokers that does a lot of Television advertising and has a big client base. You can do hedging with them and the discontinue and limit orders too.
Alpari U.K.
http://www.bestmt4brokers.com/alpari-open-account.htm
Alpari U.K has been around the longest and is a Metatrader Broker and which has a good status for having immediate execution. They can only open up accounts for non-USA customers.
FxPro
http://www.bestmt4brokers.com/fxpro-open-account.htm
FxPro has achieved great popularity with their low spread and good execution. They are a well known Metatrader Expert Advisor and can open accounts for nearly any country’s residents.
All of the brokers mentioned have a UK branch as well as their USA branch so it is easy to relocate. For example FXCM and Forex.com have a UK branch that has the Metatrader Indicator 4 available. If you are using one of these brokers you will still need to open a new account at their UK branch and reassign your funds over to it. Relocate your account and open one with Metatrader Broker 4.
www.bestmt4brokers.com website shows many examples of the best Metatrader Indicator for forex trading.
Dax Futures Forex Signals
Learn Futures Trading.Dax Futures is, like, the place to be (if you’re looking for lucrative markets, that is). In case you didn’t know, the Dax market offers impressive liquidity AND is estimated to have a daily volume of about 200,000 contracts. It’s traded from 8:00AM to 10:00PM in Europe, which is 2:00AM to 4:00PM Eastern in the United States – but not to worry, with NetPicks’ Dax Live Signal Service, you’ll only trade during the best hours. Know Dow Futures.
And talk about volatility, for the well-trained trader (or in your case, the well-LEAD trader) there are literally dozens of profit seeking opportunities within a single session. And with the Dax daily price range around 80 points, even day traders can pick up a good 30 to 50 points in ONE move.
Like Netpicks Forex and eMini Futures Live Signal Services, Netpicks offer clear and reliable analysis from the get-go. Netpicks Head Traders actually trade our tried-and-true Universal Market Trader Strategy that focuses on sound principles to keep your profit potential soaring while keeping a watchful eye on risk management. Try Netpicks Forex Signals free for two weeks.
And just check out our results…
*500+ DAX Futures Profit Points in 2 ½ Month (Equals $12,500.00 EUR per contract traded!)
*Over 72% of all trades called live are profitable
*88% of our Trading Sessions have ended profitable
The beauty of the Dax Signal Service is that you’ll have the chance to seriously benefit from the UMT Strategy (retailing for upwards of $1,995.00) without the time-commitment of learning and mastering the system from the very beginning. So the Dax Signal Service is PERFECT for novice trader or traders that want to get into those markets but can’t commit to the time involved in learning a new system.
With the Dax Signal Service, Netpicks promise you the ultimate in convenience! Like,
*EXACT Entries and Exits given for ALL trades
*Only trading during the best and potentially most lucrative times
*A no-stress trading experience – because Netpicks will do all the heavy-lifting for you
Netpicks mantra is, “Get in, get out, get done.” Who has time to be trading from opening bell to closing bell? Certainly not us! Netpicks have got a bigger-picture perspective and encourage all of our traders to trade with a purpose… see your wins and quit while you’re ahead so you can spend time on your life, your family, your friends and hobbies.
And to top it all off, Netpicks wants to give you the exclusive opportunity to try out the Dax Signal Service for two full weeks… at no charge or obligation to continue on with them.
There are alot of Signal Services out there, but not every service is a great fit for you. But with a 2-week test drive, you’ll be able to determine if Netpicks worth the effort (which is minimal at best!).
Nothing is off limits with your 2-week trial – you get full access to everything. Plus, there’s no obligation (because we’re not fans of the evil ‘o’ word). So start your trial today… who knows, the Dax might just be your winning market!
FOREX Bling review
Know forex bling.There are very few times that there is a true match in the forex niche…What do I mean by a “true match”? Well, quite simple…a really good performing forex bot developed by a real KNOWN professional, spitting money on a daily basis WITH live real money proof! I will expand on each of the above elements in a bit but here are some stats that I am sure will warm you up a bit:
-> Over 200 trades in the past 2 months
-> Over 98% accuracy rate on a LIVE real money account.
-> REAL account-doubling proof
-> Very small losers (forget about those robots with a high accuracy rate but the first loser = game over!)
Go to this webpage, scroll down a bit and you will see solid proof of what true, “daily basis” forex income looks like. This thing is truly unbelievable! Discover a revolutionary new forex robot.
NOTE: not only is this real money, but the account statement is hosted with an independent party called MT4LIVE. This is the REAL DEAL. And by the way, the live account details refresh every 5 minutes! This is a real Forex traders dream:
Income on a daily basis…
No waiting, no drawdowns….
As you can see from the live account running on the independent hosting service… real money – day in and day out! Meet Yohanes R. Gagahlin – Real Forex Professional . It was about time that some professionalism came into this niche…Enough of all the B.S. hyped up worthless robots and products that are so common and popular in this niche. Try Netpicks forex signal service free for two weeks.
Yohanes R. Gagahlin, the owner and developer of this spectacular automatic forex solution, is a real professional when it comes to forex. This guy has actually run a successful fund management company called Switch Capital Management since 2006. Not just that, he regularly appears at very important and key forex seminars around the world. You can read more about Yohanes and his level of professionalism by going on the website.
It has been a very, VERY long time since a product designed by a real professional, with real live proof was launched into the market.
Multi-Strategy Robot = Impressive Performance!
If you haven’t seen the live account statement on Johanes’ website, trust me that once you see it you’ll understand the following very well…You do not achieve those kinds of results by just employing a robot with a normal, common-or-garden strategy… No way! Outstanding results like these can only be achieved by outstanding ideas and concepts and that’s where this gets so interesting to be honest!
Johanes has built an automatic trading solution that focuses on extremely well developed strategies that are not limited to a single market behavior/condition. I am talking about an automatic trading solution that captures the absolute best trading opportunities when it comes to scalping, trend and breakout trading… all being done simultaneously. Everything is explained on Johanes’s website.
Thursday, October 1, 2009
Tracking the Forex Signals Easily
Earning profit in the foreign exchange looks daunting to a lot of investors. It seems like a world with worldwide business community who has Swiss bank accounts and move dozens of money with the push of a button. Nevertheless, these traders force out to make good revenue with just a bit of capital investment by knowing how to capitalize on the highs and lows of the market. You are able to acquire how to do the same matter, so don't be afraid.
The internet has revolutionized the forex market. Traders in the market utilize the internet to help them know when and where they should trade. Most beginners think that forex traders are constantly monitoring the market to watch the fluctuation and get in at the exact right moment. Actually, many successful forex traders spend their time with other business ventures. They understand the market because of their experience. That experience tells them when to trade in. Then they use the automatic forex signal alert system to let them know when to trade. This system will utilize modern communication to let traders know when to buy, sell or hold.
The automatic forex signal alert system is a signal system that informs traders of certain changes they should be aware of. A trader can act with confidence because they will know about market changes and be able to take advantage of those changes. There is also the benefit of being able to make real time buys and sells. It will send you messages over email, an interface on your desktop, text on your mobile, or through Short Messaging Service. There is no need for your constant monitoring of the exchange.
Even if you use the forex signals, you must also analyze the data. The signals will simply give you data about lowest points and highest points. You need to analyze this data to understand the best spot to buy and the best to sell. This is just information for the investor. It saves research time. Time is valuable in the market. The data should provide traders with enough knowledge to pick up trends. Making the investment is still up to the individual. Some people make the mistake of thinking technology will do the work for them. Not true. Technology makes it easier to study relevant information. It cuts down the workload and gives you the gems. You still need to do the work to polish those gems. The Forex account signal will help give you the gems; the elbow grease is up to you.
Learn the advanced forex pips spread trading strategies easily at http://www.forextradinginnercircle.com/forex-options-trading-secrets-revealed.
Article Source: http://EzineArticles.com/?expert=Sean_Jr_Miller
Automated Forex System Trading - 3 Things an Automated Forex System Trading Tool Must Have
If you want to be a successful in the Forex market, you may want to find an automated Forex system trading program. There are various software packages available that offer trading advice and make selections for you.
How do you determine which tool is right for you? An automated Forex trading system should offer the following:
- How to Read Candlestick Charts - This is one of the most important aspects of this type of software program. It is imperative that the tool shows you how to read and interpret candlestick charts.
- Assessing Market Direction - Another important aspect of this type of tool is to help you analyze the data and make a determination as to the direction the market is likely to move in. Ideally, you would want the software to offer an opinion as to whether the market that you are trading in will continue in its current direction, reverse its current direction, or if it is just experiencing a temporary, short-term correction.
- Market Timing - The way to make money in the Forex market, or in any market for that matter, is to know when to enter and when to exit trades. It is important that the software that you purchase has indicators that show good entry and exit points.
Find the right automated Forex system trading, and you will be well on your way to making money trading in the Forex market.
Click here to find more information about Automated Forex System Trading
Article Source: http://EzineArticles.com/?expert=Lane_Wright
How to Read Candlestick Charts
If you want to trade in the forex market (or any other market), you need to know how to read candlestick charts. Successful traders, both professionals and amateurs alike, use these charts to improve their trading results.
The chart is essentially a bar chart. Each bar shows the: the opening price, the closing price, the high price and the low price, over a predetermined time period. This time span can be adjusted to show any period. It can show long periods, such as days, weeks, months, or even years. It can also show very shorter time periods, such as partial days, hours, or even minutes.
So how can you use this chart to improve your trading performance? The candlestick chart is a great tool for identifying market direction, which can help you to identify the market's direction. This will help you to know when to enter and just as importantly, when to exit your trades. Knowing when to get in and when to get out of trades is how you can maximize your profits.
The candlestick chart is among most effective ways in which to determine how other traders feel about the market. Traders in all sorts of markets have used it, literally, for centuries. This charting method remains an important and frequently used tool today. The chart is easy to understand, once you know what you are looking at.
This is just a brief overview of how to read candlestick charts. Before trading in the forex, or any other market, you should gain a deeper understanding of how to better use this tool. Once you do, you will see your trading results improve.
Click here for more information about How to Read Candlestick Charts
Article Source: http://EzineArticles.com/?expert=Lane_Wright
A Forex Review Of Forex Megadroid Is Forex Megadroid A Huge Money Maker Or A Scam
A Forex Review Of Forex Megadroid Is Forex Megadroid A Huge Money Maker Or A Scam
The system Forex MegaDroid is one of the most popular and best selling items of its kind ever This Forex review will attempt to explain the reasons behind this tremendous accomplishment This currency trading system is a software product specifically planned and built to help private investors exploit the FX markets for profits . .Due to the achievements it has experienced at exactly this essential factor is the reason behind its explosive growth Today there are well over one hundred Forex trading systems that an individual has to choose from Some of them are very good products, but very few of them are exceptional as is this item at the all important factor of creating income for its users . . .It was developed by Albert Perrie and John Grace with a combination of 38 years of experience as highly lucrative professional currency traders Since a software system is essentially just an extension of the knowledge and experience of the people behind the project it is extremely important that those people are the best of the best in there field Fortunately for all of its clients Albert and John certainly filled there rolls very well . .During testing this product performed excellent That was the only way to put it, since it doubled the first and only funding of my account in approximately fifteen days It was able to do this because of “Reverse Correlated Time And Price Analysis (RCTPA,)” which is a propriety concept that is only available with this product . .The conclusion of this Forex review is that if you don’t have Forex MegaDroid in your weapons arsenal, then you should as soon as possible It is a very powerful income producer for it clients and that is the principle reason for its worldwide success When you have a few minutes, why not check out its website and see for yourself its capabilities?.
Source: www.rsstnx.com
Forex Robots - Can Small Forex Investors Utilize Automatic Forex Trading Robots Efficiently?
The foreign currency exchange market is unpopular to small investors but it is currently the largest and also a very lucrative area of trade and exchange. About three trillion dollars a day is being traded in foreign currency. Foreign exchange, or Forex, usually involves great risk, but with the right timing, tools and data, one can hit it well in a single trade. There are many traders who have lost a lot of deals in the challenging currency exchange market. But advances in technology and breakthroughs in highly technical programs and software have changed how the market is played. The emergence of Forex robots have made it easier for Forex traders to make more money at a shorter period of time.
How is that possible? The Forex robot does all the work from deciding to trading. Foreign exchange consists of complicated mathematical data and involves trading twenty four hours a day with international currency markets all over the world. Political, economic and business factors may influence the currency situation of each country, and the trader should always be aware of such events that may affect the outcome of trading. It is not possible to win in a random foreign exchange trade without a thorough understanding of the currency market situation, not to mention all the Forex rules and strategies. These are some reasons why an ordinary investor hesitates to go into the trading world. The knowledge and information required, plus the time and effort that one should put in it should be substantial for a successful financial trade. The Forex robot can do all these for a small investor and even for beginners in the trading field.
The Forex robot does all the thinking, analysis of recent algorithms and market behavior, and then trades according to the data it has gathered. It does this at a very fast continuous rate, faster and more accurate than a human could do. Forex robots have totally changed how foreign exchange is traded. These robots were developed by experts in this field and replaced all human intervention in the whole foreign exchange process.
There are various Forex robots available and it is up to you to do a research on which one works best for you. It usually installs in the computer in a few minutes and with very simple instructions. With the right Forex robot, foreign exchange is made simpler and less complicated. A small investor can definitely win and easily increase his profits with these simple tools.
Guaranteed 95.82% Accuracy, Best Forex Robot.
Forex MegaDroid Indisputably Proves A Robot Can Trade With 95.82% Accuracy In EVERY SINGLE Market Condition And At Least Quadruple Every Single Dollar You Deposit. 38 years of combined Forex trading experience delivers Megadroid RCTPA Technology.
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As seen on CNN, CNBC, Forex Traders - Forex Megadroid Platinum Edition (Enhanced Edition).
Article Source: http://EzineArticles.com/?expert=Eric_B._Jose