Something to keep in mind when you consider where the currency markets will be heading in 2009.It appears that the Obama stimulus package will contain a $250,000 write off for business expenses. This is huge. Smaller businesses, when generating expenses, are not generally spending their money outside of the US. Vehicles, machinery, tools, raw goods or whatever else is eligible for this tax change will quickly represent income to other domestic businesses.This is big.Additionally, it was just reported today that mortgages on primary residences will soon be allowed to be adjusted during bankruptcy. According to some pundits this is a very large win as it is actually supposed to be better for the banks -- compared to a foreclosure. Not to mention the fact that if this done, greatly reducing foreclosure events, the downward pressure on housing prices will be released.This is also big.Finally, though it sounds like an insignificant item, Obama mentioned the need to restore trust in the financial system. Perhaps you are not aware, but the only thing that allows people to trade and exchange money via markets is trust. If you don't trust that you'll get a fair trade, receive ownership, or be protected to some degree from swindles and excess, then why in the heck would you put your money at risk?This is perhaps the biggest item. However, don't be surprised if this item turns into political fodder as ideologues argue against it. What these ideologues often forget is that free markets simply require a level and trusted playing field. Rules are fine -- as long as they're enforced reliably for all players.Don't forget that!

FOREX RethinkThough I've been trading the AUDJPY on a 15m chart quite a bit, and with reasonable success, I am thinking about moving to a larger time frame. Well, to be accurate, it's not so much that I plan to use a different chart. What I really want to do is accumulate positions over a longer period of time.Do you know why?Because, if I can accumulate a bunch of positions that are at some level of profit, I can make incredible gains during a longer term market move. For example, if you have an appropriate part of your account at risk, plus you have multiple in-profit positions protected by a stop loss, all of them will bring returns during an extended upswing.Accumulation StrategyTo accumulate in-profit positions I have my charting software chart my average position price. When prices are above this level I'll sell a profitable position that was purchased above the current average price. Then, when the market moves south, I'll buy a new position further down.It's important to use small enough positions when using this strategy as you may end up accumulating some trades while waiting for a suitable price swing. Using small position sizes gives you the flexibility to open and close positions, some of which may be unprotected, while you wait for a major move in your favor.I find this type of trading improves my patience. You will end up thinking it may be worthwhile making another trade and then say, I'll wait for it to hit point X instead. Either the price will hit X or it must move in my favor! With this viewpoint it is very easy to wait and see what happens. Doing this, and catching a new low price point, for example, adjusts your average price and makes it easier to find a suitable position to unload on an upswing.Accumulation ResultsBased on my own experience I can suggest that your interim results will be reduced. You won't be entering and exiting trades as often nor will you be as concerned about capturing apparent tops and bottoms. However, once you find yourself on the right side of a longer term swing you can pull in significant profits all at once.However, keep in mind, you are at risk of a major movement against your trades. You must be willing to trust a significant top or bottom -- to the point that if it fails you could end up suffering a margin call. This isn't for the faint of heart. Of course, you could always create a small sub-account specifically for implementing this type of strategy when you think you do have a known top or bottom.

Yen today once again demonstrates the growth and Sean Kallou, currency strategist Westpac, notes that, while this can be partly attributed to the liquidation of short positions against the backdrop of falling stock market, is also to draw attention to the fact that cash flows have recently become more positive for the Japanese currency. He drew attention to the fact that the Ministry of Finance of Japan indicated to reduce the interest of Japanese investors for foreign assets, while the Japanese assets in the recent demand from foreign accounts. Meanwhile, according to Kallou in the coming weeks we will probably see another bout of unrest on the prospects of strengthening the world economy that would support an increase in volatility in the market. The latter would be a very positive development for the Japanese currency, although it is noteworthy that in a couple of the dollar increase in the yen may be not so active. Moreover, Kallou drew attention to the fact that the historical volatility of the dollar, with an increase in the use of the Great location bulls than the yen, the U.S. currency was still enjoys great popularity as a safe haven asset, and another wave of risk are likely to support the growth of the dollar / yen

I've noticed that the Forex markets move both fast and slow.If you are busy sinking money into some carry positions, the market might suddenly decide to go sideways, or perhaps down, for the next week. So, you go underwater and don't get to lighten your load on subsequent upswings.However, if you are light in the market, a piece of news will drop and leave your jaw on the floor as you miss out on a quick 100 pip swing. Obviously, if you play the news, it will come in on the wrong side or the market with interpret it in a way that surprises you in order to throw you under the wheels of the money train.In short, it's not easy getting into the market safely with any quantity of net asset value.The problem really arises when you take small bites, getting into the market without risking all that much, and then find out that you were wrong. The market will wiggle around a lot, near your entry price, enticing you into thinking it will eventually recover, and then sink a bit more. If you put in a stop loss, the market will hit that, then bounce back up -- taunting you with a profit that you can't participate in.It's simply devious.So, how do you get into the market? How do you accumulate a set of carry positions that are in profit? When do you enter the market? What signals should you be following? As I've noted before, technical analysis of the carry pairs is very tricky, as they are driven by market movements. These pairs are happy to run roughshod over your trend lines any time the markets are euphoric, nervous or calm enough to lure you in.My suggestion is for you to work out the resistance points. As you approach a resistance point you can see how the pair reacts. If it stops or starts to bounce, you might feel it worthwhile to enter a position. You are basically risking the pip spread plus the distance to your stop loss. You simply have to risk a small amount of capital in order to play.The key is pick your entry points when you have the best chance of seeing an upturn. It's not easy.

Well, things have gone poorly just lately. Not because of anything that I've been responsible for, but because I was the recipient of an "insufficient funds" check. As the money I was planning to use over the holiday period was rudely removed from my account I was forced to withdraw a large portion of my Forex account.I'm quite peeved!Especially since I had some good in-profit positions protected by a stop loss. After I had to unload for a small profit the market continued to rise for a couple of days. Of course, if I was still in during the Thursday evening sell-off, I would have been taken out for sure, it still would have been at a higher profit level.Oh well. There isn't much I can do about it. As it is, I'm searching for a job and hoping to soon be playing the Forex in a serious way. Up until now I have only been working with an extremely small capitalization. Upon resuming my career, which I expect to happen early in the new year, I'll be able to accumulate a reasonable stake and put my recent "education" to work.

Forex trading isn't easy, it's about as risky a financial endeavor as you can legally participate in.Wait, let me rephrase that... foreign exchange trading is easy, success isn't. Yeah, that's right, that's my tag line. It's true.If you are looking for the easy button, here are some platitudes for you:
Buy low and sell high.
Have inside access to national economic reports.
Witness a major international incident prior to the news reports.

If you are willing to work hard, be patient, and work to preserve your capital, then here are some more helpful suggestions:
Wait for a buying opportunity before entering a market.
Manage your risk via position size and stop loss orders.
Learn to recognize when you should not be trading.Waiting For A Buying OpportunityIf you don't know how to recognize a buying opportunity, then you need to be playing with funny money still. Perhaps there has been a big movement recently. Perhaps there is a news release on the way. Perhaps you have noticed a trend and your indicators are giving you signals. Whatever the case, don't just throw your money at the market and hope for a profitable move.Managing Your RiskIt's easy to get fully invested. Heck, if you are careless you can do this in one trade. If you aren't careful you can blow up your entire account within minutes. Sure, you do have to take a risk every time you enter the market, but you don't have to take huge risks in order to achieve significant returns on your money. Make sure you are around for the long haul because eventually the market will make a move in your direction.

Generally, when you are having a bad day, whether because of the markets or otherwise, it is a good time not to trade. If you are bored, stressed, emotional, desperate , depressed, or angry, you are very likely to make poor decisions. All it takes is one unlucky rash decision to lose your capital. The forex trading game is one that requires vigilance and discipline. Know yourself.Anyway, today is Sunday, so I can't trade just yet. What do I do on Sunday? I think about potential trading strategies. I look forward to the day when I have real capital in the markets and am making a serious income. I review my previous ill fated forex trades. I write in my blog.

Today's traders must keep informed of world events which impact the Foreign Currency Market moment by moment. We have compiled the following continuously-updating worldwide list of Forex Headline News.A very convenient way to jump directly to this page on a regular basis is from our Gift Screensaver (left menu). With inspiring quotes illustrated by beautiful nature photos, this quality screensaver provides a one-keystroke method for traders to stay up-to-the-minute with all Forex News (Hitting the F1 Key brings you instantly back to this news page, anytime the screensaver is on your screen -- which is not when you are in a trade hopefully).

This must be one of the questions that confound people who believe deflation is coming. I am not one of them, as I look at the 3-year weekly chart of crude oil.The chart looks very bullish. On a weekly chart, exponential moving averages (13-EMA and 34-EMA) seem to work well; their crossovers seem to indicate a new trend well. The crossovers of these moving averages also coincides with very slow stochastics (60, 3) crossing 50.Right now, 13-EMA is just about to cross above 34-EMA, and both EMAs are turning UPWARD. RSI looks well supported at the trend line. I don't like slow stochastics still very far from 50 and turning down slightly, but since this is a weekly chart I'm willing to give it several more weeks.Besides, the formation since the last EMA crossover (September 2008) looks like a cup and handle, with the handle forming above 50% (barely, but still above) retracement from the bottom to the price immediately before it started to tank in earnest.If this formation breaks out of the handle, the target price would be the handle high ($73.90) plus the depth of the cup ($38.77), which will take the crude oil to $112.67, a 69% increase from today's close at $66.73.With dismal news all around us again, this number looks literally fantastic (i.e. that which exists only in fantasy). Or crude oil price movement is telling us it is inflation, not deflation, that's coming our way

Yen reached their highs for the past two weeks, after the emergence of that economic statistics in Japan had fallen short of expectations, and regulatory authorities in the United States closed the five banks. As a result, investors started to close long positions in the yen crosses from within the traditional flight from risk. The most significant Japanese currency strengthened against the Norwegian krone and the Australian dollar. The negative trend in equity markets also contributed to the denial of risk transactions. "It is clear that the currency markets following the stock indexes," - note the dealers. "When stocks are falling, people are buying yen." However, at present euro / yen was confronted with a demand of 132.80, following a breakthrough will result in the movement to the base of the cloud Ishimoku at 132.50.Soglasno average forecast in a three-month dollar / yen could reach the level of 100.75, while euro / yen - 136 .

The British currency remained under pressure across the whole spectrum of the market, while paired with yen this helps the overall strengthening of the latter against the backdrop of rising tensions in the equity markets, and now the pound / yen traded around Y154.39. Bulls managed to find support around Y154.20, but currency strategi Nordea sees risks preserving the dynamics of a pair of negative and point out that growth is now trying to use to find opportunities for sales. The bank previously opened a short position of the foot, at Y155.63 from Y160.50, and the original intent of the area Y148.00.

While reading a recent CNBC article about current events something clicked for me.Here is the passage:
The dollar rose broadly on Thursday as yields on 10-year U.S. government bonds jumped more than 50 basis points in the last two weeks, drawing Japanese investors into overseas assets like global semi-conductor stocks, banks and U.S. junk bonds, according to Reuters.Do you remember the massive unwinds that occurred during the past year? Do you remember all the talk about money heading towards Japan due to risk aversion?Pay attention, this is significant. It's also backs up my much touted long term notion that carry trade currency pairs are in for a recovery.Given the quote above what do you think will happen once the jobs numbers start to turn around in the US economy? I'll tell you what I think. I think interest rates and yields will start to rise. What do you think all that money sitting in Japan will do if there is a hot US economy paying good yields? I suspect that it will leave Japan in order to earn good returns.Guess what that will do to the Yen? That's right, it will drop like a stone. When that happens you'll see carry trading pairs rise massively.Okay, I realize this may be a year to two away, but as long as we do eventually get a worldwide economic stabilization this is what is in store for us. Anyway, if you are a rookie, be careful, as you can't simply make long term bets willy-nilly. The market can always move against future expectations long enough to blow up your account and it often does so as soon as you throw caution to the wind.What this means for me is that I may be more willing to accumulate carry trade positions at moments of opportunity. Keep an eye out for fundamentals and watch leading economic indicators such as the Baltic Dry Index or the price of copper.As you can see these indexes are rising. However, they are still at historically low levels. Are we just in a bounce with respect to worldwide economic activity or are we simply coming up from a recent bottom? You decide.

QMan at Tickerville reminds you to trade the traders, not the macro fundamentals...
Here's the weekend Tape Talk.Some of the sectors he thinks attractive happen to coincide with mine. Specifically, he seems to be looking at sectors which have been dismissed or neglected by traders: commercial real estate (people just want to short), financials, commodities (industrial metals, oil, but NOT ag). He likes retail, too. NOT because of fundamental reasons but market psychology (i.e. other traders).If you haven't noticed, in this 2-week rally, commercial real estate and financials didn't materially participate. Check the charts of ETFs - IYR for commercial real estate, and XLF for financials. They basically went sideways.I have NRO (commercial real estate) and FAS (financial 3x long), and I've been sitting on MTL (iron ore) and DXO (oil). I hope Qman's right.In the video, he said one interesting thing. He said the bearish patterns like head and shoulders ended up breaking to the upside, instead of down. Maybe that's a sign of a bull rally. Or maybe it's because of High Frequency Trading feeding frenzy...If this rally has more legs, "everything will go up, at least initially", according to Quint. I agree. Just know when to quit. (If that's easy....) Whatever will be, will be

Major indices ended the day in red, although S&P 500 momentarily popped into green. But that didn't deter financials, and particularly those financials whose share prices have been reduced to bit sizes in the past year. If you owned any of these stocks, congratulations! (I hope you bought them in the past 4 months, though.)

Those of you who held on to FRE (and FNM to an extent) despite a dump on Friday, congratulations again.FRE (Freddie Mac) had the most violent 5 trading-days since it was virtually nationalized in September last year. Monday's jump was due to the earning report AH on Friday last week (FRE made profit, for a change), but the stock kept going up AH Monday and ended at $1.81, 200% up (or triple) from Tuesday last week.Freddie and sister Fannie are practically bankrupt. And yes, there's an encouraging (I suppose) talk of setting up an entity to absorb Freddie and Fannie's bad assets. But this is just a talk at this point. I have no idea where FRE or FNM will go from here. Their longer-term charts don't mean much, because, as I have just said, they are practically bankrupt and technical analysis means nothing.Retail investors who are holding FRE and/or FNM are irrationally and extremely bullish, saying their stocks will go to $5. That sounds wild, but FRE was indeed $5 one year ago

The Baltic Dry Index, which tracks shipping costs and is viewed as leading indicator for commodity prices, has had its worst week since the peak of the financial crisis last October, as Chinese demand slowed."The index fell from 3,350 to 2,772 this week – a fall of 17.2pc - as imports of iron ore and coal slowed down. The index is now 35pc lower than its 2009 high, hit on June 3."Earlier this week Ian Ashby, head of iron ore at miner BHP Billiton, said at the Diggers & Dealers conference in Australia that Chinese restocking of iron ore was at an end."Mr Ashby said that supplies at the country's ports were enough to sustain a month of consumption."However, some believe that imports have slowed down as Chinese steel mills are still locked in talks over the pricing of iron ore imports over the next 12 months."Hmmm.. I still have MTL, a Russian iron ore company, which seems to be stalling at $12. It passed that point in June, only to head back down, and back up again and headed back again in early August. I still don't see anything technical wrong with the stock, but with the macro information like Baltic Dry Index and Chinese hoarding to end, I'd better be careful, and not be too greedy.

During the last few weeks of topsy-turvy price movements I've been playing it safe. I like to buy carry trade pairs, but they've been heading down a lot.Now, the big question, when will things start to turn around? A few of the pairs are getting into historically low valuations. For example, take at the GBPJPY pair on google finance -- click the 5yr option when it loads.Sure, we could set new lows, perhaps for a months or years, but the odds of the UK having lower interests rates than Japan seems rather extreme. At some point, when things do finally settle down in another year or more, the GBPJPY will start to get attractive.Other pairs, such as GBPUSD or EURUSD, which represent a bet against the US dollar make me nervous. While there is a possibility that some parts of the world, notably Australia, New Zealand and Asia, can avoid a recessionary period it's also very possible that the sinking US dollar will create a large enough trade advantage to shift the slowdown from the US to other countries as their own companies find it harder to compete internationally.Anyway, I don't know how it will play out and from what I've learned buying a currency without having a clear notion of what you expect to happen is akin to gambling. Sure, you can be wrong when you believe something, but at least then you aren't throwing your money at the toss of the dice... and often it is possible to figure out what is going on to some degree.So, for now, I'm keeping an eye on the JPY crosses. Perhaps the AUDJPY, EURJPY, GBPJPY and CADJPY will find themselves showing up in my account?

If you are a beginning forex trader you might be wondering what exactly a pip is. Everyone throws around the lingo but hardly anyone ever stops to give a good explanation that makes things clear for the aspiring trader.Generally, a pip is explained as the least significant digit of a price quote.So, if the US Dollar (USD) trades at 120.19 JPY (Japanese Yen) then each unit of change, such as a an increase increase in value of the USD to 120.20 JPY, involves a one pip change in price.I'm going to step out on a limb and say that a PIP is a price increment point. However, the more confusing official terminology is apparently percentage in point. Which is less confusing? Either way, it's a single point of change in the quote price between two currencies. Now, while this is very simple, it can be confusing at first when you find out that different currency pairs are quoted to a varying number of digits.By way of example, here are some relatively current price quotes for various currency pairs:
AUD/JPY 093.29 AUD/USD 0.8574 EUR/USD 1.4668 EUR/JPY 159.62 GBP/JPY 198.05 GBP/USD 1.8204 NZD/USD 0.7001 USD/CAD 1.0635 USD/JPY 108.75 ,Unfortunately, it is possible that your trading platform will display partial pips! If so, I'd recommend turning that extra level of detail off when you are just getting started. Being clear on currency price and profit/loss calculations will be much more important to you as a beginner than worrying about price moves in the partial pip range.Why such a feature is enabled by default is something that mystifies me. I guess people in the forex industry soon forget what it is like to be at the beginning of your trading experience -- things can be confusing at first.

As I've written before it is quite easy to become a currency trader. The harder part is being a currency trader that doesn't lose money. You see, according to the scuttlebutt on the forums, about 90% of new traders end up losing their money to the market.Are you thinking about trying your hand?I'm not here to talk you out of it. I myself am a part time currency trader. By day I work at my office job and by night I fight crime with a mask and cape. Wait, no, that's not right. By night I trade online when family duties allow me to squander a chunk of time.Trading part time has it's challenges. You will see endless market movements that you did not participate in. You will miss opportunities to open or close a position even though your ideas about what would happen next were proven right. In fact, a very large part of trading well involves being able to deal with the psychological aspects of trading, whether part time or not.If you read other posts in my blog, such as this one , you'll see that I recommend working with very small trades. If you take larger trades, relative to your available capital, you'll find the emotional stress greatly magnified. It is very difficult to make good decisions as you watch your capital evaporate before your eyes.Nothing will drive you from the market quicker than watching your capital shrink, panicking and saving what little you can, and then watching the market reverse leaving you without a stake. Or, perhaps worse, you do get back in after seeing a healthy rise, only to watch the market reverse yet again and wreak havoc on your capital once again.It happens. I'm sure it happens a lot.Did I mention that I'm not trying to talk you out of becoming a currency trader? It certainly isn't impossible to trade successfully but you really have to understand that there are many different ways to be unsuccessful. One very easy way to fail is to enter the market during a period in which it is easy to understand market behavior, think that trading is quite easy, and then have the market turn upside down and brutally fleece you.Let's see. Yes, another painful lesson is developing the discipline to set stops and then have them tripped trivially, while the market does in fact go in the direction that you expected. Of course, this sets you up for the opposite, hanging on to a trade endlessly expecting to go as you expected, while it sucks up more and more capital.My advice, do become a currency trader. Take your time. Learn with a practice account. Eventually, switch to a micro or nano account and trade with very small amounts of money. Continue to play with very small capitalizations until you have blown up your account once or twice -- this happens when you get a margin call and all your funds (except active margin) are forfeited.Take the long view. There is always going to be another opportunity. No currency pair moves only up or only down. When trading part time you must either make accurate predictions or tread softly enough that the market can't move far enough to cause a margin call.Anyway, to get into some information you can act on, if you are totally new to the game you'll want to know the following:
Most, if not all, companies that offer online foreign exchange trading provide free forex demo accounts. These practice accounts are the same as live accounts except of course that you don't trade real money.
A currency trading platform is simply a fancy name for what is usually branded currency trading software. This software will let you view charts for various currency pairs, add indicators and execute trades
Forex trading is global. You can trade starting on Monday moring in Asia until Friday night in New York. Trading is 24 hours a day during this period though each trading session will offer differing market volume and behavior.If you are looking for a place to open your first forex demo account I'd suggest Oanda. To ensure that you don't think I'm compensated to say that I'll ask you to search Google to find them. They are a reputable company that allows you to trade with very small amounts -- which is great for starting out.

GOLD continues to be a popular form of investment right for a very long time. People prefer to invest in gold because the returns are usually high and above all gold is a very famous ornament. Even if they don't get good returns they wont face losses because their cosmetic purposes will be served. Some tend to posses gold even as a matter of prestige. It is regarded to be a good source of investment as it controls inflations and even helps you to raise finances in the future.
Gold Markets!
Gold is traded in many markets around the globe. London and New York are supposed to be large markets for gold and they function through the day. It is worth mentioning that Kong Kong and Zurich market are also open to trading for 24 hours. The gold market functions like a stock exchange in l aspects of buying selling and determination of prices though the fact remains that different factors influence the price.

Gold is currently trading at a pivot point and will most likely make a sharp move higher or lower from here. This has many traders on edge right now. I prefer to stay in cash during times like this and jump on the wagon once a direction has been confirmed and I have a low risk setup.

Learning how to trade gold and gold stocks can be done very easily if you know what to look for and have patients. I don't trade gold every week but that's what I really like about my trading model. It's simple and I don't have to be glued to the computer every day.
I can quickly look at the charts and know if I could have a potential buy or sell signal with a few days. If I do then I watch the charts, if not I focus on answering my members trading emails and look for other possible trades in other sectors like the Nat Gas and Russell 2000, etc…
As you can see from the charts above gold is at a crucial pivot point and only time will tell before we know where gold is headed. Once we have a direction I will be looking for a low risk setup which is a trade with less than 3% downside risk for putting our money to work.

Stock trading did not begin in London until 1688.
On May 17, 1792, twenty-four stock brokers signed the Buttonwood Agreement outside 68 Wall Street in New York under a buttonwood tree. On March 8, 1817, they were renamed into "New York Stock & Exchange Board".
In the 19th century, exchanges (generally known as futures exchanges) were established to trade futures contracts and later options contracts.
NASDAQ: National Association of Securities Dealers Automated Quotation or NASDAQ was established in 1971. This was the first stock exchange to introduce the concept of electronics in stock trading. It is one of the most efficient stock exchanges in the world and it surpassed the average trading volume of the NYSE in October 2004.

All time we hear about about American Dow Average and other averages like the S&P 500 or The Russel 2000. So what is it ?Basically these are “market averages” to tell you how companies traded on the stock market.
The Dow Jones Industrial Average is simply the average value of 30 large, industrial stocks — one of several stock market indices to gauge the performance of the industrial component of America’s stock markets.
The Dow Jones Industrial Average is also called as DJIA, Dow 30, or informally the Dow Jones or The Dow.
The S&P 500 is the average value of 500 different large companies. The Russel 2000 tracks the average of 2,000 smaller companies. Dow Jones is the average value of 30 large, industrial stocks.
Individual components of the DJIA are occasionally changed as market conditions warrant. They are selected by the editors of The Wall Street Journal.

As of this writing , The Dow Jones Industrial Average consists of the following 30 companies.
1.3M
2.Alcoa
3.American Express
4.American International Group
5.AT&T
6.Bank of America
7.Boeing
8.Caterpillar
9.Chevron Corporation
10.Citigroup
11.Coca-Cola
12.DuPont
13.ExxonMobil
14.General Electric
15.General Motors
16.Hewlett-Packard
17.Home Depot
18.Intel
19.IBM
20.Johnson & Johnson
21.JPMorgan Chase
22.McDonald’s
23.Merck
24.Microsoft
25.Pfizer
26.Procter & Gamble
27.United Technologies Corporation
28.Verizon Communications
29.Wal-Mart
30.Walt Disney

Most of beginner and sometimes advanced traders spend their time analyzing their entry point to the market and ignore or neglect a very important thing which is the “Exit Point”.Sometimes fear and greed play a negative role in the decision of the exit point. For this reason it’s crucial to determine it before entering the market.Whether you are using economic reports numbers to enter the market or applying a purely technical system, the method I’m going to elaborate is applicable.I have seen people manipulating a very complicated mathematical calculation to define the entry level and others applying a very straight forward entry method based on numbers in the economic reports and don’t pay any attention when they are going to exit the market!Whatever is your method of trading, you have to pay attention on your exit point because it’s the most important part of the game! Keep in mind that your goal is to consistently bringing home money right?Personally I use both economic and technical analysis to enter the market. As I have strict rules and consistency while analyzing the way I’m getting in I do have the same consistency and rule when getting out. I’m not going to elaborate the analysis of the entry point in this article; I will talk about later but now let’s focus only of the exit strategy.Watching the market is like watching “Formula I”, cars sometimes pull over at pit stops to make some technical maintenance. In trading it’s the same, market sometimes at a given point or interval pulls over to relax after a long trend.Logically speaking, the reason why the market rebounds at these levels, it’s because most of traders close their positions and take their profit so why don’t you do the same?For this reason I call this point “Rest Point”.Your mission now is to define those intervals of prices or points by examining the chart of the previous periods and determine where the pit stops are. Once you have those intervals or points it will be easy for you to stay away from them! You have either to close your positions before the market reach this interval or don’t enter the market until the interval will be totally broken.Sometimes these points are near what we call “virtual supports” or “virtual resistances”. We call them that way because they are not real support and resistance but rounded values of the prices (e.g. 1.2000 – 8.9000) where almost all traders prefer to close their positions at this level and run away.

Trading CommoditiesFutures Trading involves a trading style based upon the potential Future performance of certain commodities and agricultural products; like coffee, sugar, gas, oil, gold. Speculators are in the commodities market only to make money and often buy and hold positions for just hours or even minutes. They have to be traded through people and firms who are registered with the Commodities Futures Trading CommissionElectronically traded contracts, such as the e-mini's tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread. They have no real interest in buying or selling the commodities for use; instead they buy the commodity on paper and sell it for profit. It is a standardized contract that is used to buy or sell an underlying instrument this being the derivative of an asset, which is usually bonds or commodities at a date in the future at a price fixed on the last day of trade.Futures trading is actually commodities trading - it is the practice of trading commodities to turn a profit, and it takes experience to truly become successful at this type of investing.Futures SpeculationSpeculation brings about a gradual adjustment of prices to the contingencies foreseen by the speculator. It follows from the above that speculation steadies the trend of prices and restricts the movement of prices within a narrow range. You might think that this is gambling, but the fact is that speculation refers to the condition of a legitimate enterprise based on the current condition of the market trends.All futures contracts are generally made for the purpose of speculation or hedging. The futures contracts are made for two distinct purposes: speculation and hedging. However, true trading is actually speculation (managed risk).Once speculation began using futures contracts, it went beyond the demand and supply of actual goods. These kinds of contracts are based on speculation and the speculation is done based on market trends.Sometimes over enthusiasm and bad speculation has resulted in disasters.E-currencyAn exciting alternative to Forex and Futures Trading at E-currency Trading. In simple terms e-currency is Internet Money. The demand for e-currency should only grow as Internet Commerce grows.

By Wade Robins :The majority of the Forex brokers do not charge commissions. They are remunerated by revenues from their activities as currency dealers, including earnings from buying, selling, interest on deposited funds, converting and holding currencies, and rollover fees.If you think that, because Forex brokers do not charge commissions, they are working for free, you need to go back to Forex school. Forex brokers make their money from you, by selling you currency at one price and buying it back from you at a lower one. The difference in the prices is known as the "spread" and it can mount in a hurry. How can you determine a "spread?"Understanding The SpreadYou may have thought a "pip" meant is a fruit seed, and you would have been right. But in the 21st century, the "pip" is far more widely known as the smallest monetary increment, usually one one-hundredth of a percent. On the Forex market, currencies are priced to the fourth decimal place, and that fourth decimal pace is the"pip." It's also known as a "basis point."Forex brokers make their livings in pips. The number of pips they charge per trade is known as their spread. Some Forex brokers charge the same spread no matter what the trade, and other Forex brokers charge a variable spread. While a variable spread can look enticingly small in a slow market, it will not be available when the Forex trading begins to fluctuate, because the Forex broker will raise his spread.You can hook up with Forex brokers through major banks or investment firms. They are regulated by the Commodity Futures Trading Commission and they are registered with the Futures Commission Merchant. But the Internet has caused a proliferation on online Forex brokers, who will provide traders the technology necessary to trade. They have opened the Forex market to million of small investors who may lack the capital and understanding to have any chance of succeeding.What To Expect From Your Forex BrokersIf you're working with Forex brokers, and you should be, your have the right to expect their offices to be available around the clock. The Forex market never sleeps, and even if you are placing a trade in the middle of the day, it might be the middle of the in the hemisphere where your Forex broker's office is located.If you need to get out of your trade in a hurry, you should be able to depend on someone being at the other end of the phone. And by the way, always make certain with your Forex brokers that you can close a position over the phone. If not, a power outage hitting your PC, or a failed Internet connection can spell disaster.Before you sign on with any firm of Forex brokers, take the time to do some background checking. Not all Forex brokers have the financial underpinnings to hold money in reserve if their trades go wrong and their customers want to cleanout their trading accounts. Your Forex broker should be open about his company's financial condition and history, and be able to provide documentation of his claims. If he can't or won't, take your business elsewhere.And before you commit any money to any Forex brokers, use their online sample trading features to decide which programs are best suited to your trading style. It costs nothing, and will give you confidence that in the fast moving world of Forex trading you'll be able to keep up.

Forex brokers are individuals or institutions that offer a range of forex services like management of your accounts and execution of orders. As your success in the forex trading largely depends on the brokerage services, you must take your decision after comparing different forex brokers. These days you will find many websites that help you to compare forex brokers. There are few basic parameters, like minimum deposit required to open an account, maximum leverage offered, spread of major currencies, commissions charged, number of pairs offered, and the availability of operating a mini account etc which you must consider while selecting your broker.Identifying your personal criteria for comparing the forex brokers can help you in visualizing the merits and demerits of their services. The first one is to find the brokers who are registered with regulatory agencies like Commodity Futures Trading Commission (CFTC) and are member of NFA. These agencies were made to protect the public against fraud, manipulation, and abusive trade practices. While comparing the forex brokers, you must verify the CFTC registration and NFA membership status of the broker and find out their disciplinary history.Compare the forex brokers based on their reputation in the market. If it is part of a large group of companies, you can have more confident since the group itself will keep a check on the broker. The longer the broker has been active on the market, the more you can gather feedback from traders who have used their services.The third step for comparing the forex brokers is to check out the types of account you will be able to open. The broker must provide demonstration accounts or "demo accounts", which allows you to test the trading platform and the related work environment. They should also have an option of opening a mini account.The next step will be to compare the forex brokers on the basis of standard accounts they are offering. As in these accounts, the minimum capital is higher than the mini account, the leverage is less important. Some brokers may also offer to open an account in various currencies like euro, dollar, yen, etc. But if you decide to trade in one currency that is not that of your own country, you must consider the exchange rates.Next will be to find out if the broker is asking for a commission. Most of the brokers offer commission-free trading. So compare the brokers to see if they are offering any additional services.Leverage allows you to multiply your position on the market. While comparing the forex brokers find out the leverage they offer. But you must remember that the more you increase your leverage, the more you increase the risk.Margin and rollover are other important factors for comparing services of the forex brokers. Each broker has his own "margin call" policy in closing your positions. This you can compare between several forex brokers to find out the best one. The rollover fees are negligible but can add up in the long term.

What is a Futures Contract?A futures contract is a commitment to buy a commodity with an inherent value at the date specified. It's used by the people who produce those commodities to regularize their income streams and protect themselves from excessive market volatility. Examples of futures are oil futures, steel futures, agricultural futures like corn, soybeans, sugar and wheat, or pork bellies. Any kind of product that's produced in large quantities with regular production cycles, lead times of more than a month, seasonable variations in availability and price, and near constant demand for the raw material can be the subject of a futures contract. Futures can be thought of as agreements to sell or buy commodities at a specified price in the future, regardless of the market conditions. If you need the commodity in question, you may buy futures to hedge against a future rise in price. If you sell the commodity in question, you're buying futures to hedge against a decrease in price.Buying and selling futures contracts allow people to buy and sell the commitments to buy products in respond to market pressures. Unlike stock portfolio or bond investing, you aren't buying a chunk of a corporation or a debt commitment to be paid back with interest, you're taking a gamble on the future price of a commodity. Futures trading is risky, as is any kind of investment, but some of the risk can be ameliorated by taking on a diversified portfolio.What Makes For A Good Futures Trader?The personality type that thrives in futures trading is that of the professional gambler, the person who is certain that their instincts on the way commodities will flow will beat the market trends. (It is possible to take buy-and-hold positions with futures, but that tends to be less lucrative and less volatile. In general, it's also less sound than buy-and-hold strategies for stocks and bonds.). Backing up that instinct is a lot of technical analysis. Futures traders watch all the news for example, news about the weather directly impacts growing seasons for commodities such as corn, soybeans and sugar. News about port regulations impacts futures relating to delivery of durable goods and oil from overseas. News about increases in production capability at refineries, or improvements in oil extraction techniques can change the price of oil and often in counterintuitive directions!There is a lot to learn to become a successful futures trader; you'll want a mentor, and a couple of classes to learn the terminology, the regulations, and how to spot market trends (and how to divorce yourself from your own analysis, so that you don't blind yourself to important trends because you're in love with your own ideas.)Interestingly, while futures are contracts meant to reduce risk between producers and purchasers of commodities, the trading of futures is a high volatility market. While there is risk, it can be (somewhat) ameliorated, and there are often trends that are easy to pick out that will help you avoid risk. The key to being successful as a futures trader is knowing when to NOT gamble, when to take what you've got and call it a day with a reasonable return on your investment.

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Let’s look further into the use of the trend lines as map for projecting areas of alerts. In the following chart the Day candles are shown with an Outer Trend line starting at the low and connecting to the next high on February 8th. This means the line could be drawn only after February 8th. We have another Outer trend line that starts December 29th and connects to the low on January 28th. These lines create an alert to be on watch for a breakdown. Notice that we do not have to be that precise. The value of being able to draw the line is to be able to project into the future where the geometry of the market would challenge the bulls. The Inner Trend line connecting the Low on February 23 to the next high on February 25th provided an early alert on where the momentum up for the Dollar Index would be tested. The probing and break of this inner trend line is a key signature of dollar bull weakness. The probing of that line on March that line on March 4th and its breaking on March 6th, 7th, and 8th was the beginning of the breakdown of the upper channel. Here are two views of these trend lines to help you visualize this process.

In the past few weeks, since this blog started, a great deal of attention has been placed on Dollar Index watching. With the FOMC (Federal Open Market Committee) decision to purchase $300 billion of long-term Treasuries, and extend mortgage-debt purchases to $1.45 trillion, the dollar bear crowd is in full force. This was not a surprise. Those who were dollar bulls may be seeing a crime being committed, and there are very few dollar bulls in site. But using the classic tools of trend line channels and Fibonacci resistance levels, the signs were “written” in advance.
In fact, the great lesson learned from the market reaction is that it was not a surprise. The scenario of a Dollar Index breakdown was scripted once the upper trend line channel was in place. This channel started in December 2008 and had taken full form by February 9th when a low of 84.79 was formed. The index then proceeded to a new high of 88.25 on February 18th. It zig zagged back to test the channel line on February 23 at 85.63. We saw a retracement failure there and that was followed by a move up. Using the simple trend line tool, the trader was able to project areas where the next test of support would occur near 87.8. Any probing of that area was an alert to be careful for those following a dollar bull scenario. Drawing an inner upper trend line also enabled a projected alert that the Dollar Index was in trouble if the price met the 88 region. The index probed 88 and broke the inner trend line on March 6. Being a forex detective and using the trend line tool, we have had 6 days of a signature of the presence of the dollar bear. It is a very good lesson in the use of simple tools for assessing market moves.

The presented Forex tools can assist you both in technical analysis and money management which will greatly enhance your trading results. All these online Forex tools are totally free and can be used at no cost:MT4 Expert Advisors — Download free expert advisors for a Metatrader 4 trading platform. Test and use these EAs to empower your automated Forex trading and also to help the developing of your own Metatrader expert advisor or Forex strategy.MT4 Forex Indicators — Free downloads of the MetaTrader indicators for a Metatrader 4 trading platform. You can use these indicators to improve your Forex trading strategy or develop your own MetaTrader 4 expert advisors.Pivot Points Calculator — Four online web based pivot points calculators will help you to generate pivot points for any given time period. Pivot points are used to as the most important market trend points, where trend can meet support or resistance and actually change its course. Floor, Tom Demark's, Woodie's and Camarilla pivot points building rules are available with this free calculator. You don't need to download any software, just fill the form and get instant pivot point, resistance and support levels.Pip Value Calculator — How much is one pip? How about EUR/CHF or CAD/JPY? With this free and fast online tool you can find out the value of 1 pip in USD for any lot size and any major or cross currency pair. Fill the form and get the pip value in one moment. No need to download any software!Fibonacci Calculator — The web based Fibonacci retracement calculator will help you to generate basic Fibonacci retracement values for any given trend. These retracement values can be used as the most natural points of support and resistance for a given trend for any currency pair. On the currency trading market, the use of Fibonacci retracement levels to set orders and targets is one of the best ways to organize trader's portfolio.Risk and Reward Forex Calculator — online calculator that will help you to find out the risks and rewards associated with your possible position's targets and stop-losses based on the Fibonacci retracement levels of the current market wave.MetaTrader VPS hosting — special dedicated hosting for your MetaTrader (and usually any other) Forex platform and expert advisors. A good way to keep your strategy always active independently on your home or work PC.

With more than $1.5 trillion USD being traded daily, the foreign exchange market has managed to become the world's largest financial market, over the last three decades. With the large minimum deal sizes and rigid financial requirements, the Forex market, till recently, was not explored by the common trader or individual investor. But now the average investors can also engage in Forex trading. Some of the advantages of Forex trading are as follows:
24 hours tradingForex gives its traders a 24 hour trading opportunity. Being a Forex trader, you can trade 24 hours a day from Sunday 5:00 pm (ET) to Friday 4:30 pm. This gives traders an opportunity to trade according to their convenience, going by their own schedule and also a chance to react instantly to any breaking news of the markets.
High levels of liquidityAlso, acting as a huge attraction is the high liquidity. With almost 90% of all the currency transactions consisting of 7 major currency pairs, helps these currencies display price stability, smooth trends, narrow spreads and high levels of liquidity. This liquidity mainly comes from the banks which offer cash flow to companies, investors and market players.
No commissionWith “free of commission” trading, Forex trade lets you keep 100% of your trading profits. This makes Forex trading even more attractive as a business opportunity, especially for those who want to deal on a regular basis.
Steady trading prospectsThe market is constantly moving and since Forex trading involves buying and selling of currencies, so traders can easily operate in a rising or falling market. This is because, there are always trading prospects, whether a currency is rising or deteriorating in relation to another currency. So there is always profit potential in the Forex market, whether it’s a rising one or a falling one.
Along with these major advantages, the Forex market also has some other merits such as, Forex trading gives its traders, an opportunity to bigger profits as returns on their invested money. Also, since the market is open 24 hours a day, 5.5 days a week, it gives the investors can make their deals anytime they want to.
With such superior speed of the market, and fine liquidity, even the largest of transactions are conducted within a few seconds.

Forex Glossary
The Foreign Exchange market has its own terminology which is normally used by all Forex brokers, investors and traders. Here is a brief list of the frequently used Forex terms and their meanings. Also besides terms, we provide you beneficial as well.Ask Price/ Offer PriceThe ask and offer price is the price at which the market is ready to trade a specific currency. This is the price where, an investor can purchase the base currency. When seeing a quote, it is located on the right side. For example, in the quote EUR/USD 1.4547/52, the ask price is 1.4552.
Base currencyThe currency listed first in a Currency Pair is known as the Base currency.
BidsA Bid is the price at which the investor is willing to purchase a currency.
Bid/Ask SpreadSimply stating, Bid/Ask spread is the variation between the bid and offer price. It can also be defined as the degree of difference in pips, amid the buying price and the selling price of a currency pair.
BrokerA person or an organization acting as an agent, putting together buyers and sellers for a commission or fee, can be defined as a Broker. They are the ones who work on behalf of their investors.
Counter CurrencyThe currency listed second in a Currency Pair is known as the Counter currency.
Currency symbolsEUR - Euro AUD - Australian DollarCAD - Canadian Dollar CHF - Swiss Franc JPY - Japanese YenGBP - British Pound
Day Trading Day trading refers to the buying and selling of positions within a single day’s trade.
Foreign ExchangeAlso known as Forex or FX, it is the process of buying of one currency in exchange of other currency in an over-the-counter market.
Leverage Leverage is the ratio of the deposited amount to the amount that can be traded. Find out
Limit orderLimit orders let the Forex investors stop further trading and leave the market at preset profit objectives. It is an order which restricts the greatest price to be paid or the lowest price to be received.
LiquidityLiquidity can be defined as the capacity of a market to allow fat transaction with negligible impact on the price stability.
MarginMargin is the minimum amount required to be deposited before an investor starts trading. This can also be known as the initial amount with which the Forex trading account can be opened.
Pip / PointWhen dealing in terms of quotes, prices are expressed in terms of Pips. Pips can be defined as “percentage in points” and are mostly the fourth decimal point i.e. 1/100th of 1%. A pip can also be defined as the smallest value at which an exchange of currency can take place.
Stop Loss OrderStop/loss commands allow the investors to set an exit point for a loss. By limiting your losses to a pre set position, Stop/loss orders help investors control their risk conditions. 'Stop-loss' can lower an investor's exposure to risk by a large proportion.

Forex market offers several advantages over Equity trading, such as: 24 hours open marketThe biggest advantage of the Forex market over the Equity trading is that of a 24 hours open market. Active 5 days a week, Forex market gives its traders what Equity trading does not. Equity trading is restricted to regular business hours, making Forex, the only incessantly moving trading platform.Being a 24 hour trading market, there is always some investors, somewhere in the world who are dynamically trading foreign currencies. This also enables these investors to react to any breaking news of the market, immediately.
Higher trading volumeAlso, the trading volume in the Equity trading or the major stock exchanges is often 100 times lesser than foreign exchange market. Furthermore, majority traders are willing to buy and sell currencies because of the need of various countries, which want to continue to trade goods with each other.
No commission and transaction feesForex serves as a more cost-efficient trade as compared to Equity trading, especially in terms of both commissions and transaction fees. Most of the sites dealing with Forex trading do not charge its investors or traders with any commissions or fees, while offering them, access to all the significant market information required for trading purposes. But in case of Equity trading, commissions range from $5 to $100 or more per trade in case of full service brokers.
Price stability through superior liquidityThe trading volume of the Forex market being 100 times more than the New York Stock Exchange, there are always dealers willing to buy or sell currencies here. The superior liquidity of the major currencies also helps ensure price stability in the Forex market. But this cannot be the case with the Equity trading which has a lower trade volume. This can therefore put the investors of the stock market to liquidity risk, resulting in larger price movements.
Higher leverageForex market offers higher leverage as compared to all the major stock exchange trade markets. While the commonly available leverage from the online Forex dealers is 100:1, the leverage offered by the Equity brokers is as low as 2:1 margin. Such high leverage enables the Forex traders to trade much larger sum of currency than they have deposited. Also that depends on the one considers for trading.
Profit Potential Forex market enables its investors to trade on the upward as well as the downward trends of the market, giving them the facility to buy and sell currencies. This serves as another major advantage of Forex market over Equity trading. This is because in the equity market, it is more difficult to trade during downward trend of the market, due to some market policies. There are a certain risk aspects as well

Being the largest financial market in the world, Foreign Exchange market deals in the business of trading of the world's various currencies, with more than $1.5 trillion changing hands every day. Futures, on the other hand, deals in contracts to buy or sell a foreign currency on a specific date in the future, the price for which is set today.
In other words, futures are the same as forward exchange deals, which are tailor made to the customer requirements and needs for the amount of funds and due date of deal.
There are plenty benefits of Forex over currency futures trading, especially with the difference between the two regarding their target audience, transactions fees and liquidity, as given below:
24-Hour MarketCurrency market is a 24-hour market, unlike most of the futures exchanges, allowing its traders to react to the immediate news happenings by trading immediately. This facility cannot be availed with the futures market which only operates during business hours and not for 24 hours a day.
Superior liquidityForex markets hold unmatched liquidity as compared to currency futures. Especially with $1.5 trillion changing hands daily, Forex is the largest and most liquid market in the world. It can absorb a large trading volume and the transaction sizes are huge too, in comparison to any other market. Futures market, on the other hand, is a $30 billion market per day which provides only limited liquidity with a lesser trading volume.
Forex uses simple and easy price quotesWhile the currency futures trading and price quotes have added complications of time factor and interest rates between various currencies, the Forex markets require no such adjustments of future calculations and consideration for the interest rate of future deals.
Forex trading is commission free Futures trading contracts get along with them, trading costs, exchange fees and clearance fees which eat up most of the trader's profits. But this is not the case with Forex trading because here, the trader deals directly with the market through online exchange, thus saving the brokerage fees. Although, there is always an initiating cost to any trading being done, which is revealed in the bid/ask spread, present in all types of trading, be it Forex, Futures or Equities.
High execution quality and speed It is only with Forex trading that a trader can experience high execution quality and speed because of its high trading ratio as compared to any other market. The reason why futures market does not offer rapid execution or price is due to the lesser volume of trading and liquidity and definitely due to uncertainty during normal market conditions, as the trading prices on market orders is far from certain.

A lot of reasons can have their hands behind the fluctuating market and currency rates, and not one or two can be blamed for any sort of rise or fall in them. Although it would not be entirely wrong to say that the Forex market business is more or less based on these fluctuations only. Traders trade in this market, purchase and sell various currencies with the expectation of making gains if the value of the exchange moves in their favor. Now this sudden movement in the market can be caused by either market news or current events all over the world, which have an effect on the demand and supply of these currencies. This law of demand and supply is what works well in this Forex market too. When the demand of a particular currency goes up, its market price also escalates as compared to the other currencies in the market. Similarly, if the demand of a particular currency goes down, traders are no longer interested in holding it back with them, and so the market price of the currency also decreases. Economic development It is quiet obvious that the traders trading in currencies and interested in exchange markets, will be equally keen and interested in knowing about the overall economic development of the countries whose currencies they hold, or are interested in buying. Every trader wants to be convinced that they economy they are about to invest in is developing with a solid and steady growth, which can be known by studying various factors such as unemployment, import and export, and the GDP statistics of a particular country. Rise in Unemployment experienced by any particular country is considered as a negative factor, whereas a fall in Unemployment is always measured as a positive aspect. Similarly, an increase in the GDP figures of a particular country is considered as a positive feature, whereas a decrease in GDP figures is always measured as a negative aspect. Also, a mount in the Exports numbers of a particular country are always considered as a positive trait as compared to the decrease in Exports numbers which is looked upon as a negative aspect. Political strengthLots of factors are responsible for determining the political stability of a particular country. These factors can be any kinds of alterations in government or by the government, rising unemployment rates, elections or international and political conflicts. Every investor is cautious enough and considers all these factors in his mind before going in for investing in a particular economy. Any kind of Political conflicts, natural calamity or terrorism attacks or wars are major contributors in making or marring the economy of a country. Interest Rates Around the world, interest rates are always followed by money. If the interest rates of a particular country rise up, investors big and small from all over the world would want to invest their money with it in order to gain higher returns on their investments. Mostly it can be said that if you want to capitalize on higher investments, then you have to keep an eye on the rise and fall of the interest rates in a particular country. And the factors which will help you determine this rise and fall are mostly the financial rise indicators in addition to the speeches of the current leading, dominating and significant figures like big politicians, iron and steel magnets and businessmen. The interest rate movements generally take place during the programmed meetings by the central banks like BOE, FED, ECB, and BOJ. An increase in the Interest Rates is always considered as a positive factor for a particular country as compared to the decreased in Interest Rates.