Month: November 2012

By MoneyMorning.com.au

South Africa – the post-apartheid version – is a young country as far as Nation States go. Yet today, there are doubts about whether South Africa can survive.

That’s the sentiment I get, anyway, from watching CNN or reading wire service reports. It’s hard NOT to be pessimistic when you read about the 34 people killed at Lonmin’s Marikana platinum mine in mid-August.

The deaths at Marikana were followed by widespread strikes across the platinum and gold industries.

Thousands have been fired. Production in both industries has been seriously interrupted. There are international doubts about the future of South African mining. Those doubts have weighed on share prices for gold and PGM miners.

And given these question marks about the mining industry, nationalisation, and political stability, you wouldn’t want to invest in South African precious metals stocks in this atmosphere? Or would you?

Platinum and Palladium – The Other Precious Metals

The sheer terror and fear mainstream investors might have in South Africa right now is obviously a perfect contrarian scenario.

This is one of the few chances in the last five years that you can find real quality assets mispriced because of investor perception. There is certainly a heap of political risk.

But there is also a massive opportunity. I think most people will realise that by 2013, which is why I suggest you take advantage of it now, while the opportunity remains.

What’s more, one metal I’m talking about has recently gone into a supply deficit for 2012. That deficit should grow in 2013. The stage is set for higher prices.

But what metals am I talking about in general?

The platinum group metals.

Did you know Ironman’s heart is made of palladium, not gold? Billionaire industrialist and tycoon Tony Stark may not be a real person, but he knows how to pick a valuable precious metal for its autocatalytic properties!

Industrial demand for the PGMs is a key driver of higher prices. So is their actual scarcity. And because of both factors, investment demand (via Exchange Traded Funds) could emerge in 2013 as another big catalyst for higher metals prices.

There are six different metals included in the PGM complex: platinum, palladium, rhodium, ruthenium, iridium, and osmium. The name platinum comes from the Spanish ‘platina,’ or little silver. When the Spaniards found silver in Colombia, platinum was considered an impurity and a by-product. That’s definitely not the case today.

The PGMs all have particular qualities that have made indispensable to the modern world. Platinum and palladium are especially resistant to corrosion and oxidisation.

This became important in the mid-1970s, when clean air legislation began to affect car makers in the US and Japan. The PGMs became the metal of choice for reducing pollution from motor vehicles.

Platinum and palladium are key ingredients in the construction of catalytic converters. An autocatalyst is a cylinder of honeycombed metals set inside a stainless steel canister. The entire contraption is known as a catalytic converter. But it’s the autocatalyst that we’re most interested in.

Platinum is a lot more useful for diesel engines. But for gasoline or petrol engines, platinum and palladium are interchangeable. The main determinant of which metal gets used is price.

There are other industrial uses for PGMs. But the car market is the most important. About 4.4 million ounces of 2011′s total palladium production went to the automotive market. This little fact surprised me.

Bullish Trends for the Auto Industry

That is, I wasn’t surprised that palladium is used in the automotive market. I was surprised that once you get out of the North American/European/Japanese/ Australian news bubble, the forecast for global auto sales is surprisingly robust.

The more cars that get built and shipped in the developing world, the better it is for PGM demand and prices.

Production of ‘light duty’ cars should reach 81 million units this year, according to US-based palladium producer Stillwater Mining. China is obviously leading the charge here. In 2009, China over-took the US as the world’s largest automaker.

It should produce around 20 million cars this year.

When I spoke with a full time PGM analyst in South Africa, I was struck by how sanguine he was regarding the car market. It’s growing in places like Russia, China, Brazil, and India.

It’s a pure BRICs story. He assured me that once you get outside the bubble of the industrialised world, the car market is looking bullish.

I remain sceptical (by nature). But the drive to toward tighter emission regulations (for cleaner air) in all the world’s economies supports platinum and palladium demand regardless of the number of cars produced.

Precious Metals to Watch in 2013

Other factors lead me to believe 2013 will be a good year for PGMs, and palladium in particular. Supply is already in deficit. Above ground stockpiles are being run down.

Investment demand from ETFs was around 400,000 ounces in 2012, and will increase to half a million ounces in 2013. And jewellery demand has emerged as a new factor as well.

Keep in mind that platinum and palladium production occur at the same time from the same ore bodies in almost all cases. Palladium is relatively abundant. In fact it’s two times more abundant than gold in the earth’s crust.

But the trouble is finding it in large enough concentrations to mine it economically. I can’t emphasize enough this enough. This is the single biggest reason I expect palladium prices to head higher next year

South Africa will remain a critical supplier of them no matter what. If South African production is interrupted, it will almost surely lead to higher prices.

So how to profit?

Bullion is worth a look. So are ETF’s. Then there’s the much riskier mining stocks.

You have an industry under siege, a metal in supply deficit, and more geopolitical risk than you can shake a stick at. If you like buying when others are fearful, it doesn’t get any better than this.

Dan Denning
Editor, The Denning Report

From the Archives…

Why You Should Always Be Looking to Buy Small Cap Stocks
23-11-2012 – Kris Sayce

China is Now the World’s Biggest Gold Producer – and Consumer
22-11-2012 – Dominic Frisby

The Stock Market Gets Squeezed
21-11-2012 – Murray Dawes

Buy Quality Gold Stocks That Have the ‘Right Stuff’
20-11-2012 – Dr. Alex Cowie

Picking the Hot Commodity Stocks of 2013
19-11-2012 – Dr. Alex Cowie

Platinum and Palladium — the Precious Metals to to Back in 2013

For any investor who engages in the trading of currency pairs under binary options, there are two possible outcomes: the possibility of a making a gain, and the possibility of suffering a loss. For instance, if an investor decides to trade on the fact that the USD will gain in strength over the Yuan or EUR, there is a 50-50 chance that his
prediction will be right or wrong.

Here are some guidelines to help binary options traders successfully trade in binary Forex options:

Analyze Currency Pairs Carefully
It is very possible to profit enormously from trading currency pairs under binary options. Care must however be taken to avoid treating the trade as a mere guessing game.

Stay Up-to-Date with the Latest Trends
This is practically self-explanatory. Close attention must be paid to details of relevant financial news and events. Key indicators such as Gross Domestic Product (GDP), Balance of Payment (BOP), and general employment/unemployment rates in different countries must regularly be considered as well. Government policies also need to be
monitored closely as they can very easily affect the market. The on-going crisis in Greece is a good demonstration of the huge impact the decisions or rulings of governments and economic unions can have on an economy.

Choose the Right Forex Option Broker
The importance of making the right choice when it comes to selecting a broker cannot possibly be overemphasized. Having a broker who fails to offer suitable expiry dates or tradable assets, or does not provide you with useful information is certainly not in one’s best interests.

http://www.binaryoptionsbluebook.com/2012/09/20/trading-tips-for-dealing-with-binary-forex-options/

By Central Bank News
    Mexico’s central bank left its benchmark interest rate unchanged at 4.50 percent, as expected, but repeated recent warnings that it will raise rates if inflation starts to accelerate.  However,  the bank added that upside risks to inflation have eased, describing the recent fall in prices as “remarkable”
    Banco de Mexico said there was no evidence so far of widespread price increases, with the recent rise in inflation due to temporary shocks, and the trend toward lower inflation seems to be confirmed.
    “However, if new shocks to inflation – even if presumed to be transient and the trend in headline and core inflation are not consolidated – the Board believes that it could adjust the benchmark interest rate upward in order to strengthen the anchoring of inflation expectations, prevent the pollution to overall national prices and not compromise the permanent convergence toward the 3 percent target,” Banco de Mexico said in a statement.
    The bank said the decline in Mexico’s inflation rate to 4.6 percent in October from September’s 4.8 percent was remarkable but it was still above the central bank’s target of 3 percent, plus/minus one percentage point, and is expected to end the year below 4 percent.
    The turnaround in inflation was due to lower increases in core and non-core price components, helped by the rise in the Mexican peso since the middle of the year. The rise in the cost of services had fallen to a record low of close to 2 percent, reflecting domestic determinants of inflation.

    The bank expects these factors to continue to help lower inflation with the headline rate continuing to decline in coming months with inflation trending toward 3 percent in 2013.
    “Although in the short term there are major upside risks to inflation, it is considered that at the margin they have eased. Meanwhile, the slowdown in global economic activity points to lower inflationary pressures in the medium term,” the bank said.
    The central bank, which last changed its rate in June 2009, said there were still significant downside risks to the global economy and it expects a further easing of monetary policy in some advanced and emerging economies due to slower economic activity and lower commodity prices.
    Economic activity in Mexico, however, maintained its upward trend, albeit at a more moderate pace than in recent quarters as consumption and investment have started to slow.
    “In sum, derived from external developments, and in particular the U.S. economy, it is considered that the downside risks to the growth of the Mexican economy have increased marginally in the short term,” the bank said.
    Mexico’s Gross Domestic Product expanded by 0.45 percent in the third quarter from the second, for an annual rate of 3.3 percent, down from 4.1 percent in the second quarter.

    www.CentralBankNews.info
 

By Central Bank News
Here’s today’s Central Bank News link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don’t miss any important news.)

By The Sizemore Letter

The past two years have been volatile for investors in virtually every market, but they have been particularly unkind to investors in China.  Chinese stocks, as measured by the iShares FTSE China 25 Index ETF (NYSE:$FXI) spent most of 2011 and 2012 in a downtrend, though in the past two months they have shown signs of life.

Should investors take this rally seriously?  Or is it yet another fake out destined to burn them?

Right now, the upside potential in China far outweighs the downside.  China is a buy.

You’re probably raising your eyebrow right now, but hear me out.  China is one of the cheapest markets in the world right now.  Chinese stocks trade for just 7 times earnings, less than half the valuation of American stocks as measured by the S&P 500.  And at the same time, sentiment towards China is downright horrid.  It’s hard to find anyone who is actually bullish on China these days.  A Google search for “China” and “hard landing” returned over 3 million hits.

I know, I know.  You can’t take Chinese earnings seriously because they cook their books.  Fair enough.  I actually agree that you have to take most Chinese data releases with a grain of salt.  But many of FXI’s core holdings—such as China Mobile (NYSE:$CHL), the largest mobile phone company in the world by subscribers—trade in the United States as ADRs and meet international reporting standards.  And when they are priced as cheaply as they are today, there is certainly margin for error if earnings reports are a little on the aggressive side.

Furthermore, the macro picture in China—which was never nearly as bad as the media hysteria would have suggested—appears to be stabilizing.  The China Manufacturing Purchasing Managers Index improved in November—the first improvement in 13 months—and profit among Chinese industrial companies rose 21% last month.

China is still far too dependent on capital spending and exports; for the country to have anything resembling a balanced economy it needs to see the consumer sector playing a more prominent role.  But for now, I am comfortable investing in China.

Buy FXI at market.  But use a stop loss or a trailing stop to protect yourself in the even that investors get spooked again and send shares lower.  While I am bullish on China at this time, a Eurozone “blow up” or a turn for the worse here in the U.S. could spill over into the Chinese market.  A 15-20% trailing stop should be sufficient for now.

If investors “rediscover” China, we could see 50-100% gains over the next 12-24 months if recent history is any guide.

Sizemore Capital has no positions in the stocks mentioned. This article first appeared on TraderPlanet.

The post It’s Time to Buy China appeared first on Sizemore Insights.

Related posts:

• China’s GDP: A High-Quality Problem
• Luxury: Buy What China’s Wealthy are Buying
• China is Slowing: How to Invest

London Gold Market Report
from Adrian Ash
BullionVault
Friday 30 Nov, 06:35 EST

GOLD PRICES rose back to $1730 per ounce in early London trade on Friday – the same level seen just before last week’s late jump and subsequent 2.0% sell-off on Wednesday.

Silver touched a new 8-week high just shy of $34.40 per ounce, while the broader commodities market ticked lower.

Major-government debt prices were flat. So too were European stock markets.

New data today showed Eurozone unemployment hitting a post-unification record of 11.7%.

The German Bundestag voted 473 to 100 to approve the latest €44 billion aid to Greece.

“[Gold demand from] central banks could help the price, specifically South American banks,” says one London trader in a note

“But that’s demand for the long run, and our days are made of shorter-term decisions.”

Latest data from the US Mint showed a strong rise in sales of Gold Coins to retail dealers in late November.

Holdings in exchange-traded trust products (gold ETFs) rose globally to a new record high of 2,619.4 tonnes according to Bloomberg.

“[That’s] proof that gold remains in high demand as a store of value and a safe haven despite all the price fluctuations,” says this morning’s note from Commerzbank in Frankfurt.

“My average [gold price] forecast for 2013 is $1920,” says David Jollie at Mitsui, the Japanese trading conglomerate. He was the winner in 2011 of the London Bullion Market Association’s silver forecast.

“We expect investment demand to remain robust in China,” adds the latest monthly report from Standard Bank’s precious metals analysts here in London.

“The reasons for the expected rise in gold investment demand in China are broad-based and, we believe, very similar to those in many other countries…substantial monetary stimulus and low or negative real interest rates.”

Speaking today to Reuters, Marcus Grubb, director for investment at market-development organization the World Gold Council, said “There’s evidence already that the Chinese economy is bottoming out, and beginning to recover again.

“[Gold will] have strength into Q1 next year on Chinese New Year,” Grubb added, forecasting a 10% rise in 2013 gold demand from this year’s likely 800-tonne total.

“I think you’ll see China perform strongly in 2013 as the economy recovers.”

Adrian Ash
BullionVault

Gold price chart, no delay   |   Buy gold online at live prices

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold today vaulted in Zurich on $3 spreads and just 0.5% dealing fees.

(c) BullionVault 2012

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Source: ForexYard

The safe-haven US dollar took losses against several of its main currency rivals yesterday, as increased optimism in the global economic recovery led to risk taking in the marketplace. As a result, both crude oil and gold were able to recover losses from earlier in the week. As markets get ready to close for the weekend, forex traders will want to pay attention to any developments in budget negotiations between US Congressional leaders. Any indication that an agreement is closer to being reached may result in additional gains for higher-yielding assets.

Economic News

USD – Signs of Impending “Fiscal Cliff” Agreement Result in Dollar Losses

An increase in optimism that US Congressional leaders may soon reach a deal to avoid a series of automatic tax increases and spending cuts, also known as the “fiscal cliff”, caused the safe-haven US dollar to fall against several of its main currency rivals yesterday. Against the Swiss franc, the greenback fell close to 40 pips throughout the European session, eventually reaching as low as 0.9260. The GBP/USD gained some 35 pips during the mid-day session to trade as high as 1.6047, before a slight downward correction brought the pair to 1.6035.

Today, dollar traders will want to continue monitoring developments with regard to the “fiscal cliff” negotiations. Any indication that a deal is closer to being reached may lead to further losses for the greenback. Additionally, a speech from ECB President Draghi could generate some volatility in the marketplace. If the ECB President signals any improvements in the euro-zone economic recovery, risk taking could send the USD even lower.

EUR – Euro Benefits from Risk Taking in the Marketplace

The euro posted gains against its safe-haven currency rivals yesterday, following the release of a batch of positive US economic data which boosted optimism in the global economic recovery and encouraged risk taking. The EUR/JPY gained more than 40 pips during the European session to trade as high as 106.78. A slight downward correction brought the pair down to 106.65 by the beginning of evening trading. Against the US dollar, the common currency advanced more than 70 pips, eventually breaking above the psychologically significant 1.3000 level.

Today, several euro-zone news events have the potential to create volatility before markets close for the weekend. Euro traders will want to pay attention to a speech from ECB President Draghi, followed by the EU Unemployment Rate and CPI Flash Estimate. Better than expected data could lead to additional gains for the euro during mid-day trading. Furthermore, any progress in budget negotiations between US Congressional leaders could boost riskier currencies, like the euro.

Gold – Gold Partly Recovers from Earlier Losses

After falling by more than $30 an ounce earlier in the week, gold was able to stage a partial recovery during European trading yesterday amid an increase in investor risk taking. The precious metal advanced close to $8 an ounce during mid-day trading, eventually reaching as high as $1727.48, before a minor downward correction brought prices down to $1725.

As markets get ready to close for the weekend, gold traders will want to continue monitoring developments in the ongoing budget negotiations between US Congressional leaders. Any signs of an impending agreement to avoid the “fiscal cliff” could result in additional risk taking, which would send the price of gold higher.

Crude Oil – Crude Benefits From Positive US News

The price of crude oil was able to advance close to $2 a barrel yesterday, following the release of a batch of positive US news which led to speculations that American demand for oil would also increase. Crude eventually reached as high as $88.64 before a slight downward correction brought prices down to $88.30 during afternoon trading.

Today, a lack of significant US economic indicators means that oil prices are likely to be driven by euro-zone news. Traders will want to pay attention to a speech from ECB President Draghi. If he signals any improvements in the euro-zone economic recovery, oil may continue advancing throughout the day.

Technical News

EUR/USD

While the MACD/OsMA on the weekly chart appears close to forming a bearish cross, most other long-term technical indicators show this pair range trading. Taking a wait-and-see approach may be the preferred strategy here until a clearer picture presents itself.

GBP/USD

The Bollinger Bands on the weekly chart are beginning to narrow, indicating that this pair could see a price shift in the coming days. Additionally, a bearish cross is close to forming on the same chart’s MACD/OsMA. Traders may want to open short positions for this pair.

USD/JPY

The Williams Percent Range on the weekly chart has crossed over into overbought territory, indicating that this pair could see a downward correction in the coming days. In another sign of impending bearish movement, the Relative Strength Index on the daily chart appears close to crossing above the 70 level. Going short may be the wise choice for this pair.

USD/CHF

While the daily chart’s Bollinger Bands are beginning to narrow, indicating that a price shift could occur in the near future, other long-term technical indicators are failing to provide clear signs about what direction the shift will be. Taking a wait-and-see approach may be the best option for this pair.

The Wild Card

USD/MXN

The Slow Stochastic on the daily chart has formed a bullish cross, indicating that an upward correction could take place in the near future. Furthermore, the Williams Percent Range on the same chart has fallen into oversold territory. Forex traders may want to open long positions today ahead of possible upward movement.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Control things… then things get out of control.

Centralize… and then watch what you put together break apart.

Yes, dear reader, we are tapping into the deepest currents of nature. There the tides rush back and forth, in and out… and there ain’t nuthin’ you can do to stop it.

America succeeded largely because it was a single, centralized nation… one of the largest, richest landmasses in the world… populated by one people.

No trade barriers kept the Indianans from selling to the Texans. No immigration police kept the Vermonters from moving to Florida. And no language barrier kept the Californians from sharing their latest fashions with the New Yorkers.

But centralization is only a benefit some of the time, not all of the time. Now the big ship of state is loaded to the gunwales with debt, financial obligations and delusions of imperial grandeur.

Chainsaw Cuts!

The weight of all that debt was elucidated for us in the pages of yesterday’s Wall Street Journal.

Unfortunately, we threw away the paper before boarding the plane for Florida. But we remember the story. And if we’re off by a trillion or two…so what? It won’t make any difference.

You may remember, for example, the deficit for this year is said to be $1.1 trillion. That’s the number reported in the press. But the real number is much higher. The real deficit – including the deferred expenses inherent in Medicaid and Social Security and so forth – is over $7 trillion.

And the real debt is usually misreported too. It’s not $16 trillion – roughly equal to GDP. It’s more like $70 trillion… or five times GDP. And even if you took 100% of all the income earned by America’s taxpayers… it still wouldn’t be enough to pay these debts and obligations.

Nobody talks about it. Nobody wants to think about it. Because the nation is going broke… and the only way to avoid it is to prune those spending programs heavily. We’re not talking about paltry “fiscal cliff” cutbacks… or sequesters. We’re talking real chainsaw cuts!

Secession Fever

But what politician wants to mention that? And what clever state wants to stay on this sinking ship?

Cometh the problem… cometh the solution. Everybody’s talking secession. The Scots and the Catalans are already voting on it. Many of them want out. And here comes the Great State of Texas… formerly the Republic of Texas… getting the itch too. From The New York Times:

In the weeks since President Obama’s re-election, Republicans around the country have been wondering how to proceed. Some conservatives in Texas have been asking a far more pointed question: how to secede.

Secession fever has struck parts of Texas, which Mitt Romney won by nearly 1.3 million votes.

Sales of bumper stickers reading “Secede” – one for $2, or three for $5 – have increased at TexasSecede.com. In East Texas, a Republican official sent out an e-mail newsletter saying it was time for Texas and Vermont to each “go her own way in peace” and sign a free-trade agreement among the states.

A petition calling for secession that was filed by a Texas man on a White House Web site has received tens of thousands of signatures, and the Obama administration must now issue a response. And Larry Scott Kilgore, a perennial Republican candidate from Arlington, a Dallas suburb, announced that he was running for governor in 2014 and would legally change his name to Larry Secede Kilgore, with Secede in capital letters. As his Web page, secedekilgore.com, puts it: “Secession! All other issues can be dealt with later.”

“Our economy is about 30 percent larger than that of Australia,” said Mr. Kilgore, 48, a telecommunications contractor. “Australia can survive on their own, and I don’t think we’ll have any problem at all surviving on our own in Texas.”

Few of the public calls for secession have addressed the messy details, like what would happen to the state’s many federal courthouses, prisons, military bases and parklands. No one has said what would become of Kevin Patteson, the director of the state’s Office of State-Federal Relations, and no one has asked the Texas residents who received tens of millions of dollars in federal aid after destructive wildfires last year for their thoughts on the subject.

But all the secession talk has intrigued liberals as well. Caleb M. of Austin started his own petition on the White House Web site. He asked the federal government to allow Austin to withdraw from Texas and remain part of the United States, “in the event that Texas is successful in the current bid to secede.” It had more than 8,000 signatures as of Friday.

A Fragile World

In the new phraseology of our friend Nicholas Taleb, central governments have become “fragile.” Even a small storm could sink Greece… France… or the U.S.

And why should Texas go down with the ship?

Who owes the debt? The central government. Who made the promises and borrowed the money? The feds. Whose government is run by the zombies, for the zombies and of the zombies? That’s right: Washington’s government.

So, it makes sense to give the feds the heave-ho. Texas would be better off on its own.

We’re planning on starting our own secession movement in Maryland. The Old Line State failed to secede in the War Between the States. Taking a middle road of neutrality. This time, we’re hoping Maryland will correct its error.

Free Maryland!

Disclaimer

Source: ForexYard

Hey Everyone,

Below are some market trends for today.

Good luck!

-Dan

Gold- May see upward movement today
Support- 1718.79
Resistance- 1739.87

Silver- May see upward movement today
Support- 33.58
Resistance- 35.09

Crude Oil- May see upward movement today
Support- 86.88
Resistance- 88.63

Dax 30- May see downward movement today
Support- 7286.43
Resistance- 7448.25

EUR/USD May see upward movement today
Support- 1.3070
Resistance- 1.2939

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The euro hit a five-week high against the US dollar during morning trading today, as confidence that US Congressional leaders will soon reach a deal to avoid the upcoming “fiscal cliff” encouraged risk taking in the marketplace.

Speculations that the Bank of Japan will initiate a new round of monetary easing next month caused the yen to fall against several of its main rivals during the Asian session. The EUR/JPY shot up to a seven-month high while the USD/JPY hit its highest point in one-week.

Main News for Today

Canadian GDP- 13:30 GMT
• Analysts are forecasting the GDP figure to come in at 0.1%, which would represent increased economic activity in Canada
• Any better than expected data could result in gains for the Canadian dollar

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.