Month: January 2011

By Stuart Michael

A successful trade is achieved through numerous information sources and exchange rates. A professional trader should need the historical data as well as the latest information about both economical and political conditions. Forex trading is all about predicting the fall or rise of a currency against another currency and the forex trader will profit from the currency fluctuations.
Most trades are said to be speculative, meaning the trader decides to buy or sell based on the forecast of currency movements in respond to the current conditions. In order to ensure a profitable trade, one must have the updated information and latest analysis of the market condition.
There are a number of available tools that may help you to be a smarter trader. One of the forex tools is the charting software. This will be provided by most brokers but it is also important that you learn to operate the software and read the charts. You do not need to understand every indicator available as there are too many of them and not all are useful for your trading methods. Just understand about the indicators that your method might use.
Another tool is the forex simulator. This enables forex traders to view, upload or review the historical data at any given time. This can be used to confirm your understanding of the recognition patter and trading signals. This simulator also allows you to fast forward or rewind the data to test and retest your knowledge and understanding.
Not only does this forex simulator can shorten the months of training to a few days as you can pause, fast forward and rewind the date, this simulator can take snapshots of trades as well as using the indicator line as you like. But the best thing is that you can keep the trade journal in the simulator to refine your strategy when you begin your Forex trading.
After entering the trade details you will be transmitted to a confirmation screen where you can view the current prices on screen and accept them. There is an option to freeze the quoted price, meaning the one involved in your transaction that you view on the screen without any slippage. Then accept the price and place your trade. Forex tools allow you to automatically sell off the currency if it falls drastically below a certain rate to avoid losses. Besides, you can also automatically sell the currency when it sores above a certain profitable level. This way you do not need to monitor your account all the time yet able to prevent losses and gain profit in the market.

About the Author

Stuart is writing for many websites, He enjoys writing on wide range of topics such as forex expert and mt4 ea . You may visit for more details.

By Darren Vincent

Getting started in Forex Trading can be a daunting prospect especially if your only previous financial experience was just balancing your check book. You could start with reading all there is in the library about money markets and Forex trading and then move on to opening an account with a Forex Broker and start trading in the hope that all that reading up has sunk in and you’ll be trading like the best of them. Or you can dive straight in with using a live account and keep asking the brokerage firm for help and hope they are going to give you sound advice and explain how it works so you don’t lose all your money. Or you could download a free ebook to find out if you want to go ahead with trading on the Forex markets and then open a Forex demo account to help you get acquainted with how it all works in practice without risking the shirt off your back!

There are a lot of Forex Demo Accounts out there to choose from and you do have to do a little research sometimes to find the right Forex demo account to use as each one varies in complexity and the help that is available. Another variable is how long you can operate your Forex demo account.
Most Forex demo accounts last for 30 days but others can be six weeks, six months and just a few offer unlimited time. Some Forex brokers will allow you to extend your account time without making you open a Live account while others will require you to change from a demo account to a Live Forex trading account, which is a daunting prospect indeed if you are still trying to grasp the essentials of Forex trading.

The amount of personal information required to open accounts varies, but, if you are serious about trading Forex and not treating it as an online game, then this shouldn’t matter, but be careful to check on site security as some will require your Social Security number for tax purposes.

There are a just couple of other things to consider when choosing a Forex demo account and these are; size of the account, i.e practice money they give you, and whether they offer real time or close to real time rates.
I guess that all sounds a bit complicated but I can assure you that it really is not.

Using a Forex demo account is a GREAT way to dip your toe in the waters of Forex trading without completely taking the plunge or even worse, taking a bath!
With the right Forex demo account you could quickly grasp the essentials of Forex trading and gain confidence enough to open a live account and start trading for real and the best thing is that they are FREE!

So shop around and see which Forex demo accounts you find suit you best and start practicing and if you don’t find the Forex demo account that works for you then simply close it and find another Forex demo account and try that one out!

About the Author

Download Your FREE Insiders Guide To Forex Trading at http://www.ForexAutoPilotSystem.net

By John Philips

The Forex market is relatively easy to understand but the simple fact of the matter is, there are also a lot of intricate parts of the market which take a little bit of time for you to learn. Yes, it is possible for you to jump right in and begin making trades but this should only be done if you have money that you don’t mind losing. The simple fact of the matter is, the Forex market can be quite volatile and unless you understand how it works, you’re better off sitting back with a Forex simulator and getting a little bit of practice before you actually begin investing money.

A Forex simulator is one of the most beneficial tools that anybody getting started within the Forex market can possibly have. What it does is to allow you to place trades within a controlled environment in which no money actually changes hands. Once you place a trade, you have several different choices in order to see how things are going to play out. First of all, you can use a variety of different indicators within the Forex market and allow the Forex simulator to extrapolate that data in order to show you how successful your trade is going to be.

Perhaps another way that the Forex simulator works is more beneficial, however. This is by actually taking a look at the Forex market and showing you on a day by day basis how well your trade is doing. Even though you didn’t actually put any money into the market, it is still able to give you the information as if you did. This will help you to understand that there are always going to be surprise factors that come into play which can change the price of currency within a very short period of time. A good example of this is a news event that happens in the part of the world where you purchased your currency. This can either take the price up or down without any advance warning.

Of course, there is going to come a time when ever you are going to want to put the Forex simulator away and actually take part in trading real money. By using the simulations in advance, however, you’re going to give yourself an overall understanding of how the market works and give yourself the best opportunity to come out on top of the trades that you make.

About the Author

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By Jared Levy, Editor, Smart Investing Daily, taipanpublishinggroup.com

If you have been reading Smart Investing Daily, you know that food trends, demand and subsequent food inflation have been on our radar (and trade ideas) for some time, including my Thanksgiving notes as well as my concerns here in early October.

Consumer Price Index and Inflation

When I first started in the business and was learning how the “stock market” interprets data, I was told that when market players are evaluating inflationary pressures, they pay close attention to something called the “Core CPI”; I’ll get to that in a moment, but let’s talk consumer price index first.

Consumer price index (CPI), which measures monthly prices for the goods and services we consume. It measures everything from the price of canned fish and bread to laundry detergent, fuel, electricity and even the water and sewer costs of your home; even average rent rates are measured.

The goal here is to record and monitor the costs of living in America. If we pay 5% more for the same “stuff” (on average) this year than we did last year, one could make the assumption (generally) that prices have inflated about 5%, or that our dollar may be worth 5% less (on a very basic level).

Over the past year, the consumer price index increased 1.5% and the year prior the index saw a 2.7% increase.

Core CPI — Does It Really Tell the Right Story?

The Core CPI figure, however, strips away food and energy prices because they tend to be more volatile and may skew inflation readings. As a result, Core CPI appears as a more stable reading. Up until the year 2000, the U.S. government used Core CPI to measure the inflation rate (now they use something called the PCEPI).

My quarrel is with stripping out food and energy. Granted, they can be volatile, but if the price trend of both gets higher and higher over a long period of time, you simply cannot ignore or even discount them!

The world needs food and energy, so the two of them are a large part of our monthly expenditures. And furthermore, higher prices might just mean price increases across sectors. Let me explain.

As the world’s food demand grows, it makes sense that the average price we pay for foodstuffs will rise, which would be reflected in the consumer price index numbers. But because of those price jumps, related fertilizer and machinery companies (to harvest, refine and store) may be forced to raise prices and land values in certain areas may rise. That means higher food prices affect more than just food costs.

What if certain machine makers are re-tooling their business to cater to food-related equipment and in turn start consuming more metals and other commodities to produce that equipment and then at the same time, produce less of “other non-food equipment”? For example, what if Caterpillar (CAT:NYSE) stopped making mining equipment and started only making commercial farm tractors? That may create higher costs of mining machines, because higher demand for food-related machinery and a supply reduction for non-food machines forces higher prices to trickle down and spread to other industries. That means other companies will raise prices just to keep up. And the upward pressure makes it harder to lower prices quickly, causing inflation across the other components of the CPI. Energy costs can have similar effects.

I have to disclose that I am not a trained economist, but it doesn’t take a rocket scientist to look around and make these connections, and frankly, if you have read my past commentary, I have been able to profit from my thesis.

(Investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let me and my fellow editor Sara Nunnally simplify the stock market for you with our easy-to-understand investment articles.)

Rising Costs for Producers Means Consumer Price Increases

According to RBC Capital Markets analyst Larry Miller, McDonald’s (MCD:NYSE) will raise prices 2-3% in 2011 to offset inflation and increases in food costs. For the world’s largest fast food chain, which has the ability to control its input costs to an extent because of its intricate network of food producers and suppliers, this is a major move.

Its control can only go so far and it has lost some of it apparently.

McDonald’s has such far-reaching penetration in global food consumption and pricing that the Economist magazine even has a “Big Mac Index,” which compares the Big Mac’s cost in various world currencies. This index can informally judge a country’s purchasing power parity. (Iceland currently has the most expensive Big Mac at $7.61 USD as of October 2010.)

The bottom line is that the move by McDonald’s tells me that it believes higher costs are here to stay and we may see even more upward pressure. And with 58 million customers served daily, I think the company has a good reading on the global food pulse.

How Do You Play It?

First off, I don’t think it’s time to buy MCD; rather let’s stay focused on the folks that seed, fertilize and farm the crops that are turned directly into what we eat or used to feed the meat and poultry that may also end up on your plate.

The Mosaic Company (MOS:NYSE) piques my interest; I think the recent sell-off down to $75 makes this stock attractive. Even though the recent spinoff from Cargill may seem like the farming cooperative was calling a top in the industry, there are many nuances to the deal that I think many just got wrong.

Cargill is a mostly family-owned private company and will actually be swapping out most of its holdings in MOS in exchange for privately held shares in Cargill that are currently held in trusts. The balance will be used to pay down debt and keep Cargill private. Cargill can now get back to its core business and let the volatile stock of Mosaic grow on its own.

Mosaic was actually created in 2004 from the merger of Cargill’s crop nutrition unit with IMC Global, which is where the large holdings came from.

In 2009, rumors were swirling about Cargill actually buying MOS, but in reality, MOS is a stock that will now be wholly owned, which may actually make it an even more attractive takeover candidate.

The world’s hunger will continue to grow and the Mosaic Company (along with others) will help feed it.

Editor’s Note: Market chaos ready to hand you a potential $1.2 million! Thanks to a hot new niche market, you can turn ongoing market chaos into a seven-figure fortune. Follow this link for all the details…

About the Author

Jared Levy is Co-Editor of Smart Investing Daily, a free e-letter dedicated to guiding investors through the world of finance in order to make smart investing decisions. His passion is teaching the public how to successfully trade and invest while keeping risk low.

Jared has spent the past 15 years of his career in the finance and options industry, working as a retail money manager, a floor specialist for Fortune 1000 companies, and most recently a senior derivatives strategist. He was one of the Philadelphia Stock Exchange’s youngest-ever members to become a market maker on three major U.S. exchanges.

He has been featured in several industry publications and won an Emmy for his daily video “Trader Cast.” Jared serves as a CNBC Fast Money contributor and has appeared on Bloomberg, Fox Business, CNN Radio, Wall Street Journal radio and is regularly quoted by Reuters, The Wall Street Journal and Yahoo! Finance, among other publications.

Fil-Estate Land (LND) hit the stock market headlines once again yesterday when it surged by 9.63% from opening of PHP 2.23 to a closing of PHP 2.39. Now, a lot of you might be asking if there is still some more upside on this issue. remember that back in December 23, 2010, LND was just trading at around PHP 1.03. So given its price action from that time to present, I would say that yes, LND could still move higher. As you can see from its chart above, it just broke out again from a symmetrical triangle. This breakout could be considered valid given the amount of volume the move had. By projecting the height of the symmetrical triangle from the point of breakout, LND could head towards the PHP 2.90 level. It’s uptrend from December is well intact, therefore, any dip in the prices as long as it is above or along the uptrend could be taken as a buying opportunity.

Over the longer horizon, you can see that LND for the most of the decade was just trading within a trading range or a rectangle or a box before it broke out last December. The breakout from the trading range gives us the same upside of PHP 2.90, more or less. As you can notice, the recent upward movement that it is doing has been consistently supported by amount of participation. And as long as buying interest remains, the chances of it reaching its upside target is pretty good.

More on LaidTrades.com …

The Philippine Stock Exchange Composite Index (PSEi), which is composed of thirty listed companies, bounced at the at the 3,881.34 level last Monday after a 5% drop a week ago due to China’s inflation concerns. In the process, it could have formed a falling wedge pattern inside the 2-year ascending channel. A falling wedge, as some of you might know, is in fact a bullish pattern as it represents a temporary retracement. This pattern will be validated once the breakout occurs. If the resistance gets cleared out, we could get the size of the falling wedge’s base and add it to the possible breakout point. In that case, there could be a minimum upside target for the PSEi that would reach the 4,413.42 all-time high. However, before it reaches that level, it first needs to surpass the 4,246.27 resistance. On the flip side, if the falling wedge fails to perform and the index drops, the ascending channel’s support could be a good stronghold. The PSEi however is currently moving below the 50 and 100-period  moving average which hints weakness. But if you personally ask me, I’m still bullish on this as long as the 2-year ascending channel remains intact.

More on LaidTrades.com …

By Sara Nunnally, Editor, Smart Investing Daily, taipanpublishinggroup.com

You know those “Talk to Chuck” commercials with the “animated” interviews with investors disappointed with their brokers? Well, there’s one with a guy who says:

I mean, these financial services companies are still talking about retirement like it’s some kind of dream. It’s either this magic number I’m supposed to reach, or it’s beach homes, or it’s starting a vineyard… Come on! Just help me figure it out in a practical, “let’s make this happen” kind of way. A vineyard? Give me a break.

These Charles Schwab ads are catchy, and they inspire people to get back in the trenches and work toward a realistic retirement.

(Note: The mention of Charles Schwab is in no way an endorsement of the company or its services.)

What will that retirement look like for you?

No doubt you’ve feared that you’ll have to work until you die… I asked our Taipan Global Summit attendees in Las Vegas this year if they were still scared of the economic crisis we’re not quite over. Nearly everyone raised their hands.

And to be honest, there are certain sections of the economy that still look awfully grim, like the housing market and unemployment. It’s enough to make me a little leery of the market rally.

In fact, on Monday, I was talking to Jordan Goodman, host of The Money Answers Show on Voice America about Barbarians of Wealth. During one of our breaks, Jordan noted that the Dow was just about to hit 12,000. Our back and forth went a bit like this:

Jordan: “As we’re talking the Dow’s about to hit 12,000.”

Me: “Yeah, it’s a bit scary.”

Jordan: “I take it you don’t trust this rally.”

Me: “No, I don’t. But you can’t really fight it, can you? We’ve been telling our readers that if you’re going to be bullish, you should also be hedged.”

The long and the short of it is that despite the major comebacks in the market, there are still some serious problems that will take years to fix. And that means your retirement could still be at risk.

(Investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let me and my fellow editor Jared Levy simplify the stock market for you with our easy-to-understand investment articles.)

Protect Your Retirement

One of the ways some investors are working to protect their retirement is by looking abroad. I’m not talking about investing in international stocks, though we do advocate a well-rounded, diversified portfolio that includes international companies.

I’m talking about retiring overseas.

This has become more and more popular. Boomers Abroad, an online community of baby boomers who were “seeking a new life,” notes that the number of Americans and Canadians living abroad will double in the next 10 years.

Right now there are about 7 million folks doing just that…

And as I look out my window on this cold Wisconsin winter morning, with overcast skies and eight inches of snow on the ground, I can’t help but be envious of those folk who have found warmer weather and beach homes that the “Talk to Chuck” advertisement is trying to steer us away from.

But let’s take a look at that idea for a minute. Maybe you can’t afford a beach home in the popular and exclusive North Palm Beach, Fla. Or maybe you can, but you don’t want to blow your entire retirement fund on a $4.2 million home.

But take that same idea — beach living — and transplant it to another country, with even more amazing views, and the potential for your retirement home to double in value.

That’s hard to find anywhere in the United States… but not in Nicaragua.

Let me explain.

Rancho Santana is a residential community set on rolling hillsides and dramatic cliffs rising away from the Pacific Ocean. Located just 50 miles north from the Pacific border of Costa Rica in the southwest corner of Nicaragua, this stunning 2,700-acre reserve boasts more than two miles of Pacific Ocean coastline and five distinct beaches, three of which are accessed only by this private gated community.

It’s your own piece of heaven. At Rancho Santana you can enjoy world-class oceanfront living and dining, spectacular beaches, nature trails, an authentic horse and ranch atmosphere, and breathtaking sunsets.

Rancho Santana was the brainchild of Agora, Inc., of which Taipan Publishing Group is a subsidiary. Bill Bonner, founder and president of Agora, wanted a place he could travel to, rest at and enjoy… and eventually retire to, but a place that wasn’t typical in any sense of the word.

He found his retirement paradise in Rancho Santana. Rancho Santana is simply beautiful. Just listen to what others have to say:

“Rancho Santana is simply stunning.”
Forbes’ 2009 Retirement Guide

“Inexpensive, beautiful land and a cost of living at a fraction of what is in the U.S.”
Christian Science Monitor

“The ease of purchasing land, tax incentives, low crime and a laid-back lifestyle on a gorgeous stretch of coast make it appealing.”
The Los Angeles Times

Over 50 homes have already been built, and 24 villa units are under construction. The terrain is such that different homesites can capture varying views of the ocean, valley, sunsets and horses to suit your personal tastes. A master association and various sub-associations exist so that you can be assured that high and consistent standards of quality will be maintained.

But this kind of detail, and lifestyle descriptions can’t compare to actually being there. That’s why I’m telling you about Rancho Santana.

The community is holding a “chill weekend” for potential residents to come and see what Rancho Santana is all about… and what your potential seaside retirement home could be like. Of course, these “chill weekends” generate a lot of interest.

That’s why we have to limit the amount of people who can sign up.

Currently, only our Millionaire’s Circle members can take advantage of Rancho Santana’s “chill weekend.” If you’re already a Millionaire’s Circle member, you can send Sandy Franks, our executive publisher, an e-mail about your interest in attending. Email to: [email protected].

If you’re not a Millionaire’s Circle member, you can learn more about becoming one here. This Rancho Santana “chill weekend” is just the tip of the iceberg when it comes to Millionaire’s Circle perks and exclusive access.

So check out what this service can offer you.

Editor’s Note: Millionaire’s Circle members get unprecedented access to all Taipan Publishing Group services, conferences and “White Glove” events. They get premium reports and research papers, and are exclusive invitees to our investment “Boot Camps.” The service is designed for just one purpose — to make you money. You have the power of the whole Taipan think-tank behind you, every step of the way.

I sincerely urge you to consider making the Millionaire’s Circle a part of your future wealth and prosperity.

P.S. How to get a cut of “Mr. Le’s” million-dollar retirement… One senior Communist official is poised to start collecting a million-dollar retirement check, as early as tomorrow. Act immediately and you could ride his coattails for a 400% gain. Learn more about this investment opportunity from American Wealth Underground.

About the Author

Sara is Co-Editor of Smart Investing Daily. As Senior Research Director and global correspondent, Sara Nunnally’s diverse resume includes studies in art history, computer science and financial research. She has appeared on news media such as Forbes on Fox, Fox News Live, and CNBC’s Squawk Box, as well as numerous radio shows around the country.

As Senior Research Director, global correspondent and co-editor of Smart Investing Daily, Sara has traveled all over the world in search of the best investment opportunities to recommend to her readers, be they in developed economies like France and Italy, in emerging markets like the Czech Republic and Poland, or in frontier terrain like Vietnam and Morocco. Her unique “holistic” approach of boots-on-the-ground research has given her an edge in today’s financial marketplace as she searches for the next investment opportunities in hot sectors like alternative energy, currency markets and commodities.

Treasury management is the process of managing financial risks that may be associated with trading or management of a company’s holdings. This includes foreign exchange risks that can be a result of ever fluctuating forex markets. Treasury management in regards to forex is extremely vital for ensuring protection against fluctuating exchange rates especially when dealing with imports and exports of goods and services. SMEs (small to medium sized enterprises) often cite the dangers of entering a volatile exchange markets as reasons for not engaging in foreign trade. So how can treasury management services that focus on currency risk management help SMEs?

As previously mentioned the currency markets are by their very nature in a state of flux. Fluctuating exchange rates make management of payments, incomes, budgeting and forecasting extremely difficult to maintain, processes essentially for the running of the financials of any business that deals with foreign partners and clients. Whilst it is not unusual for large corporations to have currency management departments within their financial teams, SMEs (small to medium sized enterprises) find the management process of financial factors difficult with an already stretched financial team. Multiple payments that result from various processes within the business cycle can contribute to inefficient financial processes.

External foreign exchange risk management services give SMEs the ability to utilise the experience of foreign exchange experts to fully take advantage of fluctuations within the forex markets to ultimately bring SMEs better value from their financial processes.

Foreign Exchange Treasury Management services not only manage the risk element of financial processes but also help SMEs develop strategies to utilise the markets to bring better returns.

So what does a forex expert actually bring to the table in regards to management of your financial processes? Foreign exchange brokers provide ongoing information on exchange rates and undertake reviews of the SME’s current foreign currency and payment processes. Once they have analysed these processes they can provide recommendations on how to improve these functions. Foreign exchange dealers provide guidance on all aspects of cash management, from banking structures, cash pooling and cash concentration techniques.

Ultimately it depends on the priorities of the business. If the business deals with a variety of currencies then they will need to consider how their own FX policy is structured. A forex dealer who specialises in treasury management can develop a sound FX policy and develop an appropriate strategy to deal with multi payment schedules, budgeting and costing.

The benefit of using a specialist when it comes to foreign exchange is the knowledge of the markets. Forex treasury management services utilise the skills of foreign exchange experts to ensure the client receives competitive commercial rates of exchange in both spot and forward markets by optimising the timing of currency purchases. They do this by closely following the currency markets, keeping on top of the economic and political environments to interpret foreign exchange market movement.

SMEs are reluctant to engage with an export strategy due to the perceived dangers of an ever changing forex market. Research carried out by Corporate FX have found that over 50% of SMEs believe fluctuating markets effect their decisions to trade overseas. Management of this risk is integral to optimise profits yet only 44% of SMEs that export engage with active forex risk management. The education of SMEs is of paramount importance in encouraging SMEs to trade overseas and one way of education is to utilise the skills of external treasury management services to streamline financial processes that rely on currency trading.

About Corporate FX

Corporate FX is a privately owned company. Registered in 2001 and based on Cornhill in the City of London since 2007, we are a market leader in supplying commercial forex trading services and hedging strategies including trading Spot Forex and have developed a highly personal treasury management service.

Jan. 28 (Bloomberg) — John Paulson made a personal profit of $5 billion in 2010 after making $4 billion in 2007, the Wall Street Journal reported, citing people close to his investment firm Paulson & Co. Inc. Bloomberg’s Deirdre Bolton reports in today’s Movers & Shakers. (Source: Bloomberg)

Good Morning. It’s Friday, January 28, 2011. At this hour, U.S. equity futures are mixed. Overseas, the Asian markets were mixed , while the European markets are also mixed. Borders (BGP) receives refinancing commitment from GE Capital (GE)…Verizon (VZ) acquires Terrmark (TMRK) for $1.4B…Overstock.com (OSTK) files complaint against Goldman Sachs (GS) and Bank of America (BAC)…Microsoft (MSFT) sees business PC sales outpacing consumer sales…Pfizer (PFE) announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has been terminated in connection with the tender offer by its wholly-owned subsidiary, Parker Tennessee Corp., to purchase all outstanding shares of common stock of King Pharmaceuticals (KG) for $14.25 per share…