Month: February 2011

By Ben McArthur

The thought of being able to generate profits from trading Forex online has resulted in more people than ever trying their hand at Forex trading. Unfortunately for many of us, without the years of experience and the vast wealth of expertise that seasoned traders have amassed over time, these efforts are rarely profitable. Although there is no real substitute for knowledge and experience with any profession, Forex trading signals are popular simply because they allow a beginner to the game an opportunity to profit in a relatively short time.

Because of the sheer time frame it would take somebody to fully master the art of Forex currency trading, services that offer Forex signals are gaining in popularity over the last few years. These expert services will, usually for a new monthly subscription fee, alert the subscriber after they feel a potentially lucrative trade has arisen already in the market. The subscriber will then have a window of opportunity during which to follow the signal they need received, and place the trade they need been alerted to using their own broker.

The good thing about using a Forex signals service, is that a novice trader can gain from knowledge of a much more experienced trader and put a profitable trade which they themselves would probably not have identified. In theory, this set-up works quite well. The person(s) providing the signals can leverage their knowledge of the Forex markets beyond merely trading themselves, but also by selling the service to subscribers in their system. Note that these traders selling signals don’t actually teach subscribers their trading system, as it is much more profitable to simply tell them when their system identifies an attractive trade.

Forex trading signals services are popular with new traders because when executed correctly they work and are mutually beneficial to both the subscribers and the firms selling their signals. Sorry to say, as is often the case, there are those who sometimes are more interested in exploiting the popularity of these services and those seeking to benefit from them. Services that claim to be operated by Forex trading ‘professionals’ will often be nothing of the sort, and the signals they supply are simple auto-generated by a computer program. These systems are no longer beneficial to someone wanting to profit from Forex trading versus the numerous trading robots, or expert advisors, that are currently in the marketplace.

A good Forex signals service should provide two things. First, it should provide the subscribers with signals that are fitted with a high probability of being profitable, and these signals must be generated by real human traders with a sound knowledge of the currency markets. Secondly, a great service should allow a subscriber to really gain a deeper understanding of the Forex markets, and in time be capable to trade independently of the service using their unique Forex strategies.

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at the author’s website.

About the Author

Learn more about Forex and forex trading secrets at the author’s website.

Andrew Tan-led Alliance Global, Inc. or AGI in the Philippine Stock Exchange made some headway late last year when it announced its purchase of Fil-Estate Land (LND). Alliance Global, Inc., as we know is involved in three core businesses – real estate through Megaworld Corporation; food and beverage through Emperador Distillers, Inc.; and fast food through Golden Arches Development Corporation which is the master franchise holder of McDonald’s in the Philippines. The company also has a 50% stake in Travellers International which is the one that developed Resorts World Manila. December’s purchase of Fil-Estate Land only adds to AGI’s portfolio of prime companies.However, for 2011, it is its stake in Travellers International that is seen by many analysts to bring the bulk of profit to company. In fact, Travellers in is estimated to contribute around PHP 7 billion of the total expected PHP 13 billion plus net profit at the end of the year.

On the technical side, 2010 was a year to remember for AGI as it rose from an opening of PHP 4.10 in January all the way the way to a high of PHP 13.12 in December 6 before closing the year at PHP 12.50. Now, that’s a gain of about 204.5% in just a year! You would not get that from any kind of bank, trust or mutual fund products. Anyway, as you can see from its chart above, AGI’s breakout from an inverted head and shoulders pattern during the first part of 2010 propelled it towards its December high.Though after peaking at PHP 13.12, it appears that it has lost some of its upward momentum. From December to present, AGI has remained out of the radar by consolidating within a symmetrical triangle. For those who do not know, a symmetrical triangle which comes from an uptrend gives the stock an upward bias. Given this, a breakout to the upside could send AGI at least around PHP 15.18 (measured by projecting the base of the triangle from the likely point of breakout) in the medium term. A fall below the triangle’s support, on the other hand, could send it down to just below PHP 8.00. This could happen if the PSEi breaks down (it is dangerously hanging over a major support) as this could heavily weigh on the stock. Thereby, it’s more prudent for you to wait for the index to rebound and the stock to breakout before going long on AGI.

More on LaidTrades.com …

By Russell Glaser

An analysis of the major FX pairs for the coming week.

EUR/USD

While it may be premature to call a top in the euro’s recent rally, the failure of the pair to move above the 1.3860 combined with falling momentum point to further declines in the pair. Support will be found at the 1.3540 mark, not far from the 100-day moving average. A natural target for the decline may be 1.3480 which is the 38.2% Fib retracement from this year’s bullish move. This level looks to be bolstered as it coincides with the mid-December high. Should the pair continue to fall, the next target would be the 61.8% Fib at 1.3250.

GBP/USD

The failure of the GBP/USD to close above the downward sloping trend line on the weekly chart does not bode well for the pair. However, the daily chart shows the pair found support at the 1.6040 level. The rising short term trend line from the late January lows should also prove supportive. A breach below this could take the pair to the late January pivot at 1.5750. Resistance will be the 2011 high at 1.6280.

USD/JPY

The pair reached the bottom channel line of the downtrend and reversed its direction a full 180 degrees. A move below the channel line will target the 2011 low of 80.90. Resistance will be found in a range between the early December low of 82.30 and Friday’s high of 82.50. Further resistance is located at the falling trend line off of this year’s highs. The levels of 83.70 and 84.50 also stand out.

USD/CHF

The Swissie has come off its 2011 high and the USD/CHF and is currently pressing the 0.9590 level that coincides with a long term trend line which falls from the May 2010 high. A breach of the trend line next week will first target 0.9690, followed by 0.9780. Should the pair fall in-line with the long term trend line this week’s low of 0.9320 will be in play.

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.

By James Woolley

The idea of getting cash back every time you trade the forex markets is a relatively new one, however it has proven to be a very popular idea because there are now lots of companies that offer these rebates. So why exactly should you consider joining one of these websites?

Well let me first of all explain how these forex rebate companies work. They are basically introducing brokers, so it is in their best interests to drive as many people as they can to the various brokers that they work with.

They attract new customers by offering rebates on every trade they place (that is opened and closed) and they are subsequently rewarded by also earning a small commission on each trade. Now you may think that because the broker has to compensate two parties, the spread may be higher if you join a broker through one of these sites.

Well that can indeed be true. You may find that instead of trading a currency pair with a spread of 3 pips, which would be the case if you had signed up with the forex broker directly, you are suddenly paying a spread of 4 pips after joining them through the introducing broker, ie the rebate company in this case.

However the good news is that some rebate companies do not charge any higher spreads, and they are in fact exactly the same. So you really can earn some extra cash just by opening and closing positions, as you would normally. You may think that the rebates may not amount to much, but you would be surprised. If you are a frequent trader or you like to trade relatively high stakes, you can earn quite a lot every month.

The great thing about these rebates is that it doesn’t matter if your trades are winning ones or losing ones. You still get the same amount of commission per trade. So you could potentially find yourself in a situation where you have finished slightly down on the month, but the combined sum of all your rebates pushes you into profitability.

So the point is that if you are looking to open a live trading account with a forex broker, you may as well do so via a forex rebate company. As long as the spread is still the same for all the various forex pairs, you should be able to earn yourself a nice little income on the side for every trade that you make.

About the Author

James Woolley runs a forex blog that provides information on all the major forex brokers and reviews various different products and services including CashBackForex, one of the leading companies that offers forex rebates.

By James Woolley

A lot of stock market investors invest in a large number of different stocks because they have always been told that they should have a well-diversified portfolio. However there are a small minority of people who like to invest in just one or two stocks at any one time. So for those people, let me discuss some of the factors that you should consider.

If this is your preferred strategy, then you clearly need to spend a great deal of time choosing exactly the right stocks. If your entire portfolio consists of shares in just one or two stocks, then you could potentially lose a lot of money if you make the wrong choices.

So first of all I would recommend that you automatically exclude small-cap stocks, and instead focus on mid or large-cap stocks. I personally would only consider a few very large market-leading companies from amongst the large-cap stocks, but there are some great companies amongst the mid-cap stocks as well.

The point is that you want to eliminate as much risk as possible, which is why you should exclude small-cap stocks. Therefore you want to find some big name companies that are likely to be at the forefront of their respective industries for many years to come.

This means that you want to find companies that have long records of growth going back many years. More importantly, you want to do some thorough research to make sure that this growth is likely to continue in the future as well. So you basically want earnings growth and dividend growth.

Dividends are very important for this type of investment strategy because they can make a huge difference to your overall profits. If you only invest in one or two shares, then you not only want long-term share price appreciation, but you ideally want some healthy dividends as well. You can of course bank these dividends, but you are much better off ploughing these dividends back into your chosen shares to get the full effect of compounding growth.

Finally if you have income coming in from elsewhere, you could consider adding to your holdings whenever the share price is temporarily oversold. For example when the RSI and stochastic indicators are both below 30 on your price chart. This will again add to your long-term profits if the companies in question continue to increase their profits every year.

The point is that despite being frowned upon by some people, it is not actually a bad strategy to invest in just one or two stocks. If you pick good quality companies that you know inside out, and that you know will continue to grow in future years, then you can make some substantial long-term gains.

About the Author

Click here to read a review of the TradeKing broker, the popular online discount broker, and to read a full Zecco broker review.

By Ben McArthur

Here are some Forex trading tips you should consider before investing in Forex trading. Chances are you won’t get rich overnight but it may help to save your nest egg. The top traders know that controlling risk is just as important as knowing how to trade for big gains, if not more important.

Investing large amounts of money into something you haven’t researched is like trying to hit a target with a blindfold on, you might get lucky but it’s more likely you are going to hurt someone. Investing like this means the person you hurt will be yourself.

Set a limit as to how much you are willing to invest. You should only enter any market with the amount of money that you are willing to accept as a loss without too much damage to your overall trading capital. Find your personal comfort level and stick to it.

Listen to your instincts. A smart investor follows a plan, and that plan is in place way before the first trade is ever made. It can be hard to follow your instincts when the emotions of a live trade unfold. If you try to keep your mind-set the same as when you developed your strategy you’ll be more successful.

If a trade takes off, stay in control, don’t pull out too soon or wait for the bottom to drop out. Stay with your trading strategy, you should have a projected stop-loss in place. Just let it happen. If you see weaknesses in your strategy adjust between trades, not during them.

Never invest everything in one trade, no matter how confident you are. A seasoned trader will always diversify. Diversification is your safety net for huge losses. Without diversifying you could be out of the game before you had a chance to play.

Shop around for a broker. Not all brokers have the same spread (fee charged by brokers). Treat this like a business by keeping your costs low in order for you to better maximize your profits.

Always test a new strategy. You can find or hear about Forex trading strategies anywhere but, what may work for one person won’t always work for you. Test any new trading strategy with paper trades or in your demo account before taking it live. You may need to make adjustments to your new strategy; you won’t know that until you try it.

Following these 7 steps should help you to avoid a very costly learning curve. The Forex trading market will always be there when you are ready so, take your time, put together a plan and work the plan until you are confident you can make steady, consistent winning trades and then go for it.

Get more forex tips
the author’s website.

About the Author

Learn more about Forex and forex trading secrets at the author’s website.

By James McKee

For the first time in over two months the Euro is seeing highs above $1.38 against the USD, due in part to Germany’s tight control of spending and efforts to control debt in countries such as Greece and Ireland. Still more problems loom on the horizon for the Euro that will be centered around mounting debt in other countries such as Italy and Portugal. The mounting debt problems in certain countries within the EU is dragging down less-burdened countries along with them. Most of the debt has been shouldered thus far by Germany, who has taken a much more active role at all levels in the financial systems of Europe.

During the initial days of conflict in Egypt the Euro fell sharply as risk appetite dropped, and the currency saw renewed vigor as investors poured in. The Euro has always been the stable currency above the US Dollar but as time goes on if Europe does not find a way to address its mounting debt the EU may find itself in serious trouble very soon. Germany’s recent wrangling with issuing European debt that forces buyers to shoulder European losses was a controversial move that saw much debate world wide.

The forex currency exchange has seen a great deal of turbulence due to both poor financial planning and rampant civil unrest in Europe in recent years. The temporary highs of the Euro are just that, temporary; the austerity measures recently put it into place across the continent have been semi-effective at best. Currency traders should take note of the recent initiatives by foreign countries such as China making moves to purchase the debt of countries such as Portugal. Such moves will be required for overall financial solvency in Europe in the near future if the continent cannot pull itself out of its debt quagmire than the Euro will remain a risky investment.

About the Author

The author’s love of life is ultimately rooted in his drive to learn forex

By Ben McArthur

Forex trading can be a highly profitable profession. Because it is the largest financial market on the planet, Forex trading offers many opportunities to make profits.

But in order to become one of the elite Forex traders, you must have the proper plan in place to succeed. The most successful traders know that profiting and surviving in the markets takes knowledge and rigid disclipine. There’s no room for undisclipined traders who are not ready to have a solid strategy and the disclipine to stick to it.

1. The first secret of top traders is to accept responsibly for their trades. Never blame the market or bad advice for a losing trade. You are ultimately responsible for your success or failure.

It’s hard to emphasize enough the importance of having a trading system that has been proven to be profitable, and harder still to stress the importance of never varying from your trading system.

Your trading system is not perfect. Neither is the latest guru’s trying to sell you their newest system. The most important rule of your system and all of the others is simple: stick to the rules of the system and when you have a losing trade ask yourself this. Did I follow the system? If you did then evaluate what went wrong in the trade and see if there is anything in your trading system that can be refined to avoid a similar loss in the future.

2. Have a trading system that fits your particular style of trading. If you’re not comfortable day trading then obviously you would not want to use a day trading system. Many traders are not comfortable or simply don’t have the time to follow every little movement all day. Still others find day trading best suited for their style of trading and their temperament.

Some prefer to make short term trades and trade accordingly. By having a trading system that they are comfortable with, these traders can take a position in the market and let their system dictate when to exit the trade. A good short term system, used with appropriate stops, is a more stress free way to trade for many traders.

3. Have a plan and trade your plan. By having a well thought out plan in place before entering a trade, things become almost automatic. You know in advance where your entry point will be, where to place stops, when and if to add to a position, and where to exit the trade.

Properly planning your trades in advance takes away the emotional aspect and lets you trade in a more professional manner. Poorly planned trades can have a huge emotional effect on you if the trade goes against you. Instead of having a precise strategy in place, you are now trading more on emotions. This can not only have emotional complications, it can also wipe out your account.

4. A good trading education is worth it’s weight in gold. No one can reasonably expect to be a good trader without a proper education. Learn all you can about the Forex markets before ever making a trade. Study as much as you can about the proper mindset you must have and prepare yourself thouroughly before taking the plunge into trading.

Decide what type of trading strategy is best suited for you. Most good traders ultimately find that following and refining a trading system that fits their trading style will yield the best results.

There is a lot of excellent, and FREE software available that will allow you to hone your trading system and skills until you are comfortable enough to begin trading.

5. Positive thinking produces positive results. As was mentioned above, having a solid foundation about the Forex markets, developing a trader’s mindset and having a solid trading plan will go a long way to help you succeed as a trader. Disclipine to stick with your system and having a strict risk management regiment are vital to your success.

To succeed at Forex trading you must first believe that you can be successful. Doubting yourself and not having confidence in your trading skills will almost surely lead to failure. Prepare yourself with knowledge and have confidence in your own abilities at all times. These are the real keys to trading success.

Visit the author’s website for more Forex trading tips and forex secrets

About the Author

Learn more about Forex and forex trading secrets at the author’s website.

By CountingPips.com

The US dollar has been on the rise in forex trading action despite the worse than expected monthly government jobs report released today. The American currency has been gaining versus the euro, British pound sterling, Japanese yen, Australian dollar, Swiss franc and the New Zealand dollar today while showing a slight decline versus the Canadian dollar.

The US stock markets, meanwhile, have been mixed with the Dow Jones industrial average being just about unchanged, the NASDAQ up by over 10 points and the S&P 500 higher by approximately 1 point in the afternoon of the US session.

Gold futures have been lower by $3.80 to trade at the $1348.30 per ounce level while oil has declined by $0.95 to trade at the $89.59 per barrel level.

Today’s government jobs data came in much less than expected with a gain of 36,000 jobs for January following a revised gain of 121,000 jobs in December. Many market watchers blamed adverse weather conditions and January’s snowstorms as holding the jobs data down for the month.

Market forecasters and economists were expecting the nonfarm payroll report to show a gain of approximately 146,000 jobs for the month.

The unemployment rate fell to 9.0 percent in January from 9.4 percent and reached its lowest point since April 2009.

November’s employment data was also revised higher to show an increase of 93,000 jobs after a gain of 71,000 jobs previously reported.

Private companies created 50,000 jobs in January as the service sector added 32,000 jobs and the goods producing sector increased by 18,000 jobs. Government hiring fell by 14,000 workers for the month.

Professional and business services led the way in the service sector with job creation of 31,000 workers while retail trade hiring added 27,500 jobs in January. In the goods producing sector, manufacturing jobs rose by 49,000 workers while construction jobs declined by 32,000 workers.

Feb. 4 (Bloomberg) — Dean Maki, chief U.S. economist at Barclays Capital Inc., discusses data showing the U.S. jobless rate declined to 9 percent last month from 9.4 percent in December. Employers added 36,000 workers, the smallest gain in four months, after a 121,000 rise in December that was larger than initially reported. Maki talks with Betty Liu and Michael McKee on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)