Month: March 2011

By James McKee

With the continued faceoff between Democrats and Republicans the budget to be passed by United States officials continues to be an area of dispute; this has resulted in various US agencies being held at a standstill. The USD will experience a serious decrease in value against other majors on the forex exchange if the US government does not agree on a budget soon. The current situation has already resulted in airports and other public institutions to be unable to hire employees because of a lack of Federal tax dollars. Such occurrences are going to become more and more common if the government does not arrive at an agreement soon.

Currently the entire budget is being postponed for the upcoming year over 50 billion dollars in proposed cuts. This seems wholly insignificant in light of the fact that these cuts would be made from a 3.7 trillion dollar budget, however the proposed cuts would be mostly for programs that provide aid to education and other vital programs. This would be a disaster for the United States if the proposed cuts to be made were to go through.

The economy in the United States is still very fragile and by allowing the infrastructure to break down the US government is truly testing their luck. The USD and the US stock market are already under tremendous strain from both the Middle Eastern crisis and the nuclear crisis occurring in Japan. The Forex currency exchange is going to see a great deal of change where the USD is concerned in the near future due not only to budget disputes, but also the Federal Reserve’s upcoming bond buying program that aims to pump 600 billion dollars into the US economy. The United States government has a lot of fast-paced negotiation to do unless they want the government to shut down, although maybe it would not be such a bad thing…Belgium seems to be doing well.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly

Last week saw the dollar index pushing lower and closing below its November 2010 lows. Early last week our analysis suggested a slight pull back followed by a push lower. We’re now sitting at an important level on the DXY.

Any push lower from this area will lead us to the next support level which sits at 74.10 being November 2009 lows. A pull back towards upper resistance at 77.40 could be possible before the Dollar continues its decline

The weekly timeframe has the next resistance level at 78.90 with there being little in the way between the current price and upper resistance. However a continuation of the fall is looking more likely on the weekly timeframe.

We can also see a succession of lower highs and lower lows suggesting a continuation of the current downtrend we’re in on the dollar. Last week closed just below the previous lower low in our pattern, however a stronger push lower followed by a pull back will give better confirmation that this trend will continue.

Price action at this time is showing little on the DXY and waiting for the support and resistance levels to be broken or held will give a better idea as to where the dollar will be heading in the near future.

http://www.vantage-fx.com

By Vytautas Zilenas

Most traders know what trend trading is. It is a large move in stocks, commodities or currencies that could last for a few weeks or even half a year. This type of move is often called a mega trend. That’s when most money is made in the markets by most investors. However, as you may understand these mega trends do not happen too often, which means that if you miss one, you are out of work for whole year, provided you trade only trends. This situation can be solved quite easily if you took short term trends, which happen on a monthly, weekly and even daily basis.

Daily trends happen quite often and if you learn when to anticipate them, you can become a very successful day trader. There are some things that create various moves on a daily basis and cause a daily trend. Very often this happens due to various fundamental economic news releases. I would advise you to open some websites as dailyfx or fxstreet and copy a weekly economic calendar. Then you will have to mark those economic news events that are of high importance and watch what happens with various forex pairs when those pieces of news are released.

Not all events will cause strong moves. Reaction of market participants to these macroeconomic events mostly depends on the level of unexpectedness that the news creates. If news matches the forecast, there will probably not be a sharp reaction to the news and market will stay in its daily ranges. If the news fails to produce a move you simply do not trade it. What do you do then? You simply watch what happens at important support and resistance levels. They are either broken and this creates a huge daily move or they hold and you can trade a reversal pattern in a given security.

Trading support and resistance as a reversal or a breakout is one of my favorite day trading strategies. Lots of daily trends happen around these levels. In a very range bound market those levels usually hold. However if they don’t you have tremendous opportunity to catch a 100-300 pip move. If you looked at gbp/jpy or usd/jpy pairs today you will be able to see this in action. This is especially true about usd/jpy as it formed a two month channel and stayed in it for the last two months. Even though a disaster struck Japan it was not reflected in Japanese yen pairs. On the contrary, yen strengthened, which resulted in a sharp monthly breakout. So, had you placed some limit orders below the above mentioned pairs you would have made a few hundred pips.

About the Author

There are more opportunities for you to catch a day trend. If you are really interested in the subject I would invite you to visit my blog and find out more about trend trading. There is also a very good video that I have made which is called day trading strategies. You might watch that as well to understand the basics of day trading. I wish you good luck.

GBPUSD’s bounce from 1.5977 extended to as high as 1.6253 level. Further rise is still possible later today, and next target would be at 1.6300 area. Key resistance is at 1.6343, above this level will indicate that the longer term uptrend from 1.5344 (Dec 28, 2010 low) has resumed, then next target would be at 1.6500 zone.

Forex Signals

By James McKee

It is no secret that Obama is a huge proponent of clean energy and that his administration has pushed legislation to pursue this agenda. However, the reality of this effort has never been fully realized through encouraging growth in the green job sector, everything has been speculation and rarely action. Much of the industry has been forestalled due to actions against its growth coming out of the oil and gas industry. Powerful lobbyists have threatened both legal and political action if the government goes forward with support for this industry. The United States stands to gain 1.9 million jobs and over a trillion dollars added to the GDP, it seems like a no-brainer and it is for the common man; but for oil barons this is not something that is desirable.

The oil and gas industry’s voice may very well be silenced to a great extent shortly if the nuclear power plant in Japan has a meltdown. It is very well known at this point that using coal to power all of the world’s energy needs is insufficient, and the large cost related to oil and natural gas is also far too great for the world’s economy to accommodate. This gap in affordability has been filled up until this point with nuclear energy; the events transpiring in Japan have brought serious doubt to the long-term viability of “going nuclear.”

This has become a larger issue in light of the fact that the world’s economy has been suffering greatly, and the issue of using scarce funds to pay for such measures is not a popular idea. The United States needs to act swiftly if they hope to preserve their economy, and if they do not the value of the USD will suffer greatly on the forex currency exchange. If millions of jobs and a trillion dollars of GDP are added to the US economy the exact opposite will be the case.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly

With the tragic earthquake and tsunami playing havoc on the Yen last week it was very difficult to trade. Similarly to most Yen pair’s strength seen early in the week was soon balanced out after the Japanese intervention.

The EUR/JPY produced a strong Hikkake pattern on the weekly time frames. In the chart below you can see the outside bar from 3 weeks ago followed by the inside bar from 2 weeks ago finally followed by last weeks pin bar suggesting more bullish momentum to come.

Its important to remember last week was almost 100% influenced by news on the Yen and little technical’s or price action came into play. Although the set up below looks very strong it would be wise to ‘sit and wait’ on the Yen until we start seeing more stability which could take a while.

http://www.vantage-fx.com

By Cedric Welsch

Forex market or the currency market deals with currency pairs and their posting against each other for deriving profit out of it. Unlike the stock market, currency traders’ play in a relatively less volatile sphere and thus they can leverage stocks better. However, it is important not to belittle the predicaments and various investing dilemmas that currency trading might pose as well. An expert waves his trade scepter pretty well and the well-meaning novices either try a software or EA or learn the tricks themselves. For this, they require currency trading education.

This education can imbibe the essentials of currency trading in them. This is a multifaceted study and can involve reading of information, reading of technicalities also known as technical analysis, thorough reading of pips and the ways to post them, comprehending pair volatility index, understanding the need of entry and exit points, summating the varying reasons for sudden support and resistance among other things. Obviously, we have not talked about the tip of the iceberg yet.

Let us take the case of entry and exit points. You must begin to understand how a particular currency works. Once you are blessed with the grasp of its recent volatility, you would be able to confer how it may play on the given day. You can add information based fluctuations that may occur. For instance, a sudden military coup in Israel can cause the ISA to dwindle. This means that such important events also have a lot to speak for a currency.

You must also understand the technical analysis aspect of the game. The software and EA generally ruminate over it. It includes various candlestick patterns, indices to grasp what might be the closest area of resistance, and until what point is support expected from a stock on a given day. Once you take into account all these features, you can post a pip (entry point). Guided by the turn of events in relation to these analyses, you can find an exit point.

While receiving currency trading education, you can simultaneously learn about the portfolio management ideas and investment strategies. The latter can be procured from various net portals that monetize by imparting currency investment ideas. Thankfully, technology is doing pretty well today and you have various softwares for teaching you all about the currency pairs. Most of these softwares work over Meta Trader 4 platform and are can be downloaded without any fuss.

About the Author

You should always conduct a good forex research. This way, you can find forex scam review places to guide you along.

By Cedric Welsch

Future market trading is just like any type of stock trading. By diligently analyzing the market, investors predict that the price of a certain stock will rise by a certain amount. Therefore, by instinct they would like to buy as many units of the stock so that when its value rises, they would turn in a profit. In a perfect world, the fearless forecast wins and everybody is happy. However, there is no crystal ball to predict the rising and falling of stock value. If the opposite happens, they obviously lose a substantial part of their investment and that is that. As investors, they roll with the punches and stop for the day.

Fortunately, there is an easy way, and this is where future market trading comes in. This presents an opportunity for investors to minimize their possible loses by buying only a token value of the stocks, which is called, exercising an option. That way, their financial exposure is minimized. At the same time, it gives them a so-called advantage because by paying only a small amount per stock, which amounts to a token value, they control more units. In ordinary parlance, the simplest representation of a lever is a block of wood or chisel that a construction worker would position under a heavy rock. By turning the block, he or she finds an easy way to move the rock from one point to the other, until it gets to where it is supposed to be.

So too with leveraging a futures trade, the investor ends up with more units under his or her control and bidding. This is the primary reason why some people prefer future market trading. It is like taking hold of the TV remote in one’s living room. However, even a caveman can leverage. What is more difficult is to analyze stock trends. Obviously, this takes a lot of time, effort, and intellect. Nevertheless, like most anybody on a learning curve, there eventually comes a time when the person becomes a master of the game. Still, it is important not to become complacent or over confident when that moment arrives. In addition, the learning curve is relatively not as stiff because the individual is dealing with short-term stock behavior. Some may look at the expiry date on every option like a ticking time bomb, but market players who make use of their time wisely might actually find this Godsend.

Just as anywhere else, everyone should be careful with borrowing, which in this world is referred to as buying on margin. It is just as easy to get addicted to the use of credit cards as to borrow money from the stockbroker. Luckily, there are controls or regulations in place. Typically, investors can only borrow up to fifty percent of their total exposure. Future market trading owing to its unique attributes may look relatively simpler, but this is easier said than done.

About the Author

You should always conduct a good forex research. This way, you can find forex scam review places to guide you along.

By James McKee

Major currencies on the Forex currency exchange (especially the USD) have been undergoing much turbulence since the crisis in the Middle East began. What started out in Tunisia spread to Egypt and is now raging in Libya in the form of a civil war. Cities held by rebels for weeks now are being threatened with all out war by the Libyan government saying they will be sending in troops to re-take the city. While Libya may only contribute 5% of the world’s oil supply they are also setting a precedent for the entire Arab world and investors are scared.

It is not just the USD that is in danger, the Euro are the currencies being affected most by the Middle Eastern crisis. The United States is of course being affected because of how dependent they are on Middle Eastern oil, but Europe is seeing quite a bit of discourse due to Italy’s large dependence on Libyan oil. Libya shows signs of having their internal conflict intensify, not calm down…the simple truth is that the Libyan government under Gaddafi is again seizing control of the country. Despite the fact that it may take a couple more weeks the Libyan conflict is on the way to being resolved one way or another.

The latest uprising has occurred in Bahrain, the financial headquarters of the Arab world has seen a good deal of turmoil recently. Bahrain is far different than Egypt or Libya because it is not an oil producing country; instead it acts as a banking hub for the countries who do conduct oil production. Major currencies on the forex market will continue to experience instability until the Middle Eastern conflict is corrected and the conflicts are resolved. Currently there are signs of Saudi Arabia experiencing unrest and if they enter a civil war the damage to the USD is incalculable.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly

By Cedric Welsch

When you talk about the stock market in general, basically you are referring to stocks really, because obviously the stock market is all about owning stocks, buying them and selling them. In other words, the market has everything to do with transactions purely related to stocks.

Investing or trading stocks, is one of the most powerful mediums man has ever come up with in terms of creating wealth. When investors talk about making profits through the means of investments, stocks will inevitably always be part of the main conversation, simply because investing in stocks can return amazingly huge amounts of profits if done right.

In order for you to become a part of the super large community of investors that are amassing wealth through investing in stocks, you should first have a clear knowledge about how trading in the stock market works really. Although this form of wealth building has been present for ages now so to speak, there has been a tremendous outpour of stock trading enthusiasts in the most recent years. This is because, the once investment medium that is only known to wealthy men is now openly available even to the common individual who simply desires to become wealthy through stocks.

The high curiosity of the common guy next door and the availability of the entire stock market trading to the public have sparked the sudden explosion in popularity of this investment medium. However, although as highly popular as it may seem already today, not everyone is able to make their dreams come true with the help of the stock market. The primary reason for such disappointment of many struggling enthusiasts is their lack of knowledge for it.

As a beginner in this game of trading stocks, you cannot just rely on passed on knowledge or information from people who are just learning the ropes themselves in the stock market. There have been countless of made up stories about certain individuals making a killing off of the stock market. Sadly, most of these hyped up stories are just mere fabricated claims.

You cannot look at the stock trading system to be just another get rich quick type of bubble phenomenon. The people who become wealthy at this are those that decide to really know the in and outs of the entire trading system. In other words, it’s as if trading and stocks is the oxygen they breathe. Yes, it actually becomes their full time career. This is how the successful investors become extremely wealthy with the stock market. They are just too familiar with the system already, that they know exactly how and what to do in order to make profits out of their investment each time.

About the Author

You can benefit from online stock trading services. However, it’s advisable to only work with the best online stock trading service.