Month: July 2011

By Harjeet

India is expected to increase its growth rate to 9-9.5 per cent during 2013-15 on the back of continuing structural reforms, globalisation and a sterling demographic dividend, according to a report by Morgan Stanley. These projections act as a catalyst in showcasing the quantum of investment opportunities in India. Similarly, the senior economists opine that the Indian economy may have expanded at close to 9 per cent-in the three months from April to June 2010-its fastest pace in more than two years, driven by high industrial growth and increased private investments.

Investment opportunities in India have resulted in an overall growth in various industrial sectors. Kaushik Basu, Chief Economic Adviser to the Ministry of Finance, had forecasted that the Indian economy would grow close to 9 per cent in the first quarter of 2010-11. Highlighting the infrastructure sector in March 2010, the Planning Commission had said that India investment opportunities in the infrastructure sector in 2010-11would be close to the target of US$ 500 billion (Rs 20 lakh crore).

Foreign direct investment (FDI) trends lucidly present the growing Indian investment opportunities by the overseas investor. Various foreign firms across different industrial sectors are on a look out for investment opportunities in Indian market.

Giving a boost to the Indian economy auto sales grew 31.5 per cent in July 2010 over the corresponding period last year, as per data released by the Society of Indian Automobile Manufacturers (SIAM). Furthermore, US Agency for International Development (USAID) through its clean-tech energy initiatives is exploring the potential of investing in India by partnering stakeholders and mentoring and working with the policy makers. Similarly, IBM announced that HPCL- Mittal Energy Limited (HMEL) has selected the company as its strategic partner in the design and implementation of a state-of-the-art manufacturing execution system (MES) for their zero residue refineries at Bathinda, Punjab, thereby representing yet another foray of Indian investment opportunities. Furthermore, investing in India especially with view to medical tourism in India is expected to grow to US$ 2 billion by 2012, according to a report from McKinsey and CII.

The Indian economy would grow to USD 1.72 trillion in 2011-12, moving closer towards the USD 2 trillion marks, according to an assessment by the Prime Minister’s Economic Advisory Council (PMEAC). The Indian economy grew by over nine per cent for three years in a row from 2005-06 to 2007-08 and expansion was maintained by industry and services sectors.

Moreover, giving impetus to the India investment opportunities for overseas investors, Mr Anand Sharma, Union Minister for Commerce and Industry, in the annual supplement to the Foreign Trade Policy (FTP), has unveiled various export policy support measures covering labour-intensive segments such as leather, handloom, and handicrafts, and some engineering sectors.

About the Author

Harjeet is an Indian – born mass-market novelist, who covers the world internet related topics. He writes columns and articles for various websites and internet journals in the domain of India Investment Opportunities and Investment strategies.

EUR/USD

After a gapping lower to start last week the pair moved below the 200-day moving average and on the subsequent rebound the EUR/USD found resistance at its 100-day moving average, a previous level the pair struggled to close below between the months of April and July. While the rebound higher was sharp the failure of the pair to move above the 100-day moving average and to close above the opening gap signals weakness in the pair. Initial support is found at last week’s low at 1.3870 followed by the rising trend line from the June 2010 low which comes in at 1.3750. A break here is significant as it would compromise the long term uptrend for the euro, exposing the 50% retracement level at 1.3410. To the upside last week’s high at 1.4290 is the first resistance followed by the falling resistance line from the May and July highs at 1.4490.

GBP/USD

The GBP/USD price collapsed only to find support at the 38% retracement level of the May to April move at 1.5780 while the rebound higher was capped at the neckline from the head and shoulders reversal pattern. Positive divergence is found on the RSI-14 as the price made a new low but the RSI did not. This signals a potential warning sign for sterling bears. Resistance is located at 1.6230 off of the falling trend line from the April high. Above this level the previously broken trend line from the May to April move at 1.6330 will come into play. To the downside a break of 1.5780 would signal a resumption of the downtrend and would target 1.5650 which has served as both support and resistance in October and in December of last year.

USD/JPY

The USD/JPY downtrend resumed with a vengeance last week as the pair broke below the 80 yen “line in the sand” and the support from May 5th at 79.55. This level has now turned into resistance as often happens to previously broken support levels. Only last week’s low at 78.46 and the bottom of the long term wedge from Sept 2004 at 77.60 (not shown) stands in the way of the all-time low at 76.11.

USD/CHF

The Swissie has moved in one direction and one direction only. The pair made a halfhearted attempt close above its 50-day moving average and moved sharply lower from there setting a new all-time low at 0.8082 which serves as the initial support level. Any move higher may find resistance at 0.8275, the falling trend line from the February high which comes in at 0.8450, and 0.8550.

Read more forex trading news on our forex blog.

By Taro Hideyoshi

At first, the professional day traders are persons who trade in the provided trading room of brokerage firms. They have right amount of training and experience.

As the revolution of technology, traders can now trade remotely from their homes. Every brokerage firm provides direct access and electronic execution equipments that allows traders to have the same level of execution access as if they are in trading floors.

Therefore there are many new comers enter the trading without proper training or any experience. I write this article intend provide information in day trading for those who want to join day trading business.

The simple definition of day trading is you end each day flat. It means you go home without any open position at the end of each trading session.

To be a successful day traders, you must be able to maintain a proper psychology, mental attitude and focus. In addition, you must have sound money management strategies and keep developing knowledge of the market.

One of the most important things for day traders is you must understand the risks involved in day trading.

Generally, traders who buy securities on margin do not fully understand the risks involved. Traders who open a position in volatile market buy putting up an initial margin payment may find themselves being called for margin to keep their margin at maintenance margin level if the price does not go in their desired direction. This is where amateur day traders run into problem. If they cannot maintain their margin level, they will be forced to cover their position.

To succeed at day trading, you have to take no position home overnight at the end of each trading day. If you stick with this discipline, you avoid the overnight risks. The day trading is limited by time and the average range of traded price. Therefore you have to be in the position that can control your risk and the size of your losses. It is the key of success in trading.

Typically, the average size of a day trader’s profit will be smaller than other styles of traders. It is because of the limitation of time and range as I mentioned. So, the most important things you must manage to be a winner in day trading business are to minimize the size of your loss and maximize the profit on each trade. And you have to do this as many times as you can.

About the Author

Taro is an experience trader who trades in stocks, futures, forex. He strongly focuses on technical analysis, trading systems and money management.

If you would like to find more articles on MetaStock Tutorials, MetaStock Formulas, Trading Systems and Money Management. Please go to MetaStock Trading System.

You would also find the interesting books in investing, trading and business at The Investing Books.

By Nicholas Dockerty

When you trade CFDs you never physically own the underlying financial instrument and that means you can take a position on the financial markets at a lower cost than more traditinal methods of trading.

With CFD trading, because you don’t have to pay the full value of any position you take up – just a small deposit (margin) – you can leverage up to 20 times your initial capital outlay. This is called trading on margin.

Trading CFDs can help you profit from falling as well rising markets.
A CFD (contract for difference) is an agreement to exchange the difference in value of a share at the time it is opened and at the time at which it is closed.

Simply put, with CFD trading you ‘buy’ (go long) if you want the market to rise and ‘sell’ (go short) if you expect it to fall.

The amount of money you make, or lose, is determined by the amount of contracts you hold multiplied by the difference in price at which you opened and the price at which you closed.

You pay a small initial deposit (margin) and a commission which is calculated as a percentage of the value of the transaction.

Unlike traditional share dealing you won’t pay any broker’s fees or stamp duty.

With CFD trading it is possible to benefit from Direct Market Access which means any contracts you open will go directly to the stock exchange and will be at the underlying market price.

The range of markets you can trade CFDs on is extensive and similar to what you would expect if you were using more traditional methods to trade; from forex to shares to indices. They also offer some new and innovative ways of the financial markets like the always exciting binary trades.

About the Author

To find out more about the CFD and the financial markets visit www.igmarkets.com.sg.

Remember CFD trading can result in losses as well profits so make sure you understand all the risks involved.

Currency Speculators cut Euro Long Positions. Yen Longs rise.

By CountingPips.com

The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that large futures speculators trimmed their long positions of the euro against the US dollar to their lowest level since January while staying overall bearish on the British pound sterling. Non-commercial futures positions, those taken by hedge funds and large money speculators, added to their positions in favor of the Japanese yen, British pound sterling, Australian dollar, Canadian dollar, Mexican peso, New Zealand dollar and the Swiss franc directly against the US dollar while decreasing their bets for the euro, according to data on July 12th.

This week’s notable changes were euro positions declining to the lowest level since January while New Zealand dollar positions continued to rise and increased to their highest level since November 2010.

Read Full Article

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By Forex Mansion

Online trading software is software that is downloaded onto your computer and makes available numerous trading tools through the internet. It is via the software that you can track the market and perform trades. In most trading platforms you will find the following basic functions:
• Trading
• Currency rates
• Open Positions – Position Closing
• Entry Orders
• Account
• Account history

Features and Functions – Don’t Trade at a Broker Without Them!

The most basic function you can expect to find in trading software is the trade function. This will most likely be some sort of window in which you can bid for (sell) or ask for (buy) currency. You enter the amount of lots you wish to trade, and with the click of a button, you’re trading.

The next basic feature is the currency rates display window. This will either be a table or a chart. The currencies are listed by pair and there will be a buy price, sell price, day high, and day low. Ideally, you should look for software that has a live feed; with a live feed, you know that you are trading with the most up-to-date information. In the display window, you will have options for how to view the charts (whether you prefer Candlestick, line, or bar). Additionally, another important feature is the automatic calculation of important market indicators that will help you predict trends and stay one step ahead of the game.

The positions window will display all of your open positions. (Open positions are buy-orders that haven’t been sold, futures contracts, or other risk holdings). Many programs will automatically calculate your position on a given currency accounting for the net total of all of your holdings. For example, if you are holding on to USD/JPY and USD/EUR that are waiting to be sold, the program will automatically offset the price of the yen and the Euro to give you the current net worth of your USD position. Some software will allow you to preset a price at which you want to close your position, and will the subsequently automatically perform the trade when the said price becomes available.

Entry orders will allow you to preset a price at which you want the software to buy or sell. For example, an entry limit order will set a low limit at which the program should purchase or set a high limit at which the program should sell. An entry stop order means the reverse, i.e., to liquidate if the price drops.

Another standard function is a display of the status of your account.

This will include:

• Total account balance
• Equity (balance offset by positions)
• Used margin (open positions)
• Usable margin (available equity)
• Total gain and loss in all open positions

The software should also offer your account history. That includes all trades, open and closed positions, contracts bought and sold, etc… You should look for software that offers analytic reports of you account history; this will allow you to look back and learn lessons from your prior trading history.

Online trading software is the best way to take advantage of the modern world of forex. The software makes available all the necessary tools for profitable trading. It is highly recommended to open a demo account and try out the software for yourself. Many online brokers will allow you to open free accounts with no real monetary commitment in order to experience the easy use of the software. In the modern forex market, have online trading software is like having a little computerized broker at your fingertips.

To know more about the best Forex Trading Programs and stocks day trading program from reliable forex brokers, visit http://www.forexmansion.com .

About the Author

Getting started in trading forex online? Read this article and learn what online trading program provides and the crucial role it plays for today’s forex trader.

By Warren Seah

Investing in the forex market has become one of the most popular forms of trading, mainly because of its 24 hour access and the fact that there is always a bull market available- a concept that is rather attractive today.

But what if you don’t want to become a full-time trader? What if you just want to spend some time trading because you already have a job you like? Or what if you’re just looking to make a few extra dollars every month trading on the side? That’s where Forex automated chart trading software come in.

Successful investing shouldn’t be defined by time, but more importantly by results. With Forex automated chart trading as your assisting tool, you’ll learn how to execute successful forex trades without spending every waking hour in front of the computer screen.

Draw, Apply and Do Whatever You Want to Your Charts. Finally, Trade Them According To Your Chart Set-Up

Analyze the market and draw trend lines, support and resistance anywhere on the chart and even on your favorite indicators for further analysis. Prepare the charts and trade according to your charts

Trade Most Technical Chart Patterns On Auto Pilot

Since most brokers and books talk about the importance of chart patterns, we not only want to recognize these chart patterns but also to trade them. We created a bridge to connect the missing puzzle. No longer do you need to stick to the screen to trade these chart patterns, most of these automated chart trading tools have the technology to allow you to recognize the forming patterns and to automate trade entry as the patterns unravels to your Forex analysis.

Hands’ Free Trade Entry Automation

Automated chart trading software will make an automated entry according to your charting analysis. As market breaks resistance or cut across support levels, a signal is generated and recognized by the software to make an instant trade execution. This allows the trader to participate in the market even if he is working or sleeping.

Emotion-Free Trade Management

Handling an ongoing trade can be pre-set by simply drawing a take profit level on the chart prior to making a trade.

Super Charting Technology – Delivering Complete Control in Trading Technical Chart Patterns

This new technology recognizes the trader’s chart analysis and executes the set of instructions by the trader in trading Forex Chart Patterns. Trading these chart patterns is simple, precise and fully automated.

Signal Generation Capability

Even without opting for the entry automation, you can still have a signal generated by your analysis to inform you of a potential trade and get yourself involved in trade execution.

Filter Baddies away!

You can have lines drawn on your charts and indicators to work in tandem to help you eliminate baddies like whipsaw scenarios to pin point genuine trade signals and thus highly profitable trades! That will mean that only trade signals that have high probability of winning trades will be used for trading.

Today’s forex market contains some of the most profitable trading opportunities in the world. With practical strategies and automated chart trading software, forex traders can uncover these opportunities and achieve long-term financial success along the way.

About the Author

Warren Seah

What if you just couldn’t trade forex effectively with a day time job?

I know how hard it can be to trade forex manually, but if you want to really be successfully trading your own unique manual system, you need to learn a single method that works amazingly well.

This method is simple to pick up and it automates most of manual forex systems. Yes, it can automate your personal forex system. You can read how to do it in my free report here: Visual Chart Trading

Don’t give up hope, it’s NOT impossible. Automated Chart Trading will expand your trading capabilities to greater trading success learn more by clicking the link.

By CountingPips.com

The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that large futures speculators trimmed their long positions of the euro against the US dollar to their lowest level since January while staying overall bearish on the British pound sterling. Non-commercial futures positions, those taken by hedge funds and large money speculators, added to their positions in favor of the Japanese yen, British pound sterling, Australian dollar, Canadian dollar, Mexican peso, New Zealand dollar and the Swiss franc directly against the US dollar while decreasing their bets for the euro, according to data on July 12th.

This week’s notable changes were euro positions declining to the lowest level since January while New Zealand dollar positions continued to rise and increased to their highest level since November 2010.

EuroFX: Currency speculators rather sharply decreased their net long positions for the euro against the U.S. dollar last week to a total of 12,416 net long contracts as of July 12th. Euro futures positions had increased for two straight weeks and totaled 43,194 contracts on July 5th. Euro positions are now at their lowest point since January 18th when net long contracts equaled 4,109.

The COT report is published every Friday by the Commodity Futures Trading Commission (CFTC) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar. The graphs overlay the forex spot closing price of each Tuesday when COT trader positions are reported for each corresponding spot currency pair.

GBP: British pound sterling positions rebounded higher after touching their lowest level in over a year the previous week but remained on the short side of speculator totals. British pound contracts rose to a net short total of 24,801 on July 12th following a decline to a net short position of 31,669 contracts reported on July 5th.

JPY: The Japanese yen net contracts improved for the second consecutive week as yen positions increased to a total of 20,288 net long contracts reported on July 12th. This follows a total of 14,327 net long contracts reported on July 5th.

CHF: Swiss franc long positions increased higher after retreating for five consecutive weeks. Franc positions rose to a total of 8,081 net long contracts following a net of 5,291 long contracts on July 5th.

CAD: The Canadian dollar positions rose higher for a second consecutive week to a total of 15,334 contracts as of July 12th. CAD net contracts had risen to a total of 6,821 net long contracts on July 5th after falling over to a net short total position on June 11th.

AUD: The Australian dollar long positions advanced for the second straight week to a total net amount of 67,623 long contracts as of July 12th. AUD positions had totaled 63,336 net long contracts on July 5th.

NZD: New Zealand dollar futures positions edged higher for a second consecutive week and leveled at the highest level since November 2010. NZD contracts increased to a total of 19,584 net long positions as of July 12th from a total of 18,986 long contracts on July 5th.

MXN: Mexican peso long contracts rose for the third straight week to a total of 90,447 net long speculative positions as of July 12th. MXN contracts had risen to 82,944 net long contracts, according to data as of July 5th.

COT Data Summary as of July 12, 2011
Large Speculators Net Positions vs. the US Dollar

EUR: +12416
GBP: -24801
JPY: +28288
CHF: +8081
CAD: +15334
AUD: +67623
NZD: +19584
MXN: +98447

By Nicholas Dockerty

Financial spread betting is fast becoming an essential extra tool for investors and traders to use to take advantage of shifting short-and long-term trends on the financial markets. One of the reasons it’s attractive to seasoned market participants is the sheer amount of markets you can take a position on.

For instance, if you were interested in the mining industry you could spread bet commodity prices, industry sectors, forex, indices, shares, binaries and options.

Since the start of the global recession we’ve seen commodity prices steadily rise. While the headlines tend to be taken each week by gold breaking another price record we’ve seen the prices of aluminium, coal, copper and silver go up too.

As a result of this trend we’ve seen the profits of the major mining and metal based companies’ rise and rise and begin to dominate the direction of FTSE 100. There are now thirteen such companies in the FTSE 100 and they are:

Rio Tinto; BHP Billiton; Fresnillo; Kazakhmys; Eurasian Natural Resources; Vedanta; Lonmin; African Barrick Gold; Antofagasta; Xstrata; Randgold Resources; Johnson Matthey; Anglo American.

While it’s a heavyweight industry – accounting for well over a third of the total market capitalisation of all the companies within the FTSE 100 – it’s also a fragile one too.

Substantial profits make for healthy share prices. However, with mining companies being so dependent on commodity prices and commodity prices being so dependent on a range of factors not always in the direct control of the mining companies, the day-to-day share prices of mining companies are prone to fluctuate.

Each commodity has its own unique combination of factors that will influence it.

If the Central Bank of China announces it’s trying to slow down its economy by raising interest rates it will affect the price of copper as demand is likely to fall for commodities used in manufacturing. If the US dollar rises after a boom in domestic GDP then the price of gold will be affected as demand for the precious metal will fall as it won’t be such a successful hedge against a weak dollar.

There is no doubt then that mining companies are increasingly exerting a powerful influence on the overall direction of the UK’s leading index. And more so than ever before it’s better to look at the broader FTSE 250 to get a more truer picture of how well UK plc is doing.

Indeed, consider what affect a major fall in commodity prices might have on the direction of the UK’s leading index?

About the Author

IG Index is the leading spread betting company in the UK with one-in-two UK financial spread bettors having an account with them – according to a survey by research organisation Investment Trends. You can find out more at www.igindex.co.uk.

By Cedric Welsch

It is tempting to jump right into the foreign exchange market as soon as you learn a couple things about it; but that is not a good idea. Even though it appears simple at the onset, trading currencies can be complex. It requires some skills to keep from losing your entire account.

The things you should learn about Forex include how to read charts, how to understand fundamentals, and how to place trades.

Learn How to Read Charts

The best thing you can do for yourself is find a broker that provides demo trading accounts. That way you can practice before you ever put your money into a live account. If you cannot successfully trade in the practice account, you are not ready to put your money at risk.

When you get your practice account, you will be able to download software that shows you all of the currency pairs on charts. You can see how they are performing in several time frames: minutes, five minutes, hourly, daily, weekly and monthly. You can also set up your own time frame in most Forex trading software.

These charts will come with tools to help you determine the potential direction of market: trend lines, support and resistance lines, Stochastics, MACD and many others of which you should be aware before you risk any money in real time.

Understand the Fundamentals

Fundamentals is a term used for what moves the market. Fundamentals are things like job reports, economic reports and inflation reports. The Forex markets respond to these reports, and if you do not have an idea of how the markets might act after a report comes out, you will probably lose money.

You do not have to be an economics professor to understand the fundamentals reports. Just read the news, particularly that found on trading sites, to get familiar with what they mean. The first rule of thumb is, if you do not understand the news, do not trade during that time.

How to Place Trades

By using the demo account, you will get accustomed to placing trades. It is important that you have this down because if you need to make a trade in a hurry and you are trying to figure out how to do it, you may lose money. Things you need to know include how to get in and out of the market, place stop losses and place profit stops. Learn Forex the easy way: before you trade; not while you are in it real time.

About the Author

What would a very effective forex trading tactic bring to your fx trading business instantly? Every type offorex trading strategy that is introduced must be scrutinized really well.