Forex Tips and Strategies - Forex News Training Support

Market News March 25, 2011 and Presenting OpenBook

2011-03-25T08:10:00.000-07:00

Latest Headlines from Financial Times:

Euro shrugs off debt fears

Euro shrugs off Portugal woe

Stocks rally for seventh session

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Trading The World and Financial News March 13, 2011

2011-03-13T19:25:00.000-07:00

Latest Headlines from Financial Times:

History shows rebuilding spurs economy

Equities stabilise as quake risks assessed

'The world should separate the people and the regime'

Yen holds up as oil and equity prices tumble

TRADING THE WORLD

To view the most recent indicators and relevant economic news please visit ourForex calendar page for live updated worldwide events.

Tuning in to what's happening in the world is a very smart trading strategy as again and again we witness that the Foreign Exchange market undergoes movements soon after major news and/or economic reports are released. The size of the country determines the amount, and the frequency of its news/reports releases, and therefore it may be more useful (at first at least!) to trade currencies of economies that have plenty of releases (such as, for example: USD, EUR, JPY, GBP, CHF).

Useful Information:

Always Remember that the healthier a nation is, the better its economy will perform (and consequently, the stronger its currency will be)!! Health is measured (amongst other factors) by high employment levels, retail sales, capacity utilization, and gross domestic product. It is also measured by low government deficits and by little fluctuation in inflation.

To determine a nation's health, look for reports on: (The below examples are taken from the US market)

Employment Growth
Gross Domestic Product (GDP)
Trade Balance
Interest Rate decisions
Retail Sales
Durable Goods
Inflation reports
Foreign Purchases report (TIC Data)

What do reports mean? Here are a few examples:

Employment:

Jobless Claims is released weekly and it measures how many people filed for unemployment insurance for their first time. The less people have applied, the better the economy is doing, because unemployed people tend to spend less money, which has a bad effect on the nation's economy.

US: Nonfarm Payrolls is released monthly and it measures the number of new jobs created (excluding the farming industry). The more new jobs, the stronger the nation's currency is, because the more people work, the more money they earn, the more money they are likely to spend.

Consumption:

Core PCE Price Index: measures the rate of inflation experienced by people; it reflects the price change in consumer goods and services (excluding Food and Energy). Large price changes have a negative effect on the economy, because they introduce uncertainty, and uncertainty inclines people to spend less.

Retail Sales: is released once a month and measures the value of retail sales. A rising trend means that the nation's economy is growing stronger, because it means that people are spending more.

GDP (Gross Domestic Product) Annualized: measures the value of all goods and services that are produced by the nation's economy. A rising trend means that the nation's economy is growing stronger. It encourages people to invest in the domestic stock and bond markets, and attracts foreign investors.

Trade Balance: measures the value of the difference between imported and exported goods and services. A positive trade balance means that more goods and services were exported than imported. A rising trend means that the nation's currency is growing stronger, because the higher the demand for exports, the higher the employment and production rates in the exporting country. This usually means that foreigners will convert their currencies to purchase the currency of the exporter.

CPI-Consumer Price Index In simple terms, CPI measures the increase of price in a fixed basket of goods and services (such as food, transport, housing etc'). A higher CPI means that the price of the basket has increased and it now costs more to buy the same basket of goods. A rising trend has a positive effect on the economy (and consequently on the currency), because it reflects that people are able to purchase the goods and services despite the price increases.

Real Estate:

US: New Home Sales: The new home sales figure serves as a great indicator for the general direction of the economy. An upwards trend in new home sales suggests that all is well in the construction industry and that the nation's consumers can afford to make large purchases. New home owners tend to purchase a large amount of goods, while construction companies need to hire workers and buy materials, thus creating a positive ripple effect in the nation's economy and an encouraging effect on its currency.

US: Pending Home Sales: measures activity in existing (not new) home sales. This includes single-family homes, condos and co-ops. The higher the demand for housing, the better the economy is doing, because people must feel comfortable enough in order to invest in homes. Also, such investments are usually accompanied by purchases-electronic equipment, furniture-and revenues for realtors, both of which are good for the economy.

US: Housing Starts measures how much construction began on new residential buildings. The higher the number, the better that nation's currency, because it indicates that the construction industry is healthy and that people are investing in it.

Manufacture:

US: ISM Mfg Index measures the activity of purchasing managers in the manufacturing sector. A rising trend means that the nation's currency is growing stronger. Purchasing managers are good indicators since they have access to a company's performance, which oftentimes goes hand in hand with overall economic performances.

Industrial Production measures the value of output produced by factories, mines, and utilities. A rising trend means that the nation's currency is growing stronger, because high values indicate that large amounts of product are being manufactured and sold, and hence that people earn and spend money.

Producers Price Index examines differences in the selling prices of goods and services within Euro-zone producers. Since producers tend to increase retail prices as a result of higher production costs, PPI may be counted as an indicator for inflation. A higher PPI may result in higher interest rates determined by the European Central Bank. A falling PPI points at declining prices, and thus hints at an upcoming economic recession.

Durable Goods Orders: measures the value of goods with a life expectancy of more than 3 years, purchased by consumers looking for domestic manufacturing. This indicator predicts how busy the manufacturers are likely to be, since they need to work to fill the orders. Therefore, a rising trend will have a positive impact on the nation's currency.

Rate Announcements:

UK: BOE Announcement - the Bank of England (BOE) Monetary Policy Committee (MPC) votes every month on where to set the nation's short-term interest rate.

EU:ECB Announcement - the European Central Bank (ECB) Governing Council votes every month on where to set the union's short-term interest rate.

US: FED Announcement - the Federal Open Market Committee (FOMC) votes eight times a year.

Shortly after each vote, the outcome is released (the BOE Announcement; the EU:ECB Announcement, and the FED Announcement). It is accompanies by a brief commentary on the economic conditions that effected the outcome. Interest rates depend mostly on inflation. The objective is to keep prices stable, so when inflation rises above an annualized rate of 2%, banks will usually raise interest rates in order to bring prices down. High interest rates attract foreign investors, who increase the demand for that nation's currency. This is to say that a rising trend in interest rates has a positive effect on the nation's economy.

FOMC Meeting Minutes:

The Federal Open Market Committee (FOMC) Meeting Minutes give people insight into the decisions that have been made with regard to interest rate and policy shifts.

Surveys:

EU: ZEW (Zentrum für Europäische Wirtschaftsforschung) Survey provides the opinions of financial experts with regard to the economic outlook for Europe. Every month the difference between investors that expect a growth in the economy and those that expect a decline is measured.

US: Chicago PMI measures the health of the Chicago business environment. Every month purchasing managers respond to a survey with regard to their organization's activity (whether it is higher than, the same as, or lower than it was in the previous month) in terms of output, purchases, employment, inventories, orders, and prices.

NET TIC-Treasury International Capital (TIC) Reviews the flow of money market funds (such as stocks, bonds etc') to and from the United States. The key figure, expressed in millions of dollars, represents the difference between American spending of foreign securities and foreign spending of American securities. This is a major indicator of the American economy and gives insight into foreign demand for American investments and dollars. For example, if the US purchased $5 billion in foreign securities and foreigners purchased $20 billion in long-term US securities, then the net reading would be $15 billion.

Consumer Confidence: measures consumer attitudes towards economic conditions, how they evaluate future economic prospects. Higher readings suggest consumer optimism; this is to say that consumers are optimistic about economic prospects. As a result consumers tend to purchase more, which in return stimulates the economy.

Consumer sentiment: Measures consumer attitudes concerning both the present situation and future expectations.
It's derived from a monthly 500-person survey conducted by the University of Michigan. Higher sentiment levels are a leading indicator of rising consumer spending, which accounts for two-thirds of the economy.

A few more things worth knowing:

In general it can be said that news releases that follow expected reports do not cause strong market movements.
Differences between the market expectations and the news release may cause market volatility which in turn might lead to a developing trend in a specific direction.
Such opportunities are usually short-lived; they may last for only a few minutes or even a few seconds.
Markets in which constant movements occur will usually not be as strongly affected by news releases. A quiet market may move more significantly because of a news release.

DON'T FORGET : No matter how many current events you follow and news releases you absorb, and no matter how familiar you are with the Foreign Exchange market and its trends--Trading always involves a risk!!!

Market News - February 19, 2010

2010-02-19T18:23:00.000-08:00

Latest Headlines from Financial Times:

Dollar leaps after Fed raises key rate

Dollar climbs after Fed lifts discount rate

Fed move marks return to normal

Fed move reinforces recovery hopes

Forex trading is serious business where big money changes hands within seconds. As with any serious business one needs to be aware of the current market situation at all times and have one's finger always on the pulse.

This is why we are proud to introduce the eToro forex calendar, a tool that you will shortly come to heavily rely on for your trading decisions. Our forex calendar is located in a screen easily accessible from the main platform screen, so you can check the forex calendar at any point during your trading activity.

The economic events calendar provides you with the latest indicators and economic events from around the world. Using eToro's Forex calendar will help you make better trading decisions. To learn more about economic indicators see our market news page for detailed description of different Forex related events.

The forex calendar is a tool that tells you when major events take place in the world of forex. By major events we mean announcements and figures release by various financial institutions and policy making bodies. These announcements have a major effect on the forex market since they give clear indications of various factors in global economies. The principles of fundamental analysis state that because currencies are invariably affected by their respective economies, by observing the changes in global economies one can predict the movements of currencies in the forex market.

Another reason that a forex calendar is a tool that is crucial to forex traders is that it determines the time when forex traders will choose to trade. Due to the fact that these financial announcements present hard figures that reflect the state of global economies, most traders and major financial institutions will open trades based on these figures immediately after the announcements. This means that the forex market is particularly volatile in the short time after each announcement, with currency rates rising and dropping radically. Radical changes in the forex market mean the opportunity to make bigger profits (although it is riskier to trade during these times). It is important that you consult the eToro forex calendar on a daily basis at least, because you may want to save your trading till after a particular announcement.

In the forex calendar you will have a few indicators to look out for. First and foremost you must of course note the date and time of the announcement. The next thing will be the currency that the particular announcement will affect. Most announcements in the forex calendar affect only one single currency. Announcements that have a more international scope are very rare. The most important thing about a forex calendar event is its impact - indicated in the eToro calendar by the color of the flame next to the event's name, ranging from yellow to red. Simply put, yellow means that you can afford to skip this one, while red means that you should put aside anything else you have going at that time and give your undivided attention to this announcement.

The forex calendar is something that you should plan your week around as a forex trader. Use the eToro forex calendar to become more aware of the global situation in the forex market, and of course to become a better and more successful trader.

Market News - February 12, 2010

2010-02-13T17:38:00.000-08:00

Latest Headlines from Financial Times:

Beijing's monetary move sparks risk retreat

Euro project tested by Greek crisis

Europe trailing in dust of US recovery

First-time buyers rush to beat stamp duty

TRADING THE WORLD

To view the most recent indicators and relevant economic news please visit our Forex calendar page for live updated worldwide events.

Useful Information:

To determine a nation's health, look for reports on: (The below examples are taken from the US market)

Employment Growth

Gross Domestic Product (GDP)

Trade Balance

Interest Rate decisions

Retail Sales

Durable Goods

Inflation reports

Foreign Purchases report (TIC Data)

What do reports mean? Here are a few examples:

Employment:

Consumption:

Retail Sales: is released once a month and measures the value of retail sales. A rising trend means that the nation's economy is growing stronger, because it means that people are spending more.

Real Estate:

Manufacture:

Rate Announcements:

UK: BOE Announcement - the Bank of England (BOE) Monetary Policy Committee (MPC) votes every month on where to set the nation's short-term interest rate.

EU:ECB Announcement - the European Central Bank (ECB) Governing Council votes every month on where to set the union's short-term interest rate.

US: FED Announcement - the Federal Open Market Committee (FOMC) votes eight times a year.

FOMC Meeting Minutes:

The Federal Open Market Committee (FOMC) Meeting Minutes give people insight into the decisions that have been made with regard to interest rate and policy shifts.

Surveys:

Consumer sentiment: Measures consumer attitudes concerning both the present situation and future expectations.

It's derived from a monthly 500-person survey conducted by the University of Michigan. Higher sentiment levels are a leading indicator of rising consumer spending, which accounts for two-thirds of the economy.

A few more things worth knowing:

In general it can be said that news releases that follow expected reports do not cause strong market movements.

Differences between the market expectations and the news release may cause market volatility which in turn might lead to a developing trend in a specific direction.

Such opportunities are usually short-lived; they may last for only a few minutes or even a few seconds.

Markets in which constant movements occur will usually not be as strongly affected by news releases. A quiet market may move more significantly because of a news release.

Using the Forex Calendar and Forex News

2009-02-23T22:23:00.000-08:00

Market news

Latest Headlines:

EURO SLIGHTLY HIGHER AGAINST THE DOLLAR
USD/JPY BREAKS THE 95 BID ZONE

Latest Headlines from Financial Times:

Zloty benefits as banks seek to soothe

Central Europe acts to bolster currencies

Safe appeal of yen wanes

Eurozone lurches deeper into recession

Forex Calendar

The economic events calendar provides you with the latest indicators and economic events from around the world. Using eToro’s Forex calendar will help you make better trading decisions. To learn more about economic indicators see our market news page for detailed description of different Forex related events.

eToro Forex Calendar

In the forex calendar you will have a few indicators to look out for. First and foremost you must of course note the date and time of the announcement. The next thing will be the currency that the particular announcement will affect. Most announcements in the forex calendar affect only one single currency. Announcements that have a more international scope are very rare. The most important thing about a forex calendar event is its impact – indicated in the eToro calendar by the color of the flame next to the event's name, ranging from yellow to red. Simply put, yellow means that you can afford to skip this one, while red means that you should put aside anything else you have going at that time and give your undivided attention to this announcement.

Forex Market News - Instructions For Withdrawing Funds

2009-02-11T16:44:00.000-08:00

Market news

Latest Headlines:

JPY higher against the Dollar
Dollar correcting some losses against the US Euro
Dollar fighting back

Latest Headlines from Financial Times:

Sterling extends losses as BofE cuts growth forecast

Crisis prompts Bank to boost money supply

Japanese retail investors go long of yen

UK jobless total rises to 1.97m

Withdrawing Funds

Want to withdraw funds from your account? No problem!

eToro makes sure that taking money out of your account is as simple as putting it in.

Please follow these steps:

Log into eToro using your Real Trading account username and password.
Click "Account Balance".
Click "Withdraw".
Enter the amount you would like to withdraw.
Select the payment method by which you would like to get funded (* eToro reserves the rights to refund traders via the original payment method they used when initially funding their trading account).
Click "Submit".
Print out the withdrawal form.
Click “Submit Request” (to review your withdrawal request, go to the “Cashier” section, then go to “History”).

First time withdrawal requests must be accompanied by:

A copy of Passport / Photo ID
A copy of both sides of the Credit Card that has been used to fund the trading account
A copy of a recent utility bill

If at any point you encounter problems please do not hesitate to contact us at: support@eToro.com. If you have specific funding and/or billing questions and concerns, contact us at: accounting@eToro.com. We are committed to assisting you in every way possible.

Traders are required to send signed withdrawal requests every time they wish to withdraw funds. While we realize that this is inconvenient to you and while we apologize for the hassle, this is an anti-money-laundering policy that we must abide by (*eToro reserves the rights to delay and/or stop withdrawal requests until final approval has been received).

Withdrawal requests take five business days to process (*some withdrawal methods are carried out by a third party and therefore delays may be beyond eToro’s control). If at any point before process completion you wish to cancel your request, simply go to the “Cashier” section. You will be notified via email once the processing of your withdrawal request has been completed.

Credit card withdrawals are limited to Visa credit cards, and are subject to the credit card company's approval.

For Your Information:

eToro reserved the right to combine any withdrawal requests that are made within 24 hours by the same payment method into one payment.
eToro reserved the right to allow bonus withdrawals only after all bonus policy requirements have been fulfilled (to view our bonus policy please visit the Terms and Conditions section).
Wire transfer withdrawals are subjected to a $25 fee. Bank draft withdrawals are not subjected to any fees.

Forex Market News Plus Deposit Instructions

2009-02-10T17:53:00.000-08:00

Market news

Latest Headlines:

Sterling Volatility picks up
Euro continues to plod higher vs the Sterling

Latest Headlines from Financial Times:

Russian debt worries hit euro

Pound goes further, pulling away from parity

UK trade deficit narrows

Rouble stabilises after rate rise

Funding your account

Depositing funds into your eToro trading account is fast and straightforward. Simply follow these easy steps and you’ll be ready to trade in no time. For your convenience, we have provided various methods with which you can fund your account, simply choose whichever method you prefer. (*To ensure absolute security and privacy of transactions and data, eToro uses Secure Socket Layer technology.)

In order to start trading you must first create an eToro trading account. In order to do that you must first download the forex software and install eToro. Once you’ve completed this step, you can proceed to open a Real Account. This will provide you with a username and password which you must use to log in. Once you’ve done this, go to “Account Balance,” then to “Deposit”.

You can now deposit funds into your eToro trading account. Below you’ll find instructions showing you how to deposit via Credit Card, Wire Transfer, Paypal, Neteller, Western Union, Moneygram and Webmoney.

Credit Card:

To deposit via Credit Card, please click the “Credit Card” option.

Complete the given form.

Within minutes your account should be credited with funds. (If your request is not approved you will be notified via email).

* The following limitations apply when funding your account via Credit Card:

Minimum Single Deposit Limit: $50
Maximum Single Deposit Limit: $1,000
Maximum Deposit Limit per Month: $5,000

Wire Transfer:

To deposit via Wire Transfer, you must click the “Wire Transfer” option after having clicked “Deposit”.

Enter the amount you wish to deposit.

Click "Continue".

Presently you will receive your Wire Transfer details.

Print this information out.

Go to any bank and forward your Wire Transfer to eToro's bank.

Indicate the transaction reference number in Payment Details field.

Within 5 days you shall receive a bank confirmation.

This confirmation will indicate that your trading account has been credited (you will receive an email notification).

* The following limitations apply when funding your account via Wire Transfer:

Minimum Single Deposit Limit: $500
Maximum Single Deposit Limit: $5,000
Maximum Deposit Limit per Month: $10,000

PayPal:

IMPORTANT: If you wish to credit your eToro account via PayPal you must have an existing PayPal account.

To deposit via PayPal, click the “PayPal” option after having clicked “Deposit”.

Enter the amount you wish to deposit.

You will be redirected to the PayPal website where you will be asked to enter your email and password in order to log in.

Review the transaction and once you've made sure that all the details are correct, click “Pay”.

Within minutes your account should be credited with funds. (If your request is not approved, you will be notified via email).

Means of funding your PayPal account

Country	Methods
Ireland	3V, AMEX
Italy	Visa Electron, PostePay, Aurora
France	Aurora, Confimoga, Cofidis
Netherlands	Giro bank transfer
United Kingdom	Maestro, Visa Electron, AMEX, Solo, Direct Debit
Spain	Aurora, Bank Transfer
China	ICBC, CMB, CCB, ChinaPay
All countries	Visa, MC, Bank Transfer

* The following limitations apply when funding your account via PayPal:

Minimum Single Deposit Limit: $50
Maximum Single Deposit Limit: $5,000
Maximum Deposit Limit per Month: $10,000

Western Union:

To deposit via Western Union you must visit an authorized Western Union office. To locate the nearest Western Union office please click on "Choose Western Union Agent". In some countries it is possible to transfer the funds online.

Transfers should be made to:

Receiver: Oana Raluca Timofte:
City: Limassol
Country: Cyprus EURO (Choose Option 1: Cyprus EURO)

You will now be issued a Money Transfer Control Number (MTCN)

Contact our Customer Support Department at: support@retailfx.com and provide them with the following information:

Your full name
Transaction amount in USD
Currency
City and country from which the money was sent
The MTCN (a 10 digit number)

Within fifteen minutes your account should be credited with funds.

** To know more about RetailFX Limited, please see information below.

* The following limitations apply when funding your account via Western Union:

Minimum Single Deposit Limit: $500
Maximum Single Deposit Limit: $5,000
Maximum Deposit Limit per Month: $10,000

MoneyGram:

To deposit via MoneyGram you must visit an authorized MoneyGram office. To locate the nearest MoneyGram offices please click on "Find MoneyGram Agent". In some countries it is possible totransfer the funds online.

Transfers should be made to:

Receiver: Oana Raluca Timofte:
City: Limassol
Country: Cyprus EURO

After deposit, you will be issued with a Transaction Reference Number

Contact our Customer Support Department at: support@retailfx.com and provide them with the following information:

Your full name
Transaction amount in USD
Currency
City and country from which the money was sent
The MTCN number (a 8 digit number)

Within fifteen minutes your account should be credited with funds.

** To know more about RetailFX Limited, please see information below.

* The following limitations apply when funding your account via Western Union:

Minimum Single Deposit Limit: $500
Maximum Single Deposit Limit: $5,000
Maximum Deposit Limit per Month: $10,000

Neteller:

To deposit via Neteller, you must click the “Neteller” option after having clicked “Deposit”.

Complete the given form, including your Secure ID and Neteller account number.

Within minutes your account should be credited with funds. (If your request is not approved you will be notified via email).

* The following limitations apply when funding your account via Neteller:

Minimum Single Deposit Limit: $50
Maximum Single Deposit Limit: $10,000

Moneybookers:

IMPORTANT: If you wish to credit your eToro account via Moneybookers you must have an existing Moneybookers account.

To deposit via Moneybookers, click the “Moneybookers” option after having clicked “Deposit”.

Enter the amount you wish to deposit and your Moneybookers account email (If you don’t have a Moneybookers account, click “click here” at the bottom part of the page).

You will be redirected to the Moneybookers website where you will be asked to enter your password in order to log in.

You will then have 2 options: depositing from your account balance at Moneybookers, or depositing by one of the following credit cards: JCB, Diners, or American Express.

Means of funding your Moneybookers account:

Country	Methods
Denmark	Dankort
Italy	Postepay, CartaSi
France	Carte Blueue
Germany	Giropay, Sofortuberweisung, Lastschrift (ELV)
Austria	EPS, Maestro
Australia	Poli
Netherland	iDEAL
Poland	Przelewy24
Singapore	Enets
UK	Solo, Maestro
Finland, Sweden	Solo
Spain	Maestro
Other	JCB, AMEX, Dinners, Delta/Visa debit card, VISA electron

Review the transaction and once you've made sure that all the details are correct, click “Pay”.

Within minutes your account should be credited with funds. (If your request is not approved, you will be notified via email).

* The following limitations apply when funding your account via Moneybookers:

Minimum Single Deposit Limit: $50
Maximum Single Deposit Limit: $5,000

WebMoney

To deposit via Webmoney, click the “WebMoney” option after having clicked “Deposit”.

Enter the amount you wish to deposit and your WebMoney ID (If you don’t have a WebMoney account, click on the “click here” at the bottom part of the page).

You will be redirected to a WebMoney page where you will be asked to approve the transaction details. Approve the details by clicking the “Pay” button.

Then you will be asked to choose the way to authenticate yourself, and click “Next”.

The next page will show the final details of the transaction. If you have more than one WebMoney purse defined in your WebMoney account, please select it, and click “Confirm and Payment”.

Within minutes your account should be credited with funds. (If your request is not approved, you will be notified via email).

Means of funding you WebMoney account:

Country	Methods
Dollar countries	WMZ prepaid card
Euro countries	WME prepaid card
Russian countries	WMR prepaid card
Ukraine	WMU prepaid card
All countries	Bank transfer

* The following limitations apply when funding your account via WebMoney:

Minimum Single Deposit Limit: $50

Maximum Single Deposit Limit: $50,000

Watch this short movie about Forex

2009-02-07T16:39:00.001-08:00

Forex Market News Feb. 6, 2009

2009-02-06T18:36:00.000-08:00

Market opens back up Monday

Latest Headlines from Financial Times:

Russia's woes spill over to euro

Deal near on $780bn stimulus package

Libor sheds new light on interest rate cuts

Bank hints more rate cuts to follow

Market Hours

The Forex market is open 24 hours, five days a week (not much market activity during weekends) so you can go ahead and trade day or night.

Below you will find the Market Hours in Eastern Standard Time (EST) for four of the world’s largest financial centers:

Tokyo Market Hours: 7:00 pm to 4:00 am EST
New York Market Hours: 8:00 am to 5:00 pm EST
London Market Hours: 3:00 am to 12:00 noon EST
Sydney Market Hours: 5:00 pm to 2:00 am EST

All trades will automatically close out in eToro real money mode when market closes at the end of the week. Closing rates will be posted during the weekend in the trading log section in eToro lobby. All real money accounts will be open during the weekend and all traders are welcome to view their trading account info.

eToro enables you to continue practicing your trading skills on virtual money even if markets are closed or inactive.

In Back In Time Mode you can continue practicing your trading skills, competing in championships, and winning prizes (every hour of every day of every month of every year!) as eToro will be running on historical (but very real) rates.

Market News - January 27, 2009

2009-01-27T14:03:00.000-08:00

Latest Headlines:

JPY continue its volitily
US Consumer confidence Figure as expected
GBP on a positive Trend
Euro continued to plod higher

Latest Headlines from Financial Times:

Economic worries weigh on euro

Hint of growth in demand for raw materials

Polish companies face hedging losses

Is the pound really finished?

Forex overview

What is Forex? Forex is an abbreviation of Foreign Exchange (also referred to as FX) and it is the largest financial market in the world.

The Forex market is the place where currencies are traded (currencies are money that is used as an exchange medium). In other words, it is the place where currencies are being sold and bought. In the Forex market all currencies are traded in real time.

Trading with currencies always means that there are two simultaneous transactions taking place. If a currency is being bought, it is also being sold. To better understand this notion, think of currencies as both the goods you are buying AND the method with which you're paying for the goods.

Since the Forex market is the place where currencies are traded in real time, people may trade one currency for another and make a profit off of this transaction. Profits are made when one is able to determine which currency's value will increase by the end of a pre-determined time period (such time periods may be short or long). The Forex market is open 24 hours a day, five days a week and it is based in four major cities: New York, London, Sydney, and Tokyo. The Forex market is open to individuals over the age of eighteen.

While Forex trading may sound daunting, it really isn’t. It can be easily comprehended and understood without prior experience in finance or economy. It is challenging and exciting, thought provoking and manageable, stimulating and filled with opportunities.

Some Forex Basics:

The first currency listed in a currency pair is called the "base currency".
The “base currency” is usually the U.S. Dollar. Traders will generally trade the U.S. Dollar against another currency, which is called the “counter currency”.
Currencies are quoted in pairs. For example: The pair U.S. Dollar and JPY will be quoted in the following way: USD/JPY equals to 2.5 (This means that 1 U.S. Dollar can buy 2.5 JPY).
When a quote increases, it means that the “base currency” has risen in value and the “counter currency” has weakened in value. For example: If the USD/JPY quote used to be equal to 2.5 but is now equal to 2.6, then this means that the dollar has strengthened (because 1 U.S. Dollar can now buy 2.6 JPY as opposed to the mere 2.5 JPY it could buy beforehand.)

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Market News January 22, 2009

2009-01-21T23:06:00.000-08:00

Latest Headlines:

Dollar continues to plod higher vs the Euro
Sterling - Goodbye or Good buy???
Yen Strong against US Dollar
Sterling Lowest rate since 1985 against US Dollar

Latest Headlines from Financial Times:

Economy fears spark plunge in sterling

Jim Rogers: 'UK has nothing to sell'

Germans see economic hope amid the gloom

UK unemployment soars to 1.92m

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Market News - January 20, 2009

2009-01-20T20:27:00.000-08:00

Latest Headlines:

Yen gains to record highs against Pound Sterling
Sterling; Goodbye or Good buy???
Yen Volatility picks up
Dollar stronger against Euro

Latest Headlines from Financial Times:

Sterling continues to tumble

UK debt fears fuel plunge in sterling

Short View: Inaugural optimism

UK inflation falls by most since 1992

Market News - January 19, 2009

2009-01-19T12:31:00.000-08:00

Latest Headlines:

09:30 ECB TRICHET'S SPEECH
Sterling; Goodbye or Good buy???
Yen Volatility picks up

Latest Headlines from Financial Times:

Spain loses triple A rating

Sterling's quantitative fears

Sterling retreats on fears of quantitative easing

View of the Day: Dollar honeymoon

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All New - Market News

2009-01-16T16:42:00.000-08:00

Market news

Latest Headlines:
US JOBLESS CLAIMS 524K
US CORE PPI -1.9%
ECB CUT RATE BY 50BP
ECB TRICHET'S SPEECH

Latest Headlines from Financial Times:
Euro drifts lower after ECB rate cut

ECB cuts rates to lowest in three years

China's foreign reserve expansion slows

Shift to dollar sees ruble plumb new low

TRADING THE WORLD

World events affect the Foreign Exchange Market. Or rather, world events affect supply and demand forces, which then affect the Foreign Exchange market. World events (political, social, governmental, etc) and other economic factors shift the supply and demand forces constantly, which in return shift the price of one currency in relation to another.

Tuning in to what’s happening in the world is a very smart trading strategy as again and again we witness that the Foreign Exchange market undergoes movements soon after major news and/or economic reports are released. The size of the country determines the amount, and the frequency of its news/reports releases, and therefore it may be more useful (at first at least!) to trade currencies of economies that have plenty of releases (such as, for example: USD, EUR, JPY, GBP, CHF).

Useful Information:

Always Remember that the healthier a nation is, the better its economy will perform (and consequently, the stronger its currency will be)!! Health is measured (amongst other factors) by high employment levels, retail sales, capacity utilization, and gross domestic product. It is also measured by low government deficits and by little fluctuation in inflation.

To determine a nation’s health, look for reports on: (The below examples are taken from the US market)

Employment Growth
Gross Domestic Product (GDP)
Trade Balance
Interest Rate decisions
Retail Sales
Durable Goods
Inflation reports
Foreign Purchases report (TIC Data)

What do reports mean? Here are a few examples:

Employment:
Jobless Claims is released weekly and it measures how many people filed for unemployment insurance for their first time. The less people have applied, the better the economy is doing, because unemployed people tend to spend less money, which has a bad effect on the nation’s economy.

US: Nonfarm Payrolls is released monthly and it measures the number of new jobs created (excluding the farming industry). The more new jobs, the stronger the nation’s currency is, because the more people work, the more money they earn, the more money they are likely to spend.

Consumption:
Core PCE Price Index: measures the rate of inflation experienced by people; it reflects the price change in consumer goods and services (excluding Food and Energy). Large price changes have a negative effect on the economy, because they introduce uncertainty, and uncertainty inclines people to spend less.

Retail Sales: is released once a month and measures the value of retail sales. A rising trend means that the nation’s economy is growing stronger, because it means that people are spending more.

GDP (Gross Domestic Product) Annualized: measures the value of all goods and services that are produced by the nation’s economy. A rising trend means that the nation’s economy is growing stronger. It encourages people to invest in the domestic stock and bond markets, and attracts foreign investors.

Trade Balance: measures the value of the difference between imported and exported goods and services. A positive trade balance means that more goods and services were exported than imported. A rising trend means that the nation's currency is growing stronger, because the higher the demand for exports, the higher the employment and production rates in the exporting country. This usually means that foreigners will convert their currencies to purchase the currency of the exporter.

CPI—Consumer Price Index In simple terms, CPI measures the increase of price in a fixed basket of goods and services (such as food, transport, housing etc’). A higher CPI means that the price of the basket has increased and it now costs more to buy the same basket of goods. A rising trend has a positive effect on the economy (and consequently on the currency), because it reflects that people are able to purchase the goods and services despite the price increases.

Real Estate:
US: New Home Sales: The new home sales figure serves as a great indicator for the general direction of the economy. An upwards trend in new home sales suggests that all is well in the construction industry and that the nation’s consumers can afford to make large purchases. New home owners tend to purchase a large amount of goods, while construction companies need to hire workers and buy materials, thus creating a positive ripple effect in the nation’s economy and an encouraging effect on its currency.

US: Pending Home Sales: measures activity in existing (not new) home sales. This includes single-family homes, condos and co-ops. The higher the demand for housing, the better the economy is doing, because people must feel comfortable enough in order to invest in homes. Also, such investments are usually accompanied by purchases—electronic equipment, furniture—and revenues for realtors, both of which are good for the economy.

US: Housing Starts measures how much construction began on new residential buildings. The higher the number, the better that nation’s currency, because it indicates that the construction industry is healthy and that people are investing in it.

Manufacture:
US: ISM Mfg Index measures the activity of purchasing managers in the manufacturing sector. A rising trend means that the nation's currency is growing stronger. Purchasing managers are good indicators since they have access to a company’s performance, which oftentimes goes hand in hand with overall economic performances.

Industrial Production measures the value of output produced by factories, mines, and utilities. A rising trend means that the nation's currency is growing stronger, because high values indicate that large amounts of product are being manufactured and sold, and hence that people earn and spend money.

Producers Price Index examines differences in the selling prices of goods and services within Euro-zone producers. Since producers tend to increase retail prices as a result of higher production costs, PPI may be counted as an indicator for inflation. A higher PPI may result in higher interest rates determined by the European Central Bank. A falling PPI points at declining prices, and thus hints at an upcoming economic recession.

Durable Goods Orders: measures the value of goods with a life expectancy of more than 3 years, purchased by consumers looking for domestic manufacturing. This indicator predicts how busy the manufacturers are likely to be, since they need to work to fill the orders. Therefore, a rising trend will have a positive impact on the nation's currency.

Rate Announcements:
UK: BOE Announcement — the Bank of England (BOE) Monetary Policy Committee (MPC) votes every month on where to set the nation's short-term interest rate.

EU:ECB Announcement — the European Central Bank (ECB) Governing Council votes every month on where to set the union’s short-term interest rate.

US: FED Announcement — the Federal Open Market Committee (FOMC) votes eight times a year.

Shortly after each vote, the outcome is released (the BOE Announcement; the EU:ECB Announcement, and the FED Announcement). It is accompanies by a brief commentary on the economic conditions that effected the outcome. Interest rates depend mostly on inflation. The objective is to keep prices stable, so when inflation rises above an annualized rate of 2%, banks will usually raise interest rates in order to bring prices down. High interest rates attract foreign investors, who increase the demand for that nation's currency. This is to say that a rising trend in interest rates has a positive effect on the nation's economy.

FOMC Meeting Minutes:
The Federal Open Market Committee (FOMC) Meeting Minutes give people insight into the decisions that have been made with regard to interest rate and policy shifts.

Surveys:
EU: ZEW (Zentrum für Europäische Wirtschaftsforschung) Survey provides the opinions of financial experts with regard to the economic outlook for Europe. Every month the difference between investors that expect a growth in the economy and those that expect a decline is measured.

US: Chicago PMI measures the health of the Chicago business environment. Every month purchasing managers respond to a survey with regard to their organization's activity (whether it is higher than, the same as, or lower than it was in the previous month) in terms of output, purchases, employment, inventories, orders, and prices.

NET TIC—Treasury International Capital (TIC) Reviews the flow of money market funds (such as stocks, bonds etc’) to and from the United States. The key figure, expressed in millions of dollars, represents the difference between American spending of foreign securities and foreign spending of American securities. This is a major indicator of the American economy and gives insight into foreign demand for American investments and dollars. For example, if the US purchased $5 billion in foreign securities and foreigners purchased $20 billion in long-term US securities, then the net reading would be $15 billion.

Consumer Confidence: measures consumer attitudes towards economic conditions, how they evaluate future economic prospects. Higher readings suggest consumer optimism; this is to say that consumers are optimistic about economic prospects. As a result consumers tend to purchase more, which in return stimulates the economy.

Consumer sentiment: Measures consumer attitudes concerning both the present situation and future expectations. It's derived from a monthly 500-person survey conducted by the University of Michigan. Higher sentiment levels are a leading indicator of rising consumer spending, which accounts for two-thirds of the economy.

A few more things worth knowing:

In general it can be said that news releases that follow expected reports do not cause strong market movements. Differences between the market expectations and the news release may cause market volatility which in turn might lead to a developing trend in a specific direction. Such opportunities are usually short-lived; they may last for only a few minutes or even a few seconds.

Markets in which constant movements occur will usually not be as strongly affected by news releases. A quiet market may move more significantly because of a news release.
DON’T FORGET : No matter how many current events you follow and news releases you absorb, and no matter how familiar you are with the Foreign Exchange market and its trends--Trading always involves a risk!!!

Very Strange.....U.S. Unemployment Stats Actually Boosts the Dollar

2009-01-10T13:40:00.000-08:00

Well yesterday was an interesting day for the Forex. You never really can tell what is going to happen. All we really know is that something will, good or bad. In this case it was both. They released the economic data reports ie; the US Non-Farm Payrolls and the numbers were not very good.

In December, the U.S. lost 524,000 more jobs. And as bad as that is, earlier speculation had the markets preparing for much larger losses. The unemployment rate also moved up to 7.2%. With that in mind, you would think the US dollar would lose ground against other currencies. But that was not the case.

In fact, following yesterday's unemployment announcement, the dollar made serious gains against the Euro and the Swiss franc. The dollar also gained some ground on the rest of the major currencies. Very strange indeed. You would think a bad economy wouldn't be good for a nation's currency. But apparently the market is reacting to one simple thing.........If the US goes down, so does the rest of the world.

In the coming months, President Obama might mean well, and we all hope he does, but it's very unlikely his stimulus package will have much effect on how the U.S. dollar actually behaves in the first half of 2009. That's because such efforts will probably prove ineffective at altering the fundamental forces that drive the economy and the markets in general. Obama's stimulus won't be much different from previous government bailout efforts, at least as far as spending goes. The fact is, his plans to put money into infrastructure are not concrete. No pun intended.

Chances are the money won't go toward the immediate and most necessary interests that would normally be defined by the free market. At the end of the day, consumers are not going to go on spending sprees when and if they get their stimulus checks. Chances are they will just hang onto it and not spend it or invest it at all. In fact spending is way down and thats bullish for the dollar.

So what can we expect from all of this? Well most likely it will mean the return of inflation. Especially with all the new money that is being thrown around at everything from banks, automakers and possibly even the porn industry, if you can believe that one. Not kidding by the way. Larry Flynt, owner of Hustler Magazine has actually approached congress for a bailout of the porn industry. Who will be next to ask for handouts?

President Obama's speech on Thursday where he says the US will "spend it's way to prosperity" may cause investors to wonder why the dollar hasn't tanked yet and why gold prices haven't risen through the roof. Many people see rising prices returning before any recovery of the global economy is possible. There is no way around that. Everyone can agree that the US economy is

in deep trouble, that much is obvious. But given the size of the US economy it needs to be given more credit in regards to its ability to turn things around.

The recent spending patterns of US consumers have caused many around the world to be worried for the future. Countries across the globe have based their economies on supplying US consumers with goods and materials. If the US consumers do not buy them, it has a ripple effect globally. This is causing governments around the world to pump even more money into their own ecomomies. But no matter how much money you throw at this, consumer attitudes have changed. Nobody wants to take on more debt and all of these "stimulus" packages will prove to be ineffective in changing those attitudes. People are not spending and you cannot make them do so. You can only buy so many cars, homes, furniture etc. It is a cycle that repeats itself from time to time and will do so in the future.

Cycles like this are necessary in order to get the US economy back on track. Unfortunately as the US slows down, so will the rest of the world. We will all just have to ride it out together and plan better futures for ourselves and our families. We also need to learn to take charge of our finances on a personal level. It is quite clear that handing our money over to investment bankers or equity brokers is not the best idea. Thats why I recommend everyone to get involved with Forex. Learn how to trade currencies and you will be protected from these cycles. If the US dollar is crashing, move your money into Euros or Swiss Francs. If something happens to those currencies, just move your money again. In fact, you can increase your wealth substantially just by doing that. How do you think the billionaires became billionaires? Using Forex. And the best part is you can do it instantly, online as soon as the need arises.

Have a great week!

Regards,

Brian Jerome

US Dollar No Longer A Haven

2008-12-17T21:09:00.000-08:00

Hello Everyone,

This article from Bloomberg says it all. Nothing to panic about, just do whats necessary to protect yourself and your family. Even though the dollar is sliding downwards YOU can still make money all the same. Just put your money into currencies that are benifitting from the dollars slide and watch your account grow.

Now is a great time to be investing in foreign currencies. Especially if you have a lot of US dollars.

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Dollar No Longer Haven After Fed Moves Rate Near Zero

By Kim-Mai Cutler and Bo Nielsen

Dec. 17 (Bloomberg) -- The world’s biggest currency-trading firms say the dollar’s appeal as a haven amid the financial crisis all but evaporated.

The U.S. currency slid to a 13-year low against the yen today and had its biggest one-day decline versus the euro after the Federal Reserve reduced its target interest rate yesterday to a range of zero to 0.25 percent, the lowest among the world’s biggest economies. CMC Markets said today the currency’s prospects appear “ominous.” State Street Global markets said the dollar’s outlook has been “undermined.”

“The dollar has been under heavy downward pressure,” said Robert Minikin, a senior currency strategist in London at Standard Chartered Bank Plc. “This move is very well-justified and has a long way to run.” Standard Chartered is preparing to cut its dollar forecasts, Minikin said.

Yesterday’s rate cut brings the Fed’s target to below the Bank of Japan’s for the first time since January 1993. U.S. policy makers repeated plans to buy agency debt and mortgage- backed securities and said they will study buying Treasuries, a policy known as quantitative easing.

The dollar fell to 87.14 yen, the lowest since July 1995, before trading at 87.45 yen as of 3:51 p.m. in New York, from 89.05 yesterday. It depreciated to $1.4437 per euro from $1.4002 and traded at $1.4366, the weakest since Sept. 30.

‘Ominous’ Outlook

The dollar is likely to decline “longer term,” analysts including New York-based Ashraf Laidi at CMC Markets wrote in a report. “Prospects ahead appear particularly ominous for the world’s reserve currency once global economic stability starts to build up.”

The Fed’s debt purchases will cause the dollar to weaken to $1.4860 per euro, analysts led by Robert Sinche, New York-based head of global currency strategy at Bank of America Corp., wrote in a report yesterday. The Fed reduced the scarcity of dollars and investors slowed the deleveraging process, which drove the currency to a 2 1/2-year high against the euro in October, Sinche said.

“Those temporary supports for the dollar appear to have eroded,” Sinche wrote. “Aggressive quantitative easing by the Fed should add to U.S. dollar supply globally and undermine the value of the dollar.”

State Street Global Markets, a unit of the world’s largest money manager for institutions, said the Fed’s move is “perilous” for the dollar as investors accumulated an “extreme” long position on the currency, or bets it will climb.

Record Low Yields

“This implies a significant potential for a dollar unwind if the real money community attempts to chase price,” Hong Kong-based strategist Dwyfor Evans wrote today in a report. The shift toward quantitative easing “has undermined the U.S. dollar significantly over recent weeks.”

The dollar’s decline against the euro compares with a similar move in the early 1990s, indicating the U.S. currency may weaken to a record low of $1.65 late next year, Citigroup Inc. strategists Tom Fitzpatrick in New York and Shyam Devani in London wrote in a research note.

“If it walks like a duck and talks like a duck … it’s a duck,” Fitzpatrick and Devani wrote. “The dollar walks and talks like a currency going back into its bear market.”

The dollar declined 11 percent against the euro and 8 percent against the yen this month as yields on two-, five-, 10- and 30-year Treasuries fell to record lows, encouraging investors to look outside the U.S. for higher returns.

“The dollar is going to struggle while it has low yields,” said Roddy MacPherson, the Edinburgh-based head of currency strategy at Scottish Widows Investment Partnership Ltd., which manages the equivalent of $152 billion. “We’re looking to add to our short dollar position if U.S. yields continue downward.”

UBS Stays Bullish

MacPherson said he moved toward a short dollar position, or a bet it will depreciate, against the euro in the past four days. The currency may end next year at $1.40 per euro, he said.

For UBS AG, the world’s second-largest foreign-exchange trader, demand for cash amid the freeze in bank lending will support the currency. The Libor-OIS spread, a gauge of cash scarcity favored by former Fed Chairman Alan Greenspan, was at 140 basis points today, or about 14 times its average in the five years before the credit crisis began.

“There is still a premium on liquidity, which will be supportive to the dollar even in the current environment,” said Geoff Kendrick, a senior strategist in London at UBS.

Goldman Sachs Group Inc. said investors can profit from the dollar’s decline by selling the currency for its Canadian counterpart.

The U.S. currency’s drop is becoming “broader-based,” Jens Nordvig, a New York-based strategist for the U.S. securities firm, wrote today. “Temporary dollar demand from deleveraging and funding flows has come to an end. The prospect of aggressive quantitative easing is starting to have a significant negative impact on the dollar.”

To contact the reporters on this story: Kim-Mai Cutler in London at kcutler@bloomberg.net; Bo Nielsen in Copenhagen at bnielsen4@bloomberg.net

Interesting blog that was sent to me

2008-12-17T00:05:00.000-08:00

You all know the economy is in big trouble and having money in stocks is very risky. All the more reason to look at Forex as a primary investment vehicle. You can download the eToro software and practice for free by clicking on the banner. No viruses, spyware or anything nefarious.

Deflation strikes hard! What to do …

by Martin D. Weiss, Ph.D. 12-15-08

The deflation we’ve been warning you about is here, and it’s striking hard.

Last week, the Fed released a report that sent chills down the spine of economists all over the world, revealing a sweeping destruction of wealth in America.

Just in the third quarter alone, U.S. households lost $647 billion in real estate; $922 billion in stocks; $523 billion in mutual funds; $653 billion in life insurance and pension fund reserves; plus $128 billion in private business interests.

Total destruction of household wealth in the third quarter: $2.8 trillion, the worst in recorded history. That’s four times more than the government’s entire $700 billion bailout package (TARP).

Total destruction of household wealth in the last year: $7.2 trillion or over TEN times more than the $700 billion TARP package.

Meanwhile, the Treasury reports that only $330 billion of the TARP funds have been committed so far. Worse, most of the funds that have reached the banks are sitting idle in their coffers. If as much as $30 billion has trickled down to households, I’d consider it a minor miracle.

See the contrast? The destruction of wealth is large and swift; the government rescues, relatively small and slow.

Yes, the White House may decide to shift some of the TARP money to cover General Motors and Chrysler’s cash needs for the next few weeks; they don’t want the auto giants going down on their watch.

But even if they can somehow save GM and Chrysler for now, they cannot save the countless smaller and medium-sized companies that are going bankrupt. They cannot save the thousands of municipalities and states that are running out of money. They certainly cannot make whole the millions of households that have gotten smacked with the $7.2 trillion in losses.

More evidence of deflation:

U.S. consumer prices falling at an annual rate of 12%!

U.S. producer prices falling at an annual rate of 26.4%!

Commodity prices slammed by as much as 70% from their peak!

My friend, these are not numbers that denote less inflation. They are hard evidence of deflation!

Your Next Steps

The critical question of our time: Will this deflation be less severe, equally severe or more severe than the 1929-1932 deflation?

If I were you, and you’ve got your portfolio or your 401k in stocks or stock mutual funds, I wouldn’t stick around for the answer.

Yet that’s what most Wall Street experts are telling you to do. Two full years after the first obvious signs of a housing industry collapse, most people who give advice about investing are still in denial.

Wall Street cheerleaders refuse to admit that an obviously massive deflation can lead to an equally massive collapse in the nation’s economy.

They’ve repeatedly sworn on a stack of Bibles that the deflation in housing would “soon end,” the crisis would be “contained” and everything would be “just fine.” They’ve tried to persuade nearly every investor to stay the course, keep their money in the stock market, or even buy more.

But as 2008 comes to a close, no one can possibly deny that the U.S. economy is in deep trouble. Anyone can see the evidence — the sharpest declines in the economy since the 1970s, the worst debt crisis in a lifetime, the largest financial failures and bailouts in history.

Everyone can also agree on the likely causes — the economic blunders of Washington, the financial greed of Wall Street, the big debts and bets by almost everyone. And no one could dispute the probable consequences — surging unemployment and potentially years of hardship for millions of Americans.

Yet despite this widespread agreement, nearly every authority still tries to persuade you to keep your money in the stock market.

Financial experts on NBC Nightly News tell millions of viewers that, as long as they’ve got plenty of years to live and recoup losses, they should continue investing most of their 401k or IRA in stocks.

Suze Orman on Oprah advises millions more to continue socking away their retirement money in stocks regardless of any market decline.

In Time Magazine, the New York Times, the Wall Street Journal and virtually every newspaper in the country, similar advice is liberally dispensed.

Their unwavering message: Don’t sell. Stick with it. Buy more.

It’s not a symptom of conspiracy and, in most cases, it’s not a sign of intellectual dishonesty. The majority of pundits sincerely believe in what they are advising you, and many follow the same strategy with their own money. But that does not make it good advice.

Consider Dad’s tale of the average investor’s woes in America’s First Great Depression, and you’ll understand what I mean:

“I was a young broker in 1930, and the advice my senior colleagues gave out used to make me cry inside. ‘Just hang on to your stocks for the long term and ride out the storm,’ they said.

“The results were devastating for their clients.

“If you bought the average stock in 1929 and held on until 1932, you wound up with about 10 cents on the dollar. And that’s if you bought the good stocks — the ones that survived. If you bought the bad stocks — in bankrupt companies — you’d be left with nothing, a big fat zero.

“Then, even if all of your companies survived, it wasn’t until 1954 — 25 years later — that you could finally recoup your original investment, provided you could stick it out that long.

“Unfortunately, most people couldn’t. They lost their jobs. They risked losing their house. So they were forced to cash in their stocks with huge losses. For them, the idea of ‘holding on for the long term’ was a joke, an insult, or both. They didn’t have that choice. Later, when the market eventually recovered, they never got the chance to recoup their losses.”

Even if you don’t believe that the late 2000s was comparable to the early 1930s, there is ample reason to exit the stock market. Just consider these facts and connect the dots:

Fact #1. Between 1965 and 1980, America suffered through a long dead zone punctuated by periodic debt troubles, credit crunches, financial failures, housing market declines, recessions and bear markets. For a decade and a half, most investors lost money in the stock market.

Fact #2. The financial crisis that has struck America in 2008 is evidently far worse than anything we experienced during that 1965-1980 dead zone. The debt problems are far bigger. The bankruptcies make earlier episodes look small by comparison. And the nationwide bust in housing is much deeper than anything experienced in history. So it’s reasonable to assume that the experience of investors could be at least as bad as, and possibly worse than, that experienced in the 1960s and 1970s.

Fact #3. A decline in the second largest economy of the modern world, Japan, began in 1990; has lasted for 18 long years; has taken the Nikkei Average down 82%; and, as of this writing, is still not over. Now consider this: The crisis that struck Japan in the early 1990s was ALSO less severe than the global crisis striking us right now.

What About This Time?

No one knows how far stocks will fall, how long they will stay down, or how soon they will recover.

No one knows how many banks, insurance companies, brokerage firms, or manufacturing corporations will go bankrupt.

No one can say if the government bailouts will make things better, just keep things from getting worse, or cause even more serious troubles.

All we do know with relative certainty is this: As long we have a financial crisis, recession or depression, the risk of loss is greater than the opportunity for profit — especially in the stock market!

If you’re a gambler, if you don’t mind betting against the odds, and if you have plenty of extra cash to play with, that may be a risk-reward you can overcome with trading acumen and good luck. But if you want to build a nest egg for your retirement or your kids’ education, if you want to sleep nights during topsy-turvy stock market gyrations, if your net worth has been diminished by real estate losses, if you’re worried about losing some or all of your income in a recession or depression, then staying invested in the stock market during a financial crisis is absolutely, positively nuts!

We are obviously living in risky times. So why would you want to double the whammy by putting your money in obviously risky investments? Yes, I know. Your broker, your financial planner — even some of your best friends — are cajoling you to stay in the market.

My view: If they fooled you once, shame on them. If they fool you again, shame on you!

Certainly, you are well aware of the catastrophic events that have already happened. You must realize that these events are likely to lead to further economic declines. And if the economy falls, it should be clear that nearly all of us, yourself included, will be affected in some way.

You also must know by now that the same old assurances from Washington and Wall Street — that “all is fine,” that they will soon “lick the problem,” that the latest, biggest bailout is “finally working” — have been proven wrong over and over again. You must be able to conclude, without my help or anyone else’s, that if ever there was a time when stock market investing is too risky, this is it.

If your goal is to save money for the future purchase of a home, retire in dignity, give you children and grandchildren educational opportunities or have enough money to cover your long-term care, and you still own stocks or stock market mutual funds, then get your money out of danger before it’s too late! Start selling!

Naturally, precisely when and how much you should sell will depend on actual market conditions. But as a rule of thumb …

If the stock market is rallying and up significantly, sell everything. Just call your broker and say: “Sell all my stocks at the market.”

If the stock market is falling and already down sharply, tell your broker to sell half as soon as possible. Then sell the balance on any rally.

If the market is in a panicked frenzy, overrun by an uncontrollable crowd of sellers and virtually devoid of all buyers, wait. Don’t sell immediately. As soon as the panic subsides, then sell half. And as soon as there’s a decent rally, then sell the balance.

If you own stocks you are unable or unwilling to sell, as an alternative, consider buying hedges, such as inverse ETFs, that can help offset your losses.

And …

If you work with a money manager, ask him about investment programs designed specifically for bear markets, along with their performance track record during both up and down markets. If it’s solid, you can use a bear market program as a vehicle for either protection or profit.

No matter what approach you use, this is no time for complacency. Act boldly but prudently. Then get your money to safety.

Good luck and God bless!

Martin

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

Using Forex Line Charts to Your Advantage

2008-12-06T12:50:00.000-08:00

*Always Trade With VIRTUAL Money Before

Attempting ANY REAL Money Trades!*

One of the questions I get quite often is......When do I jump in and start to trade?

In my last blog I talked about the best "time" to trade and why.

This question deals with the actual trade itself....when should I initiate a trade and why.

Personally I like to use line charts to tell me which currencies to trade and whether to buy or sell. When you look over the various time frames, you get a feel for the flow (trend) and it becomes apparent what you should do. 90% of the time, you follow the flow (trend).

I look at the 1 hr, 24hr, 7day and 30 day charts of all the currencies I am interested in. Generally I like to trade Euro/USD or USD/Canada or sometimes USD/JPY..........but no matter which currencies I choose, I ALWAYS look over the corresponding charts prior to executing the trade. I am looking to see whether there were any really big drops or increases in each timeframe and whether the real time trade I am about to execute will be caught in the middle of one of them. This is very important because it will determine whether you make money or lose money.........its that simple.

After looking over the charts I decide whether to buy or sell OR if I am unsure, I do BOTH. When you buy and sell the same currencies at the same time for the same amount of money, your trades cancel each other out. Now that may not sound like a good idea because you don't make any money, but in reality it gives you the ablitity to ride a wave to the top or bottom without losing any money and then cash out the profitable trade. THEN you can ride the wave up or down with the other trade, thus giving you the profit you are looking for. When that trade starts going in the opposite direction, you can now jump back on and ride the wave over and over until you are satisfied with that days trades.

Always remember to have your stop loss and take profit set to the amount you are willing to lose or profit, especially if you are going to be away from the computer for any length of time. Fluctuations happen fast and if you are not paying attention, you could lose your profits OR you could lose the amount of your trade......which is much worse for obvious reasons. Using your stop loss or take profit functions ensures you are protected while you are doing something else.

Have a great week trading!

Regards,

Brian Jerome

Give EToro a Test Drive! Its FREE and its what I use EVERYDAY.

Click Here to Get Started Today!

When To Trade For Maximum Profits

2008-11-24T19:11:00.000-08:00

*Always Trade With VIRTUAL Money Before
Attempting ANY REAL Money Trades!*

The Forex Market is open and "usable" 24 hours a day, five days a week.

Five days a week?

For those interested in making money, five days is all you really have. Or really need.

Yes it is open seven days a week, but Saturday and Sunday are not really for active trades. If you don't take some time off, you can always go over your previous weeks trades, tweak your strategies and hone your skills. Take some time to clean things up in order to get ready for the next weeks trades.

But make sure to take some time for yourself and your family. After all, THAT is the most important thing.

Five active trading days a week provides more than enough opportunity for traders to earn very nice profits while at the same time having a life they enjoy.

Forex trading is VERY addictive and you could easily spend huge amounts of time trading.

But staring at the screen for hours on end is not the best way to spend your time, so giving it a break on the weekends. Do other things. More important things.

What is the right time to trade?

Although it may seem that the right time to trade is not very important, it is actually crucial to your trading success.

The absolute best time to trade is when the Forex market is the most active and therefore has the biggest volume of trades. The more volume of trades, the more profits. Its that simple. A slow, dead market is literally a waste of time.

Forex trading hours

New York opens 8:00 am to 5:00 pm EST

Tokyo opens 7:00 pm to 4:00 am EST

Sydney opens 5:00 pm to 2:00 am EST

London opens 3:00 am to 12:00 noon EST

Trading EUR/USD, GBP/USD currency pairs between 8:00 am and 12:00 noon EST when the two markets for those currencies are active would give better results than trading when those markets were closed. Pretty simple right? Use the clock below to keep track of when each market is open and more importantly when they are overlapping. It is a direct download. You don't have to enter any information to get it.

Click Here To Download Free Market Clock

It is a very small and simple piece of software and it will give you a visual representation of when the markets are open and overlapping, which is what is important when trying to maximize your profits.

I hope this has helped answer your questions about when you should be trading.

Regards,

Brian Jerome

"Try the EToro Trading Platform. Its FREE!"

Welcome to Forex Tips and Strategies

2008-11-24T00:29:00.001-08:00

If you are new to Forex, then this is the place you want to be and come back to on a regular basis.

Here you will find Forex strategies, Forex software, tips, current events regarding currencies etc.

Feel free to leave any questions or comments you might have about Forex.

Thank you for reading my blog and I look forward to serving you in the future.

Regards,

Brian Jerome

Forex Tips and Strategies - Forex News Training Support

Market News March 25, 2011 and Presenting OpenBook

Latest Headlines from Financial Times:

eToro OpenBook: Discover a new world ofinvesting opportunities

OpenBook is a one of a kind social tradingnetwork that transforms the way peopletrade and invest online.

By enabling you to follow and interact withall other traders of the eToro community,OpenBook accelerates knowledge sharingand shortens the learning curve for you tobring your trading experience to the nextlevel.

See. Follow. Copy.

Because it gives you the power to see howothers trade: live and in real time, theOpenBook helps you put the power of theeToro community to work in your trading:

See the trading activity of other traders inreal time and spot new market opportunitiesand trends.

Follow the strategies of your fellow tradersand monitor their success rates.

Copy the trades you like

OpenBook delivers a whole new worldof trading possibilities.

Trading The World and Financial News March 13, 2011

Latest Headlines from Financial Times:

TRADING THE WORLD

What do reports mean? Here are a few examples:

Market News - February 19, 2010

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Market News - February 12, 2010

Latest Headlines from Financial Times:

TRADING THE WORLD

What do reports mean? Here are a few examples:

Using the Forex Calendar and Forex News

Market news

Latest Headlines:

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Forex Calendar

eToro Forex Calendar

Forex Market News - Instructions For Withdrawing Funds

Market news

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Withdrawing Funds

Want to withdraw funds from your account? No problem!

Forex Market News Plus Deposit Instructions

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Funding your account

Wire Transfer:

PayPal:

Western Union:

MoneyGram:

Neteller:

Moneybookers:

WebMoney

Watch this short movie about Forex

Forex Market News Feb. 6, 2009

Market opens back up Monday

Latest Headlines from Financial Times:

Market News - January 27, 2009

Latest Headlines:

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Forex overview

Market News January 22, 2009

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Market News - January 20, 2009

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Latest Headlines from Financial Times:

Market News - January 19, 2009

Latest Headlines:

Latest Headlines from Financial Times:

eToro's advantages

All New - Market News

Very Strange.....U.S. Unemployment Stats Actually Boosts the Dollar

US Dollar No Longer A Haven

Interesting blog that was sent to me

Using Forex Line Charts to Your Advantage

When To Trade For Maximum Profits

Welcome to Forex Tips and Strategies

eToro OpenBook: Discover a new world of
investing opportunities

OpenBook is a one of a kind social trading
network that transforms the way people
trade and invest online.

By enabling you to follow and interact with
all other traders of the eToro community,
OpenBook accelerates knowledge sharing
and shortens the learning curve for you to
bring your trading experience to the next
level.

Because it gives you the power to see how
others trade: live and in real time, the
OpenBook helps you put the power of the
eToro community to work in your trading:

See the trading activity of other traders in
real time and spot new market opportunities
and trends.

Follow the strategies of your fellow traders
and monitor their success rates.

OpenBook delivers a whole new world
of trading possibilities.