Can the Markets Rise, When Economies Dive?

During the course of an economic cycle, interest rate increases are used to restrain rapid inflation or growth during a bullish market, while rate cuts are used during market mayhem (a bearish market), in hope that the declining rates will encourage consumer consumption, returning the economy to a normal and healthy state.Throughout this cycle 2003-2009, the Fed has used numerous methods apart from its standard rate cuts to propel the economy. The recent one has been quantitative easing, where central banks have participated in the bond market, while injecting money into the financial system.

Over a year and a half ago, analysts thought the claim that a market recession reaching the scales of the 1930’s depression is ‘farfetched’. To date those investor’s thoughts are quite different as exploitation of the housing sector has caused a snow-ball affect throughout the world economy, forcing government officials to make coordinate efforts to redeem the world’s economy.Over the last couple of months government interference in the markets has intensified as numerous banks and large caps have been nationalized, to help prevent further loses across the globe. In addition, economic data continues to pour out showing a deteriorating economy, forcing officials to come out with new creative methods.

Despite the negative data and gloomy outlook the markets have recently increased, making investors question as to whether the recent rally is a change in trend or just a simply a bullish rally in a bearish market.While it is too early to determine any change of trend, one must take into consideration the following:

) Interest rates reductions or increases can take up to 9 months to leak through the system, affecting the economy.

2) The markets work on expectations; therefore if government officials are aiming for a market turnaround towards the end of this year, the indices will price it in beforehand.

3) Once the indices retrace a fair part of their losses, demand will increase on positive sentiment, driving the markets even higher.

4) Low interest rates will eventually spark demand across the board as consumers will take advantage of the low rates, especially as rates like these might not last.

Last week’s trading session presented mixed signals as the U.S housing sector suddenly showed signs of slight improvement. According to the National Association of Homebuilders, single family homes increased for the first time in seven months, adding an increase of 4.7% to new-home sales. In addition, over the last two weeks of trading the U.S government has addressed the market, stating that it intends to buy back government bonds and the far end of the curve, in an effort to reduce the costs of home purchasing. By taking a look at the homebuilder’s index one can see the recent increase, caused by the improving data and overall market momentum.

Will the Market Rally Continue?

While there is quite a lot of market moving data coming out this week, including the G20 meeting and unemployment results from the U.S on Friday, one must not steer away from the housing sector (the cause of the current economic situation).Following this week’s U.S manufacturing data, housing figures are expected to be released and could show a further improvement in the sector. In addition unemployment data is expected to show another 656,000 job losses in the month of March. While one might think that the figures are devastating, the markets could react in a completely different way.

During the U.S ‘s last recession (2003-2003) the U.S unemployment rate continued to rise and Non-farm Payrolls decreased, while the markets were forming a bottom. The unemployment rate peaked during the middle of 2003, when the U.S indices were far off their lows.With the G20 meeting coming up, an interest rate decision from Europe and employment data coming out, the markets could see some profit taking around current levels, accompanied by an increase in market volatility. Just keep in mind that the markets could surprise, especially when investors are already expecting further bad news. A ‘higher-low’ will give confirmation like in 2003.

Found Support on it 50 Day Moving Average

After Monday's massive drop, due to fears that the Auto-Industry is heading for bankruptcy, the major U.S stock indices bounced back during yesterday's session, closing with gains of approximately 1.5%. Many analysts classed yesterday’s rally as a “buy-up rally”, something that normally happens towards the last few days of the quarter, in order to show profits on balance sheets.The closely watched financial sector soared compared to the other sectors, increasing by over 5.51%. The sector that weighed on the intraday bullish momentum was the Energy sector, closing the session down by -0.85%.

Economic data didn’t really have much of an impact during yesterday’s stock session, even though the released data continued to show a deteriorating economy. Consumer confidence for the month of March dropped further than expected, showing a result of 26.0, while the S&P/Case Shiller 20-city Composite Home Price Index showed a worse than expected result of 19%, exceeding analysts’ estimate of 18.6%.Tension should increase across the board today as President Obama is scheduled to attend the G20 summit in England. While many topics will be discussed regarding the economy, including further stimulus actions to restore the world’s economy back onto a healthy track, China will also have it say, especially as officials from China are now suggesting that the U.S Dollar should no longer be classed as the world’s reserve currency.

To date the U.S deficit is reaching enormous levels, on GDP terms. Many economies are now questioning whether the U.S will be able to repay its debt. China is especially concerned, as they are currently holding $740 billion worth of government bonds.

Dollar at 50% Fibonacci Trading level

On the Forex market the Dollar index failed to break resistance of 86 points. The recent surge in the Dollar occurred after the index touched major trend line support. From a fundamental point of view, further economic problems have recently surfaced, justifying the recent rally, sending investors rushing back into the Dollar Safe Haven. When observing the following chart one can see that the Dollar is now fighting with its 50% Fibonacci level, a price that could act as minor resistance.

On individual pairs the major mover of the day was the USD/JPY jumping higher, breaking minor trend line resistance. Japan’s Tankan index plummeted in the first quarter, showing investors that the gloomy economy is far from a turnaround. The index came out at -58, exceeding analysts’ expectations of -55. In addition Australia’s Retail Sales sparked movement on the AUD crosses, as the retail sector showed further contraction coming out at -2.00%.

Gold is Converging

After breaking its major trend line, Gold has been presenting lackluster sessions, hanging around the $920 level, when observing the chart carefully one can see that the precious metal is coming close to a break out. With the G20 meeting coming up and important employment data being released towards the end of the week, traders should observe the breakout.

Market Data to Watch Out For

Even though Europe is scheduled to release its unemployment rate later today, major movement will circle around the U.S’s ADP employment survey. The report is expected to show another 660k job losses in the month of March. In addition the ISM Manufacturing Prices are expected to show an increase, while housing data could show signs of further stability. Construction Spending is expected to shrink by only 1.7%, while pending home sales could show an increase of 0.3%

Fundamental & Technical Analysis in Forex Trading

Forex trading over the years has become popular among the investing public. After the recent stock market crash, people are turning towards forex trading in droves. Forex Brokers are also marketing aggressively to increase the number of their clients.

These gurus will tell you that forex trading is very easy. Anyone can do it from the comfort of their homes. You only need a computer and an internet connection. No doubt, the internet revolution has made it possible for anyone to trade forex from anywhere in the world.But these gurus are never going to tell you that 95% of the new traders do not survive more than six months. Only 5% will ever become winning traders. 95% will take the plunge on the advice of these gurus, lose their hard earned money and give up. Forex markets are unforgiving. It slaughters inexperienced traders.

Why so many new traders get slaughtered by the forex market? Simply; they were not prepared. By simply reading one or two eBooks on forex trading, you will never succeed at forex trading until and unless you start living and start breathing forex.If you really want to succeed at forex trading than learn it properly. Understand how the forex markets functions. What is the role of underlying economic factors like interest rate, GDP growth rate, unemployment figures, fiscal deficit etc in moving the currency markets? As long as you wont get the feel of the markets, you wont succeed.

The best method to understand forex markets is learning what fundamental and technical analysis is. Fundamental analysis tells you how economic factors affect currency markets. What is the role of interest rates, GDP growth, unemployment figures, housing slump and host of other factors in moving the forex markets? Fundamental analysis can predict the medium to long term trend in the forex markets.Technical analysis studies the past behavior of prices to predict the future behavior of prices. You need to master technical analysis if you are thinking of becoming a day trader. Technical analysis is ideally suited to forex markets.

Technical analysis depends on the proper use of a number of indicators that you need to understand and master. These indicators can provide you will information regarding the market whether it is trending or ranging. This will help you devise your strategy. It can also tell you about the entry/exit for each trade.If you have been previously trading stocks than you can switch to forex trading much faster. But always remember as long as you dont make forex trading passion of your life, you wont succeed at it. Learn everything about forex, make it a passion and you will develop into a winning trader.

Advantages of Opening An Offshore Bank Account

While offshore bank accounts are not for everyone, they can offer huge benefits to the right person. For many small businessmen and entrepreneurs, a good offshore bank account has provided the "key" or competitive edge to unlock vast potential wealth. But first I want to dispel two big myths about offshore bank accounts. #Myth 1 - Only the super-rich can afford offshore bank accounts. You don't need to be rich to open an offshore banking account. While it is true that a "wealth-management" service with a personal banker might require an initial investment of US$1MM, accounts with no minimum deposits certainly exist, and smaller minimums of US$500-5000 are quite common.

Myth 2 - Offshore bank accounts are illegal, or used only by criminals. The confidentiality that offshore banking accounts offer has led to abuse by criminal gangs, but in fact these days many offshore banks have stricter due diligence than their onshore competitors. Criminal activity, wire fraud and money laundering will just as likely take place in New York or London (government sponsored or otherwise). Furthermore, ownership of an offshore bank account is never illegal, although not declaring that you have it can be illegal (laws will vary from country to country). What can an offshore bank account do for you? Here are some of the advantages that have helped investors make their choice.

1) Privacy - Shield your assets from prying eyes. The phrase "If you're not doing anything wrong, you've got nothing to hide" is often used, but the brutal truth is that many citizens from countries all over the world are exposed to corrupt authorities and criminal elements. Even in more stable countries frivolous litigation can decimate a man's wealth, while he cannot trust the government to rule in his favour. Why take the risk? By shielding your financial identity with an offshore bank account you can escape the attention of greedy lawyers and experience the kind of total economic freedom that a domestic account can't offer.

2) Asset protection - Wealth held offshore is harder to reach for anyone who might want to get their hands it. Often the physical distance and legal complexity of attempting to seize an offshore account will ensure that a case against the account holder never takes off.

3) Earn tax-free interest - Many offshore accounts will not have interest taxed at source like your home bank account. In addition the offshore account can open up for you some of the best investment opportunities not available in the domestic market .

4) Multiple currencies at your fingertips - swiftly change between foreign currencies at a fraction of the cost of doing it at home. Some offshore accounts will also offer FOREX and Trading accounts, allowing you to instantly buy and sell at the click of a button from a tax-free offshore base.

5) Perhaps the best advantage of an offshore account is that it will allow you to make international transactions with little or no hassle and red-tape. If you try to transfer even relatively small amounts of money from your domestic account you will likely face a barrage of security questions and other invasive queries, but a good offshore account will allow you to make such transactions online effortlessly, and into the many millions of dollars.

Banking Solutions for Customer Convenience

When Banking started of for Independent India, you had Nationalized and regional banks handling the country’s finances. As the years progressed you had more branches opening up. The 80s and 90s saw a whole lot of Global Banks like Standard Chartered, Barclays, Grindlays opening their banks up in India. Still banking didn’t seem to be convenient. The modus of transaction was pretty gloomy and boring with people having to wait their turns to visit the teller’s counter to complete their transactions. With technology coupled with the internet coming into play banking solutions have become more custom made for the average consumer. Online Banking ensures that a person is tuned completely with his finances at any given point from any part of the world. Ditto for mobile banking. The last couple of decades also saw numerous Indians migrate abroad on a bid to pursue their lives and carrier. Getting monetary transactions wasn’t easy then. Postal services and courier faux passes weren’t that convincing. Now with banks offering many solutions NRI Banking has also been made easier.

When Banking started of for Independent India, you had Nationalized and regional banks handling the country’s finances. As the years progressed you had more branches opening up. The 80s and 90s saw a whole lot of Global Banks like Standard Chartered, Barclays, Grindlays opening their banks up in India. Still banking didn’t seem to be convenient. The modus of transaction was pretty gloomy and boring with people having to wait their turns to visit the teller’s counter to complete their transactions. With technology coupled with the internet coming into play banking solutions have become more custom made for the average consumer. Online Banking ensures that a person is tuned completely with his finances at any given point from any part of the world. Ditto for mobile banking. The last couple of decades also saw numerous Indians migrate abroad on a bid to pursue their lives and carrier. Getting monetary transactions wasn’t easy then. Postal services and courier faux passes weren’t that convincing. Now with banks offering many solutions NRI Banking has also been made easier.

Banks also provide special facilities to their HNI (High net individual) worth customers. These people generally have a huge amount invested with the financial house and indulge in hefty transactions. They are provided with world class banking facilities termed as Priority Banking and Premier Banking, both words justifying their meaning. Savings account for the average investor has also been made easier where you no longer need a referral to open an account or minimum balance to save in your account (* condition applies in both cases). Currently the major Global players in the Indian Finance Sector include Standard and Chartered, HSBC and Barclays. Banks of Indian origin that have gradually made waves include ICICI, HDFC, SBI and Axis Bank. All in all modern day banking has every element that ensures Wealth Management Services for the longer run.

ATM Healthcare

Doctors are starting to redesign the way they work to link better with patients and to use the newly available multi-media technologies. This is an important process that will undoubtedly accelerate over the next 20 years. There is a need to substantially redesign many of the traditional processes used to practice medicine - and move to new ways of delivering health services, using what I call ATM Healthcare.

What, then, is ATM Healthcare?

When we think of the term ATM, most of us think of banks. The acronym ATM has entered our language so completely that many people don't even know what the letters stand for - they just know that undertaking an ATM transaction allows money to be drawn direct from their bank account, not from a credit account, and that they can do this at a special ATM machine usually in the street, or at a store checkout. ATM stands for Automated Teller Machine and is simply a direct electronic entry to your bank and your accounts. And it is very simple, convenient and consumer friendly. ATM has made banks and bank accounts much more accessible to customers, wherever and whenever they want. At the same time they have made the work of banks more efficient while dramatically cutting the cost of bank transactions to a few cents from an average of $10-15 per face to face transaction with a teller. This has happened because ATM machines now manage most of the simple bank transactions that used to take up a lot of the time of tellers. This frees up bank staff to spend more time on complicated transactions where human expertise is required. Who can now imagine a bank without widespread ATM facilities? And all this has happened in just a few years.

Computer scientists think of ATM in a very different way. For them ATM is a technical term describing how data can be passed across an electronic network. Here ATM stands for a protocol called Asynchronous Transfer Mode. This protocol was designed as a way of merging old telephone networks with more modern packet-switched computer networks in order to deliver data, voice, and video over the same channel. In other words it allows all sorts of differing data, from varying data sources, to be delivered at the same time. So what have these two types of ATM have to do with healthcare?

Think of the obvious parallels.

The doctor-patient consultation is in many ways similar to the traditional bank interaction with a teller. It is confidential, about 80% of consultations are relatively simple, and if complications arise, a second person can be called in to give specialist advice. There are also parallels with the computer scientist ATM, because this consultation nowadays involves typically several different types of data - voice, lab results, paper and electronic documents (health records), and increasingly video and digital images. The consultation itself can be described in both computer language and clinical terms as consisting of three information processes ? data capture (history and examination), data analysis (diagnosis), and business planning (treatment). What we in healthcare need to do is start thinking like bankers, and focus on providing our services in a more consumer friendly way. As we do this, doctors need to follow two core principles. The first is the complementarity principle - computers do well, what humans do badly, and vice versa. Computers never forget, and are great at scheduling, remembering and reminding, but humans are much better at data analysis and decision making. So computers should be able to do many simple health transactions, remember and order prescriptions and lab tests, schedule appointments, and provide preventative health information. The second principle is the importance of redesigning business processes before introducing new technologies. There are a lot of similarities between banking and the practice of medicine. And doctors can learn from bankers in this area. There is no reason why we should not introduce ATM Healthcare, in just the same way as bankers have introduced ATM Banking.

What would ATM Healthcare look like?

Firstly, lets assume that, like banking, ATM Healthcare is going to be used for relatively straightforward consultations in many specialities, and will not replace the complicated face to face consultation or intervention that makes up about 20% of overall medical consultations, and will always remain the health "gold standard" consultation. We already have most of the tools of ATM Healthcare at our disposal. Electronic Medical Records, lab results and x-ray images are the health equivalent of bank statements. Telemedicine - video consulting either in real time (synchronous), or delayed time (asynchronous) - is now a proven technology, is already available in some supermarket clinics, and is the equivalent of the teller machine. Email and wireless telephony provide more mobile access to providers, and the whole internet is an amazing educational and clinical communication platform that is already delivering all sorts of ATM Healthcare. We have lots of systems to combine different types of data and present them simultaneously to doctors and patients, just as per the computer scientists version of ATM.

Patients need to encourage doctors to think of ways of redesigning their practice processes to make better use of available multimedia technologies so that they can continue to provide better and more available care. I am sure this will happen, especially as more of the younger generations start receiving care. They will demand that doctors use these technologies, and increasingly change their ways, and hopefully use the example of banking as we move increasingly to ATM Healthcare.

4 Major Myths About Banking

If you listen to the news about banking these days, be it on TV, in the paper or from the radio drive-time talk shows, it’s mostly doom with a heavy sprinkling of gloom just for good measure:

* “Banks aren’t lending money anymore!”

* “You’re just a number at those banks anyway!”

* “Online banking isn’t safe; they’ll steal your identity or sell your personal information!”

So many myths about modern banking abound that one bank president has decided to clear the air by debunking the four major myths of banking during lean times. Or, for that matter, anytime at all. According to Robert Sumner, CEO of First National Bank of Pasco (FNB Pasco) near Tampa, Florida, “Banks do have money to lend; in fact, we’re lending every day.”

Sumner adds, “All banks aren’t created equal. Maybe some of the big banks are in trouble, but try a small community bank and you’ll realize that we operate under a much less stringent set of rules. In fact, not only do we make our own rules but we get to call the shots as well.” If you’ve been fearful of approaching one of your local community banks for a loan recently, or have doubts about their safety or security, let Mr. Sumner dispel the four following myths for your convenience:

Myth # 1 – Banks Aren’t Lending Money Anymore: Some of the bigger chain banks, gridlocked with federal red tape or their own corporate lending policies, have cut back on personal and even professional lending as they “restructure.” However, many small community banks are actively taking loan applications and eager to help those customers seeking reasonable personal or professional loans for a variety of reasons.

• Myth # 2 – Bankers Don’t Get Personal with Customers: Community banks are famous for personal customer service. Why? Because they are part of the community. While bigger banks deal in quantity over quality, smaller banks have more time, energy and staff to keep their customers happy.

• Myth # 3 – Banks Have Unlimited Money to Spend: No bank, big or small, has unlimited money to spend. In fact, the bigger the bank, the more systems of checks and balances they have to go through in order to lend you money. A customer requesting a loan from a large chain bank in Florida might have to get approval from a regional or even headquarters office two or three states away. A small community bank can answer you on the spot.

• Myth # 3 – Online Banking Isn’t Safe: Horror stories have happened to online banking customers, big or small. However, online banking is a big customer draw for banks of any size, and they have taken special pains to make it as safe as possible, with a variety of safeguards. With a community bank, of course, the biggest safeguard is walking through the front door.

If you’ve been holding off on either personal or professional banking because of unreasonable fears or mass media hysteria, don’t delay; visit your local community bank today.

Stock trader

Individuals or firms trading equity (stock) on the stock markets as their principal capacity are called stock traders. Stock traders usually try to profit from short-term price volatility with trades lasting anywhere from several seconds to several weeks.The stock trader is usually a professional. A person can call themself a full or part-time stock trader/investor while maintaining other professions. When a stock trader/investor has clients, and acts as a money manager or adviser with the intention of adding value to their clients finances, they are also called a financial advisor or manager.

In this case, the financial manager could be an independent professional or a large bank corporation employee. This may include managers dealing with investment funds, hedge funds, mutual funds, and pension funds, or other professionals in equity investment, fund management, and wealth management. Several different types of stock trading exist including day trading, swing trading, market making, scalping (trading), momentum trading, trading the news, and arbitrage

Stock Investors.

On the other hand, stock investors purchase stocks with the intention of holding for an extended period of time, usually several months to years. They rely primarily on fundamental analysis for their investment decisions and fully recognize stock shares as part-ownership in the company.Many investors believe in the buy and hold strategy, which as the name suggests, implies that investors will hold stocks for the very long term, generally measured in years. This strategy was made popular in the equity bull market of the 1980s and 90s where buy-and-hold investors rode out short-term market declines and continued to hold as the market returned to its previous highs and beyond.

However, during the 2001-2003 equity bear market, the buy-and-hold strategy lost some followers as broader market indexes like the NASDAQ saw their values decline by over 60%.

Business in Telecommunication

Telecommunications, devices and systems that transmit electronic or optical signals across long distances. Telecommunications enables people around the world to contact one another, to access information instantly, and to communicate from remote areas.

Telecommunications usually involves a sender of information and one or more recipients linked by a technology, such as a telephone system, that transmits information from one place to another. Telecommunications enables people to send and receive personal messages across town, between countries, and to and from outer space. It also provides the key medium for delivering news, data, information, and entertainment.

Telecommunications devices convert different types of information, such as sound and video, into electronic or optical signals. Electronic signals typically travel along a medium such as copper wire or are carried over the air as radio waves. Optical signals typically travel along a medium such as strands of glass fibers.

When a signal reaches its destination, the device on the receiving end converts the signal back into an understandable message, such as sound over a telephone, moving images on a television, or words and pictures on a computer screen.

Trading Machine

Forex trading presents a real opportunity to achieve huge financial profits. All that you need is to tread in the market sensibly and use the tools available. Forex trading machine is one such tool. They are automated trading platforms through which you can trade into the market without having in-depth knowledge on forex.Day by day, forex trading is becoming the most popular alternative career for people from every walk of life. Forex trading machines or the automated trading platforms are making life easier for them. To them it is the dream machine to trade forex that helps them to take each and every decision for their trading.

For veteran traders, forex trading machines are a place for experimenting different trading strategies. According to seasoned forex traders price driven forex trading or PDFT is one such strategy that works like a forex trading machine, churning out profits from every trade.

PDFT is a method free of technical indicators or any other trading tool. Therefore, according to experienced traders, this system works like a forex trading machine which is perfectly mechanical. Anyone will be able to trade following simple instructions given by the automated system.

But this exceedingly powerful forex trading machine can be exploited to its fullest potential with little innovation and understanding. If you learn the tricks of the trade, you will be able to use the ‘machine' even better. You must try to learn the essential basics of the forex trade before you actually start the trading.

An e-book by Avi Frister titled "Forex Trading Machine" introduces the readers to the forex market without bothering them with technical and fundamental indicators. The book is easy to understand and use. "Forex Trading Machine" will not teach you pivots, chart patterns, MA's or other techniques that demands your experience or judgment.

Instead, it focuses on strict entry and exit rules on basis of price action that eliminates subjectivity from trading. The author claims that after going through the steps, you would be able to trade like a ‘robot' with guaranteed profits.

Introductory chapters of "Forex Trading Machine" informs the reader about basics of the forex including explanation of currency quotes, pips, margins, daily ranges, technical and fundamental analysis etc. The book also describes how one can develop a disciplined trading strategy, control over emotion like fear and greed, watch the market for assessing the trends etc.

The book "Forex Trading Machine" outlines specific strategies following which you can develop a disciplined trading practice. These strategies are supported with risk management measures, which prevent you from incurring losses.

The main Forex trading strategy described in the book is ‘Cash Cow' which is perfect for a person who does not have time to analyze the forex market and forex charts or to sit in front of the terminal throughout the trading hours. Advanced traders, who are capable of employing more than one strategies will be immensely helped with the book in understanding technical or fundamental indicators.

Automatic Forex Trading

An increasing number of people are being attracted by Forex trading rather than to the many other types of investment and it is easy to see why this is the case.The Forex market is the largest trading market in the world with a growing trading volume that has risen from in the region of $500 billion dollars in 1989 to $2 trillion today. It is also an amazingly liquid market that is not bound to any particular trading floor and operates around the clock across the world making it effectively a continuously open market. As one particular market closes another is opening for trading and you can follow the markets across the world as you trade and virtually eliminate the fact that your own home market is closed for the weekend.

As a result it is no wonder that Forex trading appeals to a wide variety of big and small traders each of whom enjoys a wide choice of trading strategies resulting from the myriad of factors that affect foreign currency rates. Indeed for many novice traders entering the market it is the many different things which affect foreign currency exchange rates that they find most attractive as it allow them to use a very large range of different tools when working in this amazingly exciting market.

Perhaps the largest influence today however on the future growth of the market and on its popularity lies in automation which has never been simpler to achieve and which brings with it many more advantages than disadvantages.

Automated Forex trading allows trades to be conducted in real time anywhere in the world and virtually eliminates the losses so often seen in manual systems that are operating operate in such a fast moving and volatile environment. Anybody who has traded with a manual system knows only too well the aggravation resulting from a row of trading losses caused by nothing more than a time delay in selling or buying.

Automated trading also brings with it the ability to trade in a number of different currency markets simultaneously without any regard for the time zones of the particular markets in question. If you are sitting in the US at 2 o'clock in the morning then automatic trading permits you to conduct business with traders on the other side of the globe in a variety of different countries all at the same time without any problem.

For many traders one difficulty is the management of risk and this risk is also reduced as we move towards automatic trading. Manual trading systems often leave traders anxious about whether or not payment will be made after the conclusion of a trade but because payments can now be synchronized in real time this is a lot less likely. Indeed, as automated trading systems continue to develop it is clear that settlement systems will also be developed and any risks will probably be almost eliminated in the near future.

Computer technology has advanced by leaps and bounds over the past few years and is going to continue to advance in the years ahead. More importantly, access to computer technology easily and inexpensively from the comfort of our own homes, or today even while we are traveling, means that we are now all able to manage our investments easily. For people working in the currency trading world automated currency trading will undountedly be a welcome addition to an already excellent form of investment.

Easy Trading

Pivot point in my own opinion represent the best and most reliable way to trade this market as it is only when price gets or come close to a pivot line that all professional traders in the world will be looking to take action. In my own opinion pivot point is the best trading style or strategy to trade the foreign exchange market profitably.So the question of all questions is when to buy and when to sell.

My answer is when you see price break through a pivot point going up for example only at that point should you wait for price to go back to the broken pivot point that was recently penetrated. Plus of course the secondary inputs of the other indicators to clarify and support your decision that you were right. Then if the other indicators confirm an upward continuation as in this example, then you will seek to enter as close to the pivot point that was penetrated as possible. Then take your profit by targeting the next pivot point in your calculated points, or you can move your stop loss to the next point to take more profit in the trade as it continues in your favor.

Foreign exchange trading can be very profitable and may mark the end of your 9 to 5 job with little time to spend in front of your computer. This is because if one is to consider the size of the market it will give a well trained and tutored trader the opportunity to make a huge profit, not to talk of the leverage the market gives you. Learn all you can and demo trade, before going live and you will surely quit your 9 to 5 job.

Financial strategy

Developed by Robert Kiyosaki it travelled through the whole world and became popular with the most of fans. Financial games of such a type give the opportunity not only to get more knowledge as for peculiarities of the transactions connected with investments or other forms of their making but help the player to become familiar with some principles as for carrying his own business in a right way. Having become familiar with principles of the game, most of the players can use them in real life while forming their own company. This may be exactly the feature to attract the players of the whole world to this teaching programme.

The author of this programme is considered to be Robert Kiyosaki, a well-known entrepreneur who is also a successful investor. Besides of teaching game being issued by him, he gives the courses teaching all the volunteers to the basics of successful money earning. Among the financial books he published there are quite a lot of bestsellers.

To become acquainted with the game you can download Cashflow and install this game. Here several players can take part at once. You can compete as with computer as with the rivals of the net.

Game field consists of two circles: Rat Race and Fast Track. Each participant throws the dice in his turn and makes the move into the number of cells which were fallen. Among these cells happen to be as positive as negative events. Depending on this the player can incur losses or gain profit. The main point of the game is to get out of the first circle which is one the most difficult tasks.

While playing Cashflow you will learn how to form companies, how to fulfil successful re-sales of real estate, how to make investments in a right way and to keep record of assets and liabilities. The main task of the game is to teach the player to dispose of his finances which should be not only stored but should be invested giving to his owner unfavourable profit.

After having gained a little experience in the game you will start to use your finance correctly, start to open and liquidate credits and will get the information how to lead your own business.

Macro trading

Sentiment indicator analysis sometimes referred to as contrary opinion analysis is essentially the study of investor's attitudes toward the market. While sentiment analysis has many uses it is most often used to find turning points in the market and not the primary trend.

Just as there are short term and long term trend indicators there are also short and longer term sentiment indicators. Some of the better known indicators include the put/call ratio, the SP500 volatility index or VIX, and the Investors Intelligence polling data. While there are several more indicators that you can use these are some of the more popular ones.

If you are looking at the put/call ratio you are looking at the total put volume divided by the total call volume. The higher the number the closer we are to the bottom and the lower we are the closer we are to the top. When it is in between there is usually little if any significance.

The volatility index also known as the VIX tracks the implied volatility of the SP500. What this means is that the VIX is the markets forecast of the potential move expressed as a percentage. This is an annualized number so if it says thirty then it means the market should move thirty percent over the next year.

The standard way of using the VIX is the higher the VIX is the better the chance that we have hit a bottom, and the lower the reading the more complacent the market is and therefore we have a better chance at being at a top. Again using other indicators such as moving averages and Bollinger Bands can help when deciphering the VIX.

Another widely used sentiment indicator are the different investor polls. The longest running poll is the Investors Intelligence polls which have been continuously put out since the sixties.

Essentially sentiment indicators are useful to gauge the wrong way crowd. At extremes sentiment data can help you to find potential turning points in the market. And more importantly they can help you find hidden risks.

At this point we hope that you recognize the importance and usefulness of sentiment analysis. You can use this data across markets and it will help you make and preserve money.

What's So Exciting About Stock Option Trading?

Option Trading seems to be more popular now than ever before. We all know that options can help leverage the money that you trade or invest. But, for the beginning stock trader, the concept of options trading can be a little confusing. In this article, I will to talk about what options are and the different types of options. I will also show the advantage that the options trader could have over people who do not trade options.Options can be broken down into two broad and general categories. There are call options and put options. The decision as to whether or not you want to use call or put options in your option trading depends on your opinion about where the market will go and how you want to make money based on that opinion.

One of the initial concepts that traders seem to find confusing is how options are priced. Usually, when people see the price of an option, it can be anywhere from a few cents to a couple of dollars. But, since a stock option represents 100 shares of the stock, the actual price that the trader will pay for an option has to be multiplied by 100. So, in option trading, a stock option that is priced at $.25 will actually cost $25 to purchase.A call option is the right but not the obligation to purchase a specific stock at a certain price for specific duration of time. This allows a trader to purchase the right to buy 100 shares at the strike price of the option before the option expires. So, if you purchased an XYZ $50 call option that expires next month, you have purchase the right to buy 100 shares of XYZ stock at $50 before the option expires next month. These expiration cycles are normal to option trading.

Some traders don't see the advantages that others do in option trading until they do the math. Let's suppose you purchase the above option for $.50. Since you purchase the stock option for $.50 and have the right to buy the stock and $50, you need the stock to trade above $50.50 in order to make money. This is called your breakeven price.Let's suppose that you check the stock price of XYZ stock and it's trading at $52. In order to calculate how much profit we would have on this trade at this price, you simply subtract the current stock price from the breakeven price. So, in this case you, would have profited $1.50. And, since options are traded in hundred share lots, this would translate to $150 profit. While this may not seem like a lot of money, keep in mind that in order to initiate this trade you only had to purchase the option for $50.

In the above scenario, the trader made money when the stock went up. Can we employ our option trading skills when the market goes down? You bet we can. If you are just looking to purchase options, this type of option trading strategy would employ put options.A put option is the right but not the obligation to sell a stock to someone at a specific price before a definite period in time. So, traders speculating that a stock may go down would purchase a put option. Let's clarify this with an example.

Let's say that you expect that ABC stock will go down. With this in mind, you purchase the ABC $25 put option for $.75. Now, remember that the stock will need to be below our breakeven price in order for us to make money. In order to calculate the breakeven for this trade we would need to subtract $.75 from $25. So, once the stock begins trading below $24.25 you will be making money.Option trading is not as confusing as some traders make it out to be. The concept of purchasing calls and puts are relatively straightforward and simple. As we have seen, the leverage potential and limited risk features found in trading options can be very attractive. For some traders, these are the two reasons that they get excited about stock option trading.

Understanding Options and How to Trade Them

In this article I want to describe the basics of options: what they are and how one can trade them.Options trading is extremely popular and provides far greater possible returns than does trading in the underlying stocks. But it also carries more risk.So it is extremely important to understand how options work as financial instruments and be clear on what your potential risk and rewards are in trading them.

Options are contracts on some underlying trading instrument - shares of stock, bonds, a commodity, even a mortgage loan! Stock options are the ones most people are familiar with and are the most traded by individual investors.But regardless of what the option is on, there are common features. One of the most basic is the contract feature specifying what the option owner has actually contracted for.There are two types of Option Contracts: CALLs and PUTs.CALLsA 'call' confers on the (option) contract holder the right to buy an asset at a stated price on or before a specified expiration date. An option to buy, but not an obligation. That's why it's called an option!The owner also has the option to let his contract expire. But then he loses everything he invested in buying that contract.

Essentially, when buying a Call option, you are betting that the underlying asset will increase in price before the expiration date. And, not only rise, but rise enough to make a profit.But whether you make a profit is determined by the price you paid for the option, and the increase in price of the underlying asset. Clearly the price must rise enough to cover the difference between the market price and the price at which you can buy the security (the strike price of the option contract). And, since the option itself has a cost, the price has to rise enough to cover that additional amount. That cost is called 'the premium'.

The cost of the option fluctuates with the supply and demand for that contract on the open market. Several factors determine the premium, including the price of the underlying asset, the strike price of the option, the time remaining on the option, and others.The time remaining is particularly important. Naturally as the option contract nears its expiry date the price of the underlying asset (the stock for example) is less likely to change dramatically from its current price. Therefore the result of excersizing the option is known with more certainty and the cost of the option reflects that outcome. For example, if a Call option is nearing its expiry date and the value of the underlying asset is lower than the strike price of the option the option is practically worthless, and so its cost will be very low.

Suppose it's June 1, for example, and Intel (INTC) has a market price of $27. Call options for Sept 30 are selling for $3 with a strike price of $30. You buy one contract for 100 shares.So, if you held until expiration you either lose $300 ($3 x 100, the initial price of the contract not including commission), or buy the underlying stock at $30. If the current market price were $35 you've made $200. ($35 - ($30+$3) = $2 per share x 100 shares, ignoring commissions.)When the market price of a share is above the strike price, the option holder is 'in the money'. If the market price is lower, he's 'out of the money'

PUTs

A 'put', by contrast, gives the option buyer the option to sell an asset at a certain price by a stated date. The option, not the obligation.Puts are similar to 'shorting stock', in this sense. Put buyers are betting the stock price will fall before the option expires. In this case the market price must fall below the strike price in order to garner a profit from exercising the option. (Ignoring the cost of the put, for simplicity.) Under those circumstances, the option holder is 'in the money'.

For example, take the same situation as above but let the option be a put. If the market price falls to, say $25, your profit would be:

First, $3 x 100 = $300 = Cost of put, excluding commissions

Then, buy 100 shares at $25 per share = $2,500 to repay broker 'loan' (since shorting stock involves borrowing shares you don't own, then repaying later).

Finally, sell 100 shares at Strike price = $30, 100 x $30 = $3,000

Therefore, your profit = ($3000 - $2500) - ($300) = $200.

(Actually, the broker takes care of all the underlying mechanics. The investor merely orders the trades at a given time and date.)Whether investing in calls or puts, wise investors do need to do their needed homework. Options trading is risky and somewhat more complicated than simple stock trading. But it can be extremely lucrative!

Making Money From Option Trading With Implied Volatility

Option trading remains a mystery to many new traders. There are elements to option trading that traders should know about to make trading easier. In this article, I give an example of how an options trader might use implied volatility in his trading. Then, I discuss implied volatility charts and how they are created.There is a definite connection between time value and volatility. As an option moves further away from its strike price time value decreases. Since the option has less time value, it will also have lower implied volatility. In making this observation, we can see the link between the volatility and time value. Once we understand this relationship, we can use this to our advantage in our option trading. So, let's look at an example of how this might be useful.

Let's suppose that we have a calendar spread on XYZ stock. To create the spread, we sold the December 50 call for $2.00 and purchased the March 50 call for $4.50 when the stock was at $50. The net result is a debit of $2.50 to our account. Typically, traders like to place his type of trade when the volatility in the options sold is higher than the volatility of the options purchased. All things being equal, this lets them know that they are selling more time value than they are purchasing. Traders sometimes refer to this as volatility skew.Now, let's say that after we place our calendar spread the stock begins to move up. As it does, the intrinsic value of our options increase and the time value of our options decrease. So, let's say that we have about two weeks left before the December 50 call options expire and the stock has moved up to $55. The December 50 call options are trading for $5.75. This means that the time value of this option has decreased by $1.25 while the intrinsic value has increased five dollars.

If we allow the December 50 call option to remain in the money, it is likely that we will be exercised at options expiration. Also, as the option's time value continues to decrease, it also increases the likelihood that the option will be exercised. In order to prevent this from happening, the trader could purchase the December 50 call option initially sold while selling an option with more time value. Suppose the trader purchases the December 50 call option for $5.75 and sells the February 55 call option for $5.70. The result is a net debit to the account of five cents. So, we collected $1.25 of time value on the December 50 calls and sold an additional $5.70 worth of time premium when we sold the February 55 call options. This means that we collected a total of $6.95 of time premium. As with the options example from last week, this was accomplished by covering the option after its time value and volatility had decreased due to market movement and selling an option that has more time value and higher volatility.

Implied Volatility charts

Novice traders sometimes look at implied volatility charts without really understanding how they are created. This usually comes to light as they begin to realize that volatility can be calculated for any option. And, the volatility value will likely be different for each option. So, if this is the case, where does the implied volatility value come from that is used to create these charts?Typically, implied volatility charts are created by using options which are at the money and will expire within the next 30 days. So if we look at the last point on a implied volatility chart, the volatility value would be derived from the option that was at the money as of the close of the trading day.

For example, let's suppose that we are looking at an volatility chart for XYZ Company. Today XYZ Company closed at $25. If we use and options pricing model on the $25 option, we can derive the volatility. If we do this every day, we can create a chart of daily implied volatility.A good understanding of volatility is important to option trading. Seasoned options traders understand how to use implied volatility to consistently make money. Once you understand what it is and how to use in option trading, you can take steps to place the odds of making money in your favor.

Trading Systems - What You Need To Know Before You Buy One

When traders contemplate purchasing a new trading system for stock market trading, they typically don't consider the cost of ownership. But, there are many things that new traders should consider when purchasing a new piece of software like the cost of maintaining the software and the cost of the data the program will need to function. In this article, I will mention some of the additional cost that traders should consider before making the decision to purchase a new trading system for stock market trading.The cost of owning a trading system or charting package for trading the stock market can be very high. Several factors come into play when looking at the overall cost like the type of market you trade and whether or not you intend to use end of day or real-time data. A stock market trader who is looking to trade stocks real-time versus end of day could find their data costing as much as 200% more than the typical end of day data service.

The format of the data can make a difference too. A program that requires a specific data format can be more expensive to own. Two common formats of data for trading software are Metastock and ASCII. There are pros and cons of using both. But since these are among the industry standards for data format, and makes data vendors more plentiful and there is more competition. Obviously, it is this competition the keys the cost down.When the trader considers a real-time service they can end up paying much more. However, the cost may be justified depending on how frequent the trader trades and the type of market he trades. A trader who trades in markets such as futures can experience a good deal of volatility and therefore they may want to have a real-time service where they can see the fluctuations of volatility that occur during the day in the charts of their trading.

An alternative to a real-time service is a delayed service. A service that delivers delayed quotes can cut the cost of the data by as much as 80% from the real-time counterpart. This can make a huge difference for traders to or just starting out and may want to use the money to trade rather than pay for real-time data. The cost of owning a trading system can be pretty steep for beginners and professionals alike regardless of whether or not you are interested in stock market trading or some other market. When considering the purchase of a new system, traders should take the cost of their data feed into account. This sets their foot firmly on the path of treating trading less like a hobby and more like a business.

Why Invest in Commodities?

Most of us are quite comfortable with investing in cash deposits, government bonds, and stocks for conservative risk-averse investors. We hear these products discussed widely in the financial media. But rarely do we hear commodities discussed as an investment alternative. After all, what do commodities have to offer that stocks haven't already provided? Here are reasons why commodities can be a good investment: - By diversifying your portfolio, the risk can be reduced, especially during recessionary periods such as bear markets where stocks tend to decline and lose value. Commodities tend to rise and this would counter the loss of portfolio value.

Commodities trend better than stocks, not only on individual or also stock sectors and stock indexes. As such they are a better long-term investment vehicle. Trends tend to last short term such as a few months to a few years. When the trend begins, it is very unlikely there will be sharp reversals or unpleasant surprise.- Commodity markets have large liquidity. Not all stocks are liquid even if they look very attractive earnings-wise, but exiting can be a painful process. In commodities, all commodities traded are highly liquid. - Commodities have been trading for more than a century. More than 90% of stocks come and go. None are changed any way so there is more reliability in back-testing (review your strategy on past historical data) than others instruments such as futures and stocks where premiums change from one expiring contract to a new one, or stock-splits.

- At tax time, profits from commodities pay lower taxes than profits from stocks. In addition, there is no need to itemize all the transactions line by line where all stock transactions must be itemized. Long term or short term capital gains do not apply in commodities.- Due to leverage, the gains can be spectacular, possibly many multiples of the original equity. For a small sum in the account, it is possible to more than double the account equity in a very short period of time.- If the financial objective of the person is aggressive where he has high tolerance for risk, then commodities may fit is personal tolerance for risk. With a small equity, he can use for high-growth part of the entire diversified portfolio.

Here are some reasons against the investing in commodities:

- Daily Price Limit can prevent the investor from exiting a position if prices have reaches the day's maximum price rise or decline allowed. This is especially difficult when his position is in a loss. Many times, margin calls will automatically exit the position. However, the account can be in the negative where the investor must fund additional money to the account to get back in black.- There is lack of research materials covered in the media or in print compared to those covering stocks. The most popular financial books mainly use stocks as examples. Most brokerages and investment banks whose analysts cover industries and stocks. Investors like to see easily available and up-to-the-minute information which can be made available but not in a wide variety.

- The leverage is high, so small losses can make a big impact on the equity. This is a common scenario where the uninitiated and unprepared will see the account being wiped out.- Future contracts constantly expire. If it's a long-term holding, contracts must be managed properly changing to forward contracts. This can be tricky because premiums change from one forward contract to the next. Acute attention must be given in doing so.If the investor is risk-averse in which he is content with small return year to year, then commodities might not be the right investment.

This list should not be considered final for any person to decide if he or she should trade commodities. There are many other factors and priorities, such as financial situation, time and preparation of each person to commit before deciding. To effectively profit from any market, due diligence and preparedness is the method to obtain the desired objectives. Weigh each pro and con carefully and verify the arguments for oneself before committing hard-earned money to waste.