What is a forex trend?

By Hass67

It is very important to identify and understand a trend in forex because they tend to be vicious and one way. Forex trends routinely wipe out speculators like you and me who commit the trading sin of trend fading.

FX trends start slowly and are usually the result of another action taking place in the global capital markets. A booming stock market like that happened in the Tokyo Stock Exchange some years back may lead to a massive forex trend in its wake as an example.

Likewise, a global recession may force the investors to run towards save haven currencies like dollar in their flight towards safety. Similarly fall in interest rates usually forces carry traders to become risk averse.

So you will have to keep one eye on the global macro situation developing to look in which direction smart money is going to flow. Most of the trends in forex markets are fundamentally driven by the direction of smart money flow.

The longer the trend is, the longer the correction and the consolidation will be. In simple words, fundamentally driven trends do not make sudden U-turns.

But when the general public realizes that a trend has developed, it is always too late for them. Professional traders and hedge fund have long been in the trade and are ready to dump their positions on the retail crowd.

Dont forget the saying: a Newsweek cover is a kiss of death for a trend. Trends are important for a retail trader to understand.

Always remember, trend is your friend. Trend trading is one of the popular trading strategies used by professional traders including hedge funds.

The best strategy is to take a position in the direction of the trend. You can easily identify a trend in currency markets using multiple time frame analysis involving moving averages.

Once you have identified the trend, use Fibonacci retracement levels to enter and exit the position. Always put stop losses. If you successfully make a trade, you can make many pips in a few days. - 23222

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Learn Forex Nitty Gritty. Read about Trend Forex System. Try Netpicks Forex Signal Service.

Swiss 20 Franc Gold Coin: A Classic Swiss Gold Coin

By Christina Goldman

The Swiss 20 Franc Gold Coin, also familiar as the Swiss 20 Franc Vreneli, is without doubt one of the world's most elegant and classically designed Swiss gold coins. Since Switzerland has always exercised buttressing its currency with gold, Switzerland has long been acknowledged as one of the most financially sound and influential countries in the world.

The Swiss gold coin most commonly known as the Swiss 20 Franc is a well-crafted and lovely piece that displays the profile of a Swiss woman, more commonly known as Vreneli, with braided hair, wearing flowers and facing left.

Above her head are the words "Helvetia", another common name for this particular coin. The opposite side of the coin displays the familiar Swiss shield over an oak branch that has been tied with ribbons and includes the denomination and the date.

The Swiss 20 Franc Gold coin was struck in Bern and consists of 90% gold. All in all, 29 pieces were minted in 1879, a modest cross imprinted in the middle of the Swiss cross on the obverse side differentiating these from others.

The coin, measuring 21 mm across, has been minted in various years, the most typically recognized being:

* 1897 to 1916

* 1922

* 1925 to 1927

* 1930

* 1935

* 1945 to 1947

* 1949

When it comes to accumulating or investing in Swiss gold coins, genuine Swiss gold coins are a few of the most beautiful ever minted. The first-ever striking of gold coins in Switzerland came about in about 1492, though the Swiss 20 Franc gold coins are the most celebrated and were released in Switzerland from 1897 to 1935. - 23222

About the Author:

You can find great prices and selection on the Swiss 20 Franc Gold Coin and other Swiss Gold Coins at: http://BullionBargains.com

Penny Stocks, Pink Sheets, Or Micro Caps What's the Difference?

By James Brumley

Its extremely important that investors know how to distinguish between terms like pink sheet and penny stock, bulletin board and micro cap. The differences can mean making a winning or losing trade.

Though its likely you know the true definition of at least a couple of these terms, its worth spending a couple of minutes planting a simple " and unique " explanation in the back of your mind for each one. Doing so may mean the difference between making a profitable investment or not at some point in the future.

Whether you consider a penny stock as one that trades under $1 or one that trades under $5 really doesnt matter. Although the universe of stocks to choose from will definitely expand as the stock price rises.

Though its slightly arbitrary, the $5.00 price level may have become the standard simply because thats the price under which many brokerage firms will not short a stock, or allow it to be margined. However, some brokerage firms have no price limit at all when it comes to shorting a stock. So, penny stocks can be sold short.

Many low-priced exchange-listed stocks are cheap due to a temporary situation that once cleared up, will send the stock higher. The company size or its exchange do not determine its status as a penny stock"which can be a pink sheet or bulletin board stock (see below).

One of the riskiest types of stocks to invest in is a pink sheet stock, traded on an over-the-counter quotation system. Before you completely eliminate them from your investment world, its worth doing a little homework because this stigma isnt always deserved.

Some foreign stocks choose to list their equities in the U.S. market, but for technical or logistic reasons cant list their stock with one of the exchanges or the bulletin board system. That doesnt make the investment any less credible though. The size of the company (or market cap) is irrelevant.

On that note, however, the potential downside of pink sheet stocks appears there are essentially no reporting/disclosure requirements for companies with stocks listed as pink sheet equities. In other words, you may not be able to view any audited accounting statements for these stocks. Many pink sheet companies can and do disclose every single financial statement they produce, however. For that reason, these stocks should be considered on a case-by-case basis.

However, if a stock isnt listed on the NYSE or AMEX but rather the OTC market or as an OTCBB stock, it still means it has met SEC reporting/disclosure requirements and is considered to be of fully reporting status.

Why is it errant to describe the bulletin board system as the over-the-counter market? Because its not the only one. The pink sheet market is also an OTC market, and technically speaking, so is the NASDAQ system.

Bulletin board companies dont consider share price when determining if a stock should be listed there, but market cap may be.

Dont judge a bulletin board stock by its cover. Dig a little deeper because some can be stronger and more productive than exchange-listed stocks.

When it comes to determining is a company is considered a micro cap, share price doesnt matter, but it usually has a market cap of $250 million or lessgive or take a few million.

A micro cap status also has nothing to do with where or how a stock trades. The New York Stock Exchanges minimum market cap requirement is only $25 million, so qualifying for an NYSE listing isnt necessarily a sign of great size or strength.

A Quadruple Summary

By not knowing the key and unique ingredients of penny stocks, bulletin boards, pink sheets and micro caps, you might overlook or steer clear of an investment that might be a benefit to your portfolio.

Theres only one website you need to bookmark for all your trading needs: www.smallcapnetwork.com. We find the information thats key to uncovering the best of the best stocks. Sign up for the free e-newsletter today. - 23222

About the Author:

James Brumley is an expert in the small stock arena covering penny stocks and small cap stocks for over 10 years now. Investing in penny stocks can be very risky and it is recommended you gain access to the limited amount of information available to investors. The Small Cap Network's free newsletter is one source sure to provide valuable insight and ideas.

Stock Market - A Look Back at History

By C.L. Sommer

The stock market is a location where businesses and individuals buy and sell shares of companies and benefit from the returns. As a shareholder, a person enjoys some amount of say over what happens in a company. This investor offers needed financial support to the company and in return benefits from the profits. The number of shareholders owning a company could range from just a few people to thousands- depending on the size and the financial requirements of the corporation. As a business grows, it requires adequate funds to reach its financial goals. When a company is in substantial growth period, it sells shares to the public to gain a stronghold in the market. Offering shares to the public has been a practice with many businesses since the early times.

Companies selling pieces of their business to the public is not a new idea. The financial markets have been a platform for buyers and sellers, where, ideally,both parties share a mutually profitable relationship. The stock market is like the financial backbone of a country- a location where shares of numerous companies are bought and sold. In the United States there are three major stock markets that play a crucial role in shaping the economy- the Nasdaq, the New York Stock Exchange and the American Stock Exchange.

Wall Street is a well known and important financial center in the United States. Here's how it got its name. During the 17th century, before New York City was what it is today, there was a high wall built to defend against British attackers. Eventually that wall was torn down but the name of the street remained as Wall Street.

While we think of Wall Street as the financial hub of the US, history has a different story to tell. Boston was once the countrys financial center. Boston traders played an active part in buying and selling various kinds of commodities as well as dealing in bonds for contracts such as bridges and canals. Even though it is difficult to imagine the financial hub of America as something other than Wall Street, history clearly states the importance of the Boston dealers in creating an active financial market, very much similar to the one found in Wall Street today.

Other countries similarly transacted out their financial activities through their own financial centers. For example, the City of Paris economic activities were carried out on Rue de Quincampoix.

The story of the London financial market is another interesting tale in the history of commerce and finance. The London stock exchange was initially an open market situated on Exchange Alley. Jonathans Coffee House was the financial center where many London traders carried out their financial endeavors. Later the Coffee House was renamed The Stock Exchange.

Over the years, Wall Street gradually picked up business with varied kinds of traders offering countless shares to the public. As time went by, many new banks also began to operate in the market offering attractive deals such as treasury bonds. - 23222

About the Author:

C.L. Sommer is a regular contributor to WallStreetSWAT.com, the best source for financial news, real time stock market quotes, economic data and more - offering the Special Weapons and Tactics investors need to navigate the complicated financial markets.

What Reasons are there to Invest In the Stock Market?

By Gilbert Stockton

The stock market is one of the most popular forms of investment for investors. If you don't invest yet, you might be wondering why someone would put money in the stock market. The truth is that there are a number of reasons to invest in the stock market. Let's look at a few of the best reasons that you might want to invest.

The stock market is a very valuable tool to people who want to save for retirement. The stock market can be risky in the short term but for many years your risks are cut substantially. This is why many young people choose to invest in the stock market.

When you start early it is a lot easier to turn a huge profit for a small amount of money. See the example of investing into Google and now what it is today.

A day trader is another way to invest in the stock market. A day trader trades shares day to day and is looking to make a profit in the short term. The stock market is very difficult to predict but you can make a lot of money if you predict trends correctly investing this way.

Day trading is very risky and it is very popular to those who like to gamble. It is very similar to going to the casino and taking a chance on something. You can lose a lot of money or win a lot of money depending on your estimations and guesses.

The last thing about the stock market that is overlooked a lot of times is it is a fun way to invest. Picking a stock and watching it go up and down can make anyone anxious to know whats going to happen next. - 23222

About the Author:

Learn How To Pick Penny Stocks. Can You tell What Are Penny Stocks?