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Thursday, August 20, 2009

Defining the Better Form of FX Analysis

By Brad Morgan

Two methods of foreign exchange market analysis are there:

1. Fundamental analysis takes into account economic, social and political factorsand how they impact the money markets.

2. Technical analysis however , employs graphs and charts to ascertain patterns that evince price movement.

How do you determine the superior study? Research shows that traders have deep affinity for either one. The technical analysts contend that their style is the best for getting an early evidence of price movements.

On the other hand, the fundamental analysts will affirm that currency prices are moved by socio-economic factors, a fact that cannot be declined. Thus according to them, chart patterns are mere events that have no real consequence on reality.

That comment should be taken with a grain of salt. While the direct and broader effects of economic changes is certain, in post major announcements situations and relatively event and change free times, technical analysis may be of aid in predicting movements.

One forwarning for the technical analysis idealists is that there is a possibility that they will be caught unawares should interest rates suddenly change. If the analyst does not read the news then there is a big likeliness that they will make a bad trading call. This can end up in a major trouble.

The verdict therefore is that short term trading can benefit from finding out trends via technical analysis while the large price movements are mostly created by socio-economic or political forces. Keeping both eyes open is the more frugal proposal as it facilitates one to use mathematics to predict short term movements while monitoring current news and happenings that would effect movements on a longer term and greater eminence. After all money in the FX market is made when one operates based on predicted movement and that prediction comes to pass.

Currency market movements are a bit like elastic that can stretch in one way or another and then fall back, although not always to its beginning position. The fundamentals are the impetus that cause it to stretch. Technical analysis portends how far it will fare in each direction before reversing.

The deduction then is that a careful trader utilizes both methods. So to perpetually make profits in the forex market you must ascertain when to use which tool and how much importance you will give to their relevant, predicted outcomes. - 23222

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Retiring Rich with Real Estate

By Julie Broad

I have two younger brothers. And as their older sister, I cannot help but worry about them and their future. It's my job as the older sister. And lately, I have been worrying about my brother that is closest to me in age.

My oldest brother is a gifted carpenter. He used to be a chef and he was very good at that too. He is also great at rebuilding and repairing cars. His skills, patience and attention to detail are remarkable. However, this is not true when it comes to how he manages his money.

As he is only in his early thirties, he's happy to keep working for the next 30 years, but I do worry about the fact that he's only saved a little bit for his retirement. None of us can rely on pensions or government funding to support our retirement anymore so we all should start thinking about our futures today!

I don't want to see my brother in financial trouble later, so I decided to help him with his finances. There was one part of his lifestyle that was glaringly obvious to me that needed to change- he owns three cars. I explained to him if he sold one and put that money into savings, not only would he have the money from the sale, he would be able to save an additional $500 a month.

Side jobs are great source of extra income and carpenters are always in demand. Building fences and helping with kitchen renovations could also add thousands of dollars into his savings in a short period of time. The savings can then be used as a down payment to buy a fixer-upper which could probably be purchased for around $200,000.

If he lives in the house while he's fixing it up, he can save even more money. Once it's all fixed, he can rent it out for about $1,400 per month. It's at this point he would buy a primary residence where he will live.

Now, keeping this really simple, lets look at what my brother has when he retires in 25 years:

If he added $25,000 value to the house by fixing it up, and the property goes up every year at 4% appreciation, then in 25 years time the property will be worth almost $600,000. And the best part is that the tenants paid the mortgage for him! That's like having someone else contribute around $1,900 a month to his retirement savings ($576,000 divided by 25 years divided by 12 months).

If you're wondering where the 4% comes from, properties increase in value on the average of 4% every year, even with ups and downs in the real estate market. But even if it doesn't increase quite that much, the tenants have still paid off the mortgage over the 25 year time span. The rent from the property that he continues to collect (which would be up to about $2,350/month if rent and expenses increase at a 4% rate as well) will go directly toward his retirement.

In 25 years, he will have his own primary residence paid off as well. If he owned nothing else but these two pieces of property, then he will have about $1 million worth of property for his retirement. Doesn't that seem like a simple way to have other people help you save for your retirement?

So are you wondering what happened to my brother? He followed my plan, sold one of his cars, and now he's doing side jobs and saving up for a nice down payment for his first investment property. - 23222

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A New Way To Invest In The Market

By Roger McBridge

Most investors on Wall St. know about trend following. It's a method that's been around for a while. I always thought it was too much trouble, and too much trouble and I didn't want to invest the money in the software or the time in learning to use the software. Lately though, my investments hadn't been doing as well as I wanted so I started looking around for new ways to invest.

I came across this website, ETFTradingSignals.com. I expected a pitch to buy software, but instead it was something different. For one thing, it wasn't the typical trend following. Instead of stocks, this site tracks EFTs. EFTs are usually part of a long term strategy. They are low risk, but like most safe investments, the returns aren't usually impressive.

ETFTradingSignals.com only deals with EFTs. EFTs are one of the safest investments on the market. Yes, EFTs are usually long term investments, and with this system you may keep an EFT for four to six months. No watching the market like a hawk, and agonizing over the latest indicators. A low risk investment that can still offer a high yield if you follow the signals.

The thing about ETFTradingSignals.com is their proprietary software which was developed to maximize the yield from EFTs by following trends the same as with other stocks. EFTs are less volatile than other stocks and require fewer trades to maximize yield.

That was eight months ago. After a month of just doing paper trades to check out the site, I decided to try investing in some of the trades. The results were better than I would have thought, and better than any other results I've had recently in the market. I've made about eight trades and my returns are at about twenty tow percent. I'd have to say I'm a satisfied customer.

I continued my membership and began playing with real money instead of imaginary money and I am very impressed. I've steadily been making money. Not all of their picks were winners, but I didn't lose much on the ones that went south, because their emails alerted me to exit in time to prevent any major loss.

I feel more comfortable about my investments now. I'm not constantly watching the market and worrying about every fluctuation. I let Trend Following Signals do the work and I just make the trades I want when I get an alert, or if I see something I like in their newsletter.

If you are looking to turn your investments around, try ETFTradingSignals.com. Hey, if you're not happy, they give you back your money. You can't ask for fairer than that. You've got nothing to lose here, so give it a try, you may be surprised at what you gain. - 23222

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Start With a Practice Account (Part I)

By Ahmad Hassam

Almost every forex broker offers a free practice account to new clients. All you need to do is to sign up with any good forex broker. The best way for new traders to get a handle on what forex trading is all about is to open a practice account.

Practice accounts give you the great chance to experience the forex market without losing your real money. You can see how the price changes at different times of the day. Practice accounts are funded with virtual money. So you are able to make trades with no real money at stake and gain experience in how margin trading works. The more you use the practice account, the more familiar you will become with how the forex market works. This will help build your confidence. Confidence is what you need when trading live.

Without any fear of losing money, you can trade your practice account with real market conditions. Practice trading will teach you how various currency pairs may differ from each other? It will also teach you how the forex market reacts to new information when major news and economic data is released.

You will also learn using different market orders on your practice account. Imagine using your real money trying to figure out how different market orders work. You will learn on your practice account how to manage an open position? This will improve your understanding of how margin trading and leverage works. You can also start analyzing charts and following technical indicators on your practice account. Without any fear of losing your money, you can experiment with different trading strategies and see how they work out in the real market conditions.

You can test drive almost all the features and functionality of a brokers platform on your practice account. However, one thing you will never be able to simulate on your practice account is the emotions involved in trading. Controlling emotions is important in order to become a successful trader. Emotions will only come into play once you put your real money on the line. Practice accounts are a great way to experience real forex markets first hand.

You can use market orders like the limit orders or the one cancels the other orders. However, you can also trade the current price of the market using the click and deal feature of your brokers platform. There are many ways to pull the trigger in the forex market. Pulling the trigger means how to enter or exit a position.

Many traders dont want to leave an order that may or may not get executed. Most like the idea of opening a position by trading at the market. Most prefer the certainty of knowing that they are in the market.

You just need to specify the amount that you want to trade. Then click on the buy or sell button to execute the trade. The forex trading platform will respond back within a second or two with a pop-up message either confirming or not confirming that the position was opened. Most forex brokers provide live streaming prices. You can deal with these live price feeds with a simple click of your computer mouse.

Attempts to trade at the market can sometimes fail in very fast moving markets when prices are adjusting quickly like after a data release or break of a key technical level or price point. - 23222

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Learn Forex- Getting Ahead of the Game

By Zita Von Snyder

Learn Forex Trading and stay ahead of the game, because in the world of cut-throat business, it pays to be prepared. When trading forex it pays to know who the players are, know the market conditions and the risks involved. Be aware of what you are looking at: the currency you are trading, the factors that affect the value of the currency you are trading, your trading strategy and current market trends. You can be ahead of the curve if you take the time to learn forex trading.

To learn forex trading, you should consider a forex trading course. There are a couple of benefits to learning forex trading with a forex course:

A forex trading course can teach you the basics of reading charts that will have indicators that show important factors like trends and volume as well as price action of a particular currency. You can learn forex, the terminology used and the basic steps for trading forex.

A good forex trading course not only provides the technical tools to learn forex but it will also teach you to control your emotions and stress when trading forex. Forex trading demands discipline, which you can get if you will invest in a good forex trading course to learn forex.

When looking at a forex trading course you should consider some of the following attributes to learn forex:

*The Basics of Forex Trading-A basic overview of forex terminology including margins, types of orders, leveraging trades, how to understand types of analysis of charts and other indicators.

*Analysis-the forex trading course should teach you how to do both technical and fundamental analysis and which tools or software to use and which to avoid. This will help you minimize your risks and maximize your profits.

*Learn Forex Trading Values- This can be the key to becoming a successful forex trader, by having the understanding not only of the value of money but also the discipline it takes to trade forex without emotion. Learn forex with a good forex trading course and you will learn these trading values.

Experience can only be gained by trading forex in either real time or a simulated environment. This should be offered as part of your forex trading course. Some courses have live demo accounts or trading rooms that offer a great learning experience. Being able to discuss your lessons and what you have learned either one-on-one or in a forum also helps to learn forex trading.

A forex trading course is a great way to jump-start learning forex trading. If you invest in a good trading course, learn the basics, study the market, learn how to analyze the fluctuations in the market, and manage the psychology of trading you can be on the road to success. Being well equipped will lead to higher profits as well as the ability to successfully learn forex trading. - 23222

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