segunda-feira, 30 de junho de 2008

Why The Price of Gold Per Ounce Is Going To Soar

As I'm writing this article, on June 26th, the current price of gold is up $30 to over $900 an ounce. At 12:18 p.m., the gold futures price (for August delivery) was trading at $31.10. That's a rise of 3.5 percent! And if gold manages to close at that level, it would be the biggest percentage gain in 16 months! So, why is gold surging after languishing since March, when the metal hit its all-time high of $1,033.90 an ounce?

The Fed Is All Talk and No Action

Yesterday, the U.S. Federal Reserve kept interest rates at 2 percent, even though they acknowledged that inflationary expectations were rising. People are starting to worry that the Fed might be behind the curve. Expectations for a rate hike have diminished with the Federal Reserve saying that they believe inflation was likely to moderate later on in the year. On the one hand, you've got the Fed saying that they are concerned about inflation. But on the other hand, it appears they aren't going to 'walk the walk' and do anything about it. That's why gold is going ballistic today.

Oil is Moving Higher

Another reason for the surge in gold today was oil prices. Today, you had Algeria's Oil Minister - Chakib Khelil - come out and say in a French television interview that an Iranian conflict could cause oil prices to rise over $200 a barrel. And perhaps even as high as $400 a barrel!

On that note, the price of oil surged to $138.95, which is just a bit below the record high of $139.89 that was set on June 16th. Why? Because Iran just happens to be OPEC's second biggest oil producer and proven oil reserves owner. Gold reacted big-time to those comments.

On a long-term basis, the price of gold is going to go even higher. Here's why:

Gold is typically purchased to protect against the loss of purchasing power. The Federal Reserve seems to be suggesting that they are more concerned with protecting the growth of the feeble U.S. economy and that inflation is the lesser of the two evils. The best way to combat inflation is through higher interest rates. Other central banks seem to be taking the rise in inflation much more seriously. The value of the dollar has fallen dramatically since the Fed began aggressively cutting interest rates in. If the Fed is seen as being 'behind the curve', the dollar is going to sink further.

This will drive investors out of bonds and equities and into either foreign assets or hard assets such as gold and silver bullion.

Investing - Does a Passive Strategy Help Or Hurt?

I must say that I have no problem with folks buying and holding index funds. Many people have made a lot of money doing it. My problem is when investment advisers say that the ONLY way to make money in the stock market is to buy an index fund or invest "passively". That simply isn't true.

The new idea of efficient markets means that no matter what you do, there is no way to beat the stock market...and if you somehow do, it was a matter of chance or luck. It is an idea that is largely harbored in academic circles and it is based on one fundamental idea:

1. Stocks Reflect All Available Information

If stocks reflected all available information, there would be no way to beat the market. Stocks are information sensitive, and so they are priced largely by information. If all information is already available by the time you go to buy a stock, there is no way that you can profit by buying that stock at a specific time (also known as "timing the market") or by buying one stock over another stock because information is what would give you an "edge" in the market. With all information available, there is no edge. Thus, the only "rational" way to invest is simply to invest in index mutual funds or a collection of stocks that will passively mirror the returns of the stock market as a whole.

The idea rests on a theory that stock prices have one "true" value. There is only one "correct" price and that that price is determined instantaneously by the market. If and as new information becomes available, the price of the stock changes instantly and you can never make any money from it. The stock market is always right. That's why you can't beat it (consistently earn higher than average returns or higher than indexed returns).

Debunking The Intrinsic Efficient Market Theory

"Warren Buffet" - that should disprove the "Efficient Market Hypothesis", but if you need a more comprehensive answer, here goes:

Just as with the subjective method, the intrinsic method is also arbitrary in the pricing of stocks. The reason for the automatically correct and instantaneously self-correcting stock market is unknown and unknowable. It apparently "just happens".

The fundamental theory of the efficient market hypothesis crumbles when we realize that stocks do not in fact reflect all available information. Why? This is partially due to the illegality of insider trading, and various Government regulations. For example: Bill Gates cannot trade on his information about Microsoft because he would be considered an "insider", and would be "guilty" of insider trading if he did. This information does not get reflected in the price of a stock immediately.

The stock market does not reflect the most informed traders.

However, even if we were to discount insider trading eliminating information from the market, the efficient market hypothesis ignores the fact that there must be someone there to make the market efficient. Again, there must be a cause and effect relationship. Markets do not exist in a vacuum and are not arbitrary. Prices cannot be "automatically" correct without someone to make them correct. There must be someone buying and someone selling on information somewhere that causes the price to be what it is. Nothing, from the building of a house, to the pricing of stocks, to the building of an investment portfolio, happens instantaneously. There is always some time involved - some delay. The reason for the delay is that productive work is a dynamic process - not an instant event.

That productive work comes from the traders on Wall Street (yes, they do work believe it or not). It is the people exploiting the small developing patterns, the individuals acting on new information as it comes to the market, it is the savvy investors who are willing and able to buy and sell stock based on that information that creates the efficient market. In short, the reason the market is efficient is because there is money to be made. takes effort, skill, and ability to do the necessary research on companies and to make rational observations and valuations about all of the companies that these traders invest in.

If the intrinsic efficient market theory were valid, then there would be no incentive for anyone to buy any stock because there would be no opportunity for profit. Additionally, if there was no profit to be made by selling, there would be no incentive for an individual to sell their stock. There would be no reason to invest in the stock market, and quite possibly no way to do it - not even in an index mutual fund which would be holding stocks in a stock market where no one would be willing to sell because there would be no incentive to do so. There would be no functional stock market.

sexta-feira, 27 de junho de 2008


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FX Trading Strategy - the Application of Mathematics to Reveal the Theory of Market Movement

Today, traders all around the world are using complex computer programs and mathematical equations to work out the scientific theory of market movement. What are the results and how can they benefit your FX trading strategy?

Let's start with a fact:

Today 95% of traders lose their money and it's the same ratio as 50 or 100 years ago and this is despite all the so called advances in computers, forecasting and number crunching applied and this leads to an obvious conclusion.

Forex markets don't move the certainties i.e. mathematics, they only move based upon odds and you can try as hard as you like to apply science and maths - but if prices move to the odds this is futile. It's obvious:

If markets moved to a mathematical theory, we would all know the price in advance and there would be no market! Common sense - but traders love complexity, it makes them feel safe and they think it cuts risk. They may love it but it won't help them.

Today there is a huge industry in robots and automation is the buzz word and you see extra ordinary profits in hindsight and simulations - but they never work in real time, because no two pieces of data are ever the same and you really are chasing your tail if you try it.

Just as in yester year, simple forex trading systems work best, as they are more robust with fewer elements to break. A simple odds based system should be the basis of your FX Trading strategy. Don't be deceived a simple odds based system can make a lot of money.

The problem today is we are used to science and maths solving problems in life and making our life easier, more comfortable and it does - but that doesn't mean it works in all areas of life and the forex market is one, where it doesn't. You need to keep it simple, have confidence in what your doing and if you do, you can enjoy currency trading success.

So stop trying to beat the market and see it for what it is, a high stakes, high odds game and get the right forex education. If you keep it simple and trade the odds, you can make a lot of money with your FX trading strategy and that's a fact.

domingo, 15 de junho de 2008

Paul Offit

Vaccines do so much good in the world, how come we don't like them more? This question is answered by Dr. Paul Offit, an infectious disease specialist and vaccine expert. He traces the origin of today's antipathy to vaccines to a horrendous incident during the 1950s in which thousands of people received polio vaccine containing live poliovirus.

sexta-feira, 13 de junho de 2008

What You Should Know Before Using the Forex Autopilot System

The Forex Autopilot is an automated trading system designed by Marcus Leary which has made, and is still making waves amongst forex traders. But the software is not without its critics who claim to have lost substantial amounts of money as a result of using the Forex Autopilot system.

The reason I decided to write this article on the Forex Autopilot is because I wanted to point out a few errors that I made when I purchased this system, and hopefully other people buying the Forex Autopilot system will have a clue as to what needs be given more attention.

First and foremost the Forex Autopilot set up manual that comes with the purchase needs complete attention to detail when setting up the system. It took me approximately 20 minutes to set mine up, so if you are in a hurry I suggest you don’t proceed with the set up till you are a bit more relaxed.

After you have set up the system don’t rush off to go put in your first trade. Ensure you have tried the Forex Autopilot on a demo account to ascertain that you had it set up properly and continue to use it on the demo account till you have a hand on how things work.

When you notice the system is not entering trades even after you have completed set up, do not panic just allow the system to analyse the market because this is what it is doing.

Finally, it is important that you keep your system on as long as you have a trade running and the Forex Autopilot working. Powering off your system will affect the software as it needs the system on so it can continue to analyse your open positions.

So, the Forex Autopilot can indeed generate very profitable trades as long as you use it according to these guidelines. Good Luck Trading.

Automatic Forex Trading System

The search for an automatic forex trading system that works is often seen as the search for the so called "holy grail" which is the reason why many traders have lost huge sums of money and more are still loosing. When it comes to an automatic forex trading system, the search is likely to be long and arduous, and there is the question of why is everyone not using it?

In fact, I don't believe there can be an automatic forex trading system that can assure you of 100% successful trades as claimed by most because there is always the element of the forex market which is totally unpredictable.

It's not far fetched for a forex trader whose automatic forex trading system is based entirely technical analysis to come back the following day and encounter an unexpected reversal due to fundamental (socio-economic) news being announced lower or higher than expected resulting. So, if fundamental analysis can not be predicted, and as one author puts it "no one knows what’s going to happen" in the forex market, how can an automatic forex trading system be possible?

The answer lies in the understanding that if you truly want to use an automatic forex trading system, you are going to have rules, such as not trading in the vicinity of news time where the market reaction can be unpredictable based on technical indicators due to the reaction of the market to the news such as the non-farm payroll data once per month.

Before using an automatic forex trading system then, the trader must know the online currency market fairly well. Must understand that nothing can replace basic education, no matter what system you use basic forex trading education will help you identify better with the system you choose to use. It is also important to have education and mentoring and at least training in some indicators and strategies to understand the reading of the market technically, as well as a sound understanding of the fundamental analysis aspects of the market.

Using automatic forex trading system with a stop loss is one way to ensure that even if your system is entering trades that agree with the technical analysis prior to news release, your stop loss is there to get you out if the news comes out on the other side and things move against you. But if you can altogether avoid using your system before important announcements I personally think it wise. Conclusively, there are automatic forex trading systems that indeed can generate profitable trades for any trader but they are not without rules.

quarta-feira, 11 de junho de 2008

Digital Scales - New Line

Escali digital scales, has launched a newly line of scales and that is Escali. If you look at you can find a huge selections of stylish and fashionable digital Escali scales. You don't have to calculate and convert decimals into fractions! It is in small sizes, good for office or hobby use, as well as being a great digital kitchen scale or diet scale! Modern and eye-catching, and are great in the kitchen, and any other room that needs a small scale. They also have a scale that has its own frosted-glass bowl, making it dishwasher safe. Escali scales are fashionable, affordable and good quality. What are you waiting for, buy yours now and loose weight in a glamorous way.

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Trading Mastermind Launches New Forex Trading Course

Trading Mastermind Offers online forex trading, currency forex trading courses and forex trading training. Our expert will provide you the best forex training and courses to help you generate more revenue with forex trading. If you are a Forex currency trading beginner, your first order of business is to get yourself informed. Forex trading can truly be highly profitably. However, without knowing its essentials, you will not earn one single dollar from it and may even lose your investment. Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose.

You have seen the potential for how much money can me made in Forex trading and you really want to make it work for yourself. But somehow it just doesn't seem to work as well as you expected even after taking several high priced forex training courses and programs. Well the reason that others are not able to show you how to trade successfully will become clear to you once you experience the insights and breakthroughs that this video training course reveals.

Trading Mastermind is a community of Traders who are committed to sharing insights and experiences for the benefit of the entire community. Although many of the members of this community focus on the Forex market, the trading principles and methods used can be applied to any of the financial markets and some are focused on Futures, Commodities, Bonds, and other instruments.

Forex Robot - Get This Free One Which Beats 95% of Those Sold Online!

The forex robot won't cost you a cent, yet it will bear most of the forex trading systems sold online so, if you want bigger forex profits check it out all you need to know is enclosed...

Before we look at this system be aware that most systems sold should NOT be classified as such because they have never been traded and normally have this in the small print, against there supposed track records:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

The track records are on paper not real dollars, so it's hard to take them seriously.

Anyone can make up a track record if they have access to the price data in advance, a child can do it and so can you but it wont make you money in the brutal world of real time trading.

Now let's look at our free one that has been making money for years and has been the basis of a number of successful trading systems.

The system is called The 4 Week Rule and (there is only one rule and you don't even need a computer to calculate it) here it is:

When prices hit a 4 week calendar high go long and when they hit a 4 week low go short i.e stop and reverse. That's it, there's your system.

You may say, that sounds too simple to make money - but don't be deceived the simpler a system is, the more robust it will be.

There is no correlation between how complicated a system is and how much money it makes.

This system works great on trending markets and will keep you in and catch every major move of course, with any system there is a downside and that's when markets don't trend, this system will whipsaw.

Here you can simply alter the exit filter to 1 or 2 weeks to cut drawdown, go flat and re enter on the next 4 week trading signal.

This trading system is a great one for patient traders, who want to make money from the longer forex trends and it works.

Simply test it and see for yourself.

So when you see all those great forex robots for sale, check the track record and you will see there not all they seem and get yourself one which has performed, made money and savvy traders use, to pile up long term forex profits and enjoy currency trading success.

It's profitable, free, easy to understand and time efficient to use, check it out and maybe glad you did.

domingo, 8 de junho de 2008

Why You Should Also Make Money in Forex?

You are constantly hearing about ways to make form home and you already know 99% of these claims are either bogus or scams. Is there any legitimate business which can really help you to make money fast and easy? Is there any business which can help you to make real big money? The single answer to all these questions is FOREX.

Forex is real good business. You can make a lot of money in forex right from your home.

How much you can earn in forex?

That’s up to you. The earning potential is limitless in forex.
You can make money fast and easily in forex.Forex is foreign exchange market. It involves buying and selling of currencies.

People from all walks of life are trading forex. You don’t have to a financial geek to trade forex. Anybody can trade forex. It’s very simple.
And you don’t have to put a lot of money as investment; you can start with as little as possible.

But when you look out for training course to learn forex then you will come across by courses raging from $300 to $5000. This discourages many people from learning forex.

To overcome this problem we have developed a free course to teach forex in simple manner.

Learn Forex Trading

Almost all internet marketers have heard of forex trading or online currency trading as it is sometimes referred to and many are curious about how the forex trading system works and where they can go to learn forex trading.

In order to become a successful forex trader you need to know what forex trading is and how to successfully trade forex. In order to achieve sufficient knowledge it is vital to learn forex trading from experts. This can be done in the form of a forex tutorial and there are literally hundreds of forex companies offering online tutorials and guides.

An online forex tutorial will explain how the foreign exchange market works and will also explain the types of forex orders that are available to you as a forex trader. A forex tutorial will also explain about technical indicators and what they mean, the economic indicators you will need to be aware of and the various options and strategies that are available to you as a forex trader.

If you are new to forex trading then it is essential that you learn forex trading before parting with any of your hard earned cash. Many online forex companies offer free training and demonstrations that resemble that of real time forex trading. There are also forex trading courses available and these are also a valuable way to learn forex trading as you can refer to these course time and time again.

The most important aspect when it comes to forex trading is to learn forex trading so that you understand how to trade and how to trade successfully. The more you learn forex trading the more understanding you will have and the more success. Finding a forex tutorial or forex trading course is simple. All you need to do is a brief internet search and you will have a great deal of tutorials and courses to choose from. If you are serious about succeeding as a forex trader, then it’s down to you, learn forex trading now and learn to succeed.

sexta-feira, 6 de junho de 2008

Let Your Money Work for You with Automated FOREX Trading

In our modern world of luxury and ease, some financial speculators are finding it advantageous to do FOREX trading the easy way: through automated FOREX trading systems.

Automated FOREX trading is exactly what it sounds like. A highly sophisticated and complicated computer program uses mathematical algorithms to determine when to buy and sell currency, and it makes the trades for you. You put an initial investment into the account, and then let the system do all the work for you.

It may sound risky to let a computer program choose when to buy and sell currency, but automated trading can often be safer than doing it yourself. Humans are subject to error, to misreading charts, and to overlooking data. Humans can also let their emotions get in the way of making smart decisions, like the gambler who loses everything because he just can’t tear himself away from the blackjack table.

An automated trading program has none of those flaws. With the software doing it for you, it’s as if you were always watching every market, noticing every trend, instantly analyzing all available data, and making the smartest decisions.

There is a cost for this, of course. Most brokers that offer it require a minimum investment of several thousand dollars or more, and they may charge a fee on top of that.

But the benefits of automated FOREX trading can be great. Whereas manual trading requires an investor to study the market intensely before jumping in to it, automated trading requires no training at all. Learn the very basics of how the market works so you can tell what your automated system is doing for you, and that’s it. Sit back and let it make your money work for you.

Automated trading is also useful for companies and other institutions that want to diversify their assets but don’t have the time or resources to devote to FOREX trading. If a computer program can do it for you, there’s no need to have one of your employees handle it, right?

It goes without saying that automated trading systems rely on technical analysis rather than fundamental analysis. That is, the algorithms examine past market performance and general trends and base their trading decisions on that, not on external factors such as politics and environmental concerns, which may affect a nation’s currency. Nonetheless, automated trading has proven to be highly effective and accurate for many investors, freeing up their schedules to focus on other things.

Forex alerts are a handy way of staying on top of the market

Because currency exchange covers the entire world and all 24 time zones, forex is a 24-hour-a-day market. This is good in that it results in billions upon billions of dollars of transactions per day. But it also means that forex traders have a constant influx of information to keep track of, unlike the stock market, where once trading closes at 5 p.m., that’s it. So how do forex traders stay on top of things? Most of them use forex alerts of some kind.

Forex alerts are available from many online forex brokers and other companies. A forex alert is simply a message sent to the user informing him of the latest developments in the forex market, often recommending action of some kind. These alerts can be sent via e-mail or cell phone text message.

The idea behind them is that no one can follow all the markets all the time. Even if you limit yourself to just the “majors” -- U.S., Eurozone, Great Britain, Australia, Japan and Switzerland -- that’s still 15 currency pairs to keep an eye on. What’s more, sometimes things are steady for long periods of time, while other periods are marked by great activity.

The sites that offer forex alerts go about it in one of two ways. Some simply send out alerts every 24 hours, offering the latest info on the forex market. Others send alerts only when something crucial happens. These systems use formulas of their own to determine what constitutes “something crucial,” and they may charge a lot more for their more specific alerts. And of course it’s still up to the individual trader to act on or disregard the information send to him in the alerts.

Some brokers include forex alerts as part of their service, while others charge for them. Some are part of a wider alert program that also handles your stocks and bonds. You can tailor the type of alerts you get based on whether you’re a conservative or aggressive trader, and how actively you plan to trade.

Serious traders who use forex alerts swear by them. No system is perfect, of course, and a smart trader will always do a little browsing on his own to make sure his latest alert didn’t miss anything. But alerts are an invaluable way for busy investors to go about their daily lives without having to constantly watch the forex rates.

terça-feira, 3 de junho de 2008

Better Trades - a Better Teaching Strategy

Do you really want to learn your stock market trading strategies from someone who has never traded?

One of the problems of the Internet is that there are hundreds of people and countless websites that say they know how to use the stock market when they are simply regurgitating the information available everywhere. If you're trying to build your personal wealth, reading the same information found on virtually every trading website simply won't help. Fortunately, there's a better way.

BetterTrades is a truly unique educational company in the world of trading. We rely on live events that you attend in person to ensure that you are learning trading information unavailable anywhere else. Interactive seminars, live mentoring, online courses and specialized trading information are also used to help you get a maximum return. Our interactive multi-training makes BetterTrades an exceptional resource for any trader either new or experienced.

One of the best things about Better Trades is that all of the instructors are experienced traders who have worked extensively with the stock market in the past. With over 200 years of combined experience, you'll find a team that has written a multitude of books and designed thousands of seminars. You'll also find the only team who can help you meet your personal wealth goals.

Many of the instructors began their stock market experience with virtually no training. For some, trading was a hobby. As they realized that they were able to fulfill their own financial goals, trading became much more. Because our instructors began their trading career as novices, you'll get realistic advice that teaches you the necessary skills to get started. Free of the technical jargon that can confuse many beginners, you'll learn how to make a fortune no matter what the market conditions.

With thousands of satisfied students to date, BetterTrades is an educational company that provides personalized advice. With highly educational classes that will teach you to apply smart trading tactics, you could turn a few hundred dollars into thousands in just a few months. If you're not trading as successfully as you like, it's time to contact BetterTrades.

Better Trades is for those who truly want to learn how to trade in the stock market. After all, why would you use another company whose instructors have never traded when you can work with a faculty that has made its own personal fortune from the techniques offered in each class? Contact BetterTrades today, and start your trading education.

Emini Trading - Margin In Emini Futures

f you are familiar with the margin for stock trading, you know that this is the amount the broker allows you to borrow using your funds as a collateral. Usually, this is 100%, meaning if you hold $10,000 in your account, you can control $20,000 of stock. In some situations, that only pros or semi-pros are allowed to take advantage of, your margin can be greater.

While the margin for trading in stocks is simply your borrowing power for stocks, the margin on futures can be defined as a minimum cash requirement for your futures position. Similar to a performance bond or a good faith deposit, the margin on futures is set by the exchanges based on the corresponding market volatility and can be changed at anytime if this volatility changes. Generally, the margin rates range between 2-15 percent of the value of the futures contract, with most contracts having their margin set around the 5 percent.

Individual brokers can reduce the value of this margin for intraday positions, that is for positions open and close on the same day. Because of this, the margin varies, even widely, from one broker to another, being never higher than the value established by the exchanges that takes into account all kinds of positions, including those held overnight, for which the margin is bound to be higher to compensate for the higher volatility during the times when the trading is not very active.

There are two types of margins in futures: the initial margin and the maintenance margin. The former is the required amount of funds that must be deposited by you before your positions are initiated. The latter is the minimum amount of cash/buying power required in order to keep your position open.

While the initial margin requirements must be met at the time of the trade, the maintenance margin will only become a factor if the account value is decreasing. In the event that the account value falls below the maintenance margin requirement, you will receive a margin call for funds. In this case, you will need to add enough cash to satisfy the initial margin requirement of the position.

In order to illustrate the difference between the initial and the maintenance margin, let us consider the following example.

Suppose you had $5,000 in your futures trading account. You wish to open an intraday position in the E-mini S&P. In order to place this trade, you would need at least $2,250.00 in the account (if you were a customer with the Interactive Brokers, to keep this example realistic), which is the initial margin of one E-mini S&P futures contract set by this broker. Because your account balance exceeds the amount of the initial margin, you would be able to open your position and you would be able to purchase not just one, but even two futures contracts. Suppose though that you purchased only one, to keep this example simple.

Suppose now that after this purchase, the market moved against you causing the account value to fall to $1,700, however unlikely this may be. Since the account value is now less than the maintenance margin of $1,800, you would receive a margin call for $100, the difference between the initial margin and the account value.

domingo, 1 de junho de 2008

Forex Basics: What You Need To Know Before You Start Trading Forex

Forex is an abbreviation of Foreign Exchange, also referred to simply as FX. Forex can also be referred to as the largest financial market in the world because that's what it really is. The volume of transactions that take place on Forex dwarfs the volume of transactions of the US stock markets quite considerably.

The Forex market is the place where currencies are being traded, meaning it is the place where currencies are being sold and bought. Currencies are money that is used as an exchange medium. They can be thought of not only as the goods you are buying, but also as the method with which you're paying for these goods.

Trading currencies means that there are always two simultaneous transactions taking place. If one currency is being bought, another one is also being sold. In the Forex market all transactions occur in real time.

The Forex market is open 24 hours a day, five days a week. Nowadays trading takes place electronically, its activity being centered in four major cities: New York, London, Sydney, and Tokyo. The Forex market is open to individuals over the age of eighteen.

People trade one currency for another in order to make a profit off of this transaction. Profits are made when one is able to predict which currency's value will increase by the end of a set time period. Such periods may be short or long, lasting from minutes to hours to days to months.

While Forex trading may be daunting at first, it really isn’t any more challenging than trading in stocks. It can be easily comprehended without any prior knowledge of finance or economy. Before you start trading it, you need to learn its basics, the most rudimentary of which are provided below.

1. Trading in Forex means trading in currency pairs and takes place by exchanging one element of the pair for another. For this reason, currencies are quoted in pairs. For example, the pair of U.S. Dollar and Japanese Yen can be quoted as USD/JPY equals 105.53, which means that 1 USD can buy 105.53 JPY.

2. The first currency listed in a currency pair is called the base currency. The base currency is usually the U.S. Dollar. Traders generally trade the U.S. Dollar against another currency, which is called the counter currency.

3. When the quote increases, it implies 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 100.33 but is now equal to 105.53, then this means that the dollar has strengthened because 1 USD can now buy 105.53 JPY as opposed to the mere 100.33 JPY it could buy beforehand.

3 Steps to Choosing the Best Forex Software

One thing about trading in the Forex market to be aware of is that a person's success is oftentimes found in the system that they use. The most successful Forex brokers, investors, and traders waste no breath in telling the fledgling player in the Forex market that the success is in the system.

Unfortunately, finding the system that works the best for you is sometimes as difficult as choosing the best Forex software to use when you are actively involved in the foreign currency exchange arena. Here are three steps to follow when it comes time for choosing the best forex software.

Step #1 - Pick the right software to begin with.

Nearly all of the forex software products available on the market offer live online forex trading features, but how will you know which one is the best application for you? The easiest answer to that comes from knowing your needs and level of skill with currency exchange. You need to choose the software that will be the easiest for you to navigate and utilize to the best of your ability. If you have difficulty in understanding how the software operates, you are doomed from the beginning and have spent good money for nothing. You want to find a software application that helps you understand three things:

- how interest rates are applied when they are included in the equation
- the economies involved --- local, national, and international
- the concept of foreign exchange and international trading

Step #2 - Find a software application that employs good security measures.

This should probably be the first step, but all three of these can be construed of equal importance based on your attitude about what they each entail. Before deciding on the software you purchase, consider this feature before even thinking about making a serious mistake. In order for any software to be safe from hackers, the most necessary element is encryption.

That forex trading application should come equipped with 128 bit SSL encryption. It's your only protection against hackers, and you can believe that they are out there en masse when it comes to how much havoc they can wreak on your finances and personal information with online trading involvement. Just remember that your personal data and other personal information (e.g. your account balance, transaction history, etc.) are just as available to the hackers and other "internet freeloaders" as it is to the forex market.

Step #3 - The best software comes with quality customer support features.

It does you absolutely no good to invest in any forex trading software if you can't get support for answering questions as well as tech support. You're going to be somewhat lost at the start to begin with, and will need all the help you can get until you have become familiar enough with things to be comfortable. The best software comes with round-the-clock protection and security features. In addition to this factor, make sure it comes with the following features as well:

-A security system that prohibits unauthorized access to your account
-Daily backups of all your information and transactions
-24 hour maintenance should anything malfunction
-24 hour technical support when you are having related difficulties

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