Tag Archive | "Financial"

An Impending Financial Earthquake Is Coming. Is Your Stock Portfolio Prepared?

An Impending Financial Earthquake Is Coming. Is Your Stock Portfolio Prepared?

Your Investment Choices Now Will Determine Whether You Lose Great Wealth or Build Great Wealth in the Near Future.

Within the next 5 to 10 years, there is an extremely strong possibility that a Peak Investment Crisis will hit all regions of the world. I uncovered the likelihood for this crisis because my investment strategies do not rely on crunching numbers or charting technical patterns, but on uncovering money trails among the most powerful political, financial and corporate institutions in the world. Statistics and numbers are constantly manipulated and are frequently less than truthful. That’s why millions of investors that rely solely on fundamental analysis never build wealth.

However, the money trail does not lie. How you position your portfolio now will determine whether you will build wealth beyond your greatest expectations or whether you will have to postpone retirement and struggle for the next couple of decades.

Did you know that immediately before the Great Depression hit the United States, that U.S. stock markets had skyrocketed for about a decade straight and that unemployment was less than 1%? Did you know that immediately prior to the 1997 Asian Financial Crisis that hit the Southeast Asian “tigers”, and in particular, Indonesia, South Korea and Thailand, South East Asian economies were booming with high single to low double-digit growth rates as foreign investment flooded these markets?

In fact, immediately prior to the Great Depression, the outlook for the U.S. economy, at least on the surface, could not possibly have been better back then. But when the tide turned, investors got smacked in the face by a 2,000-pound bear and lost their fortunes overnight. And in Thailand, immediately prior to 1997, economic conditions were so rosy that the overall economic giddiness sparked a real estate boom, the evidence of which can still be seen today, more than a full decade later.

However, despite everyone’s giddiness back then, when the crisis hit, Thai currency lost more than 50% of its value in just six months and businesses failed left and right! Just drive through Bangkok, and you will easily spot empty shells of half-constructed office buildings and luxury residential buildings sprinkled throughout the city. When the crisis hit and funds to complete them dried up, these yet unfinished projects had to be abandoned

In reality, though the conditions that caused both of these crises had been developing steam for many years, all the average investor saw was the result, the loud crash that occurred when the steam blew the head gasket. In both instances, though the great majority of people lost massive amounts of wealth, the very savviest of investors actually built great wealth during these times.

And just like during past economic crises, this Peak Investment Crisis will undoubtedly present one of the best opportunities of our lifetime for savvy investors to also build great wealth in the near future. Clearly, an economic earthquake of great magnitude can happen again, and when many indicators below the surface point to such an occurrence as an extremely high possibility, only the most unwise of investors would do nothing to prepare for it. In fact, I would argue that this brewing Peak Investment Crisis is even more dangerous than either of the two financial crises I have previously mentioned because this one is more likely to affect the global economy on a much more significant scale.

Why?

Since 1997, hedge funds and financial derivative instruments have exploded, growing into cumulative market sizes that exceed hundreds of trillions of dollars. During the 1997 crisis, the total global scale of these financial instruments was like a baby monkey back then compared to their King Kong-size today. This explosive growth in financial instruments has linked asset classes, industries, and global markets like never before, allowing a fiscal crisis in one region to have a much more pronounced domino effect in global markets today. So whereby in the past, a small rock that dropped on top of a snowdrift might have caused a local financial disaster that trickled down to other economies, this same rock today is capable of creating an epic global financial avalanche. And what makes this crisis near inevitable is that the rock that is about to drop is no small stone, but instead a massive boulder.

How to Ensure that You Build a Great Fortune in the Stock Market Instead of Losing it When This Crisis Hits

For the reasons discussed in this article, 90% of investors will fall into one of two categories over the next 5 to 10 years and beyond. They will either build great wealth or lose much of their wealth. Due to the global scale of this imminent crisis, there will be very few investors that won’t fall into one of the two extreme categories of building great wealth or being mired in financial catastrophe. How do you ensure that you are on the proper side of the fence?

The answer is to manage your own money, period. No ifs, ands, or buts.

Handing your money to a global investment firm is fine if you have already built your wealth and are no longer interested in continuing to build it, but even then, you are still likely to lose great amounts of wealth when this crisis hits. And what if this crisis never materializes? Even though we strongly believe that conditions today make this crisis near inevitable, even if by some miraculous intervention of various world governments, it does not happen, learning how to manage your own money will still give you a great chance of achieving 20% to 25% or more annual returns year after year. And if this crisis materializes as we expect, well then, during this time, your returns should leave 20% to 25% annual returns in the dust.

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Economic Data And Its Influence On The Financial Markets

Economic Data And Its Influence On The Financial Markets

The things which contribute to price levels and action in the financial markets are numerous and diverse, and their influences can vary through time, and across different markets. This article identifies the different types of Economic Data influences and the role they play.

There are two ways economic information can influence prices. The first is in the macro sense. Macroeconomic inputs include:

Interest Rates
Economic Growth (GDP)
Government Budget Surpluses/Deficits
Trade Balances
Commodity Prices
Relative Currency Exchanges Rates
Inflation
Corporate Earnings (both for individual companies and the broad collection)

These elements will generally all have long-term inputs in to the pricing of any given market. They do not tend to move in sharp, dramatic fashion, so their influences also tend to be seen over longer periods of time.

That said, the release of economic data related to the above can be seen to have serious impact in the short-term activity in the markets. This comes primarily in the form of data releases. Some of the most important are:

Employment Data
Trade Data
GDP growth figures
Consumer & Producer Inflation rates
Retail and Wholesale Sales
Confidence & Sentiment Readings (U. Michigan survey, etc.)
Income & Spending
Production
Interest Rate policy decisions
Earnings releases

The markets can react in very, very dramatic fashion to these releases when they are out of line with expectations. The foreign exchange market, namely the EUR/USD exchange rate, provides a striking example.

On one Friday morning at 8:30 Eastern the monthly Non-Farm Payrolls report hit the wires. This report (released on the first Friday of each month) probably provides the most short-term volatility across all market sectors of any regular economic release. When the data comes in well off of market expectations, fireworks can ensue, as was the case in the example. Over the course of about 2-3 minutes EUR/USD fell more than 20 pips, turned around and rose about 60 pips, then fell back down to near where it had been before the data was announced (a pip being 1/10,000 of a Dollar). It then proceeded to run nearly 100 pips higher in fairly steady fashion over the course of the next hour.

Here is another example, this time of T-Bond futures.

When those payroll figures were released at 8:30 the market dropped more than two full points. One point on the T-Bond futures contract is worth 00, so each contract fell more than 00 in about two minutes. Consider that the margin on a contract at the time was probably around 00. That means a trader could have lost more than 80% on the trade in the blink of an eye.

It is also important to understand that in the futures pits such data events often result in fast market conditions. This means that the action is so hectic that there may literally be trading going on at several different prices in different parts of the pit. This is a risk of having open positions at the time of a major news release. The market may snap back fairly quickly, as in the chart above, but in the meantime the trader’s positions may have been liquidated on a stop order at a substantial loss.

Fortunately, all major economic releases are well documented. They are done on a pre-announced calendar which is readily available on any number of web sites, and of course in the business news media. In the vast majority of cases, one can also find out ahead of time from any number of sources what the expectations are for the release.

Foreknowledge of pending data events may not prevent losses which may result from unexpected figures. It will, however, allow the trader to recognize and understand when risks are increased. Make sure, especially if you are a short-term trader, to know what data is coming out. It can make a difference in your performance.

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Market Timing – A Danger to Your Financial Success

Market Timing – A Danger to Your Financial Success

Market timing are the two most dangerous words in investing – especially when practiced by novice traders.

Market timing is the strategy of attempting to predict future price movements through use of various fundamental and technical analysis tools – and when used to predict trending moves, ends in disaster, and losses.

Many investors feel that market timing is the same as trend following and the two go hand in hand, they don’t.

Trend Following and Market Timing

Trend Followers REACT to market movement and act on these moves when they occur.

Traders who believe in Market Timing think they can PREDICT turning points in advance and buy at a low or sell at a high.

This is impossible to do; no one can predict the market.

Market timing advocates “buy low and sell high” but this is not the way to make money from trend following.

The Real aim of Trend Following

To increase your chances of success in trend following you need to wait for confirmation of a move and for a trend to develop.

You are going to miss the start of the trend and not buy the bottom or sell the top, but this is hindsight.

By waiting for the confirmation for the trend to develop, the probability of the trend continuing and you getting a proportion of the profits are vastly increased.

The real way to make money don’t predict wait for confirmation!

The real way to make money is by “buying high and selling higher” and “selling low and buying lower” You will have far less losses this way and still make healthy profits than if you try to predict with market timing techniques.

Market timing is doomed to failure – as the market never does exactly what we expect, and no scientific law governs the market (despite what the followers of predictive theories such as Gann and Elliott wave might tell you).

We are only dealing with probabilities – not certainties.

Trading is an odds game and your entry and exit levels from the market need to reflect this.

This means trading only when the trend is underway and likely to continue.

Dealing with Volatility

When dealing with market timing many traders are attracted to it as they feel it controls risk.

One of the major problems for traders is when they enter a trend in motion and they get stopped out.

The most effective way of entering a trend is a breakout method, but very often the trade dips back stops out the trader and then goes back they way they thought, but there is a solution:

Enter the Trade with Options

Options give you staying power to ride out short-term pullbacks against you, but you need to know how to use them correctly and this means:

1. Buying in the money or close to the money options 2. Make sure you have plenty of time value on your side

This will increase your chances of success dramatically; give you staying power, limited risk and unlimited gains!

The best Method, Market and Vehicle for Trading

The best method to get in on a trend is a breakout method (read our other articles for more information on why) the best vehicle to control and manage risk on entry is options.

Finally, the best markets with the best trends to lock into for profit are:

The global FOREX markets, all the major currencies offer great long-term trends, many of which last for years.

These trends last so long that you can forget trying to predict with market timing and just take a proportion of the trend, which will still give you big profits over the longer term.

As you can see market timing is misunderstood and has nothing to do with making money from trend following and actually creates risk, rather than reducing it.

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Search For Financial Independence Using The Following FOREX Trading Tips!

Search For Financial Independence Using The Following FOREX Trading Tips!

Trading Forex could be the scariest thing you have ever done or just another day in your life. There is no quick fix method to making it in Forex. The key is to utilize any and all advice you can get. The tips and ideas you will see here are for your benefit and should be used wisely.

In order to make money in foreign exchange trading, it is necessary to keep your emotions in check. Do not do a trade if you are excited, nervous or angry because this will prevent you from making logical decisions. If you are experiencing these emotions, it is best to walk away and trade when you have a clear mind.

There’s an old adage that warns you to practice what you preach, and this is very true for the Forex market. Most people tell themselves that they’re going to be responsible and trade only what they can afford. Make sure you listen to this advice. Just because you’re profiting doesn’t mean you shouldn’t stick to the old plan you laid out.

Though many people want instant success in the foreign exchange market, success from trading does not happen overnight. The foreign exchange market is all about perseverance and patience. It is important to remember to never give up, and never risk what you cannot afford to lose in the foreign exchange market.

One of the best tips when dealing with forex is to really understand your needs and know yourself. It is important for you to understand what you are trying to accomplish and plan how you are going to accomplish your goals. Whether you are new to forex or a season veteran, understanding yourself and your habits is key.

Trade when the markets are closed, if possible. This eliminates all emotional urges and makes you focus on your plan and your overall Forex goals. If you trade when the markets are closed you can base your decisions on facts and probabilities instead of focusing on what others are doing.

If you are going to begin trading Forex in the hopes of making money, you need to know yourself. You must understand your risk tolerance and your personal needs. You must analyze what your personal financial goals are in relation to trading Forex. To know the market you muse know yourself.

A good strategy to use to gain money in the foreign exchange market is to choose a day for trading. It is a conventional rule not to trade on Mondays because it is when the market starts, and it is when the currency is unpredictable. Good days to trade are Tuesdays, Wednesdays, and Thursdays.

Join forums dedicated to currency exchange and participate in forum contests. Participating in contests with other traders engages your mind, challenges your assumptions and methods, and thus makes you a better trader. Broadening your horizons by making trades according to rules dictated by a fellow trader helps you learn more about trading and improves your level of confidence.

Now you have some useful information to help in your trading efforts. Remember that this advice is only useful if you incorporate it into your game plan. Failing sometimes in Forex is bound to happen, however, failing to make use of good advice is an easy way to fail consistently.

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Search For Financial Independence Utilizing The Following FOREX Trading Tips! (2)

Search For Financial Independence Utilizing The Following FOREX Trading Tips!

Even though there are numerous financial markets plus stock-trading platforms accessible through the internet, Forex is above plus away, the best. Maybe it’s that trillions of $ exchange hands daily. Or possibly, it’s to receive inside with just a some 100 $ . Whatever draws we to Forex, always employ these secrets to understand regarding the marketplace before we risk.

You are able to employ contingent plus parent orders to aid we set up the whole trade. It usually aid we set up automatic leave plus entry points which assists with all the risk administration aspect of trading. This might equally safeguard possible income from being lost by assisting we enter plus leave the marketplace at set costs.

To open a forex account, you need a bank account info plus the social safety quantity. You should trust the broker you may be selecting enough to supply this info. And remember which this moreover signifies the IRS may learn regarding the income which we created from forex.

Be certain to do we analysis plus complete a complete analysis before generating any moves inside Forex trading. Any moves which are not carefully considered are virtually foolish plus will cause financial catastrophe for really regarding anybody. Do not risk with the revenue, analysis plus analyze before doing anything.

Never trade simply because we recognize somebody else is. Another trader will have different factors or insights than we, plus they can be trading inside a different method than we think. Just considering somebody else dives into a trade refuses to indicate you need to. Always do the analysis before we consider after the crowd.

An significant tip whenever trading forex is to guarantee which we lay out a program initially. This really is significant considering you ought to be completely aware of the marketplace you’re using, in addition to, your concerns. There are failure, should you never understand the dangers included before trading. We should compare the objectives to the status of the marketplace plus function from there.

Whenever participating inside forex currency trading, you need to keep in your mind it takes longer than a day for any real action to happen. The market fluctuates constantly; consequently, it will take several time before a trades come to fruition. As the old suggesting goes, “Rome wasn’t integrated a day.”

In purchase to create funds plus succeed inside the foreign exchange marketplace it really is needed for we to learn whenever to stop. This is done by setting a objective plus stop when this might be met. The most commonly known mistake inside trading are trades based about greed inside that the trader keeps trading plus loses all of the profit he might have had.

Whatever has brought we to Forex, always utilize those same motivating factors to motivate we to understand how to trade, also. It’s not enough only to create an account here. If you hope to win inside the lengthy run, you need the tricks we learned above. Don’t forget to utilize them where relevant.

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Hyperdrive The Way to Financial Freedom

Hyperdrive The Way to Financial Freedom

Many persons need financial flexibility yet are unwilling to place forth the effort to receive it. For them, the road has too various bends as well as the distance appears too far away. And it’s true – without a systematic method of getting there – many are forced to provide up. This post introduces a sensible program which anyone will understand plus apply to get going about their road to financial flexibility.

A “system” is defined because “a process or procedure for getting an objective”; for illustration, “She implemented a program which enabled her to achieve her financial objectives.” In the context, we’ll discuss a easy straight-forward program which straightens the road plus lights the method to a financial versatility.

The expression “foreign currency exchange” appears daunting to the uninitiated. However it was going about for thousands of years. Those which travel to additional nations frequently exchange their currency for another. Today, currency is purchased plus available conveniently plus electronically, from the house computer. Then, we too may understand how to create funds – possibly many it – whilst participating inside the foreign currency exchange (FOREX).

Accomplished writer plus entrepreneur Robert G. Allen, inside his book “Multiple Streams of Money,” discusses the value of compounding one’s cash inside purchase to achieve riches. FOREX enables you to promptly compound, for illustration, turning 0 into ,000 inside because small because 6 months, should you understand how to securely do it.

Why select FOREX because the basis of the program for financial achievement?

1) A FOREX program is definable. There are the hands about it.

2) You are able to begin understanding without spending anything. When we understand a some terms, you are about the method. You are able to then add to a knowledge base over the method.

3) Unlike conventional companies, there is extremely small overhead. With FOREX, there is not a stock to manage plus no employees to deal with.

4) The initial capital investment is because small because 0.

5) You are able to immediately compound the income, should you understand how to securely do it.

6) It doesn’t need to take a great deal of time. Many individuals just spend a some hours every week.

7) The FOREX marketplace is really fluid, with trillions of $ exchanged daily. On its slowest day, dollar amount found on the FOREX marketplace dwarfs which of the biggest US stock exchanges, combined. We won’t have difficulty placing purchase.
8) Once setup, you are able to create revenue from really about anywhere. Regarding all we require is a computer with web access (plus naturally, a sensible program to aid guide you).

9) Other individuals are lucrative at foreign currency exchange. You are able to be too!

While there are numerous paths to financial achievement, the FOREX method could lead we to your individual achievement. Learn regarding this method, plus you are able to succeed.

Jim McCabe

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5 Factors We Must Do If We Want To Attain Financial Freedom Through Forex Trading

5 Factors We Must Do If We Want To Attain Financial Freedom Through Forex Trading

With the amazing development of the forex marketplace, you’ll see an astounding amount of traders lose all their cash. Unfortunately, they haven’t followed the easy methods I have laid out for we. Go by these procedures plus provide oneself the best chance to achieve a objectives.

1. Get Faith In Yourself

To reach the amount of elite forex trader, you need to trust inside oneself plus a forex currency trading knowledge. You need to be ready to create all the trading decisions, rather of relying about somebody else’s thoughts or ability (or shortage of). Needless to say, you’ll make oneself completely before each endangering any revenue.

2. Accept The Learning Curve

Unless you may be a seasoned trader, you’ll lose revenue trading the Forex marketplace. This really is a close certainty. I don’t state this to speak we from trading. In truth, very the opposite. We is trading against others which fall for this fact day inside plus day out. We, yet, won’t risk a dime till we have learned the abilities you ought to create funds trading the forex.

3. Decide What Type of Trader We Are

There are numerous techniques to trade the forex. They vary from surprisingly active to truly individual. You should choose that fashion matches we ideal. The right time to understand this regarding oneself is whilst you may be trading a demo account. There is not any have to permit the understanding curve to expense we cash.

4. Get Educated

Education is the shortest path to elite forex currency trading. Regardless of the ultimate objectives, you’ll reach them faster with a awesome forex currency trading knowledge. Take some time to review different choices before selecting that to trust with the forex currency trading knowledge requirements. A forex seminar usually assist reduce a understanding curve dramatically.

5. Continue to Get Educated

In purchase to achieve plus retain elite forex currency trading abilities, you need to consistently be adding to we knowledge base. Your knowledge must not end. In truth, among the key points to think about inside an elite forex currency trading course is continuous knowledge. It’s nice to have an continuous relationship with all the person/people assisting we to achieve the objectives.

What separates an elite forex trader from all others is their want plus ability to be independent. Many traders are prepared to adhere to data, systems, tips, or anything else you might call them. By taking this approach, nevertheless, these traders are just because wise because the folks they follow.

An elite forex trader may lead. Their decisions is calculated plus analyzed to close excellence. They makes decisions without hesitation, plus handle the development of their account inside a predetermined, smart fashion. Take the trading to their level and you may not look back.

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What Is Forex Trading – An Introduction To Foreign Exchange Currency Trading

What Is Forex Trading forexsecretsx.com – Learn The Secrets To Profitable Forex Trading From A Pro Trader With Over 25 yrs Experience In The Markets. In This Video We Look At The Foreign Exchange and Currency Markets And What Forex Trading Is. You can also watch this video at youtu.be

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Forex Trading

www.etoro.com – (min deposit : $50) Sign up with link and use the practice account before using real money if you like.

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Weekly Gold and Silver Report for Aug 17, 2012; What If Bond Prices Collapse!

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Forex Strategies

Trade:Forex, Oil and Gold

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