Currency trading can be very difficult. Even so, it does not have to be. There are some fairly simple techniques and principles that specialist hedgers utilize to simply their trading in what can be a complex industry. For one, do not trade all of the currency pairs, particularly in the beginning. Focus on just one or two like the EUR/USD, GBP/USD, USD/JPY or the USD/CHF.

The forex broker industry started in the 1970’s when the system of backing money with precious metals was eliminated. At present, foreign currencies operate on what is known as floating point. It’s a process that everyone establishes simply how much every currency may be worth depending on supply and demand.

Today, the foreign exchange market as well as brokerage industry is the largest of the financial marketplaces world-wide. It is approximated to average a daily turnover of more than five trillion dollars. It provides a nice opportunity for the individual investor to grab a small part of that activity. The fx trading marketplace is liquid yet can be hugely volatile. This means that you could trade in and out of positions in just a couple of moments. In reality, the forex marketplace is so significant that it can’t be manipulated by the biggest of investment organizations or person helping to make for a genuine supply and demand market.

Fx trading can be performed anywhere there’s a computer, internet access and you have a forex broker account. Customarily, forex brokers are either market makers or non dealing desk. You aren’t getting charged a commission as you would with various other marketplaces like the stock market. The broker earns their money depending on the spread which can be low for small traders and relatively expensive if you are buying and selling huge lots. It’s important to find a trustworthy broker who has very small spreads.

The foreign currency market is accessible twenty four hours Monday (Sunday night for many) through Friday. This makes it feasible to set buying and selling working hours that are easy for you. Nevertheless, the best time to trade is during the London and US periods if you’re a short term trader. Long term traders can place orders anytime during the 24 hour interval.

Akin to just about any vocation, forex trading involves knowledge. Of course, you’ll be able to open a forex broker account and start buying and selling straightaway yet sooner or later you will experience painful losses and therefore education and learning will be a essential component to lessen those losses and eventually become rewarding. Forex trading isn’t easy but if you’re the few that can master it, you can create an extremely pleasant income for yourself.

Much like just about any profession, online forex calls for knowledge. Naturally, it is possible to open a biggest forex broker account and commence investing instantly yet sooner or later you will experience agonizing losses and thus education will be a key compound.

A fx signal allows someone to trade inside the currency markets without the headache of wasting considerable time examining information, info and positions. They supplies anyone with essential information on prime positions as well as other extremely important data. Companies apply numerous methods in sending their forex trading information. These include the usage of websites, sms, direct distribution to your metatrader mt4 broker account, particular software applications, instant messaging, and e-mail.

Typically, fx alerts are usually provided composed of three main components. The entry value, the stop loss, and also the take profit. From there, it will depend on on exactly how much the speculator may wish to examine and alter that information presented.

Fx trading signals keep customers up to date and educated using the most current news and information regarding the currency exchange markets. The benefit of these services would be the fact it’s possible to receive them anywhere you want to: at home, within your car and via your cellular telephone. You don’t even have to be awake or near your computer should they be automated to your metatrader mt4 brokers account.

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In forex trading, the dollar index fell at the start of the session on weaker than expected prints on the ADP employment and ISM non-manufacturing reports. The index located support on the 72.72 level, just before rapidly paring losses to end fractionally higher for the session.

The pullback was basically backed up by a late-day rally in stocks which closed well off the lows and also by forex traders who trashed dollar shorts ahead of tomorrow’s rate decisions and Friday’s employment report. The greenback will probably continue being range bound in between the 72.72 and 73.30 support/resistance levels.

A fast glimpse at the majors sees the yen besting the majors against the greenback as broad based decreases in equities and commodities motivated risk-off trading. Tomorrow’s event risk had investors not willing to keep positions in the sterling, the euro, or the neighboring swissie, all of which wrapped up flat on the day.

EUR/USD forex trading signals strategies: Yet again, the EUR/USD continues to be the range trader’s enjoyment and 1.4750-1.4900 contained things yet again with support on the dip coming from the Portugal bailout validation. It appears like continuing for the next 24 hours ahead of the rate statement as traders proceed to factor in higher rates although patient investors appear to be content to hold back and obtain better levels to buy.

GBP/USD forex strategy signals: As previously mentioned in yesterday’s report, the split of 1.6590 created an extremely bearish signal and on the release of worse than predicted UK PMI which added cold water on likely rate rises tomorrow as well as traders strongly selling GBP in opposition to both USD & EUR. There appears to be support around 1.6440 but sentiment has moved to sell the rally from this point.

USD/JPY forex strategies signal: USD/JPY continues to grind lower as traders remain satisfied selling on any rally. We open the Asia session mid-range and despite the fact that most traders are still calling it lower, individuals not already short from higher up seem to be waiting for better levels to sell and anywhere back near 81.75 appears to be their inclination.

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Foreign exchange is definitely forming up to grow to be one of the premier market sectors in the planet and traders are always in the process of familiarizing their selves with the growth of this sector. From cash conversion to spot trading, from futures dealing to onward trading, from fx to silver, everything occurs under Fx trading. What an individual will need to become profitable is a smart currency trading program. A specialized daily forex trader normally requires a live signals organization that gives accurate positions to ease you in the already frenzied and complicated buying and selling sector.

If you are going to devote your cash you will need to get yourself a reliable forex trading alerts professional who is competent enough to be profitable. Lots of people take on losses and one of the reasons is having an untrustworthy agency whom doesn’t give you the best services.

Those firms would merely lose a customer however you will lose far more, your hard earned money. Your loss will be particularly more than their own as they do not have their cash on the line as you do therefore choose your forex trading signals company using the same dedication you worked to raise your finances.

One thing you need to bear in mind is that you’ll find a great deal of providers on the market and thus it gives you the opportunity to locate the best most trustworthy one that fits your needs rather than adhering to one who you are not more comfortable with.

Fx is not taking part in the lottery; it’s a completely grown sector in which a person proficient enough may make a reasonable profit. Never discontinue to master investing or the market is certain to get the better of you. The more organized that you are, the greater the results will likely be and to secure those results the first step can be to locate a professional alerts company that suits your daily requirements. Learn your market, learn your methods and turn into a devoted trader through skill and you’ll have enough to generate more income than you can imagine in forex trading.

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Learning From The Great Depression

During the 1920s, world economy was hit by an extremely negative event which is nowadays called the Great Depression. Its causes began to become visible after the First World War, and they continued to develop during the following 10 years, period during which the world economy was severely affected. In order to avoid future economic recessions, one must understand the causes and events of this time of unrest. The elements which led to this situation are numerous and intertwined, but they must be well understood in order to avoid another situation like that.

The Great Depression started in the United States in the 1920s. It is the crash of the stock market in new York, on the 29th of October 1929, also known as the Black Tuesday, which marked the beginning of the crisis. The recession began to be felt ever since the early 20s, after World War I finished. The cost of the war was three times larger than tax collections and when government cut spending, the whole economy was affected. So the main causes of this event were over-indebtedness and deflation, with which governments all over the world hardly dealt, despite all the measures taken. The interest rates were also cut, and numerous countries raised the tariffs on imported goods in order to protect the national industries.

As a result, the crisis went out of control and during the following years many banks, firms and factories were closed worldwide. This led to a high rate of unemployment and furthermore, many people lost their houses. Investors lost money and the GNP decreased year by year. There were also political consequences of the recession: in Germany, Adolf Hitler became more and more popular and Japan invaded China in order to open mines in Manchuria and develop its industry. Eventually, these new types of governments and actions led to the Second World War, which had in its turn negative effects on world’s history.

The recession was brought to a halt during the term of Franklin Roosevelt, but recent economic events showed that modern societies are still sensitive. So what to do in order to avoid another crisis? One solution is to adhere to Gold Standard and start investing in gold.

However, once with the term of Franklin Roosevelt, the effects of the Great Depression began to be reduced, but the recent economic crisis proved that we are still vulnerable and unable to predict future economic crisis. In order to avoid another economic recession, or time of upheaval, many investors prefer investing in gold rather than currencies, for gold is a safer and more stable currency, which is hardly affected by drops in the value of national currencies.

Investment in gold is the safest and in order to Buy Gold, the easiest option is to purchase coins and bars.

Gold price continues its steady march upwards

The gold price kicked off this year with a fall.
It dropped from $1422 / oz, down to a low of $1318 / oz by late January.

This was a fall of just 7.3%, but still this gave all the gold bears something to rant about for a few weeks: ‘It’s the end of the gold bull market’, ‘I told you it was in a bubble’, and so on.

We’ve heard it all before, and we can be sure to hear it all again.
But the fall they were all getting so excited about was really just another tiny dip on the way up.

Take a look at the top right hand side of the two-year gold chart below.

That little pull-back was what all the fuss was about…..

Gold price continues its steady march upwards

http://goldprice.org/charts/history/gold_2_year_o_usd.png?0.8974633984098723
Source: Goldprice.com

More to the point, you can see that the gold price has already bounced since then! It is on its way up already, climbing 4% in the last few weeks. It didn’t take long.

Media reports also focused on the amount of gold being withdrawn from the gold ETF (GOLD). This is the world’s largest gold exchange traded fund (ETF), and apparently holds around 40 million ounces of gold for investors.

But when these investors cashed in on a few million ounces of gold last month, the media were citing it as evidence of the coming end of the gold market’s epic run.

But again, take a step back. This few million ounces was but a fraction of the amount of gold on their books. And moreover, this drop is no worse than ones we have seen in the last few years.

Recent withdrawals from the GOLD ETF barely even register in the big picture

etf_withdrawls.png
Source: Credit Suisse
Most reporters would have you believe that the GOLD ETF is the only part of the gold market that you need to look at.

But it is just a small part of the puzzle.

CHINA is soon to be the world’s largest gold market.

With four gold recommendations in Diggers and Drillers (which are up 85% on average), it is what’s  been happening in China’s gold market that makes me sleep well at night.

This has always been the main reason I am bullish on gold: the potential demand from the hundreds of millions of newly wealthy, Chinese middle classes.

Not to mention the fact that the Chinese government are doing all they can to promote gold ownership. With a long cultural history of personal gold ownership, this is not a hard sell.

Gold demand in China has now gone ballistic.

It imported 6.7 million ounces in just the first ten months of last year! Compare that to 1.4 million ounces in the full twelve months of 2009.

It’s not just gold either.

Last year China imported 120 million ounces of silver. The year before that it was just 30 million ounces of silver. A 300% increase!
It’s good to know this as another two of the Diggers and Drillers tips are silver plays.  These are up 42% on average, with the most recent one just getting going now.  (You can get my latest research, and take a test drive of my service by clicking here )
Last week I managed to get my hands on some current data for Shanghai gold trading volumes. This is a market that has pretty much started from scratch just a few years ago, but is already now going at full tilt.

It’s hungrily vacuuming up any gold that US investors are silly enough to liberate.

Shanghai Gold Exchange volumes climbing last six years

China_gold.png
Source: ANZ commodity research
There are many days where 30million ounces have changed hands, and the 12 month rolling average is now closing in on 20 million ounces daily. This is one busy market.

So with this kind of growing demand from China, it really is hard to see the gold price falling very far, for very long, in the foreseeable future!

The fact is that for all the media coverage of gold, only a fraction of global investment assets are tied up in gold and gold stocks. It’s just a fraction-of-a-fraction of the investible universe.

The thin bar on the bottom right of the chart below is what we are talking about.

Gold is still a small fish in a big pond, for now anyway…

gold_as_percent.png
Source: Barrick
Maybe this is the real reason why so few commentators understand the gold market. Because so few are genuinely involved with it!

There are many willing to venture an opinion, but few who really know the gold market. Check out Sprott Asset Management’s commentary to hear it from some of the best.

The good news is that until gold becomes main-stream, there is still a huge opportunity there. When the media start saying gold is good, that’s when I’ll be thinking about selling out!

For the foreseeable future though, in the words of another one of the world’s best gold commentators Marc Faber: ‘The risk is really not to own any precious metals at all’.

Regards,

Dr.Alex Cowie
for Money Morning Australia

The Hidden Side Of The Dollar Free Fall

The Federal Reserve and the European Central Bank are the two bodies which have the power to decide the global economical trends and thus they are the bodies that are blamed for the decline in value of the U.S dollar. It is them whom we should turn to when we try to find an answer regarding the real truth about the dollar.

The two bodies decide on the policies to be applied when it comes to the U. S. dollar, but their apparent decisions are not always sustained by reality. The strong dollar policy is contradicted by the free fall of the currency, which has decisive impact on the economical market, influencing everything, from higher prices for all commodities, to even higher price of gold, for instance.

The question in anyone’s mind is whether the crisis the dollar is experiencing nowadays is real, or it is willingly induced. There are analysts who point out that the U.S. seem to follow the pattern developed by China with regards to the Chinese national currency, the yuan. China has been several times accused of keeping their yuan devalued, which, in a long run, seems to have helped China in turning into the biggest world exporter. It is no secret that the U.S. want that ‘title’ back and one approached might be the devaluation of the dollar.

However, this move does not seem to have the desired impact, but rather it seems to turn into a loose/ loose situation. On the one hand, this free fall of the dollar influences the inflation and pushes the prices of the commodities at levels higher than ever. At the same time, even the costs of the exporters will have to suffer from the increase, pushing thus the whole situation to a dead end.

In such circumstances, investing in a national currency, be it the strongest available may look like a suicidal gesture. This is why, the number of people investing in gold has boomed. Indeed, the ascendant trend that gold is experiencing together with the large variety of products available, have made gold a solid and handy means of investment to compensate the chaotic movement of the dollar.

For instance, one can opt for gold bullion, with their intrinsic value, or go for a double standard means and buy gold sovereigns coins.

CALGARY, ALBERTA-(Marketwire – Jan. 21, 2011) – Antioquia Gold Inc. (TSX VENTURE:AGD) (“Antioquia”) is pleased to announce that it has agreed to the terms of a non-brokered private placement (“Private Placement”) for up to 19,455,495 common shares of Antioquia at a price of Cdn$0.40 per common share for gross proceeds to Antioquia of up to Cdn$7,782,198. The proceeds of the private placement will be used primarily to accelerate exploration efforts at Antioquia’s principal asset the Cisneros Project located 70 kilometres northeast of Medellin in the Department of Antioquia, Colombia.

The Private Placement will be subscribed by Desafio Minero S.A.C. (“Desafio”) which previously completed a non-brokered offering and entered into a Strategic Alliance Agreement with Antioquia on August 13, 2010. Closing of the Private Placement is expected to occur on or before January 31, 2011, and is subject to acceptance by applicable securities regulatory authorities including the TSX Venture Exchange.

Desafio is the exploration arm of Consorcio Minero Horizonte S.A. (“Horizonte”), the fifth largest gold producer and second largest underground gold producer in Peru, producing approximately 200,000 ounces of gold in 2010. Horizonte and Desafio are both privately held and controlled by the Navarro-Grau Group (“Group”). In addition to its producing mines, the Group has a strong pipeline of projects at the exploration and development stage, and is actively involved in expanding its operational footprint and developing new mining opportunities in Peru and other parts of Latin America.

The funds from the Private Placement will be used to aggressively accelerate the current surface exploration program to expand the drill targets and potential gold bearing structures. Development of two underground tunnels will also be initiated to facilitate further drilling on the Guayabito and La Manuela structures and provide data for grade control and resource estimation and to facilitate bulk samples for future metallurgical test work.

Richard Thibault, President and CEO of Antioquia, commented, “The investment by Desafio provides Antioquia with the funds needed to accelerate the exploration program at the Cisneros Project. We are also fortunate to be able to draw on Horizonte’s 32 years of experience in the exploration, development and operation of this type of underground narrow-vein deposit. This experience will become increasingly important as the Cisneros project passes onto development and production.”

Felix Navarro-Grau Hurtado, a Board Director of Desafio, commented, “We believe that this participation demonstrates a further endorsement of Antioquia and the Cisneros Project by Desafio; and our desire to strengthen our relationship and cooperation to continue advancing the exploration programs.”

Antioquia Gold Inc.

Antioquia is a precious metal exploration company with projects in Colombia since 2007. Antioquia’s principal asset, which is being actively explored, is its Cisneros Project, located 70 km northeast of Medellin in the Department of Antioquia, Colombia. At the Cisneros Project the Company has drilled over 13,300 metres, conducted extensive geophysical programs and is well versed in the understanding of the deposit type and the project’s path to production. The Cisneros Project consists of 5,630 hectares and forms the nucleus of the Company’s 37,500-hectare land package located throughout Colombia.

Learn how to buy gold and make great money doing it! Gold is the best investment in ANY economy!

Easy Forex Intraday Currency Trader Report

The currency trading sector had been muddled on Tuesday with no apparent themes surfacing and choppy trading. The yen and Swiss franc ended up being under performers caused by a small theme favoring higher risk currencies. The Canadian dollar was the best performing G10 currency alongside the Scandinavian crosses as oil prices rallied. The Australian dollar was the worst performer as floods still ravage the continent.

The developing story is the euro previous to a vital bond auction in Portugal on Wednesday. The Treasury there plans to sell between 750 million and 1.25 billion of 4-9 year bonds subsequent to rumors produced that it will require to tap into the European bailout fund.

Portuguese political figures sprang out to enlist in all-out endeavours in order to shore up confidence in advance of the sale. Prime Minister Jose Socrates said the nation doesn’t need a bailout. “Portugal will not request financial aid for the simple reason that it’s not necessary,” he said. Later, a leaked story appeared in the Portuguese press hinting the 2010 government budget deficit was under the 7.3% objective.

Japanese officials also appeared to offer support to the European bond market. In an announcement most-likely timed to match with the Portuguese sale, Minister of Finance Yoshihiko Noda stated Japan will certainly re-invest a portion of its euro FX reserves in joint European debt to be released later on this month.

The timing for the announcements stinks of desperation soon after insurance against a Portuguese default struck record levels early on this week. The 9-year Portuguese benchmark bond is at the moment yielding 6.8% just after teasing with 7% on Monday. A yield higher than 7% might likely provoke a rout on the euro and set-up a alarming Spanish auction on Thursday.

We suppose Portugal will pull a few strings to be able to make sure the auction yield is around to what’s predicted. In that case, the yields in the hours and days after the sale can prove telling. The outcomes will be issued approximately 5:30 a.m. ET (1030 GMT). Content provided by AroundFX.com

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Is the Euro marching toward currency oblivion?

From Dan Denning in St.Kilda:

–First the Aussie dollar reaches parity with the U.S. dollar. Now a new high against the Euro? Is double parity possible? Come to think of it, is there a currency that isn’t invited to this Aussie parity party?

–Your editor thumbed through the pages of the Internet this morning to find that the Aussie dollar will buy you 75 centimes, or three quarters of one euro. That’s an all-time high for the Aussie. Is it commodity-backed strength? Or is the Euro marching toward currency oblivion? For more on the story we head to the Iberian Peninsula.

–The latest object of speculation in Europe’s debt woes is Spain, both its government debt AND its banks. Ratings agency Moody’s put the Spanish government on debt-watch last week. Moody’s said Spain would face a “challenging environment” refinancing its debt in a year when so many other countries are putting their hand out for more gruel.

–With its banks on notice, the inevitable investigation of Spain’s debt bubble will begin. The evidence of the misallocated credit will be splashed across the financial pages. And people will wonder how Europe’s sixth largest economy got into so much trouble. It’s not that hard to figure out.

— Spain simply has a bit of China and America and Ireland and Iceland in it. In this New York Times article, you’ll learn that Spain has its own little ghost towns of empty subdivisions and houses. Artificially low interest rates in Spain caused a borrowing and building boom. You got a lot of real economic activity (building and construction) being driven by fake demand (credit).

–But if you’re thinking this is more good news for countries that are not in Euopre, it may not be a slam dunk to assume that what’s bad for Europe and America is good for emerging markets. Our friend Dr. Marc Faber says to beware of a 20-30% fall in emerging market stock markets. He reckons the worries about Europe are enough to spook investors and put them on the sidelines until the smoke clears.

–The trouble with the current economic battlespace is that the smoke never really clears. The fog of the global currency war obscures real values and distorts what you see. Sometimes the wind shifts and it clears the picture up a bit. But right now, there are a lot of obvious losers and not so many obvious winners.

–The most obvious “stayer” in the great currency debasement game is gold. Of course it’s probably not right to call gold a “stayer” in horse racing terms. Gold isn’t moving at all (it’s heavy). Everything moves relative to it. If you want to be unmoved, you own gold.
For The Daily Reckoning Australia

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