The Yuan can yield tremendous profits to investors if it rises against the dollar. The article below will discuss fully about the subject.
China's trade surplus has been a sore thumb with the American government over the past few years. The Americans believe that their massive trade deficit with China is fuelled by a cheap Yuan policy which the Chinese government is determined to pursue in order to keep its economy humming at break neck speeds.
In order to keep the Yuan weak, the government has been mopping up dollars at a frantic pace. This has made China the country with the most foreign reserves, now topping over $1.2trillion. This is equivalent to half it's GDP and will easily accommodate over one year of imports- which is far higher than the acceptable four months.
The question is- can the Chinese accept a revaluation of the Yuan to more acceptable levels?
The communist government is terrified of social disorder. Its only claim to legitimacy is the fast economic growth that has lifted hundreds of millions out poverty over the past two decades especially in the last six years.
One of its primary tools of achieving fast growth is the weak Yuan policy which has created and sustained a manufacturing and export boom which in turn as lifted growth to dizzying levels.
Unfortunately for the government however, there is still discontent. There are over a 100million surplus farm hands seeking work and unemployment still exist in the cities.
Also large parts of China still remain very poor especially the hinterland.
To add to this, many farmers in the rural areas where most of them are based complain about official neglect and corruption.
China thus believes it still needs years of fast economic growth to arrest the above mentioned problems.
However, things are not as simple as they seem.
First and foremost, the weak Yuan which is tied to the dollar is causing liquidity to rise to dangerous levels within the economy. This is in turn swelling demand to horrendous levels. And deflation has now been replaced by inflation. Too high a level of inflation may bring- wait a minute- social disorder. Many analysts speculate that high inflation was perhaps the true trigger for the Tiananmen tragedy.
From high inflation perspective alone, the Yuan needs to strengthen
Anyway, the government has begun tightening credit, always preferring to use crude monetary instruments such as restricting the quantity of loans flowing to some certain sectors especially real estate and steel which are poster children of the boom.
This is working to slow down growth both only slightly.
Growth can only be moderated if the Yuan rises. And the truth is that a rise will not lead to a downturn, but at most - a very soft landing. Growth may slow to 8% which is not bad but less than the double digit figures it has been enjoying of late.
The government has since 2005 permitted the Yuan to appreciate and it has consequent gone from Y8.28/$1 TO 7.71/$1. And interestingly enough, this did not cool the economy.
This indicates that further strengthening of the currency may not in reality have a dampening effect on growth.
The question now is- to what level must the Yuan rise before it reaches its real value?
Tying it with a basket of other currencies, the value will need to rise to between 6.50 and 7Yuan to the U.S currency. Whether the government will have the stomach for it is another matter.
The economy can still grow at 8% annually.
The probability of such a rate appreciation taking place may be plausible bearing in mind that the government has allowed the currency to appreciate slowly against the dollar in particular.
For the time being, however, I foresee the currency hitting 7.40Yuan to a $1 within the year or at the least 7.50.
This portends a fat profit for any trader that decides to make a move now. It may be one of the best pickings for the year.
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
Friday, April 27, 2007
Forex Trading:The Big Bucks Lurking In Booming Economies
Many skilled traders are never fooled by booming economies. The reason why is that many of these economies may not be as sound as they seem.
To an unskilled eye or to those that have a poor understanding of how economies work, many are easily taken in that a boom may even be long lasting.
However, to the trained eye, what matters is the data underlying these growth rates.
Let us take for example the world's largest economy, the United States.
In the 1990's, the American economy had its second longest running post-war expansion. Things were so good that the unemployment rate dipped below 4.6% making labor so scarce that many companies had to forgo expansion plans due to a shortage of workers.
Not only was growth strong, but inflation stayed low. This was quite strange and many predicted there was a new economic order at America's doorstep.
The growth however was initially fuelled by cheap money and fuelled by a technology boom characterized by massive investments in the IT sector particularly internet shares. A commentator called the funds flowing into the stock market then as the"100year flood"
Internet share prices truly were defying gravity with stocks making virtually no profits at all valued at billions of dollars. To most markets watchers, this was nothing strange when many remembered the spectacular results hitherto hardware and software minnows such Dell, Microsoft and Apple had delivered to investors.
The dollar too was strong with the exchange hovering around $1/E1.20. Funds were pouring into the U.S economy at such a torrid rate that it made its currency quite strong without dampening growth
However, things suddenly took a turn for the worse in Early 2001 when a downturn was officially confirmed. This downturn was to last till 2003 and the jobless recovery that followed was primarily fuelled by cheap money with the Fed rate as at early 2002 a ridiculously low 2%
The downturn however did not come as a surprise to some. The Economist magazine had for years been cynical about the new order and stated plainly that the American economy was overheating. And that high asset prices in the form of overpriced real estate and technology shares simply disguised high inflation.
When interest rates shot up, the bubble got pricked and the economy fell to earth.
But what is most important to forex traders was what happened to the currency.
The dollar duly fell over time against most currencies with the worst being the euro. It is now trading at E1/$1.25. It has over time lost over 40% of its value to that one currency!
It is having such foresight that produces astounding profits for traders even though they may have to sit out and wait.
Most experienced traders wait until they believe such an economy as run the length of its boom and then take their positions. Alternatively, they may even engineer the slowdown themselves as occurred with the Asian crisis of 1997 where George Soros was embarrassingly called a moron by the then Malaysia premier Mahathir Mohammed.
So next time an economy roars, it may be time to start taking positions!
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
To an unskilled eye or to those that have a poor understanding of how economies work, many are easily taken in that a boom may even be long lasting.
However, to the trained eye, what matters is the data underlying these growth rates.
Let us take for example the world's largest economy, the United States.
In the 1990's, the American economy had its second longest running post-war expansion. Things were so good that the unemployment rate dipped below 4.6% making labor so scarce that many companies had to forgo expansion plans due to a shortage of workers.
Not only was growth strong, but inflation stayed low. This was quite strange and many predicted there was a new economic order at America's doorstep.
The growth however was initially fuelled by cheap money and fuelled by a technology boom characterized by massive investments in the IT sector particularly internet shares. A commentator called the funds flowing into the stock market then as the"100year flood"
Internet share prices truly were defying gravity with stocks making virtually no profits at all valued at billions of dollars. To most markets watchers, this was nothing strange when many remembered the spectacular results hitherto hardware and software minnows such Dell, Microsoft and Apple had delivered to investors.
The dollar too was strong with the exchange hovering around $1/E1.20. Funds were pouring into the U.S economy at such a torrid rate that it made its currency quite strong without dampening growth
However, things suddenly took a turn for the worse in Early 2001 when a downturn was officially confirmed. This downturn was to last till 2003 and the jobless recovery that followed was primarily fuelled by cheap money with the Fed rate as at early 2002 a ridiculously low 2%
The downturn however did not come as a surprise to some. The Economist magazine had for years been cynical about the new order and stated plainly that the American economy was overheating. And that high asset prices in the form of overpriced real estate and technology shares simply disguised high inflation.
When interest rates shot up, the bubble got pricked and the economy fell to earth.
But what is most important to forex traders was what happened to the currency.
The dollar duly fell over time against most currencies with the worst being the euro. It is now trading at E1/$1.25. It has over time lost over 40% of its value to that one currency!
It is having such foresight that produces astounding profits for traders even though they may have to sit out and wait.
Most experienced traders wait until they believe such an economy as run the length of its boom and then take their positions. Alternatively, they may even engineer the slowdown themselves as occurred with the Asian crisis of 1997 where George Soros was embarrassingly called a moron by the then Malaysia premier Mahathir Mohammed.
So next time an economy roars, it may be time to start taking positions!
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
Can A Forex Trader Profit Greatly From The Presently Undervalued Yen
The Yuan can yield tremendous profits to investors if it rises against the dollar. The article below will discuss fully about the subject.
China's trade surplus has been a sore thumb with the American government over the past few years. The Americans believe that their massive trade deficit with China is fuelled by a cheap Yuan policy which the Chinese government is determined to pursue in order to keep its economy humming at break neck speeds.
In order to keep the Yuan weak, the government has been mopping up dollars at a frantic pace. This has made China the country with the most foreign reserves, now topping over $1.2trillion. This is equivalent to half it's GDP and will easily accommodate over one year of imports- which is far higher than the acceptable four months.
The question is- can the Chinese accept a revaluation of the Yuan to more acceptable levels?
The communist government is terrified of social disorder. Its only claim to legitimacy is the fast economic growth that has lifted hundreds of millions out poverty over the past two decades especially in the last six years.
One of its primary tools of achieving fast growth is the weak Yuan policy which has created and sustained a manufacturing and export boom which in turn as lifted growth to dizzying levels.
Unfortunately for the government however, there is still discontent. There are over a 100million surplus farm hands seeking work and unemployment still exist in the cities.
Also large parts of China still remain very poor especially the hinterland.
To add to this, many farmers in the rural areas where most of them are based complain about official neglect and corruption.
China thus believes it still needs years of fast economic growth to arrest the above mentioned problems.
However, things are not as simple as they seem.
First and foremost, the weak Yuan which is tied to the dollar is causing liquidity to rise to dangerous levels within the economy. This is in turn swelling demand to horrendous levels. And deflation has now been replaced by inflation. Too high a level of inflation may bring- wait a minute- social disorder. Many analysts speculate that high inflation was perhaps the true trigger for the Tiananmen tragedy.
From high inflation perspective alone, the Yuan needs to strengthen
Anyway, the government has begun tightening credit, always preferring to use crude monetary instruments such as restricting the quantity of loans flowing to some certain sectors especially real estate and steel which are poster children of the boom.
This is working to slow down growth both only slightly.
Growth can only be moderated if the Yuan rises. And the truth is that a rise will not lead to a downturn, but at most - a very soft landing. Growth may slow to 8% which is not bad but less than the double digit figures it has been enjoying of late.
The government has since 2005 permitted the Yuan to appreciate and it has consequent gone from Y8.28/$1 TO 7.71/$1. And interestingly enough, this did not cool the economy.
This indicates that further strengthening of the currency may not in reality have a dampening effect on growth.
The question now is- to what level must the Yuan rise before it reaches its real value?
Tying it with a basket of other currencies, the value will need to rise to between 6.50 and 7Yuan to the U.S currency. Whether the government will have the stomach for it is another matter.
The economy can still grow at 8% annually.
The probability of such a rate appreciation taking place may be plausible bearing in mind that the government has allowed the currency to appreciate slowly against the dollar in particular.
For the time being, however, I foresee the currency hitting 7.40Yuan to a $1 within the year or at the least 7.50.
This portends a fat profit for any trader that decides to make a move now. It may be one of the best pickings for the year.
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
China's trade surplus has been a sore thumb with the American government over the past few years. The Americans believe that their massive trade deficit with China is fuelled by a cheap Yuan policy which the Chinese government is determined to pursue in order to keep its economy humming at break neck speeds.
In order to keep the Yuan weak, the government has been mopping up dollars at a frantic pace. This has made China the country with the most foreign reserves, now topping over $1.2trillion. This is equivalent to half it's GDP and will easily accommodate over one year of imports- which is far higher than the acceptable four months.
The question is- can the Chinese accept a revaluation of the Yuan to more acceptable levels?
The communist government is terrified of social disorder. Its only claim to legitimacy is the fast economic growth that has lifted hundreds of millions out poverty over the past two decades especially in the last six years.
One of its primary tools of achieving fast growth is the weak Yuan policy which has created and sustained a manufacturing and export boom which in turn as lifted growth to dizzying levels.
Unfortunately for the government however, there is still discontent. There are over a 100million surplus farm hands seeking work and unemployment still exist in the cities.
Also large parts of China still remain very poor especially the hinterland.
To add to this, many farmers in the rural areas where most of them are based complain about official neglect and corruption.
China thus believes it still needs years of fast economic growth to arrest the above mentioned problems.
However, things are not as simple as they seem.
First and foremost, the weak Yuan which is tied to the dollar is causing liquidity to rise to dangerous levels within the economy. This is in turn swelling demand to horrendous levels. And deflation has now been replaced by inflation. Too high a level of inflation may bring- wait a minute- social disorder. Many analysts speculate that high inflation was perhaps the true trigger for the Tiananmen tragedy.
From high inflation perspective alone, the Yuan needs to strengthen
Anyway, the government has begun tightening credit, always preferring to use crude monetary instruments such as restricting the quantity of loans flowing to some certain sectors especially real estate and steel which are poster children of the boom.
This is working to slow down growth both only slightly.
Growth can only be moderated if the Yuan rises. And the truth is that a rise will not lead to a downturn, but at most - a very soft landing. Growth may slow to 8% which is not bad but less than the double digit figures it has been enjoying of late.
The government has since 2005 permitted the Yuan to appreciate and it has consequent gone from Y8.28/$1 TO 7.71/$1. And interestingly enough, this did not cool the economy.
This indicates that further strengthening of the currency may not in reality have a dampening effect on growth.
The question now is- to what level must the Yuan rise before it reaches its real value?
Tying it with a basket of other currencies, the value will need to rise to between 6.50 and 7Yuan to the U.S currency. Whether the government will have the stomach for it is another matter.
The economy can still grow at 8% annually.
The probability of such a rate appreciation taking place may be plausible bearing in mind that the government has allowed the currency to appreciate slowly against the dollar in particular.
For the time being, however, I foresee the currency hitting 7.40Yuan to a $1 within the year or at the least 7.50.
This portends a fat profit for any trader that decides to make a move now. It may be one of the best pickings for the year.
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
Saturday, April 14, 2007
Online Forex Day Trading The Tao Of Rapid Wealth Creation And Perpetuation
Foreign currency trading is the most profitable and powerful way to make money today in the world.
It is a 2.5 trillion dollars daily global market and business.
For this reason the knowledge and the secrets of how to do it successfully have been kept away from the public for thousands of years.
This is because it is the jealously guarded “SECRET” of how the “Money and Power” Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the “Movers & Shakers” of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas make their money and get rich.
They create vast fortunes easily trading foreign currencies.
Thereafter, using this great wealth, they create factories to manufacture consumer goods and products and hire you, Joe Bloke to work in those factories, banks and jobs at minimum wages.
So, it is no wonder why they don’t want you to know about the REAL TRUTH and “SECRET” on how to generate great wealth through foreign currency trading.
If you know how to trade foreign currency and generate $100,000 monthly for life, will you be idiotic, naïve and crazy to go to work at these DEAD END jobs to earn minimum wages and be paid nickels and dimes?
So, there has been a persistent organized campaign by the powers that be, the Money Elite to KEEP AWAY AND HIDE these “SECRETS” of creating vast wealth from foreign currency trading.
That is why they are always floating false propaganda and negative campaign in the mass media that currency trading is risky and you should not do it because you’ll lose all your money.
If you go to your bank manager or money management advisor or investment management company and tell them that you wish to make money at home from online currency trading, they will scream at you and try to discourage you and frighten you with the false information and half truth that it is risky and that you’ll lose your money.
This is because it is THE SECRET with which they make money and get rich!
Citibank alone makes $20 billion dollars trading currencies yearly.
Most banks, including your bank trade currencies and it is among the major ways to create income.
It is just that they don’t advertise this secret.
George Soros, the King of forex trading makes billions of dollars yearly trading currencies!
It is reported that a few years ago, he nearly caused the government of Thailand to go bankrupt because he made so much money trading their currency!
Yes, foreign currency exchange trading or forex trading can be risky.
It is true, you can lose your shirt and go bankrupt.
But this is half of the truth.
The other half of the truth is that if you buy and study a good forex currency trading e-book guide or program and understand how it works, avoid the pitfalls and get to know the secrets of risk management and trade with discipline, you can get fabulously rich so fast it will make your head spin round and put the devil to shame.
This is why there is an organized campaign to discredit online currency trading.
If you get rich so fast, then you’ll not need to depend on the “Money and Power” Elites and their jobs and welfare system where they allow you nickels and dimes to keep you subjugated.
If you get rich too fast, they will no longer be able to manipulate you into voting and keeping them in power to continue milking your life by making you labor and work yourself to death making them rich.
There are so many reasons why most beginners in foreign currency trading fail to earn money and instead lose all their savings.
When they first hear about how easy and fast it is making money from day trading currency, they search the internet and find a forex trading broker.
Then they open a currency trading account and put in a few thousands of dollars in the online currency trading account and immediately begin to try to earn money from online currency trading.
And they get entangled in all the foreign currency trading sophisticated strategies and systems of technical and fundamental analysis such as reading “Forex charts”, “Moving Averages”, “Elliot wave”, “Stochastics”, “Bollinger bands”, “Directional movement index”, “Trend and Oscillator indicators”, “Fibonacci retracements and others.
They spend all day and night listening to business news on radio, reading forex newsletters, forex articles in magazines and watching business news on TV.
These beginners don’t take their time to buy a valid online currency trading e-book guide to study and understand the forex market and the currency trading “SECRETS” before they begin trading.
They don’t open the free demo trial forex trading account to practice for free to develop viable profitable currency trading skills first before they open a paid forex trading account to begin trading and making real money.
They make the fatal and dumb mistake of trying to fly in the world of foreign currency trading market before they learn how to crawl.
So, they get confused, make grievous foreign currencies trading errors and lose their money.
When they lose their money, they will not accept responsibility because that is the difficult part.
The easy thing to do is to blame their mistakes on online currency trading and to declare and gripe that it is risky and a scam designed to con the unsuspecting public.
This gives them the justification to begin filing false complaints and instigating legal action with the lame excuse that they were naïve and didn’t know the risk involved and so have been ripped off.
The truth is that there are at least one million people around the world who have foreign currency trading skills and do it well to make millions of dollars monthly!
Yes, sometimes they will lose.
But most of the time they are fabulously profitable.
I once read about a taxi cab driver from New York who started trading foreign currencies about 10 yrs ago.
While driving his taxi cab, occasionally during his lunch break, he will log into his forex trading account and enter a few currency trades.
By the end of his driving day shift, he would check his online currency trading account and was always surprised to find that for a few minutes of trading currencies, he had made more money that day in minutes than he made driving the cab for a whole month.
This encouraged him to stop driving the taxi cab and to begin trading currencies full time.
In 10 years, he made $4 billion dollars ($4,000,000,000) trading foreign currencies online and was listed in Forbes Magazine’s 400 richest Americans!
He is just one out of the many average people all over the world who took the time to study online currency trading, understood it and trade it correctly and are making millions of dollars without any hard work.
You too can do the same.
It is simple.
If you can click your mouse once to buy the currency and in a few minutes click your mouse a second time to sell them, you can make money.
It is a no brainer. Even a caveman can do it!
So, foreign currency trading is not difficult to understand or to do like stock or bond or commodity trading.
If you know where to get a good and valid forex trading guide or e-book and be patient to spend 1 hr daily to study it to understand the foreign currency trading market, how to click your mouse to buy and sell the currency; and if you will be patient to do the free demo trial for a few months before you open a paid forex trading account to begin trading, you can get obscenely and insanely rich so fast, it will make your eyes want to pop out, seeing all the piles of cash you generate just by clicking your mouse twice for a few minutes daily!
One powerful secret that will help you as a beginner is to avoid hiring money managers at the beginning to trade currencies for you.
The reason is that 90% of these money managers who advertise with highly impressive websites and brochures and also in TV infomercials and radios and seminars are fraudulent.
When you hire them to trade for you, they will over trade your account (churning) so as to generate a lot of trading fees for themselves because whether they make money for you or not, you must pay them their fees.
The more they trade your account, the more fees they generate for themselves!
By over trading your forex currency account, they expose it to massive risk which will eventually lead you to lose a lot of money.
This is because there are certain days and times which are profitable to trade and there are some days and times which are not.
Therefore by over trading (churning) your currency trading account, they get rich at your expense.
Plus, some of them will even use some profits they generated from trading your account to trade for themselves and make themselves rich without you knowing what is going on.
As if that is not bad enough, some will entice you to trade on margin. This means that they will loan you money to trade.
But the trick is that they are loaning you digital money which is created from the air and has no value.
All they do is go to your account and enter any amount of money they wish to loan you. (They don’t actually put real money into your currency trading account!)
This is not real money because it is just digital artificial numbers.
But if you use this fake funny digital money to trade and lose, then you’ll owe them real money!
You’ll be required to pay them with real money!
And if you fail to pay them, they can freeze your bank accounts, assets and homes to collect the debt.
This is how most of these brokers get rich at the expense of naïve beginners in online foreign currency trading.
So, if you’re a beginner, avoid hiring money managers to trade for you at the beginning. Stay away from managed trading.
Instead learn to trade and after you have made at least $500,000, contact us to give you the list of the best and honest money managers in the world (as well as the best forecasting services) who can trade for you and make you richer.
There is another fraud which some money managers perpetrate.
After you open a paid online currency trading account and put in thousands of dollars in there for them to trade for you, they use your money to trade for themselves.
Then they use a computer software to generate a fake forex trading account statement for your forex trading account which will show that you’ve lost money.
There is no way most people will find out, because you can’t access their trading activities.
And sometimes even when you find a honest and reputable money manager to trade for you, when your account becomes profitable and you request to withdraw some of the money, they will begin to give you a run around, excuses and try to discourage you from withdrawing the money.
If you persist, you’ll find out that suddenly your account will begin to lose money because they have softwares to manipulate it and generate dubious account statements to make it seem as if you’ve been losing money!
Above all, most beginners in forex currency trading fail to earn money because they spend too much time in doing complicated forex mathematics, reading charts, listening to business news on radio, TV and reading too many forex newsletters and magazine articles, which are conflicting, confusing, time consuming and counter productive.
They spend so much time over stuffing themselves with forex trading news and information that they become constipated with information and overwhelmed and so have little or no time to actually click their mouse to buy and sell the currencies and make money.
Most beginners also are unable to find and use a good currency trading system and software.
Some of them are even conned into buying outrageously expensive trading softwares and system for $4000 from some companies who advertise on TV infomercials late at nights.
They don’t know that they can get the same forex trading system and softwares for free online at the websites of some forex trading companies!
These $4000 softwares are not for beginners and when we checked them out, we found they are complicated and not easy to use.
Infact after you manage to master how to use it, they will not help you to make more money!
So, it is not wise squandering your hard earned $4000 to buy them.
If these over priced worthless forex trading softwares work as they are advertised in seminars and infomercial, the companies will not be selling them.
Instead they will keep them secret and use them to make billions of dollars.
If you wake up tomorrow and discover you have a goldmine underneath your house, will you go out and advertise in TV infomercials and radios and seminars to sell your house for $4000???
The truth is that most of these infomercial advertising forex companies don’t really trade currencies. They are just sales people. Shysters. Tricksters.
They make their money by peddling worthless forex trading softwares to the naïve beginners for $4000.
When you check one of these companies out (one of them has the audacity to call their worthless software “Forex Made Easy”), you’ll discover that the CEO of this company actually admitted that not only that he does NOT use his $4000 software to trade but he knows nothing about trading currencies!
He only lends his name to his company to use to market their worthless foreign currency trading software.
The company’s pitchman who conducts the seminar is a sales man and he also doesn’t trade currencies because he had committed fraud in the past and was barred from trading commodities.
While the CEO of the company runs infomercial and seminars peddling worthless forex trading software for $4000, he doesn’t use it and doesn’t trade currencies.
Instead he hired a money manager who trades the currencies for him!
So, if you’re a beginner who desires to get rich fast from currency trading, you must know these insiders’ “SECRETS” of currency trading market and the pitfalls and how to avoid all the fraudulent companies peddling worthless forex trading e-books, books, softwares, systems and complicated trading strategies.
There are millions of them.
Beware because they are smooth operators who are very skilled in salesmanship and who can easily dazzle you with their big refined nonsensical English and so con you.
There are billions of dollars to be made in foreign currency trading and you can get abundantly rich trading these currencies online from home or office starting small.
But you must locate and buy a valid foreign currency trading e-book guide.
You must study it and understand it.
You must try the free demo account trading and do well in it before you can open a paid forex trading account to actually begin making real money.
You must begin by trading only one or two currencies at the beginning.
With time as you acquire more skills, you may trade more currencies.
You must learn how to trade with discipline and learn the BEST DAYS AND HRS to trade to be profitable and the other times when YOU MUST NOT TRADE to avoid losing money.
You must know how to “go long” or “short” on a currency, how to enter “Market Order”, “Limit Order”, “Stop Order”, “OCO order” and “Entry Order”.
If you learn how to do Online currency trading hedging, it will help you to maximize your profits.
You must be disciplined and avoid emotional currency trading.
When you make a reasonable amount of money for the day, stop trading because you can’t be profitable at all times of the day and if you don’t stop and take your profit, you may end up losing all the money you made.
Above all don’t open a paid currency day trading account and trade until you have done the free trial demo account trading for a few months and mastered it.
At the beginning, keep your trading strategies simple.
Avoid complications and advanced trading strategies of technical and fundamental analysis because these are the reasons why 90% of beginners lose money.
Use a simple trading strategy to get rich at the beginning.
Afterwards you may then take advanced forex trading courses and do technical, fundamental analysis and use forecasting services to make even more profits and get richer, making millions of dollars effortlessly.
If you’re serious in learning all the insiders’ “SECRETS” about how to make millions of dollars trading foreign currencies online, without selling your soul to the devil and without losing your shirt, you must get our powerful currency trading e-book which reveals a very simple and yet profitable and powerful trading strategy which is guaranteed to make you $100,000 monthly for life from home or office.
You can learn to get rich from the jealously guarded foreign currency trading “SECRETS” of the “Money and Power” Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the “Movers & Shakers” of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas.
With the millions of dollars which you make from foreign currency trading, you’ll be free like a bird to buy a mansion, with the most lavish and expensive furnishings, jewelry, antiques, electronics, a 50ft yacht, dream luxury cars, pick your choice: Lexus X470, $44,000 Jaguar 2007 S type, Silver Porsche Carrera, $180,000 Ferrari Testarossa, Mercedes 2007 Model S Class, 2007 Rolls Royce Silver Seraph, Bentley Mulsanne S, $220,000 Bentley Arnage Silver Tempest or a flaming red Lamborghini Jalpa!
You can make all your dreams in life to come true, without any hard work!
May these insights into foreign currency online investing, foreign currency trading program, investing online, forex trading, day trading, online trading e-book, day trading online, day trading system, day trading course, day trading future, forex day trading, day trading book, day trading firm, day trading training, currency day trading, online future trading, online currency trading, online forex trading, online commodity trading, online currency trading system, currency forex online trading, online trading course, online trading education, trading, online trading investing, forex, forex trading, forex broker, forex market, forex trading system, forex news, forex trader, forex signal, forex trading, online forex, trade forex, forex quote, forex education help you make millions of dollars and to achieve your life’s ambitions and dreams.
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Ikey Benney is the creator of Mscsrrr Millionaire Automated Foreign Currency Trading e-book Guide. Discover how to begin generating $100,000 monthly for life from home or office without doing any work currency trading program: http://www.mscsrrr.com/
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
It is a 2.5 trillion dollars daily global market and business.
For this reason the knowledge and the secrets of how to do it successfully have been kept away from the public for thousands of years.
This is because it is the jealously guarded “SECRET” of how the “Money and Power” Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the “Movers & Shakers” of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas make their money and get rich.
They create vast fortunes easily trading foreign currencies.
Thereafter, using this great wealth, they create factories to manufacture consumer goods and products and hire you, Joe Bloke to work in those factories, banks and jobs at minimum wages.
So, it is no wonder why they don’t want you to know about the REAL TRUTH and “SECRET” on how to generate great wealth through foreign currency trading.
If you know how to trade foreign currency and generate $100,000 monthly for life, will you be idiotic, naïve and crazy to go to work at these DEAD END jobs to earn minimum wages and be paid nickels and dimes?
So, there has been a persistent organized campaign by the powers that be, the Money Elite to KEEP AWAY AND HIDE these “SECRETS” of creating vast wealth from foreign currency trading.
That is why they are always floating false propaganda and negative campaign in the mass media that currency trading is risky and you should not do it because you’ll lose all your money.
If you go to your bank manager or money management advisor or investment management company and tell them that you wish to make money at home from online currency trading, they will scream at you and try to discourage you and frighten you with the false information and half truth that it is risky and that you’ll lose your money.
This is because it is THE SECRET with which they make money and get rich!
Citibank alone makes $20 billion dollars trading currencies yearly.
Most banks, including your bank trade currencies and it is among the major ways to create income.
It is just that they don’t advertise this secret.
George Soros, the King of forex trading makes billions of dollars yearly trading currencies!
It is reported that a few years ago, he nearly caused the government of Thailand to go bankrupt because he made so much money trading their currency!
Yes, foreign currency exchange trading or forex trading can be risky.
It is true, you can lose your shirt and go bankrupt.
But this is half of the truth.
The other half of the truth is that if you buy and study a good forex currency trading e-book guide or program and understand how it works, avoid the pitfalls and get to know the secrets of risk management and trade with discipline, you can get fabulously rich so fast it will make your head spin round and put the devil to shame.
This is why there is an organized campaign to discredit online currency trading.
If you get rich so fast, then you’ll not need to depend on the “Money and Power” Elites and their jobs and welfare system where they allow you nickels and dimes to keep you subjugated.
If you get rich too fast, they will no longer be able to manipulate you into voting and keeping them in power to continue milking your life by making you labor and work yourself to death making them rich.
There are so many reasons why most beginners in foreign currency trading fail to earn money and instead lose all their savings.
When they first hear about how easy and fast it is making money from day trading currency, they search the internet and find a forex trading broker.
Then they open a currency trading account and put in a few thousands of dollars in the online currency trading account and immediately begin to try to earn money from online currency trading.
And they get entangled in all the foreign currency trading sophisticated strategies and systems of technical and fundamental analysis such as reading “Forex charts”, “Moving Averages”, “Elliot wave”, “Stochastics”, “Bollinger bands”, “Directional movement index”, “Trend and Oscillator indicators”, “Fibonacci retracements and others.
They spend all day and night listening to business news on radio, reading forex newsletters, forex articles in magazines and watching business news on TV.
These beginners don’t take their time to buy a valid online currency trading e-book guide to study and understand the forex market and the currency trading “SECRETS” before they begin trading.
They don’t open the free demo trial forex trading account to practice for free to develop viable profitable currency trading skills first before they open a paid forex trading account to begin trading and making real money.
They make the fatal and dumb mistake of trying to fly in the world of foreign currency trading market before they learn how to crawl.
So, they get confused, make grievous foreign currencies trading errors and lose their money.
When they lose their money, they will not accept responsibility because that is the difficult part.
The easy thing to do is to blame their mistakes on online currency trading and to declare and gripe that it is risky and a scam designed to con the unsuspecting public.
This gives them the justification to begin filing false complaints and instigating legal action with the lame excuse that they were naïve and didn’t know the risk involved and so have been ripped off.
The truth is that there are at least one million people around the world who have foreign currency trading skills and do it well to make millions of dollars monthly!
Yes, sometimes they will lose.
But most of the time they are fabulously profitable.
I once read about a taxi cab driver from New York who started trading foreign currencies about 10 yrs ago.
While driving his taxi cab, occasionally during his lunch break, he will log into his forex trading account and enter a few currency trades.
By the end of his driving day shift, he would check his online currency trading account and was always surprised to find that for a few minutes of trading currencies, he had made more money that day in minutes than he made driving the cab for a whole month.
This encouraged him to stop driving the taxi cab and to begin trading currencies full time.
In 10 years, he made $4 billion dollars ($4,000,000,000) trading foreign currencies online and was listed in Forbes Magazine’s 400 richest Americans!
He is just one out of the many average people all over the world who took the time to study online currency trading, understood it and trade it correctly and are making millions of dollars without any hard work.
You too can do the same.
It is simple.
If you can click your mouse once to buy the currency and in a few minutes click your mouse a second time to sell them, you can make money.
It is a no brainer. Even a caveman can do it!
So, foreign currency trading is not difficult to understand or to do like stock or bond or commodity trading.
If you know where to get a good and valid forex trading guide or e-book and be patient to spend 1 hr daily to study it to understand the foreign currency trading market, how to click your mouse to buy and sell the currency; and if you will be patient to do the free demo trial for a few months before you open a paid forex trading account to begin trading, you can get obscenely and insanely rich so fast, it will make your eyes want to pop out, seeing all the piles of cash you generate just by clicking your mouse twice for a few minutes daily!
One powerful secret that will help you as a beginner is to avoid hiring money managers at the beginning to trade currencies for you.
The reason is that 90% of these money managers who advertise with highly impressive websites and brochures and also in TV infomercials and radios and seminars are fraudulent.
When you hire them to trade for you, they will over trade your account (churning) so as to generate a lot of trading fees for themselves because whether they make money for you or not, you must pay them their fees.
The more they trade your account, the more fees they generate for themselves!
By over trading your forex currency account, they expose it to massive risk which will eventually lead you to lose a lot of money.
This is because there are certain days and times which are profitable to trade and there are some days and times which are not.
Therefore by over trading (churning) your currency trading account, they get rich at your expense.
Plus, some of them will even use some profits they generated from trading your account to trade for themselves and make themselves rich without you knowing what is going on.
As if that is not bad enough, some will entice you to trade on margin. This means that they will loan you money to trade.
But the trick is that they are loaning you digital money which is created from the air and has no value.
All they do is go to your account and enter any amount of money they wish to loan you. (They don’t actually put real money into your currency trading account!)
This is not real money because it is just digital artificial numbers.
But if you use this fake funny digital money to trade and lose, then you’ll owe them real money!
You’ll be required to pay them with real money!
And if you fail to pay them, they can freeze your bank accounts, assets and homes to collect the debt.
This is how most of these brokers get rich at the expense of naïve beginners in online foreign currency trading.
So, if you’re a beginner, avoid hiring money managers to trade for you at the beginning. Stay away from managed trading.
Instead learn to trade and after you have made at least $500,000, contact us to give you the list of the best and honest money managers in the world (as well as the best forecasting services) who can trade for you and make you richer.
There is another fraud which some money managers perpetrate.
After you open a paid online currency trading account and put in thousands of dollars in there for them to trade for you, they use your money to trade for themselves.
Then they use a computer software to generate a fake forex trading account statement for your forex trading account which will show that you’ve lost money.
There is no way most people will find out, because you can’t access their trading activities.
And sometimes even when you find a honest and reputable money manager to trade for you, when your account becomes profitable and you request to withdraw some of the money, they will begin to give you a run around, excuses and try to discourage you from withdrawing the money.
If you persist, you’ll find out that suddenly your account will begin to lose money because they have softwares to manipulate it and generate dubious account statements to make it seem as if you’ve been losing money!
Above all, most beginners in forex currency trading fail to earn money because they spend too much time in doing complicated forex mathematics, reading charts, listening to business news on radio, TV and reading too many forex newsletters and magazine articles, which are conflicting, confusing, time consuming and counter productive.
They spend so much time over stuffing themselves with forex trading news and information that they become constipated with information and overwhelmed and so have little or no time to actually click their mouse to buy and sell the currencies and make money.
Most beginners also are unable to find and use a good currency trading system and software.
Some of them are even conned into buying outrageously expensive trading softwares and system for $4000 from some companies who advertise on TV infomercials late at nights.
They don’t know that they can get the same forex trading system and softwares for free online at the websites of some forex trading companies!
These $4000 softwares are not for beginners and when we checked them out, we found they are complicated and not easy to use.
Infact after you manage to master how to use it, they will not help you to make more money!
So, it is not wise squandering your hard earned $4000 to buy them.
If these over priced worthless forex trading softwares work as they are advertised in seminars and infomercial, the companies will not be selling them.
Instead they will keep them secret and use them to make billions of dollars.
If you wake up tomorrow and discover you have a goldmine underneath your house, will you go out and advertise in TV infomercials and radios and seminars to sell your house for $4000???
The truth is that most of these infomercial advertising forex companies don’t really trade currencies. They are just sales people. Shysters. Tricksters.
They make their money by peddling worthless forex trading softwares to the naïve beginners for $4000.
When you check one of these companies out (one of them has the audacity to call their worthless software “Forex Made Easy”), you’ll discover that the CEO of this company actually admitted that not only that he does NOT use his $4000 software to trade but he knows nothing about trading currencies!
He only lends his name to his company to use to market their worthless foreign currency trading software.
The company’s pitchman who conducts the seminar is a sales man and he also doesn’t trade currencies because he had committed fraud in the past and was barred from trading commodities.
While the CEO of the company runs infomercial and seminars peddling worthless forex trading software for $4000, he doesn’t use it and doesn’t trade currencies.
Instead he hired a money manager who trades the currencies for him!
So, if you’re a beginner who desires to get rich fast from currency trading, you must know these insiders’ “SECRETS” of currency trading market and the pitfalls and how to avoid all the fraudulent companies peddling worthless forex trading e-books, books, softwares, systems and complicated trading strategies.
There are millions of them.
Beware because they are smooth operators who are very skilled in salesmanship and who can easily dazzle you with their big refined nonsensical English and so con you.
There are billions of dollars to be made in foreign currency trading and you can get abundantly rich trading these currencies online from home or office starting small.
But you must locate and buy a valid foreign currency trading e-book guide.
You must study it and understand it.
You must try the free demo account trading and do well in it before you can open a paid forex trading account to actually begin making real money.
You must begin by trading only one or two currencies at the beginning.
With time as you acquire more skills, you may trade more currencies.
You must learn how to trade with discipline and learn the BEST DAYS AND HRS to trade to be profitable and the other times when YOU MUST NOT TRADE to avoid losing money.
You must know how to “go long” or “short” on a currency, how to enter “Market Order”, “Limit Order”, “Stop Order”, “OCO order” and “Entry Order”.
If you learn how to do Online currency trading hedging, it will help you to maximize your profits.
You must be disciplined and avoid emotional currency trading.
When you make a reasonable amount of money for the day, stop trading because you can’t be profitable at all times of the day and if you don’t stop and take your profit, you may end up losing all the money you made.
Above all don’t open a paid currency day trading account and trade until you have done the free trial demo account trading for a few months and mastered it.
At the beginning, keep your trading strategies simple.
Avoid complications and advanced trading strategies of technical and fundamental analysis because these are the reasons why 90% of beginners lose money.
Use a simple trading strategy to get rich at the beginning.
Afterwards you may then take advanced forex trading courses and do technical, fundamental analysis and use forecasting services to make even more profits and get richer, making millions of dollars effortlessly.
If you’re serious in learning all the insiders’ “SECRETS” about how to make millions of dollars trading foreign currencies online, without selling your soul to the devil and without losing your shirt, you must get our powerful currency trading e-book which reveals a very simple and yet profitable and powerful trading strategy which is guaranteed to make you $100,000 monthly for life from home or office.
You can learn to get rich from the jealously guarded foreign currency trading “SECRETS” of the “Money and Power” Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the “Movers & Shakers” of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas.
With the millions of dollars which you make from foreign currency trading, you’ll be free like a bird to buy a mansion, with the most lavish and expensive furnishings, jewelry, antiques, electronics, a 50ft yacht, dream luxury cars, pick your choice: Lexus X470, $44,000 Jaguar 2007 S type, Silver Porsche Carrera, $180,000 Ferrari Testarossa, Mercedes 2007 Model S Class, 2007 Rolls Royce Silver Seraph, Bentley Mulsanne S, $220,000 Bentley Arnage Silver Tempest or a flaming red Lamborghini Jalpa!
You can make all your dreams in life to come true, without any hard work!
May these insights into foreign currency online investing, foreign currency trading program, investing online, forex trading, day trading, online trading e-book, day trading online, day trading system, day trading course, day trading future, forex day trading, day trading book, day trading firm, day trading training, currency day trading, online future trading, online currency trading, online forex trading, online commodity trading, online currency trading system, currency forex online trading, online trading course, online trading education, trading, online trading investing, forex, forex trading, forex broker, forex market, forex trading system, forex news, forex trader, forex signal, forex trading, online forex, trade forex, forex quote, forex education help you make millions of dollars and to achieve your life’s ambitions and dreams.
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If you don’t agree to these conditions, please don’t copy and use this article.
Anyone who violates this condition will be subject to legal action and payment of damages for violation of our copyrights. Thank you.
Ikey Benney is the creator of Mscsrrr Millionaire Automated Foreign Currency Trading e-book Guide. Discover how to begin generating $100,000 monthly for life from home or office without doing any work currency trading program: http://www.mscsrrr.com/
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
Wednesday, April 11, 2007
Initiating A Rookie Into Forex Business
The question we first need to ask is what is the forex market?
The forex market acts as medium to trade different currencies against each other. It is used by banks, central banks, governments and big corporations to hedge their currency holdings in the event of either a devaluation or revaluation as this can have undesirable effects on their balance sheets.
Then we have currency speculators who are into the business to simply to make money, whether a currency goes up or down. In currency trading, speculators are involved in buying and selling of currencies in a market with a daily turnover of $1.9trillion.
Traders speculate on the dollar, euro, yen, British Pound and many other currencies and make their profits based on the pips or movements in the price.
The market operates 24hrs a day, 5 days a week and it is very liquid.
The beauty of forex trading is that you need only a little to start with as many have commenced trading with as little as $100. Profits in the business defy logic with traders able to quintuple their money within days!
Prior to the start of actual trading, many rely on a demo account from which hopefully they would have learnt the ropes of the business. It is advisable that demo trading is carried out for 30 - 60days. This is due to the high risk nature of forex trading and the technicalities involved.
Good tutorial trading is essential to succeed in the business. Many either go for seminars, or purchase e-books or tutorial videos on the subject. Many join forums to enable them mingle with other traders and get access to what they hope may be profitable tips to enable them strike a fortune.
The business of currency trading is primarily carried out online and a a trader can check his stats anytime. An internet connection is therefore a must whether at home, office or at a cafe.
The basic factor for success in the business is the ability of one to fully understand how to apply both the technical and fundamental analysis when trading forex.
Fundamental analysis is simply the ability to speculate how the market will move based on information provided. For instance, an increase in the interest rates by the apex bank usually leads to a strengthening of a currency.
Technical analysis is much more scientific which relies on computer models which are based on patterns or trends observed in the markets over a period of time.
The sensible fusion of these two methods can yield enormous profits. The author however believes that fundamental analysis is the superior of the two.
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
The forex market acts as medium to trade different currencies against each other. It is used by banks, central banks, governments and big corporations to hedge their currency holdings in the event of either a devaluation or revaluation as this can have undesirable effects on their balance sheets.
Then we have currency speculators who are into the business to simply to make money, whether a currency goes up or down. In currency trading, speculators are involved in buying and selling of currencies in a market with a daily turnover of $1.9trillion.
Traders speculate on the dollar, euro, yen, British Pound and many other currencies and make their profits based on the pips or movements in the price.
The market operates 24hrs a day, 5 days a week and it is very liquid.
The beauty of forex trading is that you need only a little to start with as many have commenced trading with as little as $100. Profits in the business defy logic with traders able to quintuple their money within days!
Prior to the start of actual trading, many rely on a demo account from which hopefully they would have learnt the ropes of the business. It is advisable that demo trading is carried out for 30 - 60days. This is due to the high risk nature of forex trading and the technicalities involved.
Good tutorial trading is essential to succeed in the business. Many either go for seminars, or purchase e-books or tutorial videos on the subject. Many join forums to enable them mingle with other traders and get access to what they hope may be profitable tips to enable them strike a fortune.
The business of currency trading is primarily carried out online and a a trader can check his stats anytime. An internet connection is therefore a must whether at home, office or at a cafe.
The basic factor for success in the business is the ability of one to fully understand how to apply both the technical and fundamental analysis when trading forex.
Fundamental analysis is simply the ability to speculate how the market will move based on information provided. For instance, an increase in the interest rates by the apex bank usually leads to a strengthening of a currency.
Technical analysis is much more scientific which relies on computer models which are based on patterns or trends observed in the markets over a period of time.
The sensible fusion of these two methods can yield enormous profits. The author however believes that fundamental analysis is the superior of the two.
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
Dangers Lurking For Forex Traders In Relying on The News
Forex trading is immensely profitable and rewarding. However the risks can not be underestimated.
Many traders have been taught to listen to the news when making trades. This is not in itself a bad idea. It is even quite good.
However, there is a danger in new reporting. And that danger is that the news reporters are imperfect humans.
Many may sweeten their stories in order to improve circulation or viewership.This is common.
And to make matters worse, you have the same story from different publication slightly differing. This can be confusing.
A case in point is breaking news. Any media house worth its salt wants to be the first with to break out it out i.e. the speculated death of the Pope John Paul II
Such news even though not fully established is bound to weaken the euro vis-à-vis other currencies and a smart trader may want to make quick gains before the market fully recovers once the panic subsides which will be short lived. Now, what if the information was wrong! Most wise traders would wait or let the opportunity pass than have their fingers burnt.
The best advice therefore is for traders to read between the lines and not swallow all that they listen to. They should listen with a trained hear. This will save them from making embarrassing mistakes and may I add heavy losses. Good day
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
Many traders have been taught to listen to the news when making trades. This is not in itself a bad idea. It is even quite good.
However, there is a danger in new reporting. And that danger is that the news reporters are imperfect humans.
Many may sweeten their stories in order to improve circulation or viewership.This is common.
And to make matters worse, you have the same story from different publication slightly differing. This can be confusing.
A case in point is breaking news. Any media house worth its salt wants to be the first with to break out it out i.e. the speculated death of the Pope John Paul II
Such news even though not fully established is bound to weaken the euro vis-à-vis other currencies and a smart trader may want to make quick gains before the market fully recovers once the panic subsides which will be short lived. Now, what if the information was wrong! Most wise traders would wait or let the opportunity pass than have their fingers burnt.
The best advice therefore is for traders to read between the lines and not swallow all that they listen to. They should listen with a trained hear. This will save them from making embarrassing mistakes and may I add heavy losses. Good day
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
The Best Toolkit For Forex Trading-Fundamental Or Technical analytical?
Forex trading is an immensely profitable venture but may I add very risky as well. We have traders making 5 figures or more constantly on a monthly basis. Many have been in the business for years or are in a good network that provide them very profitable tips and at the right time.
Some traders swear by the fundamental method while others prefer the technical method. While some who are the hybrid types, use the two. Which of these are right?
Many say the money is in the trends. So they like the candle sticks, moving averages, MACD, charts etc. And many have made big bucks doing so. Yes, it is true that the market does mirror some trends. The question is what happens when things go wrong or may I add, spectacularly wrong i.e. when the markets move unexpectedly due to a major world event, one unforeseen by the model?
Crisis could occur unexpectedly as was frequent in the 1990’s such as the Mexican devaluation of 1994, the Asian crisis (1997) and the Russian default (1998). These unexpected events usually make models irrelevant and often lead to excessively high losses.
A case in point is Long Term Capital Management founded by John Merwether? It was a hedge fund that went belly up in 1998. Its specialty was bonds but the model used was akin to that of the technical analytical model used in forex trading. This eventually proved to be its undoing.
Founded in 1994, and making use of computer models, it made high returns, over 30% annually for the first few years. Things however took a turn for the worse in 1998 when it lost $4.6billion in a space of only 4months. The U.S government had to come to its rescue. And interesting its trading formula was one of the most advanced in its field having been designed by two Nobel laureates. It was the unexpected Russian default of 1998 that finally sealed its fate. From this, it never recovered
Many newbies in the forex business may start off making profits using the technical analytical model but many eventually make losses just like LTCM. It is said that 90% of traders make losses and I am sure that majority of these are the inexperienced using technical model.
Do not get me wrong. Traders do make money based on the technical model but an overemphasis on it can be dangerous-very dangerous. Flexibility is the key.
What about fundamental analysis? Though not fool proof, it has proven more resilient and long lasting. Traders who use this model tend to be professional and therefore quite skilled.
One of the greatest kills made in the forex industry was when George Soros a formidable trader bet that the British Pound would be forced to devalue in 1992. He did bet heavily on this and was reputed to have made a $1billion in that trade.
How did he put fundamental analysis to work? He knew then that the strong pound was adversely affecting the British economy and the only way out was for the currency to weaken and that sooner or later, the government would capitulate. And that was what happened.
He was heavily involved in betting against Asian currencies in 1997 and it was his activities and those of other traders that eventually brought the then known rising tigers- Thailand, Malaysia and Indonesia to their knees.
Their currencies then were not only strong or to use the proper word-overvalued but their current account deficits were over the top, as high as 8% instead of the more prudent 3% or less. And to add to their woes, their companies had borrowed heavily from foreign banks. It was a ticking time bomb which he only capitalized on.
All traders desire to have such mega-kills as Mr Soros had. He is a legend. That is the result of knowing your onions.
Technical analysis good but fundamental-much, much better.
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
Some traders swear by the fundamental method while others prefer the technical method. While some who are the hybrid types, use the two. Which of these are right?
Many say the money is in the trends. So they like the candle sticks, moving averages, MACD, charts etc. And many have made big bucks doing so. Yes, it is true that the market does mirror some trends. The question is what happens when things go wrong or may I add, spectacularly wrong i.e. when the markets move unexpectedly due to a major world event, one unforeseen by the model?
Crisis could occur unexpectedly as was frequent in the 1990’s such as the Mexican devaluation of 1994, the Asian crisis (1997) and the Russian default (1998). These unexpected events usually make models irrelevant and often lead to excessively high losses.
A case in point is Long Term Capital Management founded by John Merwether? It was a hedge fund that went belly up in 1998. Its specialty was bonds but the model used was akin to that of the technical analytical model used in forex trading. This eventually proved to be its undoing.
Founded in 1994, and making use of computer models, it made high returns, over 30% annually for the first few years. Things however took a turn for the worse in 1998 when it lost $4.6billion in a space of only 4months. The U.S government had to come to its rescue. And interesting its trading formula was one of the most advanced in its field having been designed by two Nobel laureates. It was the unexpected Russian default of 1998 that finally sealed its fate. From this, it never recovered
Many newbies in the forex business may start off making profits using the technical analytical model but many eventually make losses just like LTCM. It is said that 90% of traders make losses and I am sure that majority of these are the inexperienced using technical model.
Do not get me wrong. Traders do make money based on the technical model but an overemphasis on it can be dangerous-very dangerous. Flexibility is the key.
What about fundamental analysis? Though not fool proof, it has proven more resilient and long lasting. Traders who use this model tend to be professional and therefore quite skilled.
One of the greatest kills made in the forex industry was when George Soros a formidable trader bet that the British Pound would be forced to devalue in 1992. He did bet heavily on this and was reputed to have made a $1billion in that trade.
How did he put fundamental analysis to work? He knew then that the strong pound was adversely affecting the British economy and the only way out was for the currency to weaken and that sooner or later, the government would capitulate. And that was what happened.
He was heavily involved in betting against Asian currencies in 1997 and it was his activities and those of other traders that eventually brought the then known rising tigers- Thailand, Malaysia and Indonesia to their knees.
Their currencies then were not only strong or to use the proper word-overvalued but their current account deficits were over the top, as high as 8% instead of the more prudent 3% or less. And to add to their woes, their companies had borrowed heavily from foreign banks. It was a ticking time bomb which he only capitalized on.
All traders desire to have such mega-kills as Mr Soros had. He is a legend. That is the result of knowing your onions.
Technical analysis good but fundamental-much, much better.
MAKE $500 A DAY TRADING FOREX! SHOW ME HOW!!
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