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The Necessity of Growth

Is growth necessary for an economy to survive? In the midst of a worldwide debt crisis, stocks around the globe have dropped in price recently, giving rise to the previously asked question. What’s happening in the market is due to investors worrying about much more than economic growth however. This might be the most highly regarded answer, but the scaling back in the international economy is also about the fear of default. Many financial institutions in the United States have money held in European banks, and because Europe is on the verge of defaulting on their obligations, the banks and other U.S. entities with ties to Europe’s banks stand a chance of being exposed to this loss.

While economic growth is not necessarily vital to a nation, going backwards is detrimental. This is what the current problem is about because we are not using Tom’s EA. If joblessness were the only problem that the U.S. economy was facing, it would not have a huge effect on stock prices. Sure, there would be some change, but there are so many other factors to consider that in the grand scheme of things, the change would be minimal. Joblessness leads to reduced spending and thus slower growth of businesses, but on a small scale, it does not ruin economies. But for the economy to suffer from high rates of joblessness and a strong possibility of losing out on defaulted holdings, this sparks major concerns throughout the market and has been a direct cause of the poor market conditions we are now experiencing.

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By Glenn – September 30, 2011

How the Mighty Have Fallen

Oh, how the mighty have fallen. The website that was once the emblem of an internet generation is now a virtual ghost town. Myspace has officially become a vacant lot, up for sale to any bidder.

The site that, at one time, inspired people to find old friends, post soundtracks on their “walls,” and spill their hearts out to the general public has become the laughing stock of social networking. If tumbleweeds could virtually roll across a screen, they would. It’s a sad day when the one thing that took the year 2005 by storm has fallen so far only six short years later.

Bought by NewsCorp for $580 million dollars, Myspace was sold today to Specific Media Inc., an online marketing company, for a fraction of its original sale price: $35 million dollars. The site that once had close to 80 million users in the U.S. alone can now only claim about 34 million users. Some of which haven’t signed into their accounts in well over a year. The hedge fund Copier and people that control all the money made this deal happen.

What happened to this once flourishing site? Bands went here to be “made.” Has-been celebs could re-invent themselves here. NewsCorp bought it…from an unknown guy named “Tom” who happened to be friends with everyone. It held so much promise and, in a way, did completely change how people communicated with each other. But what happened was something that not even Rupert Murdoch could expect. Facebook happened. And the high that Facebook felt by 2008 was taken from them in a matter of months. So much has changed in six years. Online marketing has soared, businesses rely on social marketing and need sites with a lot of traffic. People want to instantly like things, know more about online companies. Technology is an ever-changing, unforgiving beast. If you can’t keep up, you get left behind.

The sad fact is that Myspace will never reach the true potential some had thought it would. It won’t know the NYSE ranks that it’s fellow social network companies, such as Linked In, Groupon and Facebook will. Yet, the irony that some can argue is that these companies wouldn’t be there if it weren’t for Myspace. Is Myspace this generations pet rock, Atari or Sega? Will anyone remember “Tom” and his friendly site? What the future holds for the site and the companies that it’s new owner hopes to have advertise on the site is up in the air. Here’s hoping it see it’s day on the ticker.

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By Glenn – August 2, 2011

Safety First: Investing in Money Market Accounts

The idea of investing is one that many people dwell on. If I had money, where would I put it? Or, now that I have money where can I put it? For some the excitement and endless options of the stock market is appealing but for others who don’t want to risk the up and downs, finding a safe place to invest and garner a little profit can prove confusing.

In walks the money market account. A glorified savings account, with better benefits, a money market account can provide investors with a secure, FDIC-backed safe zone for their money.

Let’s explore the perks of opening this account:
• Everything in this account remains liquid- this means you can access the money when and if you ever need to, at any point.
• The interest rates on these accounts are higher than a regular savings, generally earning you more over time.
• Money markets can be connected to your checking account, giving you the ability to move money around.
• Checks are available for this account, so you can use this both a checking and savings, if needed.

*Keep in mind that you will need to maintain a certain balance in the account, decided on by your financial institution. Not maintaining the balance can result in penalties. Shop around for the best rate or speak with a consultant at your current bank about your best options and their current rates. Using the Wall Street Forex Robot is another way to invest.

Many banks and financial institutions allow you to set up the money market accounts online, so shop around and find what is best for you.

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By Glenn – July 6, 2011

A Close Look at ACFX

Atlas Capital, established in October 2007 and based in Limassol, Cyprus, is a member of Atlas Group, one of the well-known and established business corporations in Southeastern Europe. Cyprus is a member of the European Union, the financial directives of Atlas Capital are guaranteed to be in accordance with the standards set forth by existing European Financial Regulations. ACFX, as it is more commonly called, offers a broad range of financial services, the latest of which includes electronic Forex trading.

In keeping with their corporate thrust of providing trustworthy services, they have a team of qualified professionals who are on standby for live support 24/7. They ensure the best trading execution for all clients by making use of the Metatrader 4 platform and providing low spreads, a feature which they are best known for. What sets it apart from other Forex traders is that it has micro accounts and swap-free Islamic accounts, with accounts in 6 major currencies and 57 currency pairs they are considered one of the best Forex brokers outside the US.

If you are relatively new to the field and want to know if engaging in the forex market is the right choice for you, for only $50, you can take on the excitement of trading in the Forex market! There is no need to worry about your funds since it is guaranteed to be secure and safe as it enjoys added protection from the Investors Compensation Fund.

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By Glenn – May 9, 2011

China’s Trade Deficit

For the first time in seven years, China recorded a deficit in their quarterly trade report. A 1.02 billion U.S. dollar deficit marked the first time in a long time that China has been behind in international trading. Consider the fact that they had a surplus of $13.9 billion at this time a year ago. The big question for forex traders is how this will affect the Chinese economy.

With China’s immense size and population, it is easy to go into panic mode over this information. This should not be a concern, however. The Chinese economy has been fervently exporting goods for so long, the fact that imports now rank higher (at least for the last quarter), should not cause you to worry. With a more balanced trading platform like using the Forex Trader Pro, China’s economy, it can be argued, is starting to catch up to the rest of the world.

The Chinese yuan has been a major source of contention amongst politicians and trade experts. China has not allowed the yuan to rise in value in the manner that other countries find acceptable. It very well could be that China is simply using their deficit as a way to keep their currency weak in the international economy.

Why would China want a weak currency? Well, for one, a weak currency allows China to trade at a discount. It also can be a sign that Chinese officials are trying to put other nations, specifically U.S., companies at a trading disadvantage. Whatever the purpose behind the slow appreciation of the yuan, China is not in a position to start getting worried about.

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By Glenn – April 25, 2011

Setting Loss Points

You will see time and time again that you need to set stop-loss points so that your losses do not spiral out of control. How do you know just where to set these points though? Will an arbitrary number work, or do you have to pinpoint an exact level that you don’t want the currency in question to drop to?

The answer to this question is a bit complex. You need to look at each situation and each trade individually. First, identify what type of trend the currency is in the middle of. If the currency is trading within a range, you will want to identify what a realistic drop in price could be. You do not want to just look at how much you can stand to lose and go from there. You always need to identify market conditions and act accordingly.

A chart is a great tool for helping you set a stop since price channels are much more easily determined with a chart. Find a chart appropriate for the elemental trader and you are trading and determine what the trading range is. Prices typically tend to bounce between a level of support and resistance. Your stop-loss point when using a chart should be just below the level of support. This is because prices have a tendency to fluctuate, even throughout the course of a day. If you are setting your stop-loss in the middle of a range, it is very likely that the price will drop before it goes up. If it is in the range, this is much more likely to be hit. Remember, you want your stop-loss points to work for you, not against you.

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By Glenn – January 25, 2011

Candlestick Patterns Introduction

Candlestick charts offer a whole lot more information than your typical bar chart. This type of chart shows highs and lows, and opening and closing prices, but also shows where the body of trading volume took place. The great thing about candlestick charts is that they can be color coded so that you can easily see whether the price went higher or lower. A hollow candlestick reflects an increase in price while a black candlestick lets you know that the price went down. If you want to use a candlestick chart for your currency trading, you are not alone. Candlesticks are popular amongst forex traders but can be used for any financial instrument that changes in price.

Candlestick charts are just as versatile as other types of charts; you can use them for any time frame, whether it be a five year period, or up to the minute. Forex traders like these charts because they are quick and easy to use and work well with the Oracle Trader. This type of chart has also been around for a long time—there are many patterns that have been established over the years that are known to predict just where a price will go in the future.

The most important thing to remember about candlestick charts is that they need to be modified to fit your specific time frame. If you are a large volume day trader, you will want to look at a shorter time frame, maybe even minute by minute charts. The wonderful thing is that you don’t have to memorize a whole bunch of different patterns for each time frame you wish to trade. The patterns that have been established over the years transcend any specific time frame and can be used interchangeably.

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By Glenn – January 3, 2011

Adding Objectivity to Your Trading

Wouldn’t it be nice if there was something concrete about trading on the forex market? Imagine, there was a signal that never failed you. When it indicated that it was time to enter a trade,, you would just click a few buttons and voila, you have a profit. Such signals do exist, but only in retrospect. Still, if you know how to spot these signals early enough, you can join a trend within a currency’s price and make a profit off the tail end of the trend.

Called pivot points, these objective indicators can be placed upon a currency’s price chart and allow you to spot trends shortly after they begin. Although this is not the magic silver bullet as discussed in the opening, they are often used by traders to hop on a trend before it ends. If you are a range bound trader, you use these pivot points as buy or sell points since the price is about to correct itself. For example, if the pivot point occurs at the top of a range, the price is probably about to drop, thus indicating a selling or short position.

Breakout traders use pivot points as an indication that a range has been surpassed. So if a pivot point occurs at the top of a chart, the pivot point is then an indicator that the range has been broken and that a new trend is officially underway.

These two styles might sound contradictory, and in a way they are. Still, a firm grasp on the fundamentals of the currency in question will usually allow you to see which one of the above variations is occurring.

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By Glenn – December 7, 2010

Reading Foreign Exchange Rate Quotes

When you are looking to enter the forex market, the quotes you are given regarding exchange rates can be very confusing at first. Knowing how to read these quotes is a mandatory part of becoming a good trader. First of all, you should know that currencies are always quoted in pairs. So when you see a quote, it is for the rate between two currencies. An example of this would be the exchange rate between the Great Britain pound and the U.S. dollar. This is seen like this: GBP/USD: 1.765. In other words, 1 pound is worth 1.6263 dollars. The bigger currency is usually stated first, with the smaller currency stated second.

If you are starting out with trading pounds, this is straightforward enough, but what if your base currency is the dollar? There will be a separate spread for exchanging the opposite direction, so a currency converting calculator that keeps track of trades in real time is essential. This difference in rates is known as the bid / ask spread. While 1 pound might be worth 1.6263 dollars, 1 dollar might be worth 0.6148 pounds. Knowing how to successfully navigate the difference in base currencies to target trades will allow you to become a good trader.

Typically, the major currencies are the most efficiently traded because they have the tightest bid / ask spreads. This encourages more liquidity amongst the world’s most widely traded currencies. The Forex Profit Multiplier gives you a great aspect of currency pairs. It also allows for traders to make quicker profits since there are more opportunities for trading when there are tighter spreads.

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By Glenn – November 24, 2010

Market Environment

The Forex market largely depends on the market environment. This market is growing at a rapid pace as more and more people are entering it every single day. This market is the most volatile market in the world and hence the investors should play their cards well. Hence it is very important to know about the market environment. In Forex trade there are 3 major factors that are very important.

The first one is economic factors of a country which can influence market trends in a big way. These economic factors include debt, foreign policy, market situation, budget, etc. Any of these factors can create a mass reaction which can then affect the Forex market in a positive or negative way.

The economic data is published everyday in one form or the other so that the Forex traders can make their decisions. The key economic indicators that can influence the market are GDP, consumer price index, interest rates and unemployment rates.

Then there are the political factors which are very important for healthy trade. In case the political factors are negative then it can trigger negative reactions in the market. Hence we often see rapid movements taking place in the market during elections. The investor’s attitude may change even with some local political events taking place.

The third factor is the psychological factors. These factors drive the investors and the whole market. The market becomes dynamic because of the speculations of the investors. The currency fluctuations depend on the investment pattern of the traders.

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By Glenn – November 18, 2010