Fundamental Outlook for US Dollar:

It was a tenuous week; but the dollar was able to ultimately hold its own through the close. However, just because momentum behind the earnings-driven rally in risk appetite has stalled does not mean that the world’s most liquid currency has avoided a collapse all together. Sentiment winds have died down; but they can easily jostle the safe-haven dollar should another economic catalyst surface. This makes for an uncertain future when combined with the fundamental influence that the 2Q GDP report will have on the currency. Now, not only do traders have to interpret the data, they will also have to judge whether it has a greater impact on risk appetite or growth considerations for the beleaguered dollar.

Looking ahead to next week, the most immediate threat to the greenback’s stability is the intensity and direction of risk appetite. While this currency is deeply mired in speculation surrounding the economy’s leading or lagging growth potential, interest rate expectations, and deficit projections among other influences; risk appetite has proven itself to be insuperable. With the Federal Reserve vowing to keep the benchmark lending rate at levels that insure a carry status when conditions do turn around and politicians ensuring the economy will struggle with record levels of debt for years to come, there seems little doubt that the dollar will maintain its position on the opposite of risk appetite. But, considering the stalled progress most of the dollar and yen crosses saw last week; is there a strong shift in sentiment in the works? With EURUSD and GBPUSD just off of key levels of resistance, the pressure is growing. However, the primary source of momentum this past week – the second quarter earnings season – is already on the decline. If left up to the markets alone, equities have already forged new highs for the year; but commodities, fixed income and risk-sensitive currency pairs have not pushed to comparable levels. Oddly enough, one of the most likely catalysts for risk going forward also happens to be the most attention grabbing indicator on the US docket: GDP.

According to economists forecasts, the world’s largest economy contracted at a 1.5 percent on an annualized pace through the second quarter. This would be a marked improvement from the 5.5 percent and 6.3 percent rate of the recession through the first quarter of 2009 and fourth quarter 2008 respectively. This would certainly confirm policy officials expectations for a return to positive growth by the end of this year or beginning of the next; but through the near-term it is still a call for speculation to rank the economy’s performance against that of its major counterparts. China recently reported a sharp advance to a 7.9 percent pace of expansion while the UK printed a record 5.6 percent contraction. And, then there are still those economies that have yet to report their numbers. Japan suffered a record-breaking 14.2 percent slump through the first quarter, but is expected to snap back according to BoJ and Cabinet officials. The Euro Zone awaits it August 13th release, but the Bundesbank has already stated Germany saw only a ‘slight contraction’ through the second quarter. This will increasingly become a consideration of nuance.

The other facet of the US 2Q GDP release is that it will be accepted as a gauge of global growth. This further complicates the issue. Should the reading be good, the influence on risk appetite could outweigh the implications for US returns and actually drag the dollar down; and vice versa. Another important consideration is the timing of this release. Due Friday, speculators may decide to move the dollar before the data crosses the wires. If this is the case, the GDP report could factor into long-term projections but not short-term volatility. –JK

The Candlestick Pattern - A Profitable Forex Trading Strategy

Is the candlestick pattern a profitable Forex trading strategy? Candlesticks patterns were first used in Japan five centuries ago in the Dojima rice exchange. Today, it has become a popular tool for foreign exchange traders to predict currency trends. The system provides data on past and present trading patterns that are used in forecasting movements of various currencies.

The Forex market is a good source of income for people who know how to accurately read currency trends. Because of numerous Forex software and programs that are readily available nowadays, more and more people are given the opportunity to engage in foreign exchange trading. One of tools that have helped people earn money in the currency market is the candlestick pattern.

Before employing candlestick pattern trading, aspiring traders must first know enough about it. There are many kinds involved here and choosing the right one needs some thought. But for the many that are already into candlestick trading, he 30-minute candlestick chart seems to be the best of the lot and they counsel that before engaging in a trade, one must see to it that the pattern has been completed. There is danger in going ahead without getting the final picture first.

There is what traders call the engulfing candlestick patterns. This pattern is considered more reliable than others and the most profitable to use. The term "engulfing" refers to a market situation where the current candle engulfs the previous one. The engulfing patterns consist of the bearish engulfing and bullish engulfing patterns. Both patterns can tell traders which direction a currency will most likely to go after the pattern is completed. The engulfing bullish patterns form when price levels of certain currencies are at their lowest points while bearish patterns will occur when the prices are at their peak.

How does one effectively use candlestick patterns to increase chances of earning? The engulfing patterns actually tell what currencies are on the downward or upward trend, which can provide a trader an accurate idea of when to trade. The best times are when there are strong indications that the trend is running its course. The trend may not be that strong but the candlestick chart must provide evidence that the trend is definitely coming to an end. In this case, the candle will have grown smaller.

What exactly do traders need to see in the candlestick pattern that will let them start trading? When traders see an up candle engulfed by a down candle immediately following it, it means that there is an upward trend and a short trade is advisable. The downward trend works under the same principle.

A profitable Forex trading strategy using candlestick patters entails timing and analysis, but it can certainly make money for traders.

US manufacturers believe retailers acting out of self-interest

LAHORE: A rift has developed between US clothing manufacturers and American
retailers over a flagship assistance policy for Pakistan, aimed at boosting
the textile industry in conflict-hit parts of the country.

The policy, contained in a bill before Congress, would allow Pakistani
clothing makers in the northern areas of the country to export their
products duty-free to the US, according to a report published in The
Guardian. However, critics say that could come at the cost of American
workers.

American retailers, such as Wal-Mart and Levi Strauss, and brand owners,
together with Pakistani manufacturers, are lobbying to expand the terms of
the initiative. They said the programme was so restrictive in the products
it covered that it was a “hollow gesture” and would not boost the current
$3.1 billion worth of annual textile exports from Pakistan to the US.

The bill, championed by Barack Obama, seeks to provide employment for people
who might otherwise be sucked into the Taliban, which pays handsomely. “If
this [bill] was amended, it could really turn things around in NWFP,” said
Afan Aziz, the chairman of the NWFP wing of the All Pakistan Textile Mills
Association.

Self-interest: However, American manufacturers and unions believe the
clothing retailers are acting out of self-interest. “It’s a flat-out money
giveaway to the retailers,” said Lloyd Wood of the American Manufacturing
Trade Action Coalition. “They will just pocket the duty savings and take
advantage of the 35 cents an hour labour costs [in Pakistan].”

Some 700,000 jobs have been lost in the textile and clothing sector in the
US over the last 10 years and output now stands at historic lows, according
to Wood. He said Pakistan’s current exports to the US would net a saving of
around $100 million a year if the scheme went ahead.

What is Search Engine Marketing?

What is search engine marketing? It is a global term that refers to all the different ways you can market a site on the zillion or so search engines out there. In truth, it is a catch all term for most people who know they should probably have a website, but not much more than that. It is like walking up to a real estate agent and saying you need a house.
f you have a business, you need a site. If you have site, you must need search engine marketing. Logically, this makes sense. In the practical world of internet marketing, however, search engine marketing is a very broad term. It encompasses a wide variety of things.

When most people use the phrase, they are really saying something else to a marketing company like ours. What they are saying is I need exposure for my site. I need to get people from the search engines to my site. Most important, I need them to buy. If this is your general thought process, you are thinking along the correct line of thought. There is, however, a problem.
Search engine marketing has a number of distinct areas. The problem, of course, is most sites should only use a certain type of search engine marketing. The role of a good search engine marketing firm such as ours is to identify those areas, explain why they should be used and successfully carry out a campaign for your site.

In general, search engine marketing is just a catch-all phrase that really means very little. If you are considering marketing for your site, make sure to get a more detailed understanding of what you are getting into and why you should do so.

What Is The Foreign Exchange (FOREX) Market?

There is a lot to discover about the foreign exchange (forex) market and you will need to understand how it works if you plan to take practical steps towards becoming a successful forex trader.

You will come across several different terms for the forex market. Forex and fx are both short ways of saying 'foreign exchange'. It may also be called the currency market, the foreign currency market, the currency trading market, etc. All of these terms refer to the same international market on which the currencies of the world are exchanged and traded.

The forex market is not situated in one particular place. Practically every country is involved so there is a possibility of trading currencies in most countries. Because of this, the market runs 24 hours a day, five days a week. The week starts on Monday morning in Sydney, Australia (that is, 5 pm Sunday EST in the USA) and ends at 4 pm EST on Friday in New York. During that time it is always possible to trade currencies somewhere in the world.

The forex market is a surprisingly recent phenomenon. Up until the 1970s, currencies had been stable relative to one another since the second world war. What was called the 'gold standard' gave every currency a value in relation to the US dollar. This system was introduced in order to maintain a stable world economy.

However, in the early 70s the USA abandoned the gold standard and the values of the different currencies began to change. Banks immediately began to exchange currencies for profit, buying low and selling high, instead of only making exchanges when they needed to transfer money from one country to another. In effect, each currency became a tradeable commodity. This was the beginning of forex trading.

The value of a currency is, in a sense, the value of the nation whose currency it is, so just like companies on the stock exchange, if a nation is successful the value of its currency increases and if it is going though a crisis the value drops. These fluctuations can be great and can happen very fast. The sums involved can be huge too. The total value of transactions on the forex market now averages almost $2 trillion dollars a day.

The market is still dominated by international and investment banks, major corporations and other large financial institutions. However, it is possible to trade as a private individual through a broker and with the rise of the internet this has become much more popular. There are now a large number of people involved in forex trading through their home computers, although because they trade much smaller amounts than the institutions, they only account for around 2% of the total forex market.

The most common exchanges involve the US dollar against other currencies (especially the euro, British pound, Japanese yen, Swiss franc and Australian dollar) but it is possible to trade any one currency against another. Many of the automated forex robots used by individual traders concentrate on lesser pairs such as the pound against the euro.

The foreign exchange market is huge and an individual trader can feel like a tiny ant dodging around the feet of elephants. But anyone can get into it if they have a little capital that they are willing to risk. Some brokers will let you start with as little as $250. Before investing any real money, however, it is best to practice with a forex demo account while you learn the foreign exchange basics.

What Are Pivot Points in Forex Trading?

You may hear that one of the handier tools in a forex trader’s toolbox is a pivot point calculator. Pivot points are one of the commonly used triggers for trading systems. If you’re new to the forex market, though, you may be foggy on exactly what pivot points are and what they can mean to your trading.

In a nutshell, pivot points are exactly what they sound like – the point at which the market is expected to turn – if it’s been going down, a pivot point is the value at which it will reverse the trend and begin to climb. If it’s been rising, then the pivot point is where the sentiment of the traders will turn and begin a downward trend. Obviously, being able to predict major movements in the money market is a valuable skill, since it hints at the where the market is moving and whether or not this is the time to trade or stick.

Pivot point trading is an especially popular method of mapping out a trading strategy. It was originally used by floor traders in the stock market who liked it because it allowed them to gauge where the market was heading with just a few simple bits of information and calculations. By knowing the high, low, opening and closing points from the previous day, they could calculate a point at which the market had ‘turned’ to head upward or downward. Pivot points can help predict where the market is going – and coupled with the resistance and support points, give you an idea how far in that direction it will go.

There are a number of ways to calculate the pivot points for the day, but the most common – and easiest – is to average the opening, closing and high points for the last day’s trading. There are other pivot points that can be calculated from those numbers as well. Before we talk about how to calculate them and what they mean, let’s define a few terms:

Pivot point – the point where the market reverses a current trend

Resistance – A high point in a market chart that recurs regularly. Generally, it’s the point where the market (or currency) will begin a downturn

Support – A low point in the market chart that recurs regularly. Generally, it’s the point where the market (or currency) will begin to climb back up.

Traditionally, support and resistance points are difficult to break through. Most of the time as the numbers approach that level; there will be a slight rebound in the other direction. An interesting phenomenon is that once a resistance or support point is broken, it tends to switch sides – a broken resistance will often become a support for prices on the other side of the line.

The most common calculation for arriving at a pivot point is:

Pivot: (High + Close + Low)/3

Resistance: 2 * Pivot – Low

Support : 2 * Pivot – High

USD/EUR Date:02/03/06 14:40 O=0.83174 H=0.83188 L=0.83167 C=0.83188

Given this data for Feb 3, 2006, the pivot points for Feb 4, 2006 would look like this:

Pivot: 0.83180

Resistance: 0.83193

Support: 0.83172

Those numbers give me some points on which to base my strategy for the day. If the market opens above the pivot point, it’s a bull market, and most advisors would go for long trades, since the direction of the market is up. If it opens below pivot, it’s time to favor short trades and quick sales.

There are two common sales strategies using pivot, resistance and support points.

Breakout Trade: When a currency pair breaks through a resistance or support point, there’s usually a surge of activity around it. Buy if the charts show a break through a resistance, sell if the rate drops below a support point.

Pullback Trade: When the exchange rate drops back from a high, most traders will buy, based on other information that’s available. It’s a tricky move, though, since the pullback could just be a temporary pause in the upward momentum, or the beginning of a downward rebound.

Using pivot points to inform your strategy in day trading is a complex subject. You’ll find a great deal written about it by various gurus and experts. These basics can help you understand what you’re reading from them.

Top 10 Forex Trading Tricks: You Won’t Lose

The foreign exchange market or forex is the largest and most liquid markets in the world. Its growing popularity can be seen by the whooping $2 trillion trades a day. While the forex can be an extremely lucrative market, it can also be somewhat complicated. These ten tricks will help insure trading success in the foreign exchange market.

First, make sure you implement a trading plan. You should develop a foreign exchange trading system that you can stick with. Having a decent strategy is not enough you need a well-developed system to effectively implement your strategies. You should start by creating a schedule of when you will do your Forex trading. Next create on organized budget to keep track of the inflow and outflow of your money. It’s important to understand that Forex trading, like any business venture, will have its peaks and slumps. You should be prepared to stick to your system despite these fluctuations to maximize profits in the long run.

Second, make plans to trade within your means. Quite simply, if you cannot afford to lose, then you really cannot afford to win either. All traders hope that the will be profitable in their investments, but losing at some point is inevitable. For this reason it is important that you invest only money that you could stand to lose. Try setting aside some saving that you can dedicate just to trading.

Another helpful hint is to trade along side the majorities. This means trading mainly on the most common currency pairs. The most common currencies are the United States dollar, USD, the Japanese yen, JPY, the European Euro, EUR, the United Kingdom pound, GBP, the Australian dollar, AUD, the Swiss franc, CHF, and the Canadian dollar, CAD. The most common pairs of currency are referred to as majors and are GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD.

Another way to insure success is to avoid emotional trading. Stick to you trading strategy and do not deviate because of gut feelings or hunches. Learn to exit the market when signals indicate that the market is about to swing in an unfavorable direction.

Learning to trust the trends is another important trick. Although currencies will always fluctuate slightly, they generally move steadily in one direction. If you are not sure on where to position yourself in the forex, following a trend is usually a safe bet.

Next, you should anticipate small losses. Know matter how well you know the market or how long you have been a trader you will probably encounter small losses. You need to expect and accept these losses as small components of a larger plan. Be ready for these small losses and put them aside in anticipation of acquiring greater returns in the future. The key to long-term success in the Forex market is patience.

Another helpful hint for traders is to avoid Forex strategies that you do not understand. You should do your research ahead of time and draw on the information from useful Forex guides and tutorials. It is important to be cautious of Forex scams. There are numerous scams popping up where companies offer to do your trading for you, these are the ones you should avoid. You should develop your Forex methods with an expert and only make trades on your own or through a licensed broker. The bottom line is making sure that you are fully aware of all aspects of your strategy and are comfortable with the risks and benefits.

Next, make sure you have an exit strategy planned out. Though you should expect small losses, you need to be able to recognize when you are in to deep. Before you jump into the Forex market you should set yourself limits on how much you plan to invest. One you determine the amount that you plan devote to your Forex trading do don’t surpass you limit. Be able to cut you losses once you realize the situation will not get better.

Detroit Free Press Patricia Montemurri column: Companies gain with teleworking

Jul 14, 2009 (Detroit Free Press - McClatchy-Tribune Information Services via COMTEX) -- Alison Gleeson manages 1,100 employees nationwide, and she's doing it from a home office in Bloomfield Hills for part of her work week.

Gleeson is a married mother of two elementary school-age kids, Marcus and Alexandria Beaton, and works as a vice president of commercial sales for information technology giant Cisco Systems, based in San Jose, Calif.

A few weeks ago, she captained a meeting while sitting in her car at a T-ball game for her son.

"It's about work-life balance becoming possible," says Gleeson. "It's about me participating in things as a mom I don't want to miss. I can attend a meeting through a mobile device. You are so much more empowered -- any time, any place."

Gleeson's experience mirrors that of some 2,000 Cisco employees, who participated in a recent survey that found that telecommuting generates multimillion-dollar savings for the corporation and contributes to high satisfaction among employees.

Gone are the days that career paths are limited by geography, says Gleeson. "You can still live in Michigan and through collaboration technologies, be part of the corporation globally." The number of companies and employees embracing telecommuting -- also known as teleworking -- is growing. People working at least 8 hours per week from home grew from 6 million to 12 million from 2000 to 2007, according to market research firm Gartner Dataquest.

Telecommuting has also gained ground in government. There are 381 telecommuting state of Michigan employees. Some 95,000 employees, or 7.6% of the federal workforce in 2007, were telecommuters. The feds view it as a tool for recruitment and retention, and as a "green" initiative that cuts down on energy and building costs, according to a U.S. Office of Personnel Management report.

"Young people are asking in their interviews how many days a week can they work at home. That's stunning to some managers, but good talent will go elsewhere if there isn't flexibility," said Debra Dinnocenzo, who authored "101 Tips for Telecommuters."

And for both workers and companies, telecommuting has proven benefits.

At Cisco, some 80% of the employees surveyed said telecommuting improved their quality of life. Cisco workers also say they were more productive while working remotely.

Cisco said enhanced productivity by its telecommuting employees was worth about $227 million annually.

"For me and my team, it's about the ability to participate in meetings without missing a beat," says Gleeson.

Traveling Geithner displays optimism

Jul 14, 2009 (The Washington Times - McClatchy-Tribune Information Services via COMTEX) -- Treasury Secretary Timothy F. Geithner is using a trip to Europe and the Middle East this week to shore up confidence in the U.S. economy and the dollar, though he warned Monday the struggle against the global recession is far from over.

"In my view, there are still significant risks and challenges ahead," Mr. Geithner said at a news conference in London after talks with British policymakers, including Prime Minister Gordon Brown and Chancellor of the Exchequer Alistair Darling. "We have done a great deal domestically ... but there is a lot of uncertainty."

Mr. Darling agreed "there's a lot of uncertainty in the world" regarding the state of the global economy.

But Mr. Geithner and British officials said that the United States and its economic partners have responded well to the financial crisis that nearly crippled world markets last fall.

"I think we have remarkably strong consensus in place on core elements," Mr. Geithner said.

Mr. Darling predicted "there is a very good chance" that the United States and world economies will recover and have sustained growth during the next few quarters.

"We are making progress, we are coming through," he said.

Mr. Geithner traveled to Saudi Arabia on Monday and later this week will visit the United Arab Emirates in an attempt to reassure the Persian Gulf state leaders that the U.S. dollar assets they hold in large quantities remain a sound investment. The two nations are the Arab world's two largest economies.

Mr. Geithner also will meet with French officials in Paris later this week before returning home.

There has been increasing talk in recent days that the dollar's long hegemony as the world's reserve currency could be under threat, with officials in China and Russia among those hinting that a new reserve currency should be considered.

But Mr. Geithner told CNN in an interview broadcast Sunday that the U.S. dollar's role as the world's reserve currency is not likely to weaken because global investors will continue to use it as a safe haven.

"When people are most concerned about risk, generally they want to be investing in the most liquid and safest markets in the world, which is still the market for our Treasury bills," Mr. Geithner said. "We want to be sure we can maintain that basic response."

The secretary on Monday addressed concerns on Wall Street that the federal government so far has ignored pleas for financial aid from CIT Group, a New York-based lender that is facing a possible financial collapse.

CIT's bond and share values have tumbled in recent days out of concern that the Federal Deposit Insurance Corp. has not allowed the lender to participate in its bond-guarantee program created last year to unfreeze debt markets.

"I'm actually pretty confident [that] in that context, we have the authority and the ability to make sensible choices," he said. "We have a significant interest generally in trying to make sure the financial system gets through this [crisis], adjusts where it needs to adjust and emerges stronger.

But Mr. Geithner declined to say if CIT will receive any additional money from the $700 billion Troubled Asset Relief Program.

"Obviously, in that case, as always, we're watching closely developments in those markets," he said.

Following Mr. Geithner's meeting in London, the British Treasury announced it will host a two-day meeting of finance ministers and central bankers of the Group of 20 nations in London starting Sept. 4.

The gathering will precede a late September meeting Mr. Obama will host in Pittsburgh of the G-20 leaders. The G-20 includes the Group of Eight industrialized nations -- the United States, Japan, Germany, France, the United Kingdom, Italy, Russia and Canada -- plus the European Union and the world's major developing economies.

U.S. budget deficit surpasses $1 trillion

Jul 14, 2009 (The Washington Times - McClatchy-Tribune Information Services via COMTEX) -- The U.S. budget deficit topped $1 trillion in June -- with three months still to go in fiscal 2009.

The Treasury Department reported Monday that the budget deficit for the first nine months of fiscal 2009 totaled $1.086 trillion. The deficit for the first nine months of fiscal 2008 was $286 billion, en route to $459 billion for the full year, a nominal record that has been smashed this year.

During the first nine months of the fiscal year, the federal government borrowed more than 40 cents for each dollar it spent.

"This is the first trillion-dollar budget deficit in world history -- that is $8,500 per household borrowed from our children and grandchildren," said Brian Riedl, a budget analyst at the Heritage Foundation.

"Under the Obama budget, America would borrow $9 trillion more over the next decade. These trillion-dollar deficits will become as routine as the high interest rates, steep taxes and economic stagnation they bring," Mr. Riedl said.

Last month's deficit of $94 billion was the first budget shortfall in June in more than 10 years, said Douglas Elmendorf, director of the Congressional Budget Office.

The evolving deficit confirms "how serious the economic downturn is," said James Horney of the Center on Budget and Policy Priorities. Revenues plunged and safety-net spending -- from unemployment benefits to food stamps and Medicaid -- increased, Mr. Horney explained. So, too, did spending to rescue the banking system and Fannie Mae and Freddie Mac, the mortgage-financing giants that were taken over by the government in September.

"Unfortunately, given the situation, the deficit is unavoidable. To reduce the deficit now would be counterproductive to the economy," said Mr. Horney, who added that the long-term budget imbalance must be addressed.

Compared with the October-June period of fiscal 2008, during the first nine months of fiscal 2009:

--Revenues plunged $345 billion, or 17.8 percent;

--Spending soared $455 billion, or 20.5 percent;

--Defense spending increased 7.5 percent to $474 billion;

--Spending on food stamps increased 36.8 percent to $40 billion;

--Medicaid spending increased 23 percent to $186 billion;

--Unemployment benefits increased 165 percent to $77 billion;

--The Troubled Asset Relief Program, which began in October, has cost taxpayers an estimated $147 billion;

--Bailing out Fannie Mae and Freddie Mac has cost $85 billion.

Both the Obama administration and the nonpartisan Congressional Budget Office project that this year's deficit will total about $1.84 trillion. Even adjusted for inflation, that deficit level is three times larger than any annual deficit incurred during World War II, according to budget documents.

The economy during the 1940s, of course, was much smaller than today's. This year's projected deficit of $1.84 trillion represents nearly 13 percent of gross domestic product. In fiscal 1943, the nominal budget deficit of $55 billion totaled more than 30 percent of GDP.

In January, before President Obama took office, the CBO estimated that the budget deficit for fiscal 2009, which was already more than three months old, would approach $1.2 trillion.

Since then, the economy deteriorated more than expected, causing revenues to plunge more steeply. In addition, the administration's multiyear $787 billion economic-stimulus package, which was enacted in February, added $185 billion to the 2009 deficit, according to CBO estimates.

The administration's May forecast, which will be updated later in the summer, projected a $1.26 trillion for fiscal 2010, which begins Oct. 1. That includes $399 billion in stimulus, 45 percent of which will be tax cuts, according to CBO estimates.

Forex Statistics

Once you become somewhat familiar with how the forex market works, and you understand to a point what is involved in trading on the Foreign Exchange Market, you would want to start to gauge market trends in order to profit from your business ventures on the open market.

The name of the game is statistics, and the first rule is that you must be aware there is no such thing as a sure thing on the forex market. While you can never be 100% sure at any given time of the next move that will be made on the market as a whole, being able to read statistics and interpret them will place you ahead of the pack in regards to "guessing" what will happen next.

Forex trading is a lot like gambling. If you can keep track of the cards that have already been played, you are more informed, statistically, regarding what is likely to be dealt next, meaning you can place a bet with greater insight than someone who has no clue what has already been played. With the forex market, if you have information as to what has already occurred over the past few days, months, or even years, you are again placed in a better position to more logically conclude what will happen next. You simply learn the pattern and follow it to the end, reaping the financial rewards.

Charts And Chartists

Wait, did you think you were going to have to research and map out the market's past all by yourself? Of course not! There are people who get paid to do that sort of work. They monitor the market hourly, daily, weekly, monthly, and yearly so that they can provide big-time traders with the same knowledge mentioned before. The more a trading company knows about the market, the more money they can make.

The best part of this is that you have access to the same information as these VIP clients. Chartists, who are essentially market analysts that publish their findings in easy to read charts, produce what is referred to as a candlestick charts. These charts are basically a combination of a line graph and a bar graph that show the trend of various stocks, indexes, or other interests over a specified period of time. Therefore, you can easily determine if the currency is on an uptrend or if it is taking a downturn, when the last major change occurred, and how long it is predicted that the currency pair will continue on the current path.

If your broker does not supply you with these charts, then you should easily be able to draw them yourself with the modern day charting software or trading platform that you get from your broker. These software platforms can draw most charts for you by entering a couple of parameters and viewing the result.

It is recommended however that you learn at least the basics of charting and statistics before you start trading live.

Forex Trading - Tips on How to Select the Best Forex Broker

Forex trading amateurs are often perplexed about which trading broker to leverage. There are few things to be considered before you invest your money and trust with a broker. Here are the top 10 aspects to evaluate before zeroing on a Forex trading broker.
Reviews and general opinions about a broker site are crucial. If you are not sure about what other consumers feel about this site, you can check out the scores of consumer reviews online. If the general consensus about the Forex trading site is good then go for it.

Customer service and protection policies are also important. Does the broker follow regulations stipulated as per Forex trading laws? What registrations does this company possess in terms of regulations and what level of consumer protection does it offer? Do they insure client funds incase of frauds or bankruptcies?
The method of implementing Forex trading transactions is also important. Are they desk-oriented, no-dealing brokers, ECNs or market makers? How fast can they execute an order? Do they execute such orders manually or automatically? How much trade size do you need on a minimum before quote requests? Are all the trade transactions of clients offset?
The overall spread of the potential broker is also crucial. The tighter the spread the more chances of volatility in capital. Do they have a variable or fixed type of spread? You can understand the interaction between slippage and spread through a reputed Forex training program.
The amount of slippage to be expected will play a role in your profits at Forex trading. Hence, you need to know the amount of slippage expected in both fast and normal paced markets.
Aspects Such As Margin Requirements Are Also Important.In addition, you should also know if this requirement changes according to certain days in the week as well as currency pairings. Points of time when margin calls are made by the broker and whether it applies for both mini and standard accounts will also be important.
The rate of commission will determine the extent of profits you make. Most Forex trading brokers incorporate this inside the spread.

Rollover policies of the broker is also essential to know. Do you have to have a minimum margin requirement to get rollover interest? What are swap rates prevalent for currency pairings in both long and short? Do any other conditions apply for getting rollover interest?
The kind of Forex trading platform used will also play a role. Is it functional and intuitive? Does it have disconnections at the time of trading? During news announcements and fast paced market conditions, does the platform remain stable? How many pairs of currencies is it possible to trade with this platform? Is there an API for automation of the Forex trading process?
Trading account specifics like minimum balance needed, trade size required and if interest is earned on unused balances etc. all are important factors for evaluation.
No matter which broker you decide to go for, you ultimately need access to reputed Forex training courses to help you with the workings of the system.

Want to retire early or just looking for additional income?
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Futures Spread Trading

How professional traders optimize profits
Futures spread trading is probably the most profitable, yet safest way to trade futures. Almost every professional trader uses spreads to optimize his profits. Trading spreads offers many advantages which make it the perfect trading instrument, especially for beginners and traders with small accounts (less than $10,000).
The following example of a Soybean-Spread shows the advantages of futures spread trading:

Example: Long May Soybeans (SK3) and Short November Soybeans (SX3)
Four Advantages of Futures Spread Trading
Advantage 1: Easy to trade
Do you see how nicely this spread starts trending in mid February? Whether you are a beginner or an experienced trader, whether you use chart formations or indicators, the existence of a trend is obvious. (If you are looking for a concept of how to identify a trend, we strongly recommend visiting http://www.tradingeducators.com/?source=Tradejuicetrading_philosophy.htm). Spreads tend to trend much more dramatically than outright futures contracts. They trend without the interference and noise caused by computerized trading, scalpers, and market movers.
Advantage 2: Low Margin requirements
Many spreads have reduced margin requirements, which means that you can afford to put on more positions. While the margin on an outright futures position in corn is $540, a spread trade in corn requires only $135 — 25% as much. That’s a great advantage for traders with a small account. With a $10,000 trading account risking 8% of your account, you can enter 6 corn spreads, instead of only 1-2 outright corn futures trade. How’s that for leverage?
Advantage 3: Higher return on margin
Each point in the spread carries the same value ($50) as each point in the outright futures ($50). That means that on a 3 point favorable move in corn futures or a 3 point favorable move in the spread, you would earn $150. However, the difference in return on margin is extraordinary:Corn futures - $150/$540 = 27.8% returnCorn spread - $150/$135 = 111% returnAnd keep in mind that you can trade 6 times as many spread contracts as you can outright futures contracts. In our example you would achieve a 24 times higher return on you margin.
Advantage 4: Low time requirements
You don’t have to watch a spread all day long. You do not need real-time data. The most effective way to trade spreads is using end-of-day data. Therefore, spread trading is the best way to trade if you do not want to watch or cannot watch your computer all day long (i.e. because you have a daytime job). And you can save all the money you would have had to spend for real-time data systems (up to $600 per month).So where is the catch?If futures spread trading is so fantastic, why does it seems that hardly anybody trades spreads? Well, it is not true that hardly anybody trades spreads: the professional traders do, every day. But either by accident or design, the whole truth of spread trading has been hidden from the public over the years.The purpose of this website is to inform you about futures spread trading. In the following we will answer the four frequently asked questions:

What is a spread?
Why trade spreads?
What can you expect when trading spreads?

What Is a Spread?
A spread is defined as the sale of one or more futures contracts and the purchase of one or more offsetting futures contracts. You can turn that around to state that a spread is the purchase of one or more futures contracts and the sale of one or more offsetting futures contracts. A spread is also created when a trader owns (is long) the physical vehicle and offsets by selling (going short) futures. Furthermore, a spread is defined as the purchase and sale of one or more offsetting futures contracts normally recognized as a spread by the fact that the two sides of the spread are actually related in some way. This explicitly excludes those exotic spreads put forth by some vendors, which are nothing more than computer generated coincidences which are not in any way related. Such exotic spreads as Long Bond futures and Short Bean Oil futures may show up as reliable computer generated spreads, but bean oil and bonds are not really related. Such spreads fall into the same category as believing the annual performance of the U.S. stock market is somehow related to the outcome of the Super Bowl sporting event. In any case, for tactical reasons in carrying out a particular strategy, you want to end up with:
simultaneously long futures of one kind in one month, and short futures of the same kind in another month. (Intramarket Calendar Spread)
simultaneously long futures of one kind, and short futures of another kind. (Intermarket Spread)
long futures at one exchange, and short a related futures at another exchange. (Inter-exchange Spread)
long an underlying physical commodity, and short a futures contract. (Hedge)
long an underlying equity position, and short a futures contract. (Hedge)
long financial instruments, and short financial futures. (Hedge)
long a single stock futures and short a sector index.
The primary ways in which this can be accomplished are:
Via an Intramarket spread.
Via an Intermarket spread.
Via an Inter-exchange spread.
By ownership of the underlying and offsetting with a futures contract.
Intramarket Spreads
Officially, Intramarket spreads are created only as calendar spreads. You are long and short futures in the same market, but in different months. An example of an Intramarket spread is that you are Long July Corn and simultaneously Short December Corn.
Intermarket Spreads
An Intermarket spread can be accomplished by going long futures in one market, and short futures of the same month in another market. For example: Short May Wheat and Long May Soybeans.Intermarket spreads can become calendar spreads by using long and short futures in different markets and in different months.
Inter-Exchange Spreads
A less commonly known method of creating spreads is via the use of contracts in similar markets, but on different exchanges. These spreads can be calendar spreads using different months, or they can be spreads in which the same month is used. Although the markets are similar, because the contracts occur on different exchanges they are able to be spread. An example of an Inter-exchange calendar spread would be simultaneously Long July Chicago Board of Trade (CBOT) Wheat, and Short an equal amount of May Kansas City Board of Trade (KCBOT) Wheat. An example of using the same month might be Long December CBOT Wheat and Short December KCBOT Wheat.
Why Spreads?
The rationale behind spread trading is one of the best-kept secrets of the insiders of the futures markets. While spreading is commonly done by the market "insiders," much effort is made to conceal this technique and all of its benefits from "outsiders," you and me. After all, why would the insiders want to give away their edge? By keeping us from knowing about spreading, they retain a distinct advantage.Spreading is one of the most conservative forms of trading. It is much safer than the trading of outright (naked) futures contracts. Let’s take a quick look at some of the benefits of using spreads:
Intramarket, and some Intermarket, spreads require considerably less margin, typically around 25% - 75% of the margin needed for outright futures positions.
Intramarket, and some Intermarket, spreads offer a far greater return on investment than is possible with outright futures positions. Why? Because you are posting less margin for the same amount of possible return.
Spreads, in general, trend more often than do outright futures.
Spreads often trend when outright futures are flat.
Spreads can be filtered by virtue of seasonality, backwardation, and carrying charge differentials, in addition to any other filters you might be using in your trading.
Spreads can be used to create partial futures positions. In fact, virtually anything that can be done with options on futures can be accomplished via spread trading.
Spreads allow you to take less risk than is available with outright futures positions. The amount of risk between two Intramarket futures positions is usually less than the risk in an outright futures position. The risk between owning the underlying and holding a futures contract involves the least risk of all. Spreads make it possible to hedge any position you might have in the market. Whether you are hedging between physical ownership and futures, or between two futures positions, the risk is lower than that of outright futures. In that sense, every spread is a hedge.
Spread order entry enables you to enter or exit a trade using an actual spread order, or by independently entering each side of the spread (legging in/out).
Spreads are one of the few ways to obtain decent fills by legging in/out during the market Closing.
Live data is not needed for spread trading, saving you $$ in exchange fees.
You will not be the victim of stop running when using Intramarket spreads.
What Can You Expect?
Here is an example of what you can expect from Intramarket spread trading. We think you may be pleasantly surprised!!

This spread was entered not only on the basis of seasonality, but also by virtue of the formation known as a Ross hook (Rh). The spread moved from -69.0 to -7.5 = $3,075 per contract. The margin required to put on this spread was only $608, thus the return on margin is more than 500%.
Here is an example of an Intermarket spread. Look at the the following chart: Would you want to have been long live cattle from December until February?

But, what about a spread between Live Cattle and Feeder Cattle?

The spread moved from -10,200 to -7,200 = $3,000 per contract. The margin required to put on this spread was only $540. The return on margin is more than 550%.
Lastly, we show you another intermarket spread. This one was made between Euro and British Pound. Although you might have made money on a Euro trade, you would have suffered from serious whipsaw during the entire length of the trade.

What about a spread between the Euro and the British Pound?

You didn’t have to be in this spread for very long in order to take some fat profits: During February the spread moved from $32,500 to $36,187.50 = $3,687.50 per contract.

Learn Forex Tips

Learn Forex Tips - Best Way to Profit With Forex - Currency Auto Trade Programs

Many beginner forex traders are drawn to forex trading by the allure of earning a good and steady income. Many start by learning through some type of online resource. Implementing these simple ideas can definitely get you some fast trading.
Using a demo account is one of the most acknowledged ways to learn forex. Tips such as this one is very easy to implement, just go through an online broker. The demo account will allow you to trade within the authentic market while vigilantly not having to peril any of your own money. As there is no substitute for experience, this is frankly the most recommended way to begin trading. Only when the confidence level is high and you are ready to make real transition, you can jump over to the real market. However, it's first suggested that you learn forex and study it for a couple of months and have a number of lucrative trades under your belt before pitching into the real market.
Currency auto trading programs are another route to take and are also very much recommended by experienced traders, chiefly to beginners to learn Forex with. These programs trade on your behalf and in your best interest. They were originally designed to cover up the gaps in the trader's hectic schedule. But since been developed, they now serve as a set of capable hands to leave your trades to.
Due to the unpredictability of the market, traders can enlist these programs as these are tied with the market all around the clock. These programs can reverse your investment during those irregular hiccups in the market trades and move the investment on to some where else.
Many people actually end up failing with forex because they just don't know which auto forex trading systems actually work. I eliminated this problem for you! I bought and tested the top 7 automated forex systems and put a review of the top 3 systems on the website

Why Trade Forex

• Take control of your own finances.Beat the returns from mutual funds, hedge funds or managed funds.
• Start-up costs are low when compared with day trading stocks or futures.
• Forex is the world’s largest market. No one can corner the market.
• With a trading volume of around $3.2 trillion dollars a day( Bank for International Settlements April 2007), no single entity can control the market for an extended period of time.
• You can make money when the market is going up or down.
• Forex markets trade 24 hours a day. There is no waiting for the opening bell.
• Technical analysis works very well and the market trends well.
• Forex offers up to 100:1 leverage but it is wise avoid very high leverage if you can afford it. Stocks offer 1:1 or 2:1.Futures offers 15:1 leverage.
• The forex market is the most liquid in the world. Traders can almost always open or close a position at a fair price.
• You can make money working only a few hours a day or week on your computer.
• You can trade from anywhere in the world where there is an internet connection.
• You can gain experience without risking your own money by using a free demo account.
• When trading stocks, there are over 40,000 stocks to choose from. In forex, you can choose one or two currency pairs and focus your analysis.

Forex Trading Techniques

1. Plan your trade and trade your plan: You must have a trading plan to succeed. A trading plan should consist of a position, why you enter, stop loss point, profit taking level, plus a sound money management strategy. A good plan will remove all the emotions from your trades.

2. The trend is your friend: Do not buck the trend. When the market is bullish, go long. On the reverse, if the market is bearish, you short. Never go against the trend.

3. Focus on capital preservation: This is the most important step that you must take when you deal with your trading capital. You main goal is to preserve the capital. Do not trade more than 10% of your deposit in a single trade. For example, if your total deposit is $10,000, every trade should limit to $1000. If you don’t do this, you’ll be out of the market very soon.

4. Know when to cut loss: If a trade goes against you, sell it and let go. Do not hold on to a bad trade hoping that the price will go up. Most likely, you end up losing more money. Before you enter a trade, decide your stop loss price, a price where you must sell when the trade turns sour. It depends on your risk profile as of how much you should set for the stop loss.

5. Take profit when the trade is good: Before entering a trade, decide how much profit you are willing to take. When a trade turns out to be good, take the profit. You can take profit all at one go, or take profit in stages. When you’ve recovered your trading cost, you have nothing to lose. Sit tight and watch the profit run.

6. Be emotionless: Two biggest emotions in trading: greed and fear. Do not let greed and fear influence your trade. Trading is a mechanical process and it’s not for the emotional ones. As Dr. Alexander Elder said in his book “Trading For A Living”, if you sit in front of a successful trader and observe how he trades, you might not be able to tell whether he is making or losing money. That’s how emotionally stable a successful trader is.

7. Do not trade based on a tip from a friend or broker: Trade only when you have done your own research and analysis. Be an informed trader.

8. Keep a trading journal: When you buy a currency or stock, write down the reasons why you buy, and your feelings at that time. You do the same when you sell. Analyze and write down the mistakes you’ve made, as well as things that you’ve done right. By referring to your trading journal, you learn from your past mistakes. Improve on your mistakes, keep learning and keep improving.

9. When in doubt, stay out: When you have doubt and not sure where the market or stock is going, stay on the sideline. Sometimes, doing nothing is the best thing to do.

10. Do not overtrade: Ideally you should have 3-5 positions at a time. No more than that. If you have too many positions, you tend to be out of control and make emotional decisions when there is a change in market. Do not trade for the sake of trading.