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Friday, October 30, 2009

The Basics of Soaring Gold Costs

By Jason Mixner

Why is the price of gold continuing to rise? Why, if the fundamentals are low enough to be negative, are the prices of some commodities skyrocketing? Gold has actually reached $1007 an ounce, the highest it has been since March 2008. That means there has been a 12% increase since April 2008.

What are the reasons for this? You might be tempted to think its because of the basics, but its not. The World Gold Council published a report that states craving for gold accessories has declined by 22% and industrial uses for gold has declined by 21% since 2008. The only component that has remained high in the current gold arena is speculation, which has grown by 46%.

In addition, gold is thought to be a way to fight inflation, which is why a lot of people are drawn to this commodity. However, when looking at specific data published by the Department of Labor, the Gold Consumer Price Index dropped by 2.1% in twelve months. This indicates that inflation has not occurred. You might be wondering what people are worried about then.

Because the Federal balance sheet is getting larger, the currency it is based on is losing it's value. Deflation will only cause our currency to further lose it's value, and inflation is not a pleasant option; it appears that either way things go, gold will benefit.

The US interest rates are low which is also a large factor when it comes to supporting gold. Consider the London interbank dollar rate (which is the method used by banks to charge other banks for loans) that has fallen to an unprecedented low of 0.314%, meaning it is down from 4.8% in October of last year. Unlike bonds, gold does not earn interest, which means there is an opportunity cost associated with having gold. But with the dollar worth as little as it is now that opportunity cost is rendered insignificant.

What this means is that the fundamentals have absolutely nothing to do with the high price of gold; it is dependent solely upon financial speculation. This means that there is absolutely no way to know what is going to happen to the price of gold in the future. - 23159

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Learn Forex - What It Demands From Everyone

By Bart Icles

The task of learning everything about Forex can be very daunting and confusing for most people, so much so that with this initial impression makes them see the entire process as a hard and complicated endeavor to start, much less finish. To help those who fall under this area, one of the best and helpful ways to learn Foreign Exchange is by enrolling in a full-time Forex educational program. Another way to help facilitate and ease Forex is to read Forex books. Doing so will require from you most of your free and extra hours reading all and any relevant information on Forex which will let you learn all the matters on the subject.

Another effective way to get information that may not be found on books and other medias is by learning how to actually do active Forex trading from Forex brokers and legitimate trading institutions. Whether you choose to do one or all of the above, learning Forex requires diligent and dedicated effort on one's part. With Forex being the largest global market in the entire world, and where trading happens non-stop and in a real time environment, mastering it will take some time to do - but anyone who is focused on becoming a successful Forex trader and Forex investor, sacrifices have to be made.

When doing trading, it's important to keep in mind at all times that the nature of trading Forex is speculative in nature. So, it is vital to learn which markets and the traded currency pairs are the most relevant and important ones when it comes to learning Forex. These markets may be the New York, London and Tokyo Forex markets, and the respective currencies: the US dollar, European euro, Japanese yen, British pound and the Swiss franc.

For someone eager to learn about Forex exchange, one of the most trying and testing part is the actual or real time trading conditions. The initial part is usually the hardest when the neophyte trader needs not to get confused and get rattled when the time comes to close a transaction and make decisions - quick and decisive, and that have to be done in a split seconds time. But if one has been doing what the Forex instructors have been teaching and learning all the basic Forex lessons to heart, the chances of success get higher compared to someone who only depends on his skills and instincts.

Together with having a good grasp and understanding and knowledge about Forex combined with some patience, diligence and fortitude, what follows when doing Forex trading will be most fulfilling and rewarding. - 23159

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The Forex Roboteer - Simplified Successful Trading!

By Howard G. Platt 111

Have you heard of Robert Parsons? If you have not, then you need to know that he is a brilliant trader of fifteen years, and he is known for inventing awesome trading software and automated services. His skills abound in the forex trading market.

Robert has fifteen years trading experience, and his new product is the "Forex Roboteer". This is his dream robot, as it runs a fully automated and optimized system 24/7.

Robert became tired of manual trading in order to maintain and increase his daily trading quotas. He also became tired of watching his computer screen at every waking moment to see changes in the trading market. Optimization had to be done on a regular basis, sometimes more than once a month. So what could he do to continue his income and trading improvements yet achieve more free time and avoid the constant watch?

The Forex Roboteer is a wonderful little gem: it is fully automated in calculating easy risk criteria, "trailing the stop" - or effectively managing trades that are already open, and charts and records implemented to note performance of brokers and enable stealth functions when they become needed.

He is currently offering the Forex Roboteer at a discounted price of $97 as opposed to the original $297, with an added bonus offer of the automated optimization function for $47. It includes the Roboteer E-book (Roboteer EA copy) and your own trial Meta Trader account. This license includes a live trading account and lifetime updates for free! You will be subscribed automatically to the Fellow Traders Newsletter.

Your program can be instantly downloaded upon payment. You will be able to try this program absolutely risk free for eight weeks (56 days)!

This system is usually $297, but for a limited time, Robert is offering it for a fabulous $97, with a $47 offer for the optimization feature. Robert guarantees his product, and this is because he knows it works. He is still using it, and he is amazed at the daily results, as well as the fact that he does not have to do anything!

If trading is a venture that you are new at but good at, and you are discouraged at the constant trade watching, then checkout the Forex Roboteer. It is also an awesome tool for the experienced online trader. He is an expert trader and developer, so you can be as confident as he is in its awesome functioning and potential! Get your trading geared for complete automation and full optimization; sit back and watch your earnings grow by leaps and bounds - 23159

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Stop Loss Placement

By Ahmad Hassam

The market is always ebbing and flowing. Its like the waves in an ocean. The market goes in one direction. It has a correction. Then it continues back in its trend direction. It has another correction and so on. Even in sideways or choppy market, there are ups and down in the price action.

You should learn how to ride these waves. You need to understand how the price action in a market takes place. Price action in the market is like the continuous ebb and flow of the tides. You must learn to ebb and flow with the tides in the market. Setting stops on the key levels of price support are crucial. These key support levels represent significant market realities occurring with enough trade volume to warrant a stop loss level.

How do you reduce the possibility of getting stopped out of a perfectly good trend by the normal ebb and flow of the market? The market will continuously fluctuate. The answer lies in the current price, volume and volatility of the market.

You will need to ensure that your trading system and approach take these factors into consideration so as to allow your stops to ebb and flow with the markets. The stops need to protect you from risk but they also need to allow the market freedom to fluctuate.

The market will tell you where to set your stop loss if you know how to listen to the market. To choose a random exit that does not include the crucial information the market is giving you at any time is ignoring what the market is telling you.

Never ever use an arbitrary dollar amount like, I will get out of the trade when it goes against me $200. You need to learn how to identify the correct stop loss based on the market dynamics. Then learn to adjust your trade size to manage your dollar loss.

How many risks there can be when you enter a market? A stop loss protects you from different types of risks. The value of having the stop loss in place prior to entering the market is that you can unemotionally determine the best exits possible for the different types of risk like the trade risk, the market risk, the liquidity risk, the margin risk, overnight risk and the volatility risk.

The position of your initial stop should be based on the rule of 2% risk on your trading account. For some advanced traders it is sometimes beneficial to risk more than 2% of their trading account on a single trade. However, the amount these traders risk must be carefully calculated depending on their proven historical performance statistics.

Placing stop loss correctly is an important part of the money and risk management program. One of the greatest challenges for any trader is to finally come to the point where he/she firmly believes that a sound money and risk management program is vital. Remember the saying that there should be some method to your madness. Learn the yin and yang of trading. - 23159

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Learning Forex Like It's Easy

By Scott McDonald

Starting out learning forex it was soon realized that this learning can be a long process. Spending endless hours and months of work trying to perfect method after method It was taking longer than I wanted. I needed something that would push me ahead and give me an edge over the average trader. I soon figured out what the big traders used to get ahead of everyone faster than ever. This one method has made me a tactical trading machine.

If you are learning forex from the start, be sure you don't easily give up. This industry is a bit difficult for a reason. If you are persistent you will achieve, if it was easy everyone would be doing it. Think of success as long term, this is more realistic. Once you have a routine of time that you put into trading, it will only be a matter of time before you succeed. This one method that I added to my trading tactics has delivered extraordinary results and has doubled my trading account on a monthly basis!

Learning forex can be a never ending process as long as you try to learn new things and test them out. Being familiar with forex terms is a good start but in order to trade well and beat the average trader, one needs an edge. Imagine all the traders that go off of the free information on the internet, they aren't a huge success reading up on the free info, they are average. In order to take your trading past that level you have to pay for the good information. The cost of finding out this one method was nothing compared to the profits it made in the first week!

Learning forex can be hard when starting out with no prior knowledge. Getting familiar with the forex terms and lingo is essential before even considering a trade. Once you become dedicated the learning process accelerates and you will be steadily learning. I find that the mind starts to figure things out quicker the more you learn on a subject. After adapting this one method to my trading, it was not long after I was able to quit my day job.

Aren't you are sick of learning forex basics? Trust me you need to get the information that takes your trading to another level all together. Once I discovered that I needed an edge, I looked for the best one that few knew about. Using the scalping style of trading, I needed something that could push me further ahead of the rest. I soon discovered this one method that the pros have been using for years and making millions on, after adapting it to my trading I soon became a dominating trader! - 23159

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