Following Oil in Currency Trading

By Ahmad Hassam

If you want to become a good investor in forex, then you need to learn that the currency markets evolve and change with time. As the forex markets evolve and change, your trading strategies should also evolve and adjust. You will need to make a little tweak here and a little tweak there sometimes in your trading strategies in order to continue making profit.

There will be periods of low returns or losses when your trading strategies need adjustment with the markets. But once you have made the adjustments to your trading strategies, you will start making profits again. Dont make the mistake of getting stuck with only one currency pair and one trading strategy. Always look at macroeconomic events and how different currency pairs react to these events.

Now, lets discuss a trading strategy that depends on following oil prices in the markets. There are many sources of oil. Some currency pairs react more strongly than other when oil prices change. Fortunately for you, oil prices trend for extended periods. When oil prices rise, they continue to rise for several months.

Likewise when oil prices decline, they tend to continue declining for several months. Last year in 2008, we saw a major upsurge in oil prices for several months then a sudden collapse, oil prices than stabilized around $55 for quite sometimes. Some of the currencies that react strongly to oil price changes are GBP and CAD. Lets focus on USD/CAD currency pair in our oil following strategy.

United States imports more oil from Canada that any other country. The value of CAD should increase with increase in oil prices in relationship to USD. With the increase in oil prices, this means that the pair USD/CAD should start trending downward. This is an example of a trend trading strategy.

Watch for times when the oil prices are rising and the exchange rate USD/CAD is decreasing. Similarly, watch for times when oil prices are declining and the exchange rate USD/CAD is increasing.

We will use CCI, Commodity Channel Index, to trigger the trade. Watch the 14 period CCI (Commodity Channel Index) chart. It should cross above 100 and then cross back below 100. This will tell you that the buyers made a temporary upward push on the currency pair USD/CAD but were unable to turn the trend around and it is still downward. This is time to open the trade.

Enter the trade and set a limit order of 300 pips and a stop loss order of 75 pips by going short on USD and long on CAD. This setup will give you a risk to reward ratio of 1:4. This risk to reward is very good and it allows you to be wrong a few times without ruining your chances of being profitable. 300 pips mean $3000 and usually such a trade will continue for 4-5 weeks.

You can also look to trade the USD/CAD pair in the opposite direction if the oil prices start to decline. However, prolonged downtrend in the oil prices is usually unlikely. This trading strategy just depends on knowing which way the oil prices are moving right now so that you can take advantage of it. Oil prices have again started to climb and reached above $68. You can take advantage of the rising oil prices by trading USD/CAD pair as described above. - 23217

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.

Determining Where To Invest

By Owen Jones

There are quite a few different kinds of investment vehicles out there, and there are many factors, which you should use to decide where you should place your funds.

Of course, determining where you will place your money begins with researching the different kinds of investment available, determining your risk aversion, and determining your investment style and your financial goals.

If you wanted to buy a new car, for instance, you would do quite a bit of research before taking a final decision and a making a purchase. You would not think about purchasing a car that you had not fully looked over and taken for a test drive. Investing your money works in very much the same way.

You will, of course, learn as much about the investment as you could, and you would want to see how past investors had fared as well. It's just common sense!

Does learning about the stock market and investments take lots of time? Yes it does, but it is certainly time well spent. There are numerous of books and websites on the topic, and you can also take degree level courses on the subject, which is what professional stock brokers do. If you have access to the Internet, you can actually play the stock market with pretend money in order to get a feeling for how it all works.

You can make pretend investments in a pretend portfolio, and see how they fare. Do a search with any search engine for 'Stock Market Games' or 'Stock Market Simulations', although almost every online stock broker provides these services. This is a great way to start learning about investing in the stock market.

Other types of investments outside of the stock market do not always have simulators, so you must learn about those types of investments by reading about them.

As a potential investor, you must read any you can possibly get your hands on about investing, but make sure you start at the very beginning of investment books and websites, otherwise, you will quickly find that you are are hopelessly lost.

Lastly, speak to a financial planner. Tell him your aims and ask them for their suggestions. This is their job! A good financial advisor can easily help you determine where to invest your money, and help you set up a plan to reach all of your financial goals. Many adviser will even teach you about investing along the way, so make sure to pay close attention to what they are saying to you! - 23217

About the Author:

If you want to learn more about where to make your investments, please go along to our website entitled Online Stock Investment

What Are Stock Market Trends

By Gilbert Stockton

The stock market is very unpredictable. It can be a very great thing to invest in or it can be very risky and you may lose a lot of money. The best way to cut down this risk is by identifying stock market trends. It is the best way to make money in the stock market.

Finding uptrends and downtrends are not an easy thing to do but there is a lot of information out there to help you. Think back when Google and Wal-Mart were on the verge of their major uptrends, if you had spotted them early you would be extremely wealthy. There are companies on the verge of uptrends all the time.

In your lifetime you will be thrown many opportunities and it is up to you to act. The opportunities come less and less later in life but if you act on the right one then your set for the rest of your life.

When a company makes a major impact on its market with new technology these are the type of companies to invest in. Ones that are creating their own industry by themselves.

Despite keeping your eyes open for new products, this doesn't mean that you should jump on every bandwagon that comes along. Usually common sense can aid you in your decisions. This can be compared to the people who bought Beta a few years ago. Now you can't even find one if you wanted to. Don't invest in something that doesn't have any practical, long-term applications.

When looking at a stock check out its volume compared to the price. If there is a lot of stocks being traded and the price is high or going up then the uptrend will continue. Try to identify stocks that have a huge demand. - 23217

About the Author:

Learn How To Buy Penny Stocks with the best Penny Stock Software.

Online Stock Broker Reviews & Tips

By Anne Durrell

Anyone need an online stock broker if they are interested in taking charge of their own investments.

You will make more profits on your investment since you spend less and the fees are become reasonable by having a stock broker.

You better shop around to find out which online stock broker offers the best deal for you, since many of them may be differences in the fees they charge. At this time online stock broker like TD Waterhouse, Etrade, and Scott Trade are the most reliable online stock broker make people choose.

I want to start online trading with a small amount of investment to start, you better find one that won't charge you for having less than a minimum balance required.

It is important to learn carefully at the core competencies of online trading companies whose stocks you are bought from and be sure to pick the ones that will pay off for you.

If you plan to buy stocks for the long term, then you will be fine. It's very important for everyone who want to start doing investments on stock market to always plan in the long term.

When you are doing stock trading online, it is important to not panic and sell at loss when you see the stock goes down, cause even solid companies will have their ups and downs, but if they have a strong competencies, then they will usually will recover and their value will return.

Unlike putting money in the bank, when you put investments on stocks, your money is actually at risk and and you could lost it. Lots of Investors who put big money of their retirement into stocks can tell you all that is so true.

So never invest the money into stock market if you are going to be needed to pay your morgage the next month. If you take out all your money and invest them all into the market, you will certainly lost out. - 23217

About the Author:

Anne Durrell comes from Stockton, California. She has written a number of articles on online trading . Please also check out her other guide on online stock trade tips, and how to trade stock guide!

Online Forex Software Applications

By Bart Icles

If you are already doing active Forex trading but haven't yet tried a free Forex Buy/Sell Indicator, then may you want to try this very useful tool to help you keep constant track of Forex price variations. This can you give vital information on currency trading as it happens, and will aid you in determining what course of actions to take on particular deals you are currently involved in, or for your future trading investments.

With a Forex Buy/Sell Indicator, you are ensured that you have all the facts at your disposal, and you don't have to rely on unreliable guesswork to influence your decision making processes; with this application, you are always assured that all your trading actions are based on solid, hard facts, backed by relevant, and historical data giving you utmost confidence and convenience in your trading business.

The Internet is teeming with many websites offering free Forex Buy/Sell Indicators for you to choose from. These sites provides the specific software to help you decide whether to buy, sell, or to stay on a particular pair you are presently trading in.With the variety of choices available, you can easily try them out, and find one which is best for you and your particular needs.

One of the more popular software for Forex Buy/Sell indication is the Doubling Stocks which, other than helping you in making trade decisions, it allows you complete personal control over the trade transactions involved. Since this is not one of those automatons, you will have the assurance that whatever decisions need to be done are done by yourself and no one else. This software comes with a free trial demo package, complete and detailed in every aspect fit for beginners and experienced traders alike.

Besides these free Forex indicators, you can also find more relevant sites which offers similar yet with better features software applications for a price. The software's that are being provided are much more superior and with more additional features not available in the free sites. One such popular application is the Forex Autopilot or FAPS, which is an automated trade application software that works in tandem with you. All that is required from you is to input the basic parameters in your chosen trade and the robot will take it from there.

Whatever you decide, it's always a wise move to try out all Forex Buy/Sell Indicators, free or for purchase, and Forex Robots before finally deciding what software to use in your actual trading. This way you can judge which one gives you the most accurate and correct data thereby giving you the freedom and confidence to trade profitably in the currency market. - 23217

About the Author:

Forex trade starts with a desire to learn and a drive to become a great trader. Learning to trade forex takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.