Using Currency Market to Build Wealth

By Fred Todle

Forex trading has become one of the most popular ways to make money. The recent turmoil in the world economy has shaken the confidence of many workers who daily face the concept of layoffs. No company has been left unscathed by the crisis and even the most stable companies have announced restructuring plans. Because of this many are wondering how long they will keep their jobs and are looking for ways to supplement their income.

There are many ways to supplement one's income. The Internet offers a myriad of ways to do so while keeping one's current day job. These programs have become immensely popular because of the financial freedom that they promise.

One of the new ways of making money for many individuals is forex. Forex wealth building has quickly moved from being a past-time to a full-time vocation for many. Strictly speaking, forex trading is not a new phenomenon. Banks and other large multinational corporations have been trading in forex, which is essentially the trade in forex currency.

Only major banks and large multinational corporations used to trade in foreign currency. This is because they had the resources and knowledge of the markets. But now ordinary people are trading in forex via specialized software that has emerged. That means other than the large companies and banks, ordinary people have now jumped into the forex wealth bandwagon.

Over $4 trillion dollars is traded in forex daily. This is a very lucrative industry and those that have insider knowledge as to its workings have become fabulously wealthy. Many think that forex trading is similar in many ways to stock trading. While the fundamentals somewhat similar, there are major differences. These differences accrue from the fact that forex prices fluctuate more than stock prices and those that deal with forex have a say to the prices that are set. For instance, those large banks which deal in forex to the tune of millions of dollars have a say in price-setting. When it comes to a convenient way to build wealth, forex is a great way of doing it. Ordinary people are diving into the business in droves and are realizing substantial profits. One thing that helps tremendously is software. With special forex trading software, it is now possible for amateurs to trade like pros. The insider workings of the markets is no longer the sole preserve of wealthy multinationals.

The best software is the Forex Wealth builder. This is also an extremely convenient way to build wealth in an easy-understand flow. Even an amateur with little or no knowledge of forex can now get their skills polished in forex trading. The system even allows for someone to place a test trade to test how everything worked. For people who are just starting out and want to test the system. It also allows one to easily work at their own pace and can even keep their current day job. This is all while watching the profits steadily grow. - 23217

About the Author:

Author is writer and regular contributor to Forex Trading Guide, a website with resources and information about forex market. One of the most popular FX trading post there is Managing Forex Trading Risk.

Techniques Of Fibinacci Sequence On Trading

By John Eather

Fibonacci was the great mathematician from Italy. He founded the new sequence of numbers and it was named after him called as fibonacci. The 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377,610 etc are the numbers of this sequence which has the starting of 0 and 1. Each number in this sequence is the sum of the preceding two numbers.

While moving forward with the larger numbers in the sequence, the division of the two closer consecutive numbers results in the golden ratio. And this golden ratio's where used by trading stocks , they produce primary and secondary results. Onward direction refers in the primary result and opposite direction refers the secondary result.

In primary trend,the most common Fibonacci retracement levels are 38.2%,50%,61.8%.These standard levels are used by most basic stock charting applications.These Fibonacci retracement levels act almost as magnets once the countertrend rally takes place.Apart from above three there are few other levels that can provide resistance.These are 75%, 78.6%, 87.5%, and 88.7% retracement levels.

The common rule of thumb is that when the 50% retracement level is taken out,the four levels mentioned above become magnets to attract price.The price action must be analyzed by those who understand the working of these levels.Prices never move in a straight line. Stocks, futures, forex,all instruments which are liquid,will often retrace in Fibonacci proportions,and advance in Fibonacci proportions.The more the occurence of this event can result in profitable trades.

The charts of price scale and time scale can be enhanced with the applications of Fibonacci numbers. With the few simple indicators of Fibonacci ratio, can be used to determine robable price turning points,optimum entry,exit and stop-loss levels.

Then use price reversal pattern recognition after identifying the primary trend, to coincide with the fibonacci retracement level to acknowledge that the counter trend move has been over. Then to know the actual lows and double bottom or break through that level look for stocks.

The trader must have the awareness of the international markets since "risk arbitrage" in the market situations mainly in "forex trading". For assistance "forex signal trading" can be used by the trader. While performing "forex rading" the currency of one nation is being moved to the other nation, so the trader must be aware of that.

For beginner traders it might be too complex for using the applications of Fibonacci towards trading and takes time to make him perfect. These Fibonacci retracement levels are being used by many beginning traders. And it is also used by the advanced traders also to become a self-fulfilling prophecy. - 23217

About the Author:

Check out John Eather's Free eCourse on Forex Trading and discover how to Become Financially Successful. Click on http://www.moneymakingfxtrader.com and find out more info regarding Automated Forex Trading.

How Can Gold Make Your Small Business Rich? Benefits To Buy, Sell And Trade Gold.

By Kirk Richardson

A small business faces the same hurdles as a large business and this is no more the case when it comes to investing. In order to keep your small business afloat you need an investment portfolio that is secure and trustworthy. Many people will look to the stock exchange for investment options, which, as weve all seen, is not always the only, or the smartest option. One of the best ways to secure your small business future is by adding gold to your investment portfolio. Trade, sell and buy gold alongside your other investments and you will soon discover why its such a smart investment move to buy gold.

So why is it so smart to buy, sell and trade gold as part of your overall small business investment portfolio? Here are four good reasons why:

- Gold can protect your small business against the stock market crashes. You cannot predict when the stock exchange is going to crash and how your companys stock is going to perform; however, when you buy gold bullion, gold futures or any other type of gold, you are giving your company another option.

Finally, lets look at the question of protection from inflation. Gold and inflation go hand and hand which makes it easiest to know when to buy gold, when to sell gold and when to trade gold.

- Gold will also diversify your portfolio. Just be careful to buy, trade and sell gold that is not closely connected to your stock exchange companies. After all, if they are connected and one falls, then both will most likely fall.

- Gold is also easy to predict thanks to both inflation and oil prices.

Gold and oil have been on the same path in regards to price value for many years. In fact, you can get a good indication of the value of gold simply by watching the oil prices. When oil is up, then so is gold.

Knowing how gold works and when to buy gold, and knowing that, like real estate, gold will continue to rise in price over the upcoming years, is a great advantage to small business investment. Buy gold now and invest in a profitable future for your company. You wont regret making this move. - 23217

About the Author:

As a small business investor choosing to buy gold, or trade gold is choosing to secure your companys financial stability for many years to come.

Specialize In Trading US Dollar (Part I)

By Ahmad Hassam

You are a currency trader. Which currency pairs are the best for trading? Focus on the four major currency pairs EUR/USD, GBP/USD, USD/CHF and USD/JPY. Consider becoming a specialist in USD. Yes, its true! You should become a specialist in trading the greenback.

Each currency pair actually is a combination of two currencies. So if you are short in GBP/USD then you are in fact selling the GBP and buying the USD. In each of the four major currency pairs, USD is part of each currency pair.

This means that you should study and understand the fundamentals that drive the US Dollar and the US economy. You should also understand the workings of the Federal Reserve System (FED). Then you have done your homework. Now you can trade any one of the four major currency pairs as all of them depend on USD.

These four major currency pairs are the most liquid pairs and involve the vast majority of the trading in the currency markets. You should think like this, majors are the most heavily traded pairs and US Dollar is half of each major pair. If I can understand what drives the USD, it will have a huge impact on my trading profits.

The only thing you need to determine is your bias for USD. What do you think; USD will weaken or strengthen in the near and medium term. Then apply that bias to the major currency pairs.

Just a small reminder, when you buy a currency pair, you are buying the first currency and selling the second currency in the pair. Suppose, your bias is that USD is going to strengthen. You can go long on USD/CHF and USD/JPY. You can go short on GBP/USD and EUR/USD.

One bias, four trades! But each currency pair will react differently to USD. For example, if Euro is also strengthening. The currency pair EUR/USD will move less with USD also strengthening as compared to USD/JPY if JPY is weakening.

Lets say you can only afford to trade one standard lot. You have a bearish bias for USD. You can consider going long on either GBP/USD or EUR/USD. What pair you should trade? Which one!

Take a look at British Pound (GBP) and the Euro (EUR) both at the same time. You should trade the stronger currency. Find out which of the two currencies is getting stronger. You can find that by taking a look at the EUR/GBP cross charts. If the EUR/GBP cross chart is going down, it means EUR is weakening and GBP is getting stronger. You should choose GBP/USD pair for entering a trade!

You should always evaluate the currency correlations for the major currency pairs in every trading plan that you create. Correlation is determined by what is known as the correlation coefficient. Correlation coefficient always ranges between +1 and -1. The correlations between the currency pairs are dynamic and can change any time. So you need to calculate the correlations at least on weekly basis to give you a fair idea of how the correlations are changing. - 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.

Learn Forex By Avoiding Mistakes Other Make

By John Templeton

So you want to learn forex? Well, that means you have to make an important decision. You have to choose what kind of analysis you are going to use. You can either decide on technical analysis or fundamental analysis.

I'm sure you can find a few traders who are equally great in both categories but for the most part, traders usually stick to only one form of analysis as their MO.

However, there are still plenty of forex traders who decide not to choose either of the methods. This sounds completely irrational but most would rather trade from the gut than really study how to trade market properly, so you can enjoy long term success in it.

You may laugh, but there are many traders who dont really grasp just some of the basic fundamentals that come with news events. To give you an example, there are many traders who couldnt even tell you the significance of NFP numbers or unemployment numbers. Its sad but true.

There are a ton of traders who still don't know if a rise or fall in interest rates is good or bad for the value of their currency.

What makes this even worse is the fact that many traders never really learn about the trading the forex market from a technical perspective. To some of these traders, the entire idea of using technical analysis is to put every single indicator on your chart, and somehow hope that your indicators are pointing you in the right direction.

The honest truth is that the vast majority of indicators will not ever provide any kind of proper technical analysis. The big reason for this is because they are inherently lagging. If you want to know what has already happened, then they are pretty good. But if you want to know what will happen, it doesnt provide much help.

If you are really serious about learning to use technical analysis, then I strongly encourage you completely get rid of your indicators start learning about price action. - 23217

About the Author:

To learn forex trading, make sure to check out this website on trading with the trend.