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Saturday, October 17, 2009

Help Through A Forex Blog

By Bart Icles

As more and more people are getting interested in forex trading, more and more forex blogs are also being put up on the internet. These forex blogs typically contain valuable information that can help forex traders - both new and seasoned ones - in their currency trading needs. Oftentimes, these forex blogs also become community sites or places where different forex traders can meet and share ideas or questions with one another. Simply put, a forex blog can very well become a storehouse of information for many foreign exchange traders.

One of the most basic things you can learn from a forex blog is how to start a forex day trading business from your own home. While you might be familiar with forex traders who participate in big forex trades, there are those who content themselves with small currency trades. Those that make large investments to reap bigger profits often work for larger trading companies. On the other hand, those who tend to start small and would go after the small fish are typically independent traders.

You might also find it surprising to learn from a forex blog that in many cases, the most successful traders are those who operate independently - oftentimes in their own homes. But how exactly can one start to participate in forex day trading from the comfort of his or her room?

You can start by taking online courses that can give you basic currency education as well as integrated online trading techniques. These online courses are available in many websites and most of them offer free demos of their forex training courses. More often than not, the most basic topics that they will cover can include how you can analyze forex markets, the importance of currency trading, and how you can control or manage risk. You can then move on to opening an account in the very same website where you have had your forex trading online courses. You can start with mini trades just to get the hang of the market.

If software trading tools do not appeal to you, you make contact with an online broker and have yourself listed. After which, you can already start participating in forex forums or even create a forex blog of your own so you can share your own experiences in currency trading. This is also a good way of continuing your online education - you can ask for referrals as to which websites offer the best online forex trading courses. - 23217

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British Pound Currency Profile (Part III)

By Ahmad Hassam

Economically, the United Kingdom is more free-market oriented than Europe, and it tends to share a more common set of views with the United States. At the same time, the United Kingdom cant totally disassociate itself from Europe, given its history and its geography. The upshot is a currency that is affected by politics at home and on the two continents to which its destiny is so closely related.

6% of the all the global currency trading involves GBP as either the base or counter currency. The GBP/USD is one of the most liquid currency pairs in the world. The British Pound GBP is active against the dollar and the euro, offering good opportunities to trade both pairs (GBP/USD and USD/GBP).

GBP is also in the four most traded major currency pairs EUR/USD, GBP/USD, USD/JPY and USD/CHF in the world. One of the reasons for GBP liquidity is the countrys highly developed capital markets.

Many foreign investors seeking to diversify their investment other than the United States send their funds to the UK. In order to create these investments, foreigners need to convert their local currency into GBP.

GBP had one of the highest interest rates in the developed countries. Although Australia and New Zealand had still higher interest rates but their financial markets are not as well developed as UK. GBP was full of speculators one two years back.

As a result, carry traders would use GBP as the lending currency and would go long against USD, JPY and CHF. Carry trading was popular with many hedge fund managers. It is a long term fundamental trading strategy.

The BOE was forced to lower the interest rates to cope with the present financial crisis. The present global financial crisis has taken a heavy toll on the British Banks as well. There have been a number of high profile bankruptcies. UK Treasury had to intervene heavily in the market by pumping money into a number of failing banks in order to stabilize the financial markets.

Interest rates have been lowered. With the lowering of the interest rates, an exodus of carry traders took place that increased volatility in GBP. Interest rate differentials between UK gilts/US Treasuries is a barometer for GBP/USD flows and UK gilts/German Bunds is a barometer for EUR/GBP flow. These interest rate differentials are widely watched by the professional forex traders.

Indications on adopting the Euro usually put negative pressure on GBP while further opposition to Euro boosts GBP. The three month eurosterling futures reflect market expectations on UK interest rates three months into the future and can help predict fluctuations of GBP/USD.

GBP/USD currency pair tends to be more sensitive to the developments in the US economy. GBP/USD currency pair is more liquid than EUR/USD pair. However, EUR/GBP is the leading gauge for GBP strength. EUR/GBP is a more pure fundamental pound trade as EU is the UK primary trading and investment partner. GBP has positive correlation with the energy prices. You must keep these facts in mind while determining your bias for GBP as a currency trader. - 23217

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Bargain Properties ? How To Play This Game.

By Doc Schmyz

Home foreclosures and fixer-uppers have long been a focus of many real estate investors looking to make big profits. Of course, if the target property doesn't meet certain criteria, an investor can lose their investment as well as any profit that was to be gained

Use a step by step mind set. "Go by the numbers" when reviewing all the areas of the investment that you want to focus on here are a few things to think about and add to your list.

Keep in mind...this isnt listed in any particular order. Its just things to keep in mind the target real estate should meet at least one of the criteria, but not be too heavy in any other areas.

Doc's List:

WHY THE ASKING PRICE

Most investors focus on price first.

We are all looking for below market value. Buy for a little, sell for a lot. But why are they selling so low? Is it to solve one of the "3 D's"? (Debt, Death, Divorce)

What problems does the property have if any? Old cracked and faulty plumbing? Bad electric? If its an older craftsman style home those problems are very common. Is the foundation in good order? Don't forget holding costs.

In my opinion the most common over looked profit drainer is underestimating the liquidation costs of holding and selling the property. Things to keep in mind and budget into your holding costs are: commission payments to real estate agents, closing costs, mortgage payments, taxes, plus repair and maintenance costs. Also electric and water.

A poor understanding of the current market value is another major deal killer. Remember market value is an educated guess at best. No one really knows until the appraisal is complete.

Price other property in the area. Come as close to the size/style/lot size you are looking at buying.

TAKE ADVANTAGE OF TERMS AND CONDITIONS

While price and location are important; don't discount other profit leveraging tools like the terms of the financing.

In fact, used wisely, an investor can pay full price and use this positioning to negotiate lower interest rates or a smaller down payment. Over time, the rental cash flow will be in the black because of the terms agreed upon by the buyer and seller, combined with gradual rent increases and price appreciation.

KNOW THE LOCAL MARKET

Learn everything you can about the market your shopping in. What are the schools like? How close is the local hospital? Is there a local police station or sub-station? Also look at the floor plans of surrounding homes. How many bed/baths? Whats the average price in the area? What are the prices of the last homes sold in the area? Etc...Etc.

LOCATION. LOCATION. LOCATION.

If your shooting for a long term tenet or residence then location is the second most critical thing to look at...however if you have a chance to turn a good profit for a ugly house in a less than 4 star area...that profit might out shine a nice little bungalow on the beach.

DISTRESSED REAL ESTATE

Most new investors and some seasoned ones, seek out fix and flips and distressed foreclosures for the opportunity to increase the profit margin. If youre going this route make sure you have a good eye for the details and a solid understanding of basic home repair.

Distressed property is a gold mine. IF you know what youre looking at. How old is the roof on the property? How much will it cost to repair/replace? How is the plumbing? Is the foundation/slab sound? Once you have asked a lot of the basic questions...and you have an idea how much it will cost to fix/correct, do yourself a favor. Add 5% as a buffer.

Understand the ZONE

Make sure you research the zoning for the property BEFORE you buy it. If you are thinking of adding a second floor or a granny flat...is the zoning available? Make sure you know before you commit to doing anything that will add or change the SQ footage of the property.

These are often bargains because the price is based on current use. So the single unit residential is priced low while the double unit duplex could be sold higher or rented out. Harder to find as developers stay more aware of zoning allowances these days.

Watch out for "Owner conversions" where owners, aware of the zoning ordinance, have made changes without the oversight of the local building authority. Garages being converted to second units on a duplex lot are common examples. - 23217

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Forex Trading - Earn $1,000s A Day Utilizing The Top Forex Trading Robots!

By Howard G. Platt 111

What exactly is the Forex Trading Market? It is currency trading at it's best. Forex Trading is similar to the NY Stock Exchange but instead of trading stocks it is trading the currencies of most the nations throughout the world.

Forex Trading is typically carried out through a broker. Unlike NYSE the Forex market runs non-stop 24 hours per day 5 days a week. Foreign currencies are sold across local and global markets and it flows as one continuous action where currencies are bought and sold constantly. What's so unique about the foreign exchange market is that the market reacts almost instantly based upon real time events. This is what makes the market so volatile and an investors value fluctuate so quickly.

The Forex is based upon the simultaneous trading of two various currencies. The basis for the profits or losses is the Forex rate at the precise time of the trade. The Forex rate known as the "rate" is the percentage of value of one currency towards the opposite currency. Investors follow the rate very closely and they base their trades on the current rate. Let's say an investor buys 100 euros and at the time of purchase the rate was 2.075 the cost to the investor would be $207.50 US, now just three hours later the European market is swept with some bad local economic news and this causes the rate to drop to $.95, the value of those 100 euro is now only $95 US so if the investor sells he would profit $112.50. A skilled investor would know how to read the market and react accordingly.

Forex Trading attracts a variety of traders for a number of reasons, the strongest being the potential to earn massive profits within a short amount of time. There is also the leverage that can be achieved due to the low margin requirements. The Forex is an extremely large market with all the nations that are involved and this causes a fair amount of volatility. This volatile nature gives way for the potential of earning large profits on a single trade. Another advantage of the Forex is that it is not dependent upon our local or national economy which increases the investment opportunities for the traders. The ability to have zero commission trades for the short term trading draws in a lot of investors.

The Forex market is based mostly upon speculation as opposed to other types of investments. What this simply means is that with Forex Trading the investor is purchasing a particular currency for the sole purpose of trading that currency in hopes of obtaining a profit, there is no real intent on taking possession of the currency purchased. Investments such as purchasing real estate the investor is still buying on speculation of increasing the value of his investment, however the investment is typically more long term and the investor intends on taking possession.

Analyzing the movements in the market to predict future profitable trades is big business. There are many individual traders that form a business out of their study of the market. These traders will share their findings of particular trends in the market and pass their predictions along to the client base.

The two popular methods for analyzing the Forex are the fundamental method and the technical method. The two methods take very different approaches in their attempts to predict the markets future movements. Those who take the fundamental approach actually study and follow current events that take place around the world. This is opposed to the technical method with bases its predictions on the history of the markets, studying graphs and charts to help determine a pattern in the movements within the Forex Trading market.

The popularity of Forex Trading has grown tremendously over the past few years. The fast action and the capital required to trade in the Forex kept the less experienced trader from entering the market. However, due to the huge advancements in technology and the birth of the Forex Trading Robots there are more individual traders in the market than ever before. - 23217

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Focus on Coffee Commodity Trading, Check Out the Coffee Market Fundamentals

By Marianna Gomes

There is potential for coffee commodity trading observers to make some great profitable trades, after a UN food agency report pinpointed the need for global food production to increase by over 70% by 2050. Over the years, along with crude oil, coffee has been a major traded commodity, so the markets will follow closely any material change in coffee futures prices, especially when crop yields can be affected by dramatic weather changes. An important factor for this popular commodity is good rainfall, so it's not surprising that most coffee beans grow between the Tropic of Cancer and the Tropic of Capricorn.

Ideally, to achieve high crop yields growers want a temperature range of 17 to 23 centigrade, together with stable climate and encouraging soil conditions. According to a recent Cafedirect report, coffee farmers in developed countries are suffering damage to their crops. Rising temperatures are forcing coffee growers to shift to higher altitudes, and these higher temperatures encourage more disease caused by pests. Given that coffee beans are best grown with small temperature variations, clearly climate change will have a growing impact on coffee growers.

The two most important varieties for followers of coffee commodity trading are Arabica and Robusta, with both strongly featured as futures on global commodity exchanges. Brazil, a major Arabica coffee producer, is also the largest global producer with around 34 million (29% global output) 60-kg bags of coffee in 2007/8. Meanwhile, the US is both the largest global consumer and importer of coffee. Vietnam comes in second place with a 15% world share at 17.50 m bags (Robusta), while in third place is Columbia with an 11% share producing Arabica, and Indonesia comes in fourth with production of 7.0 m bags in 2007/8.

Making up about 70% of green coffee bean production, Arabica thrives at altitudes of over 4,000 ft in warm, humid climates, which along with the right soil conditions gives the bean its characteristic aromatic flavour. Most Arabica grows in the high altitudes of countries like Columbia, Brazil, Peru, Ecuador and Venezuela. The Santos grade of Arabica in Brazil is considered one of the best, with beans picked within the first 4 years of the coffee tree's life. While Robusta beans, which are a lower grade and grown mainly in South East Asia, are picked after 2-3 years, usually with Arabica there is a longer lead time of 4-5 years.

Drought can cause crop yields to collapse, and so lead to coffee futures prices rising. If rainfall is too high this can also lead to lower crop yields, with similar impact on prices. Freezing can impact a crop for the current year and the following year. This is usually a problem for Arabica varieties in the higher altitudes in Latin America. Statistics show that in recent years serious freezing has happened in one in every six years in winter (June to August) months in the southern hemisphere.

The coffee tree first produces white blossom and then over a period of two weeks to 6-9 months green cherries begin to grow and these fill out into reddish and then black cherries. Each cherry contains 2 coffee beans. Most coffee is processed using the "dry" method where the cherries are stripped off the tree and the green beans are dried and graded, ready to be shipped for roasting. A rough calculation is that about 2,000 cherries (4,000 beans) produce one pound of coffee.

Before you take some profitable trades as you embark on your coffee commodity trading activities, make sure you select a broker with an user friendly electronic trading platform. On ICE Futures US the Arabica benchmark is the Coffee "C" futures contract, and it is also possible to trade a futures contract for the Robusta bean variety through this global exchange. If you don't want to trade futures but still want exposure to soft commodities, you could use an agricultural ETF and track a soft commodity index. With these various derivatives and investment vehicles at their disposal, traders can gain exposure to these exotic coffee commodity trading markets. - 23217

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