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Thursday, September 3, 2009

Is Forex Currency Trading Different to Currency Market Trading?

By Phil Jarvie

Forex Currency Trading and Currency Market Trading are the exact same thing, and so also are the terms 4x trading, fx currency trading, fx exchange 4x currency trading etc all referring to the exact same thing. Which makes sense really in that no one will exchange Euro for Euro except to change denominations at a bank for a retail shop's need for change. The emphasis is all on international currencies being exchanged.

Confusion about the long list of names for it comes from the fact that not many people know about it. With the Internet, investors became active and excited for share trading, options trading, warrants trading and even futures trading. However most people/investors have not really (yet) expanded their horizon to include forex currency trading.

There has always been forex currency trading, but prior to the Internet it was the exclusive domain of Governments, large banks and brokerage firms. Currency market trading then was opened up to the micro and mini forex day traders because of the widespread use of broadband internet and smart, fast and reliable software. It is interesting that most investors really only discovered stock markets when the Internet opened up all the markets equally.

The irony is that Currency market trading, even though much less well known than the stock market, is massively bigger than the stock market. In fact, the World's forex currency trading turns over more money in 1 week than the entire USA economy does in one whole year.

And it is not just the size of the total currency market trading that takes place that is impressive; it is more that it is so huge that it is beyond the ability of any Government to control it fully. There is no central regulation of currency market trading. Sure the USA Government can make laws for brokers and traders in the USA, but when bad laws are passed people simply trade from an International broker - often just an overseas branch of their existing USA broker.

It is not so difficult to manipulate the stock market as all stocks will clearly fall within one jurisdiction, and Governments will make laws that interfere with the free market. Big business, the banks and brokers, their lawyers and/or criminals can always find a way to trick and defraud the innocent, small investor. But the sheer size of forex currency trading will always be a process of matching the values of one currency against another currency. In real time as defined by the constant process of currency market trading, no one is big enough to get a fix in.

Let's assume a Middle Eastern Prince enters the market with 5 Billion Euros which he backs the Euro against the dollar. Yes, such a heavy-weight move may push up the value of the Euro by about 1 cent or a bit more over about 3 hours. But his timing had better be on the back of some bad news coming out of the USA, because the currency market trading volumes are so large that the 5 billion Euros could just as easily become 4 billion in that same 3 hours. Forex currency trading is so large that 5 billion Euro is nothing really considering the 2,500 billion euros traded each and every day, 5 days a week.

Given that big business and Governments are powerless to control or corrupt the forex currency trading market, what chance does the little guy or gal have? Every chance and the same chance as the large player does, simple as that. The only difference you will find is the points spread that bigger and smaller forex traders pay. I pay 0.9 pips anyway, so I am not concerned about that at all. My main concern is that currency market trading is a level playing field that cannot be rigged - and it cannot. So, that leaves the very smart 4x trading software like metatrader and forex robots we all have available, and the best of proven forex strategies we all have the ability to learn. We all have the power to work to a successful money management plan.

You are welcome to visit my growing forex only website where I go into much more detail about currency market trading, the many forex robots and expert advisors available, and also what forex strategy can do for your forex currency trading. - 23226

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How to Sell Gold for Profit

By Tabitha Reaves

This is the worst recession for over 60 years and as we have all had to cut corners, tighten our belts and look for ways to save cash, many people have been taking a good, hard look at where they can make extra money. Many of us have old jewelry which is simply wasting away in a drawer or a box somewhere - it is unlikely to be ever used again and it is in every sense of the word, dead weight.

Selling gold and especially old jewelry has become a boom industry in the US and around the world.

Why?

The answer is simple - in times of recession, investors look to buy gold because it is considered a stable, secure investment - gold is what backs the currency reserves of the US dollar and currencies all around the world. When economic times get rough, gold is where the smart money invests and in turn, this drives up the price of gold while stocks and shares fall in value.

Because top dollar is now being offered for gold, it makes a good proposition for gold refiners to buy in the relatively small quantities of gold and precious metals included in your jewelry collection. The issue for you is how to get the best price for the collection you are looking to sell and how not to get scammed in the process!

First of all, deal with a gold buyer who is prepared to offer you a published price for the precious metal involved - not just gold, but also platinum and silver - reputable dealers will publish a daily buy-price for metals so you can easily see what you will get for your metal and be able to compare prices with other dealers. If you cannot see a published price or the dealer is not ready to come forward with a price when you ask, avoid doing business with them - this is something which is basic and fundamental.

In addition, when you are dealing with a dealer using the internet (or indeed in any advertizing medium) you should take some basic precautions to make sure you are dealing with who they say they are! Remember, you are trusting a substantial amount of money to their gold buying process and you want to be sure you are going to receive payment from the person you are sending the precious cargo to. If they have an internet site, check the contact information and make sure you are dealing with a real company at the end of the telephone number. If you call the company and you only get a call-center or customer service staff who do not appear willing to discuss your potential sale, then quite simply, don't deal with them. You should also make sure that the address they give is a physical mailing address for their business and that it can be verified.

When you have decided who you are going to transact the business with, make sure that they provide you with secure and insured courier or mailing services so you can be assured that the jewelry makes it to their refinery and if there is a claim, you are going to be fully compensated for any loss or mistake. - 23226

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Trading Decreased Volatility Breakout (Part II)

By Ahmad Hassam

Aging Trend: This is the period of consolidation as the trend comes to maturity. Volatility tends to decrease at this stage of the trend as the momentum of the trend exhausts itself. This is the period where lot of profit taking will take place.

Both the bulls and the bears are hesitant to make daring moves at this stage of the trend. Experienced traders now know that the trend has aged and it is the best time to get out of the trend. They try to get out of their trades at this stage of the trend by closing their positions. This satisfies the appetites of inexperienced traders as they consolidate their positions by taking on the positions abandoned by the experienced traders.

This is the period of consolidation and the prices tend to stay calm during this period. Currency prices have moved by a large amount in the previous period of high volatility. The trend takes a short break and the volatility is low during this stage of the trend.

End of Trend: This is the time when the prevailing trend ends and reverses itself after some new information is revealed about a currency that changes the mass opinion. This results in the rapid adjustment of prices within a short time as the market players tend to absorb the information.

Many stops will get triggered during this stage of the trend. Especially if they have been caught on the wrong side of the market, traders become desperate to get out of their positions. Most know that the trend has come to an end. The best way to preserve their profits is to get out of the trend as early as possible. Experienced traders had already gotten out of the trend during the aging stage of the trend. Most of the traders who are trying to get out now are inexperienced traders.

There is a sharp follow through of the prices in the reversed direction during this stage of the trend. Now you know and understand that within a trend, currency prices can experience decreased volatility followed by increased volatility as the crowd psychology keeps on changing.

You must know that sudden release of a breaking economic or geopolitical news can cause a lot of volatility in the forex market. Traders with open positions during this low period of volatility are the most vulnerable to unanticipated news. This volatility continues as long as the news is not absorbed by the market. Decreased volatility can be found during trending or ranging phases.

When the market shift from high volatility to low volatility or vice versa, this time can be used to profit from the change in volatility. During this time gains can be made from the unsuspecting players and this is known as the Decreased Volatility Breakout Strategy. Deceased volatility provides an excellent opportunity to traders to prepare and profit from an imminent change from low to high volatility.

There are several technical indicators that can help you visualize the volatility in the currency prices. The success of this strategy lies in measuring the volatility of the forex market correctly.

One such is the triangle patterns. Though they maybe difficult to identify for new traders but with experience you can learn how to identify the triangle patterns on price charts. You can use triangle patterns as one of the best indicators of decreasing price volatility in the currency price charts. Combine the triangle patterns with technical indicators to confirm or deny decreasing price volatility. Two of the most useful indicators that can help you measure the volatility of the currency prices are: 1) Moving Averages and 2) Bollinger Bands.

When a particular type of triangle has been identified by the trader, a high probability trade may be in sight. All triangles show decreasing price volatility in the forex market. You can take advantage of the decreasing price volatility in the forex market through identifying the triangle formations. - 23226

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4 Points On Why You Have To Consider Trying Out The Forex Trading Software Known As IvyBot

By Mike Smith

Do you want to know how to reap huge benefits from the use of a forex software that many traders have little knowledge of? It is simply called Ivybot. I know. After reading the title of this software, you may be saying to yourself "No! Not another Forex trading software promotion!" I know the feeling, but this one is different. Some of the trading forex software programs worked in trials only to not do so well in real life trading, but you can't base your judgment on the failed attempts of other products. The question I know you want answered is "What about Ivybot? Is it different?"

Compared to other forex software, it is very similar in many respects. This program is proved to be the real deal by almost a decade of statistical testing that proves the effectiveness of this program. The reality is that Ivybot does what it says it does. Study ever since 2001 has shown no less than a 400% profit margin in general in each year that it was certified, but there is more. IvyBot offers numerous features that put it to the lead of the forex software trading pack.

1) Four trading pairs verses one - It is a reality that the majority of forex trading programs are created to look for no more than one specific currency pair. This looks for four. The inventors designed this software to particularly cope with the task of tracking down four particular foreign currency pairs. Each of these currency pairs has their own algorithm. The 4 in 1 professional Ivy bot robot code is built on a exceptional algorithm created entirely by the Ivy bot team. Its a four for one deal!

2) Unlimited Lifetime Updates - one definite way to make the conventional trading tool fails is for the market to veer abnormally off course. It is imperative that any forex robot you use will change with the way that the market is moving. Or else, the software itself can grow to be less valuable. This is not the situation with IvyBot forex system. It stays up-to-date to the most up-to-date conditions. To deal with the most recent changes in the market, it automatically updates on a regular basis with the latest algorithms.

3) Fully Automated - Every forex trader dreams of a forex tool that can help to do lucrative trades on complete autopilot. Looking at it closer, IvyBot was undeniably able to deliver. Automation allows your software set-up to trade forex in your sleep. What is amazing is that 99.9 percent of the work is already done for you by the computer. Just plug in the software into your forex account and relax, all the work is done for you.

4) It Is Totally Guaranteed - Aside from giving you a forex software that is essentially 4-in-1, the designers are so certain with their product that they are offering a 60-day money-back guarantee, no questions ever. Give it a try and see yourself. I don't know what more any forex trader could ask for..it is all here...and guaranteed. - 23226

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Understanding The Gold Standard

By Alyssa Rogers

The gold standard refers to the use of gold as the "insurance" to back what a country's paper currency was actually worth - if there was no physical asset to support the value of the paper, well, the dollar bill in your wallet was worth just that - paper. The gold standard has been in use in one form or another since the earliest days of coinage when rulers minted coins and the value of a coin was the intrinsic value of the gold or other precious metal contained within it. Stamping the head and name of the king or emperor whose treasury issued the coinage was not just a political statement as to who was boss, but also a symbol of quality control - you have one of my coins, I am saying it has this much gold included in it!

Pirates operating in the Caribbean raided Spanish treasure ships taking gold cargo back to the Old World - the problem was that their ill-gotten gains were too large a denomination to spend, especially when it came time to settling their bar tabs. As the gold was in a form which meant uniform purity and weight, the pirates and landlords of the inns they frequented would break the large standard gold coins up in to eight pieces - this is the origin of the pirate phrase, "Pieces of Eight".

In the middle of the Second World War, the Allies and most everyone else who was not on the German/Japanese side, met and thrashed out the Bretton Woods Agreement which laid out the financial foundations for the world for after the hostilities. Underpinning every country's currency was a tie to a "gold standard" - and within the range that was established a country could only issue so much currency in relation to its gold reserves. This arrangement continued until 1971 when gold lost its luster and Black Gold - oil - replaced it as the effective asset backing many of the world's currencies including the US Dollar.

The need for gold to support the "real" value of the paper currency issued meant that country's had to accumulate and maintain bullion reserves of gold. You may remember the James Bond film, Goldfinger and an audacious plot to raid Fort Knox in Kentucky. Though it was a fictional film, Fort Knox is certainly not and along with the Federal Reserve Bank in New York, the US maintains enormous gold reserves required to support the US dollar - but it is not only the US that stores gold at these locations, friendly countries with close trading ties also maintain their gold reserves at these locations to, and while the gold standard does not apply as it once did, these reserves of gold bullion still play an enormous part in the global economy and how nations do business with each other.

The last country to be tied to the gold standard was Switzerland who dropped the standard in 1999, but after the recent economic upheaval and the almost total, global banking collapse, there are renewed calls for the gold standard to be re-introduced once again. - 23226

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