Bollinger Bands - An Essential Tool For Bigger Profits

If you have read our article on standard deviation of price you will understand why this concept is essential for all traders and a great way of applying the theory is the Bollinger band.

Bollinger bands are simple to use and are available free on many chart services on the web and will give you a greater insight into market movement and trading for profit.

Lets look at them.

Bollinger bands will help you how to do the following.

1. Predict big trends

2. Spot trend changes

3. Time market entry with greater accuracy.

What are Bollinger Bands?

Bollinger bands are volatility bands drawn around a simple moving average in the center giving you three lines in total.

Bollinger bands are calculated using the standard deviation of a price over the exact same period as moving averages and plotted as lines above and below the moving average.

Moving averages are used to identify the underlying trend and are the middle band.

Bollinger bands then combine this moving average with the volatility of the individual market to create a trading envelope the standard deviation.

The distance between upper and lower Bollinger bands simply give you the volatility of the market traded. The greater the distance the upper and lower bands are the more volatile price of the market traded is.

Bollinger Bands Work

In any market, traded the price rises slowly over the longer term. Prices may become volatile in short periods of time, but will normally come back to the longer term moving average which is defined by the centre band.

The center band thenormal value of the market traded that people are used to paying over time i.e it reflects the supply and demand fundamentals.

The volatility of the outer bands shows how volatile prices are and how far away price is from normal value. Short term price spikes tend to be short term and are normally caused as much by trader psychology Bollinger bands can therefore help with the following.

1. Spotting New Trends

When a market makes trades in a narrow range, the Bollinger bands are also narrow and close to the central band this shows a market with low volatility.

This can be a warning that a trending move is about to start.

When prices break above or below the upper or lower band, a signal is given that a trend is about to develop and a trader will go with the break.

2. Timing Entry Levels

The Bollinger bands can when a trend has started help you get into the trend with good risk to reward on a price retracement.

Look for pullbacks to the center band and enter in the direction of the trend.

3. Market Turning points

When the price touches the top of the Bollinger band and pauses a return to the middle band is on the cards (especially in the short term) as prices have moved to far to quickly.

If the price touches the bottom of the Bollinger band and momentum does not follow through the opposite scenario is in place i.e. a buy signal.

Bollinger bands are a great tool not only for warning of a trending move but they will also help you time trades within the existing trend and even help you generate short term sells and buys within the prevailing trends (very useful for swing traders).

Standard deviation of price as a concept of price works and the Bollinger band helps you put the theory into practice.

As with all indicators it does not work all the time and needs to be combined with other tools.

We favor simple trend lines and the best momentum indicator of all - the stochastic indicator which will help you filter out false signals.

Check out Bollinger bands and get a deeper insight into market movement and you will find once you use them you wont trade without them.

MORE FREE BETTER TRADING INFO

On all aspects of becoming a profitable trader including info articles, free systems and PDF downloads and an exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html

5 Steps To Becoming A Stock Market Guru

It has occurred to me that many of the readers of this article may be interested in a career change. If so, I suggest that becoming a stock market guru may be worthy of your consideration. It's a job that -- if you follow my advice -- pays extremely well, doesn't take much your time, requires almost no experience, and can potentially bring you fame and fortune.

I have been observing market gurus for many years and have noticed that there are certain traits that the successful ones have in common. So to get your new venture off to a roaring start, I'm going to tell you exactly how to be successful as a stock market guru.

1. First of all, you must do something to get the attention of the financial media. The way to do that is to make extreme predictions. No "the market is going up 10%" or "down 5%" kind of forecasts. You have to say things like "the Dow is going to 36,000" or "button down the hatches, the market is going to crash any day now."

   The best way to decide whether to be bullish or bearish is to measure the mood of the public. You will be much more popular if you're wildly bullish at market tops or wildly bearish at market bottoms. You want to tell people what they're already predisposed to believe.

   Also, you can never change your mind. The media doesn't like that. So be a perma-bull or a perma-bear. But whatever you do, never, ever waver from your original stance.

2. After you have decided whether you want to make a living being extremely bullish or extremely bearish it is very important that no one remembers when you first made your original prediction. This one is going to be tricky and requires some skill. Don't ever let anyone pin you down on timing issues. The way to do that is to just keep repeating your prediction over and over again until everyone forgets how long you've been making the forecast.

   For role models, watch the politicians. They are experts at not allowing anyone to pin them down on anything that they prefer you not to remember.

3. You must repeat your market prediction loudly, often, and with extreme confidence. When the market goes against you, simply keep repeating that you're very confident of your stance and you have no doubt that the market will go your way very soon. Again, you must make people forget about timing issues and the best way to do that is through repetition.
4. The market will eventually go your way. It may take years, but it will happen. Now listen closely -- whenever the market finally goes your direction, no matter how small a move it is, proudly declare victory. I mean shout it from the roof tops. You were right all along and it's all because of your astute analysis.

   Do not make any mention of when you first made your original market call. If you are cornered and you must make a comment about your entry point, just say that you have been averaging into your position for quite some time. That way no one will know that you actually lost a lot of money.

5. Speaking of losing money, never follow your own predictions by investing your own funds. Otherwise, the income that you make as a famous guru will be taken away from you by the market.

Good luck in your new career. And when I see you on CNBC promoting your new book -- Boom Times Ahead: Dow 38,437 or How to Get Rich During the Coming Depression -- I'll know that you took my advice to heart.

Copyright 2005

Larry Holmes invites you to visit http://www.smart-money-report.com/ Your common sense guide for financial and investment success.

Part One: Will Chinas Coalbed Methane Projects Make a New Energy Billionaire?

Even the enemies of Randeep S. Grewal admire his business savvy. Few might be surprised if the CEO of Green Dragon shows up some day on the Forbes magazine list of billionaires. His companys recent share offering on the London Stock Exchanges AIM, commencing with a market capitalization of US$525 million, was quite the bold stroke, raising a few eyebrows. Green Dragon placed a bit more than 4.5 million shares, less than 5 percent of the companys outstanding shares, to raise $25 million. Randeep Grewal kept the remaining 95.2 percent of Green Dragon for himself.

Upon the companys admission to the AIM market Grewal remarked, 2007 promises to be a landmark year for CBM and its contribution to the Chinese energy supplyThis listing is an important and timely milestone in our growth driven strategy. The last time Grewal stooped to deal with the minor annoyances of the capital markets, he personally bought up all the shares of Greka Energy Corp, then trading on the NASDAQ. Shareholders loved him he paid a 69 percent premium for their shares in 2003. Greka delisted from NASDAQ and deregistered with the U.S. Securities Commission.

Since then, its been more difficult to track Grewals latest accomplishments, but based upon the price of oil, his privately owned fiefdom is likely flush with cash. In a 2002 news release, Grewal revealed the then-public Greka Energy owned 800 million barrels of recoverable heavy gravity oil, which is ideal as feedstock for his asphalt refinery. That year Grekas throughput was 3400 barrels of asphalt per day. According to ABC News, the state of California paid $359/ton for asphalt up 61 percent over the past year. High gasoline prices are driving major oil companies to squeeze more gasoline production out of their crude oil. In any event, Grewal simply gets wealthier with every new barrel of asphalt or crude oil his company produces.

At least Green Dragon Gas is now publicly traded, offering shareholder participation. But, few shares are available to the public. Grewal may be generous to shareholders at the end of the day, but hes not parting with his shares this early in the game. In his filing statement with AIM, the company noted that issuing further shares to raise additional cash would come as a last resort, or more delicately stated, as appropriate under the circumstances. Grewal would first turn to debt financings and other measures before offering shareholders additional liquidity.

It is not an accident the share price of GDG, which opened for trading at US$5.56/share quickly rose to a recent high of $6.60/share. A close study of Grewals last company explains the high confidence in Green Dragon Gas. Not to be confused with his previously named Grewal Energy, which is now called Greka Integrated, Green Dragon Gas is the parent company of Hong-Kong based Greka Energy. They hold five CBM production-sharing contracts with Chinas state-owned CUCBM (China United Coalbed Methane Company). Green Dragons contracts are upon massive tracts of land (more than twice the size of Rhode Island), which could potentially host 16.5 trillion cubic feet of methane gas.

According to the Green Dragon Gas website, Grewal is also chairman and chief executive of the California-based Greka Integrated, a company which is described as being involved in heavy oil and gas transportation, refining, real estate and with interests in energy properties and refining assets. It is Santa Barbara County largest onshore oil company with holdings in Bakersfield, Orange County and the Los Angeles basin, Greka operates almost 70 onshore production, processing and transportation facilities in Santa Barbara (California), as well as the Santa Maria Asphalt Refinery. It is the same one which produced 3400 barrels of asphalt every day during 2002.

While others talk a good game, Grewal excels at the energy game. In his last published interview which we were able to dig up (August 2001), Grewal explained exactly how he planned to make Greka Energy a success story, i.e. selling oil or using it product asphalt and then sell asphalt, depending upon the price. And then he did. In a July 2002 news release, Grewal mentioned his company would have long-term activities in China. And now it does through Green Dragon Gas.

In explaining the companys business plan, during his 2001 interview, Grewal unabashedly boasted, Were profitable at $10 oil. Were profitable at $30 oil. Were profitable at $2 gas, and were profitable at $16 gas. He called his asphalt plant a natural hedge to fluctuating commodity prices. It also provides consistent cash flow. And there is no doubt Grewal is ever more profitable with crude oil selling around $70/barrel.

Steve Chase, Santa Barbara Countys deputy energy director, who regulates Grekas refinery (and has participated in fining Greka see below), calls the companys business plan absolutely brilliant. Chase praised Greka in a New Times newspaper article, explaining the companys economics, Oil sells either high or low, but asphalt doesnt. If youre an oil company with an asphalt refinery, you can sell into two different markets. When oil is low, you use it to make asphalt. When its high, you (just) sell it.

Despite Chases praise, Grewals road to success has not been without a few car wrecks along the way. In 2002 and 2003, his company was cited for more than 70 violations, which included oil spills and gas releases, according to the Santa Barbara News-Press newspaper. The countrys district attorney filed felony charges against Greka after an explosion near the asphalt refinery injured two workers. Greka settled for civil penalties of $200,000.

In November 2005, Greka Integrated lost its breach-of-contract lawsuit against a former safety manager, Gary Lowery. In June of this year, the U.S. Environmental Protection Agency fined the company $127,500 for unauthorized disposal of oil refinery wastewater into the facilitys injection wells, in violation of the federal Safe Drinking Water Act. This Greka has paid out about $700,000 in settlements since Grewal took the company private. Lifes little annoyance become less problematic when one is selling oil for much more than $30/barrel. Especially when this same oil was profitable at $10/barrel.

Grewal Turns to China to Build His Fortune

Randeep Grewals came into the energy markets as chairman and chief executive of an oil and gas horizontal drilling company, Horizontal Ventures. During the energy bear market, Grewal cleverly began a series of mergers and acquiring oil and gas assets, which led to his first Greka Energy Corp. He knew where to find deals and deftly began assembling his energy empire. Horizontal drilling is integral to coalbed methane development, which brings Grewal back to where he started as a gas drilling company.

Also along the way, two of Grewals companies have suffered bankruptcies. This past November, Saba Enterprises, formerly Greka Energy Corporation, filed for Chapter 7 bankruptcy, after two creditors won judgments totaling $19.5 million. In its petition the company announced it had no assets. The total creditor shortfall could rise to more than $24 million. In 1999, another company of which Grewal was a director, Sabacol a subsidiary of Saba Petroleum, was dissolved following the sale of its assets after working its way through Chapter 11 bankruptcy proceedings.

Life is also filled with many second chances. This time, however, through Greka Energy (Hong Kong) and Green Dragon Gas (GDG), Grewal owns what might someday become a multi-billion dollar gas project. Smith & Williamson, Green Dragons IPO underwriter valued the company at $973 million, depending on its success in recovering GDGs estimated methane gas in place and the wellhead price at time of delivery.

Until recently, coalbed methane was treated as a hazardous waste product which killed coal miners in tunnel explosions. In China, depending upon whose numbers you believe, between 4,000 and 6,000 coal miners die each year. At best, methane was an unwelcome byproduct of coal mining, which the Chinese vented into the atmosphere aggravating an already atrocious air pollution crisis.

When the Chinese began to realize CBM was providing a greater percentage of the U.S. gas production, they wanted to develop their own vast resources. After all, the Chinese are pragmatists. Why pay through the nose to import LNG, when you are throwing away all that methane? In 2004, coalbed methane accounted for 8 percent of U.S. gas production. Thats the same percentage number China mandated in its eleventh five-year plan for the role of gas in its energy mix. And as weve mentioned in previous articles, China has idled as much as 40 percent of its gas-fired plants because it could not obtain sufficient gas supplies.

Methane or C4, which is a more pure gas than conventional gas, is found within the carbon lattice of coal at a molecular level. The less sweet natural gas, which is found in more conventional fields, was generated by hydrocarbon source rocks and is trapped in a porous and permeable reservoir rock, such as carbonate reserve or sandstone. Water pressure holds coalbed methane in place, which required new drilling technology, to efficiently extract.

To extract coalbed methane, a company drills wells into the coal seam, and then perforates and fractures the coal seams. By increasing permeability through this process, water is able to be pumped out of the coal seam. During this de-watering process, pressure holding the gas in place is reduced. This pressure differential vents the gas through the fracture systems into the well. Voila! What had been killing coal miners and polluting Chinas atmosphere could now be utilized to power gas-fired energy plants.

COPYRIGHT 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

James Finch contributes to StockInterview.com and other publications. StockInterviews Investing in the Great Uranium Bull Market has become the most popular book ever published for uranium mining stock investors. Visit http://www.stockinterview.com

Have a Blast Visiting Central Park, New York

When going on a tourist trip to New York, the sheer amount of things to tick off the list seems staggering, especially in terms of places to go. The Empire State Building, the Statue of Liberty, perhaps taking a visit to watch stockbrokers yelling at each other on the trading floors of the New York Stock Exchange - it all adds up. So why not take a break by visiting Central Park to recharge your batteries?

The mere concept of Central Park is quite amazing - a landscaped park area, measuring 843 acres (twice as large as Monaco and eight times as big as Vatican city), the park lies slap-bang in the centre of the borough of Manhattan - one of the most expensive property areas in the world, second only to central Tokyo. The value of the land Central Park occupies is estimated at nearly $529 billion, making it by far the most expensive area of parkland in the world.

Whilst much of the area looks like natural wooded grassland, the entire park is in fact painstakingly and exquisitely landscaped. The park contains many attractions, including several natural lakes with fondly-given nicknames, many walking trails, a wildlife sanctuary, a large open area devoted to sporting pursuits, two ice-skating rinks and many playgrounds for children. Additionally, the area is hugely popular with native New York joggers, being the only open area for miles across the Manhattan borough.

Many professional races are run in and through the park, including sections of the New York Marathon. This finishes inside Central Park next to Tavern on the Green, an extremely famous restaurant that's featured in such films as Wall Street and Ghostbusters.

But sport is not the only activity for which Central Park is most cherished - entertainment is also very high up the list, with many famous music acts having performed concerts there throughout the years, including legendary performances from Simon and Garfunkel and Dave Matthews Band.

Central Park has it's own fair share of talent and celebrity too - local folk singer/songwriter David Ippolito, more often known by his usual moniker of "That Guitar Guy From Central Park", has been regularly performing every summer weekend in the park since 1992 and regularly draws crowds of up to 500 people, locals and tourists alike. In fact, such is his love for Central Park, it is the only place he ever performs.

So when you're on holiday, take a little time off from the clamour of Fifth Avenue and Times Square. You'll be able to find a range of hotels near Central Park from which you'll be able to access the area's tranquillity with ease and spend some quiet time revelling in the more laidback side of the hectic Big Apple lifestyle.

Adam Singleton is an online, freelance journalist and keen amateur photographer. His portfolio, called Capquest Photography is available to view online.

Where Should I Put My Savings? Different Types of Investment Accounts

In the big world of investing, it seems we hear a lot about what securities to invest in, but not as much about what types of accounts to invest in. There are so many different types of investment accounts, each covering a different purpose, and new types of accounts seem to be created weekly. What are some of the basic types of investment accounts and what can they do for you? This article covers some of the accounts that are available currently and why you would use each one.

Retirement Accounts

IRA stands for Individual Retirement Account. An IRA is meant for those who do not have access to employer sponsored retirement plans such as 401(k) plans or those who would like to contribute more than the maximum allowed by their employer plans. Why choose an IRA? Tax-deferred growth is the answer. With a standard savings account, you have to pay taxes on the interest or earnings that the account makes each year. An IRA, on the other hand, doesn't require you to pay taxes until the money is taken out in retirement, thus leaving more money in the account to grow each year. In many instances you can also deduct your IRA contributions on your taxes, giving you further tax savings. It seems like a small thing especially when the account balance is still small, but over time it makes a big difference. Investing $10,000 for 30 years in a regular savings account with a 28% tax bracket and a 6% average growth rate will give you $35,565 whereas that same amount put into a tax-deferred account will give you $57,435. Eventually, however, you do have to pay taxes on the earnings in your IRA, but you are still left with $44,153 after taxes are paid. Your net gain for tax-deferred growth is just over $8500.

Another individual plan is a Roth IRA. It is somewhat similar to a traditional IRA but the difference is that you cannot deduct the contributions and the earnings grow tax-free instead of tax-deferred. This type of plan is good for someone with a longer timeframe to invest or those whose tax bracket in retirement will be close to or higher than their current tax rate. Tax-free growth means that you don't have to pay taxes on any of the earnings in the account. If we start with $10,000 and invest it for 30 years at 6% growth like our example above, you would be left with $57,435. None of that money has to have taxes paid on it since the initial $10,000 already had taxes taken out and the earnings grew tax-free. Before you wonder why anyone would not automatically use a Roth IRA, consider the fact that the initial $10,000 investment wasn't tax deductible like it was for the traditional IRA above. With a 28% tax bracket, the Roth paid $2,800 on its initial $10,000 investment. If we look at the growth potential of $2,800 for 30 years in a tax-deferred account, it grows to $16,082. So, in this person's situation where their tax bracket is the same in retirement as it is while working with a 6% rate of growth, a Roth wouldn't be the best option. The Roth would only grow to $57,435 - $16,082 = $41,353 when all taxes are taken into consideration while the traditional IRA would grow to $44,153. There are several online calculators that can estimate which type of IRA would be to your advantage. Search under Roth vs. Traditional IRA for more information and calculators to determine the best account for you.

In addition to individual plans there are also employer-sponsored plans. SEP IRA, SIMPLE IRA and Keogh plans are in between Traditional Individual Retirement Accounts and the standard employer sponsored plans such as 401(k)'s. SEP's, SIMPLE's and Keogh's are for self employed individuals or small companies that need to put aside more money than a standard IRA allows but aren't large enough to warrant the expense of a 401(k) plan. Each plan allows both employee and employer contributions. Each has set maximums between $6,000 and $30,000, depending on the plan and the contributor, and each has tax incentives for both the employer and the employee. These plans are great for small businesses to be able to set aside money for themselves and their employees and not have to go through the time and expense of larger employer sponsored plans.

The last type of retirement plans are employer sponsored plans. When it comes to retirement, it seems everyone knows the term 401(k). This is because a 401(k) is the retirement plan of choice for medium and large companies. In 2006, the maximum contribution to a 401(k) is $15,000. If you are over fifty and your employer offers the 401(k) "catch-up" contribution, you can contribute up to $5,000 more, so $20,000 total. Your employer may also contribute to your 401(k) plan which generally doesn't decrease your contribution allowance. Originally, 401(k) plans were only offered to for-profit companies. Those who worked for non-profit companies such as charities, schools, universities and hospitals weren't able to contribute to 401(k) plans but were able to open 403(b) plans which allowed most of the same contribution limits as a 401(k). Government or public employees often used 457(b) plans for their contributions and for highly compensated employees there are 457(f) plans. This eventually changed to where 401(k) plans are now available to non-profit companies so more and more of the non-profit sector are opening 401(k) plans for their employees. Taxes on these types of plan can vary from one plan to another, so it is best to consult your plan director or talk with the investment company that manages your employers plan.

Education Savings Plans

Education plans have become available in the past decade allowing parents to better save for their children's education. Instead of trying to set money aside in taxable savings accounts, parents can now setup an education savings account that has various tax advantages depending upon the type of account used. Choosing an education savings account depends upon what your long-term goals are for the money. There are three basic types of education savings accounts, IRC section 529 plans, the Coverdell Education Savings Account (CESA) and the Uniform Gift to Minors Account (UGMA). Each plan is tailored a little differently when it comes to its tax advantages and who gets the money from each plan, but each has the same general purpose, to save for your children or grandchildren's future.

Medical Savings Accounts

There are three different types of accounts to help you save for healthcare costs, Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA) and Health Savings Accounts (HSA). The first of these, Flexible Spending Accounts are also called section 125 plans or "cafeteria plans." This plan allows participants to put pre-tax money into the account each year to cover health insurance deductibles, co-payments, dental care and other medical expenses. Cafeteria plan money cannot accumulate from year to year, however, so it needs to be used up in one year or it will be gone. The second type of medical savings account is a Health Reimbursement Arrangement. It is similar to an FSA but the employer contributes to the account instead of the employee.

The employer can make contributions contingent on an employee participating in designated health and wellness programs. In June 2002 it was updated to allow funds to rollover from year to year, but it cannot be rolled over from employer to employer so if you change employers, you loose the accrued benefit. The last and most recently created plan is a Health Savings Account. This plan enables employees with high-deductible health insurance plans to set aside and invest money to use to pay the deductibles or other healthcare costs in the future.

These plans are designed to put healthcare decisions more into the hands of the employees. These plans are also portable so they move with you when you change employers and they can be rolled over from year to year.

Other Accounts

For those who are just looking to invest, a brokerage account is the medium to use. Brokerage accounts are setup through investment companies to allow you to purchase securities such as stocks, bonds, mutual funds, money markets, options, etc. Generally the money sits in a "core" account such as a money market until you are ready to invest it in other securities. There are fees for purchasing many securities which vary depending on the company that the account is setup with. Brokerage accounts can also offer check writing, debit and ATM cards for easier access to money in the account. Since there are no tax-advantages of a brokerage account, money can be withdrawn at any time from the core account. These accounts are perfect for additional savings that you want to invest in the stock market.

The standard savings account is probably what everyone is most familiar with. Offered by any bank, a savings account allows you to set money aside and receive a variable or fixed interest rate depending upon the account. Savings accounts are very liquid and can be withdrawn at any time, but they don't allow check writing capabilities. Most savings accounts now days do offer ATM cards. Certificates of Deposit or CD's are types of savings accounts that require money to be left in for a certain period of time in exchange for a slightly higher interest rate, these accounts are less liquid and there is generally a fee to take the money out before the predetermined period of time.

Whatever the reason or account used to set aside money, it is always a good thing. Savings in any form creates a more secure financial future and allows for problems or emergencies to be taken care of without having to obtain loans or dip into less liquid savings such as a home or other physical assets. Opening up any of the above types of accounts gets you started on the right track towards savings.

Copyright 2006 Emma Snow

Emma Snow is a writer who specializes in financial planning. She has worked in the financial industry for over eight years. Currently Emma works on a Finance and Investing site at http://www.finance-investing.com and Investing Partners http://www.investing-partners.com

Forex - Trade The Non-Farm Payroll Report for Super Profits

Many investors in the foreign-exchange (FOREX) market trade only at or around the time of the release of the U.S. Non-farm Payroll Report (NFP). They are attracted by the volatility of currencies - particularly the major pairs involving the U.S. dollar - that occur during that time. Investors relying on this and other financial news events for their trading activity are referred to as news traders. Many others, while perhaps utilizing other methods of trading are sure to include the NFP on their trading calendars. Let's find out why so many traders are interested in this report.

The NFP comes out once per month, typically on the first Friday at 8:30 a.m., New York time. On occasion, it will come out on the second Friday of the month rather than the first, but always at the same hour of the day. The U.S. Department of Labor is responsible for the compilation and release of the report, which is kept secret until the official time for release arrives. The report contains data regarding unemployment in non-agricultural sectors of the U.S. economy. Incidentally, other industrialized countries also publish some semblance of this type of report. Simply put, if the numbers published in the NFP represent a major revision of the estimates previously made, the market response is likely to be quite pronounced.

The reaction to the anticipated NFP data on the part of traders world-wide, in terms of buying and selling activity, generally causes the price of the U.S. dollar to spike up or down. This usually happens the very moment the report becomes public. Sometimes, the spike occurs early, i.e. within the minute immediately preceding the 8:30 a.m. release. Although less frequently, it has also been observed that the spike can occur up to 15 or 20 minutes after the release of the report.

Other regular financial reports can also move currency prices, but are not as consistently dramatic or dynamic as the NFP in their result. Within the past couple of years, the range of movement in the price of the U.S. dollar as a result of the NFP has usually been between 50 and 90 pips in one general direction. Re-tracement, i.e. movement of the price back toward the original price, often provides additional trading opportunities. Many traders experience returns ranging from 5 to 20 percent from this one report alone.

Why does the NFP stand out in its ability to move the market? The NFP is published by the government of the United States as an official statement of what the U.S. economy is doing. Based on the contents of the report, the measurement of the health of the country is viewed in terms of its employment situation. Many scholars and traders alike view the employment situation in a country as a leading indicator of how things are economically with that country. If the employment situation is bleak, so must be its general economy. A weak economy invariably spells bad news for the currency of that particular country.

One must acknowledge and appreciate that the U.S. dollar has always generated a lot of interest among traders world-wide. Known for its liquidity, relative stability, and being backed by the worlds largest economy (at least until China takes the number one spot as expected in 2026), the greenback is often accepted as payment for goods and services all around the world. This is true even where it is not the official currency in a given jurisdiction. It is one of the relative few currencies known as hard currency, in the global financial realm. It is always in the spotlight as a global player.

Recent times have seen the U.S. dollar in a weakening trend in comparison to other currencies. Undoubtedly, global events including the U.S. involvement in Iraq, Pakistan and Afghanistan have contributed to the dim view shared by some regarding the value of the dollar. On the other hand, some see it as a good opportunity for U.S. corporations, large and small, to export goods and services to other countries. This may result in a rebound of the dollar in the long term.

Various strategies have been devised to take advantage of the tendency of the market prices to spike during the time of the NFP news release. As one might expect, some strategies work better than others. More and more vendors and programmers are developing and selling automated software to traders interested in the fast-paced environment surrounding the release of the NFP. The price range of such software can be anywhere from a few hundred dollars to several thousand dollars. Of course, manually trading the NFP can still be done successfully as many traders are proving. Regardless of the method or strategy, many in the trading world will continue to pay attention to the NFP and utilize its release as one of the greatest regular and recurring opportunities for trading in the FOREX market.

If you are ready to change your future by stepping into the exciting world of trading FOREX, go to winningtradersassociation.com for more information. Sandy Robinson, J.D. is part of the Winning Traders Association, an educational organization founded by John Beiler, President. The organization consists of a network of committed trainers and motivated traders willing to provide support to those interested in trading foreign exchange. Many of the members work from home.
Sandy Robinson, J.D.
Copyright 2007

Look After Your Pet's Wellbeing

Remember those old A dog is for life not just for Christmas' ads? Well, I've no idea as to the long term success of the campaign but you don't see them much these days so maybe the message has started to get through. Certainly the idea should be pretty common sense, especially to animal lovers looking after a pet means just that, making sure you're aware of and willing to take on the responsibility of an animal's life. This means that when you welcome a pet into the family you should be in it for the long haul, in many ways just as you would with a child.

I'm sure for most loving owners, and there are plenty of people out there who really do treat their pets as they would a member of the family, the message clearly isn't necessary. Even if you love for and dote on your pet, the cost of giving it all the care you would like to can be prohibitive.

Unfortunately having a pet can be an expensive business and I'm not just talking about rare breed dog owners grooming their five grand poodle for next years Crufts. Quite apart from the day to day costs of food the real expense comes in when, for whatever reason, a visit to the Vet becomes necessary. There is no regulation of vet fees so if you aren't prepared to shop around a visit can be a financially painful experience. Take some of these examples, all fees for common conditions - 500 for an abscess, 1,000 for the removal of a lump or a hefty 3,000 estimated for injuries sustained in a road accident. When you take on board the Pet Health Council's assertion that almost half the UK's pets need veterinary care each year it becomes clear that the cost of caring for your pet could spiral dramatically.

We shouldn't be surprised therefore that pet cover is becoming a more and more popular option. It might seem like something it would be easy to disregard, just another expense that might not even be necessary; but then, as with any type of insurance, what youre buying is piece of mind. After all what would happen should your pet suddenly need expensive treatment at a point in your life when funds are hard to come by?

Ensure your pet receives the care it deserves. Visit Asda Fianance for a great Pet Insurance quote now

11 Top Stress Busters in Pregnant Women (Part 1 of 2)

You have been waiting for a long time to get pregnant. You feel so happy with this and want to take care of this pregnancy very carefully. One of the most important things a pregnant woman should avoid is stress. Therefore, you need to discover the ways to stay out of the things that can cause stress during this important time in your life.

If you find out that stress is affecting you, you need stress busters. Remember to get plenty of rest, drink plenty of water and take some you time out of each day. You can also:

1. Cash in your vacation time

Or take an extended weekend just to refresh and recharge your batteries. Having time to walk along the beach or play golf or even to stay inside and read a great book without interruptions can help us recharge our batteries. When the baby comes, your number one job is to be Mom. So, you will not have much time for yourself, at least not in the beginning when the baby depends on you for everything. When you are refreshed, you are more effective and productive anyway. You will also be easier to get along with, and it will be easier for you to deal with others (even the difficult ones!).

2. Read a good book!

Reading magazines, novels and non-fiction books are very relaxing for many of us. We all need time to think and relax, so get a library card or a frequent buyer card at a favorite bookstore and stock up on good reads.

Book clubs are also a great place to meet other adultsyou will need a haven of supporting friends once the baby comes, so cultivate friendships and carve out a niche in groups now.

3. Treat yourself to a prenatal massage

or deluxe pedicure at one of your areas finer spas. As you start to get bigger, and your breasts become tender and your ankles are swollen, nothing will sound better to you than a long massage. Just make sure you let your masseuse know you are pregnant, especially if you are not showing, since he/she will need to know in order to serve you best.

If you cannot afford to spare the time or extra money, however, ask your spouse to give you a nice massage and foot rub. He might even paint your toe nails if you ask nicely!

You can also indulge in a long, relaxing bath soak with some sweet smelling bubble bath, which you can find at any bath specialty or discount store. It is absolutely necessary to take time to pamper yourself, since you will be busy, busy, busy after your bundle of joy arrives.

4. Exercise, but dont overdo it

Take a brisk walk through a scenic park or even around a shopping mall. Walking is great exercise that will not cause you to over exert yourself. Of course, you should also drink plenty of water and stay well-hydrated, especially if you are walking outdoors or in humid areas. And never go into woods or desolate areas alone.

Exercise can help you strengthen your muscles, which makes labor easier. Further, exercise helps you get your stamina and energy levels upwhich will be necessary once baby arrives.

You might also enroll in a water aerobics class, which is relaxing and can also prepare you for labor. Just dont get into any hot tubsthats not good for you or the baby.

Exercise also helps you clear your head and relieves stress. Additionally, if you are used to exercising, it will make it all the easier to lose your baby weight after the birth of your child.

5. Meditate or pray

Turning to a higher power is very beneficial in feeling like you are not alone. Take time to ask for blessings and to be thankful for the gifts which have been bestowed upon you.

Also, do not be afraid to be brutally honest; what you say or think is strictly between you and the higher power. And, if you need to revel in a good cry every now and then, go for it. Crying is physically good for you from time to time, because it allows you to eliminate old worries, fears and stresses.

6. Volunteer!

Helping others is a big stress reliever, so whether you are tutoring underprivileged children or walking dogs at a local humane society, you are releasing stress. Helping others gets your mind off your own troubles and allows you to see that things could be worse. You also get the chance to be thankful for the opportunity to assist others when you volunteer (someone who gives of themselves will most likely see that kindness returned).

Whatever you decide to do, you will love the feeling you get from helping others, either people or animals. It is very reinvigorating to know that small efforts can lead to big results. ** This article will be continued at Part 2: 11 Top Stress Busters in Pregnant Women (Part 2 of 2). **

About the author: Adwina D. Jackson has a deep concern on parenting. Get her inspirational guides about Pregnancy Without Stress at http://insparenting.com/guides/pregnancy-stress/ Also, grasp her other motivational parenting tips at http://insparenting.com, a worth-to-visit daily updated blog.

The Causes of Recessions

A recession occurs when there is a fall in economic growth for 2 consecutive quarters, however if growth is very low there will be increased spare capacity and people will feel there is a recession, this is sometimes known as a growth recession.

If there is a fall in AD then according to Keynesian analysis there will be a fall in Real GDP. The effect on Real GDP depends upon the slope of the AS curve if the economy is close to full capacity lower AD would only cause a small fall in Real GDP.

AD is composed of C+I+G+X-M, therefore a fall in any of these components could cause a recession. For example, if the MPC increased interest rates sharply this would cause the cost of borrowing to increase and make saving more attractive. This would have the effect of reducing consumer spending. AD could also fall due to deflationary fiscal policy, for example higher taxes and lower government spending would also cause a fall in AD.

If there was a fall in AD the multiplier effect may magnify the initial fall in AD, for example if there was a fall in output, workers would be made unemployed. These workers would then spend less causing a secondary fall in AD. This would make the fall in Real GDP greater.

A key feature in determining the rate of economic growth is the level of consumer and business confidence. If confidence was high then higher interest rates may not reduce demand. However if confidence is low and people fear they may be made unemployed, then they will start spending less, causing AD to fall (or increase at a slower rate). Therefore this shows that expectations are very important and it is possible for people to talk themselves into a recession

An important feature of the UK economy is international trade, therefore the UK would be affected by a global recession. For example a recession in the EU would cause a fall in demand for UK exports reducing our AD (EU accounts for 60% of our trade therefore is important). Also a recession in other countries would effect economic confidence if people see the US in a recession they are worried and will spend less. However a global recession may not cause a recession in the UK if domestic demand remains high.

Classical Economists believe that any fall in Real GDP will be temporary and will end when labour markets adjust to the new price level. Classical economists argue that if there is a fall in AD then in the short term there will be a fall in Real GDP. However with a lower price level wages will fall therefore the SRAS will shift to the right and the economy will return to the original level at Yf and the recession will be over.

However in the great depression of 1930s Keynes was very critical of this classical view he said that the long period of negative growth showed that markets do not automatically clear he argued that this was for various reasons.

1.Wages are sticky downwards, Firms should cut wages to reflect lower prices but in reality workers are very resistant to cuts in nominal wages
2.If wages were cut in response to unemployment workers would have less spending power therefore AD would continue to fall.
3.In a recession people have low confidence and therefore spend less. Keynes said this was the Paradox of Thrift

Case Studies of Recent Recessions in the UK

The recession of 1981 was caused by:

1.High strength of the pound which made exports more expensive and reduced AD.This recession particularly effected British manufacturing.
2.High interest rates, The govt was committed to reducing the inflation of 27% they inherited. They maintained a tight monetary policy which reduced inflation but at a cost of falling spending, investment and output.
3.Tight Fiscal Policy, To control inflation the govt were committed to reducing the levels of Government borrowing. This was influenced from Monetarist beliefs that controlling excess government borrowing was essential to the economy

The recession of 1991 was caused by

1.BOOM and BUST. In the 1980s economic growth was too fast and unsustainable therefore inflation increased, to reduce it the govt deflated the economy.
2.Joining the Exchange Rate Mechanism. The govt wanted to maintain a high value of the pound this required high interest rates of 15% which caused a big fall in AD.

More: Macro Economics Essays

Richard Pettinger studied Politics and Economics at Lady Margaret Hall, Oxford University. He now works as an economics teacher in Oxford. He enjoys writing essays on Economic and he edits a site - Economic Help. http://www.economicshelp.org/

Welcome to the World of Currency Trading

Indeed large multinational and individual banks and other major financial institutions have dominated FX trading (also known as Forex trading), but there is a paradigm change in the nature and type of investing. According to one estimate, in the new millennium, there are over 6 million online investment accounts, up from 1.5 million in 1997. As a result, start-up firms now compete directly with financial institutions to serve investors in the new technologically driven economy, and the clear winner is the customer. The competition between the brick and mortar institutions and the Internet-based companies has dramatically lowered the costs of investing, and empowered the individual investor to take control of their own investment strategy in Forex trading.

We know Forex trading is direct access trading of currencies. In the past, foreign exchange trading was limited to large banks and institutional traders but recent advancements in technology have allowed small traders to take advantage of the many benefits of Forex trading using online trading platforms to trade. Virtually Forex trading is done 24 hours day and almost 5 days of a week. In the recent times, online trading has revolutionized the currency markets by making it accessible to the small and medium sized investor.

The Forex trading is perhaps the largest financial market in the world, with a daily average turnover of approximately $1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example EUR/USD or USD/JPY or USD/INR etc.

In the new millennium, the Forex trading has become accessible for an individual investor or small group of investors. In the current scenario, investors reap many benefits from Forex trading than stock market, e-mini futures and such other trading. Today mostly traders are choosing Forex trading than stock trading because there are approximately 4,500 stocks listed on the New York Stock exchange. Another 3,500 are listed on the NASDAQ. In spot Forex trading, you have 4 major markets, 24 hours a day 5.5 days a week. If you are so inclined, you have approximately 34 second-tier currencies to look at in your spare time. You can concentrate on the major forex and can find your trade. When you are investing in forex you can spend your afternoon on the golf course or with your spouse watching movie or celebrating holidaysin short it is easy and hassle free than stock/future market.

Not only is it an accessible, easy and less capital-intensive business opportunity, but it is much more cost efficient too to invest in the Forex market, in terms of both commissions and transaction fees. Generally, commissions for stock trades range from a low of $7.95-$29.95 per trade with on-line brokers to over $100 per trade with traditional brokers. Opposite to that, typically stock commissions are directly related to the level of service offered by the broker. At the high end, traditional brokers offer full access to research, analyst stock recommendations, etc. In contrast, on-line Forex brokers charge significantly lower commission and transaction fees.

Anthony Trister is a currency trader and is an owner of OneDayTrades which offers free, mechanical forex signals and an automated trading program for those wanting to trade forex. Free access available here: http://www.onedaytrades.com

Good Reasons to Sell Postcards, Mainly Topographical View Postcards, on eBay

They're among the most collectable items and they virtually sell themselves. Postcards rank third most collectable item worldwide, just behind coins and stamps. Theyre not the bits of worthless paper many people imagine, in fact some amazing prices can be fetched for postcards, notably on eBay, where items flea market visitors consider overpriced at a few pennies can fetch double figure, sometimes three figure sums.

* In the early days of postcard collecting called deltiology almost every family had its own album, sometimes several. These heirlooms were cherished and passed through the generations, postcards were rarely destroyed or lost. Consequently many very early postcards remain in undamaged condition today, usually still in their original albums So you can buy hundreds or thousands of postcards in just one day at specialist postcard auctions and non-specialist sales, especially complete household clearances from elderly deceased collectors. You can actually buy hoards of postcards in just a few minutes, where traders in other antiques and collectibles take weeks or months to acquire stock to even contemplate the kind of money you'll soon be making.

* Postcards are usually very small and can be stored safely, close together, side by side in boxes, boxes stacked high one on top of the other. When I traded at postcard fairs, my entire postcard stock, once the biggest in the North of England, occupied a tiny corner of a spare bedroom. Compare this to space needed by sellers of larger, more fragile, unusually shaped antiques and collectibles which need to be stored separately, surrounded by bubble wrap and plastic chips, in varying size boxes which must be placed separately on the floor, not stacked one above the other.

* Postcards are usually all the same shape, roughly the same weight, making them extremely easy to pack, very inexpensive to post. You wont have to waste time looking for boxes of varying size to pack and post your products, as happens to eBayers selling oddly shaped items. All you need are a few cardboard backed envelopes or you could make your own from empty breakfast cereal boxes. Postcards also fit into any local post box so Post Office visits are few as happens for larger more fragile items that need to be individually weighed and postage calculated. Be aware you will have to visit the Post Office to Register or Record Deliver your postcards which is usually quite rare.

* Because so few listing details vary between postcards usually just location, age, publisher, postmark - you can create a template to suit every postcard you ever list from now to forever, where only a few details need changing each time.

* People who collect one postcard, typically collect lots of postcards, so you could develop a huge customer base of people who will watch your listings closely and buy from you again.

* Listings are easy to keep track of even over several months for items that go unsold first time round. While people selling books and prints, pottery and toys, must be continuously sorting through huge piles of stock to find recently sold items which were listed months before, you can organise the whole process using one of those modern plastic postcard albums with acid-free plastic pockets usually six to a page. Make very certain your pages are acid-free and do not leave the album in a warm or moist location, all cause damage including foxing which depreciates postcards or ruins them completely. Place the first postcard listed in the first pocket on the first page of the album; second card goes into the second pocket (horizontally or vertically, it doesnt matter much). Now when auctions end, starting first product, second product, and so on, you can open the album and begin removing cards in order they are placed in the album, leaving unsold cards in situ. Once all sold cards are removed, move unsold cards forward to fill the empty spaces. Now you can relist all the unsold items which will continue selling in the exact same order they feature in your album and you can begin adding new listings to spaces freed at the back of the album. Cards that remain unsold after a few listings can be moved forward, as before, and listed in bulk with each album page having its own illustration in your listing.

Avril Harper is a triple eBay PowerSeller and author of BANK BIG PROFITS SELLING VINTAGE TOPOGRAPHICAL VIEW POSTCARDS ON EBAY which you can read about at: www.sellpostcardsonebay.com and MAKE MONEY TEARING UP OLD BOOKS AND MAGAZINES AND SELLING THEM ON EBAY which you can read about at: www.magstoriches.com. She has produced a free guide - 103 POWERSELLER TIPS - which you can download with other freely distributable reports and eBooks at www.avrilharper.com

Why Are Culinary Terms in French?

Have you ever wondered why most culinary terms are French? French chefs were very skilled. When the French Revolution started and everyone was losing their heads, the chefs to the Royal Families decided that now was a good time to travel to distant places. The chefs took their skills and culinary terms all over the world. French became the standard language of cooking.

Whether you are from the U.S. or Outer Mongolia, you both know that mirepoix is the sauted combination of onions, celery and carrots. Lets start with some basics.

Stocks
Stocks are the foundation of cooking. (fond de cruisine). They add background to your dishes. Stock is made by simmering fresh bones in clear water. At the last hour, you may add meat or vegetables or both to the bones along with aromatics (seasonings and herbs traditionally, peppercorns, thyme, parsley stems and bay leaves) and mirepoix. If you want a brown stock, add roasted tomato paste. Tomato paste is roasted to caramelize its sugars and break down the acids.

Mirepoix has a ratio of 50% onions, 25% carrots and 25% celery (2:1:1).

Start with a large stock pot (a pot taller than it is wide), add your bones and cover with water (the water should not be more than 2 inches over the bones). Bring slowly to a simmer. The bones will release impurities into the water, which will rise to the top as foam. Skim the foam (depouiller) to remove these from the stock. Removing the foam will make your stock clearer. The clearer the stock, the longer shelf life it will have. If you simmer the pot slightly off-center of the burner, the fat and impurities will gather along the edge of the pot away from the heat. Taste the stock every so often to find the peak flavor (if you simmer it too long, it becomes flat). Remove the stock from the heat and taste for seasoning. Add any more seasonings that you need while the stock is still warm. To strain the stock, set up a fine wire-mesh strainer (you can also use a colander lined with cheesecloth) over another pot or metal bowl and ladle the stock into it. If you are not going to use the stock right away, place the pot into a ice bath to cool. You can refrigerate or freeze your stock. When you are ready to use the stock, lift off any fat that is collected on top.

Cooking is an art, not a science. You do not have to rely on recipes if you understand the concept of cooking.

Carolyn Flesch
http://secretonionII.blogspot.com
http://secretonion.blogspot.com
http://www.secret-onion-cooking-school.com

Online Forex Brokers - Is Your Broker Your Friend or Your Enemy?

I read a lot about the above subject and most traders dont understand the role the online forex broker performs.

So, is an online forex your friend or your enemy?

The answer is:

Neither. If you know how to use a broker correctly, all they do is simply transact orders on your behalf and thats it.

Brokers dont hunt stops

The thought that brokers go around hunting stops and trying to get their clients is not true.

This myth comes from day traders who cant understand why they get stopped out so often and lose, so they blame their broker.

What they should really look at is:

That their systems are flawed and the real enemy (if it can be called that) is price volatility.

Volatility is only the enemy though if you let it be.

The fact is though that trading in short time frames with close stops is a great way to lose your money.

Thats the traders fault and they need to deal with volatility.

If you jump in front of a speeding car you will get run over.

Thats not the cars fault, its yours.

Thats why you never see a long term day trading track record with a profit and a great excuse is blame the broker not the logic of day trading!

I was a broker for 10 years and we loved day traders, they would lose their money with no help from us and give us a great profit.

We didnt need to help them lose they did it all on their own.

Think about this simple fact:

In a market that trades trillions of dollars a day short term moves are random and no one (apart from a central bank maybe) can push prices where they want them.

All you need from a broker is a tight spread and thats it and there are plenty of brokers who will give you that.

Then its down to you to cope with market conditions.

Brokers that can harm you.

Are the ones that offer advice to help you trade.

Well, if they were so good at trading they would be traders not brokers!

The fact is your broker should simply transact your trades and the rest is down to our trading methodology.

An online forex broker then is neither a friend or an enemy there simply there to transact orders.

Get one with low transaction costs dont take advice and then you can set your trading plan in motion.

It really is that simple.

FREE TRADING PLAN PDF + OTHER ESSENTIAL TRADER INFO

On all aspects of becoming a profitable trader and for an exclusive forex basics PDF visit our website at http://www.net-planet.org/index.html

Selling Uncovered Calls, Part 1

A buyer's risks are limited to the premium cost; depending on how many points a stock moves up, a call seller's losses can be much higher.

When you take a short position in a call, the decision to exercise belongs to the buyer. You need to be able and willing to deliver 100 shares in the event that the call is exercised, no matter how high current market value has gone. If you do not already own 100 shares, you will be required upon exercise to buy 100 shares at current market value and deliver them at the striking price of the call. The difference in these prices could be significant.

Example: Unacceptable Risks: You sell a call for 5 with a striking price of 45 and expiration month of April. At the time, the underlying stock has a market value of $44 per share. You do not own 100 shares of the underlying stock. The day after your order is placed, your brokerage firm deposits $500 into your account (less fees). However, before expiration, the underlying stock's market price soars to $71 per share and your call is exercised. You will lose $2,100the current market value of 100 shares, $7,100; less the striking price value, $4,500; less the $500 premium you received at the time you sold the call:
Current market value, 100 shares $7,100
Less striking price -4,500
Less call premium -500
Net loss2,100

When a call is exercised and you do not own 100 shares of the underlying stock, you are required to deliver those 100 shares at the striking price. This means you have to buy the shares at current market value, no matter how high that price. Because upward price movement, in theory at least, is unlimited, your risk in selling the call is unlimited as well.

Tip: Selling uncovered calls is a high-risk strategy, because in theory, a stock's price could rise indefinitely. Every point rise in the stock above striking price is $100 more out of the call seller's pocket.

Get your Momentum Stock Trading System and sign up for my free weekly online trading system newsletter here at: http://www.stressfreetrading.com

Why Get Involved in FOREX Trading

PREMISE: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

The cash/spot FOREX markets possess certain unique attributes that offer an unmatched potential for profitable trading in any market condition or any stage of the business cycle. It leaves one to wonder why bother?

The answer to that is very simple. It boasts:

A 24-hour market: A trader has the chance to take advantage of all of the profitable market conditions at any time which means that there is no waiting for the 'opening bell' like the exchange.

Highest liquidity: The FOREX market is the most liquid market in the world. That means that a trader can enter or exit the market whenever they want during almost any market condition minimal execution barriers or risk and no daily trading limit.

High leverage: A leverage ratio of up to 400 is normal when compared to a leverage ratio of 2 (50% margin requirement) in the equity markets. Of course, this makes trading in the cash/spot forex market awkward as well because it makes the risk of the down side loss much higher in the same way that it makes the profit potential on the upside much prettier.

Low transaction cost: The retail transaction cost (the bid/ask spread) is actually less than 0.1% (10 pips) under the normal market conditions. At larger dealers, the spread could be less than 5 pips, and may expand a great deal in fast moving markets.

Always a bull market: A trade in the FOREX market means selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies. However, if the outlook is negative, we have a bull market for other currencies and a trader profits being forced to selling the currency against other currencies.

In either case, there is always a bull market trading opportunity for a trader.

Inter-bank market: The foundation of the FOREX market consists of a global network of dealers that communicate and trade with their clients through electronic networks and telephones. There are no organized exchanges like in futures that are there to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets.

The FOREX market actually works a lot like the NASDAQ market in the United States operates, and because of this, it is also referred to as an over the counter or OTC market.

No one can corner the market: The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time. Even the interventions conducted by mighty central banks are getting to be increasingly ineffectual and short-lived. This means that central banks are becoming less and less inclined to intervene to manipulate market prices.

It is Unregulated: The FOREX market is seen as an unregulated market although the operations of major dealers like commercial banks in money centers are regulated under the banking laws.

The daily operations of retail FOREX brokerages are not regulated under any laws or regulations that are specific to the FOREX market, and in fact, many of these types of establishments in the United States do not even report to the Internal Revenue Service.

Bryan Thorby is the publisher of "Your Guide to Successful Forex Trading" available at http://www.oneworldbiz.net/finance/forex-trading.html and provider of Forex Trading resources at http://www.managing-your-finances.com/forex/ where you can Learn about Forex Trading - Training Programs, Forex Software, free demo Forex Accounts, and learn how to trade like the professionals.

Forex Is The Best and More Lucrative Home Based Business?

The first reason why you should trade the forex market is because it is the most lucrative home based business. Although It is not a new market, it is still unknown by non traders. It is more amazing when you know that most of the traders are not aware of the huge opportunity of the forex. The Forex or Foreign Exchange Currency Market is open to the public since 1998. With the economic situation today and the fear of most of the people worldwide to wake up a morning and be jobless, without resources to feed their family, there is an increasing need in lucrative home based business.

On another hand, it is really difficult to find a real opportunity which will allow you to make a living from your home computer. You got to put hours of recherches and invest some hard earned money, with the fear of being involved in a scam company. Let' s say you found a good opportunity, and honestly, there is a lot of legitimate business you can make a lot of money if you are serious. But, is that what you really want? Most of the opportunities on the web today, even if you make big profits, are held by someone else. That mean that when you participate in those turnkey businesses, you do not have any control.

It is really amazing to see all these people who want freedom, more time with their family and friends, more time for their favorite hobbies... and the most important, fire their boss, going the same way. To understand, they want to be free, they found that on the web you can make money and be free, all that they need, but if you look at the situation, 80% of these people fired their boss, to meet another boss on the Internet! A virtual boss, who is making them work, but they don't feel it, because they have the impression to be free, they work wherever and whenever they want, and better than all that, they have never seen their boss. People make money in these programs, they may win $5000 a month or more but actually, the owner of the program is making tons of money.

There is a way to make much more money on the web that you think now, and Internet seekers and people in general should discover trading, specially the forex market. While the word market could intimidate some people, believe it, no one must be afraid about that, and think about the difficult stock market, or commodities, futures... The forex market which is also called FX is not really as difficult as it seems. There is not that much technical vocabulary to learn, and the risk is considerably low, if you compare to the other markets like the stock for instance.

The fact that home businesses seekers should really consider is that you can choose at which time to trade, and where you want to trade; you need only an Internet connection, and that's it, you are ready to tape in the biggest market of the world with $1,5 trillion activity everyday in the same way banks and large corporation do it and it is not difficult at all. Rather it is simple, and the methods already tested by serious traders will help you in your adventure.

To trade forex, you don' t need to have a lot of money to start( just $300 will be a good start), you can trade at any time, from anywhere, with a Internet connection, you will not have an order pending because of lack of liquidity, you will not have to work all during the day.

The forex market has many advantages over the other traditional investments, and for sure, it will give you more freedom, and more money.

Get Forex Freedom. Discover a simple and powerful technique which turn $300 into $30,000 in as little as 6 Months. Master The Forex Market With The Forex Mentor

Franck Silvestre.

Day Trading Chat Rooms - What to Realistically Expect

About two years ago I entered a slump in my day trading. I decided to hunt the internet, and there I found many day trading chat rooms. One by one I signed up for trials to see what they were about. I had never been in a chat room before.

After being in a few rooms, my impression was that the members of the room were looking for a leader, a guru, someone with the answers. I guess I was too, although I already had about thirty years of trading behind me. Id like to think is was just more curious than actually looking for answers. Most of the room members seemed very naive. Im sure they thought theyd be given an indicator or method that would allow them to start making money right away. The other thing I noticed right away was the ego of the moderators. They spoke with great authority, and suggested that their way of trading was the one and only way. Only they had the answer. And the room attendees, in each of the rooms, seemed to agree.

I did not see much new in any of these rooms. Each one had some kind of gimmick or special oscillator. Some had a black box approach, where you were supposed to just sit there waiting for the moderator to call out the trades. I did not see many winning trades from the little time I spent in any of these rooms. From what I saw, I doubted if any of these people ever made a dime trading. I kept moving on.

Eventually I came upon a chat room that was free. Free was interesting. How could it be free? They must be selling something. I logged on.

I heard the voice of a very calm, relaxed man that had just taken a huge win out of one of the stock index futures. Dozens of traders posted congratulations to the moderator for the winning trade, but more so for such a wonderful, magic indicator, and all the wonderful trading patterns from this magic indicator.

The magic indicator being used was actually introduced around 1980, but this moderator had some interesting improvements on the way it was displayed and the patterns it produced. And the room was not only free; there was a charity involved. He asked everyone to donate a little out of his or her winnings. How could anyone criticize anything that was done for charity?

The moderator made the claim that he invented the use of applying patterns to an indicator. He did rename all the patterns, but I recognized many of the patterns that were well documented in many old books. He just put strange names on existing patterns. The mostly new traders did not know these were old patterns. Nobody questioned anything in this room.

Despite nothing new here, it seemed he did an excellent job of categorizing many different patterns and putting them all together into a package that would be more readily accessible to new traders. So that was good. And there were many good concepts offered on trading in general, and money management. Also, the chat room was upbeat and positive. Most of the previous chat rooms I attended were negative and angry. I thought I should continue on.

I spent the next few months learning as much as I could. As much as I wanted to believe he had wisdom worth listening to and a viable approach, many things started really bothering me. One was his insistence that his indicator could lead price An indicator, which is a derivative of price, cannot lead the price. Thats just mathematically impossible. Another was his insistence that you cannot be watching prices while you are trading. What?! You cannot see what you are trading? If you were driving a car would you cover up the windshield? The people in this room would if he told them to.

I had a hard time believing that nearly a thousand people would accept everything that was being said. Accepting it so readily. Were they all drinking Kool-Aid? It was an interesting study on the need to believe in a leader, a guru. Someone that can help make dreams come true.

But I persevered. His trading results certainly looked more encouraging than mine did. I would get the recaps after market close on days that they were available. Nearly every trade in the recap was profitable. I tried to write down the trades as they were being called, and then tried to reconcile them in the recap after the market closed. But I began to notice in the recap that the winning trades were selected very carefully out of the real time comments. Again, nobody questioned any of this. Was I the only one who noticed the discrepancies?

At this point I decided to do my own testing. I had been in the room long enough to know every pattern and every nuance. I was good at programming and had the data to test. I took each pattern individually so I could find which patterns had profitable or encouraging tendencies. For my tests I decided I needed thousands of samples. I decided to test each of the patterns on five years of data, and broke them up into one year segments. I was just looking for profitable tendencies and robustness.

After programming everything, I tested the signals by hand; just to make sure my programming caught all the signals based on the rules, and did not create signals that should not have been there.

After spending weeks and reams of paper for my printouts, I found that none of the patterns resulted in a profit in any of the previous five years when tested mechanically. A pattern that was touted as winning 90% of the time, actually lost money, and in most years had less than 30% winning trades. Results on the rest of the patterns were less reliable than the flip of a coin, far less in most cases.

To summarize my testing: nothing worked. Nothing came close to a favorable tendency. I tried to tell other people in the room about my research and the dismal results. Most of them would not hear it. They did not want to hear the truth. They were too invested in the method, and they had to believe they would eventually become successful if only they would hang on a bit longer, learn that secret that is just around the corner. But most of these people stayed in the room, some had been in for years, and kept showering congratulations onto the moderator for the great trades, and great magic, leading indicator. Did they ever look at their account statements?

You might assume my time spend in this room a waste of time. That maybe I thought that this guru did have the answer to trading success. I knew better than to expect this. The sad part is that so many other people dont know better. They are told something that they want desperately to believe, and they believe it. They don not test it. They do not question it. They believe blindly. They invest much time and money, and then they get past the point where they simply want to believe. Now they are too invested and they have to believe. They will disregard all common sense and all facts and proof in an effort to keep the dream alive. I certainly learned about psychology and the mind of chat room traders that I compete with every day.

Trading is hard work, and every trader has to find what fits his or her own personality and temperament. Nobody is going to easily give it away, whether in a free chat room, or a paid room or seminar, or a so-called trading school. Theres a whole industry out there that supply traders with tools and education. Very little of it is good. Most of it is a waste, taught and promoted by people who are not successful using the approach themselves.

Doug Tucker has a blog with daily commentary on stock indexes, precious metals, and other markets. There are many articles on technical analysis and indicator design and interpretation. To visit go to: http://tuckerreport.com

5 Kick-Arse Tactics To Seize Favorable Probabilities at Forex

As you ponder how to balance your forex portfolio, it is important to map out sure-fire strategies beforehand.

With your plan, you optimize your reward with respect to the expected risk, and tweak probabilities to your favor. Forex strategies must be disciplined and limit risk; simultaneously, it positions you at the most favorable advantage in the market.

A beginners strategy is the fundamental Moving Away Average, which is draws predictions from technical study over 12 periods, with each period 15 minutes in length. Trading decisions based on the MAA technique considers historical data to arrive at relatively safe predictions.

We use a simple algorithm for MAA. When currency price crosses above the twelfth period, simply move away it is a signal to stop and reverse. In this way a long position will be liquidated and a short position will be established, both using market orders. This system keeps trades constantly active in the market, with either a short position or a long position after the first signal. Risk is minimized.

Intermediate level strategy calls for analysis of support and resistance levels. The market likes to trade above support levels and trade below resistance levels. If either a support or a resistance level is broken, then the market follows through in the direction given. These breakpoints can be determined by analysis of the chart and assessment of where the chart has encountered unbroken support or resistance in times past. Identify these critical points and you can ascertain periods when you plan to open or close a position.

An advanced tactic that many consider exotic is the balloon strategy. The Balloon is an option that balloons, or increases in size when triggers are breached. Take the case of an investor who predicts that the dollar will gain strength against the Euro in the near future and is currently trading at one hundred, the investor will see one hundred ten as having strong resistance, but he also believes it will be broken.

Now, rather than buying straight US dollars at one hundred for the next six months the investor will purchase at at the money balloon call with a One Hundred Ten trigger and multiple of two. The investor then acquires a One Hundred Ten call in USD110mm. However if the dollar and Euro ever trade at or above one hundred ten, the 110 call will double to USD 20mm.

A day trader at heart? The Double Bottom is definitely for you. Significant to the short term trader, the double bottoms indicate a possible major change in currency sentiment and indicates a shifting trend. The pattern is used on all times frames, and many compelling intraday and long term bull markets are identified from this setup.

Analysts recognize that double bottoms quickly reflect strong support levels. When prices fail to break support in the down trending markets on more than one occasion we see powerful changes of trend. These reversal signals are revealing. The most common portal where a trader will open on a double bottom trade is upon a maneuver through the high of the two troughs. This high embodies secondary resistance, and when penetrated confirms a price reversal. From this vantage point, stops are placed around the lows of the patterns because a move below lows negates the pattern premise. Easy isnt it?

To round of your arsenal of forex implements, arm yourself with the ichimoku chart. These charts consist of following indicators, which identify support and resistance levels and create trading beacons in a manner that is akin to moving averages. A contrast however between both is that the Ichimoku chart lines swing forward in time, creating vast swathes of support and resistance zones while decreasing the risk of trading false breakouts. They are arrived at with data on trend existence, direction, support and resistance.

The four primary lines include:
Turning Line = (Highest High + Lowest Low) / 2, for the past nine days
Standard Line = (Highest High + Lowest Low) / 2, for the past twenty-six days
Leading Span 1 = (Standard Line + Turning Line) / 2, plotted twenty-six days ahead of today
Leading Span 2 = (Highest High + Lowest Low) / 2, for the past fifty days, plotted twenty-six days ahead of todays date.

Commit these tactics to memory and bring home Your Gold..

An enthusiast of forex and radionics, Joseph R. Plazo, Ph.D offers leadership executive coaching and helps people find great jobs in the Philippines.

Forex Trading - Getting In On Long Term Trends a Live Example

When a trend has started how do you get in? There are always plenty of opportunities as trends can last for months or years.

Here we will outline a simple method on a live example.

Lets look at it

If you read our recent article you will know that we wanted to get into US Dollar and Canadian Dollar and this set up has just come to fruition.

Here it is:

You can see it on any many chart services but the one we are using here is futuresource.com and were writing this on 06 03 PM CET.

Pull up the weekly chart and you will see the long term trend in US Dollar is down and you want to be in on the longer term trend

Now pull up the daily chart.

You will see the US Dollar is having a counter trend rally.

Last week we said that resistance and nearby highs would probably hold.

Check out the strong resistance and the top of the Bollinger band.

This is the line the US Dollar had to cross and it hasnt and is faltering just below this level.

Get Confirmation

Rather than just jump in and trade, we look for a test and a fall off in near term price momentum.

If you want to time trade entries the stochastic momentum indicator is simply one of the best timing tools you will find.

It measures short term velocity of price and is a great timing tool and confirms weakening momentum.

The key here is to watch resistance and then wait for prices momentum to the upside to stall.

All you do is simply watch for the stochastic lines to cross and point downwards with bearish divergence which has just occurred.

It really is that simple.

Identify strong resistance look for a strong rally into it and WAIT for confirmation of weakening of momentum. Dont jump too soon

The real key is to get confirmation of weakening momentum in the counter trend rally and thats where the stochastic is so useful.

Many traders simply jump in near resistance and expect it to hold but this means you reduce the odds of being successful and support and resistance levels are broken all the time.

Right or wrong

This is a trade with low risk and good rewards and you can run it or simply wait for a quick blast to the middle of the Bollinger band.

Look it up on the net or read our other articles, its an under rated yet very useful tool

FREE ESSENTIAL TRADING PDF's and MUCH MORE

On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html

Flipping Properties Works In Any Market

For years, hot-shot speculators made huge profits flipping condos in Florida and Vegas before they were even constructed. All the while, the naysayers in the ivory towers of Wall Street and academia warned of a "housing bubble" that was sure to burst as all bubbles do.

When Fed chairman Alan Greenspan said that national real estate market was "frothy," the writing was really on the wall, and anyone with half a brain could see that we were in for a cooling of the housing market, at best. And yet still, speculators continued to profit, and the real estate bull market marched on.

But the bulls aren't marching now. Greenspan handed his matador's cape to the new Fed chairman, Ben Bernanke, who continued the policy of interest rate hikes designed to deflate housing. No longer accelerating at a break-neck pace, home prices have flattened like a pancake in many markets, and new the condo speculators who got in late are in for a world of hurt. Clearly, the housing boom is over in many parts of the Country. But contrary to the media hype, this is great news for flippers!

It should be made clear that there is a difference between flipping and speculating. While speculators may be a sub-set of flippers, they are, at best, the amateurs of the real estate investing family. Flippers who have consistent success are more conservative and have a fundamental approach to real estate investing. While it may not be as exciting as speculating, the rewards of more conservative flipping are nearly as generous, and they are paired with far less risk.

The biggest difference between flipping and speculating is that flipping works in any market, whereas speculating only works in certain places at certain times. Las Vegas from 2002 to 2004 was a great time and place to be a speculator, but if you were still in the market in 2006, chances are you got burned by more than the hot desert sun.

Basically, speculating often works on the greater fool thesis - that you can always find a greater fool than yourself to take a property off your hands in the expectation that he will be able to find yet a greater fool. Eventually, someone is left holding the bag and that's when the party is over.

Flipping, by contrast, relies on fundamentals. The idea is not to catch a shooting star in a rapidly appreciating market. Rather, the plan is to find undervalued properties, rehab them, present them in an attractive manner, and sell them for a reasonable profit.

Not only is a rising market not a requirement of flipping success, it may even be a mild detriment! After all, it is a bit harder to find bargain properties in booming areas. Sure, it can still be done, but the point is that even falling markets are prime for flipping since the holding period is often too short for the value of the property to decline beyond the deep discount at which it is purchased. Assuming that you add value through rehabbing, you almost can't lose!

While speculators often rely on the "greater fool" strategy, flippers tend to have one of two exit plans:

1) Quickly flip the title to another investor, or
2) Rehab and sell the property at the retail level. While the lion's share of the profits go to the retailer, a quick wholesale deal can free up your cash (and energy) for the next deal. But what if neither strategy works? What if the market really crashes and the buyers disappear? Is all lost? Of course not!

For complex economic reasons, the rental property market does not always correlate with the housing market. In fact, they are often countercyclical. Although most flippers aren't terribly interested in being landlords, generating rental income from a botched deal is a solid backup plan. Better yet, you can usually refinance the property after rehabbing it to get all of your money out.

From that point forward, the bulk of your rental income will be pure profit, and when the market improves, you can make the sale. Even better, you can offer your tenants a lease with an option to buy, which is attractive to many young families looking for their first home.

The media portrays real estate flippers as the investment world's answer to Wild West gunslingers, but in reality, nothing could be further from the truth. Compare the worst case rental income scenario of real estate flipping with the worst case Enron scenario of stock market investing. There really is no comparison!

If you take a fundamental approach to real estate rehabbing and flipping, your risk is limited and your profits are virtually limitless. It really is the best of all worlds.

Richard Reichmann is internationally known as a millionaire maker. He's a leading consultant in real estate and internet marketing strategies that are profit proven.

Subscribe to our FREE newsletter Value $147.00 http://www.InstantRealEstateWealth.com

Forex Converters - Trading Currencies In The Forex Market

Forex trading is becomes more popular with traders as time goes by. In the simplest terms, Forex trading is the buying of one currency and the selling of another. Forex brokerages offer a convenient gateway to the foreign exchange trading by giving access to the biggest financial market in the world. Forex trading is always done in currency pairs, and Forex brokers around the world access money indices via currency converters and online platforms with rates given in real time.

Forex brokers usually have relationships with a large network of worldwide banks and international money services. In the market of currency exchange, the value of major currencies change continually, with investors hoping to make a profit from the purchase of stronger currencies. Forex has a superior liquidity when compared to other markets, and any dealings can be readily converted into accessible cash.

Trading in Forex has an increased risk when the trader uses too much leverage. Trading between two non-dollar currencies occurs first by trading one against the US Dollar and then trading the US Dollar against the second non-dollar currency. Trading Forex on margin carries a high level of risk and is not recommended for all investors. Trading with an on-line platform carries additional risks.

While online currency trading is not gambling, you need to know what kind of investment it is and how it works before you consider trading. With the interest rate and conversion rate amount changing hourly, brokers have the ability to enter the exchange market at just the right moment to achieve the best exchange rate for any type of currency.

Exchange rates are usually given as one unit of one currency to units of another currency. Exchange rates give the relative prices of different currencies, with rate movements relying solely on macroeconomic factors. Exchange rate forecast services can help you in plan for the future by giving their expected rate predictions, an important consideration when making international investment decisions. Exchange rates fluctuate when the relative supply and demand schedules do not balance, and have become necessary because currencies have different values relative to one another.

Currency exchange rates are among the first thing that concerns people as they consider an international-oriented business plan. Currency exchange rates are constantly changing, meaning you can receive more or less of a foreign currency depending on when you transact a money exchange. Currency exchange rates, available at banks and published daily in the press, are set by the buyers and sellers of currency. If currency exchange rates are favorable for the US Dollar, they are also favorable to countries that are pegged to the dollar.

AARON H PRATHER owns and operates http://www.forexconverters.com a site covering the FOREX currency exchange market. Forex Converters

Stocks Double All The Time

Did you know that $1000 Invested one time, if it returns 100% a year would be worth over $1,000,000 in 10 years? Here is how it breaks down

Start $1,000

End of Year 1 $2,000

End of Year 2 $4,000

End of Year 3 $8,000

End of Year 4 $16,000

End of Year 5 $32,000

End of Year 6 $64,000

End of Year 7 $128,000

End of Year 8 $256,000

End of Year 9 $512,000

End of Year 10 $1,024,000

That is doubling your money every year.

Of course that scenario doesn't include taxes etc.. However if you had a 401K you wouldn't get taxed on it.

Maybe you have seen that before but that shows that the person with a Long term strategy can make a great deal of money from not a big investment. 100% a year isn't a lot when we are talking about HYIP investments but how many of those are going to last 10 years as well? NONE

Did you know a good percentage of Stocks double each year? I just did some quick research on this with the newspaper. I opened up the Stock Market section for the Nasdaq/AMEX. I decided to check the 52 week high and 52 week low for some stocks. What I was searching for is how many stocks under a certain letter were at least double from its 52 week low. In other words for a stock like "Hansen" (I have NO IDEA WHAT THEY DO OR ANY INFO ON THEM THIS IS JUST AN EXAMPLE) This company (Hansen) had a 52 week HIGH of $44.25 and 52 week Low of $8.51 and was trading above $44. So from the low of $8.51 to the high that is over 5x increase. Point being their are a LOT of stocks that move up 100% in a year, Hansen moved up 400%+!

I did research on a few different letters. (I only looked at letters that had a small # of companies just to show you the research. I didn't want to do like the letter "S" which would have hundreds of companies)

I did the letters "H", "J", "O", and "XYZ". In my paper the letter "H" had 33 companies listed for the Nasdaq/Amex of those 33 companies 16 of them had a 52 week hi/low difference of at least 90%. 17 of the companies did not.

The letter "J" had 9 companies that had a 52 week hi/low of 90% or better, and 5 companies that did not. The letter "O" had 27 companies that had a 52 week hi/low of 90% or better and only 15 companies that didn't. The letters "XYZ" had 17 companies with a 52 week hi/low of better than 90% and 6 that did not.

So of those 6 letters listed above companies under those letters had companies with a 52 week hi/low of 90% or better 69 times and not 43 times.

My point of this is MANY stocks each year double in value no matter what the overall stock market does. All you need is to find 1 a year that can double. That could go from .50 cents to $1. Or $5 to $10 or $20 to $40. You ONLY need 1 stock!

One stock I mentioned on our Alley Cat Trading Newsletter went from .26 cents back in late November to almost $1 in early January. That more than doubled in less than 2 months!The stock was CYGX. I am sure there are many stock trading newsletters online and off. Do some research on them and the companies they recommend. Remember you only need 1 good stock a year. You could very well have a situation like with CYGX where it doubled in a very short time You take your profits and go hunting for the next stock. You don't always have to be in a trade. If that trade took you 2 months you are 10 months ahead of schedule take your time to find the next stock that could turn. Maybe that stock ends up taking 14 months to double.

Copyright 2006 Steve Hoven

Steve Hoven has had years of experience trading. check out his free newsletter at http://www.alleycatnews.net.