The Path to Success in Currency Trading

Currency markets have grown significantly in the last one decade and have thus become a lucrative investment channel for many people who are average risk takers and yet want a bigger return on their capital. Sometimes called forex trading, currency trading operates on the basic principle of buying low and selling high. The only difference in this case is that the individual is buying currency and not goods or services. As is common with stocks, the price of buying and selling currencies fluctuates regularly, availing an opportunity for the shrewd investor to make huge profits. The concept is as simple as basic arithmetic, such that everyone, just about anyone, can grasp and master it to stardom.

The beginning point of currency trading is education through research and consultation, whereby the investor learns all there is to learn about the currency markets. The internet is rich with such materials and reports but alternatively a local investment adviser and shrewd investors with the experience can be consulted. After learning, the next step is to specialize in just a few currencies, basically because the world is full of currencies most of which you can’t track closely. Zero in on a few and learn their trends by heart. At this stage it is advisable that you get yourself one of the numerous currency trading software available in the market. This will be a useful tool to monitor, evaluate, and analyze the forex markets until and even after you adequately master the game.

Start by predicting trends in the market every morning and evaluating your accuracy every evening. Before you put your money out, ensure that Continue reading

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Questioning the US Treasury’s Bailout Plan

The US corporate finance sector has undergone thick turmoil in the last one decade. To an extent, the current chaos should have been seen coming, from afar. With consecutive catastrophic losses, rising and overpowering unemployment, and little government control in how institutions bear risk, it just had to happen. Bad stuff has happened, jobs have been lost, careers thwarted, and portfolios shredded. Yet the worst has not happened and still can.

Realizing this, the US government has seen the need to bailout some of the key financial institutions and help them regain a footing in the cutthroat market. The economy is very sore now, having watched the crisis unfold and then begin to bite. As such, the US Treasury bailout plan has a multifaceted role of rescuing banks, protecting their consumers, and restoring the confidence of investors in the market. These three roles must be met and played by the government if the economy is to pick momentum soon and wipe itself of the shame of the mortgage crash.

In February this year, US Treasury Secretary Timothy Geithner announced the administration’s set of measures that Continue reading

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Investment Basics of Money Flow

Money Flow (MF) can be assessed and technically analyzed using various component indicators. These indicators are vital to an investor when deciding when to make entries and exits into a specific trading program. Money Flow, as an indicator, is synonymously used to refer to the Money Flow Index (MFI). It was Marc Chaikin who developed the money flow theorem, using both the price and the volume as a calculating principle of the price action in any trading issue. When the results of a particular trading day or period have been calculated, the numbers are compared with those of previous day or period to establish whether the MF gained or lost for that particular day or period.

The flow can also be calculated using the Relative Strength Index (RSI), which only differs from the MFI in that MFI accounts for both price and volume, whereas RSI only factors price as the variable.

To calculate Money Flow, an investor uses an average price, which increases after every subsequent bar.  He then determines the average price by reducing the average price of Continue reading

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Islamic Finance World in a Scholarly Approach

Most investors outside the corridors of Islamic finance have a negative perception of trading opportunities in Islamic nations. This has been cultivated by a history of limitations posed by religious principles applied in almost all sectors of the market. It has been, and still is, a mandatory requirement that all trade be conducted in strict accordance with the Islamic law. Re-evaluation of these requirements has been ongoing, following the influence of western markets. Consequently, there has been a redefinition of Islamic finance principles to an extent that offers non-Muslim investors the go-ahead to seek markets in areas predominantly Muslim.

To understand this liberal but silent movement of the Islamic finance world, a scholarly approach is the most ideal. Islamic economics as a term can be used to refer to the application of the Islamic law in the conventional economic activity of a market segment, whether or not such application is in free will or by force. Islam and finances have a meeting point, in which the financial interests of market players are met at certain conditions required by the religion. That meeting point is where the Islamic finance world operates. This in turn demands the establishment of an Islamic economic system, based on saving, spending, and investing policies accepted by trading partners.

After such an understanding, prominent Shia scholars like Mahmoud Baqir al-Sadr and Mohammad Taleghani have helped redefine the enforcement of Continue reading

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How to Choose the Perfect Broker

Traditionally, the only sources from which a new investor could get a broker were through broker rating guides and customer feedback surveys. This simple means are getting far outdated, especially in this information age, and better approaches need to be adopted. But the guiding principle to be upheld all through the process of choosing a broker should be to identify that particular broker who is optimally and specifically suited to your investment needs.

A perfect broker will always be available to answer your calls, spend some minutes explaining the new complex stuff, charge moderate commissions, and then look out for you when something worth considering is coming up, or when hell is just about to break loose. Additionally, you need a guy who knows the game, who has the training and the experience, and fully certified by all relevant bodies. You will be wise to insist on this, otherwise you will get yourself into a mess with crooks. It is therefore important to identify that broker who has a record of outstanding services, satisfied clients, and a reputation of character and virtue. When it comes to your hard earned money, nothing is too cautious, nothing is worth a reckless risk. So walk out and talk to the clients and know what they feel about the broker you have identified.

So let’s say you are just getting started on choosing a broker, the perfect broker for your investment needs. Start by asking yourself these Continue reading

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How the Wall Street Government Rules

Larry H. Summers, one of Obama’s top economic advisers among other White House staff, recently released a personal financial disclosure form. The Obama White House is making thousands of millions dollars from Wall Street for themselves. Simmers earned US$5.2 million as compensation from D.E. Shaw in 2008, US$2.7 million as speaking fees for several Wall Street firms, US$45,000 for an appearance in meetings, US$135,000 to visit Goldman Sachs for a day, and many such entries in the disclosure form accumulate to stupendous figures for a single year. When Obama’s White House is called a Wall Street government, there are reasons.

Most of these payments made were made to Summers in around April last year when either Obama or Clinton were expected to be in the White House this year. If any of the two would win the election, it was expected that Larry H. Summers would be in the very same position he is in now, the single most influential financial position in the US government. Some of the remittances indicated in the disclosure form (like the US$45, 000) were received only 8 days to Obama’s election. While it is wrong and illegal to receive a bribe so as to influence government decisions, what the Obama administration did was to receive the bribe in advance, before assuming office.

Obama first considered Larry H. Summers for the post of Treasury Secretary just before naming him as his topmost economics advisers. This change of heart ensured that Continue reading

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