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

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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 This simple means are getting far outdated, especially in this information age, and better approaches need to be adopted.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

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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

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Critical Advice for Beginners in Forex Trading

Globalization has resulted in the ease of conducting business across national boundaries. Whether you are seated somewhere in New York or Sidney, you can engage in forex trading on an international platform and build your portfolio by capitalizing on any currency pair of your choice.

Foreign currency trading is also referred to as forex trading. The only commodity that is exchanged in this market is money. This has become the biggest financial market today. Every day, 3 trillion USD is traded. Majority of the participants in the markets are individual traders and corporate investors who are quick in identifying opportunities in this trade.

Forex trade operates for 24 hours a day so as to give traders all over the world an opportunity of taking advantage of opportunities immediately they arise. Traders use the internet in order to learn about and respond to all the opportunities that arise on an international platform. The trade goes on regardless of the barriers of time zones, country boundaries and market hours.

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EUR / GBP Trends Using Autocorrelation and Correlation Approaches

Many analysts have likened the patterns of the EUR/GBP value changes to those of the EUR/AUD when viewed from the viewpoint of correlation analysis of two-point scale. Autocorrelation is a straightforward method that makes use of inter-disciplinary approaches in order to conduct market efficiency tests within the scope of the EUR/GBP.

In most cases, analysts make use of up to 100 hours worth of time-length so as to come up with a wide range of statistical data. The time series limits may extend for up to 20 units in order produce measures of returns that are properly distributed within different time limits so as to come up with free correlations.

When the two currencies are being considered for purposes of comparison, a time lag of one hour has to be the main variable within which all other factors fall. In one such analytical study that was carried out so as to find about the relationship between these two currencies between 2002 and 2009, each of the currencies was compared to other major currencies.

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The EUR / USD Debate in Light of the Current Global Economic Recession

The truth of the matter is that the dollar has become considerably weak in recent times. When the Bush administration plunged the US into war in Iraq, a trade deficit was the most immediate outcome. This weakened the dollar to a large extent. The long-term outcome was that many investors switched from the dollar to the Euro.

Another outcome of a reduced volume of trade in dollars is the increase in the prices of oil. The US economy is reeling from the effects of a biting recession although no negative growth has been reported. This is very true although the first quarter of a negative trend in growth has not yet been witnessed. Technically, there have to be two quarters of negative growth for a recession to be said to exist.

The American mortgage crisis has affected the value of the dollar against the Euro. Many realtors have stopped buying. They are standing by the fence waiting for the next shift in property prices before they can make a purchase. The mortgage in the US has spread its fangs into the UK where several banks have found themselves in liquidity crisis. One of these banks is Northern Bank, a renowned mortgage lender.

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