Wednesday, July 27, 2011

US Finance Market Condition

Not yet agreement about the increase in U.S. debt limit before the August 2 deadline to make the U.S. dollar slumped further. The U.S. dollar has fallen sharply since President Barack Obama revealed his arguments against the Republican party in front of the U.S. public.

In trading Tuesday (26/07/2011), U.S. dollar slipped almost 1% against Euro. Euro is sold at U.S. $ 1.4516, higher than the level of U.S. $ 1.4375 in earlier trading.

The U.S. dollar also dropped against currencies' safe-haven Swiss franc, to as low as 0.8012 francs, and fell against the yen to positions 77.94 yen. Pound Sterling also rose sharply against the dollar at U.S. $ 1.6422, compared to earlier in the U.S. $ 1.6278.

The biggest concern of investors is the political impasse that could cause the U.S. government ran out of money to pay bills and debts on August 2. Obama administration had to fight hard to obtain the approval of U.S. debt limit increase of $ 14.3 trillion before the deadline.

But investors in the U.S. bond markets give different messages to U.S. politicians, despite the prospect of U.S. debt rating could go down due to not yet reach an agreement on the debt. U.S. debt yields 10-year futures declined 2.95% from 3%, while the 30-year bond futures fell to 4.27% from 4.32%. And U.S. finance ministry is easy to do an auction of 2-weeks futures bond for U.S. $ 24 billion, and also the 2-year bonds amounting to U.S. $ 35 billion managed to get a good price.

Thursday, July 21, 2011

Analysts Believe Gold Price will still Shining

Gold price fell immediately after the U.S. reached an agreement on the handling of the crisis. Gold finally weakened after touching the highest record at U.S. $ 1609.51 per ounce.

Even so, analysts remain confident the major gold trend still indicates a potential bullish. The price of gold still has the potential to continue strengthening. Gold price will attempt to around the level of U.S. $ 1,619.80 per ounce.

Technically, RSI conditions could be in an overbought position and overshadowing a rally with the possibility of positioning the gold price has peaked. Thus, investors should begin to be aware of the potential for correction and attention to the target support in the range level of US $ 1,578.50-US $ 1559.30 per ounce.

Newedge USA LLC actually dare to predict gold prices will continue to rise this year. Newedge predict gold price will go up to touch the level of U.S. $ 1,800 per troy ounce by the end of the year.

In addition to the price of gold, Newedge also predicts silver price will rise and will reach U.S. $ 70 per troy ounce in March 2012. Newedge reasoned, the high level of demand from Asia as well as investors action on the entire stock of gold as a hedge into a number of reasons.

Gold proves be one instrument to protect wealth in difficult times. Gold and silver demand from Asia will remain high for a considerable period of time. In addition, the improving trend of the European economy has more clearly.

The prediction shows, the gold price will surge by 13% from current levels. Just a reminder, the price of gold touched the highest record in history on July 19 at the level of U.S. $ 1,610.70 per troy ounce. Meanwhile, silver prices forecast indicates, these metal prices will jump 77% from its closing price yesterday.

just Information, there is now starting to have hope in the handling of American debt crisis that will be due August 2. A set of senators from the two parties gave the proposal increase the debt ceiling to U.S. $ 14.3 trillion and reserve budget cuts of up to U.S. $ 3.75 trillion. U.S. President, Barack Obama welcomed the progress and calling it a significant step and urged lawmakers to begin the debt discuss to avoid default.

the historical of gold measurement
a fine ounce is a troy ounce of 99.5% (".995") pure gold
a standard ounce is a troy ounce of 22 carat gold, 91.66% pure
in modern day, an ounce of gold (= 1 troy ounce) is referred as a 99.99% pure gold piece or gold grains (gold shot)
international troy ounce is equal to exactly 31.1034768 grams.

Monday, July 18, 2011

Google Stock Performance

Fluctuations in the performance of Google to help stock index on Wall Street out of the slump. Although there is high anxiety of investors due to the uncertainty of U.S. government debt settlement.

Anxiety about the U.S. government debt and Europe to make Wall Street devastated in the week. Within a week, the S & P 500 fell 2.1%, the Dow Jones lost 1.4%, and the Nasdaq down 2.5%.

In trading Friday (15/07/2011), the stock market ignored the fierce debate in Washington about raising the debt ceiling to avoid default on debt.

But it turns out Google Inc. shows a polished performance of their income and make the market rose. Google became a top Gainer on the Nasdaq.

On Friday, the Dow rose 42.62 points (0.34%) to a level of 12479.73. The Standard & Poor's 500 index rose 7.27 points (0.56%) to a level of 1316.14. Then the Nasdaq rose 27.13 points (0.98%) to a level of 2789.8.

The market situation is full of uncertainty, where the European Banking Authority said there are 90 banks in Europe that are undergoing the test, whether they could survive if the economic recession happening again.

Friday, July 15, 2011

Gold Investment

Gold price in trading Thursday kept creeping up, even touching its highest level after comments by Federal Reserve chairman Ben Bernake about the certainty of a new stimulus package.

Gold price rose 3.80 dollars to the position of 1589.30 U.S. dollars per ounce. This position is trhe highest record in U.S. dollar value of all time. However, if the calculated inflation, this level is still below the peak price in early 1980. while Gold price today buy: $1,586 sell $1,582

In the midst of market uncertainty, investors buy up gold and silver because it is considered to have a stable value. Silver for September delivery rose 54.3 cents to 38.694 U.S. dollars per ounce. Investors also bought these precious metals because of concerns about euro zone debt crisis and the negotiations in Washington concerning the United States Government loans limit.

Reasons for Gold Investment today

Gold is still considered the best place for investment. In the midst of economic conditions that still covered the uncertainty, gold is still capable of yielding investments of up to 13% in the last 3 years. International gold prices are believed to penetrate the level of U.S. $ 2,100 per ounce in 2014.

Chief Investment Strategist Standard Chartered Bank, Steve Brice said that gold is still a favorite investment in the bank and is the most attractive commodity for the long term. He saw the gold outlook still 'bullish'.

One reason for the bright outlook for gold is related to stronger economic growth in China and India, thereby increasing revenues within the next few years, which in turn boosted demand for gold.

In addition, increased levels of debt and concerns about sustainable economic recovery in the countries of Europe have reduced the sensitivity of banks to inflation. Gold typically remains good on the environment of negative real interest rates.

Gold price history is still performing well during periods of negative U.S. real yields and gold fell when real interest rates in positive periods.

Another reason for the rise in gold prices is the attitude of the Central Bank in Asia are increasingly like the gold and the transition from the World Central Bank which are the source of gold nett supply into a situation where they increase its gold reserves (nett buyers). Central bank became nett buyers in the gold market, which means raising the demand.

Finally, the gold supply will likely be retained in short-term despite the investments activity started to increase.

Gold Price Today

Gold price scored the highest record in the history, with a same trigger: the worsening debt crisis in Europe and the possibility of default of the U.S.

In trading Thursday (14/07/2011), in the spot market price of gold touches the highest record at U.S. $ 1,594.16 /ounce, before it finally closed up 0.3% to as low as U.S. $ 1,586.11 /ounce.

The price of gold futures for delivery in August also closed up 3.80 dollars to U.S. $ 1,589.30/ounce, and traded in the range $ 1579.40 to 1594.90 per ounce. Gold price today buy: $1,586 sell $1,582

Gold price in Asian markets yesterday also had surged to its highest point at U.S. $ 1,590 per ounce. Highest previous record price of gold is U.S. $ 1575.79 per ounce printed last May 2.

In nine consecutive days, gold price continues to rise up to the longest rally record since October 2006. Gold prices have gone up to 7% in the period. Now analysts expect gold price continues to rise, even at U.S. $ 2,000 per ounce.

Gold prices surge to near the level of U.S. $ 1,600 that occurred after the U.S. dollar turned around after weakening sharply, responding to a statement the U.S. central bank governor Ben Bernanke about the economic stimulus.

Bernanke said in a statement in front of the U.S. Congress distorting earlier statement about the possibility of a stimulus disbursement of the third stage. As Bernanke said the possibility of the central bank to inject funds if the U.S. economy is deteriorating, but he confirmed the time yet to come.

Tom Fitzpatrick, head of strategic technical CitiFX said that gold prices will print a record of U.S. $ 1,700-US $ 1,750 per ounce in 2 or 3 months ahead based on the momentum and the previous rally.

Meanwhile, Michael Pento, senior economist of Euro Pacific Capital Inc. estimates that the price of gold will break $ 2,000 per ounce if the Federal Reserve would begin a third round of stimulus 'Quantitative Easing 3'.

Based on Gold price history, People will be encouraged to buy gold.

Friday, July 8, 2011

Advantages of Forex Trading Compared to Other Investment Programs

There are many investment options that you can do. each program has advantages and disadvantages of each. But as the saying goes, don't put your eggs in one basket, you also need to invest your money in several investment programs, with the percentage that suits your strategy of course.
Here are some of the advantages offered by the forex trading which can not be offered any other investment:

1. Start-Up/Capital required is relatively small.
Indeed, once the required capital can be quite large (up to 10,000). But now capital needed only $ 5000. Compare with other investments such as stocks that require at least $ 20000 of capital or investment real sector which is usually more than USD 50000.

2. Anywhere, anytime and anyone can join.
Yes, investments do not recognize castes. Likewise with forex trading. Whoever you are, merchants, employees, a housewife or even once a farmer can join. And more great again with the advancement of the internet, you can trade anywhere without having to go to the relevant stock exchange or call your dealer directly. It definitely saves your time and cost!

3. Return on Investment is highest than other investments.
Are there investments that can offer a return to infinity? Forex can do it!

4. Real time prices that you can access at any time free of charge.

5. High liquidity.
This means you can always buy or sell currency that you want traded and there is no term fail to deliver here. When you take action to buy, there are always others who will sell it to you and conversely. This occurs because the scope is the world stock forex investment that are connected to each other. Unlike the local stock exchange where the transaction takes place only on the stock, so it can happen fail to deliver events.

6. There is a demo account that you can have for free without paying a dime! If you are new to forex, it will really help you because the price listed on the demo account is the same as the price actually occurred in the market.

7. 24 hours a day and 5 days a week hours trading.
There is no night or day in the world of forex trading. The market lasts for 24 hours a day starting from the Asia to European and American markets. Compare with shares that are only open in office hours or commodity market which is only open in the morning until noon. If you are an office worker, you can trade forex trading at night and does not interfere with your working hours.

8. Investors act actively in the investment.
Unlike other investments where investors can only entrust a third party managed funds (mutual funds, insurance, deposits, etc.), the forex trading is you who decide when and how much you are going to invest, to take action to buy or sell. Now your investment depends on yourself and not to others.

9. Security and confidentiality is assured.
Although transactions conducted via the Internet does not mean security and confidentiality of information and funds are not guaranteed. Broker forex trading provides data encryption in the transaction and your funds is stored safely in segregated accounts at the forex broker if you do it legally.

10. Online reporting and transaction.
It first forex trading is done through telephone and written report of your transactions will be sent via email or even post every month. But now with internet access, can you access report of any transactions you done whenever you want without having to wait for the part of the report to your broker.

11. Leverage offered by 1:100
This means with one part that you remove, you can buy or sell as many as 100 parts. This is the excess of the margin trading where it takes is only guaranteed to buy or sell the required items. In forex trading is implemented with a capital of $ 100 then you can buy the dollar as much as $ 10,000 and also conversely to the selling action. High leverage and low margin can basically increase the benefits or conversely loss of you. Thus you should consider the investment risk and your investment plan.

Tuesday, July 5, 2011

Two Ways Opportunity in Forex Trading

In the world of forex trading is known the term Two Ways Opportunity. What is Two Ways Opportunity?
Investors have the opportunity to gain profit, both when prices rise or when prices fall. For the concept of profit if the price rises may not need to explain because it is a reasonable concept, we buy something when it's cheap (Open Buy) and hope the price goes up then sell it (Sell Liquid), profit obtained from the difference between the selling price with the purchase price.

Well what if prices go down? How to get profits?

Forex Market is very large market, namely the international market worldwide, and transactions happen quickly.
Concept to profit when the price comes down is:

Sell ​​when the price is expensive
Then
buy back when prices fall

How can I sell if I have not bought?
It could, because anyone would to lend to you!

A simple example is Consignment in the world trade system, which we loaned goods by the Supplier for sold and we do not directly pay when we receive the goods. After the goods are sold to our customers (of course more expensive than the purchase price to the supplier), then we pay back to our supplier with a cheaper price than the selling price to our customers.

Well in Forex Trading as well, when you open a Sell Position, then you borrow another person position to be sold and you must return it again with purchase from the market, certainly we hope when buy in repayment, the price is cheaper (down) than when we sell / borrow.

This process is carried out by the system through the stock, so we do not know from whom we borrow / open sell position and from whom we purchase / closing sell positions plus with a global Forex Market then there's always those who sell or buy on time.

Well this is the concept of Open Sell, open Sell Position (sell) and expect the price down so that we can cover (Buy Liquid) with a lower price. Profit gained from the difference between the selling price with the purchase price. But if until prices rise above the purchase price (Open Buy), then you lose. So keep be careful!

Bid, Offer, Spreads and How to Read Forex Quotes

After learning how to deal in forex trading, it now needs to know its main activity, buying and selling. Forex trading activity is not separated from the 'Buy' and 'Sell'. Every trader has the freedom to perform one action on which he was to gain profit. Buy can also matched with a 'Bid' or 'Long'. And 'sell' paired with the 'Offer' or 'Short'. So if you read an article about forex and there is mentioned a term 'Bid' or 'Long', need not be confused because the two terms are synonymous with Buy.

Reading the quotes is easy. But if we do not understand can be confusing. Quotes on forex transactions is usually written in conjunction with its pairs and always follow the market changes from time to time (running / real time).

If you are a newbie in the market, then you will see many foreign terms that sounded weird. To that end, my-trade.blogspot.com has posted about forex trading terms that you can access through this blog.

How to read quotes quite simple if we remember two things:

1. The first currency mentioned is the base currency
2. Base currency value is always 1.

For example: USD / CHF 1.4623 means 1 U.S. dollar is worth 1.4623 Swiss Francs. If on the next time a value of USD / CHF 1.4630 means the U.S. dollar rose 7 points because they can buy more Swiss Franc. There are terms in the forex called Bullish and Bearish. Bullish means a currency trend which is being strengthened against other currencies. Bearish is a trend of weakening a currency exchange rate compared to other

Each pairs have two price displayed: the purchase price (bid) and selling price (offer). The difference between them is called 'spread'. So, if we use the example above, USD / CHF 1.4623/28 means the selling price of U.S. Dollar is 1.4623 Swiss Franc and the purchase price is 1.4628. Here the Spread value is 5 (.. 28 -.. 25 = 5).

Spread is determined by the brokers and its value varies between one broker with another. The less spread is better for investors. There are forex trading brokers with a competitive spreads, such as MB Trading (spread according to market) and Capital Gain (fixed spread).

Monday, July 4, 2011

How to Trade in Forex Trading

Broadly speaking, the way to transact in forex trading is divided into two, with a telephone which is called by dealing quotes (DQ) and the newest way is to use the internet so-called Online Forex Trading.

1. Dealing Quotes (DQ): Ordinary people often see it on television. Someone was on the phone with a busy and asking price. Within seconds the transaction is completed and the transaction data has been stored by the dealer (the forex trading dealer is someone who is placed by the forex trading broker with the task of channeling the mandate of Investors to transact). Dealers tell us the price prevailing at that time. In the event of a match the price then the transaction occurs. Evidence of the transaction is a sound recording telephone conversations and quotes (record) all of which are stored by dealers.

It looks simple and easy, pick up the phone, talk and then finished. But if we look further, this method has many disadvantages. The first weakness is the lack of evidence of transactions that are only held by the dealer. Investors are quite dependent on the evidence in the form of quotes and transaction records which are also held by the dealer.

And investors must recognize that the evidence of legitimate transactions is recognized only two things (because it is tied to the Client Agreement). Whereas if the investor had evidence of transactions recorded on his own initiative, the evidence is not recognized legally by the dealer and applicable law. In this case the investor's position became weaker. What if the proff of transaction is lost or damaged while the transaction is already underway and investors should make a profit?

Another disadvantage, because the transaction brokered by the dealers who also is a human then the human error factor is always there. Although dealers usually are trained people, it still has a factor of inaccuracy, negligent or even emotional factors that can reduce professional work.

2. Online Forex Trading
Along with the rapid advancement of the internet, now the transactions can be done via the internet. The price displayed is the price of the official and recognized by the international community. And that is precisely on the computer screen of investors! In this way, investors can transact the money as they wish. No longer require dealers. Because the transactions are made by investors own the possible losses arising from dealers factors to zero. Reporting is made online and in real time. Easier, no pricing games (by the illegal dealers / forex trading brokers), and control completely in the hands of investors. In addition there are many facilities owned by the online transaction is not shared by conventional means. Investors do not need to go to the stock exchange or any call, simply by internet line, everything has been fulfilled.

If you are interested in getting money from forex trading, and you've mastered the forex trading systems, then I highly recommend if you want to invest in forex trading, look for brokers who provide online forex trading platform for the convenience and security of your funds.

Friday, July 1, 2011

Forex Trading Education: Basic Guide(2)

Benefits of Forex Trading if done properly will be great. Its main benefit is obviously the extra income. Your life becomes better for it. Another benefit is having the ability as a forex trader you will know in advance the most recent economic events. Good or bad you are so more could be leading to circumvent or take advantage. To get the benefits that you must want to learn the fundamentals of forex trading properly. Learning can be done by reading forex trading tutorials, open a blog page about forex trading, and looking for a forex trading guide from a trusted source. Understand the basic terms of forex trading will be very beneficial for you. The following are some terms you should know.

What is a Lot?
Lot is another name for Volume. Standard unit size of the forex trading transaction. Typically, one standard lot is equal to 100,000 units of base currency, while 10,000 units is the mini account, then 1,000 units are micro account.

What is Take Profit in trading?
Take Profit is setting stop trading after we get the profit. Example: Buy EUR / USD at 1.4300 and the position moves the price reaches 1.4350 and if we set a take profit at 1.4350, then you've got a profit 50 pips.

What is Stop Loss?
Setting stop trading if you have a loss. Example: Buy EUR / USD at 1.4300 and price position moves down to 1.4280 and if the Stop Loss is set at 1.4280, then you lose 20 pips.

What is Balance?
The total of all your money deposited in your trading account.

What is Margin?
The money that you used to open or maintain a position. The amount of margin required depends on how much you use a lot for trading.
Margin calculations: LOT * CONTRACT SIZE * CURRENT MARKET PRICE / LEVERAGE

Margin Calculation Example:
GBP / USD: 1.5020 (current market prices)
Lot: 1.0
Contract size: 100.000
Leverage: 1:2000

So 1.0 (lot) * 100,000 (contract size) * 1.5020 (current market price) / 200 (leverage)
- 1.0 * 100.000 = 100.000 * 1.5020 = 150.200 / 200 = $ 751 (this is an unused margin)

What is Free Margin?
The definition of Free Margin is in which to trading or to maintain your open position.

What is Margin Level?
Level Margin calculated on a percentage of the level of free margin.

What is Equity?
Equity is the Balance-Floating.

What is a Buy Stop?
Buy Stop is orders delay that you can place and put your order above current market price. Example: Current Market Place EUR / USD is 1.3530, you can place a Buy Stop above the current market as 1.3550. When the market price rose to 1.3550, it will automatically open your Buy Stop position to the position of Purchase (Buy Position).

What is a Sell Stop?
Sell Stop is order delay that you can place and put your order below current market price. Example: Current Market Place EUR / USD is 1.3530, you can position the Sell Stop below the current market as 1.3520. When the market price falls to 1.3520, it will automatically open a your Sell Stop position into a Sell Position.

What is a Buy Limit?
Buy Limit is order delay that you can place and put your order below current market price. Example: Current Market Place EUR / USD is 1.3525, you can place a Buy Limit below the current market as 1.3520. When the market price falls to 1.3520, it will automatically open your buy limit position to the position of Purchase (Buy Limit).

What is a Sell Limit?
Sell Limit is order delay that you can place and put your order above current market price. Example: Current Market Place EUR / USD is 1.3525, you could put a sell limit position above the current market as 1.3530. When the market price rose to 1.3530, it will automatically open your sell limit position into a position of Sell (Sell Limit).

Margin Call
Margin Call is a request from a broker forex trading or dealer for additional funds or other collateral to guarantee performance on a position that has moved away from your position.

Step Out
Step Out is your position will be automatically closed when your margins are not sufficient to cover your losses if the market moves away from your position.

What is the Gap?
Refers to two kinds of situations: A bid from the current quotation which is higher than the previous quotation Ask, and an the current quotation Ask which is lower than the bid of the previous quotation. It sometimes happens on Monday when the market opens.

What is Spike?
Spike is a Error Quote from Broker forex trading server. Spike is the error quote with the following characteristics:
a. Significant price gap;
b. In a short period of time the price rebounds with a price gap;
c. before the appearance there is no rapid price movements;
d. before the appearance there is no important macroeconomic indicators and / or corporate reports.

Usually the broker got a quote from the system error information. Quote error occurs mainly due to two reasons:
Technical failures (technical failure)
Deal separate, often mismanaged, because of the information system.

What is Slippage?
Slippage is the difference between order price and the executed price, calculated in pips. Slippage often occurs at a very fast market movements, or when the execution is done manually.

What is the Maximum Deviation?
Maximum Deviation is setting in order to be allowed enter into the market with different price set for buying or selling when the market moves too fast.

What is Swap?
Swap is an exchange flow of payments over time according to specific requirements. Type most commonly used is interest rate swap, in which one party agrees to pay a fixed interest rate in return receive an adjustable rate from another party.

Forex Trading Education: Basic Guide

What is Forex trading ?
Simple Definition of Forex trading (Foreign Exchange, Forex currency exchange) is the buying and selling currencies simultaneously or exchange one country to another country's currency. Forex market is non-stop cash market where currencies are traded from various countries, especially via brokers. Forex currency trading is constantly and simultaneously bought and sold through local and global markets and trader's investment increase or decrease based the value depending on currency movements. Forex market trading conditions can change at any time in response to real events.

Like in general markets, there is also is a bid / offer spread (differences between purchase price and sale price). From the difference between the major currencies, the difference between the price which the determinant of the market (market-maker) will sell ("ask" or "offer") to wholesale customers and the price at which the same market-maker will buy ("bid" ) from the same wholesale customer is minimal, usually only 3 pips. In EUR / USD price of 1.3022 a pip would be a '2 'at the end. So the bid / ask quote of EUR / USD likely to be 1.3022/1.3025.

Attractiveness of Forex trading for private investors are:

a. 24-hour trading, 5 days a week with nonstop access to the Forex dealers.
b. A large liquid market making it easy to trade major currencies.
c. A lively market offers opportunities to gain profit.
d. Standard instruments for controlling risk exposure.
e. The ability to achieve a profit when the market rose or fell.
f. Trade that were leveraged with low margin requirements.
g. Many options for trading with zero commission.

What is Leverage?
Leverage is the ability to help your account to position which is bigger than the total margin accounts. For example, if a trader has a margin of $ 1,000 in his account and he opened the $ 100,000 position, he leveraged 100 times or 100:1. When he opened the $ 500,000 position with $ 1,000 of margin in his account, his leverage is 500 times or 500:1. Increasing your leverage mean magnifies both profit or loss.

What is it Spread?
Spread is the difference between Bid and Ask prices. The difference between the sell quote and the buy quote or the bid and offer prices. For example, if EUR / USD quotes read 1.4200/03, the spread is the difference between 1.42000 and 1.4203, or 3 pips.

What is a Pip?
Pip is a small amount of price movement. Example: GBP / USD: 1.4000 then turned into 1.4001 so a movement of pip is 1 pip.

What is a Lot?
Lot is another name for Volume. Standard unit size of the forex trading transaction. Typically, one standard lot is equal to 100,000 units of base currency, while 10,000 units is the mini account, then 1,000 units are micro account.

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