what is the appropriate definition of tourism industry and what is the significance of tourism industry?

Answer
Advantage (depending upon implementation some of these can turn into disadvantages)

employment (1 emp/1000 tourist) (labor intensive, few administrative positions, little upward mobility)

infrastructure development (roads, water, electricity, telecom and cybercom, but not necessarily local priorities)

cultural preservation (economic incentives to preserve food, fashion, festivals and physical history, but these tend to be superficial elements of a culture)

environmental protection (econ incentives to preserve nature, wildlife and urban cleanliness)

foreign exchange (generates resources to import food, pharmaceuticals, technology, consumer goods)

Disadvantages (depending upon implementation some of these can turn into advantages)

cultural destruction, (modernization (world mono-culture), freezes culture as performers, loss: language, religion, rituals, material culture)

primary products (sun, sand, surf, safari, suds, ski, sex) (little value added, neo-colonialism)

environmental destruction (game drives, resorts: golf, ski, beach, desert, world as play ground, SUV)

marginal employment (low skill, low wage, menial services, prostitution, drug trade, gambling, hustlers)

low benefits (no job security, no health care, no organizing, no work safety rules or enviro standards)

outside hiring (skilled middle and senior management recruited out of the area and transferred in)

concentration employment (walled resort enclaves)

seasonal employment

outside decision making (decisions made outside of the area, corporate dollars corrupt government)

unrealistic expectations (divert young people from school and brighter futures.)

anti-democratic collusion (industry support of repressive governments)

land controlled by the elite (people relocated, agriculture eliminated, prohibited from N.P.)

negative lifestyle's (STD's, substance abuse, begging, hustling)

diverted and concentrated development (airport, roads, water, electricity to tourist destinations, development not accessible to locals),

little forex stays in country (airplanes, vehicles, booze, hot air balloons, generally have foreign owners),

package programs

cruises (eat and sleep on board)

unstable market (fickle, affected by local and world events, generally highly elastic)

Solutions (visitor)

act to support cultural diversity

engage in activities that add value to the community

donât do activities that deteriorate the environment

donât engage in illegal activities

act to disperse the benefits

patronize locally (community) owned enterprises.

Solutions (host)

support the traditional cultural legacy

training and education in local culture, history, natural science, etc.

select development and activities that draw from local traditions and add value to the community

donât promote activities that deteriorate the environment

donât engage in illegal activities

adopt a program to disperse the benefits

patronize locally produced products and locally (community) owned enterprises.

make business and foreign exchange transactions transparent and efficient.

How many pips does the average retail forex trader make?

I'm trying to trade forex on my own, with 3 strategies based primarily on technical analysis, supplemented by fundamental analysis. I've developed these strategies through homework, lots of reading and just a bunch of research. I bought a system in the past and got burned. Now I'm doing it myself. Does anyone know the honest average range of pips professional retail traders make every month? My impression was that they make an average 250-500 pips a month. Not to say they do that every month, it's just the result when averaged out. Right now, after 2 months of trading, I've made a little over 200 pips and I'm hoping to maintain that and improve to the 250-500 pip average a month range. Is that realistic? Ideal? What should be my target monthly average to be a truly successful forex trader.

Answer
It is not wise to have a monthly pip target. If you fall behind your average it is easy to freak out during the last week of the month and make irrational decisions based on greed or fear. The easy way to target your trading is to set a daily pip target or what I like to call a Minimum Acceptable Target (MAP).

15 pips seems to be a conservative daily goal that if hit, will give you over 300 pips per month.

The definition of a "successful Forex trader" is in the eyes of the beholder. What is successful for one might not meet the expectations of another. Personally, I like having a target of increasing my investment portfolio by at least 8% per month.

Good luck with your strategies.

Paul

What is the best country or US state that offers the most charming taxes for investors trading primarily Foreign Exchange, Futures, Options, and Stocks?

Answer
Yeah that would be owning your own small island in the middle of nowhere, and declaring your own independence. Don't forget to create your own flag. :-)

Actually if you are in the USA, you can't move your account overseas, at least not for the Forex, anymore. They caught on to people trying to do that, and now most brokers are having to move accounts back to the USA if the person who opened the account lives in the US. Really annoying, isn't it? Anyway but, I guess what matters most, is just having a good strategy that makes money. For that, I did find a large index of strategies online. Very worth looking into. I'll post the link in my sources below. Otherwise, to avoid paying away all your money in taxes to causes you probably wouldn't support if you even knew... you can DONATE money to tax-exempt organizations, of your choice, and get tax credit for doing so. That way, rather than paying a million dollars in taxes to support God only knows what, you can give it to support a cause you actually do care about.

What type of a bank account is the best for me?

I decided to take up forex so I will need a new bank account . I will have to use it occasionally to transfer money to and from the forex account .

Answer
what type of a bank account is the best for me the answer must be figure it out your own but since is question that i should answer i will give some clues how you should choose your bank account as well as a best forex broker that could offers you profits they are given below

How To Successfully Select The Right Currency Trading Account

For any newcomer in the forex market, it is vital to choose the right trading account. A correct currency trading account is essential to start in the currency trading market.

Before selecting the account one must be aware of the pitfalls here. In a large and unregulated market like this, at any time lot of freshers tries out their luck. At the same time there are people who are trying to make money at the expense of the newcomers. They are legal and hence and if you fall for them there is no way to get redressed.

Here are a few points which should be kept in mind before plunging in the forex market.

What You Should Look For:

a. The broker should be registered with the proper statutory body. The broker should be registered in USA, UK, Australia, European countries or Japan. Also check the capital of the company. It should be not less than $7 million.

There are two types of brokers â Futures Commission Market (FCM) and Electronics Communication (ECN). An FCM broker deals from his own trading room and may not forward your deal to the real forex market. They are known to manipulate prices and you may end up being the loser.

These are enough reasons to opt for ECN brokers. ECN brokers do not own dealing desks and forward the trades directly to market. They cannot gamble against you.

b. Before signing up with any broker always check for the costs. Some brokers charge for limiting orders or for continuing to another accounting period. Some may offer improved deal so it is better to check those out.

c. Donât fall for brokers who offer unbelievable leverage like 1:400. As a fresher you may lose out entirely. These offers are made with intensions of draining you of your money so beware of them. Go for moderate leverage.

d. Start with demo account and after gaining enough confidence, move on to real account. Try to deal with no leverage. As this will ensure you earn modestly and gain confidence in the initial days.

e. It is essential to have a broker whose website is hosted with a reliable server. The website should be well maintained with minimum downtime. Ask for these data.

f. If you ever have problem with internet then you should be able to monitor through telephone. Check with the broker if such support is provided or not for delicate situations.

g. It is always better to have own charting package even if it costs money. If you seriously want to earn through trading then you should invest this much.

Keep the above points in mind before selecting a currency trading account. Start cautiously through practicing in demo account and then confidently deal in real money. In no time you will be winner in forex market.

Day trading or longer-term trading..
For stocks, commodity futures, FOREX, etc.
For instance, what are the benefits and disadvantages or trading stocks as opposed to oil futures?
Thanks a lot, I'm just curious as to why some people choose to only trade FOREX or only trade commodities when the underlying strategies and principles seem similar enough

Answer
There are many advantages to forex trading as compared to the stock market. However, beware that some of these advantages can be a double edged sword if you are not careful or donât have the knowledge to take proper advantage of them while at the same time guarding against losses.

1. Market Open 24 hours a day.
You can conduct business twenty-four hours a day with forex. Stock market traders on the other hand have a limited time when they can trade. This âperpetual open marketâ is very handy for people who are just starting out trading forex. Stocks force you to trade only when the stock markets are open, but with forex you can schedule your trading whenever it is convenient for you.

2. Margin = Leverage.
The ability to trade on margin gives forex traders significant leverage in their trading and offers the potential to make extraordinary profits with relatively small investments. For example, with a broker that allows margin of 100:1 you can purchase $100,000 in currency with only a $1,000 deposit. Of course, leverage goes both ways and can lead to large losses if you are not careful.

3. Liquidity and Trade Execution Time.
You are trading in cash when trading forex. Stock markets on the other hand require an active seller of a particular stock. Thereâs no investment more liquid than cash, so forex trades are executed near instantaneously. Thereâs no sitting around waiting for your trade to execute.

4. Market Not Easily Influenced by Individuals.
The foreign exchange market is so incredibly huge that no one individual, fund, bank, or government entity can influence it for long. This is the opposite of the stock market where one negative appraisal of a companyâs stock could send it into a tailspin.

5. Only a Few Major Currencies to Follow vs Thousands of Stocks.
There are only seven major currencies to follow when trading forex. Stock markets on the other hand have thousands of stocks available to trade not to mention new IPOs to evaluate on a regular basis. Following them all is all but impossible. With forex you can devote a lot more time to each of the seven major currencies. Some traders specialize in just 3 or 4 currencies and narrow their focus even further.

6. No Bear Markets.
you are trading to predict the direction of currencies either up or down with forex. Stocks on the other hand can experience long bear markets where seemingly everything is going down. Trading forex currency pairs is by definition an activity where you are predicting which currency will be going up and which one will be going down with every single trade. All you need to do to succeed is predict correctly, not always as easy as it sounds!

How do I pay income tax on ForEx earnings?

I am doing normal daily trading of EUR/USD, trades lasting a few hours on average. I am not sure if this is considered futures or securities and I therefore don't know how to pay taxes on it.

Answer
NOTE: "Forex Taxes" are applies to U.S. traders only. Foreign investors that are not residents or citizens of the United States of America do not have to pay any taxes on foreign exchange profits!


Forex Trading Taxation - Definition and Overview:
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...

More and more investors from all over the world are accessing the largest financial markets online through their personal computers. As demand surges for foreign exchange trading, more and more U.S. Traders have to deal with taxation issues at the end of the year.

Forex: Taxed as Futures or Cash?

Currency traders involved in the forex spot (cash) market, can choose to be taxed under the same tax rules as regular commodities [IRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions). IRC 988 applies to cash forex unless the trader elects to opt out.

The Advantage of Section 1256 for Currency Traders Under Section 1256, forex traders can have a significant advantage over stock traders. By reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles), forex traders are allowed to split their capital gains on Schedule D using a 60% / 40% split. This means that 60% of the capital gains are taxed at the lower, long-term capital gains rate (currently 15%) and the remaining 40% at the ordinary or short-term capital gains rate, which depends on the tax bracket the trader falls under (as high as 35%). This results in an average rate of 23%, which is 12% less than the regular (short-term) rate.

If cash forex is subject to the Section 988 rules, how can a trader elect the more beneficial Section 1256 split? Please read on to find out more.

To Opt Out or Not to Opt Out of Section 988 !!

Companies that profit from the fluctuation in foreign exchange rates as part of their normal course of business, fall under Section 988. This means their gains and losses from foreign exchange (such as buying and selling of foreign goods) are treated as interest income or expense and get taxed accordingly. Consequently, they do not receive the beneficial 60/40 split.

Since forex traders are also exposed to daily exchange rate fluctuations, their trading activity falls under the provisions of Section 988 too - but don't worry. The IRS wants to be nice to you (so far). Because these daily fluctuations can be considered part of a currency trader's assets in the normal course of his business, the IRS gives the trader the option of rejecting (opting out) of Section 988 and electing that the gains be taxed under the favorable 60/40 split of Section 1256.

What do you have to do to opt out of Section 988? Even though you don't have to file anything with the IRS to opt out, you are required to do so "internally" before starting to trade; i.e., you must keep records in your own books about the fact that you are opting out of Section 988.

Many currency traders bend the rules by waiting after the year is over to see if they have any gains from their trading activities. If they do, they claim that they elected out of IRC 988 to enjoy the beneficial Section 1256 treatment. On the other hand, if the sum of the trades from cash forex is not positive, they stick with the traditional Section 988. Since (under the current tax law) it becomes very difficult to disprove whether the trader made the election at the beginning or at the end of the year, IRS has not yet begun to crack down on this activity.

What does a Forex Trader do When Tax Time Comes?

Forex traders should receive 1099 forms from their US-based broker at the end of the year like stock and futures traders do. No matter in what country your forex broker is based or what tax-related reports they provide, you could pull up reports online from your accounts and seek the help of a tax professional. No matter what you decide to do, don't fall into the temptation of lumping your trades with your section 1256 activity (if any). Forex transactions need to be separated into Section 988 reporting.

Given the fact that the forex market is one of the fastest-growing financial markets around, it might eventually come under closer IRS regulation. In the meantime, traders continue to enjoy tax advantages by trading foreign currencies.



...To find out More how You can Become a Profitable Trader on a Consistent Basis, Please Visit Here: http://www.urlpire.com/?MALFY - You Will Learn Valuable Ways and Tips to help You Make Money Trading the Forex Market !!

I'm looking for some books - ones that won't cost me an arm and a leg but that are current - that give an explanation of what the foreign exchange market is and how it works. Later I'd also like to find some about how to do well in this market. Please give me some recommendations. Thanks.

Answer
Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market by Greg Michalowski

Forex Patterns and Probabilities: Trading Strategies for Trending and Range-bound Markets by Ed Ponsi

The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDonell

ALL available from Amazon....

but if you want to save some cash then here's a good site ...http://www.goforex.net/forex-basics.htm

What is the secret to successful forex trading?

A complete newbie to forex trading, I am having difficulties figuring out where to look for information, but also what exactly to look for. Commodities? Bank quarterly results?

Answer
Well you could take courses on US and World economics, read some financial economies books and/or know when and the fundamental news that affects price swings are reported. Stay clear during these volatile times because they can take out your stop in a heartbeat and a few beats later go back the other way. And remember that the news could already be mostly priced into the current price.

http://www.forex.com/learn.html
Link will answer many questions and answers you should know. I have 3 accounts (never put all your money/eggs in one account/basket). You can start with $500 when you can afford to open account. Since you are just starting you will lose money if you don't learn the basics, first. #1 best tip, don't trade your real money until you try trading demo account. When you can trade a demo for about 2-3months daily and make money then if you feel ready slowly start trading real money. So making and/or losing money depends on how well you can trade. For some it very profitable, for many it is not. So trading with the right tools and knowledge can become a very good income(s) for short and long term goals. And trade with the current trend.

I use Lightning Strikes Trading System for trading in any time frame and it works on forex, stocks, bonds, etf's, mutual funds, etc... They have 3 free training sessions a week and you don't have to buy the software to join in the live chat and text. They focus their training/trading on the Forex markets major currencies. You can even watch some recorded past live sessions. Here are some past charts that I used.
http://f1.grp.yahoofs.com/v1/MB16R0zjjaZ...
http://f1.grp.yahoofs.com/v1/MB16RxjOUQt...
There are 7 indicators (2 short, 2 medium, and 3 long term) and if volume is reported another one is added (on balance volume). Plus whatever time-frame is used the 2 green horizontal lines are the support and resistance for that time frame. So when indicators are all touching the bottom price is at or very, very near support. At top is at or very, very near resistance. Which helps my entry/exits and risk/reward ratio.
http://f1.grp.yahoofs.com/v1/MB16R9Wv-wt...
http://f1.grp.yahoofs.com/v1/MB16R9wSKdV...
http://f1.grp.yahoofs.com/v1/QCt6R2fYIj6...
http://f1.grp.yahoofs.com/v1/QCt6R3R0VQe...
If you can not view charts above or want to see other charts, I can email them. Or you can view more charts in this yahoo group. http://finance.groups.yahoo.com/group/lightninglive/

Start learning the basics of fundamentals and technical analysis so you will be more informed in your investments. You can find all the basic info you need to learn on websites for free.
This site should give you a good start.
http://finance.yahoo.com/education

Try what you learn on demo sites. They can be a very fun but educational way to learn from mistakes. If you pick 75% right with play money then you might be ready to start slowly investing.
http://simulator.investopedia.com/
http://simulator.zacks.com/
http://www.fxcm.com/open-free-100k.jsp
http://www.alpari-idc.com/en/metatrader4...
Or just google for more.

Here are my favorite sites.

http://finance.groups.yahoo.com/group/lightninglive/
Join group to see and discuss LS charts.

http://stockcharts.com/
Has basically all you need from fundamental to technical terms. Plus stock screens, charts, public chart lists, and much more useful info.

https://www.fidelity.com/
Has good learning resources.

http://moneycentral.msn.com/home.asp
In addition to yahoo finance.

http://www.reuters.com/
For news and more.

http://www.marketwatch.com/default.aspx
For news and more.

http://www.valueprime.com/index.php
For rating stock risk/reward ratio and reports.

http://www.barchart.com/
For investing in more than stocks.

http://www.investopedia.com/
For more great learning tools.

http://www.lightninglive.com/
For best software timing your entry/exits any time frame for day traders and long term investors.

Others worth exploring.
http://www.equis.com/
http://www.stockta.com/
http://www.secform4.com/

Best Wishes,
Burt Whitley

Hello Everyone
I really appreciate you taking the time to read this and maybe help me out.
I read previous comments about forex trading but they were posted 7yrs ago..I am a complete newbie and don't even have an account set up with a broker nor would I even know who to use for that matter, I live in toronto and I'm sure we must have some good honest fair brokerage houses or online brokers as well. I have looked at a system called Cycle Trends FX software its based out of South Africa I think but I haven't bought it because I don't need to be scammed. I don't want to have to invest 10,000.00 to start trading and as bad as this is going to sound I need someone to hold my hand and walk me thur the entire process..I would really appreciate some help with this because I work full time and don't have the time to sit in front of a computer all day and I'm sure for a fee you can pay someone to let you know what to trade on or maye there's a software system to do that for you that I haven't come across, I'm really not sure if Brokers work that hard for there clients just because of the things I've read on the internet but there has to be a way for a person who works 12hrs days to be able to get into trading somewhat hands off...
Thank you for your time this is a great way to get honest answers...
PS if your an affiliate for a Forex product please don't reply....

Answer
There aren't any.

FOREX trading is a scam. Well, for 99.47% of people it is a scam. Seventy-five percent of all investors lose nearly their entire stake in just a few months. The problem is that the company sets the exchange rate, not the open market. Also, if you buy on margin (required for almost everyone) the company can force sale of your shares for a margin call when a currency falls a tiny amount, thereby not letting you survive normal fluctuations. Stay away. You'll have better luck at the roulette wheel, which isn't saying much.

http://www.latimes.com/business/la-fi-amateur-currency-trading-20110403,0,588787.story

What is the best forex training course I can buy? What is the best book on forex trading?

I am a beginner who wish to learn before forex trading. Thank You.

Answer
I don't know about buying a forex training course when theres so many resources on forex online. Here are some of the sites that i use to teach me more about forex/sharetrading. The websites below have very helpful resources regarding currency trading & theyre all free! I've personally found them very useful in learning about forex trading and its sharetrading counterpart.

What GBP currency pair has the highest volatility and/or is most sensitive to either interest rate movement or other major economic indicator annoucement?

Please also explain why and source your reference if possible.

Answer
That would be the GBP/JPY, especially when they go in opposite directions against the USD.

The GBP is considered the racehorce of all the currency pairs. Add to that the volatility of the Yen, and you've got a mover that will tear you up in a hurry if you get it wrong.

Be aware that you are probably already trading at 100:1 leverage, so going looking for the most volatility is unnecessary.

Also be aware that the banks control the forex trading arena, not some regulatory agency. They supply the data, do the trading, and also set the rules. They have informed us, for example that they will not allow us to profit from trading a report by betting on both sides with stop orders. They now clear the stops on both sides at the moment of the release of news or report before taking price in any one direction.

You can always ride the trade out if you have a position on prior to the announcement, but to trade the report you have to wait at least a minute or two after the release of the news before placing a trade after the news release. Trying to place a trade at the moment of the news release would be asking for a huge whipsaw, designed to whipsaw the stops.

Currency Trading â FOREX â Foreign Currency Exchange

1.EUR/USD - Euro/U.S. Dollar
2.GBP/USD - Great British Pound/U.S. Dollar
3.USD/CHF â- U.S. Dollar/Swiss Franc
4.USD/JPY â- U.S. Dollar/Japanese Yen
5.USD/CAD â- U.S. Dollar/Canadian Dollar
6.AUD/USD - Australian Dollar/U.S. Dollar
7.EUR/GBP - Euro/Great British Pound
8.EUR/JPY - Euro/Japanese Yen
9.EUR/CHF - Euro/Swiss Franc
10.GBP/CHF - Great British Pound/Swiss Franc
11.GBP/JPY - Great British Pound/Japanese Yen
12.CHF/JPY - Swiss Franc/Japanese Yen
13.NZD/USD - New Zealand Dollar/US Dollar
14.EUR/CAD - Euro/Canadian Dollar
15.AUD/CAD - Australian Dollar/Canadian Dollar
16.AUD/JPY - Australian Dollar/Japanese Yen
17.EUR/AUD - Euro/Australian Dollar
NOTE: Of the above 17 currency pairs, six of them are deemed the âmajor currency pairsâ in the FOREX market because they account for about 80 percent of FOREX transactions:
1.EUR/USD - Euro/U.S. Dollar
2.GBP/USD - Great British Pound/U.S. Dollar
3.USD/CHF â- U.S. Dollar/Swiss Franc
4.USD/JPY â- U.S. Dollar/Japanese Yen
5.USD/CAD â- U.S. Dollar/Canadian Dollar
6.AUD/USD - Australian Dollar/U.S. Dollar

As you can see, there is a currency on the left and one on the right. The one on the left is referred to as the base, and the one listed on the right is known as the cross. The format, once again, is as follows. BASE/CROSS, or EUR/USD. The EUR is the BASE and the USD is the CROSS.

TERMINOLOGY:
â¢PIPS- Price Interest Point. This is the smallest unit price for any Foreign Currency.
â¢LOT- A lot of currency is one denomination for a trade (100K or mini account). This is similar to purchasing one stock or one contract in the futures market.
â¢LONG to buy
â¢SHORT to sell
â¢BID-The price at which you sell
â¢ASK-The price at which you buy

Price Interest Point - (PIP)
Profits are made in the FOREX by gaining PIPS. A pip is the last digit from the decimal point. This value is 1/100th of a cent. You may now be asking yourself, how do I make money off of 1/100th of a cent? The answer is leverage. The FOREX market is highly leveraged and should be respected. That said, it can also provide for a tremendous return on your investment. The average leverage in the FOREX is 100 to 1. Basically this indicates that for every dollar you invest in a trade you are controlling $100 of value.

Calculated PIP
Calculated PIP â shows the Price Interest Point (PIP) value for the selected currency pair based upon your trading account margin. For example, a standard 1 percent margin trading account controlling $100,000 in currency would show the EUR/USD with a PIP value of 10.

PIP VALUE-Fixed or Floating
FIXED- When the USD is the cross currency (right side of the pair), the PIP value is fixed at $10 in a 100k account.

FOATING- When the USD is the base currency (left side of the pair), the PIP value is based upon the exchange rate of the cross currency (i.e., USD/CAD.). Also, the PIP value is floating when the pair consists of foreign currencies (i.e., EUR/ GBP).

LOT
A lot is the normal unit of trading in the FOREX market. Trades are made in lot increments, similar to share increments in the stock market.

What is the meaning of the 4 majors (EU,GU,UC,UJ) and 3 minors ( UCAD,AU,NU) currencies in the FX market?

I was reading about the FX market, and I can't figure out what they mean when they say there are 4 major (EU,GU,UC,UJ) and 3 minor ( UCAD,AU,NU) currencies. What do the symbols mean?

Answer
FOREX â Foreign Currency Exchange

1.EUR/USD - Euro/U.S. Dollar
2.GBP/USD - Great British Pound/U.S. Dollar
3.USD/CHF â- U.S. Dollar/Swiss Franc
4.USD/JPY â- U.S. Dollar/Japanese Yen
5.USD/CAD â- U.S. Dollar/Canadian Dollar
6.AUD/USD - Australian Dollar/U.S. Dollar
7.EUR/GBP - Euro/Great British Pound
8.EUR/JPY - Euro/Japanese Yen
9.EUR/CHF - Euro/Swiss Franc
10.GBP/CHF - Great British Pound/Swiss Franc
11.GBP/JPY - Great British Pound/Japanese Yen
12.CHF/JPY - Swiss Franc/Japanese Yen
13.NZD/USD - New Zealand Dollar/US Dollar
14.EUR/CAD - Euro/Canadian Dollar
15.AUD/CAD - Australian Dollar/Canadian Dollar
16.AUD/JPY - Australian Dollar/Japanese Yen
17.EUR/AUD - Euro/Australian Dollar

NOTE: Of the above 17 currency pairs, six of them are deemed the âmajor currency pairsâ in the FOREX market because they account for about 80 percent of FOREX transactions:

1.EUR/USD - Euro/U.S. Dollar
2.GBP/USD - Great British Pound/U.S. Dollar
3.USD/CHF â- U.S. Dollar/Swiss Franc
4.USD/JPY â- U.S. Dollar/Japanese Yen
5.USD/CAD â- U.S. Dollar/Canadian Dollar
6.AUD/USD - Australian Dollar/U.S. Dollar

As you can see, there is a currency on the left and one on the right. The one on the left is referred to as the base, and the one listed on the right is known as the cross. The format, once again, is as follows. BASE/CROSS, or EUR/USD. The EUR is the BASE and the USD is the CROSS.

TERMINOLOGY:
â¢PIPS- Price Interest Point. This is the smallest unit price for any Foreign Currency.
â¢LOT- A lot of currency is one denomination for a trade (100K or mini account). This is similar to purchasing one stock or one contract in the futures market.
â¢LONG to buy
â¢SHORT to sell
â¢BID-The price at which you sell
â¢ASK-The price at which you buy

Price Interest Point - (PIP)
Profits are made in the FOREX by gaining PIPS. A pip is the last digit from the decimal point. This value is 1/100th of a cent. You may now be asking yourself, how do I make money off of 1/100th of a cent? The answer is leverage. The FOREX market is highly leveraged and should be respected. That said, it can also provide for a tremendous return on your investment. The average leverage in the FOREX is 100 to 1. Basically this indicates that for every dollar you invest in a trade you are controlling $100 of value.

Calculated PIP
Calculated PIP â shows the Price Interest Point (PIP) value for the selected currency pair based upon your trading account margin. For example, a standard 1 percent margin trading account controlling $100,000 in currency would show the EUR/USD with a PIP value of 10.

PIP VALUE-Fixed or Floating
FIXED- When the USD is the cross currency (right side of the pair), the PIP value is fixed at $10 in a 100k account.

FOATING- When the USD is the base currency (left side of the pair), the PIP value is based upon the exchange rate of the cross currency (i.e., USD/CAD.). Also, the PIP value is floating when the pair consists of foreign currencies (i.e., EUR/ GBP).

LOT
A lot is the normal unit of trading in the FOREX market. Trades are made in lot increments, similar to share increments in the stock market.

Standard (or 100k) FOREX account- has a 100:1 leverage ratio
1 LOT= $1,000 investment= ratio leveraged 100 to 1, which = $100,000 in buying power.

Mini FOREX account- has a 200:1 leverage ratio
1 LOT= $50 investment= ratio leveraged 200 to 1, which = $10,000 in buying power.

TRADING HOURS (EST)
â¢Trades 24 hours a day, 6 days a week. The market is open from Sunday at 5pm EST to Friday at 4pm EST.

http://www.babypips.com/
http://www.dailyfx.com
http://www.fxstreet.com/rates-charts/usdollar-index/
http://www.forexpeacearmy.com/

The best way to learn is from a book. You can find three different eBooks here:

http://members.cox.net/axiom11/#Info
Insider Forex Secrets

http://members.cox.net/axiom11/page2_links.htm
Forex Trading-Revolution To Home Based Internet Business
Forex Trading Strategies

There are many eBooks listed here, so to find the one you want, just hit Ctrl-F (for Find) in your web browser to find "forex".

I mean a lot of experts always mention about them, so surely they aren't bullshit.

But how actually that can happen ?

When the markets buy or sell at certain price in a great size, then if later on the price comeback there if it can pass those support/resistance then it can break and move farther while if it can't break it, it will retrace back....

So what is the reason behind this ?

Answer
support/resistance applies to stocks as well as Forex or other commodities.

It is quite established and quite reliable ...the way to think of these levels is to think about the battle between buyer/seller and supply/demand

Let us say I am selling tomatoes in a market. I decide that a good price for me is $1/lb and I sell a lot of them...buyers like the price and they sell....I am running out of tomatoes so I decide to sell the tomatoes at a higher price...say $1.50...I don't sell the same number but heck I am making 50% more per pound....so I raise the price again as there are far fewer tomatoes and I don't get a new shipment for a couple of days...I raise my price to $2.00/lb....Buyers think this price is too much...they don't buy them anymore $2.00/lb is a resistance level....

I have fewer and fewer buyers so ok...I made a mistake and lower my prices back to $1.50 and I get a few more buyers...but then my next shipment arrives and I have tons of tomatoes...If I don't sell them they will spoil...So I reduce my price back to $1/lb...the buyers increase but still not enough of them to take all my tomatoes....so I reduce my price to $0.75/lb...but the buyers want them for $0.50/lb...this is below my cost....I would lose money selling them that low....I dig in my heels and demand $0.75....that $0.75 becomes a support price.

As my supply of tomatoes reduces and the demand increases for them...I can raise my prices again to $2.00 where the Buyers say they are too expensive and stop buying....this rise and fall of price goes on for some weeks....I refuse to sell less than $0.75 and the buyers refuse to pay more than $2.00

But winter comes...my resupply of tomatoes is not as great as before...I raise my prices to $2.00/lb...the buyers baulk at that price but the supply of tomatoes everywhere is very low....I stick to my price at $2.00/lb...Perhaps I am the only source of tomatoes for miles around....Suddenly I realize that the buyer WILL pay more for those tomatoes...I raise my prices to $2.25 People buy because they need those tomatoes...I have broken that resistance at $2.00.....NOW I say that will be my bottom price for the next while until the spring when tomatoes are plentiful again.....that resistance of $2.00 has now changed into a support level....

I don't know where the resistance level of the buyer is now so I gradually increase my price until I find where the Buyers say no....that becomes the next resistance level.

The same thing happens to stock price, forex and commodities....when you study charts you will see support/resistance levels establish themselves...Often for no apparent reason these levels last many months...when the price breaks these levels up or down the movement can be pretty strong...especially if the price rises to a resistance or falls to a support only to rebound in a reverse direction to try again.

Think of it like a battering ram hitting a door....repeated hits weaken the door and when it breaks people rush through to the next door....the more difficult it is to pass these levels the harder it is to reverse backward once passed.

I hope these analogies help sometimes it makes it easier to think of stock/forex/commodity prices as a battle between buyer/seller.

What would be a good stock trading strategy for using a Trailing Stop ?

Want to trade stocks short-term (online) and need advice from successful traders. Thanks for your time and advice!

Answer
Obviously you need to figure out where to place the stop initially before it starts trailing. There are a couple choices -
1. Select a price some stop loss % (2, 3, 4, 5% - whatever you're comfortable with) or
2. Base your initial stop on a support level.

Method 2 is what is normally used in Forex trading. In stocks I use mental stops as opposed to actually placing the order but I'm reviewing my charts a couple times a day so I know where my stop-loss is at and I have access to a computer all day. The concept is that if a stock starts to drop it will tend to halt its decline at a support level, at least temporarily. If support holds, price will bounce off of it and start rising again. If support breaks down, price will likely continue to fall. Price will probe the support and go below it temporarily then rise back to or above it while it is testing support so you want to have your initial stop at some tolerance below the support level.

Here's an example of how to set the initial stop -
Refer to the following chart:
http://stockcharts.com/h-sc/ui?s=NTO&p=D&yr=0&mn=10&dy=0&id=p52292255501&a=74443331&listNum=25

Once you decide on a stock, determine the support/resistance levels as shown by the horizontal red/green lines. Near todays action there is support/resistance at these prices:
3.92, 4.00 (natural), 4.19, 4.40, 4.61

Let's say you wanted to buy at 4.15 on Wednesday. There is natural support (even dollar amount) at 4.00 and 3.92.
1. Determine what your loss tolerance is - let's say 5%
2. Determine how much tolerance below the support level you want to be ~ 2%
3. Determine where 2% is below support - 4.00 minus (4.00 * 2%) = 3.92
4. 3.92 would be your stop.
5. Determine how much of a loss you would take if stopped out - about 5.5 %
6. Determine if 5.5% is within your loss limit. If so, you would place the stop at 3.92 and if not, you have to decide whether to move the stop closer to support (increases the risk of getting stopped out) or not make the trade.

Once prices starts moving up, you have the choice of changing the stop to a trailing stop or to calculate a new support minus 2% stop price and manually change the stop.

All this may sound like more work than you want to do but after you do it 5-6 times, you will start to recognize the stop prices in a glance.

Hi,

I'm 13 and would like to be a hedge fund manager when I grow up. I am doing a reasearch paper on it for school and I was wondering what a typical day was like, or a typical week.

Thanks!

Answer
Get up at 4 am to check the European markets open and Asian markets close; read the Wall Street Journal; study your positions. Get to the office early (between 6 - 7:30) to run numbers, check commentary on Asian markets close, monitor European markets, and early trading data. Much of the time is spent on running models, verifying data, watching markets, doing research on various countries and their markets, stocks, forex, private placements, industry data, political events affecting the markets, assessing various types of risks, including sovereign risk. Meet with your contacts & sources in various industries. Supervise staff (if you make it into management). Develop new strategies for investing. Monitor your fund's participants - their investments and withdrawals. Write reports; meet with writers who do your prospectus, reports, collateral materials, communications with investors in your fund.

These are a few of the things you'll be involved in. After the markets close and you assess the day's trading and events, you can have dinner with your spouse, put the kid to bed, and get back on the 'puter to check the Asian markets openings and events.

Is there any intelligence to trading FOREX or is it merely subject to interbank flows and basic supp/demand?

How can one trade forex in a manner that least resembles gambling-- over what period of time can one see some logic to a forex trade?

Who are the main players that govern the price levels of currency and what effects do individual traders have?

how do hedge funds trade currencies?

Does technical analysis really work? The idea of of using tech analysis seems so silly--what is the theory behind it?

Any additional information you may have, I'd really appreciate.

Answer
The currency pairs move in the direction of the trend, you anayze trends and it will help greatly, expecially the larger trends, short term moves within the trend are based on news items and parallel and inverse analysis.

Here are some technical papers to read:

http://www.articlealley.com/article_152420_19.html

http://users.search-o-rama.com/Article272207.htm


You can also monitor support and resistance with price alarms.

http://www.easyarticles.com/article-62743.htm

Good luck with your forex joyrney.

Mark Mc Donnell
http://www.forexearlywarning.com/index.cfm

I've never been a stock buyer before. So i just want to give it a try
and buy any stock. How do you buy a stock on Toronto Exchange for
example? Can you do that on the internet?

Answer
I'm assuming since you are asking about the TSX, you are from Canada. I am from Vancouver and use questrade but there are plenty of discount brokers available with low minimum deposits and no inactivity fees. As well, I can buy Canadian and US equities as well as options and forex.

Your statement - never been a stock buyer before want to give it a try worries me. Please remember that this is real money on the line and before you even consider buying stocks, please do some reading on the basics.

I can't stress enough to people that the equity markets, particularly in this environment, are still extremely dangerous. The best traders cannot come to a consensus on whether this is a true bull market or bear market rally. We are in uncharted waters here. Personally I am being extremely particular with stock valuations and am pulling the trigger quickly on gains due to the uncertainty in the marketplace.

The TSX is so heavily weighted in materials and energy that it makes things extremely volatile. Canada has lot of exposure to the fluxuations in the US dollar (commodities are priced in US $ so a drop in US $ means a rise in commodity prices as a general rule and vice-versa). Commodities are extremely volatile so please use extreme caution when trading TSX (even if it is the IShares index) due to this weighting. If you have any doubt about this please check the charts on Natural Gas, Oil, Copper, etc...

The majority of my trading is done on the TSX and due to currency risk I tend to use ETF's to play foreign markets. So if you have any specific questoins, I would be happy to try and answer them for you. Just know I'm not a professional,but I do have some experience that I'd be happy to share.

What are the best bargain investments right now?

I like the DIA (ETF for the Dow Jones),
I like UNG (ETF for Natural Gas),
I like real estate in Detroit because prices are very low and foreclosures abound.
Regarding Education I like degrees in medical billing because they take only 1 year to get and they are in demand.
I like to invest in small businesses like gas stores and one dollar stores because everybody uses them.
I don't like single stocks because of lack of diversification.
I don't like forex market because I am not a trader.
I don't like options because they are too risky and complex.
I don't like silver and gold because the price is too high.
Do you know better investments?

Answer
Probably real estate. It's a bargain to buy cheaper houses comparing to the highs couples years ago. Real estate market will eventually go back up. The value is there and population grow each year. If you have the money and need a house, then it's good time buy it now.

I need to create a script for data organization and visualization purposes associated with the financial markets (stocks, bonds, forex, etc). In the future I hope to do some P2P social media user-interface design and iPhone app ideas. I have very little or no programming experiences (html basics, programming TI-86 calculators, and simple flash 5 scripts), but taught myself finance with little trouble, so I am not afraid of complexity and learning curve. I just don't know where to start.

Below I have listed the specifics of the script desired (what functions I need it to have, etc). I need to know at the least which programming language to use and maybe a good site to find tutorials for creating the kinds of scripts that are relevant to my purposes. At the most, I would greatly appreciate some samples of code that can help me accomplish or learn how to do the following task .

I want to count and then visualize the number of times that the price moves over two exponential moving averages of 144 and 169 periods. I would like to have the option of being able to insert a filter: to only count the occurrences that stay above or below the exponential moving averages for X number of periods. I would also like to be able to easily visualize the data to show the occurrences that the price stayed over the exponential moving averages for X number of periods, Y number of periods, Z number of periods...(infinity)

thanks!
This program will not need to constantly recalculate. I'm basically just running an empircal test to determine the consistency of synchornious events inside of historical price information: If A price value is greater than moving average values (B) and (C) , will the price continue to rise, and if so, for how long?

I could imagine myself just downloading this information into excell and creating a VB script. What are the advantages of using PHP/mySQL in these types of environments? It seems that PHP/mySQL is web-based, which would help I'm guessing would help if the data set is very large and/or if the process must be on-going for a long period of time (e.x.: SETI) am I right?
I trade with MT4.

Answer
You need to think about:
- Where the calculations and visualizations will happen (server or client side)
- What data you have to store (server side)
- Security and financial concerns

The actual code for this will be a mathematical algorithm. It will basically look and work the same no matter which language you use. Even for creating the visual graph the code will be pretty much the same as the basic Graphics libraries are all similar (.Net GDI+, PHP GD, etc.). The difficult part will be writing the correct algorithm (Math!) to handle this accurately, after that the code will be very portable.

If you need to continually save the data in a database, you will need a server running a database. Web applications like this are usually done in either .Net and MS SQL Server or PHP and MySQL. Other than price (PHP/MySQL hosting is cheaper) there should be no practical advantage to either, just what you're most comfortable coding in. Both have tonnes of resources online for learning how to code. (Try pscode.com and Google)

A bigger issue is security. If this data is being saved to a Database you want to make sure it is not vulnerable to SQL-injection or other types of attacks. A compromised database will make this whole thing fall a part.

---
EDIT
MySQL is a database, it is for saving data on a server. PHP is a server-side scripting language, it is for handling data on a server and displaying it to the client.

If what you want to do does not need to save data, then this can be handled without your own database. (I had pictured a graph over time, which would need to save previous data.) This would require on-demand third-party Services where the data will come from when the client clicks "Show me Andrew's Financial Thing".

You would still likely want to handle this server-side (PHP), as you will have more security and control over what is displayed. (As opposed to client-side scripting such as Javascript.) The PHP page can display your visualization on regular page, as part of a Facebook app, or for a mobile browser page.

Doing this for an iPhone App will require either a reimplementation in Objective-C of the algorithm and graphics code (it connects to third party services), making an iPhone app that connects to the PHP page and displays that data directly (as if it where a web browser), or a combination of the two (it checks with the php page to get the information but creates its own visualizations.)

For example, (sorry to plug) we recently made an iPhone app that graphs financial information inputted by the client.
http://itunes.apple.com/us/app/assetgraphit/id376400107?mt=8
http://www.makeitsostudios.com/app_assetgraphit.html

I have been reading about trading forex but I am unsure about the strategy I should be using. I have read about so many different strategies and they all claim to be the best and easiest. I was just wondering if anybody had any real experience trading forex that could recommend a good strategy to start out with.

Answer
If you are a beginner, i suggest you to use Marketiva, which is a very good platform to start trading with and very easy to use.

Marketiva gives you 5$ real to start trading so you don't have to deposit and if you made profit from it you can cash out, this is why it's very good for beginners. Their platform is very easy to use and they have support during trading hours for your questions, doubts etc.

They also have chat channels where you can talk, exchange opinions and ideas with traders of your country or international traders.

To open your account please visit http://www.marketiva.com/index.ncre?gid=3371

What is the cheapest forex broker out there?

I would like to know about forex brokers that offer low balance accounts. Do you have any recommendations? What about forex research? What are all the important events or meetings that affect the forex market?

Answer
trading is like a university education, it requires on the order of 10 to 20 years to become proficient and you have to be ready to accept it as a full time career. With that said, the broker that I use is oanda. I use this broker mainly because it allows smaller lot sizes which allows me to be very flexible with my exposure.

My recommendation- do not trade with less than 50k account. Do not trade live until you have risk capital (money that you will not need or regret losing) or minimum few years on paper accounts.

Forex research is a huge topic. Do not fall for technical analysis, it works in some situations, but the best bet would be to read the prices correctly via price patterns and timing. Do not trade during non farm payrolls or during tokyo and NY lunch hour. Trade during the overlap of US UK sessions for best liquidity. Watch for inflation levels, what central bankers say (and if what they are saying is just a warning or if they are serious about it).

For example you would want to monitor the japanese central bank decisions right now because their currency is strong enough to make their bank sell it to lower the price to keep exports competitive.

For CAD, watch for gold prices (oil is their major export). ect.

FINALLY: the only way to make money in forex safely is with law of large numbers in terms of capitalization. You have to have an account upwards of 50 mil, so this is not a get rich quick thing. The real money lies in market making and dealing.

A complete newbie to forex trading, I am having difficulties figuring out where to look for information, but also what exactly to look for. Commodities? Bank quarterly results?

Answer
Well you could take courses on US and World economics, read some financial economies books and/or know when and the fundamental news that affects price swings are reported. Stay clear during these volatile times because they can take out your stop in a heartbeat and a few beats later go back the other way. And remember that the news could already be mostly priced into the current price.

http://www.forex.com/learn.html
Link will answer many questions and answers you should know. I have 3 accounts (never put all your money/eggs in one account/basket). You can start with $500 when you can afford to open account. Since you are just starting you will lose money if you don't learn the basics, first. #1 best tip, don't trade your real money until you try trading demo account. When you can trade a demo for about 2-3months daily and make money then if you feel ready slowly start trading real money. So making and/or losing money depends on how well you can trade. For some it very profitable, for many it is not. So trading with the right tools and knowledge can become a very good income(s) for short and long term goals. And trade with the current trend.

I use Lightning Strikes Trading System for trading in any time frame and it works on forex, stocks, bonds, etf's, mutual funds, etc... They have 3 free training sessions a week and you don't have to buy the software to join in the live chat and text. They focus their training/trading on the Forex markets major currencies. You can even watch some recorded past live sessions. Here are some past charts that I used.
http://f1.grp.yahoofs.com/v1/MB16R0zjjaZ...
http://f1.grp.yahoofs.com/v1/MB16RxjOUQt...
There are 7 indicators (2 short, 2 medium, and 3 long term) and if volume is reported another one is added (on balance volume). Plus whatever time-frame is used the 2 green horizontal lines are the support and resistance for that time frame. So when indicators are all touching the bottom price is at or very, very near support. At top is at or very, very near resistance. Which helps my entry/exits and risk/reward ratio.
http://f1.grp.yahoofs.com/v1/MB16R9Wv-wt...
http://f1.grp.yahoofs.com/v1/MB16R9wSKdV...
http://f1.grp.yahoofs.com/v1/QCt6R2fYIj6...
http://f1.grp.yahoofs.com/v1/QCt6R3R0VQe...
If you can not view charts above or want to see other charts, I can email them. Or you can view more charts in this yahoo group. http://finance.groups.yahoo.com/group/lightninglive/

Start learning the basics of fundamentals and technical analysis so you will be more informed in your investments. You can find all the basic info you need to learn on websites for free.
This site should give you a good start.
http://finance.yahoo.com/education

Try what you learn on demo sites. They can be a very fun but educational way to learn from mistakes. If you pick 75% right with play money then you might be ready to start slowly investing.
http://simulator.investopedia.com/
http://simulator.zacks.com/
http://www.fxcm.com/open-free-100k.jsp
http://www.alpari-idc.com/en/metatrader4...
Or just google for more.

Here are my favorite sites.

http://finance.groups.yahoo.com/group/lightninglive/
Join group to see and discuss LS charts.

http://stockcharts.com/
Has basically all you need from fundamental to technical terms. Plus stock screens, charts, public chart lists, and much more useful info.

https://www.fidelity.com/
Has good learning resources.

http://moneycentral.msn.com/home.asp
In addition to yahoo finance.

http://www.reuters.com/
For news and more.

http://www.marketwatch.com/default.aspx
For news and more.

http://www.valueprime.com/index.php
For rating stock risk/reward ratio and reports.

http://www.barchart.com/
For investing in more than stocks.

http://www.investopedia.com/
For more great learning tools.

http://www.lightninglive.com/
For best software timing your entry/exits any time frame for day traders and long term investors.

Others worth exploring.
http://www.equis.com/
http://www.stockta.com/
http://www.secform4.com/

Best Wishes,
Burt Whitley

What is the best way to learn fundamental forex trading?

Is forex trading worthwhile as a second income generator?

Answer
Well you could take courses on US and World economics, read some financial economies books and/or know when and the fundamental news that affects price swings are reported. Stay clear during these volatile times because they can take out your stop in a heartbeat and a few beats later go back the other way. And remember that the news could already be mostly priced into the current price.

http://www.forex.com/learn.html
Link will answer many questions and answers you should know. I have 3 accounts (never put all your money/eggs in one account/basket). You can start with $500 when you can afford to open account. Since you are just starting you will lose money if you don't learn the basics, first. #1 best tip, don't trade your real money until you try trading demo account. When you can trade a demo for about 2-3months daily and make money then if you feel ready slowly start trading real money. So making and/or losing money depends on how well you can trade. For some it very profitable, for many it is not. So trading with the right tools and knowledge can become a very good income(s) for short and long term goals. And trade with the current trend.

I use Lightning Strikes Trading System for trading in any time frame and it works on forex, stocks, bonds, etf's, mutual funds, etc... They have 3 free training sessions a week and you don't have to buy the software to join in the live chat and text. They focus their training/trading on the Forex markets major currencies. You can even watch some recorded past live sessions. Here are some past charts that I used.
http://f1.grp.yahoofs.com/v1/MB16R0zjjaZ...
http://f1.grp.yahoofs.com/v1/MB16RxjOUQt...
There are 7 indicators (2 short, 2 medium, and 3 long term) and if volume is reported another one is added (on balance volume). Plus whatever time-frame is used the 2 green horizontal lines are the support and resistance for that time frame. So when indicators are all touching the bottom price is at or very, very near support. At top is at or very, very near resistance. Which helps my entry/exits and risk/reward ratio.
http://f1.grp.yahoofs.com/v1/MB16R9Wv-wt...
http://f1.grp.yahoofs.com/v1/MB16R9wSKdV...
http://f1.grp.yahoofs.com/v1/QCt6R2fYIj6...
http://f1.grp.yahoofs.com/v1/QCt6R3R0VQe...
If you can not view charts above or want to see other charts, I can email them.

Start learning the basics of fundamentals and technical analysis so you will be more informed in your investments. You can find all the basic info you need to learn on websites for free.
This site should give you a good start.
http://finance.yahoo.com/education

Try what you learn on demo sites. They can be a very fun but educational way to learn from mistakes. If you pick 75% right with play money then you might be ready to start slowly investing.
http://simulator.investopedia.com/
http://simulator.zacks.com/
http://www.fxcm.com/open-free-100k.jsp
http://www.alpari-idc.com/en/metatrader4...
Or just google for more.

Here are my favorite sites.

http://stockcharts.com/
Has basically all you need from fundamental to technical terms. Plus stock screens, charts, public chart lists, and much more useful info.

https://www.fidelity.com/
Has good learning resources.

http://moneycentral.msn.com/home.asp
In addition to yahoo finance.

http://www.reuters.com/
For news and more.

http://www.marketwatch.com/default.aspx
For news and more.

http://www.valueprime.com/index.php
For rating stock risk/reward ratio and reports.

http://www.barchart.com/
For investing in more than stocks.

http://www.investopedia.com/
For more great learning tools.

http://www.lightninglive.com/
For best software timing your entry/exits any time frame for day traders and long term investors.

Others worth exploring.
http://www.equis.com/
http://www.stockta.com/
http://www.secform4.com/

Best Wishes,
Burt Whitley

I was thinking 200 but it looks like trade charges would eat that money up in no length so now im thinking more along the lines of 500?. Also I'm thinking of trading with forex thoughts?. Is there any hidden charges I should know about with forex?! Thanks

Answer
Take the $200 and invest it in 6-12 books on trading. If you still want to do Forex than after that read 2-3 books on Forex trading. Why you would pick one of the hardest markets to start in is a mystery to me. Especially a market known for scams and less than honest brokers.

FOREX is nothing but hidden charges.... the spread is the charge (although they all advertise "no commission")....... you'd be better off with a commission than the "spread".

Even if you jump into an easier type of trading (like stocks)..... short term trading kills portfolios. 95% fail at short term trading. Increase your odds..... learn this stuff before you open an account.

Hi Can you refer me to a site with free downloadable ebooks on candlestick pattern analysis in forex. Thanks?

I have an interest in medium term forex trading and to use candlestick patters for the purpose. Can you folks help please. Cecilgamini

Answer
Hi Cecilgamini,

Statistics show that most people end up loosing their money within the first 60 days of investing in the Forex (including myself). I had tried just about every Forex program, signal service, candlestick analysis, and spent countless hours trying to study charts and read graphs and almost gave up altogether trying to invest in the Forex market until I accidently ran across the FreedomRocks strategy. Which has been the only profitable system Iâve ever used. It's a very safe hedging system, the software does 95% of the work, and it takes me about 15-30 minutes per week to manage my account. Itâs simple and easy to understand and by far the best investment choice my wife and I have ever made even better than stocks and real estate. I would be more than happy to share our results with you so feel free to email or call me anytime.

Best Regards,

Brandon Wells
Ph:877-773-5345
www.yourforexinvestor.com

I am learning Forex, can anyone help me with this question? Thanks!

Answer
Hi Jana,

I'd be glad to help you out =)

For every 0.0001 point difference, you get 1 pip (it it is quoted in 4 decimal points). if you are trading JPY, 1 pip = 0.01 since it has a 2 point decimal quotes

that's where they got the 2 pip points. So now you can compute it yourself of you can use a software calculator for that (especially if you'll be trading in bulk).

I can see that you're a newbie. Welcome! I hope you wont be a part of the 85% who fail because they're trading without knowledge (like gambling).

Here's some forums where you can ask questions or read some answers from expert traders (helping newbies like you)

http://forexforums.dailyfx.com/forum/
http://forums.babypips.com/

You can then register for a free account here: http://forexvps24.com/
and trade without any money involve. Don't get into something without much knowledge.

Good luck!

Find the change in cost C for the given marginal. Assume that the number of units x increases by 1 from the?

specified value of x.
click on the link for rest of problem. thanks.
http://oi48.tinypic.com/msluvk.jpg

Answer
This is not a question. Is still a post sent by post?

I saw it is talking about Forex value of 1 pip. It depends on how much you traded. Some brokers in TrustedForexBrokers.com provide pip calculator. You can use it to find out the cost change.

Let say that the Dollar brings 3 real of country A,and the real is actually pegged to Dollar ,so it is considered fixed currency rate ( not floating ) .And now that we have inflation in Country A ,while the dollar is still= 3 real of country A ?

my Question is, how could we detect an inflation in Country A while its' exchange rate is not appreciating or depreciating to dollar?

is that we have to compare it with another strong currency like Euro?

Answer
Under a fixed exchange rate regime the changes in the domestic price level are a reflection of the inflation in other countries. In other words, inflation is 'imported' from abroad.
Example: An increase of the domestic money supply means that domestic residents have excess money balances which will increase the aggregate demand. This will increase the domestic prices. Assuming the Purchasing Power Parity concept, the increase in the price level moves the domestic economy into an uncompetitive position and the balance of payment into a deficit. In order to maintain the foreign exchange rate at the prescribed level, the government has to intervene in the forex market which will reduce the money supply, effectively reversing the monetary expansion and move the domestic price level back to its original state.

The key concept is the Purchasing Power Parity model which postulates one price for the same good in different currencies: the exchange rate E is determined by the domestic price level Pd divided by the foreign price level Pf: E=Pd/Pf. If you hold E constant, as in a fixed exchange rate regime, the domestic price level will only change if the foreign prices change as well.

What is forex and currency trading. Is it a kind of business?

Please let me know in detail abut the forex and currency trading business?

Answer
It's a way to invest your money kind of like the stock market. You are buying and selling, just like the stock market. But rather than buying and selling the actual currency itself, you are buying and selling the DIFFERENCE in value (aka the exchange rate) between two different currencies.

Best way to get into the Forex is to open a demo account at http://comefollowme.zulutrade.com/Performance.aspx and add some strategies to your portfolio. It's all free, and it's the largest Forex strategy website in the world. I'll post some more links below in my sources.

I have seen forex sites that show live updates on forex accounts, can anyone tell me how or direct me to a site that explains how to do this?

Answer
hi
here you can find a list of forex trading sites that show live updates

http://forexplatformslist.com

good luck

What is the cheapest forex broker out there?

I would like to know about forex brokers that offer low balance accounts. Do you have any recommendations? What about forex research? What are all the important events or meetings that affect the forex market?

Answer
trading is like a university education, it requires on the order of 10 to 20 years to become proficient and you have to be ready to accept it as a full time career. With that said, the broker that I use is oanda. I use this broker mainly because it allows smaller lot sizes which allows me to be very flexible with my exposure.

My recommendation- do not trade with less than 50k account. Do not trade live until you have risk capital (money that you will not need or regret losing) or minimum few years on paper accounts.

Forex research is a huge topic. Do not fall for technical analysis, it works in some situations, but the best bet would be to read the prices correctly via price patterns and timing. Do not trade during non farm payrolls or during tokyo and NY lunch hour. Trade during the overlap of US UK sessions for best liquidity. Watch for inflation levels, what central bankers say (and if what they are saying is just a warning or if they are serious about it).

For example you would want to monitor the japanese central bank decisions right now because their currency is strong enough to make their bank sell it to lower the price to keep exports competitive.

For CAD, watch for gold prices (oil is their major export). ect.

FINALLY: the only way to make money in forex safely is with law of large numbers in terms of capitalization. You have to have an account upwards of 50 mil, so this is not a get rich quick thing. The real money lies in market making and dealing.

My wife and I don't make a tone of money but were getting there! We have children and need to be conservative. What would be the best investment we could get into that will yield us something worth the time. We looked at Forex.com but that spun us around and the stock market makes some sense to us but we wouldn't know were to go. Would some sort of bond be what we need? Any help would be greatly appreciated!

Answer
You should invest in a diversified mix of stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks as individual stocks are too risky. Most folks have a dificult time buying a properly balanced portfoilio of stocks on their own. They will misbalance their portfolio by buying all small stocks or all growth stocks, or some other misbalanced assortment of stocks. Unless you know what you are doing, it is best to buy mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea of how to do "Asset Allocation," determining how much to put in each type of fund.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion.

Buying a house instead of renting will save you a lot of money in the long run. You don't have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you don't know how to handle deadbeat renters, you can have trouble.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planningeducation
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
http://www.diehards.org/readsites.htm
http://finance.yahoo.com/education/begin_investing
http://finance.yahoo.com/funds/basics

Asset Allocation Calculators
(Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These Asset Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well.)
https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education
https://ais2.tiaa-cref.org/cgi-bin/WebObjects.exe/DTAssetAlcEval
http://www.ifa.com/SurveyNET/index.aspx

Web forum: http://www.diehards.org/
(Many investment web forums are overrun by scam artists. This one seems the most legitimate site.)


529 plans: http://www.savingforcollege.com

Which one the best and profitable website of forex signal services ?

Mostly trader around the world subscribe ?
Profitable 80%~90% ?
Recommended by expert trader ?
Services trustee ?

Answer
Learn the basics: http://www.babypips.com. Also http://www.etoroforexgames.com has a great platform to start with. Their platform makes it easy to understand what is going and it is unlike any other platform in the world. They also automatically put in stop loss orders for you, offers its services for free, and there are no commissions.