Currency Trading or Dogs-of-the-Dow.

Currency Trading or Dogs-of-the-Dow.

Have you ever heard of the Dogs-of-the-Dow system. It?s a well known system in the stock and trading business. There are several stock brokers who have earned a lot of money by working with this system. They are using at for several years now. They think it?s a safe way to let your money grow slowly but consistently.

If you know the Dogs-of-the-Dow system you know that the system makes yearly a better percentage then the index.

If you have started using the system several years ago and used it properly for those years you would have earned a nice percentage each year. Double figures are more then ones made. A high yield income of 17.7 %PRCTG% average annual return since 1973 has been made.
The Dow Jones Industrial Average overall return was 11.9 %PRCTG% during that same periode.
So you would have made almost 6 %PRCTG% more each year. Not bad at all.

If you never heard about it let me explain how that system works.
At some point in the year, mostly early January, you take a look at all the companies that gives you the highest dividend payment.

You make a basket (several companies added together) then you decide how much percentage you will spent on each company. Next you buy stocks of each company to a curtain amount of money you have available and wait until the year passes.
When the year has passed you make op the balance and see how much you have earned.

If you don?t want to trade frequently the Dogs-of-the-Dow system is a very relaxing and defensive and profitable way of money investment.

If you want to make a higher profit, trading is a better and faster way. Foreign currency trading in particular. Foreign currency trading requires little more than just knowing the currency course rate.
You have to understand some basics techniques of how the market trades those currencies.

With the right knowledge and techniques you can easily turn % 50 into % 1000.
Trading then isn?t just making money it?s also fun.
The fun is that it can be done 24 hours a day. When one market closes the other opens up. So you go from New York to Amsterdam to Tokyo to Sydney and back to New York.

Want to hear about the benefits of trading foreign currency instead of other money investment products.

Find out and http://www.powerfulltradingcourse.com

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Currency markets – Spanish property 20 July 2006

Currency markets – Spanish property 20 July 2006

Summary of Overnight News:
? The FTSE-100 will open sharply higher this morning following last night’s strong gains in New York, as dovish comments by Fed chairman Ben Bernanke and sliding oil prices allowed investors to put the crisis in the Middle East to one side and put a bit of blue on our screens to match the skies outside.

? US stocks surged higher on Wall Street last night after Federal Reserve Chairman Ben Bernanke reassured the market with his view that economic growth seems to be moderating and inflation remains contained, traders noted.

? ‘Clearly we don’t want to tighten too much to cause our economy to grow more slowly than its potential,’ Bernanke said during questioning before the Senate Banking Committee.
? Investors interpreted Bernanke’s testimony as a sign the Fed is close to ending its streak of interest rate hikes, dealers added.
? The DJIA closed 212.19 points higher at 11,011.42, its best performance of 2006, while the Nasdaq ended up 37.49 points at 2,080.71.

USA

Figures out Today:
13:30 US jobless claims (w/e 15/7) k Prev 332
13:30 CA wholesale sales (May) %PRCTG%m/m Prev 0.1
15:00 US leading indicators (Jun) %PRCTG% Prev -0.6
17:00 US Philadelphia Fed (Jul) Prev 13.1
19:00 US Minutes of 29 Jun FOMC Meeting

? Yesterday?s 0.3%PRCTG% rise in the US June core CPI tipped the balance to another 25bp rate hike on 8 August. But a less hawkish than expected and fairly noncommittal testimony from Chairman Bernanke added a fraction more ambiguity to the chance of an imminent rate hike, with the focus seemingly more on the longer term impact on inflation from moderating growth. His testimony, which gave strong boost to US and European share prices and Treasury bonds, came as the Fed released forecasts suggesting that it is prepared to bring US inflation down gradually, to minimise the damage to the real economy.

UK

Figures out Today:
09:30 Retail sales (Jun) %PRCTG%m/m Exp 0.2 Prev 0.5
09:30 Retail sales (Jun) %PRCTG%y/y Exp 2.7 Prev 4.0
09:30 PSNB (Jun) ?m Exp 7000 Prev 6583
09:30 PSNCR (Jun) ?m Exp 13000 Prev 16246
? UK retail sales (09:30) are forecast to have edged up during June, by around 0.2%PRCTG%. Overall, the quarterly performance of the retail sector should have improved considerably in Q2 which should underpin tomorrow?s release for GDP, expected to have grown 0.7%PRCTG% in Q2, inline with the MPC?s central projection.

Japan

Figures out Today:
06:00 JN BoJ Monetary Policy Minutes
EURUSD @ 1.2590 GBPUSD @ 1.8435 GBPEUR @ 1.4640 USDJPY @ 116.85

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A Short Explanation Of ?Buying? and ?Selling? In Forex Trading.

A Short Explanation Of ?Buying? and ?Selling? In Forex Trading.

These days everyone is talking about a new profitable activity called Forex trading and the great opportunity this activity represents for people willing to brake free from the corporate world and start working from home or any where else without losing their current lifestyle and even improving it.

Most experienced traders consider that the best and most profitable of the capital markets is the Forex market. For many years Forex trading was the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market.

You have many advantages when trading the forex markets, for example; you don’t have to worry about fees you may have to pay to your broker; there are also none of the usual fees to which futures and equity traders are accustomed to pay always; no exchange or clearing fees, no NFA or SEC fees.

The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world’s commerce transactions and its high activity that these five currencies account for over 70%PRCTG% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4%PRCTG% – 7%PRCTG% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the Forex market.

The concept of ?Buying? in Forex refers to the acquisition of a particular currency pair to open a trade and ?Selling short? refers to the selling of a particular currency to open a trade, i.e, just the opposite. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high; which is easy to understand. In the case of Selling short, it looks a bit more complicated. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. It may seem kind of tricky when you are starting, but once you are in front of your trading station it will look much simpler.

Technorati Tags : forex trading market currency

FOREX: Foreign Currency Exchange Market at your fingertips

FOREX: Foreign Currency Exchange Market at your fingertips

Dear Friend,

Have you ever heard of FOREX? FOREX stands for Foreign Currency Exchange Market. This is a fascinating new way of making money in the trading market. With FOREX you can learn powerful techniques that will let you turn %200 to %3,000. You will learn to focus on what trades are the good ones and the most profitable. FOREX is an amazing tool to learn to use. Not only will you profit big, you will also have more confidence when deciding what to trade or not to trade.
The beauty of FOREX is that it?s not only for expert traders, but also for beginners. As a beginner, FOREX teaches the basic terminology used, concepts, and knowledge that will allow you to join the FOREX trading market. FOREX literally points you in the right direction of where to start your trading. It?s as if you?re being held by your hand and being taken to where the money is. FOREX is great, because if you sign up you?ll receive a FREE ebook with training materials that will teach you everything about trading FOREX and how to get started. This is a great course that will really teach you step-by-step in how to make intelligent trades in the trading market. One of the best features about FOREX is it doesn?t cost thousands of dollars like most competitors and you?ll probably end up making much more money with FOREX than these competitors.
FOREX is also beneficial for expert traders. So for you experts out there, you?ll just fall in love with this from the start. You already know the basics and now you?ll become perfectionist in basically making money. Who wouldn?t love this talent? FOREX is a great tool that basically let?s you know when the major market moves will happen and in what direction. It?s as if you?re waiting for someone to give you the go ahead of trading and knowing that it will be profitable. This is just too good to be true. Well with FOREX it?s just that good! Learning these precision techniques will surely help you in achieving HUGE PROFITS.
There are always risks with trading. However, with FOREX the techniques that you will learn will teach you to trade with the smallest risk possible (between 10 to 20 pips). The purpose of FOREX is for you to be amazingly profitable. Like mentioned above, this is not only for experts but for beginners as well. This new powerful tool is feasible that even a child can learn. You?ll see dramatic changes in your income and feel more confident in knowing when and how to trade. You?ll enjoy this new way of living! Just think, you wake up start your day and do a little trade here and there and then that?s it! You basically did your work for the day and then you?re free to enjoy the rest of your carefree day. This type of lifestyle is waiting for you! Just remember FOREX is the place to be.

Best of Success!
Thanks,
Stephanie

This is one of the many remarkable trading techniques taught at:

Http://www.4exonline.com

You?ll learn precision techniques that will make huge profits

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Beginner?s Overview of Foreign Currency Exchange

Beginner?s Overview of Foreign Currency Exchange

Foreign currency exchange trading can be very rewarding, but can also be very intimidating to a beginner. To get started, you will need to know some basics:

1. What is foreign currency exchange?
2. How is it traded?
3. What are the benefits?
4. What are the risks?
5. How can I get started?

What is Foreign Currency Exchange?

The Foreign currency exchange (FOREX) market is a cash (or ?spot?) market for currency. Unlike the stock exchange, the FOREX market is not located on a trading floor or centralized on an exchange. Instead, it is entirely electronic within a network of banks and runs 24 hours per day Sunday evening (5:00 pm EST) through Friday evening (4:00 pm EST), excluding some holidays. The fact that it is all electronic means that you can tap into it from your computer.

How is it traded?

FOREX is traded in currency pairs, for example EUR/USD is the Euro base currency and the US dollar counter (or quote) currency. There are six major pairs: EUR/USD, GBP/USD (Great Britian pound vs. US dollar), USD/JPY (US dollar vs. Japanese yen), USD/CAD (US dollar vs. Canadian dollar), AUD/USD (Australian dollar vs. US dollar), and USD/CHF (US dollar vs. Swiss Franc).

Currencies are traded in dollar amounts called lots. For a ?standard? account, one lot (called a standard lot) is %1,000 and controls %100,000 in currency. For example, when you place an order to buy one lot of EUR/USD, you are buying the EUR and simultaneously selling the USD. The margin you must put up to place the order is %1000 (for a standard lot). You are going long the EUR and expecting it to strengthen against the USD. For every increase of %0.0001 in the EUR, you make one ?pip? (price interest point) equivalent to %10 per lot traded.

Similarly, for a ?mini-account? when you place an order to sell one mini-lot (one-tenth of a standard lot) of EUR/USD, you are selling the EUR and simultaneously buying the USD. You are going short the EUR and expecting it to weaken against the USD. The margin requirement is %100.00 per mini-lot. For every decrease in the EUR of %0.0001 you make one pip equivalent to %1 per mini-lot traded.

Note that unlike trading stocks, there are absolutely no restrictions on short-selling in FOREX. Short-selling is exactly like buying ? except that you?re selling of course.

The pip value and amount per pip per lot differs when the USD is not the counter or quote currency. For example, when buying the USD/JPY pair with a ask price of 109.00 (meaning 1 USD equals 109.00 yen), a change in the Japanese yen of 0.01 yen is equivalent to 1 pip or %9.17 per pip per lot traded (%9.17 = %100,000 x 0.01 / 109.00).

The broker makes money off the spread which is the difference in the quotation ask and bid prices. You buy the base currency at the ask price and sell it at the bid price. Generally, the major currency pairs have relatively low spreads. The EUR/USD is commonly two to three pips and the GPD/USD is commonly four to five pips. For example, the current bid/ask price for EUR/USD is quoted at 1.2322/1.2324. This means that you can buy 1 EUR (the base currency) for %1.2324 USD (the counter-currency). You buy at the ask price. You can sell 1 EUR for %1.2322 USD (you sell at the bid price). You will pay the broker the spread or %1.2324 – %1.2322 = %0.0002 = 2 pips. For a standard lot, the broker fee (in this example) is %10 x 2 pips = %20 per standard lot for a roundtrip trade (1 buy and matching sell or 1 sell and matching buy). For a mini-lot, the fee would be %1 x 2 pips = %2 per mini-lot for a roundtrip trade. The broker fee is automatically deducted from your account.

Obviously, if you buy (go long) a currency pair, you expect the base currency to increase in price. Your objective is to sell later at a price higher than you purchased and make a profit. On the flip side, if you sell (go short) a currency pair, you expect the base currency to decrease in price. Your objective is to buy later at a price that is lower than the price you originally sold, and thus make a profit off the difference.

There?s more to it than can be explained in this overview, but you should get the basic idea.

What are the benefits?

1. With FOREX trading, there is no inventory, no employees, and no customers. Your overhead can be as minimal as a home computer with internet access.

2. You can get started with a ?mini-account? investing as little as %300.

3. Currency prices tend to repeat in relatively predictable cycles creating strong trends. Once you learn how to trade properly, you can compound your money, and potentially turn a little into a lot.

4. You can trade for a few hours per week, or much more if you want to. It?s all up to you.

5. The FOREX market is very liquid, with trillions of dollars traded every day. On its slowest day, orders can usually be placed within a few seconds if you stay with the major currencies. Instantaneous execution (1 to 2 seconds) is the norm during normal trade volume days (for the major currencies).

6. You can trade from just about anywhere as long as you have a computer with internet access to your account.

What are the risks?

1. The market can be very volatile, especially during times of major news releases, also known as ?fundamental announcements.? The time of these announcements is usually known in advance. Many traders simply stay out of the market during these announcements and wait until market volatility has settled back down.

2. If you use too much margin or risk too much on any one trade, your account could suffer badly on a trade that doesn?t go your way. Proper risk management, including sound placement of stops and not risking more than 2 percent of your account on any one trade, can alleviate this risk. Do not risk more money than you can afford to lose.

3. A major world event could trigger a huge volatility swing that could wipe out your account (or even more). However, some brokers limit the loss to the amount in your account. (Of course, a major world event could also cause the trade to go your way.)

4. Trader psychology (fear and greed) can play a big role in your success or failure as a trader. Trading education is one of the keys to overcoming these human flaws.

5. You could fail to place a stop loss with your order. A change in price could force a liquidation of your trade if your account falls below the required margin maintenance. To alleviate this risk, always set a stop loss when you place an order.

This list is not meant to be inclusive. There are other risks.

How can I get started?

You can easily open an online account by selecting one from many available FOREX brokers. You can, and should open a demo account to practice (and learn) for several months for free. The practice account makes simulated trades using real-time data. This is called ?paper trading.? You should not trade your real account until you have proven to yourself that you can be profitable in your demo account.

Once you get started, you can trade currencies from just about anywhere. About all you need is a computer with internet access to your trading account. Many brokers also provide free charting software.

Jim McCabe

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