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Archive for August, 2012

Understanding Stock Trading Technical Analysis Tutorial w/ the Zecco Zirens


Zecco, which provides low cost stock and options trades through Zecco Trading, has created a series of short video tutorials to help improve your basic understanding of stock trading. This video covers technical stock analysis, including technical indicators, investing education, using technical indicators like MACD, volume, and stochastic.

Archived under Technical Analysis Comments (12)

Are The Markets On Pause for Bernanke?

Are The Markets On Pause for Bernanke?

Since late August 2010, the major stock market indexes have rallied sharply higher. The catalyst for the rally was the announcement of QE-2(quantitative easing) by the Ben Bernanke in Jackson Hole, Wyoming. The U.S. Dollar Index has been declining sharply ever since that announcement and the stock markets have inflated higher. Now the Bernank will start holding press conferences after their FOMC announcements. This is something new by the Federal Reserve as they try and become more transparent to investors and the public. Congressman Ron Paul(R-Texas), has been recently breathing down the back of the Federal Reserve in his new position as head of the subcommittee that oversees the central bank.

The big question that many traders and investors are asking, what will the Federal Reserve bank do for an encore to QE-2? How can the central bank keep the liquidity(money) flowing into the stock market after QE-2 expires? Many investors believe that the Federal Reserve will start QE-3 if the stock market starts to falter or is unable to stand on its own feet after the Fed no longer does quantitative easing.

The last Federal Reserve Chairman was Alan Greenspan.

He was know for talking in circles to politicians. There were actually people hired by the financial media that would try and interpret what he said after a meeting with the U.S. Congress. We can only wonder if Ben Bernanke will take a page out of Greenspan’s book.

Gold and silver have told the world that the Federal Reserve and other central banks have continued to simply create money in order to keep the markets floating higher. In my humble opinion, gold and silver are the central bank’s worst nightmare because it simply tells us that money is being created on a daily basis. Eventually, the Federal Reserve Bank will be forced to strengthen the U.S. Dollar. The big question that traders must ask, is when that will happen?

In the meantime, the Federal Reserve seems to be one step ahead of all the investors in the world at this time. High oil, unemployment, and overall inflation, have not stopped this market from advancing. The U.S. Dollar Index is now trading at a new two year low. The U.S. Dollar Index has declined by nearly 17.0 percent since June 7, 2010. Commodities and commodity stocks have surged higher since the Federal Reserve began its QE-2 program. Stocks such as AK Steel Holdings Corp.(NYSE:AKS), Caterpillar Inc.(NYSE:CAT), and Newmont Mining Corp.(NYSE:NEM) have all benefited from the action by the Federal Reserve. If the Fed decides to stop inflating the markets these leading stocks and others could be in for a sharp correction.

It will be interesting to see what the Federal Reserve Chairman, Ben Bernanke, will have to say in this press conference on Wednesday. Will he defend the U.S. Dollar or just push any questions aside like his predecessor Alan Greenspan did? Get the popcorn ready we shall soon enough.

Nicholas Santiago
InTheMoneyStocks.com

Archived under Bernanke Comments

Forex Morning Trade Review – Trade Forex In A Few Minutes Every Morning

Forex Morning Trade Review – Trade Forex In A Few Minutes Every Morning

Forex Morning Trade is a new Forex Trading system created by Mark Fric.  When using a Forex Trading system there are certain things you must do to be successful in forex with any system.

1 – You must have clear and simple rules to follow each and everyday

2 – You must trade once a day in the morning

3 – There must be a good risk versus reward system

4 – Trading won’t take you more than 5-10 minutes and you are free for the day

If You Are Looking For A Profitable Forex System, This Is The One

Marc has been using this system for over a year before bringing it to the public and he has been making changes during that time to turn it into one of the best Forex trading systems online.

The Forex Morning Trade system is based on the London open, which uses the increase of volatility and trending when traders in Europe enter the market.

The system will tell you in the morning if you should buy, sell, or stay away for the day.

This system gives you some great bonuses, expert author robot for Metatrader that can automatically

Trade this system.  The second bonus is access to the product owners live trading journal where he trades this system day by day with real money.

If You Are Looking For A Profitable Forex System, This Is The One

Review

The system looks for signal: time for trade, ideal entry price, profit at, and stop loss at that is why it only takes a few minutes each day to make money.

Russ Horn a professional Forex Trader, reviewed the Forex Morning Trade that had many more winning days than losing day compared to other Forex systems

Russ recommended Forex Morning Trade.  So if you are looking to get into Forex trading to add some income to your household this system is as easy as you can get when

Starting out in the forex world.

If You Are Looking For A Profitable Forex System, This Is The One

Archived under Forex News Comments

Foreign Exchange Hedging Policy – Types of Foreign Currency Hedging Vehicles

Foreign Exchange Hedging Policy – Types of Foreign Currency Hedging Vehicles

Foreign Exchange Hedging Policy

The following are some of the most common types of foreign currency hedging vehicles used in today’s markets as a foreign currency hedge. While retail forex traders typically use foreign currency options as a hedging vehicle. Banks and commercials are more likely to use options, swaps, swaptions and other more complex derivatives to meet their specific hedging needs. Foreign Exchange Hedging Policy

Spot Contracts – A foreign currency contract to buy or sell at the current foreign currency rate, requiring settlement within two days.

As a foreign currency hedging vehicle, due to the short-term settlement date, spot contracts are not appropriate for many foreign currency hedging and trading strategies.

Foreign currency spot contracts are more commonly used in combination with other types of foreign currency hedging vehicles when implementing a foreign currency hedging strategy.

For retail investors, in particular, the spot contract and its associated risk are often the underlying reason that a foreign currency hedge must be placed. The spot contract is more often a part of the reason to hedge foreign currency risk exposure rather than the foreign currency hedging solution.

Forward Contracts – A foreign currency contract to buy or sell a foreign currency at a fixed rate for delivery on a specified future date or period.

Foreign currency forward contracts are used as a foreign currency hedge when an investor has an obligation to either make or take a foreign currency payment at some point in the future. If the date of the foreign currency payment and the last trading date of the foreign currency forwards contract are matched up, the investor has in effect “locked in” the exchange rate payment amount.

* Important: Please note that forwards contracts are different than futures contracts. Foreign currency futures contracts have standard contract sizes, time periods, settlement procedures and are traded on regulated exchanges throughout the world. Foreign currency forwards contracts may have different contract sizes, time periods and settlement procedures than futures contracts. Foreign currency forwards contracts are considered over-the-counter (OTC) due to the fact that there is no centralized trading location and transactions are conducted directly between parties via telephone and online trading platforms at thousands of locations worldwide. Foreign Exchange Hedging Policy

Foreign Currency Options – A financial foreign currency contract giving the buyer the right, but not the obligation, to purchase or sell a specific foreign currency contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign currency option buyer pays to the foreign currency option seller for the foreign currency option contract rights is called the option “premium.”

A foreign currency option can be used as a foreign currency hedge for an open position in the foreign currency spot market. Foreign currency options can also be used in combination with other foreign currency spot and options contracts to create more complex foreign currency hedging strategies. There are many different foreign currency option strategies available to both commercial and retail investors.

Interest Rate Options – A financial interest rate contract giving the buyer the right, but not the obligation, to purchase or sell a specific interest rate contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the interest rate option buyer pays to the interest rate option seller for the foreign currency option contract rights is called the option “premium.” Interest rate option contracts are more often used by interest rate speculators, commercials and banks rather than by retail forex traders as a foreign currency hedging vehicle.

Foreign Currency Swaps – A financial foreign currency contract whereby the buyer and seller exchange equal initial principal amounts of two different currencies at the spot rate. The buyer and seller exchange fixed or floating rate interest payments in their respective swapped currencies over the term of the contract. At maturity, the principal amount is effectively re-swapped at a predetermined exchange rate so that the parties end up with their original currencies. Foreign currency swaps are more often used by commercials as a foreign currency hedging vehicle rather than by retail forex traders.

Interest Rate Swaps – A financial interest rate contracts whereby the buyer and seller swap interest rate exposure over the term of the contract. The most common swap contract is the fixed-to-float swap whereby the swap buyer receives a floating rate from the swap seller, and the swap seller receives a fixed rate from the swap buyer. Other types of swap include fixed-to-fixed and float-to-float. Interest rate swaps are more often utilized by commercials to re-allocate interest rate risk exposure. Foreign Exchange Hedging Policy

Archived under Currency Hedging Comments

Allison from Intervention


In case you missed the 1 hour special of Allison on Intervention, I have it summed up for you in 2 minutes. ENJOY!!

Archived under Intervention Comments (21)

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