Learn Currency Correlations

By Hass67

All the currency pairs are interrelated in the forex markets. They keep on affecting each other. As a forex trader, you need to understand that the price action of each currency pair is not mutually exclusive.

Most of the currency pairs move relative to one another. Understand that different currency pairs are correlated. These correlations can be positive or negative.

Knowledge of how strong this relationship is and its direction can help you in developing your trading strategies with a new perspective. This has the potential to become a great trading tool for you.

Correlations are numbers that range between +1 and -1. These numbers are calculated based on past pricing data between different currency pairs. They can provide you with information that can maximize returns, minimize risk and avoid counter productive trading.

Lets use an example to make it clear. Suppose USDJPY and USDCHF has a positive correlation of +0.83 last month. This number is close to +1. It indicates that both pairs move together most of the time in the same direction.

Now, if you are trading USDJPY and USDCHF at the same time, it will double up your position if you take long positions or short positions on both at the same time. If you lose a trade on USDJPY, the chances are that you will also lose the trade on USDCHF 83% of the times.

Take another example. Suppose EUR/USD and USD/CHF have a negative correlation of -0.9 in the past month. Both the pairs are moving in opposite directions. If you go long on one, it is not a good strategy to go short on the other. It will only double up your position and increase your risk.

If you are investing in two currency pairs simultaneously, try choosing such pairs that have correlations near zero. Zero correlation means the two pairs are independent of each other in price action.

Keep this in mind that forex markets are constantly changing. These correlation numbers also keep on changing. It is a good idea to calculate the correlations of the pairs that you invest in on monthly basis. - 23199

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading; stocks and forex. Read about Trend Forex System. Best Forex Signal Service. Download Forex Scalping Cheat Sheets!

Be In The Loop. Learn Forex.

By Bart Icles

The fact that you are interested in trading in the forex market and wants to find out what the different complexities of it are just proves the fact that you - along with a lot other forex trading hopefuls - have learned how lucrative and easy trading in the forex market is when you use the right strategy. You might know somebody who has already made chunks of money in forex trading. A lot of people, though, are trying their luck in the forex market lose a lot of money. If you do not want to be one of them, you should learn forex.

Statistically almost all positive things you read about forex - forex trading success stories, etc. - just occur about 30% of the time when trading. Yes, you guessed it right. Majority lose good chunks of their hard-earned money when they could have spent them for more important day-to-day needs. What, then, makes those who succeed really succeed and earn millions in the process?

For you to be able to belong in the 30% pie of the forex trading success stories, you should do one thing: Learn Forex! When you learn forex, you will have the luxury of working lesser and lesser hours since you pretty much earn way more in a month than you can earn in your normal job in a year. When you learn forex, you will also be able to experience just being in the confines of your favorite hang outs and yet be earning thousands - even millions if you get really lucky and play your strategies right - by just being in front of your laptop or desktop manipulating the keys and making the right calls. Try not to be swayed by beginner's luck because chances are, if you are a beginner and trade head-on without learning everything there is that you need to know about the forex market, then you're almost sure to be losing most of your hard-earned bucks.

Here are the 7 reasons why you should learn forex:

1. The forex market is the biggest and most lucrative market there is.

2. You can win on either side of the market.

3. You can trade anytime since it has a 24-hour trading window and is available worldwide.

4. You can trade in the comfort of your own home.

5. There is no need for a very large sum of money to invest.

6. You can manage your earnings all your own since it's pretty much easy to understand.

7. With the right strategy and proper practice with a dummy account, you can, more or less, be able to predict what will happen.

Learn forex and earn the rewards now. - 23199

About the Author:

A forex blog is a powerful tool in your forex education. Learning with forex blogs takes dedication and a good writer and teacher. But is well worth it, once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Credit Cards As a Way to Get Ready For Trading

By Rick Amorey

You may find several avenues of investigation profitable before you go into online stock market investing. There is a lot of information available online to a potential investor; one can buy a book on the topic, subscribe to newsletters, or even sign up for seminars wherein you can get good advice. Before you spend one cent on any of these options, though, you should try to go out and do research on your own. Both libraries and the Internet have material you will find useful.

Keep in mind this one thing: set down boundaries before you even begin to invest. Unlike what is implied in a lot of online stock market investing advertisements, investing is not a wonderful and perpetual source of money. But this much I can tell you; in general, stocks perform a lot better than other investments after a period of time. But, at the end, though, all investments have their own risks, and will have no guarantee of making a profit.

Make sure you have taken the time to investigate your own financial situation, before you seek stock market advice. Track where your money is going and how its being spent, apply steps to get rid of credit card debt, and get yourself into a good money situation. But, if you cannot do this, then I'll advice you to refrain from investing in the market for now.

A credit card is a good measure of discipline; and if you have a credit card debt, then chances are you won't be able to handle the pressures of owning shares. I'm not discouraging you, mind: If you can get rid of that weak spot in your financial armor, and then you can take on the demands of the stock market life.

Think of it like this: owning stock is essentially owning a small part of the company you invested in. If your boss had a substantial credit card debt, would you entrust him with other financial aspects? Probably not. Likewise, you should buy and manage stocks if you are confident in the company's direction. At any rate, you'll have one less thing to worry about without credit card debt. - 23199

About the Author:

Rick Amorey believes that shortcuts to success are a joke, and instead suggests the comprehensive program of Emini Trading. Be an educated trader with the help of Emini Trading System, and watch your money grow like a carefully monitored seedling.

The Enduring Beauty and Value of Gold Bullion Bars

By Christina Goldman

Gold bars such as the prestigious Pamp Suisse Gold Bullion Bar have been used in transactions since the time of the ancient Greeks, Romans, and Egyptians. Billions of dollars worth of gold bars lay on the ocean's floor around the world, spilled overboard by military attacks, the wrath of nature, and greed of pirates. Gold has long been considered one of those most valuable and coveted forms of money. For thousands of years, owning gold has brought with it the reputation and prestige of wealth and power.

Gold bars are defined as any amount of gold that has been shaped into some sort of compact bar. There are dozens of different names for gold bars, including but not limited to:

Chi bars

Tael bars

Bank bars

Minted "brick" bars

"Bullion watch" bars

"Gold fillet" bars

These gold bars may weigh anywhere from 1 kilogram to 12.5 kilograms, or 400 ounces, to 1000 gram, known as the kilobar. These days, the kilobar is the most popular when it comes to trading, collecting, and investing. Gold bars and gold bullion bars are generally defined in terms of troy ounces. One troy ounce equals 31.1034768 grams, 1 kilogram equals 1000 grams, and one tael equals 50 grams.

Gold bars may be classified into two different types: minted and cast, depending upon how it was manufactured. Cast gold bars are created through the process of pouring heated liquid gold into a mold. Minted gold bars are hand cut into specific dimensions.

Gold bullion bars are generally available in 10-ounce gold bars that contain .995. purity or 1 kilogram per gram bar, or gold bullion bars designed mainly for investing. One of the most popular is the 10- ounce gold bullion bars, known as a "four-nines" or pure .9999 finest.

Regardless of size or shape, investing or collecting in gold bullion bars is a solid investment decision that carries a legacy of power and wealth that dates back thousands of years. - 23199

About the Author:

Please don't lose sleep over the security of your money! You can protect your hard-earned savings from bank failures, financial catastrophes, and the devastating effects of high inflation with pure Pamp Suisse Gold Bullion Bar. For great deals and selection, visit us now at: http://goldbullionbars.info

The Truth About Forex Scams

By Jack Sawyer

So what are forex scams? Some people jump to the conclusion that anything that doesn't make them rich overnight is a scam. They do not want to have to spend any time developing skills - they want something that works like magic, without putting in any effort at all. That's clearly crazy. If such a thing existed, everybody would be using it ... and when you think about the economics, even if something like that was invented, it wouldn't be effective for very long.

The fact is that the money you make has to come from somewhere. Technology can improve our methods of producing goods so that everybody's standard of living improves and everybody becomes richer in real terms. However, when you are trading, gambling or doing anything else that involves 'pure money' without any goods or services being produced, then for one person to gain, another person or institution has to lose.

It is true that in currency exchange, some of the bad prices are taken by people or institutions who either do not know or do not care. Businesses who import or export goods rarely bother to try to schedule their payments for a moment when the currency rates are favorable. People taking a vacation overseas are the same. Nevertheless, there are so many people and institutions in the 'pure' forex market these days that it is simply not possible for everybody to make money from forex trading.

So when you are in an internet forum and you are trying to decide whether negative comments that you read about a product are really a sign of a scam, it is useful to picture the situation happening in the real world, i.e. offline.

Let?s say that you buy a book on Forex trading from your local bookstore. You read the book, apply what you have learned and find that it doesn?t work for you. Maybe the information here is out of date, or it simply didn?t work for you for another reason. You?d probably just chalk it up to a lesson learned and try something else. What you wouldn?t do is to angrily run down to your local bookstore and accuse the owners of operating a scam.

Let?s say that the bookstore had been hyping a new book which was about to come out and was urging every customer to pre-order. However, when everyone showed up at the bookstore on the release date only to find the store shuttered and the owners nowhere to be found, this would be a scam.

A scam is a fraudulent business operation which is made to swindle would-be customers. These activities are illegal and not offered in good faith. However, any product or service which is indeed created with legitimate business intent is by definition not a scam.

People are naturally a little resistant to buy anything online, especially with the word scam being used so lightly. In many cases, it?s simply a customer who didn?t get the results they wanted trying to shift the blame to the product. While you may not want to buy these products, it would not be accurate to call them Forex scams. - 23199

About the Author:

About the author: Jack Sawyer can help you find the greatest Forex Software. To learn Forex Trading Online go to http://www.forex-product-review.com.