Golden Fibonacci

Hedging is any strategy designed to offset or reduce the risk of price fluctuations for an asset or investment. Hedging should not be confused with hedge funds, which are private investment funds that often, but not always, employ hedging strategies.

When an investor buys or sells a security, the investor bets that the price of the investment will move in a certain direction. As with any bet, there’s always the risk of losing money if the price moves in the opposite direction. An investor hedges against this risk if he employs any tool or strategy that minimizes this risk. Ream more »

The US government continues to bailout financial institutions. This time the government throws a lifeline to Citigroup, after its stock fell 60% last week. The government will guarantee troubled mortgages and toxic assets worth $306 billion and Citigroup also gets a $20 billion boost in cash, despite the $25 billion the bank received only a month ago.

The US auto industry is in desperate need of cash as well. General Motors, Ford and Chrysler are on the brink of bankruptcy and they want money from the government too. Next week chief executives of the ´Big Three´ will present a plan in Washington with details how they think the auto industry can be saved if the government throws money at it. An amount of $25 billion will be provided, if they convince Congress. Many economists expect it will cost a lot more in the end, the companies are burning through billions of dollars every month and it´s not likely they can turn things around in a short period of time, after years of losing money. The ´Big Three´ are probably back in Washington asking for more money just a few months from now.

Read Continue at Sjeltur.nl

Source : Sjeltur

Unparalleled liquidity
In the forex market, over $3.2 trillion worth of trades are traded daily, which makes the currency trading market the most liquid market in the world – trading in 1 day what Wall St. trades in 1 month. No matter what time of the day or night it is, the forex market is always moving, and around the world active traders are buying and selling currencies. Ream more »

The technical trader is concerned with studying patterns of price movement on the chart in order to predict the direction of current and future trends in the Forex market. The decision to buy, sell, or hedge a current position – or to stay out of the market entirely – is made upon this analysis. Identify recurring patterns and make educated assessments to guide your decisions; should you initiate a trade at the current price, or set your system to open a position at a future price? The goal of the technical analyst is simple: to make profitable Forex trades by identifying past patterns that have historically led to a predictable outcome. However, the potential risk should always be considered. A recurring pattern is not precise and does not guarantee a desirable or expected price movement. Ream more »

Factors That Move The Forex Market

Fundamental analysis involves examining the intrinsic value of a nation’s currency based on economic news releases that reflect the strength, or weakness, of a country’s economy. Fundamental traders follow these news announcements, known as “fundamental indicators,” because they paint a picture of a currency’s strength in relation to other countries.

Fundamental indicators are reports that include statistical data on things such as employment, gross domestic product (GDP), international trade,  retail sales, housing, manufacturing, and interest rates. The stability, growth, or decline in any of these sectors may have an effect – direct or indirect – on the value of a country’s currency. Ream more »

Using fundamental and technical analysis, the individual trader attempts to determine trends in the price movements of currencies, and by buying or selling currency pairs, attempts to gain profits. The most often traded currencies, the major currencies, are those of countries with stable governments and respected central banks that target low inflation. Currencies that often trade along with the U.S. Dollar include the European Euro, the Japanese Yen, and the British Pound as they are the most liquid. A trader can trade these currencies in any combination. CMS Forex also offers the Swiss Franc, and the Canadian, Australia and New Zealand Dollars making for 19 total trading instruments when accounting for all the cross pairs. More “Exotic” currencies are not offered as they are often tightly regulated and simply too illiquid. Ream more »

Whether or not you are aware of it, you already play a role in currency trading. The simple fact that you have money in your pocket makes you an investor in a nation’s currency. By holding US Dollars, for example, you have elected not to hold the currencies of other nations. When a currency is traded, the transaction is carried out on the Foreign Exchange market (also referred to as the Forex or FX market). The Forex market is the largest financial market in the world, with over $1.9 trillion changing hands every day! Ream more »