Learn to Use Fibonacci Retracements

By Ahmad Hassam

Investors use Fibonacci ratios to project future levels of support and resistance based on previous price moves in the forex markets. In other words, previous price moves in the currency market determine where the Fibonacci levels will be placed.

Fibonacci analysis is an exercise in identifying and determining the support and resistance during both the trend retracement and the trend continuations. It is based on a series of numbers and ratios derived from the Fibonacci sequence. This remarkable sequence was discovered by an Italian mathematician Leonardo Pisano.

The sequence begins with the three numbers 0, 1 and 1. After that, the next number in the sequence is obtained by adding the previous two numbers. For example, by taking the first two numbers 0 &1; the next number obtained is 0+1=1 and by taking the next two recent numbers, 1 & 1; the next number obtained will be 1+1=2. So the Fibonacci sequence develops like this: 0,1,1,2,3,5,8,13,21,34,55.

The fascinating thing about this sequence is that the ratio of numbers at specified intervals is consistently the same, no matter how high you go. Fibonacci sequence gives us two very important ratios. These two ratios appear over and over again in nature such as shells, pine cones, sunflowers etc. These two ratios also appear in currency markets.

The first ratio, 38.2%, is calculated by dividing any number in the Fibonacci sequence by the number two places higher in the sequence. For example, in the above Fibonacci sequence, divide 21 by 55 (two places higher) you get 21/55=38.2%.

The second important ratio is 61.8% obtained by dividing any number in the Fibonacci sequence by the next number in the sequence. 55 is the next number after 34. Divide 34 by 55 you get 34/54=61.8%.

Trends in forex markets dont go in the straight line. Uptrends never go straight up and downtrends never go straight down. The price will always trace along the way as buyers and sellers enter and exit the markets. The important question in every forex traders mind is how far these retracements will penetrate into the previous movement. This is where the Fibonacci ratios become useful.

Most forex traders use the three additional ratios of 0%, 50% and 100% in conjunction with the two primary Fibonacci ratios to round out the retracement analysis tools. Two secondary Fibonacci ratios, 161.8% and 261.8% are also used in the trend continuation projections. The ratio 161.8% is obtained by dividing any number in the sequence by the number preceding it. For example, in the above sequence dividing 55 by 34 gives 55/34=161.8%. Similarly the ratio 261.8% is obtained by dividing any number in the sequence by the two preceding it. For example, divide 55 by 21, you will get 55/21=261.8%.

These ratios are used by forex traders in making entry and exit decisions. The ratio 38.2% is used as an entry point in a trending market and the ratio 0% as the exit point. The important question is why markets react to these levels. Dont forget, markets are just people buying and selling. So if many people start believing in a thing, it becomes a self fulfilling prophecy. Since most of the traders use Fibonacci ratios in setting their entry and exit targets, the markets starts reacting to these levels. - 23210

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Learn Forex Nitty Gritty. Read about Trend Forex System. Try Netpicks Forex Signal Service.

Planning For Income Needs with an IRA or 401K

By Mark Freeman

The type of savings fund that can get you the most flexibility over time should be used when saving for retirement. This retirement fund is called a 401K. The 401K account is funded via wages that are taken directly from your employer into a retirement account. 401K contributions come from your pretax salary and cannot be taxed themselves. The name 401K came from the IRS code that created these types of accounts.

One of the best advantages to having a 401K fund is that you can make a lot of money in the long term as well as save money on taxes. Your contributions will be subtracted from your salary and then your tax is calculated. So you still receive the full salary but are only taxed on a portion of it.

Most employers will match their employee's contributions though there are 401k rules to follow. These retirement accounts are protected by pension laws, as they are a form of personal investment.

A few of the disadvantages are that you cannot access the money in your 401K until you are 59 1/2. If your employer does contribute to your 401K then only your contributions will be going towards your investment, like is the case with IRA accounts. Also a 401K is not insured by the Pension benefit guaranty corporation. Like is often the case with a fixed annuity.

It is possible to investment in a variety of ways in your 401K. Your money can go towards money market funds, maturities, bonds, stock funds and other avenues. You are allowed to chose how you want to invest and can make changes when additional funds are deposited into the retirement fund. Most financial experts say that most individuals are not aggressive enough with their investments as stocks that are held for a long time do very well. Towards the end of the 401K period, when you may want to take money out you can switch to more conservative funds.

There are 401k rules and maximum contributions limits that can be made to your 401K. Each year will have a maximum allowable 401k contribution limit. Most contributions are made before tax, as you will receive the most benefit from this type of contribution. Pre tax payments must be made fairly quickly. It is also possible to make after tax contributions.

After-tax contributions have a different set of 401k or IRA rules and these funds can be easier to withdraw then pre-tax money. There are also additional rules for highly compensated employees and low-income employees. These laws were put into place so the top executives would not design a 401K that was only advantageous to them. The 401K from companies must be a good plan for the majority of the employees in the company. So highly compensated individuals actually have different rates.

With 401k and IRA accounts you take title as an individual. Make sure when buying property in the from of joint ownership to consider the other types of title. Tenants in common, as an example allows multiple owners (more than two). Community property and joint tenancy are some other options. Study your options before proceeding in these circumstances.

The 401K differs slightly from the IRA account, but they share many similarities. You can take an IRA deduction, just like a 401k. Roth IRA rules differ in that you can't take an IRA deduction, but you get to withdrawal the funds tax free in retirement. It is possible to take a 401k loan for yourself, but there are some drawbacks. These 401k loans can be used to purchase a house, medical expenses or paying for education. - 23210

About the Author:

When dealing with Roth IRA rules there are a number of issues you'll need to consider. One important topic that should be reviewed is 401k distribution as they apply to your specific needs.

Chinese Silver Commemorative Coins Celebrate Chinese History

By Christina Goldman

If you are a coin collector and are especially keen on brilliant, uncirculated silver coins then most likely you'll be interested in Chinese Silver Commemorative Coins. These coins are typically minted for collection purposes as well as memorial pieces to honor special events and people who have made a difference or a great impact in the country of China.

For instance, to commemorate the Beijing Olympic Games , Chinese coins were made and designed just for that purpose. Other countries have also recognized the wonderful thing about Chinese coins, particularly Australia, Somalia, Singapore, and the Isle of Man, so coinages were organized and different gold and silver coins are now circulating the markets today that contain the Chinese zodiac on one side and the partnering nation's countrywide symbol on the other.

These coins, depending on the weight, the design, and the dear metal content, can either be cheap ( RMB 3 to US $10-15 ) or dear ( generally over one hundred to one thousand greenbacks ) due to its rarity and the history that go with it. If you have an interest in picking up Chinese Silver Commemorative Coins, you'll be able to find plenty of original pieces or series online in merchant internet sites like Amazon and Ebay.

If you're attempting to find for those with the Chinese zodiac or the Giant panda in them, all you must do is just search through Google and Yahoo and you'll be able to find the set or piece to finish or add to your collection. There's certain to be a seller or coin dealer that will have the coin or series that you want to complete your private collection.

If you are a seller of coins, you can also exploit this opportunity by selling your own set of Chinese silver and gold on the internet. Particularly if they are Chinese Silver Commemorative Coins, you are certain to be showered with all types of offers from coin fans all around the world. - 23210

About the Author:

You can find wonderful prices and selection on the fabulous Chinese Silver Commemorative Coins at: http://ChineseSilverCoins.com

Forex Trading Exposed

By John Eather

Forex Trading, more often known, in it's short form of FX, is an international market for the exchange or goal of selling and buying the money of different countries competing with each other in the monetary market. The investors have the ability to sell and buy these various currencies in the hope of making small profits with each transaction.

Investors are attracted to it and many end up Forex traders. The FX market is open for trading from Monday 0:00 GMT and shut down on Friday 10:00 GMT and traders are not only locked to the NASDAQ or The New York Stock Exchange time frame.

Frankly, the Foreign Exchange Market fluid and really appealing to investors who can attain trades ranging equal to two trillion dollars on a day by day basis. Such vast sums of money in the trading arena make it nearly out of the question for an individual trader to create a discernible impact.

Foreign Exchange Trading is the dealing by buying and selling one nations currency for a different nations. The strong point or weakness of that currency, the ups and downs of it's economic value to that of a different country. For instance, an investment of three thousand American dollars ($3000.00) against the British pound, at 1.7999 and a margin of one percent anticipating the climb of the exchange rate.

Whenever this occurred you'd finish the rate of exchange at 1.8050 you'd attain around one thousand two hundred dollars ($1200.00). This would generate you a 40 % profit on your initiall investment. That's how come there are a bunch of Forex investors, but it still demands planning and knowledge of the currencies to be favorable.

Forex investors are provided with an a tremendous opportunity to trade and earn an enormous profit and losses if they try without a thoroughly thought out sensible short term trading plan. Forex is not like the stock exchange which holds positions for a much longer span of time. While Forex traders are numerous, they hold on to these positions for intervals of shorter duration of time.

Marginal accounts in Forex trading are really inviting and they let traders gather bigger positions without the necessity of big deposits. You can find marginal accounts in many circumstances with five % of the required funds. E.g. 5 thousand dollars ($5000.00) would take on a position of 1 million dollars ($1,000,000.00).

To trade well and enable you to maximise your net profit you must develop and employ a few methods of trading and be systematic and adopt them. There are a a couple of methods applied in making a decision on which FX trades to make the best of are: Forex technical analysis and Forex fundamental analysis.

The most analysis used is the technical. It applies the premise shifts come about in the Forex exchange are true and occur for a reason. The consensus being whenever a particular currency is traded towards a high it will maintain that trend. The opposite, as a rule, also holds true. Opinions of the technical Forex don't draw out predictions of long-term on the market, merely attempt to capitalize on the experiences of the past.

The fundamental analysis examines all the aspects, factors and trading currency of countries involved. Such as the rate of interest, economics, rate of unemployment all taken into consideration. For example, interest rates rising suddenly can compel Forex traders to open a position which is supported by data at that time. It might also cause him to remove an active position as a means to prevent monetary loss.

Forex trading can possibly outdo profitability when done right. Find out how to Forex trade - go online and open up a Forex Account, using a Demo, practiced without any funds. This will assist you in learning about the ways of trading, currency activity around the globe and how they are determined by this. When you get acquainted with the Forex market you'll build confidence with trading.

Make certain you feel relaxed with what you'll be doing prior to beginning. When you feel you are ready you will be able to open an active account and possibly start trading and realising profits. Even so, I strongly propose to you, whilst with any investing, never use cash you can't afford to lose. Don;t touch the mortgage money at all. By abiding by these suggestions you'll be prospering in no time. - 23210

About the Author:

Make sure to check out John Eather's informative ecourse and reports about Online Forex Trading. Receive the most state-of-the-art info regarding forex trading. Go to MoneyMakingFxTrader.com to learn more.

What Is the South African Krugerrand Mini Gold Coin - Should I Buy It?

By Christina Goldman

Is the South African Krugerrand Mini Gold Coin is an authentic gold bullion coin? It is similar to the very popular South African Krugerrand gold bullion coin but perhaps it is a ripoff of the very popular South African Krugerrand Gold Coin?

You are still sane so don't worry. What you have just encountered are authentic reproductions of the bigger Krugerrand gold bullion coins. What makes them terribly appealing to collectors and investors as well are its practical renditions of the much costly version.

Since gold is once again climbing to levels that haven't ever been experienced before, acquiring the South African Krugerrand Mini Gold Coin and adding it to the list in your investment portfolio would be a great move. And why is that? You see the mini gold coins have a weight of an approximated .50 grams. It's got a 10mm approximated size in diameter.

It gets better when you find out that their composition rates actually varies from 6K to as high as the first 22K. If you have plans on acquiring some, it's best to follow the golden rule in buying by the volume. The more pieces you buy, the lower the cost goes right?

Keep in mind that you could have stumbled on a fair deal in the web but be cautious with its validity. There are no silver Krugerrands in the market. Do not let these people trick you into purchasing these products. It's best to educated yourself on the coin's identity like for the oz mini ; it has 150 reeds ; 140 for the and 1/10 ounces.

Before you bring the gold coins home to show to your family, it would be best to do your own research first to make certain you are bringing home pieces of the South African Krugerrand Mini Gold Coin and not gold covered chocolate mini coins. - 23210

About the Author:

You can find great prices and selection on the unique South African Krugerrand Mini Gold Coin at: http://GoldKrugerrand.net