Following Oil in Currency Trading

By Ahmad Hassam

Part of becoming a good investor in forex is learning to understand that the markets evolve and changes with time. As it does, your trading strategies should also evolve and adjust. You will need to make a little tweak here and a little tweak there sometimes in your trading strategies.

There will be periods of low returns or losses. But once you have made the changes and adjusted your trading strategies, you will start making profits again. Dont get stuck with only one currency pair and one trading strategy. Start looking at macroeconomic events and how different currency pairs react to them.

Now, lets discuss a trading strategy that depends on following oil prices in the markets. There are many sources of oil. Some currency pairs react more strongly than other when oil prices change. Fortunately for you, oil prices trend for extended periods. When oil prices rise, they continue to rise for several months.

Almost in the same fashion, when oil prices start declining, they tend to continue declining for several months. In 2008, we saw oil prices on the rise for several months before a sudden collapse. Oil prices than stabilized around $55 for many months. Some of the currencies that react strongly to oil price changes are British Pound (GBP) and the Canadian Dollar (CAD). Lets focus on USD/CAD currency pair in our example.

United States imports more oil from Canada that any other country. The value of CAD should increase with increase in oil prices in relationship to USD. With the increase in oil prices, this means that the pair USD/CAD should start trending downward. This is an example of a trend trading strategy.

Do you watch CNBC daily? You should watch for times when the oil prices are rising and the exchange rate USD/CAD is decreasing. Similarly, on CNBC look for times when oil prices decline and the exchange rate USD/CAD increases.

Use CCI (Commodity Channel Index) to trigger your trade. Watch for the 14 period CCI to cross above 100 and then cross back below 100. This tells you that the buyers have made a temporary upward push on the currency pair USD/CAD but was not able to turn the trend around.

Enter the trade. Set a limit order of 300 pips and a stop loss order of 75 pips. Go short on USD and long on CAD. This setup gives you a risk to reward ratio of 1:4. This risk to reward is very good and it allows you to be wrong a few times but without ruining your chances of being profitable. 300 pips mean $3000 profit and 75 pips means $750 loss if the trade goes against what you anticipated. Usually such a trade will continue for a month.

You can also look to trade the USD/CAD pair in the opposite direction if the oil prices start to decline. However, prolonged downtrend in the oil prices is usually unlikely. This trading strategy just depends on knowing which way the oil prices are moving right now so that you can take advantage of it. Oil prices have again started to climb and reached above $68. You can take advantage of the rising oil prices by trading USD/CAD pair as described above. - 23210

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.

Day Trading Secrets From The Pros - How To Make Money In The Markets

By Grant Dougan

Becoming a day trader is becoming an increasingly hot way for people to make money. There are individuals who treat it as a full time occupation while others treat it as a way to make some extra cash. With its remarkable profit potential and the charge it provides, it's not surprising more people are taking advantage of day trading.

Naturally you can't merely jump in and make giant cash without knowing the markets! You require to have a certain level of education when you start so that you can make the most of your cash.

Naturall, purchasing shares at a low cost and unloading when the price is high is the way to make cash in the markets. So how does anyone know when to jump into in a certain stock?

Employ these key day trading tips to maximize your income possibilities:

Read the news and stay on top of the markets. You'll want to keep aware of happenings in the markets, like mergers, takeovers, and financial reports for major companies. You want to have a good overview of the happenings in the markets.

Don't spend time on shares with small volatility. With day trading day trading, cash is made by buying and unloading shares that are subject to frequent price movements. When day trading you are dealing stocks every day so you must be invested in stocks with daily price variations.

Improve your mathematical analysis skills. You'll want to be capable of analyzing financial data at a glance. You won't need to be a mathematical wizard, but you need to interpret what the financial data mean in order to make fast, dead-on judgments.

Learn how to have plenty of nerves and patience. The people who make the most money are able to maintain their emotions at any point in time. Whether someone is overly pumped up about a sizeable win, or profoundly self-defeated about a loss, either of these emotions can impede your ability to remain focused, take wise actions, and keep a clear mind.

You might not become well off right away, but these strategies are going to place you on the route to making great cash with day trading. There is a great deal of cash to be gained with day trading and with a touch of work, you will be profiting from this exhilarating opportunity. - 23210

About the Author:

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The Purpose of a Good Real Estate Agent

By Melisa Dominguez

A professional whose job is to connect people who sell property to people who are interested in purchasing a piece of real estate is real estate. In addition to real estate sales, many developers will also deal with rental properties. In exchange for their services, receive a commission of real estate at the end of each sale or lease is completed.

The one thing you should know when you are dealing with a realtor is that when the real estate in question is being sold, the only person who has to worry about paying the realtors commission is the person who is selling the property. If you are using the realtor to arrange for a rental, the realtor will request that both parties pay the commission.

Most owners believe that the services of a real estate agent is money well spent. The first advantage of listing your home with an estate agent is to be listed quickly. A good real estate agent can get a list of your house on the market faster than you can ever.

The speed of the list is just one of the advantages of using an estate agent. Estate agents have a range of networks and resources, which can be obtained when trying to sell your home yourself. Most real estate companies have websites that allow them to advertise your home to more potential buyers.

Most home owners find that even considering the commission the real estate agent collects after the house sells is justified. After all, homes that are listed with a real estate agent usually sell for several thousand dollars more than homes that were sold privately by the home owner.

When you are trying to find a real estate agent to sell your house, you should spend some time observing how they handle their clients that are looking to purchase or rent. You will know that you are dealing with a truly professional real estate agent when the agent really listens to what their client is telling them, what things they will need and directs them to the properties that suit the needs of their client, even if the property is listed with another real estate agent. A truly professional real estate agent understands that the recommendation of a truly happy client is worth just as much as a sales commission. - 23210

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Simple Ways to Jump Start Your Savings

By Dennis Snyder

With all the news concerning the down turn in the economy it is pretty easy to get discouraged when it comes to saving money. And with discouragement comes a lack of doing anything. Whatever you do do not let the media dictate whether or not you will start your savings. You can get control of your money.

Most financial people tell us that we need to have 3 to 6 months of living expenses in an emergency fund and I would whole heartily agree with them and in fact I have raised my belief that now is a time to have at least 8 months worth socked aside. Unfortunately, if you are not independently wealthy, even a couple of thousand in an emergency fund is not to impossible let alone 3 to 8 months of living expenses. However, rest assured that the situation is not hopeless and never has been hopeless. Let me give you a few simple ways to jump start your savings account.

The first step to jump start your savings is actually the most important. Get started! That is right you have to start in order to succeed at it. Open that savings account, set up that money market or get out your piggy bank but do get started. Even a little bit every month is better than none.

Another simple way to start your savings is to pay yourself first. This is so easy once you get past the initial shock of not having those extra dollars in your pocket. Rest assured that it does not take long and you will never miss them taking it out or you putting it in however you go about it.

Next make sure you keep a watch on what you spend throughout the day. You will most likely be amazed at how much you waste on this candy bar or that soda pop. Why not drink water from the tap instead of bottled water. Once you begin to eliminate all the fancy extras make sure that you put the savings into your savings account.

You can also jump start your savings by cutting out coupons or going online and finding coupons for your groceries and other household stuff. You most likely already have an allowance to buy these things so just figure out how much you are saving by using the coupons and stick this extra money away.

Men, empty the change from your pockets every night into a special container. Ladies, clean out your purse of the change laying around in it every couple of days and put it into that special container. Not only will that build up your savings but ladies your bag will not be so heavy and men no boatload of pennies and nickles jangling. This can add up to $10 to $20 every month or $120 to $240 every year. I know not much but combine that with the other tips above and it adds up to a sizable amount.

Every little bit helps. The key is to start your savings today and don't wait. No sense talking about it and not doing it get started today, don't delay your financial freedom is worth the effort. You will be glad yo did when that financial emergency hits and it will they always do. But when you have some money socked away for it they seem to come less often. - 23210

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Day Trading Penny Stocks - Here's How People Make Money

By Sam Lockwood

Penny stocks have been around for a long time - they've been part of American investment strategies since the 19th century. That's where these stocks were named, since the modern penny stock actually costs somewhere between a dime and five dollars, not a penny. Let's have a look at the risks you incur by investing in these stocks, as well as the ways they can help investors profit.

Penny stocks are share offerings to investors made by companies either too new or too small to be listed in major stock exchange listings. There's a big potential for growth for relatively small investments initially, but pump and dump schemes are a real risk in this area. Just like anything else that has to do with the OTC (over-the-counter) market, buyers should remember to beware.

Buying penny stocks reasonably means that you need to get the company's business model independently appraised. Just like when you buy shares of any other company that's being publicly traded, you must understand the company business model, what the company does or makes, who their competition is, and what they have to offer.

One of the things that makes penny stocks so appealing is the fact that most of the businesses offering them are extremely simple. One typical kind of penny stock is a mining company that profits only when the price of the material it extracts goes above a certain level. There are also some oil exploration stocks that are valued in the same way.

Penny stocks are rated as a high risk vehicle by the Securities and Exchange commission. Some of the risks you'll encounter when dealing with these stocks include incomplete and indirect financial reporting, limited liquidity and even complete fraud. People who are playing with a day trading strategy will find that sudden demands for penny stock creates enormous volatility. Penny stocks are hard to short sell for this reason.

The financial reporting guidelines on penny stocks are actually pretty loose. Unlike the national exchanges, not much is required of companies that list this way - in fact, sometimes these stocks will just de list for a few days! In the investment type called Pink Sheets, penny stocks have nearly no regulatory requirements at all, including few to no minimum accounting standards or reporting guidelines.

Because there are no generally accepted standards or standardization for penny stocks, they're an area that's extremely vulnerable to fraud and manipulation. People can pose as independent observers, then run up the price of penny stocks. All they have to do then is de list it, leaving buyer with nothing in what's classically called a pump and dump scheme.

Now, that doesn't mean you should be scared off of these stocks entirely. There are lots of real, legitimate start up companies, and they have to get going somewhere. Anyone who can pick a winner will get a handsome reward.

If you're someone who can spot companies that have a lot of promise, you could end up with a big payback. Even if you lose on eighty percent of your picks, the twenty-five percent that do work out, will be enough to make up for the rest. - 23210

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