Archive for October, 2010

The Results Are In - How Many People Really Make Money From Forex Trading?

By James Woolley

It has long been argued by people within the currency trading industry that around 95% of traders who attempt to trade the forex markets will ultimately end up losing money. However new figures that have just been released from the actual forex brokers themselves suggest that this is not actually the case. In fact they all have a lot more profitable traders on their books than this.

Oanda, one of the largest brokers, claim that 51% of their customer accounts generated a profit in the previous quarter, which is obviously a lot higher than the much quoted 5% that is often bandied about. This result isn”t necessarily the norm, however, because the average figure from the rest of the brokers is around the 20-30% mark.

Even so, these findings suggest that there are a lot more people making money from forex trading than we previously thought. If you go to the various trading forums online, they are full of newbies and people who have lost money in the past. However behind the scenes there are clearly many traders who are quietly making a very handsome living from forex trading, and in all probability they are likely to be far too busy making money than wasting their time on these forums.

Nevertheless it should still be pointed out that it is still generally true that most people do end up losing money. If these figures are accurate then on average 70-80% of traders lose money, which is obviously the vast majority of people.

So if you are serious about joining the profitable 20-30% of people, you need to separate yourself from the majority. To do this you not only need to develop your own profitable trading strategy, but you also need to have a great deal of discipline in order to ensure that you don”t deviate from this strategy and start placing reckless trades.

Anyway the point I want to get across in this article is that there is now every reason to get excited about forex trading, because there are a lot of people out there who are clearly making good profits, many more than we previously thought. I myself am in this group of profitable traders, and I know several of my blog readers and subscribers are too, so there is no reason whatsoever why anybody cannot join this 20-30% group of traders who are generating consistent profits from currency trading.

About The Author

Click on the following link for more forex tips and strategies and to discover the exact 4 hour trading system that James Woolley uses to trade the markets:

http://theforexarticles.com

Krugerrand Gold Coin Prices

By Buzz Scott

Krugerrand is a South African Gold Coin that was produced in 1967. The prices for the gold coins are cheaper than the price of regular gold.

The best way to determine the price of the gold Krugerrand is to compare them to the internationally priced regular gold. The Krugerrand coins come in a couple of different amounts of regular gold from 1 oz, 1/2 oz, 1/4 oz, or 1/10 oz.

Krugerrand gold coins became popular because of their durability. The coins contain gold and copper. The copper is used to make the coins harder and keep them from scratching and denting. This is important because the value of gold is different when it is damaged.

The Krugerrand are easily sold no matter what price they are selling at. This gold is easy to move and easily recognized on a national scale.

The biggest asset to Krugerrand gold coins is them being cost effective to the owners of it. Because the gold has been minted, it does not have to be melted down and can be carried in its natural state.

Here are the prices for Krugerrand gold coins at 1oz:

1-25 oz=$1,400.32 + $27-$65 for shipping
26-49 oz=$1,393.42 + $65-$99 for shipping
50 + oz=$1,386.52 + Free shipping

As you can see the more Krugerrand gold coins, you buy the cheaper the price. This is another reason they are so easy to sell on a mass basis. The prices for Krugerrand tend the change with the price of regular gold. Be sure and check the price history to get the most accurate pricing at the time you are selling or buying.

Overall, the price of Krugerrand gold coins is a lot cheaper than the price for regular gold. That paired with its durability makes the gold coins internationally known and bought by other countries.

About The Author

Buzz Scott specializes in gold investing. Buzz is the author many related articles and teaches how to find quality Krugerrand gold coin investments. Visit his site at: http://krugerrandprice.org/

An Important Point To Consider When Buying Books On Forex Trading

By James Woolley

With the forex industry booming at the moment, it is no surprise that there are lots of books available on this very subject. However it’’s important to note that these books are only useful to a certain extent.

The truth is that no books can prepare you for the wide range of emotions that you will experience when you start trading for real, ie when you are risking your own money. Anyone can enter and exit positions at will and make lots of profits on a demo account, but this is not what it’’s like in reality.

To demonstrate this point, let me give you one scenario that will often occur at some point. Let’’s say you have found what looks like a decent system and have just generated a profit from the last five trades. Now the seasoned professional will keep trading the system as normal, but many traders will be so thrilled with their success that they will start to become greedy and overconfident. Therefore they may well up their stakes and start shooting for the stars. Unfortunately this often leads to disaster and many people will destroy their capital doing this.

The reverse is also true when you start losing money regularly. It doesn”t matter if you lose money using a demo account, but it can be completely sole destroying when you lose your own hard-earned money. The trouble is that many people hate losing money so much that they will try to win it back straight away, and to do this they will often up their stakes and start placing reckless trades using no kind of strategy other than gut instinct. As you can imagine, this nearly always ends in disaster as well.

You have to be really disciplined if you want to become a profitable forex trader, and to be fair a lot of books will make this point. However no matter how many times you read about the importance of discipline, it is only when you are actively trading the markets that you will realize how difficult it is to exercise this amount of discipline at all times.

So what I am basically saying is that forex books are great for teaching you the basics of currency trading, but they will never be able to demonstrate the depth of feelings that you will experience when you start trading with real money. There are some things that you will need to learn yourself, including how to maintain discipline when you trade, and you can only do this when you start putting your own money at risk.

About The Author

Click on the following link for more forex tips and strategies and to discover the exact 4 hour trading system that James Woolley uses to trade the markets:

http://theforexarticles.com

Pakistan\’s Gold Rates

By Buzz Scott

Gold is known for its value not only in making jewelry but also is its monetary value. In Pakistan the rate if gold is priceless for their personal use. There is not a ceremony that is done without the use of gold.

The jewelry that the women wear in Pakistan serves more the purpose of beauty it is also an investment. Pakistan’’s has had a tremendous increase in the rate of their gold over the years. Producing some of the most popular gold jewelry has helped its gold industry.

The gold trade in Pakistan depends solely on the imported gold that comes from Dubai. Pakistan is also the home of one of the most prosperous mines in Pakistan. The Saindak mine holds such a large scale of gold and other metals that Pakistan cannot afford to recover it. The cost of recovering gold from his mine is almost double the international cost per ounce. These factors have all lead to the increase in the demand for gold in Pakistan.

In spite of economic sanctions for gold that Pakistan experienced, their demand, for gold was not affected primarily due to traditional belief that this is feasible to investment in gold. Therefore, they still pay top rates for the import of gold from other countries. Many countries increase their rate because of Pakistan’’s demand. Pakistan continues to pay these inflated prices because they feel that the long-term investment is worth the current cost.

Pakistan sells a large amount of their jewelry created from the gold back to several other countries and makes back a large amount of what is spent on trade. As long as Pakistan continues to use gold as a primary staple and cannot afford to access the gold themselves they will continue to have gold imported. These factors will cause the rate of gold in Pakistan to continue to increase.

About The Author

Buzz Scott specializes in international gold investing. Buzz is the author many related articles and teaches how to invest in gold. He includes topics like gold rates in Pakistan. Visit his site at: http://www.goldratesinpakistan.com/

Gold Rate in India

By Buzz Scott

The market of pricing gold causes frustration for everyone. Even though gold has no industrial use the gold rate in India continues to rise.
How is this so? Gold is used to produce currency that can be used by for anything. The value of gold changes on a daily basis and has made as well as caused people lots of money.

According to the latest statistics, gold rate in India continues to rise daily. From August to the current date India’’s gold rate has gone from $1,165 to $1,135. This inflation in the rate of bold is due to the Fed getting involved. Investors would benefit from this because it would cause an economic growth spurt.

If you are, an American investor interested in trading of gold at the rate in India you will need to know how to compute the gold price into India’’s Rupee. One universal fact is that gold is always quoted in USD per Troy Ounce. India is an importer of gold so the prices in Indian Rupee come from the international prices with London Bullion Market. This causes the final price in Indian Rupee to be higher because it includes VAT, Freight, Sales Commission and other charges.

In order to calculate the international price of gold you can do it the easy way and just use an online calculator. If you want to do it firsthand, it is as follows:

1 Troy Ounce = 31.103477 gram,
Therefore, Price of in USD per 10 Grams
Presuming USD/INR rate of 45, price in INR per 10 Grams
Add Customs Duty @ Rs.200 per 10 Grams
Add VAT Ex Mumbai @ 1%
Price of Gold in INR per 10 grams

These calculations will not be the final price because of the freight charges other charges included. However, with the above figures you can keep up with the current gold rate in India.

About The Author

Buzz Scott specializes in international gold investing. Buzz is the author many related articles and teaches how to invest in gold. He includes topics like gold in India. Visit his site at: http://goldrateinindia.org/

How Does The Stock Market Work?

By Sally Johnston

You may have heard about stocks and shares from colleagues at work who have started investing money and seen great returns and you may now be wondering if it may be beneficial for you.

Before you rush into things here is some basic information on what the stock market is and how it functions and if you are seriously considering taking up trading then you might want to enrol on a stock market course to gain a deeper insight.

The first thing to understand about the stock market is that it isn”t just one individual market like the forex (foreign exchange) market but is split into different stock exchanges that are situated all over the world such as the LSE (London Stock Exchange), NYSE (New York Stock Exchange) and the Tokyo stock exchange.

Stock exchanges are not limited to countries either but can be made up of different countries within a certain geographical location such as the Euronext exchange which is based in Amsterdam but floats shares from companies in countries such as the UK, France, Portugal and Belgium.

Unlike the forex market which is limited to 20 currencies, the stock market has a large range of different international companies that float their stocks and shares on the various different exchanges, which makes it quite a challenge to choose the right company in which to invest in at the right time as there is so much choice available.

The way the stock market functions on a day to day level is actually quite easy. A company decides to go public and offers their shares to the public to buy. By buying a share or stock in the company, that investor owns a minimal percentage of the overall company. Once he decides to sell his shares he does so when the price is higher than when he paid for them, so in essence he buys the shares when they are at a low price and sells them off when they reach a higher price thereby making a profit.

In order to perform a trade you will need to choose a market broker who has the power to process trades as you cannot process them yourself. There is a small fee for this service but it is obligatory and you will also receive some expert knowledge and advice at the same time. It is also worth remembering that the stock market only functions from 9.30am to 4.00pm Monday to Friday and weekend trading does not take place.

If you are serious about trading you really should consider a stock market course to give you a more detailed insight. A stock market course can provide you with all the resources that you will need to start trading and also supply you with some important user experiences which are hard to find elsewhere.

About The Author

Learn about Traders University with Knowledge to Action-Learn more on their site www.knowledgetoaction.co.uk, via Greg Secker and Knowledge to Action on Twitter or on one of Greg Secker’’s specialist blogs.

Beginners Guide To Forex Trading

By Sally Johnston

With Christmas on its way and the UK economy uncertain whether it will have to suffer a double dip recession more and more people are looking for different ways of generating income. Some people may take on a second job, some may choose to gamble in order to make a quick profit and some people may look at trading on the foreign exchange market in order to raise some extra cash.

Forex trading is a great way of generating extra revenue but like gambling, there is a lot of risk involved if you don”t do your research properly. Forex which is made up of the words foreign and exchange is a trading market where different currencies are traded against each other.

Unlike the stock market which is broken up into various stock exchanges such as the NASDAQ and London Stock Exchange, the forex market operates within itself and generates up to 3 trillion dollars a day making it the largest trading platform in the world.

As with stock market trading, forex trading requires you to go through a stockbroker or market maker as they are sometimes referred to in order to carry out your trades and give you trading tips. A total of 20 currencies are traded on the market and in order to trade you must buy one form of currency and sell it off at a later stage when that particular currency is stronger than when you first bought it.

So say you bought 1000 dollars for approximately 600 pounds six months ago and you now wanted to sell your 1000 dollars. If market conditions have increased the value of the pound and it is strong against the dollar then you would want to sell your dollars for pounds again and make a small profit.

So for example if you happened to sell your 1000 dollars six months on then you could hypothetically receive about 650-700 pounds in return. This is an example of how forex trading works but generally more money is traded than that in order to make larger returns.

The above example would have to be completed by your broker or market maker in order to make the transactions happen but this can all be done through the internet meaning you don”t have to actually go and talk with your broker face to face. In order to know when the best time to sell a particular currency, you will have to monitor the forex market in real time from your computer, there are a range of charting applications available which will monitor the market and notify you of any potentially profitable situations that may arise.

If you want to start trading the best way to go about it is to download trading applications that offer free trials which in turn will allow you to trade with virtual money so that you don”t have to risk any of your own money. Then once you”re happy you know what you”re doing you can sign up for an account and start making real money.

About The Author

Learn about Traders University with Knowledge to Action-Learn more on their site www.knowledgetoaction.co.uk, via Greg Secker and Knowledge to Action on Twitter or on one of Greg Secker’’s specialist blogs.

Automated Currency Trading Pros: Why Utilize Automated Forex System Trading

By Karen Winton

More and more people are now engaging in the Forex currency trade. This is because as a Foreign Exchange trader, one has the chance to earn substantial cash. Aside from getting yourself educated in Forex as well as making use of FX trading strategies, one way of increasing your chance of profiting from trading with currencies is to rely on automated currency trading. Also known as automated Forex system trading, this is the process of using a software or a program that lets you make profitable trades on autopilot.

The following are some of the advantages of utilizing automated trading:

Advantage A: You need not gain expertise on the Forex currency trade market.

When you automate your trading, you have a better chance of making consistent profits even if you”re not a seasoned Foreign Exchange trader. You need not take training after training or take more than one FX tutorial class just so you can receive money from your trades. Through automated currency trading, you can just relax, sit back, and let the system do the work for you. In fact, automated Forex system trading can make your decisions for you - decisions that will, more often than not, bring you money from the positions you have opened or executed.

Advantage B: You”ll have more time to do other stuff.

Taking part in the Forex currency trade with the use of an automated system also enables you to engage in other activities. You need not stay awake for 24 hours or glue your eyes to the computer screen just to watch over the trends, market movements, and your currency-trades. An automated currency trading program, after all, will serve as your eyes and ears in the market. You can just let the software run while you do other activities such as spending time with your family, engaging in recreational activities e.g. sports, playing your game console, reading a novel, and so on. In other words, through automated Forex system trading, you can be a Foreign Exchange trader who still has a life beyond trading.

Advantage C: You never have to fear emotional trading.

Automated Forex currency trade also has this pro: there is no need to worry about trading with your emotions. A Forex Robot, or software, after all, does not have emotions, and is able to make objective decisions when it comes to FX trading. When you trade manually, on the other hand, there are times wherein you can”t help but make decisions based on your emotions, which, can lead to negative or losing results. Thus, automated Forex system trading can be considered a better method than manual currency-trading.

Because of the many pros of automated currency trading, there is no question why more and more traders prefer using Forex currency trade programs. Remember this very important fact: if you”re a Foreign Exchange trader who utilizes FX robots or automated trading programs, you”ll find the FX trade to be easier, and, you”ll have less difficulty in earning profit from your trades.

About The Author

Karen Winton recommends FX automated programs if you wish to profit consistently in FX. To ensure that you don”t pass up on winning FX trades, try: http://www.dp-db.com/ezforexhost. To earn a lot from Forex, use this: http://www.dp-db.com/trading-profit-booster.

Understanding Currency Option Trading

By EeLynn Lee

In the world of options trading there are a wide variety of possible underlying assets that the option can have. In many cases it is stock, but it can also be other assets. In the case of currency option trading, the underlying asset that an option is being purchased for is, as the name suggests, currency. Why would someone buy the option to buy money? Well, there are some very good reasons.

One of the biggest reasons to engage in currency option trading is the fact that the value of various world currencies changes all the time. The amount of money you can get in one country’’s currency in exchange for your own currency differs based on the current world financial situation. If you were to purchase some money from another country and the value of that money went up, you could then exchange the money you have for more than it cost you in the first place.

Currency option trading allows investors to speculate on what might happen to the currency of another country in a given time period. Let’’s say there is an election coming up in another nation. The currency in that nation is currently low, but if the right person wins that election, it could cause confidence to rise in that nation’’s economy, sending the value of their money higher.

As with other options, currency option trading allows an investor to purchase the right to buy currency at a set strike price at any time during the period that the option is open. Should the value of that currency rise, the investor can then make a profit. If it doesn”t rise as anticipated - perhaps someone else won the election - the investor can let that option expire and lose only the cost of the investment. Again, as with regular options, currency option trading also allows for the opposite type of transaction, where the investor purchases the right to sell the currency at the set strike price rather than buy.

Currency option trading requires a good grasp of world finance and also the economic climate in the nation whose currency you are purchasing on option for. Predicting what will happen with any type of currency is complicated, much as with other options predictions. There is potential for profit with currency option trading just as there is risk, which is true of any options trading no matter what the underlying asset.

About The Author

Get started in the world of option trading. Learn all option trading strategies - http://www.trading-option.info

Basics of Forex Option Trading

By EeLynn Lee

Forex option trading is a type of currency option trading that uses the Foreign Exchange Market, also known as Forex. In many ways, Forex option trading is the same as any other options trade, but there are a few simple differences.

Investors trading in Forex options have more choices for the type of trade they can use than with stock options or other types of options. The first type of Forex option trading is the same as any other option, and uses the call or put system. The buyer purchases the right to buy or sell the underlying asset, in this case foreign currency, at a set price, but has no obligation to do so. At this point, there is the first difference.

Forex option trading can use one of two methods: an American style option where the buyer can exercise his option at any time during the period up to the date of expiration, or a European style, where the buyer can exercise the option only at the time it expires. The American style offers more freedom to the buyer. These are the two Forex option trading options that are considered to be traditional trades.

There is another Forex option trading route investor can take known as Single Payment Options Trading, or SPOT. This type of trade is really very straightforward, but generally carries a higher premium amount that the traditional type of trade. The investor pays a premium and predicts that on a certain date, the exchange rate between two currencies will be at a certain amount. If, on the date in question, the prediction is right, then the profit is automatically paid out. The buyer does not need to exercise the option, it is done automatically. If the investor is wrong, then the premium paid is lost.

There are also some various other types of SPOT trades, including an opposite scenario in which the investor profits if the currency does not reach the agreed amount on that date. SPOT Forex option trading is popular because of its simplicity, but it does cost more and has less flexibility than traditional options.

Forex option trading provides investors with a variety of ways to make a profit, and as with all options, the only real risk is the loss of the premium. The different choices for Forex option trading make it both more interesting and a bit more complex than some other options, but it appeals to many investors for the possibility of quick payouts.

About The Author

Master the art of stock and option trading and profit from any market condition. Learn how to trade stock and options using the various option trading strategies - http://www.strategiesoptions.info