Gold Investment Fundamentals and the Transfer of Capital

By Chris Vermeulen

The Secular Bull Market in Gold Investments corresponds directly to the Secular Bear Market in Financials. We explain why this trend will continue and why a short-term buying opportunity in Gold presents itself.

Central Banks are in all sorts of a pickle.

With overwhelming evidence that the global economy is slumping badly:
* UK Retail Sales see Worst Slump in 20 Years
* Business confidence in Germany is at lowest level in 2 years
* New Zealand’’s central bank cutting interest rates saying slowing economic growth will curb inflation.
* Japanese exports decreasing YoY, and imports climbing on record Oil prices.
* US unemployment at 4-year highs

The knee jerk reaction by central banks is to man the printing presses and hit the accelerator. And whilst this medicine has worked well over the last 25 years, Central Banks are now hitting a brick wall that they havent encountered since pre-Keynesian 1930s.
Freshly minted fiat currency is falling into the hands of a crippled banking sector with little capital, ability or desire to carry out the multiplier effect and make loans to real people in the real economy. In a debt laden global economy with no reverse gear this headwind is possibly the biggest threat the Federal Reserve and its ilk aka the establishment have ever faced in carrying out monetary policy

Point #1 Gold investors are well aware of the risks inherent in the current financial system.

The beauty of capitalism and the associated free movement of capital is that smaller more focused entities aka Hedge & Private Equity funds can and are rapidly moving into long held banking preserves.
* Direct lending to mid and small cap entities is now a well worn hedge fund territory.
* Extracting value through Shareholder activism.
* A much larger pool of capital available for short selling.
* Private Equity funds increase investment time horizons.
Highly secretive and operating out of non-transparent domiciles these entities are by and large out of the reach of the central banking system.

Point #2 Hedge Funds and Private Equity Funds do not benefit from Fed handouts and would be better served by a currency that acts as a stable store of wealth: Gold!

The transfer of the financial system is akin to the explosion of information on the internet. The players that used to have a monopoly on information become less effective. There will be winners and there will be losers. But right now a bet on Gold Investments like Gold Stocks and Gold ETFs is a bet against the Establishment and the out-dated mega-banking system.
Slower growth will continue to cause problems for financials as bad debts soar, and as a result Gold investments will continue to propel higher in its multi-year Secular trend.

Short-Term Opportunity

The above trend stretched too far technically over the last 3-months and there has had a rapid reversal over the last 2 weeks. This is a technical pullback only and the above fundamentals have not changed. Theres more to come in this fundamental story and Gold investments (we use GLD gold Exchange Traded Fund) and we could be getting close to another buying point for gold soon

Gold Investment GLD Fund Prices - $85 is strong support as a confluence of lateral support and the 50-week Moving Average converge. Its just a matter of time before we have another entry point to add to our positions and or make another profitable gold investment.

About The Author

Chris Vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information. http://www.TheGoldAndOilGuy.com

Forex Currency Trading For Beginners

By Bart Icles

Are you interested in beginning a career in the forex currency trading industry? If so, there is a lot of information to be found on the internet about to help beginners get their bearings on this type of trading. This information is provided both free of charge and paid subscription. The first thing that you need to familiarize yourself with is what trading the forex is actually all about.

The forex currency trading market is one of the biggest financial markets in the world. Not even the stock market can measure up to the forex market. If you add the stock and the futures market together, the forex market will still be bigger and have more money traded across its platforms every single day.

Back in the day, the market was only open to those individuals who had a lot of money, a lot meaning millions. Today the market has opened to even the little guy due to the large amount of online trading companies opening their doors every day.

The forex market is made up of millions of individuals how are buying and selling different currencies. Every time someone trades, they are buying one form of currency and selling another type of currency. The major players in clued the US dollar and the Canadian dollar, the Euro and the US dollar, the US dollar and the yen, and the US dollar and the Australian dollar.

There are countless advantages of trading in the forex market as compared to other financial markets. The transactions are super fast and can occur any time of the day. You can also be assured that there will always be people ready to trade with you at any hour.

Another great advantage of trading currency is leverage. You can pretty much leverage about 200:1 in this market. With very little cash on hand, you can manage a large amount of currency. This is the number one reason why this market is quite attractive to individuals who want to increase their earnings quickly.

If you think that this is a get rich quick scheme, you are completely wrong. People can and do lose a lot of money in the forex market. Those who do enter the market with little or know knowledge or they act on impulse trying to get rich instantly. If you do not take the time to educate yourself and trade off of knowledge instead of emotion, you could be in danger of losing everything that you put into your account.

Begin preparing yourself now with the best forex trading courses and developing a great strategy to help guide your way through the market.

About The Author

Bart Icles is an expert Forex trader. He has developed a strong Forex trading strategy that he uses to successful trade the forex market on a regular basis. Visit http://www.forexstrategysecrets.com for more information today.

Junior Gold Stocks Benefit from Stabilizing Equity Markets

By Chris Vermeulen

Junior gold stocks may finaly make a move. The New York Stock Exchange indicator for new lows reached an extreme of 1304 on Tuesday the 15th of July. That was even worse than the 1100 new lows reached on the 22nd of January. Such extremes spell one thing P-A-N-I-C.

Whilst its difficult to infer any far reaching conclusions about one day sell-offs, even panics, the odds now favour a bounce in very oversold equity markets. As for how high and how long the stock market will bounce is anyones guess, but here again, probabilities favour the market to move higher and longer than anyone expects so that sentiment indicators return to their old complacent Bullish state!

What will work during this period of relative calm?

We had noticed a very definite flight to safety since market volatility began in October 2007.

Firstly, a flight away from common Dow stocks to Gold Mining Stocks because gold is seen as world wide currency which is more secure that worthless paper money. The Dow stocks have slowly been decreasing in value for the past year as gold mining stocks have been increasing in value overall. Gold stocks is were the smart money is moving into.

Within the Gold market this has manifested itself as a flight to bullion and away from Gold Mining Stocks. Yes money had been moving gold stocks higher but the majority of gold investors are buying bullion or the gold bullion etf (actual gold bars) because it currently has lower risk than trading gold mining stocks. So gold bullion and the gold bullion etf’’s have been out performing the price of gold mining stocks for the past year even thought both Gold and gold stocks have increased in value.

Now that there is a good chance equity markets will stabilize, the trends will moderate and reverse. This means Junior Gold stocks prices should begin closing the valuation gap and discounting higher earnings based on $900+ Gold.

The remainder of 2008 looks set to be very bullish for Gold Stocks and Gold Stock Juniors Gold Stocks in particular! August to December are the best months for gold for the past 40 years so we are looking for higher prices in the near future.

Many investors do not like the thought of junior gold stocks because of their volatility. There is a solution for this and it is to trade gold etf funds. The are exchange traded funds which trade like a stock but allows your to own a piece of each gold mining company and it provides less volatility. The two main etfs are GLD and GDX ticker symbols.

Junior gold stocks,Gold Mining Stocks and More commentary to follow….

About The Author

Chris Vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information. http://www.TheGoldAndOilGuy.com

Foreign Exchange Market is Different from the Stock Market

By Marc Carson

The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970′’s. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.

The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The

What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.

The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.

The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.

The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.

About The Author

Go to http://doubleyourtrades.com for a killer solution to beat the Markets!

Beginners Beware, Trading The Forex Market Takes Skill

By Bart Icles

If you are a trader of some sort, you probably realize how quickly the foreign exchange market has grown in the last ten years. It has truly grown into a large business and has millions of daily traders each day. The reason for this is because any new currency trader has the potential to make a huge profit in a relatively short amount of time.

What most people don”t realize, especially those wanting to enter the market for the first time, is that new traders don”t understand the market and dive in without knowing what they are doing. This causes them to lose a lot of money at the start ultimately forcing them out of the market forever. Only about ten percent of forex traders make it big, so if you want to be on of those ten percent, you need to take these steps to heart and do them!

- One of the most important things you can do in the beginning is finding a good broker who has an amazing trading platform. You should seek out a broker that has a demo account available for you to practice with and use fake money in real situations so you can get a hang of things before you start using your real money.

- You must, and I stress must, have a trading strategy! A lot of traders just try to guess what is going to happen in the forex market and fall flat on their faces. If you have a game plan for every situation, you will always make money on every trade and succeed where others fail.

- You must be a student of current events that are happening around the world. Things happen all of the time around the world that affects the price of a certain currency. This will help you make sure that you don”t make any poor decisions that you will regret in the long run. Remember, have a plan and stick to it!

- There is a lot of software and trading courses that can be found on the internet. Find a good one through research and trial and error. There are also a lot of free information about trading the forex market online. You just need something that will help you learn how to analyze the market and how to trade it.

If you can learn to trade the forex market and control your emotions while you trade, you will be able to make money through this exciting investment opportunity.

About The Author

Bart Icles is an expert Forex trader. He has developed a strong Forex trading strategy that he uses to successful trade the forex market on a regular basis. Visit http://www.forexstrategysecrets.com for more information today.

Evaluating Your Trading Performance And Progress

By Terry Leslie

The most obvious sign of performance and progress is a healthy account balance, provided that you are not drawing excessive funds from your bank account to keep your trading balance in check. It is human nature to want to look at healthy figures when you log in, but if all you are doing is pulling from one source to keep another afloat, it can be difficult to determine just how well you are actually doing. In some cases, it can be self deluding.

In order to accurately determine how you are handling the trading world, you need to fund your account and allow it to be self sufficient. If you are continuously dropping more money into it, you are liable to lose track of how much you have invested, how much you have lost, and how much you have gained. If you start an account with $20,000 and you find two months later you are barely scraping by on $5,000 then you have an accurate picture of two things.

First, you need to reevaluate your trading strategy and the information which you are basing you trades on. Second, it shows you very clearly exactly how much money you have lost. The same is true in reverse. If your account balance is down to $10,000 but you have $20,000 out there working for you, then obviously you are doing something right. This simple concept is an at a glance fix. You need to know how to evaluate your win loss ratio.

Honestly evaluating your performance and progress is a hard thing to accomplish without at least a little input from a concrete source. We all want to be successful in any venture we tackle. We often tend to put a mistake out of our mind, after all it was just a little one. Actually, there may have been five or six little ones that we aren”t counting. Using a figure to reflect your performance is concrete and irrefutable. There is no way to misinterpret your numbers game.

So, what if you are doing poorly and your numbers aren”t reflecting anything positive. Should you quit and go back to your day job? Naturally, this is an option but probably not one that will get you where you want to go. You put in money that you could afford to lose. After all, you are just learning. So instead of getting frustrated and quitting so early in the game, back up and start fresh. Really determine your goals, your strategies, and go get a little more education. Read more, conceptualize more, and make a few more empty trades and see how they might play out.

So, what if you”re doing really well? Should you increase your risk tolerance and start playing bigger and better? That is an option. However, this option may not get you where you want to go, either. When you are doing really well, that often tells you that you are doing something right. While risk is part of the game, increasing your risk tolerance too early and by too much might turn your game around, which isn”t something that you want.

Understand your win loss ratio. That means you need to know how many dollars you win for every one that you lose. This can only be done well and accurately via concrete information, which what your account balance reflects. Know that when you make a trade that you are going to write down the details, including the set up, the plan you executed, your emotional play, and your level of confidence, how much you executed in real time, not commissions and fees, and the final result.

Some traders leave an addendum space at the end to make a note about what they would do differently. Concrete monitoring is the only form of monitoring that doesn”t allow room for self inflated expectations, harsh judgment or yourself, of any type of mind trickery. This one action can mean the difference between scraping it off the bottom and bouncing back and blowing out your account.

About The Author

If you would like to immensely improve your trading and investing results, check out http://www.Secrets2Trading.com.
AND you will receive a limited FREE copy of the amazing book “Trading In The Zone” which is packed with trading ideas to instantly improve your trading and investing performance.

Forex Training - Lots of Sources Available

By John Howard

The currency trading market is fast finding an increasing number of takers these days. Gone are the days when only large multinational corporations and financial institutions used to trade in the forex market. These days an increasing number of individuals are too trading in this vast market. It is always preferable that you begin trading in this market only after proper forex training. A good training program would help you get acquainted with all the intricacies as well as the terminologies of this business.

Forex training is also important since there is a lot at stake in the form of money when it comes to currency trading. Without proper training there is always a chance of you losing significant amounts of money. There are various sources available these days when it comes to learning about the forex market. Hopping online is perhaps the easiest way to locate these sources. There are numerous websites that offer training on foreign exchange. A simple online search can put you across many of them. While some of them may offer basic training programs, there are others which could be offering long term courses on the subject. You can usually find the websites having short term basic training programs, offering such courses free of cost.

You can also find forex training being offered at a local college campus near you. There are many colleges that offer training programs on the subject. One great advantage that studying in such a college over learning online is that here you get to learn the subject more thoroughly. These courses also include hands on experience with the various aspects of training. Such practical training helps in grasping the nuances of trading that much more quickly, as well as easily. You also get to clarify any of your queries and doubts with the classroom instructors then and there in this case, which is not always a possibility when you learn online.

You can also find many useful books on forex training at your local library. These books would perfectly compliment whatever you are learning either online or at a college campus. Interacting with experienced forex traders is another way to get oneself trained in the intricacies of currency trading. Experienced traders can provide you with practical inputs in the various tricks of the trade. With so many sources available for learning forex trading, finding one best suited to your needs won”t be a difficult task. Remember, proper training can mean the difference between success and failure in this highly dynamic and yet at the same time, lucrative market.

About The Author

To get your complimentary course, or for my personal advice, visit http://www.forex-trading-platform.org

Where Can You Learn Forex Trading

By John Howard

An increasing number of people seem to be drawn towards forex trading these days. Although a lucrative place to make money, the forex market, may be difficult to understand for those who are just about starting out as traders. It is therefore important that you get to learn forex trading basics before dabble in actual trading. One of the reasons why forex trading is complicated is because there are various sectors involved. You can find financial institutions, individuals” banks and even governments being involved in the currency trading market. Some of the terminology may also be difficult to understand for beginners. Fortunately though these days there are many sources from where one can get to learn about currency trading.

The complexity of the forex market stems from the fact that this is the largest market in the world. Adding to this is the fact that there are literally hundreds of currencies that are being traded in this market. Trillions of dollars are traded each day as part of this huge market. All this may add to the confusion of beginners and this is reason enough to get well equipped with the requisite knowledge of forex trading. One good way to get a hang of the market would be start off with smaller accounts. This way beginners can get themselves acquainted with the market, while at the same time not worrying about incurring significant financial loses. Interacting with experienced traders is another way to learn forex trading.

If you are someone who wants to learn forex trading, the best source to do so from would be numerous online forex trading learning resources. A simple online search can put you across literally hundreds of websites from where you can get to learn about the intricacies of forex trading. In fact the advent of the internet has been primarily responsible for an increasing number of people taking up forex trading in the first place.

There are numerous online tutorials which can help you learn forex trading. While some of them may teach you only the basics, there are others which conduct long term courses on forex trading. Most of the online tutorials that conduct short term basic programs are known to offer their training programs free of cost too. You can also find many professional firms already dealing in forex trading offering training programs on the subject. Success in forex trading is ultimately dependent on your capacity to assimilate relevant information and proper implementation of whatever you have learnt.

About The Author

To get your complimentary course, or for my personal advice, visit http://www.forex-trading-platform.org

Why Has Forex Trading Become So Popular?

By James Woolley

Forex trading has become extremely popular in recent years, thanks in so small part to the internet. Forex trading used to be conducted mainly by large banks but now many private traders can trade the markets using their own money. So why is forex trading so popular?

Well the main reason people are drawn to forex trading is because of the potential money that can be made. If you consistently win money from trading and increase your stakes as you go along, then your earning potential is unlimited. This is made easier by the fact that you can use leverage to trade. In other words you don”t necessarily need a lot of capital to trade large positions because if a broker offers you 1:200 leverage, then you only need $500 to trade a position worth $100,000.

Of course if it was that easy to make money then we would all be millionaires, but the point is that it is possible to make a lot of money if you have a good strategy. It certainly beats traditional share dealing where you need to put up all the money if you want to buy shares in a company, and so the potential rewards are a lot smaller.

Another positive feature of forex trading is that the markets are open 24 hours a week during the working week so you can therefore still trade the markets even if you have a full-time job during the day. Liquidity isn”t an issue either because even if you take a large position during the middle of the night, for example, you should have no problems getting filled as the currency markets are heavily traded all around the world and at all times of the day.

Another reason why many people are being drawn to forex trading is that there are now a lot of forex brokers advertising online. It is very easy to open an account and in a lot of cases you can start trading soon afterwards. Most brokers now offer a solid trading platform as well as useful extras such as free charting software to help you make trading decisions, and a free demo account so you can practice with pretend money before trading for real.

Indeed it is the fact that forex currency pairs conform extremely well to technical analysis that makes forex trading so popular. People all over the world are analysing charts and spotting the same trading patterns so it becomes a sort of self-fulfilling prophecy where the same trading patterns happen over and over again.

So overall it’’s easy to see the appeal of forex trading. There is potentially a lot of money to be made, and the great thing is that you don”t necessarily need a lot of money to start off with. The use of leverage means your profits can multiply very quickly, but conversely you can also lose money quickly as well, so it’’s important that you adopt a solid trading strategy if you want to become a successful trader.

About The Author

Click on the following link for more forex tips and strategies:

http://theforexarticles.com

Emotional Highs and Lows and Clear, Calm Trading Strategies

By Terry Leslie

We are all human and we all carry a wide range of emotions. From positive to negative, emotional aspects of our day are inevitably going to creep into our ability to make clear and calm rational trading decisions.

Negative emotions are often the greatest culprit of your clear and calm trading days. Many of us play victim to our emotions and allow them to lead us around like dogs on leashes. Of course, this doesn”t have to be the case, but few of us are well equipped to learn how to “select” a better emotion. These negative emotions can feel like traps, weighing you down and absorbing your energy, which you truly need in order to execute a successful day. So what are you supposed to do?

Positive emotions, as well, can lead us to cloudy decisions. It is not as obvious as the threat the negative emotions hold on us, but positive emotions can lead to euphoric emotions, causing a boost of confidence that might entice you to take risks you normally wouldn”t. When a person first falls in love, they drive faster. In recent studies completed at Brown and University of Maryland, euphoric emotions have been proven to increase risk taking behaviors, like driving faster or not wearing a seat belt. In the land of day trading, this is about as dangerous as making financial decisions from under a cloud of depression.

The most common feeling of a new trader is panic. For some seasoned traders, panic has become a near constant companion. Panicking and trading really don”t go together well and often the two collide with disastrous results. When you are panicked stricken you simply are incapable of making completely rational and objective decisions. Panic leads to impulsive trades and obsessive behavior. Panic usually occurs because either the trader has placed too much stock in one single trade or he or she has over extended and needs some pretty large gains in order to be financially okay.

Never, ever place more money on a trade or a combination of trades that stands to wipe you out. Atlantic City and Las Vegas are for gambling, trading is for methodical and strategic planning and investing. There is a huge difference. Unfortunately many new investors do not completely make the distinction and thus end up in a state of sheer panic as they watch the mortgage, their kids” education, and their retirement tumble down the ticker.

Panic trading often happens as a result of using your emotional compass as a guideline for a period of time. When your emotional compass is permitted to enter the picture, you start making decisions based on something that is no longer concrete. Your emotions are not able to be tracked out on a ticker tape and nobody can determine what is going to happen to you emotionally in the next three hours, let alone the next three weeks. When you make trades based on trackable information, you make sound trades. When you makes trades based on emotional up hills and down hills you make mistakes and hopeful executions.

That doesn”t mean that there haven”t been plenty of near misses or some really good luck that has blown in the direction of a few desperate traders. But these stories are not the norm.

Maintaining a level head and executing clean and objective trades starts with remaining focused on a picture larger than today, tomorrow, next week, or even next month. Even when the winds of good fortune don”t blow your way, you can recover given some time and some calm and focused trading. When the winds of good fortune come at you like a hurricane, you still need to remain calm, focused, and steady in order to prevent over extending your account based on a good streak. Sooner or later the winds will shift, and emotional trades, whether from a positive or negative emotion, are not sound trades.

About The Author

If you would like to immensely improve your trading and investing results, check out http://www.Secrets2Trading.com.
AND you will receive a limited FREE copy of the amazing book “Trading In The Zone” which is packed with trading ideas to instantly improve your trading and investing performance.