word: August 2006

Monday, August 21, 2006

forex #12

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~
When to LOOK for Trades in the Market That
Never Sleeps:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~~~

In his book 'All About The Foreign Exchange Market in the
United States' Sam Y. Cross says this about electronic
trading, "Quoted prices change as often as 20 times a
minute. It has been estimated that the world's most active
exchange rates can change up to 18,000 times during a single
day. There was a time when this price changed only once in
many years. The years became months, then days, then hours
and now seconds. These price movements have allowed traders
to go in and out of the market at a pace not possible just a
few years ago. Active modern day traders can go in and out
of the forex market 200 times in a single day and take a
small profit each time they perform these trades."

So, like a lot of people just being introduced to FOREX, the
question you're probably asking yourself right now is this:

IF THE MARKET NEVER SLEEPS (remember: the FOREX is basically
a continuous 24-hour open electronic-trading session) WHEN
SHOULD I BE AWAKE TO TRADE?

Good question.

First a little background for you, then our answer:

- 24 hour market - Sunday 5pm EST through Friday 4pm EST.
Rollover at 5pm EST
- Trading begins in New Zealand, followed by Australia,
Asia, the Middle East, Europe, and America

- The US & UK account for more than 50% of turnover
- Major markets: London, New York, Tokyo
- Trading activity is heaviest when major markets overlap
- Nearly two-thirds of NY activity occurs in the morning hours
while European markets are open.

================================
Select the market, select the
time, start trading:
================================

The foreign exchange "week" begins at 5am Sydney time on
Monday mornings. The foreign exchange trading day almost
never ceases except for short periods over weekends. At any
given time, somebody somewhere is buying and selling
currencies. As one market closes, another market opens.
Business hours overlap, and the exchange continues as day
becomes night and night becomes day.

So, the answer to the above questions is this: The massive
liquidity of FOREX, combined with a true 24-hour market
that's traded 5.5 days a week, offers you exceptional
independence and choices to trade FOREX when you want to,
not when the market wants you to. Trades actually develop
with relatively the same frequency, regardless of time. As
long as the FOREX is open, there is about the same chance
that you will find a trade, whenever your look (though some
times are SIGNIFICANTLY better than other times, and we
teach you why in the Rapid Forex materials)..

However, here's the rub...

During each trading day, overall FOREX *volume* (higher
volume = a greater chance of finding more trade
opportunities) is determined by what markets are open and
the times each of these markets OVERLAP one another.

With each passing second, minute and hour, FOREX volume
remains high, but peaks highest when the Asian market
(including Australia & New Zealand), the European market and the U.S.
market is open at the same time (actually only
two of the major markets can overlap at the same time).

Here's the Breakdown of OPEN Market Times (the times each
countries *exchange-traded* markets are open. Important
distinction here. Remember: exchange-traded instruments,
such as foreign exchange futures, stocks, bonds, etc. adhere
to the traditional exchange trading hours):

* New York Market trade times: 8am-4pm EST
* London Market trade times: 2am-12Noon EST
- Great Britain Market trade times: 3am-11am EST
* Tokyo Market trade times: 8pm-4am EST
- Australia Market trade times: 7pm-3am EST

* = Major Markets

=======================================================
Want to know what time it is in Tokyo when it's 7pm
on the east coast of the United States? Go here:
www.RapidForex.com/outlink/clock.shtml
=======================================================

You will notice that there are two times when two of the
major markets OVERLAP in trading times; between 2am and 4am
EST (Asian/European) and between 8am to 12pm EST
(European/N. American).

Generally, the markets tend to make their biggest moves
during these overlaps and, therefore, are usually the BEST
times to trade.

FUN TRIVIA (Neat to Know Info): Trading FOREX from Africa
has advantages because of the time zone. The continent falls
neatly between Asia, Europe and the USA. This means that
trading time in Africa is the same as that in Europe and
also catches both the end of the Asian trading day and the
beginning of the U.S. trading day. This natural resource
enables African traders to trade at the best times without
having sleepless nights :-)

forex #11

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~
DEMO Your Way to Forex Trading Success ...
or, How To Trade the FOREX for Fr.ee !
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~~~

Hey, here's a tongue-in-cheek, rhetorical question for you:

WANT TO TRADE THE FOREX MARKET FOR FR.EE akin?

Who doesn't, right?

What if we told you can get your ambitious, ever-ready
little hands on the same state-of-the-art software package
that professional FOREX traders, throughout the world, are
currently using to make real-time, LIVE currency trades?

What if we told you could experience the same dynamic market
action and go through the same process of making decisions,
based on breaking news, reacting to charting patterns, and
tracking one's performance the same way full-time FOREX
traders do?

And, what if, even if you don't put REAL MONEY into your
account, you still really can't see any difference in how
the market reacts to you and how you react to the market
(well, okay, okay ... with imaginary money, we know you just
may be a tad more liberal with your trades, but we hope you
aren't).

Okay, so here's the deal...

When we started writing this 20-part e-course, we realized
these lessons could literally go on forever and, still, you
won't know everything. At some point, every new FOREX trader
needs to start DEMO-trading.

Once you begin to place demo trades, you will learn a lot
about how Forex transactions are placed. This is an
important step for you to be able to learn how to become a
trader. A Demo Account allows one to become familiar with
trading procedures, such as placing Market, Stop, Limit, and
OCO Orders without any risk. All dollar losses or gains on a
Demo Account are imaginary but, as mentioned above, the
EXPERIENCE is not!

==========================================
SIDENOTE: Although racking up big gains
in a DEMO account does not insure profits
in live trading, those who are NOT
successful trading on paper (DEMO account)
rarely are successful when money is on the
line. So, yes, just playing around and
getting familiar with a demo account can
be a great learning experience; however,
you will not learn how to become a trader
this way. You need to have a trading
strategy, like the ones we teach at
www.RapidForex.com
==========================================

Here's how to get started with your own demo account.

Go to www.RapidForex.com/outlink/demo.shtml

There you can sign up for a free mini-demo account. A mini
account is just like a real demo account, except the trade
sizes are smaller. In a real account the smallest trade size
is $100,000, in a mini account the smallest trade size is
$10,000 (this can be done with a $50 margin, the power of
leverage!).

There are several other places online to sign up for a free
demo account, but we recommend FXCM, because they have the
best overall reputation online. FXCM has built itself to the
premier Forex trading platform. We don't get paid anything
to endorse them, but they are currently the best for
complete newbie traders (however we do recommend other
brokers in our teaching materials for specific benefits).

Once you sign up for your mini-demo account, you will need
to try out one of the trial charting packages. Any of these
will do because they all have most or all of the necessary
indicator tools that we teach you to use in our course
packages. You can then set up your demo account and start
drawing trendlines, marking support & resistance levels,
monitoring moving averages, etc. This is a good way to get
used to the mechanics of trading. Once you have a real
trading account you will already know how to do all of these
things from all of your practice.

Everyone makes mistakes placing orders. You need to
experiment in a demo account to make your mistakes without
losing money.

At this point you have to make a decision about how fast you
would like to learn how to become a trader. The truth is
akin, that the longer you wait to get in on this
market, the more potential money you are missing out on. You
need to decide what time frame is right for you to begin
trading.

You need to decide if:

1. You want to place real trades within the next 3 months
(or sooner, depending on your desire and developed skill
level)

2. You want to build your knowledge for several months
before placing real trades.

The choice is entirely yours. No one else can make that
decision for you. You need to make a plan and stick to it.
It is important not to put off your success. Success
requires action.

If you want to place real trades within the next 3 months,
you should check out www.RapidForex.com. There are some great
resources there at extremely affor.dable prices that can get
you trading in a very short amount of time.

If you want to build your knowledge base, then continue
to be on the lookout for these daily email lessons. You are
already subscribed to it, all you need to do is read each
article attentively as they are released.

forex #10

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~
FOREX Order Types and How to Use Them:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~~~

When you open your trading station software (provided to you
for fr.ee by any one of our recommended brokers), you will
find there are TWO main ways to ENTER a market or, said in
another way, there are two ways to place an initial order to
buy or sell any currency pair.

(AFTER we discuss the MARKET and ENTRY order, we'll cover
how to protect your profits and limit any potential or
realized losses with the STOP and LIMIT order).

=====================

MARKET ORDER - an order to buy or sell a currency pair at
the market price the instant that the order is received and
processed (within seconds of hitting the "OK" button on your
screen). When a market order is placed, you are simply
saying "I'll buy or sell the currency pair at whatever
price it is at when my order gets processed."

Example: If you are looking to place an order for JPY (YEN)
when the dealing price is 104.00/05, a market order will
request to buy JPY at 104.00 or will request to sell JPY at
104.05.

Within the courses we have for sale at RapidForex.com, 99%
of the time, we will have you avoiding MARKET orders. The
reason? They tend to compel the trader to act on impulse
instead of according to a trading plan.

ENTRY ORDER - an order to buy or sell a currency pair when
it reaches a certain price target. This can be any price in
theory. You could set an entry order for the low price of a
time period, or the high price of a time period. For
instance, in one of our courses (Rapid Forex Education
Manual 9.0) we teach you to always set an ENTRY order to be
the same price as the *open price* of the time period. When
you place an ENTRY order to BUY, for example, you are simply
saying "I want to buy this currency pair at a certain price,
if it never reaches that price, I don't want to purchase the
pair."

Example: the current "real-time" quote for the EUR/USD is
1.3317. Your analysis shows that IF the pair hits 1.3329 (a
key resistance point) that there's a high-probability the
pair will turnaround (retrace down) so you wait for it to
hit 1.3329 and then decide to place an ENTRY order to sell
the EUR/USD at 1.3322.

The ENTRY order above shows you how you are fully-empowered
to pick a price and place an order to sell at that price. If
the market hits 1.3327 ... great, you now have an OPEN
position and, as long as the EUR/USD pair keeps dropping and
you close out (exit) your trade at a price lower than
1.3327, you make m.oney.

And, if you don't get in the trade, via your ENTRY order,
don't worry. New trades are constantly developing and if
your order entry doesn't get filled you can't lose any
money. Learn not to be upset when an ENTRY order isn't
filled. You are saved most of the time anyway because the
currency pair did the opposite of what you thought. You
would have lost money, most likely, if it did get filled.
Remember, when orders are not filled, it means you never
risked any money!

======================

After your ENTRY order is placed, you can set a STOP and/or
LIMIT order if you desire. STOP and LIMIT orders are both
ways to exit a trade, automatically (i.e., without closing
out your position via the click of your mouse - manually),
after the trade is entered.

A STOP order (something we always recommend) is used to stop
losses. A LIMIT order (recommended if you can't monitor your
open trade) is used to redeem profits. Where these orders
are placed, in relation to your open trade, depends on the
direction of the entry order.

Example STOP order: If you have an open buy position on
USD/JPY, which you bought at 104.20, and you want to set a
stop order in case the U.S. Dollar starts to depreciate
against the YEN, to stop your loss (or limit your loss -
however you want to look at it), you could set a stop order
at 104.00, thus closing your position at a 20-pip loss.

Tip: a STOP order is always placed BELOW the current market
value of that currency pair (if you are in a long trade).

Example LIMIT order: Assume you placed an ENTRY order to BUY
EUR/USD for 1.6100. You might place the STOP order at 1.6081
(limiting your loss to 19 pips) but, at the same time, you
could place a LIMIT order for somewhere around 1.6171. If
the currency pair reaches that price level, the LIMIT order
becomes a market order to sell, or close out, the BUY
position for a 71-pip profit.

Tip: a LIMIT order is always placed ABOVE the current market
value of that currency pair (if you are in a long trade).

=============================

This is all you really need to know in terms of placing
orders. It's really not that complicated and, of course, our
courses will walk you through the finer points of
calculating your entry and exit points and ensuring you know
how to scale in and out of trades with ease and precision.

If you've ever traded ONLINE before, maybe using e-Trade or
a stock brokers online software package, you will be
pleasantly surprised at just how intuitive, fun, and easy it
is to use the desktop-based online software that a reputable
FX broker can provide you.

forex #9

forex #8

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~
"A rising tide raises all ships" ... Or ...
How To Determine if The Trend is truly
your friend.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~~~

As we explained yesterday, the basis behind using technical
analysis is to find trends when they first develop so you
can ride the trend until it ends. The foreign exchange
market is a very STRONG trending market and is, therefore, a
place where technical analysis can be very effective.

But, as sure as the sky is blue, we still know and meet
traders every week who still end up buying (being "long")
while the currency pair is in a basic downtrend, or selling
short when a market is in an uptrend.

The key here is this: (it's so simple, some want to overlook
it or "argue" with it).

Use as many technical indicators as you want, or create a
personalized trading strategy based off a combination of
indicators, to RECOGNIZE THE TREND. In other words,
professional FOREX traders try to identify the major trend,
the intermediate trend, and the short-term trend and then
construct their trades in that direction, based off how long
their rules allow them to hold a position.

=====================================================
"We know that prices move up and down. They always
have and they always will. My theory is that behind
these major movements is an irresistible force. That
is all one needs to know. It is not well to be too
curious about all the reasons behind price movements.
You risk the danger of clouding your mind with
non-essentials. Just recognize that the movement is
there and take advantage of it by steering your
speculative ship along with the tide. Do not argue
with the condition, and most of all, do not try to
combat it." -- Jesse Livermore
=====================================================

So, what is Mr. Livermore - one of the most colorful,
flamboyant and respected market speculators of all time -
telling us?

In our terms, he's saying: If the action of the market shows
your judgment to be correct, the successful trader 'stays
with the market' and endeavors to make the maximum profit on
each trade, according to his/her risk-to-reward / equity
management rules. If and when the market goes against
him/her, the smart trader will take profits and get out. In
a narrow market (see definition below), when prices are not
going anywhere to speak of, but move within a narrow range,
there is no sense in trying to anticipate when the next BIG
movement is going to be - up or down.

What Mr. Livermore is saying is to watch the market and see
what the market is telling you about upcoming trends. Never
argue with the market, or ask it for reasons or
explanations.

=========================

The market often display's some very familiar patterns of
price movement. Once a pattern is established, it becomes
the most probable course of future price action until the
market changes.

There are two types of markets which will become important
for you to identify; trending and trend-less. Each market
type has two specific patterns which you will also notice
over time.

These market types and patterns are defined as follows:

>>> Trending - Steady elongated price movements with less
than a 45-degree angel with occasional pauses, profit
taking, or resting periods.

In a Trending market, you have:

- Uptrends - A pattern of higher highs and higher lows.

- Downtrends - A pattern of lower lows and lower highs.

>>> Trend-less - Erratic price movements which are often
steep (greater than 45 - degree angle) and cannot sustain
and therefore must reverse. Although the movements can move
many points in a short period of time, they often result in
very little net price movement over time.

In a Trend-less market, you have:

- Choppy - An erratic pattern of higher highs and lower
lows.

- Sideways - A narrow pattern of lower highs and higher
lows.

While up-trend and down-trend days can offer excellent
trading results, choppy markets often create stop outs,
while sideways markets produce for little in either
direction.

Your trading objective is to get into a trending market and
ride until you make our target objective.

We cover many Trend Trading Strategies in our book, "Forex
Surfing & Forex Sailing" -- you will learn how to identify
and draw your own channel trendlines, support and resistance
lines, triangle patterns, chart key top and bottom
formations, etc. (just head on over to RapidForex.com to
learn all about these amazing courses).

forex #7

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Technical Analysis: Or, How to Predict the
Future by Studying the Past (even if the
"past" was 15 minutes ago).
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

As you've probably guessed by now, the reason we touched
upon TECHNICAL analysis in yesterday's lesson, but saved its
DETAILED discussion for today (last, behind the discussion
of FUNDAMENTAL analysis), is twofold:

#1) to ensure you know they're mutually-inclusive. The best
traders don't discount one or the other but understand that
having a grasp on how the fundamentals influence market
sentiment gives him/her an edge over those traders who
don't.

#2) to ensure you know that TECHNICAL analysis is the
easiest and most precise way of trading the FOREX market.

Before we tell you more about technical analysis,
understanding the philosophical assumptions on which
technical analysis is based, and why it's ideally-suited for
the FOREX market, would be a good start:

#1) "The number's don't lie" - all available information and
its impact on traders, and the market, is already reflected
in a currency's price.

#2) Prices move in trends - the foreign exchange market is
mostly composed of trends and is, therefore, a place where
technical analysis can be very effective.

#3) History repeats itself - over time, certain chart
patterns become consistent, predictable and very reliable.
The catch is SEEING them. There's always more than meets the
eye at first glance.

===================================

The Magic Bullet, the Holy Grail,
the Secret Sauce:
==================================

While we're not claiming that you'll become wealthy by
diving deep and hard into FOREX technical analysis,
techniques, methods, etc., we WILL go on the record and say
that all wealthy FOREX traders DO perform technical
analysis.

Why ?

Because, like us, they have unyielding B-E-L-I-E-F in one
simple TRUTH:

*** PRICES MOVE IN TRENDS ***

The traders who don't believe this obviously have no need to
implement a trading methodology on technical analysis. But,
over 100 years of research has shown that those who trade
"with the trend", more often than not, greatly improve their
changes of winning (i.e., making a profitable trade).

Many times finding the prevailing trend will help you become
aware of the overall market direction and offer you better
visibility--especially when shorter-term movements tend to
clutter the picture. And many times following the trend will
bail you out of an initially less than great entry point.

So, how does technical analysis help you to determine what
the trend is and HOW to trade *with it* versus against it?

Okay good question akin and, yes, we'll
answer that, but before we do, let us first make sure you
understand one very IMPORTANT POINT:

Even though, through our courses, we teach you how to use
and read various technical indicators to identify a
long-term trend, spot predictable chart patters and use
certain rules to enter and exit a high-probability trade --
and even though all this involves sound logic, parameters,
proven methods, processes, formulas, data, and research,
these technical indicators, by themselves, are not the Holy
Grail of FOREX trading. But, they're not some passing fad or
hyped-up secret black box either. Beyond the mere rules, the
human element is core to the strategy. It takes discipline
and emotional control to stick with trading following
through the inevitable market ups and downs. Keep in mind
that good technical traders expect ups and downs. They are
planned for in advance.

Okay, so now that you know that we're not claiming technical
analysis is the Magic Bullet of trading (we often get asked,
"Of the indicators you teach us how to use, which ones are
better?" and we reply: NONE - technical indicators should
simply be components of your overall customized /
personalized trading system and not systems in and of
themselves. They are like tools in a tool kit, not the kit
itself!) let's talk about what technical analysis helps you
look for:

The objectives - As a FOREX Technical Trader, your goals
are:

#1) To figure out the price action of the currency pair.
Price is the main concern. If the EUR/USD is at 1.3224 and
goes to 1.3220, then 1.3114, then 1.3010 - the market is in
a down trend. Despite what every technical indicator might
predict, if the trend is down, stay with the trend.
Indicators showing where price will go next or what it
should be doing are useless. A trader need only be concerned
with what the market is doing, not what the market might do.
The price tells you what the market is doing.

#2) To always remember that technical indicators are only
giving you confirmations based on what the market is telling
you. So listen to the market and let it dictate which method
you will use and which tool you will pull out of your bag of
strategies and techniques. For only by listening to the
markets will you ever be able to conquer it successfully!

============================

Indicators: Their Uses
===========================

Here are just a few of the most popular indicators and their
purposes as they relate to the Currency Markets.

<<< Moving Averages >>>

If you believe in the "trend-is-your-friend" tenet of
technical analysis, moving averages are very helpful. Moving
averages tell the average price at a given point of time
over a defined period of time intervals. They are called
moving because they reflect the latest average, while
adhering to the same time measure.

A weakness of moving averages is that they lag the market,
so they do not necessarily signal a change in trends. To
address this issue, using a shorter period, such as 5 or 10
day moving average, would be more reflective of the recent
price action than the 40 or 200-day moving averages.

Alternatively, moving averages may be used by combining two
averages of distinct time- frames. Whether using 5 and 20-
day MA, or 40 and 200-day MA, buy signals are usually
detected when the shorter-term average crosses above the
longer-term average. Conversely, sell signals are suggested
when the shorter average falls below the longer one.

There are three kinds of mathematically distinct moving
averages (MA): Simple MA; Linearly Weighted MA; and
Exponentially Smoothed. The latter choice is the preferred
one because it assigns greater weight for the most recent
data, and considers data in the entire time period of the
moving average.

<<< MACD >>>

Moving Average Convergence Divergence (MACD): is a more
detailed method of using moving averages to find trading
signals from price charts. Developed by Gerald Appel, the
MACD plots the difference between a 26-day exponential
moving average and a 12-day exponential moving average. A 9-
day moving average is generally used as a trigger line,
meaning when the MACD crosses below this trigger it is a
bearish signal and when it crosses above it, it's a bullish
signal.

As with other studies, traders will look to MACD studies to
provide early signals or divergences between market prices
and a technical indicator. If the MACD turns positive and
makes higher lows while prices are still tanking, this could
be a strong_buy signal. Conversely, if the MACD makes lower
highs while prices are making new highs, this could be a
strong bearish divergence and a sell signal.

<<< Bollinger Bands >>>

The basic interpretation of Bollinger Bands is that prices
tend to stay within the upper and lower bands. The
distinctive characteristic of Bollinger Bands is that the
spacing between the bands varies based on the volatility of
the prices. During periods of extreme currency price changes
(i.e., high volatility), the bands widen to become more
forgiving. During periods of low volatility, the bands
narrow to contain currency prices. The bands are plotted two
standard deviations above and below a simple moving average.
They indicate a "sell" when above the moving average (or
close to the upper band) and a "buy" when below it (or close
to the lower band). The bands are used by some forex traders
in conjunction with other analyses, including RSI, MACD,
CCI, and Rate of Change.

<<< Fibonacci Retracements >>>

Fibonacci retracement levels are a sequence of numbers
discovered by the noted mathematician Leonardo da Pisa
during the twelfth century. These numbers describe cycles
found throughout nature and when applied to technical
analysis can be used to find pullbacks in the currency
market.

Fibonacci retracement involves anticipating changes in
trends as prices near the lines created by the Fibonacci
studies. After a significant price move (either up or down),
prices will often retrace a significant portion (if not all)
of the original move. As prices retrace, support and
resistance levels often occur at or near the Fibonacci
Retracement levels.

In the currency markets, the commonly used sequence of
ratios is 23.6 %, 38.2%, 50% and 61.8%. Fibonacci
retracement levels can easily be displayed by connecting a
trend line from a perceived high point to a perceived low
point. By taking the difference between the high and low,
the user can apply the % ratios to achieve the desired
pullbacks.

<<< RSI >>>

RSI stands for Relative Strength Index. The RSI measures the
markets activity as to whether it is over bought or over
sold. It gives a trader an indication as to which way the
Market is moving. It is important to note, that this is a
leading indicator and thus allows one to see what the market
is ABOUT to do and then act accordingly. The higher the RSI
number, the more over bought it is and conversely the lower
the RSI number, the more over sold it is. It is a great
leading indicator for the micro and macro reversals in the
market. By using an RSI on the 1 minute chart set at a
period of 18 and overlaid on the bottom of your charts tend
to give the best entry signals. This can also be applied to
the 5-minute chart as well. The two significant entry
numbers are 25 and 75.

===================

Technical Traders use some of these indicators, all of them,
or a combination of them (our course packages tell you HOW
we use various indicators to trade successfully) to confirm
that they really do have a high-probability trade signal. A
consistently winning FOREX trader will use 3 or 4 indicators
to provide a DEFINITIVE signal to get in a trade.

Always remember: missed money is always better than lost
money !

The GOLDEN RULE is this: Technical trading should be
primarily systematic with a touch of "gut check" (see Ed
Seykota's interview excerpt from yesterday's lesson).

Price and time are pivotal at all times. Technical methods
are not based on an analysis of fundamental supply or demand
factors, political news, or a countries economic profile.

Rather, to our pleasure, Technical Trading, gives us a good
handle on how to answer these critical questions:

- How and when to enter the market.
- How many lots to trade at any time.
- How much money to risk on each trade.
- How to exit the trade if it becomes unprofitable.
- How to exit the trade if it becomes profitable.

forex #6

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Economic Fundamentals: Or, What influences
Prices In the FOREX market
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Before we tell you a little about what this form of market
analysis is and why you should, at least, know about it, use
it some (but not necessarily focus on it), let us give you a
few excerpts from two Traders being interviewed by Jack
Schwager in the now-famous book MARKET WIZARDS.

Once you're through reading these beliefs, from two
legendary market wizards, you'll have a good understanding
on where our ideas are based when it comes to using one
(fundamental analysis) or the other (technical analysis) or
both to predict future currency pair price movement.

=====================

[From page 161 - interview with Ed Seykota]:

QUESTION: What are your thoughts about using fundamental
analysis as an input in trading?

ED'S RESPONSE: Fundamentals that you read about are
typically useless as the market has already discounted the
price, and I call them "funny-mentals." However, if you
catch on early, before others believe, then you might have
valuable "surprise-a-mentals."

QUESTION: You answer is a bit facetious. Does it imply that
you only use technical analysis?

ED'S RESPONSE: I am primarily a trend trader with touches of
hunches based on about twenty years of experience. In order
of importance to me are: (1) the long-term trend, (2) the
current chart pattern, and (3) picking a good spot to buy or
sell. Those are the three primary components of my trading.

=================================================
Now, let's look at Bruce Kovner, who has a
less pronounced one-sided belief on this issue:
=================================================

[From page 60 - interview with Bruce Kovner]:

QUESTION: Do you always use fundamental analysis in forming
your trading decisions?

BRUCE'S RESPONSE: I almost always trade on a market view; I
don't trade simply on technical information. I use technical
analysis a great deal and it is terrific, but I can't hold a
position unless I understand why the market should move.

There is a great deal of hype attached to technical analysis
by some technicians who claim that it predicts the future.
Technical analysis tracks the past; it does not predict the
future. You have to use your own intelligence to draw
conclusions about what the past activity of some traders say
about the future activity of other traders.

For me, technical analysis is like a thermometer.
Fundamentalists who say they are not going to pay any
attention to the charts are like a doctor who says he's not
going to take a patient's temperature. But, of course, that
would be sheer folly. If you are a responsible participant
in the market, you always want to know where the market is--
whether it is hot and excitable, or cold and stagnant. You
want to know everything you can about the market to give you
an edge.

Technical analysis reflects the vote of the entire
marketplace and, therefore, does pick up unusual behavior.
By definition, anything that creates a new chart pattern is
something unusual. It is very important for me to study the
details of price action to see if I can observe something
about what everybody is voting for. Studying the charts is
absolutely crucial and alerts me to existing disequilibria
and potential changes.

==========================

So, by now, you've probably figured out one of the unspoken
truths of trading: there is a tendency to pigeonhole traders
into two distinct schools of market analysis - fundamental
and technical.

For forex traders, the fundamentals are everything that
makes a country tick. The release of economic & inflation
indicators (i.e., consumer spending, employment cost index,
government spending, producer price index, etc.), political
factors, government policy or an individual event can set
the market in a frenzy. These have to be considered when
making the decision weather to trade or not.

Technical analysis, which we will cover more in tomorrow's
lesson, simply put is a way of using historical price data
(via the charts) in different ways to predict the future
price of a currency pair.

Charts are needed, but the reality is...

Fundamental analysis is a very effective way to forecast
economic conditions, but not necessarily exact market
prices. Or, said another way: as a general rule, while you
DO need to have a handle on the most influential
contributors for the cause of a currencies price to move up
or down, you MUST trade in agreement with the supporting
technical indicators.

The reason foreign exchange traders put the most emphasis on
technical analysis is because traders around the world use
similar charts and tools in predicting market trends. The
reason the FOREX market can be so predictable some times is that if the
majority are using the same graph for determining patterns and trends,
then it is highly likely
that they will act in a similar manner. So several thousand
traders who have all charted the same resistance line, for
example, will most likely set their trades and direction to
conform to that line.

=======================

Since we'll be teaching you, via our courses, to become
sound TECHNICAL TRADERS, we'll cover it more in detail
tommorrow; however, we still wanted you to know what
FUNDAMENTAL analysis is and what it does.

Here's a little more background.

When fundamental data is made available to the public there
is a reaction from investors and speculators. Information
in the form of news and economic indicators is more vague
than that of technical indicators. There is a lot of gray
area in this type of analysis. The market will ultimately
react to how people think the economic data compares to the
current market situation.

Economic indicators usually reveal information that "Should
cause a currency to go up in price" or "May cause a currency
to go down". The words 'should' & 'may' in the quotes above
reveal the ambiguity of the fundamental data.

Here is an example of what analyzing fundamental data is
like. Let's suppose there are six economic indicators
(there are a lot more). Let's call our six indicators
A,B,C,D,E, & F. Now we wait for the data from our
indicators to be published in a financial magazine or at an
online source. We manage to get the readings for our
economic data for the EURO:

Indicator A: is in a range where the Euro may go up
Indicator B: is in a range where the Euro should go up
Indicator C: is in a range where the Euro could go down
Indicator D: is in a range where the Euro usually goes down
Indicator E: is in a range where the Euro could go up
Indicator F: is in a range where the Euro may go down

By looking at the above indicators, you don't know what the
Euro is going to do. Furthermore, currencies are always
traded in pairs (as was explained in Lesson #3). So you
would have to get the fundamental data for another currency
pair and compare it with the EURO. We think you can
appreciate that this is no simple task.

We do not want to discourage you away from fundamental data.
The best way to learn is to learn about one piece of
economic data at a time. Eventually you will build a puzzle
from all of the fundamental and technical data and make more
informed trading decisions.

Wednesday, August 16, 2006

Saturday, August 12, 2006

here they come again

just once is simply not enough for these guys.they r simply coming back to obafemi awolowo university for another round of 180d degrees plus.the first time out was mind blowing and the second tme out is gonna be earth shattering.first time out, just 75 persons and its gonna be 750 the second time out.their fame and word of mouth has preceeded them and am very sure its gonna be a masive turn out this time out.told a lot of my friends about the first seminar and i could see the longing in heir eyes for that golen fleece that slipped past there fingers the first time and i can bet you a thousand bucks that they r not gonna let that happen the second time.check out these guys on my180degrees.com.they are the real deal.

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forex lesson #5

LESSON #5:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Charting Your Way to Success: FOREX PriceCharts, What They Mean and How to Use Them~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~"What's the difference between the speculative winner andthe ignorant loser in FOREX?" my silver-tongue friend asked.When I thought about it, numerous things came to mind - suchas discipline, trading rules, not being greedy etc., butwhat came out of my mouth was really no big surprise:"Understanding the charts... they represent so, so much. Yougotta know they represent the lifeblood of the market. Knowthem well and you'll be head-and-shoulders above the rest."We at RapidForex.com will be the first to admit that readingcharts, and interpreting patterns, are more an art form thana skill; however, knowing you'll have to be personally in-tune and subjectively-creative with the charts (basing yourentry and exit decisions on YOUR OWN combined methods oftechnical analysis) doesn't mean you should run-for-the-hills.Nope, don't be scared...The beauty of FOREX charts, as opposed to charts used for,say, daytrading stocks, is that they are pretty easy tointerpret and use. They're a reflection of a slower-moving,stable economy (the one of a country) compared to the futureand daily drama of company reports, Wall street analysts andshareholder demands.And, don't forget...unlike stocks, currency charts rarelyspend much time in tight trading ranges and have thetendency to develop strong trends (even though the FX marketmay be volatile, it's more predictable). And, rather thantens of thousands of stocks to analyze, you only have a fewmajor currencies to trade.===================The complimentary charting software provided by any one ofour recommended brokers will be absolutely sufficient foryou to put your finger (eye) on the pulse of the market forany one currency pair.Understanding just a few basic points, below, of thetechnical analysis of currency chart reading can lead toincreased profit potential that far exceed the hazards ofother markets.===============Pricing - Price reflects the perceptions and action taken bythe market participants. It is the urgency between buyersand sellers in the Over-The-Counter (OTC) or 'interbank'market that creates price movement. Thus, all fundamentalfactors are quickly discounted in price. Therefore, bystudying the price charts, you are indirectly seeing thefundamental and market psychology all at once - after allthe market is fed by two emotions - Greed and Fear - andonce you understand that, then you begin to understand thepsychology of the market and how it relates to the chartpatterns.Data Window - When you click on a price bar or candlestick,most FX online charting stations will display a small box ofdata usually called a display window which will contain thefollowing items:H = Highest_Price L = Lowest_Price O = Opening_Price C = Close_Price (or Last_Price)The most common types of price bars, used in FOREX trading,are the Bar Chart and the Candlestick chart:Bar Charts - Price bars are a linear representation (a line)of a period of time. This enables the viewer to see a graphicrepresentation summarizing the activity of a specific timeframe. As an example, we use one minute and five-minute timeintervals for our system. Each bar has similarcharacteristics and tells the viewer several importantpieces of information. First, the highest point of the barrepresents the highest price that was achieved during thattime period. The lowest point of the bar represents thelowest price during the same period. Regular bars display asmall dot on the left side of the bar which represents theopening price of the period and the small dot on the rightside represents the closing price of the period.Candlesticks - Japanese Candlesticks, or simply Candlesticksas they are now known, are used to represent the sameinformation as Price bars. The only difference is that thedifference between the open and close form the body of a boxwhich is displayed with a color inside. A red color meansthat the close was lower than the open, and the blue colorrepresents that the close was higher than the open. If thebox has a line going up from the box it represents the highand is called the wick. If the box has a line going downfrom the box, it represents the low and is called the tail.Many interpretations can be made from these "candlesticks"and many books have been written on the art of interpretingthese bars (you'll find a few links in our ResourcesSection).So, the main thing to keep in mind between the two types ofprice charts is this:Candlestick charts are similar to bar charts in that the toptip of a vertical line represents the high and bottom tiprepresents the low. However, market activity between theOPEN and the CLOSE is represented differently by the use ofcandlestick bodies.Because of their colored bodies, candles provide greatervisual detail in their chart patterns than bar charts. Whichis why we recommend you become intimately familiar withCandlestick charts or, as we like to call them, "bar chartson steroids."===============================Chart Intervals & Time Frames:===============================A chart Time Scale & Period, or timeframe, basically refersto the duration of time that passes between the OPEN and theCLOSE of a bar or candlestick.While most of our trading methods, outlined in our coursepackages, will have you viewing the 5-min and 1-min candlecharts, it is often useful to look at larger time frames(like the 1-hour or Daily charting methods used in Forex Sailing).For instance, with your broker software, you will be able toview a currency pair, in a 1-hour timeframe over a 2-dayperiod, 5-day period, 10-day period, 20-day period and 30-day period.Most of the short-term time intervals (5-min and 1-min charts)are used for entry and exit points (we teach this extensivelyin our course titled "Forex Surfing" & "Forex Scalping") and thelonger-term time intervals (1-hour and daily charts) are used togauge where the CORRECT trend is (see our course Forex Sailing for longer term trend trades).

forex lesson #4

LESSON #4:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Buying (going "long") and selling (going"short") in the FOREX market. How to do itand calculate your profit or loss (youwon't win ALL the time, but most of the time,YES, if you've got a good trading method).~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Here's TWO timeless rules of Investing as they relate totoday's lesson:RULE #1) ~ Cut your losers; let your winners ride.Let's be frank (we never promised any rose-colored glasseshere did we? Well, at least not the ones you can wear ALLthe time): YOU WILL HAVE LOSING TRADES.We do. Every FOREX trader does. The key to being aconsistent, predictable, reliable trader is to, at the endof the day, add up more wins than losses. And, when you KNOW(based off your trading rules), without a doubt, that YES,indeed you are, in a losing trade, don't keep losing money(lowering your stop loss) just to *prove you are right* oryour rules are wrong (however you want to look at it).Let's face it - you can't turn a sow's ear into a silkpurse. You can't change the spots of a leopard and you can'tturn chicken poop into chicken salad. The best trades areusually "right" immediately (the techniques, rules, methodsand strategies we teach at RapidForex.com will be your bestindicator for just what a "right" trade really is).Remember, people have been trading the markets for a hundredand sixty years. The smart traders know there's going to beanother trade. Cut your loses short and compound thosewinning positions.RULE #2) ~ Thou Shalt Not Trade the FOREX Without thePlacing of a Stop Loss Order.When you place a STOP order, right along with your ENTRYorder, via your online trade station, you've justautomatically prevented a potential loss from "running" toofar.Before initiating any trade, if you haven't already figuredout at what point you would be wrong and would want to cutyour loses or, at the very least, reevaluate your positionfrom the sidelines, then you shouldn't be putting on thetrade in the first place.Show us a FOREX trader who doesn't use stop loss orders andwe'll show you someone who loses a lot of m.oney.=================To make a profit, in the FOREX, a trader (possibly YOUsoon?) can enter the market as a *buy position* (known asgoing "long") or a *sell position* (known as going "short").For discussion, let's assume you've been studying the EURO(which, if you remember from yesterday's lesson, is pairedfirst with the U.S. dollar or USD. Since it is paired first,it is the base currency).Your trading methods, rules, strategies, etc., tell you thatprices will rise during a particular timeframe. So you buythe EUR/USD pair (or, technically, you will simultaneouslybuy euros, the base currency, and sell dollars).You open up your handy trading station software (provided toyou for fr^ee by the online broker), which resides on yourdesktop, and you see that the EUR/USD pair is trading at:<<>>REMEMBER: the quote to the left of the / (1.3242) refers tothe bid or "sell" price (what you obtain in USD when yousell EUR). The quote to the right of the / (1.3245) is usedto obtain the ask or "buy" price (what you have to pay inUSD if you buy EUR).So, since you believe that the market price for the EUR/USDpair will go higher, you will enter a *buy position* in themarket. For simplicities sake, let's say you bought one lotat 1.3245. As long as you sell back the pair at a higherprice, then you make money.No worries. This seemingly elaborate process ishandled, and even calculated for you, via the broker'ssoftware mentioned above. The chart software and the quoteboard are in agreement with all sides of the currencies.=================To illustrate a typical FX SELL trade, consider thisscenario involving the USD/JPY currency pair:REMEMBER ~ Selling ("going short") the currency pair impliesselling the first, base currency, and buying the second,quote currency. You sell the currency pair if you believethe base currency (USD) will go down relative to the quotecurrency (JPY), or equivalently, that the quote currency(JPY) will go up relative to the base currency (USD).NOTE: while the Profit Calculations, on the Short-sell tradescenario below, may seem somewhat complicated if you'venever been in the FOREX market before, trust us when we say,"this process is nearly seamless through your broker's tradestation (software). We're just showing you this thought-process below so you can SEE how a PROFIT occurs even whenSELLING a currency pair.============================The current bid/ask price for USD/JPY is 105.26/105.30,meaning you can buy $1 US for 105.30 Japanese YEN or sell $1US for 105.26 YEN.Suppose you decide that the US Dollar (USD) is overvaluedagainst the YEN (JPY). To execute this strategy, you wouldsell Dollars (simultaneously buying YEN), and then wait forthe exchange rate to rise.So you make the trade: selling US $100,000 and purchasing10,526,000 YEN. (Remember, at 1% margin, your initial margindeposit would be $1,000.)As you expected, USD/JPY falls to 104.26/104.30, meaning youcan now buy $1 US for $104.30 Japanese YEN or sell $1 US for104.26Since you're short dollars (and are long YEN), you must nowbuy dollars and sell back the YEN to realize any profit.You buy US $100,000 at the current USD/JPY rate of 104.30,and receive 10,430,000 YEN. Since you originally bought(paid for) 10,526,000 YEN, your profit is 96,000 YEN.To calculate your P&L in terms of US dollars, simply divide96,000 by the current USD/JPY rate of 104.30.Total profit = US $920.42=============================

google cash #1

MAKE BIG MONEY WITH GOOGLE CASH Lesson 1 of 11/////////////////////////////////////////////// In Today's Lesson: "Set Your Money Goal Today"/////////////////////////////////////////////// Today's Sponsor:"Here's How You Can Earn $37,000+ A MonthWorking Part Time Online. Details: http://www.GoogleCash.com/////////////////////////////////////////////// "Set Your Money Goal Today" Take the world's best archer, blindfold him,Turn him around 3-4 times, then ask him to hitThe bulls eye on a target 50 yards away. You might respond, "But that's crazy.How is he supposed to hit a target he cannot See.?" Here's a better question: How are YOUSupposed to hit a target you do not even have? My point? Since it is money you are afterWith Google Cash, set your money goal today. Some tips:1. Be precise. "I want to be rich" is too vague. "I want to earn $1,000 every day online" is much better.2. Set a time limit. E.g. "By this time next year, I want to be earning at least $1,000 a day online."3. Aim high. E,g,, "I want to accumulate $50,000 A year within 5 years."4. At the same time, be realistic. "I want to make A million this year may be farfetched. 5. Shoot for a positive goal, not a negative one. "I want to earn $1,000 a day within 6 months" works better than "I don't want to be a carpetcleaner anymore."6. VERY IMPORTANT: Write your goal downOn paper. That makes it more real to you.7. Read that written goal every day, first thingIn the morning. Enhance the thought by includingA picture of $100 bills, or many of the things youWould like to buy with all of that money.8. Set out the steps you must take to reach yourFinal goal. In other words, "Here are the actionsI must take to reach my goal." Think of goals youMust achieve daily, weekly, monthly and annually.9. Every night, set out a list of things you must dotomorrow in order to move toward your goal.9. VERY IMPORTANT: Think performance,Not outcome. Wrong: "I want to be a millionaire."Right: " I do this and this and this every day,Which earns me $1,000 a day every day." Goal setting is a critical step on your way toSuccess. Make your money goal today!

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Wednesday, August 09, 2006

part 3

LESSON #3:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
How Currencies Are Traded, Understanding
FOREX Quotes, Market Structure And How to
Love a *pip* -- soon to be your best friend!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Before I get into how currencies are traded, quoted and
structured, let me tell you about one of the best advantages
of FOREX Trading.

The amount of money you need to place a trade (known as
"margin") is all that can be lost !

I state it like this (in a glass-is-half-empty, negatively-
presumptive kind of way) because, even though I know with
proper self-taught education you're NOT going to lose as
much as you win anyway, I want you to know that despite the
super-high leverage associated with FOREX trading (200:1 is
possible; meaning if you put up $1 the trading vendor will
allow you to trade like you really have $200), it's still
arguably less risky than futures (commodities) trading.

(And, forget stocks, you'll never get this type of LEVERAGE
in the equities market)

Futures markets are often prone to sudden and dramatic
moves, against which you can't protect yourself, even by
trading with protective stops. Your position may be
liquidated at a loss, and you'll be liable for any
resultingdeficit in the account. But because of the FX
market's deep liquidity and 24-hour, continuous trading,
dangerous trading gaps and limit moves are eliminated.
Orders are executed quickly, without slippage or partial
fills. And finally, there are no margin calls -- for your
protection, ALL our recommended brokers will automatically
close out some or all of your open positions if your account
equity falls below the level required to hold the positions.
Think of this as a final, automatic stop, always working on
your behalf to prevent a debit balance. In fact, if you pick
from our list of recommended brokers, you'll never lose more
than you have in your FOREX account!

=====================

Currencies are traded in dollar amounts called *lots* -- One
lot is equal to $1,000, which controls $100,000 in currency.
This is the "margin" I talked about above. Control $100,000
worth of currency for only 1,000 doll_ars.
Good stuff, right?

Okay, let's move on....

Currencies are always traded in pairs in the FOREX. The
pairs have a unique notation that expresses what currencies
are being traded. The symbol for a currency pair will always
be in the form ABC/DEF. ABC/DEF is not a real currency pair,
it is an example of a symbol for a currency pair. In this
example ABC is the symbol for one countries currency and DEF
is the symbol for another countries currency.

Here are some of the common symbols used in the Forex:

USD - The US Dollar
EUR - The currency of the European Union "EURO"
GBP - The British Pound
JPN - The Japanese Yen
CHF - The Swiss Franc
AUD - The Australian Dollar
CAD - The Canadian Dollar

There are symbols for other currencies as well, but these
are the most commonly traded ones.

A currency can never be traded by itself. So you can't ever
trade a EUR by itself. You always need to compare one
currency with another currency to make a trade possible.

Some of the common PAIRS are:

EUR/USD Euro / US Dollar
"Euro"

USD/JPY US Dollar / Japanese Yen
"Dollar Yen"

GBP/USD British Pound / US Dollar
"Cable"

USD/CAD US Dollar / Canadian Dollar
"Dollar Canada"

AUD/USD Australian Dollar/US Dollar
"Aussie Dollar"

USD/CHF US Dollar / Swiss Franc
"Swissy"

EUR/JPY Euro / Japanese Yen
"Euro Yen"

The listed currency pairs above look like a fraction. The
numerator (top of the fraction or "left" of the / however
you want to SEE it) is called the base currency. The
denominator (bottom of the fraction or "right" of the
/however you want to SEE it) is called the counter currency.
When you place an order to buy the EUR/USD, for instance,
you are actually buying the EUR and selling the USD. If you
were to sell the pair, you would be selling the EUR and
buying the USD. So if you buy or sell a currency PAIR, you
are buying/selling the base currency. You are always doing
the opposite of what you did to base currency with the
counter currency.

If this seems confusing then you're in luck. You can always
get by with just thinking of the entire pair as one item.
Then you are just buying or selling that one item. Thinking
like this will still enable you to place trades. You only
need to be aware of the base/counter concept for Fundamental
Analysis issues.

So why is it important to know about the base/counter
currency now? The base/counter currency concept illustrates
what is actually taking place in a Forex transaction. Some
of you reading this, know that short-selling was restricted
in the stock market *(Short-selling is where you sell a
stock/currency/option/commodity first and then try to buy it
back at a lower price later). But in the FOREX you are
always buying one currency (base) and selling another
(counter). If you sell the pair you are simply flipping
which one you buy and which one you sell. The transaction is
essentially the same. This allows you to short-sell with no
restrictions!

You want to be able to short-sell with no restrictions so
you can make money when the market drops as well as when it
rises. The problem with traditional stock market trading is
that the market has to go up for you to make money. With
FOREX trading you can make money in all directions.

=======================
Love Your *pips*
=======================

Currencies are traded on a price interest point (pip)
system. Each currency pair has its own pip value.

Since we have a listed currency PAIR (i.e., EUR/USD,
EUR/AUD), we need a way to talk about its associated number
or price. When you see a FOREX price quote, you'll see
something listed like this:

<< USD/JPY: 118:46/51 >>

The first component (before the slash) refers to the bid
price (what you obtain in JPY when you sell USD). In this
example, the bid price is 118.46. The second component
(after the slash) is used to obtain the ask price (what you
have to pay in JPY if you buy USD). In this example, the ask
price is 118.51. The difference between the bid and the ask
price is referred to as the spread (how brokers REALLY allow
you to trade commission-free). In the example above, the
spread is .05 or 5 pips.

Sometimes you won't see a two-sided quote, consisting of a
'bid' and 'offer'. But, rather, you'll see something like...

<< USD/JPY: 123.50 >>

When you see a Forex currency pair price quote, like the one
above, just remember that that last digit of the price is
referred to as the *pip*. So if you see a quote (123.50)
and then a qu.ote in one minute of (123.51), the price rose 1 pip.
Similarly, if you see a price quote of 187.50 and then
after 5 minutes it's (187.58), the price rose 8 pips. The pip is
always the last decimal place of the currency price quote.

YOUR GOAL IS TO CAPTURE AS MANY PROFITABLE pips AS POSSIBLE!

Since the US dollar is the centerpiece of the FOREX market,
it is normally considered the 'base' currency for quotes. In
the "Majors", this includes USD/JPY, USD/CHF and USD/CAD.
For these currencies and many others, quotes are expressed
as a unit of $1 USD per the second currency quoted in the
pair.

In the example above, a quote of USD/JPY 123.50 means that
one U.S. dollar is equal to 123.50 Japanese yen.

When the U.S. dollar is the base unit and a currency quote
goes up, it means the dollar has appreciated in value and
the other currency has weakened. If the USD/JPY quote above
increases to 124.01, the dollar is stronger because it will
now buy more yen than before.

The three exceptions to this rule are the British pound
(GBP), the Australian dollar (AUD) and the Euro (EUR). In
these cases, you might see a quote such as GBP/USD 1.4366,
meaning that one British pound equals 1.4366 U.S. dollars.

In these three currency pairs, where the U.S. dollar is not
the base rate, a rising quote means a weakening dollar, as
it now takes more U.S. dollars to equal one pound, euro or
Australian dollar.

In other words, if a currency quote goes higher, that
increases the value of the base currency. A lower quote
means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are
called cross currencies, but the premise is the same. For
example, a quote of EUR/JPY 127.95 signifies that one Euro
is equal to 127.95 Japanese yen.

====================

So, now that you're fully indoctrinated into how to read
currency quotes, let us remind you one on thing:

YOUR GOAL IS TO CAPTURE AS MANY PROFITABLE pips AS POSSIBLE!

Oh yeah ... that was already mentioned, wasn't it? :-)

The point: never lose sight of your objective. While the
above lesson could go on and on for pages, it still wouldn't
make you a world-class FOREX trader.

But, the combined power of our remaining lessons, just might.

part 2

LESSON #1:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
What the FOREX IS, and How to Take Part in the
World's Largest, Most Liquid Trading Market
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

"If you think what you do is exciting, you ain't seen
nothing yet. I'm an FX Trader".

Those were the words I heard over five years ago, and since
then, regardless of how confrontational, competitive, or
in-your-face they may have seemed at the time, I'm glad I
heard them.

I was just introduced to what we will affectionately call,
throughout this mini-course (seriously), "The World's Most
Lucrati.ve Hom.e_based Busin_ess" (but a lot more on that
tomorrow).

Even though you, and I, have had the opportunity to take
part in trading foreign currencies for profit (in the same
way banks and large corporations do) since 1998, it is just
now becoming the cool, hip, new "thing" to talk about at
parties, business events, and other social gatherings.

Even though it HAS been somewhat of a loosely guarded secret,
more and more investors are turning to the all- electronic
world of FOREX trading for income and profit because of its
numerous benefits & advantages over traditional trading
vehicles, like stocks, bonds and commodities (stay tuned,
for tomorrow's email, to get the inside scoop on this).

But, still, whenever something SEEMS new or is just becoming
a part of social conversation, news articles, and water
cooler gossip, misconceptions have to be overcome, the mind
has to be open and the slate has to be clear for starting
out fresh with the CORRECT information.

So, in this first Lesson, it is our attempt to give you some
solid, but not over-detailed, information on just what the
heck "FX" (FOREX) means, what it is, and why it exists.

Plus, we wouldn't want you to be the one giving the blank
stare, at the parties, when someone brings it up :-)

If you'd like to make $_200 to $_3,000 for as little as ten
minutes of work -- work that involves minimal risk, but
plenty of upside potential -- then this ongoing email mini-
course if for you.

As a friend of mine said, "Trading FOREX is like picking
money up off the floor. NOT trading FOREX is like leaving it
there for someone else to pick up." Others in the industry
have also said, "It's like having an ATM machine on your own
computer."

In this 20-part e-Course series, we will show you what they
mean.

=============

Here's the all-steak, no-sizzle explanation (one we feel
you'll appreciate) of what FOREX is and how traders, like us,
profit from it:

The Foreign Exchange Market, also referred to the "FOREX" or
"FX" market, is the spot (cash) market for currency.

But, don't mistake what we're doing as trading the futures
market, where you buy a contract to purchase a particular
currency at a future price in time.

What we do is much less risky than trading currencies on the
futures market, much more profitable, and a lot easier,
than trading stocks. [note: we'll tell you more about this,
tommorrow, in Lesson #2]

So, you're probably wondering where it's at ... or ... how
to access the FX market?

The answer is: FX Trading is not bound to any one trading
floor and is not centralized on an exchange, as with the
stock and futures markets. The FX market is considered an
Over-the-Counter (OTC) or 'Interbank' market, due to the
fact that the entire market is run electronically, within a
network of banks, continuously over a 24-hour period.

Yes, if that's the first time you've heard about an all-
electronic market, we know this may sound somewhat intriguing
to you.

And, it should be, because it certainly is.

Here's what you are actually trading when you participate in
the Foreign Exchange (FOREX) market:

Essentially, like the large banks who use the FX market to
protect themselves from the fluctuating exchange rate of
different currencies, as an investor, what we're doing is
simultaneously exchanging one countries currency for another.
So, in actuality, we're electronically trading a currency
-pair and the price that is quoted to us is the exchange rate
between the two currencies.

If you just said, "Huh?" ...no worries, we've got you covered
with an explanation.

In other words, simply the quoted price is how many of the
one currency is worth 1 of the other currency.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Example:

EUR/USD last trade 1.2850 - One Euro is worth $1.2850 US
dollars.

The first currency (in this example, the EURO) is
referred to as the base currency and the second (/USD)
as the counter or quote currency.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Okay, okay ... let me STOP myself before I get too deep into
Currency Pair education (we'll cover that with you in Lesson
#3)

Yes, this is a lot to share with you about this relatively
new, exciting market of unlimited profit possibilities -- a
market that has so many more advantages over other
investments, and even over other businesses, that it will
blow your socks off.

And, being the curious, ambitious person that you are, I know
you'd like to dive in. So, stay tuned for tomorrow's email
where we'll tell you why FOREX Trading is the ideal business
and what its benefits are over other investing vehicles.

But ..... WAIT !!!

I'll at least give you something to chew on overnight.

We get a lot of questions about FOREX - from folks who've
never heard of it to advanced, highly-skilled traders.

The one question that keeps popping-up from the former group
of people is this:

"If people, like you, are making so much money by trading
the FOREX, why would you share this information with
anyone else?"

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIDENOTE: a lot of courses will spend several pages
introducing the FOREX by giving a historical perspective.
In our opinion, for a trader, this is a waste of time.
Yes, it could be interesting to learn about the details
of Who,What, When, Where and Why but, just know that
historical knowledge will not help you to become a FOREX
Trader. However, we will leave you with the QUICK Info
below:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Here's the answer...

The FOREX has a DAILY trading volume of around $1.5 trillion
dollars - 30 times larger than the combined volume of all
U.S. equity markets. This means that 1,498,574 skilled
traders could each take 1 mill.ion doll_ars out of the FOREX
market every day and the FOREX would still have more money left
than the New York Stock would have daily!

Wow !

Yes, wow indeed. The FOREX plays a vital role in the world
economy and there will always be a tremendous need for the
FOREX. International trade increases as technology and
communication increases. As long as there is international
trade, there will be a FOREX market. The FX market has to
exist so a country like Japan can sell products in the
United States and be able to receive Japanese Yen in
exchange for US Dollars.

So, before tommorrow arrives, just keep this in mind:

There's plenty of money for plenty of traders to use the
same trading techniques / tactics and profit immensely. And,
with only 5% of the daily turnover of volume coming from
banks, government and large corporations who need to hedge
their investments,imagine what the other 95% is for -- bingo,
for speculation and profit.

all about forex part 1

Tuesday, August 08, 2006

The Fanatic Cook

Sunday, August 06, 2006

who am i?

sitting all alone on my couch watching a movie that holds liltle interest to me, my mind drifts into that nothingness we all call deep thougt.anyway my name is akinola akinbode,wuz born on the 27th of march in the early 80's.grew up in the northen part of nigeria where i had my early education and moved back to the south in the early 90's.my dad wuz an airforce officer then before he retired.i am the first of four kids and can be real authoritative at times,guess it goes with the territory.am a real cool and fun loving dude.am 6"3 fair skin and well built foe a normal guy.really luv reading cos u cant be more succesful than ur library.not easily influenced and i look up to people who ve made it despite all odds.ve got a few friends that i really cherish and love especilly those that give my life a meaning.they know themselves and i know them.when it comes to food,guess am not choosy,i just luv my grub.talk some more bout me later.

on the threshold

Thursday, August 03, 2006

my rebirth

at last out of this dark tunnel,this oblivion that i existed in is no more.i found a calling that no more than a few other will ever hear.i can now begin to live,breathe,savour every minute of my new live.its such a wonderful and exhilirating feeling simply heavenly and it permeates the very essence of my being.the sleeping genius that slumbers within is now awake thanks to a few notes of musical words of inspiration that my soul simply danced and rejoiced at.thanks brothers.u were simply out of this world.thanks mr deolu and sesan.cheers to a new begining.

word

Monday, August 21, 2006

forex #12

forex #11

forex #10

forex #9

forex #8

forex #7

forex #6

Wednesday, August 16, 2006

Saturday, August 12, 2006

here they come again

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forex lesson #5

forex lesson #4

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Wednesday, August 09, 2006

part 3

part 2

all about forex part 1

Tuesday, August 08, 2006

The Fanatic Cook

Sunday, August 06, 2006

who am i?

on the threshold

Thursday, August 03, 2006

my rebirth

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