The MegaBreaker EA (Complimentary Gift)

world class trading stars

Hi everyone. Here is the next gift from the World  Class Trading Stars crew. This time it comes in the form of an EA called “MegaBreaker.”

Click here to get your free copy

Here are a few things that it does:

– You can draw just about any common chart pattern,
and MegaBreaker will enter a trade for you, as
though you did it yourself.

– It will continually tell you at what point it will
enter a trade.

– If you prefer to enter trades by yourself, it will
show an alert when the point you choose has been

– For range trades, you can specify how many bars you
want the range to cover.

– You can specify how many PIPS above or below the
line you want to enter a trade.

– You set it to enter a trade between two lines, so
that it buys above the top line, or sells below the
lower line.

– You can set the lot size to use.

– You can trail your stop loss by an amount, or
number of bars.

– You can drag a line to a different point and
everything will automatically adjust. Your stop loss
and take profit will move as the line moves.

– You can also tell it to close all orders after a
certain number of bars.

Click here to get your free copy

Don’t forget to leave a comment after you try out MegaBreaker as you could win an iPad2, a Dell Laptop, a telescope or a Kindle!


The World Class Trading Stars guys are giving away a trading system

world class trading stars

Hi everyone. I just wanted to pass along the news that the crew behind The World Class Trading Stars are now giving away a trading system! You can get your copy of their “Triple Shot Forex Trading” system right now by following the link below:

This trading system is based on the same system that won one of the biggest trading competitions in the world, with 636.92% in one month.

There is other free stuff that the World Class Trading Stars are sending your way, so be sure to keep an eye out for the next blog post or e-mail (if you’re on my mailing list).


Fiddling While the Euro Burns

By: John Browne
Senior Market Strategist, Euro Pacific Capital, Inc.

Last week, eurozone finance ministers postponed, yet again, the most difficult decisions on the Greek debt crisis. The assembled powers could have forced an orderly Greek default or they could have taken steps to push Greece out of the union. Instead, they simply bought time until the next major rollover of Greek debt – which comes due in November. I don’t expect much to come from the brief respite.

Much of the prevarication can be attributed to political disagreement in Germany, where some see the current crisis not only as a means to further European unification, but also as an opportunity to extend German influence throughout the continent. Other Germans, particularly those in the south, see the crisis as a means to roll back the flawed structure of the eurozone. The resulting indecision is allowing adverse sentiment to set a time-bomb under the euro.

In truth, recovery has no chance of taking hold without a clear idea of what Europe may look like politically in a few years. Today, there is a desperate need for a momentous decision by Germany.

Rest assured these are problems that can’t be swept under the rug. Greece now has a debt-to-GDP ratio of 173 percent. Simply put, it is hopelessly bankrupt. The ‘troika’ of the EU, ESM, and IMF are demanding that Greece accept more austerity in return for more funding. But, already, austerity is reducing Greek GDP and tax revenues while creating civil unrest and a greater demand for social security payments.

The austerity medicine in Greece is also creating similar problems for Italy and Spain, whose economies are much, much larger. Spain has twice the outstanding debt of Greece, Ireland, and Portugal combined. Italy has five times that amount. The sums needed to rescue Spain or Italy would stretch even Germany to the limit of solvency.

Already, the euro is falling fast even against the deeply flawed US dollar. As I see it, there are three possible conclusions to the crisis:

1. The euro splits into two parts: one for the cash-generating northern countries and one for the Mediterranean countries, possibly including France. This two-tiered system would take into account the differences in economic reality for the two regions and would provide much more financial flexibility.

2. Some of the Club Med countries are forced to leave the euro, re-issue their own currencies, and attempt to generate earnings to repay debt.

3. The euro ceases to exist. As the world’s second currency, this would result in a short-term stampede into other fiat currencies such as the yen, Swiss franc, Norwegian krone, Australian and Canadian dollars, even sterling, but predominately into the US dollar.

Any one of these outcomes is preferable to the unsustainable status quo. But an orderly Greek default combined with an exit from the euro would be the best strategy to move forward. Unfortunately, this option is unpalatable to internationalist politicians, who want to maintain the pan-European government, and the banking system, which is choking on bad sovereign debt. Still, talk is growing.

If a default does come, the big question is how much creditors could lose through debt haircuts. Recently it has become clear that the 21 percent haircuts for private holders of Greek debt, which had been agreed on in July, may have to be deepened to 40 or even 50 percent. However, calculations will need to me made as to how much losses can be accepted by the banks before their insolvency threatens the solvency of their own nations. Very few observers know for sure how much bad debt lurks on the balance sheets of the big European banks. This question alone threatens further and more dramatic contagion.

Eurozone governments, in particular Germany, France, and Belgium, have long ‘persuaded’ their banks to load up on PIIGS sovereign debt. Now, unsurprisingly, a PIIGS default threatens German, French, and Belgian banks. France has some of the largest banks, all carrying unknown amounts of these toxic assets. BNP, Credit Agricol, and Societé Géneral alone have combined assets (of all sorts) of some $7 trillion. This staggering sum is equal to about half the US Treasury’s massive debt. However, the French economy is less than one fifth the size of the US economy. If losses related to bad sovereign debt were to push any of these banks into default, the ramifications could be dire for France.

The world’s immediate economic future rests with a prompt decision by Germany to abandon its dreams of empire and cut off funding for the PIIGS. Such a move would protect Germans from unlimited bailout requests, save the people of the PIIGS from unnecessarily harsh austerity measures, and provide a needed reprieve for the euro and international fiat currencies. For an even more in depth look at the prospects of international currencies, download Peter Schiff and Axel Merk’s Five Favorite Currencies for the Next Five Years.

Playing the China Blame Game – The Currencies to Trade if the U.S. Launches Another Trade War

By Evaldo Albuquerque, Editor, Exotic FX Alert

While the entire world is focused on the debt crisis in Europe, there’s another crisis quietly erupting here in the U.S. that could be just as dangerous.

It has the potential to tip the whole global economy back into recession.

We’ve seen it happen before, about 80 years ago.

After unemployment soared to 9% back in 1930, politicians were under a lot of pressure to create jobs. So the U.S. government implemented the Tariff act of 1930. This new act raised tariffs on imported goods to protect Americans’ jobs from foreign competitors.

The result? Seventeen countries responded with their own tariff plans. Suddenly, we had a trade war on our hands.

This trade war caused a collapse in global trade, and ended up deepening the global depression and increasing unemployment.

Now the U.S. Senate could make the same mistake their predecessors made during the Great Depression.

While this would be disastrous to the global economy, it would also provide some of the best currency trades in emerging market currencies next year. It all depends on what Congress does next…

The Bill that Would Guarantee a
Global Recession

This past Monday, the U.S. Senate voted to open debate on a bill that would impose tariffs on imports from countries with undervalued currencies, such as China.

In response, the Chinese government quickly warned this would lead to a trading war. As the Chinese Foreign Ministry said, this bill “will severely upset China-U.S. economic and trade relations.”

In other words, China is telling us that if we approve the bill, it will retaliate with protectionist measures.

This is a fight where everyone loses.

The European debt crisis is getting out of control, and the U.S. is heading into another recession. A trading war between the world’s two largest economies is the last thing the global economy needs right now.

But I wouldn’t be surprised if politicians approve the bill. After all, you can always count on them to do the wrong thing.

It’s all China’s Fault

The tensions between China and the U.S. can easily escalate in the months ahead, especially if the global economy continues to slow down.

With the U.S. struggling to grow, there’s increasing pressure for politicians here to “do something.”

Instead of implementing the right policies here at home to promote job creation, Washington prefers to blame China for our problems. It’s easier to say China is stealing “American jobs” by keeping its exports cheap.

Even Bernanke is now attacking China. This week, our Fed chief told Congress: “The Chinese currency policy is blocking what might be a more normal recovery process in the global economy. It is to some extent hurting the recovery.”

After failing to help the U.S. economy with its monetary policies, the Fed is now also blaming China for our problems. Typical.

Why Slow Growth Will Intensify this Conflict

Slow global growth will also give China a reason to put a break on the recent pace of yuan appreciation.

As you can see in the chart below, China has been letting the yuan strengthen against the dollar. It has risen more than 7% against the dollar since June of 2010.

Dollar Has Been Slowly Falling Against the Chinese Yuan

But during the 2008 crisis, China stopped that process by pegging the yuan to the dollar. China did this to promote growth through cheaper exports.

If demand for Chinese exports decreases because of a global slowdown, China will most likely moderate (or even stop) the pace of their currency appreciation, just like they did in 2009. That would give U.S. politicians another reason to go ahead with the bill.

Trading War Would Be Bad for Economy,
but Great for Traders

It’s too early to tell if politicians will be dumb enough to implement that bill, and ignite a trading war with China. But this event is definitely worth monitoring.

If the U.S. starts to impose tariffs on Chinese imported goods, China will retaliate. Things will escalate into a trading war, hurting the global economy, much like what happened in 1930.

While this would be bad news for economies, it would be good news for currency traders, especially those who focus on emerging market currencies.

A trading war would add to the long list of problems the global economy is facing. When any crisis like this hits the markets, currency traders tend to dump emerging market currencies and rush for the “safe haven” dollar.

Should this bill pass, watch for the dollar to rally against emerging market currencies.   These smaller exotic currencies would get crushed in this type of trading environment.

For the sake of the global economy, I hope politicians here in the U.S. do the right thing and reject that bill. But if they approve it, I will be ready to profit from it by shorting emerging market currencies against the dollar.

Best Regards,

Evaldo Albuquerque, Editor
Exotic FX Alert

CFTC orders a broker to pay over 14,000,000 dollars

Forex Capital Markets LLC Ordered to Pay More Than $14.2 Million to Settle CFTC Charge.

Firm also sanctioned for failing to promptly produce certain records to the CFTC’s Division of Enforcement.
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an order filing and simultaneously settling charges that Forex Capital Markets LLC (FXCM) failed to supervise diligently its personnel’s handling of more than 57,000 customer accounts that traded on FXCM’s forex trading platforms. FXCM is a registered retail foreign exchange dealer and futures commission merchant headquartered in New York, N.Y. The order also settles charges that FXCM failed to produce certain records promptly to the CFTC’s Division of Enforcement during its investigation.

The CFTC order requires FXCM to pay a $6 million civil monetary penalty and restitution of $8,261,937 to its customers and former customers. In addition, the CFTC order requires FXCM to retain, at its own expense, a monitor to review for three years: (1) its trade execution practices and policies as they relate to the change in price between the time the customer places the order and the time the order is executed by FXCM; and (2) its compliance with its restitution obligation.

According to the CFTC order, from at least June 18, 2008 until December 17, 2010, FXCM failed to supervise diligently the handling of customer accounts traded on the FXCM platforms by its officers, employees, and agents with respect to changes in price between order placement and execution on both market orders and margin liquidation orders. The order finds that FXCM’s failure prevented its customers from receiving the benefit of price movements in customers’ favor, but allowed its customers to suffer detrimental price movements. The CFTC order finds that had FXCM diligently supervised its personnel, FXCM would have discovered these problems with its trade integrity and would have had the opportunity to correct them before its customers were deprived of, and FXCM benefitted by, approximately $8,261,937.

Further, the CFTC order finds that FXCM failed to produce certain records promptly in its capacity as a CFTC registrant and thereby required the CFTC to issue a subpoena to attempt to obtain required records from FXCM.

The CFTC thanks the National Futures Association (NFA) for its assistance. On August 12, 2011, the NFA issued a Decision imposing a $2 million monetary sanction against FXCM in settlement of an NFA action (NFA Case No. 11-BCC-016) involving some of the same practices identified in the CFTC order.

CFTC Division of Enforcement staff members responsible for this case are Charles Marvine, Christopher Reed, Rachel Hayes, Stephen Turley, Rick Glaser, and Richard Wagner.

Media Contacts
Dennis Holden

EDIT: Original CFTC Press Release is here…

FXCM’s response can be found here:

FXCM US Reaches Settlement with the CFTC for $6 Million

Japanese Charting secret recently ‘programmed’ (free download)

I just installed this plugin, that you’ve gotta see.

Brick Charts Advanced

From what I’ve seen, the Japanese have been holding onto
(and protecting) a charting secret that’s kept a select
few ‘keepers’ of this method heavily in the black…

But at the time, it was all being done MANUALLY.

Not anymore, thanks to these programmers!

It eliminates choppy markets and price action to basically
smooth out the charts for easy reading… and TRADING!

Read more and download here


P.S. When I got mine, I was told about an extra video
sequence, make sure you get it too:

Review it here

You don’t have to hand chart this anymore: (download)

Did you know there’s an old Japanese charting
technique that’s so consistent, it actually WIPES away
market noise?

Sadly, it’s also a technique that had to be
HAND-WRITTEN manually.

That is, until some crazy genius Russian programmers
got a hold of it and turned it into an push-button
plug-in that installs…


And I’m totally loving it (clean charts are a
Godsend!). Anyways, it had such a cool story, I had to
tell you:

Click here to get this plug-in, too


P.S. Not everyone can trade this – in fact, MetaTrader
users still don’t even have the option…

Until now!