Alan’s Forex Blog

Currency Market Moves Because Of Fundamental News Releases!

Taking advantage of fundamentals is ALL that separates the pro trader from the wannabes.

And the best part is… You don’t need to be an economists or have a degree in finance to make money with news.

Take two traders, both just beginners, both took the same beginner’s Forex course and learned the basics of trading. Both have similar education and background, and both love trading and their goals are to trade for living for the rest of their lives. Let’s call them “John” and “Henry”.

John spends all his time studying the chart, he experiments with new indicators, new parameters, and constantly trying out new trade ideas. He gets his emotions in line. But he never realizes the fundamental factor to Forex trading… as a matter of fact, he purposely ignores news releases and he never makes the simple correction that will make his trades profitable.

John, later in his life, is the guy you might find frequenting discussion forums, public online trade (chat) rooms, posting some amazing trades, but never ever show you his live account statement… that is, if he even have a live account at this point.

Henry, on the other hand, early on senses that there must be more to Forex trading than just looking at the chart. He may not understand the fundamental news effect to the world economy, but he makes a simple adjustment in the way he looks at trading. Despite the warning from die-hard technical traders to ignore the news, he trusts his intuition and does what’s right… not what people told him.

Henry becomes a professional trader. You never see him frequenting Forex discussion forums, or online trade rooms, because he’s too busy making a fortune in his live account…

This is NOT a bogus comparison. You CANNOT become a successful Forex trader as long as you think and act like 95% of Forex traders, who end up losing.

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Hey everyone. Here are the top ZuluTrade forex trading signal providers for this week ending Friday November 07, 2008. My account is up 181 pips. It may not be a lot for some, but considering the huge volatility that manifested itself this week I am happy with anything that is not a loss. Here are the top performers:

Top Signal Providers for this week:

fx.fr	1067 pips	$11,773.46
Probability Based Wave-5	22 pips	$220.25
AllForexTraders	268 pips	$2,709.48
ASC Forex	619 pips	$4,389.54
rainbowbrite	430 pips	$4,308.14

Hello everyone. In my previous postings regarding the Forex Avenger mechanical forex trading system I forgot to mention that you can view several videos which show how the system works in a live trading environment. Checkout the videos by clicking on the image below:

Cheers, and happy trading everyone!
Alan
http://alansmoneyblog.com

FXDD Today combines end of day prices, a graphical preview of the economic releases for the next trading day, and a Market Recap of the current days key activities in a concise one page format (in PDF).  It is designed to be used through the trading day and also as a historical record for review. We hope you find it to be useful and helps you become more informed, so you can be a better trader

CLICK HERE FOR TODAYS COPY OF FXDD TODAY

If you’re like most investors, you’ve been nearly brainwashed with conventional market “wisdom” that stocks are the best way to grow your portfolio.

You would be crazy not to have your money in the markets, right?

But when markets drop, as we’ve seen in this credit crisis, it’s amazing how quickly the story changes.

Steve Hochberg and Pete Kendall, editors of Elliott Wave International’s Financial Forecast, challenged the notion of stocks’ superiority years before this latest downturn.

Learn how cash has been king – and will remain so – far longer than the latest news headlines may have you believe in this free excerpt from Elliott Wave International’s Credit Crisis Survival Kit.

Elliott Wave International has also made the full Credit Crisis Survival Kit available free for a limited time. In addition to this excerpt, it contains 14 other articles, reports, and videos that reveal how to survive and prosper during the credit crisis. Visit EWI to download the kit, free.

Cash’s Invisible Reign Made Visible
[excerpted from Elliott Wave Financial Forecast, August 2008]

With respect to cash and its status as the preeminent financial asset, however, we are starting to wonder if investors will ever come around to our point of view, which, as we explained in the March special section, is that there are times when “the phrase ‘focus on the long term’ means “get out and wait.’” As we also pointed out, the last eight years are clearly one of these times, as cash has outperformed all three major stock averages over this period. A July 3 USA Today article shows how this outlook is actually becoming more farsighted as the bear market intensifies:

3-month Treasuries Beat
S&P 500 for past 10 Years

The article says, “Investors who bought stocks for the long run are finding out just how long the long run can be.” But the farther back in time cash’s dominance stretches and the rockier the stock market gets, the farther investors seem to move from ever taking anything off the table. After stating that “there can be times, long times, when stocks won’t beat T-bills,” a professor and popular buy-and-hold advocate is cited as “optimistic that the next 10 years will be better than the past decade.” In March EWFF stated, “Cash will continue to outperform until stocks are no longer fashionable.” There is no sign that such a condition is even close to happening.

It’s somewhat amazing that cash is not capturing anyone’s fancy because a tremendous society-wide thirst for cash is spreading fast. “In a deflation,” the Elliott Wave Financial Forecast has stated, “Rule No. 1 is to unload everything that isn’t nailed down. Rule No. 2 is to sell whatever everything remaining is nailed to.” The banking system is surely deflating, because, echoing Elliott Wave Financial Forecast’s wording again, “Desperate American Banks Are Selling Everything That Isn’t Nailed Down.” SunTrust is selling its stock in Coca-Cola, an asset the bank held for 90 years. Merrill Lynch sold its founding stake in Bloomberg as well as various other subsidiaries.

Meanwhile, “Americans are selling prized possessions online and at flea markets at alarming rates.” Pawnshops and auction sites are booming. At Craigslist.org, the number of for-sale listings soared 70% in eight months. This fits with our review of Craigslist’s prospects when it was getting started in 2005: “This is just the set-up phase. Once the global garage sale really gets rolling, truly astounding volumes of dirt-cheap goods will be available on-line and elsewhere.” The global garage sale is on. The chart of the U.S. savings rate shows that the bull market in cash has come to life.

A 30-year downtrend in savings rates ended at minus 2.3% in August 2005. In May 2008, the savings rate skyrocketed to 5%. This jolt may be somewhat overstated due to the arrival of the government’s stimulus checks, but the burst should be the start of a critical new mindset among consumers. When the government showered the economy with $600 checks, many did something they never would have thought of through most of the bull market: They put the money in the bank, which is exactly what the administration did not want. In fact, federal, state and local governments are desperate for the tax revenue that a little ripple-effect spending would have generated.

According to the National Conference of State Legislatures, states must close a $40 billion shortfall in the current fiscal year. “The problem today is that tax revenue is vanishing,” says a story about the sudden appearance of the worst fiscal crisis in New York since 1975. Even cities like East Hampton, New York, where someone paid $103 million for an oceanfront house last year, are out of money. “Nobody understands how it happened,” says one resident. The pages of this newsletter show otherwise. If we are right, a deflationary decline is depleting and destroying cash flows in novel new ways that no one alive has experienced before.

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The previous analysis was excerpted from Elliott Wave International’s Credit Crisis Survival Kit. The kit, featuring 15 free resources to help you survive and prosper during the credit crisis, is available free. Visit EWI to download the kit, free.

Hello everyone. I just found out that one of the brokers that I use, FXDD, now offers spot gold and spot silver trading capabilities. This feature is long overdue as many other forex brokers already offer this capability. With so many retail forex brokers out there the competition is tough and offering something beyond just your standard currency pairs, ie “the majors,” is necessary to remain competitive. I think FXDD definitely made the right decision.

Facts about Spot Gold Trading

• Pair symbol - XAU/USD
• Gold is measured in Troy ounces
• 1 standard lot is 100 Troy ounces
• 1 mini lot is 10 Troy ounces

Facts about Spot Silver Trading

• Pair symbol - XAG/USD
• Silver is measured in standard ounces
• 1 standard lot is 1,000 ounces
• 1 mini lot is 100 ounces

To find more check out FXDD’s homepage at: http://www.fxdd.com

Cheers, and happy trading
Alan
http://alansforexblog.com

FXDD Today combines end of day prices, a graphical preview of the economic releases for the next trading day, and a Market Recap of the current days key activities in a concise one page format in PDF format  It is designed to be used through the trading day and also as a historical record for review. We hope you find it to be useful and helps you become more informed, so you can be a better trader

CLICK HERE FOR TODAYS COPY OF FXDD TODAY