Thursday, April 23, 2009

Theory of International Trade

With international trade, as with so many other human interactions, people tend first to ask how it 'should' work before getting interested in how it 'actually' works.

The systematic study of international trade emerged in the era of mercantilist economics--- approximately the 16th through 18th centuries in Europe, as crude set of hypothesis about how nations should conduct their trade. It was felt that each nation's self-interest was served by encouraging its exports and discouraging its imports. The mercantilist view began to yield, after the late 18th century, to a free-trade view, a view arguing that a nation's self-interest would both be served best by just letting people buy and sell as they saw fit.

The main hypothesis continued to be one about how trade should be conducted.

Economists studying trade soon found that the issue of what trade policy was best could not be resolved until there was a firmer theory of what made trade flow in the directions it did. On the surface level, the answer might seem obvious: people will trade if they find it privately comfortable, but profitable for whom, for everybody?

If not for everybody, then how do we know that the gains given to some people compensate the losses it brings to others? If one country gains from trade, does it drop its trading influence? These immediate questions illustrate that the answer to what should be cannot be divorced for the task of explaining what was in question though. We cannot know how a nation or an economic group within a nation gains or loses from trade until we know what makes some people find trading profitable, and what goods they will do business on, if given the chance.

To put the point in terms of the recurring concern felt in the United States about trade with Japan: knowing is impossible who would gain or lose, by cutting down the deal with the latter until we know why its is that Japan sells steel, autos, and other merchandise to the United States in exchange for aircraft, grain, and such.

Only when we know why trading proves advantageous and whose profits are tied to trade, can we discern who would be affected by policies restricting it. The basis for trade, so far as supply is concerned, is found in differences in comparative costs. A country may be more efficient than another, as measured by factor inputs per unit of output, in the production of every possible commodity; but so long as it is not equally more efficient in every product, a basis for trade exists.

Saturday, April 11, 2009

Theory to trade

  • Dual And Multiple Exchange Rates
  • The Euro/Swiss Franc Relationship
  • Bond Spreads: A Leading Indicator For Forex
  • Commodity Prices And Currency Movements
  • Global Trade And The Currency Market
  • Forex Leverage: A Double-Edged Sword
  • Seasonality In The Forex Market

strategies and ideas under development

That's probably that missing link we needed for our website - a page with ideas and strategies under development!
While making a complete well balanced trading system always challenging for any trader either for a beginner or a pro, almost all of us have some bright ideas about specific parts of Forex trading routine: good entries, ideal exits, excellent stops etc.On behalf of our Team I'd like to welcome you to join our discussion area where we are going to look at new trading ideas and innovative approaches, make notes and conduct testing, and, of course, share trading strategies that are still under development.Should I add that I'm truly excited about this new opportunity, because I also have my not-so-old-not-so-new notebook, where I carefully wrote down interesting ideas which sparked in my mind over the time.

Sunday, April 5, 2009

Risk

If you are taking risk, you need to control it - risk as much as 10% per trade, but increase your chances of success by:
1. Buying options at or in the money, to give you staying power - and prevent yourself from getting stopped out.
Many traders lose, not because they were wrong in market direction - they just were stopped out by a volatile counter move - and options will give you staying power.
2. Many traders start trailing their stops to close, they then get stopped out ' but the trade runs on to make spectacular gains. Don't fall into this trap - keep your stop in its original position - until the move is well in profit, before moving it up.
You're looking to make money fast, and you're trading selectively - so have the guts to go for a trade when it looks good - and milk it for all it's worth.

Thursday, March 26, 2009

1. Accept Volatility and Risk Cheerfully
All good FOREX trading systems incorporate volatility.
You can't have a profitable FOREX trading method without taking calculated risks, and taking losses - if you can't accept risk, then don't trade.
Many traders back away from a market because it's too risky - however, risk also means reward! If you are a trader who doesn't like volatility, then go and find something else to do, because trading can be risky.
Drawdowns are part of trading; it's volatile markets that make FOREX trading fun and highly profitable.
To the well-informed FOREX trader, a drawdown is not something to fear, but something to enjoy.
Remember: volatility = big opportunity!
2. Trade Infrequently
Many traders trade frequently and always like to be in the market. They think that in FOREX trading if they are not in the market, they will miss a move, or that by trading more frequently, they will make money - wrong!
The big moves in FOREX trading, with the best risk to reward, come a few times a year, and you should trade infrequently.
Focus on the trades that make the really big gains
3. Don't Diversify
Diversification is an accepted wisdom, believed by most investors in Forex trading, but it won't make you money fast, - it will do the exact opposite.
4. Money Management
So far, you may think that we are being a little rash, but this is not the case.
We are focusing on the BIG opportunities that allow us to make meaningful gains, and this is actually, where money management becomes so important.
5. Understand the Power of Compound Growth
IN FOREX trading the way to make money fast, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $20,000 account, to over a million dollars, in under 10 years.

Trading of Forex 24 hour

Welcome to the home of 24 hour forex trading
New 24X7 Forex Market Trading website featuring 24 hour stock trading 24-hour daytrading and 24-hours webtrading covering the U.S. and International stock market, forex currencies & futures traders!
Forex Trading - Five Tips to Make Money Fast!
This article is all about FOREX trading to make you rich - and we're going to give some alternatives to conventional investment wisdom. Why' - Because most traders in FOREX follow the norm and make average gains - while this article is about making spectacular gains from FOREX Trading and making money fast!
The Aim
Here we are going to assume you know how to trade, and you have a methodology for FOREX trading you are happy with, and can apply with discipline.
What we are going to show you here, is how to change your system from making average gains, to making spectacular gains, with simple changes in trade selection, money management, and mind set.
FOREX trading offers the opportunity to make money fast - so lets examine how it can be done.

Thursday, March 19, 2009

HOW TO READ FOREX

  1. Forex Price Charts, what DO they mean and HOW to use them?
  2. Important numerous facts as discipline, trading rules, not being greedy etc., but one of the most important things is:
  3. LEARN to read the charts as Charts represent the lifeblood of the market.