2Bull Forex Blog

Evidently, Obama has more extensive resume than I previously thought. Heck, I just thought he was the President. Oh no! He doesn’t stop there.

If fact, he’s one of the few Presidents in our nation’s history that is comfortable being a stock analyst. (He recently said stocks were a good buy back on March 3rd).

But now his resume expands even further. That’s right! He’s not just President and “Stock Analyst” but he’s also a Currency Analyst too now.

(Yeah, I guess CNBC just needs to give him his own show. In fact, we don’t even need economists anymore now that we’ve got Obama. We can save lots of money there by firing all of the economists that the government hires!)

In last night’s address, Obama said that the “dollar is extraordinarily strong because investors are confident in the ability of the U.S. to lead a worldwide recovery”…and he went on to reject calls for a global currency.

This latter comment was directed at China. You’ll remember that Geithner said that “Obama thinks China is a currency manipulator” (referring to their yuan)….that was Round 1 of Obama vs. China. Now we’re in Round 2.

China’s calling for a “super reserve currency” as the Fed and Treasury stack on trillions of dollars in U.S. debt and prepare to buy $300 billion of long term U.S. treasuries, thus driving the yields down artificially low.

Well, since China sees that we’re driving down the yield on the instrument that they hold the most of, and they see us stacking on debt and wonder if we have the ability to honor our obligations…can you blame them for considering the thought of “wanting another currency” that isn’t laden with debt as the “world’s reserve currency”?

Don’t get me wrong…I’m a red blooded American and love the fact that we hold the spot in the world to where we are the world’s reserve currency. However, the latest moves from the Fed and Treasury are bent on debasing our currency and not strengthening it.

So it’s a pathetic thing when Obama says our dollar is strong and gives that lame excuse of a reason when he knows that at the same time, the Fed and Treasury are about to make an “all out assault” on the dollar in order to artificially prop up stocks.

But don’t just take my word for it. You see, he knows most Americans never look at a chart of the dollar.

Upon looking at the chart, I think you can see why China is worried and why Obama isn’t as good of a currency analyst as he thinks he is.

I see uptrend line after uptrend line broken (blue lines) and lower highs which shows less conviction in buying and more conviction in selling the dollar at this point. Amazingly, he’s probably “spouted off” just in time for a top to form!

Many Obama should stick to his “day job” since it seems like it should keep him busy enough.

China may not get its wishes, but their comments certainly put “another dent” in the dollar!

While I don’t think that China will get their wish for a new global reserve currency, I do see where they are coming from and feel their pain.

Unfortunately, our country makes such bad decisions at the government level, that there will probably come a day where we “go the way of Rome”. It is possible that we may see us lose the “world’s reserve currency” status in our lifetime.

A country can never prosper long term by debasing its currency. And if you look at a 30 year chart of the dollar, you can only come to the conclusion that our government is bent on devaluing the dollar long term. This will only drive up inflation for “Main Street” and eventually cause a lack of confidence in all of the foreigners that we are dependent upon to buy our debt (Treasuries).

Once that implodes, we’re in big trouble! I only hope that comes later rather than sooner!

Ever since the Foreign Exchange market began, there had been a number of different theories regarding this financial market and how it moves. Each can be used to understand the forex market better in hopes of improving one’s odds in trading. One popular theory is known as the Elliot Wave Theory.

The Elliot Wave Theory was conceived about seventy or more years ago with the stock market. It was observed that the market movements on charts can be described as waves which reoccur every now and then. The theory goes that there’s five short waves that appear which are caused by different factors with one effect. For example, a group of people suddenly purchases a certain good which results in a gradual increase shown on charts which would look like a series of waves; after this, a series of three more waves follow but going to the opposite direction which is known as the corrective waves.

This theory may have started with the stock market but it was proven that this theory is also applicable to the forex market. This can be used so that the trader can understand what’s going on with the market right now in order to help him or her with making a decision. Understanding how the market moves is important when it comes to forex trading because you simply cannot rely on luck when it comes to this financial market. A lot of people have already lost their money in this market due to common mistakes; this can be avoided simply by understanding how the forex market moves.

FAP Turbo is the name of the newest Forex robot. While doing my research for the FAP Turbo review I discovered that many people hadn’t heard of a Forex robot. A Forex robot is a computer program that analyses the Forex Markets looking for previously defined conditions in selected Forex markets. The program then automatically enters trades based on this information for the owner. The program then watches for the predefined conditions for exiting trades and automatically exits the trades when appropriate.

FAP Turbo, like other Forex robots, has a great advantage over trading systems that are entered by humans. If you are trading a system you simply have to leave emotions out of the equation. I have witnessed the effects of emotions in trading many times. As a matter of fact, I personally have lost money due to emotional knee jerk reactions. These can be devastating to your bottom line; however, FAP Turbo removes the possibility of emotional reactions and their consequences.

FAP Turbo works with Metatrader 4, so your Forex account needs to be with one of the many companies that uses this software. Metatrader 4 is a user friendly trading platform, but it doesn’t really matter since the software will be doing your trading for you.

One main concern about Forex robots is that your computer needs to be on 24/7. And if your system crashes or you need to restart for any reason your trading could be in jeopardy. In preparing my FAP Turbo review I was very excited to see that they offer a great solution to this challenge. They offer the option of having the program virtually hosted for you and operated by you remotely. I highly recommend this option if you decide to invest in FAP Turbo.

The underlying success of any Forex robot is how the program decides when to take trades and when to exit trades. In researching the FAP Turbo review I was particularly interested in how it determined when to take trades and when to exit trades. The underlying logic in the system is too involved to explain here, but it is based on very sound principles.

Positive results are the bottom line to any Forex system.

My FAP Turbo Review is this is a great product for anyone interested in making money with the Forex markets. It is simple enough to the beginner use and powerful enough for any level of Forex trader.

FAP Turbo has 5 quick video tutorials that run from 3-7 minutes so its easy to setup your robot. The videos are extremely professionally done.

FAP Turbo also offers telephone support if you have any questions on the setup and trading which is extremely cool and very rare for a program at this price.

In share market, technical indicators in the stock market are quite worthwhile. Generally, they are classified into two categories; leading and lagging indicators. The first category is supposed to lead the price action, and the second one follows the price action. In reality, all the technical indicators are the lagging indicators, as they can’t start their process until the price action has been established.

The first thing to ensure in technical indicators is to figure out the psychology of traders. You must try to point out where they are going to sell, where and when they are going to purchase and evaluate when they are interested or uninterested.

There are a large number of technical indicators that tell us when to enter and when to exist. And, if you know the process of making a right time of entry and exist, you can make huge profits. That is why technical indicators hold the vital position in the stock market.

Technical indicator is the basis of technical analysis. Technical stock Analysis is a financial market technique that claims a future forecast in the direction of security. It uses the study of the post market data, price and volume. It is most commonly used among financial professionals and traders. Technical analysis works only on the assumption of price and volume that are its two most important factors determining the future and behavior of a particular stock.

The reason why volume and price are important aspects of stock technical indicators is because they are used in confirming chart patterns and trends. Price movement with relatively high volume indicates the large price movement. Therefore, you must examine the volume, if you are looking at a large price movement. Volume and price should move with the trend. There should be direct relationship between the volume and price. Like, if prices are increasing, then volume should also be increased. And, again if prices are falling, volume should decrease.

To assess a sign of weakness in the trend, you must see the relationship between the volume and the price movements. If it’s deteriorating it implies a clear cut sign of downtrend.

These days the strange behavior of the stock market is giving jitters to many investors and stock brokers. The majority of people want to know what made the price to pop up or go down drastically. They are tired of trying the complex chart and graphs of upward and downward movements of the share market. In this regard, technical indicators hold much significance. Even in the volatile stock market, market analysts bank on the technical analysts to go further.

However, it is not certain that all analysis made by the technical indicators are all correct. Therefore, it is not advisable to completely rely on the advice generated by the technical indicators. Marketing sentiments must also be given equal importance together with the technical analysis of the share market.

In the end, you should not blindly go for the technical analysis guidelines. Just because technical indicators are showing bright signs should not become an obvious choice of investing in them. A careful examination and going by the marketing sentiments is quite relevant.

Trading the forex spot market has been around for a long time. However, it is only in the last few years that it has become popular and accessible for the small independent trader. Most traders are used to mainly trading stocks and some trading futures. Most of the existing books on the subject of trading are geared towards these two markets simply because these two markets have been accessible to individual traders for a much longer time. Being this the case, not a lot of education exists regarding this new and exciting trading opportunity and thus arises the question which market provides better opportunities for the active trader.

Again, and as with many other issues related to trading that I write about, there is no black and white. I think it very much depends on the type of trader you are. However, in my opinion there are four important characteristics that might make forex trading more attractive to some traders.

First and most important, you have fewer markets to look at and analyze. The US stock market alone has around 10,000 actively traded stocks! This means you can concentrate on only a few currency pairs and you do not have to jump from one stock to another waiting for that good trading opportunity.

Second, the volatility and daily ranges. For a trader volatility and large daily ranges are what brings opportunity. The most active currency pairs, or as they are referred to in the industry “the majors”, have constant reliable volatility and large daily ranges. Not every single day of course, but with enough consistency as to make this a reliable factor to base your trades / trading system on. This is different with stocks. As a stock trader you constantly have to scan for opportunity. Naturally, this prevents you from being able to constantly rely on volatility and large daily ranges.

Third, many forex brokers will almost always guarantee your stop loss and limit orders. This is a great feature. Less slippage means better fills, more profit, and fewer headaches; specially if you are a day trader!

Fourth, when you trade US listed stocks you are bound by the up-tick rule when shorting. This can be a major problem causing you to suffer slippage in most cases. Not so in the forex market. Currency traders are not restricted by the up-tick rule. This means that when wanting to short, the price you see is the price you can get (of course, depending on how good your broker’s execution of orders is).

In conclusion, it seems that forex trading has brought some opportunities that are harder to find when trading stocks. I think that the above are very important issues to consider but again: it all depends what type of trader you are. That is the basis and the starting point. For example, some people don’t mind the fact that they have to constantly scan the market for good stock trading opportunities. For them, the more stocks the more probability for an opportunity that fits their stock trading system or systems. Trying, looking, testing and analyzing. That is our job as traders!