Hello all,
From time to time, I will be posting some a system that other coaches may have developed, heard of, or even tested. I want you to take the opportunity and test it yourself and see how it works on a particular pair of your choosing. As a word of caution, I want to point [...]
Archive for the ‘Forex basics’ Category
System Trading
Posted in Education, Forex basics, Mini-lesson tutorials, Systems, Tools, tagged cci, New System, SMA, System Trading on April 10, 2008 | 5 Comments »
Your Currency Trading & Investing Future Foretold: 20 Predictions for the New Year
Posted in Forex basics, Money management, Psychology, tagged nostradamus, nostrashayus, predictions, trading advice, trends on March 11, 2008 | 3 Comments »
* Contributed by Investools coach Shay Aslett
Happy New Year! (Well, it’s only 20% gone - we still have 80% of the year) In this article, I’m going to predict your future and forecast exactly what kind of results you’re going to get in the next 12 months. Sylvia Browne, step aside… [...]
Exotics, pegs and other risque’ sounding FX stuff (mini-lesson time!)
Posted in Forex basics, Mini-lesson tutorials, U.S. dollar, tagged currency peg, exotics, forex, macroeconomics, peg on December 17, 2007 | 1 Comment »
One of you wrote in asking me this:
Thanks for the review of the exotics. I’ve got a question for you: I’ve heard some of these currencies (the HKD, anyway, I believe) being referred to as “pegged” to the US Dollar. I’d [...]
The subtleties of well-worded economic releases
Posted in Forex basics, tagged economic data, forex, language, u.s. on November 14, 2007 | No Comments »
Economic data drive prices when there is a surprise over what is expected. Another surprise is when an accompanying press release or the text in the data itself reveals a posturing by “the man”.
Deborah Solomon in Monday’s Wall Street Journal did a great job giving an example of this. I loved this example.
In 1997, [...]
What to expect tomorrow (psst: the Fed meeting), how to trade it
Posted in Fed, Forex basics, Risk, U.S. dollar, tagged announcement, ben bernanke, dollar, Fed, fed meeting, federal reserve, forex, interest rates, rate cut, Risk on October 30, 2007 | No Comments »
Tomorrow the Fed steals the show announcing its latest decision on interest rates. Forex basics recap: high rates are good for the dollar, low bad. Low are good for stocks, and stocks still have a leadership cap on, meaning the more rate cuts the better for most currencies out there (the carry, the higher [...]
FX open house this week … and you don’t want to miss it
Posted in Education, Forex basics, Open House Webex, tagged Education, forex, forex basics, open house, david settle on October 28, 2007 | No Comments »
Once again: this week David Settle - a friend and fellow analyst on our site - will be hosting a guided tour on Thursday of the Investools FX site during a 90 minute Open House session. This is a Webex session, so you have the luxury of seeing, hearing and interacting (in the last half [...]
What is market “liquidity” anyway?
Posted in Carry trade, Forex basics, tagged bank of japan, carry, Carry trade, forex, liquidity on October 19, 2007 | No Comments »
A quick mention of what this is since we brought it up below. Wikipedia has a nice definition of liquidity as we mean it:
The essential characteristic of a liquid market is that there are ready and willing buyers and sellers at all times
With the Bank of Japan keeping rates soooooo low, investors can borrow [...]
Liquidity, Chuck Norris, and carry trades
Posted in Carry trade, Forex basics, Funny, tagged carry, Carry trade, chuck norris kicks butt, forex, stocks on October 19, 2007 | No Comments »
What do these have in common? I’m not sure apart from a funny Blooomsberg article I came across. the author draws parallels between Chuck and the financial markets, and www.chucknorrisfacts.com which is a hillarious website of good humored Chuck Norris jokes. Here’s the first four from the article by Mark Gilbert:
Here, then, is the [...]
What is the VIX telling us about our FX trades?
Posted in Forex basics, Risk, U.S. stocks, tagged cboe volatility index, contrarian, vix, volatility on October 16, 2007 | No Comments »
I wanted to chip in with what Brandon said below. The CBOE Volatility Index measures implied volatility in the stock market. It is a risk-meter. When it rises, so does fear. When it falls, complacency (or greed) rises. Notice the spike in July and August and how that corresponded with carry trades imploding.
I keep [...]
The aussie and the challenges of its own appreciation
Posted in Australian dollar, Forex basics, Funny, tagged aud, aussie, Australian dollar, currencies, forex, Funny, high dollar, kangaroo on October 14, 2007 | No Comments »
More on the effects of a currency appreciation this time, here’s a good write-up from a South African newspaper on how the high value of the aussie is affecting the Australian economy.
To sum it up: its exports are more expensive to others, so Australian companies need to be more competitive. If you tune in [...]
FX open house tonight … and you don’t want to miss it
Posted in Forex basics, tagged forex basics, free on October 4, 2007 | No Comments »
Tonight Blake Young - a good friend & Investools FX’s lead instructor - will be hosting a guided tour of the Investools FX site during a 90 minute Open House session. This is a Webex session, so you have the luxury of seeing, hearing and interacting (in the last half hour, Blake opens [...]
What exactly does a weak dollar mean?
Posted in Forex basics, U.S. dollar, tagged business, China, currencies, dollar, Fed, forex, fx, usd, yuan on October 4, 2007 | No Comments »
If sometimes you wonder what exactly currency devaluations mean, and their ramifications, look no further: NPR did a great write up on this today called “Is a Weak Dollar Really so Terrible?” Some excerpts - many more in the article and a good read, especially if you are trying to get your mind around these [...]
