Marketing Management Assignment#1 (MKT501)

1. Which of the following markets involve decisions such as: what country to enter in, how to enter, how to adopt their product and services, and how to price?

a. Consumer markets
b. Business markets
c. Global markets
d. Government markets

2. Pictures and specification of product are added in which of the following part of the marketing plan?

a. Financial summary
b. Executive summary
c. Situation analysis
d. Appendix

3. Which of the following is known as a set of marketing tools used by the firm to pursue its marketing objectives in the target market?

a. Marketing mix
b. Promotion mix
c. Product mix
d. Offering mix

4. Needs become _________, when they are directed towards a specific object

a. Actual needs
b. Wants
c. Satisfactions
d. Demands

5. Market –oriented firms focus on:

a. Customers
b. Distributors
c. Retailers
d. Wholesalers

6. Which of the following is a supportive service?

a. Packaging
b. Labeling
c. Promotion
d. Delivery

7. Which of the following BEST describes the consumer’s preference for products that are widely

available to them?
a. Production concept
b. Marketing concept
c. Selling concept
d. Product concept

8. When a company designs the product with little or no input from customer, the company is practicing:

a. Production concept
b. Product concept
c. Selling concept
d. Marketing concept

9. All are the example of unsought goods EXCEPT:

a. Insurance policy
b. Course books
c. Encyclopedia
d. Funeral plots

10. Retailers are considered under the _____________________ environment.

a. Broad
b. Weak
c. Task
d. Competitive

11. Which of the following is a controllable factor for marketers?

a. Economy
b. Technology
c. Competition
d. Corporate culture

12. Which of the following is included in task environment?

a. Economy
b. Technology
c. Media
d. Promotion

13. The decisions regarding bundling of a product are related to:

a. Product
b. Price
c. Distribution
d. Promotion

14. Decisions regarding covering area of a product are included in which of the following marketing strategy of a market plan?

a. Product
b. Pricing
c. Promotion
d. Place

15. Which of the following is NOT a component of a marketing plan?

a. Environmental analysis
b. Marketing advantages
c. Executive summary
d. Implementation

16. Which of the following is NOT a type of vertical integration?

a. Backward vertical integration
b. Forward vertical integration
c. Balanced vertical integration
d. Unbalanced vertical integration

17. Financial summary of a marketing plan includes all EXCEPT:

a. Assumptions
b. Breakeven analysis
c. Month-by-month agenda
d. Pro-forma income statement

18. In which of the following marketing strategy companies develop the brand name, brand image and product portfolio analysis?

a. Product
b. Pricing
c. Promotion
d. Distribution

19. Which of the following is usually the target of a market challenger?

a. Market follower
b. Market leader
c. Market nicher
d. Market segment

20. Which of the following market dominance strategy involves less risk of competitive attacks?

a. Leaders
b. Challengers
c. Followers
d. Nichers

Use Full Links.

http://www.vu.edu.pk/

http://vu.rozee.pk/

http://bookshop.vu.edu.pk/

VU World Ranking:
The ranking of top 100 universities belonging to the subcontinent was released by CCHS-CSIC, Spain, according to its “Webometrics Ranking of World Universities. In the subcontinent at least 16 Pakistani universities are on the list of top 100 universities.
Out of which the Virtual University is ranked 10th. This reflects the growing awareness of the University. VU is engaged in providing international quality education in every corner of the country including the far flung areas by best faculty available in the country at a very affordable fee.

Published On: Wednesday, March 18, 2009

Introducation

The Virtual University, Pakistan’s first University based completely on modern Information and Communication Technologies, was established by the Government as a public sector, not-for-profit institution with a clear mission: to provide extremely affordable world class education to aspiring students all over the country. Using free-to-air satellite television broadcasts and the Internet, the Virtual University allows students to follow its rigorous programs regardless of their physical locations. It thus aims at alleviating the lack of capacity in the existing universities while simultaneously tackling the acute shortage of qualified professors in the country. By identifying the top Professors of the country, regardless of their institutional affiliations, and requesting them to develop and deliver hand-crafted courses, the Virtual University aims at providing the very best courses to not only its own students but also to students of all other universities in the country.
The Virtual University of Pakistan holds a Federal Charter, making its degrees recognized and accepted all over the country as well as overseas.

The University opened its virtual doors in 2002 and in a short span of time its outreach has reached over sixty cities of the country with more than a hundred associated institutions providing infrastructure support to the students. Pakistani students residing overseas in several other countries of the region are also enrolled in the University's programs.

Latest Market Report

Ringgit Rises to New Monthly High


The Malaysian ringgit reached its monthly high today on the traders’ speculations that the demand for the emerging markets’ assets will increase as the recession eases.

Korean Won Grows on Dollar’s Decline

The South Korean won, which is the outsider among the Asian currencies in the current year, rose to near the 2-month high against the U.S. dollar today as the latter declined on the lower risk-aversion mood of the currency market.

China Wants “Super-Currency” for Reserves

China’s calls for creation of the super-national currency specifically for the global foreign exchange reserves state not only the Chinese point of view that the dollar is going to depreciate in the long-term perspective but also that China is going to play a major role in the process of creation of the new global financial structure.

Yen Drops on Toxic Assets Disposal

The Japanese yen declined against the other major currencies today as the Forex traders speculated that the U.S. plan to buy out the toxic assets is going to hurt the «safe haven» currencies, spurring the risk-hungry carry trade.

Dollar Vulnerable on Bank Help Plans


The dollar continued its decline against the euro and the pound today as the currency traders believe that the bank help plans by the U.S. administration will boost the demand for the high-yielding assets, including the currencies with higher interest rates.

Dollar Ready to Post Worst Week vs. Euro

The U.S. dollar is currently heading for its worst week against the single European currency since the inception of euro on the market’s prolonged reaction to the Fed’s pledge to increase dollar liquidity.

Euro Declines in Correction Following Rally

The euro fell against the dollar and the yen today following the yesterday’s unprecedented rally as the market participant speculate that ECB will have to follow Fed’s money-printing trend.

Pound Declines before Employment Report

The Great Britain pound declined against the other major currencies today on speculations that the employment report that is scheduled for the release today will show that the situation with labor market is worsening.

Aussie Rises to New Monthly Maximums

The Australian dollar reached the new monthly maximum the Japanese yen as the stock markets signaled growth for a third day on improved earnings of the banks.

Japanese Yen Falls for Third Day against Euro

The yen declined for the third day in a row against the dollar, the euro and the pound today as the Bank of Japan decided to buy the government debt and the stock markets rose during the Asian trading session

New Zealand Dollar Surges to Monthly High

The New Zealand dollar propelled to the monthly high against the U.S. dollar today, rising for the second day, as the stock marked continued to grow globally, improving the appeal of the higher yielding currencies.

Yen Gains vs. Dollar for Third Day

The Japanese yen rose against the U.S. dollar for the third day in a row today as the global recession boosted the demand for the «safe haven» currencies, decreasing the attractiveness of the high-yielding assets

Yen Gains as Chinese Exports Slump

Yen Gains as Chinese Exports Slump

The yen rose today against the other major currencies on Forex as the China’s exports declined at a record fast pace and the largest Swiss bank reported an increased loss.

Korean Won Rises as Asian Stocks Gain

The South Korean won rose for the third day against the U.S. dollar today as some Asian stock markets showed the growth and the high-yielding currencies were favored by the traders.

World Forex Market Overview

Introduction:

The following facts and figures relate to the foreign exchange market. Much of the information is drawn from the 2007 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2007. 54 central banks and monetary authorities participated in the survey, collecting information from approximately 1280 market participants.

Excerpt from the BIS:

The 2007 survey shows an unprecedented rise in activity in traditional foreign exchange markets compared to 2004. Average daily turnover rose to $3.2 trillion in April 2007, an increase of 71% at current exchange rates and 65% at constant exchange rates...Against the background of low levels of financial market volatility and risk aversion, market participants point to a significant expansion in the activity of investor groups including hedge funds, which was partly facilitated by substantial growth in the use of prime brokerage, and retail investors...A marked increase in the levels of technical trading – most notably algorithmic trading – is also likely to have boosted turnover in the spot market...Transactions between reporting dealers and non-reporting financial institutions, such as hedge funds, mutual funds, pension funds and insurance companies, more than doubled between April 2004 and April 2007 and contributed more than half of the increase in aggregate turnover." - BIS

Structure:

*Decentralised 'interbank' market
*Main participants: Central Banks, commercial and investment banks, hedge funds, corporations & private speculators
*The free-floating currency system arose from the collapse of the Bretton Woods agreement in 1971
*Online trading began in the mid to late 1990's.


Source link:
http://www.goforex.net/forex-market-snapshot.htm

Trading Hours:


*24 hour market
*Sunday 5pm EST through Friday 4pm EST.
*Trading begins in the Asia-Pacific region followed by the Middle East, Europe, and America


Size:


*One of the largest financial markets in the world
*$3.2 trillion average daily turnover, equivalent to:
*More than 10 times the average daily turnover of global equity markets1
*More than 35 times the average daily turnover of the NYSE2
*Nearly $500 a day for every man, woman, and child on earth3
*An annual turnover more than 10 times world GDP4


The spot market accounts for just under one-third of daily turnover
1. About $280 billion - World Federation of Exchanges aggregate 2006

2. About $87 billion - World Federation of Exchanges 2006

3. Based on world population of 6.6 billion - US Census Bureau

4. About $48 trillion - World Bank 2006.





Source link:
http://www.goforex.net/forex-market-snapshot.htm

Major Markets

*The US & UK markets account for just over 50% of turnover
*Major markets: London, New York, Tokyo
*Trading activity is heaviest when major markets overlap5
*Nearly two-thirds of NY activity occurs in the morning hours while European markets are open6
5. The Foreign Exchange Market in the United States - NY Federal Reserve

6. The Foreign Exchange Market in the United States - NY Federal Reserve

Average Daily Turnover by Geographic Location

Concentration in the Banking Industry

1.12 banks account for 75% of turnover in the U.K.
2.10 banks account for 75% of turnover in the U.S.
3.3 banks account for 75% of turnover in Switzerland
4.9 banks account for 75% of turnover in Japan

Source: BIS Triennial Survey 2007

Technical Analysis

Commonly used technical indicators:

*Moving averages
*RSI
*Fibonacci retracements
*Stochastics
*MACD
*Momentum
*Bollinger bands
*Pivot point
*Elliott Wave

Currencies

The US dollar is involved in over 80% of all foreign exchange transactions, equivalent to over US$2.7 trillion per day

Currency Codes

-USD = US Dollar
-EUR = Euro
-JPY = Japanese Yen
-GBP = British Pound
-CHF = Swiss Franc
-CAD = Canadian Dollar (Sometimes referred to as the "Loonie")
-AUD = Australian Dollar
-NZD = New Zealand Dollar

Average Daily Turnover by Currency



Source Link:
http://www.goforex.net/forex-market-snapshot.htm

Currency Pairs:
1.Majors: EUR/USD (Euro-Dollar), USD/JPY, GBP/USD - (commonly referred to as the "Cable"), USD/CHF
2.Dollar bloc: USD/CAD, AUD/USD, NZD/USD - (commonly referred to as the "Kiwi")
3.Major crosses: EUR/JPY, EUR/GBP, EUR/CHF

Average Daily Turnover by Currency Pair

Source Link:

http://www.goforex.net/forex-market-snapshot.htm

8 Traits Of the Great Forex Trader

To be a successful Forex Trader takes time, education and knowledge, but the great news is anyone can do it. You do not have to be a genius to be a Professional Forex Trader.There will be many people that disagree with the above and end up broker, because they people have been successful in other areas and they see Forex Trading simply as a financial game. They do not put in the require effort to make themselves successful. So what are the traits to make you a Great Forex Trader?Lets Examine these factors:1. Do not take forex trading for granted. They see forex trading as the same if not harder than most specialized profession. They put in a lot of efforts and time to trade well.2. They acknowledge the financial risks in forex trading. They know that they can win and as well lose money in forex trading. They use smart money management skills3. They will educate themselves first and build up the knowledge the same as any profession, remember it all takes work. They respect and obey all the previous rules set by the previous successful traders. They understand about trend trading and why it is risky to trade against the trend.4. They will have patience and understand that it takes time to be successful. They don't see it as a get rich quick scheme. They invest a small amount first and build up.5. They know the importance of having a mentor like any profession. They understand their deficiencies as a beginner and are always seeking knowledge from the experienced traders.6. They stay with one proven trading strategy and trading only one currency. They do not jump from one strategy to another. They do not try trading many currencies at one time.They are devoted to understanding the nature of them and maximizing their profits while minimizing their risks.7. They set aside sufficient capital that they can afford to lose. With money they can lose, they do not feel pressure while trading. They simply follow their trading plan on executing their trades.8. They keep records of their trades. They review their winning and losing trades to understand their mistakes and how they can improve their trading results.The figures are that 95% of traders will end up broke, because they simply fail to plan and will not use the above traits. Make sure that you get the right level of education and knowledge and if you need more information feel free to visit the CFD FX REPORT , they have a host of free education lessons, they can help you find a Forex Broker.
Source Link:
http://www.forexarticlecollection.com/forex-trading/8-traits-of-the-great-forex-trader.html

How to Start Forex with a Great Training Course

Are you constantly surfing the internet looking for a forex trading strategy? Are you confused as to what course to start with? When you want to get involved with Forex trading, you have to figure out approximately how much money you would like to commit to trading, and then find a low cost course which will educate you to get started. If you want to get started in trading really soon, one way is to buy a course online that teaches effective methods of trading, courses that gives you a high probability of placing a successful trade. Then, you need to study and test the method on a demo trading account until you are profitable.If you can find a home trading course that has customer support, the better. They can guide you in starting your demo account and even in a live account. Such as the Forex Profit Accelerator of Bill Poulos, here, there is support up to 1 yearhttp://best-investment-options.com/Recommends/FPA2.htmlHere are two things you might want to remember:Learn. Learn Learn. There are many methods out there, and some are easy to understand, others take time to get hold of. Acquiring as much information as possible and finding your "sweet spot" will save you time in your starting demo account, and saving you money. "Practice makes perfect" .Please don't start into the market with real money until you are confident and totally comfortable using the trading method. It is suicide kind of way of losing all of your money is to jump into the market too soon, before really testing a trading method. That is what the demo account is for. As traders, the only way to test a trading method is to stick to it religiously. Therefore, it is a must to write down your plan or method for finding a trade, and stick to it. Just like anything we do in life, from cooking to weight loss programs, proper practice will make you able to enter the markets with confidence and will ensure you don't lose your trading account.These preparation makes investing work your favor.Things to look for in a Forex Training Course:Make sure it is from a reliable trading education source. One of the best there is nowadays is getting an education from a veteran who has done great in trading. Bill Poulos is one of them. He has made millionaires in trading in his courses due to his experience since 1974. He is known for making trading easy to understand, easy to apply and for all experience levels.Take your time. Practice the concepts over and over again in a demo account before jumping into the real trading.
Get your four E-books for free in the Forex Profit Accelerator course here
: http://best-investment-options.com/Recommends/FPA2.html
Source Link:
http://www.forexarticlecollection.com/forex-trading/how-to-start-forex-with-a-great-training-course.html

Forex Trading - The 3 Biggest Lies

Everyone that is involved in Forex Trading for awhile would have all heard these 3 misconceptions about Forex Trading, but beginner traders continue to fall for them. These are also some of the reasons why many Forex Traders end up going broke.So how can we avoid these common traps and make money from Forex Trading?Firstly lets look at the 3 areas to avoid when you are starting out Forex Trading.Making Regular income and Profit:This is misconception number 1.Think about this for a moment how can you make regular income from something that changes as frequently as the Forex Market. No matter how great the system is the market simple changes all of the time, how often have you been in a well trending trade only to see something strange occur and a nice profit turns to a break even or worse a loss? So the next time you see or hear of someone saying make x% profit every month's run!Ability to Predict Forex Prices in AdvanceThis is misconception number 2.This is the biggest crowd puller, think about it can you see into the future? No. No matter how great the theory, how well it has been back tested you still cannot have a theory that works 100% of the time. Think about it if there was a theory that worked 100% of time we could predict future results. So the theory would need to take into account, all interest rates cuts and rises, speeches from the banks and monetary authorities as you can see highly unlikely. No Impossible.Make Massive Profits minimal Exposure:This is misconception number 3.Many of us would have seen systems advertising the make 100% gains and have less than 1% drawdown. This is not reality and you can see the real results to support this outrageous growth rate to drawdown that has been audited.So consider this and Improve your chances!The common fact to trading is that over 95% of all traders will lose their money and the ones that do believe at least one of the aboveSo how you can become successful as a forex trader is understand that you can make profits in the long term, that making money is going to be up and down and that Forex trading is a game of odds not certainties. They also understand that to make money you need to take risks, the old saying of risk versus reward.If you want to get involved in Forex trading and win you can, by getting a good solid Forex education and good Forex mentoring. In some cases you can find a Best Forex Brokerthat can assist you. If you are looking for a great Forex Broker, look at the CFD FX Report they have recently researched all the Forex Brokers and have come back with who they believe to be the best.You can win and enjoy huge rewards for your effort, if you understand the challenge of Forex trading and what the reality really is. If you understand this, you're on your way to long term currency trading success.Also make sure that you have a good trading plan and stick to that trading plan.
Source Link:
http://www.forexarticlecollection.com/forex-trading/forex-trading-the-3-biggest-lies.html

Day Trading - How to Be Successful at it

The share market today is as volatile as we have seen it, as stock prices continue to fluctuate the only way to preserve your money is to sit on the sidelines and the chaos goes on in the financials and other sectors. With the wild swings in the market as it continues at times to make no sense. We have seen days of down 500 points, followed by days of up 450 points, actual trading sessions moving as much as 1000 points. How do we make sense of these crazy markets and more importantly how do we make money.Do not worry there is a systems out there that will teach you manage your trades. With this type of knowledge you can go from a learner trader to an Expert TraderForex Broker in no time.Becoming a successful stock market trader requires learning and having a certain level of knowledge, confidence and the ability to control your fear and greed. Stock Market or Forex Trading is best explained as supply and demand, if a lot of people want the stock it goes up, if they don't want it then it falls. There are endless amounts of research available today from online reports, newspapers, education lessons the list is quiet long so how do you decide when and where to start. The first step you need to take is to decide that you want to become a trader. Then you need to right out your goals and your reasons why.What you now need to do is to learn and understand that in theory things can seem simple however once you are trading in these at times crazy trading markets things can seem confusing. This is why it all comes back to having the right level of education and knowledge and where possible a great mentor or Broker. Using these steps almost anyone can become a trading success.To learn more on the stock market or forex market feel free to visit the CFD FX REPORT as they have some excellent education lessons available, and they can also help you find the best online brokers in the market.
Source Link:
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How To Be Successful Forex Trading

Today there are many people in the world that are using Forex to make money. Forex trading is buying and selling currencies to make profit from it. It can be a great money making business if you can do it right. It is the type of business that you can make thousands of Dollars each month if it is done correctly.There are some major advantages to Forex Trading.* The long hours that the forex market is open, it trades 24 hours a day for 6 days per week and is the most liquid market in the world. So even if you have a full time job you can still come home and trade. It is a great way to start out, paper trade build up confidence start achieving financial success then you can leave your current job.* It doesn't matter what the market is doing as you can just as easy go long (buy currency) or go short (sell currency) so there is never a bad time unlike buying stocks. The liquidity means that you have no problem selling.* You don't need thousands to start. The reason that you don't need massive bank balance is because you can use leverage, in some cases you can get 400:1 so if you have $1000 you can leverage that into $400,000, which can make for great profits. Also you don't pay brokerage or commissions. If you are looking for a great Forex Broker feel free to visit us and we can show you the best forex brokers in the markets.* The market will never go broke. Unlike share trading where companies can collapse it is very unlikely to happen in Forex. Imagine if the USD was worth $0, so you can see very unlikely.* If you are new to the foreign exchange market, you do not have to worry about spending thousands of dollars to learn or buy a course. There is online forex trading course that will explain how the forex market works and a forex tutorial will also explain about fundamental and technical strategies that are available to you as a forex trader.* Work your own hours if you don't feel like trading then you don't have to, it will always be open tomorrow.* To learn Forex Trading is very simple today all you need is a computer and forex broker* To ensure that you can become successful in Forex Trading make sure that you get some education, as knowledge is power. You can start out learning online or through books it doesn't have to be through expensive course.* Have Fun and enjoy it.
Source Link:
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Forex Trading

Forex Market - Make Money in Choppy Markets:
The Forex Markets do not create clear trend lines all the time. Quiet often we will experience very volatile markets and the prices can move dramatically up and down. Sometimes they can start to trend then also of sudden make a strange upward or downward movement which will trigger your stop loss and stop you out of the trade.So How can we trade this sort of Forex Marketand make money?1. Don't expect a long swing plan or any sustained price movements if you are already in an open position, get some profits out when you have made some from the forex market or shift it to the breakeven price as soon as possible. This will reduce the risk of losing that position.2. When you need to trade in these conditions trade the currencies pairs that are highly correlated. So we are talking about the top 6 currencies pairs.3. It can be also useful to use some level of Fundamental analysis such as referring to the calendar of economic announcements every now and then in forex trading. Sometimes a choppy market occurs when there is two or more economic data releasing at the same time or within a few hours. A particular news may trigger an up movement while the other one may trigger a down. Therefore it is a bad time to trade forex as you do not know exactly where the forex market is moving.4. Sometimes when the forex trading market is choppy, it forms range-trading channels, which sets one up for a breakout. If there's is no indication on which direction the market is moving, forex trader may go long when it's at the bottom range, and short when it is at the top range. This may earn you some pips, but again, it is better to wait for price to break out from the range-trading channels so that ideally you will be able to catch the breakout trend. This is why is why it is important to have a great forex broker too as they can help you with trading ideas. If you are looking for a Best Forex Brokerfeel free to visit the CFD FX REPORT as they have recently researched all the broker on the markets and can point you in the right direction.The above should help you when trading choppy currency markets, but they are no guarantees of success. If you don't feel comfortable with the trade don't do it. Remember the markets are open nearly 6 days per week and 24 hours per day so there is also going to be more trading opportunities. Sometimes the market can go through fazes of not trending at all so don't try and predict a trend otherwise you are gambling.
About the Author
The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.
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4 Tips For Choosing a Reputable Forex Broker

Finding a Forex broker is a tough process to navigate through and for most people, the necessity of outside assistance is needed. Trying to trade in the Forex market without a broker could lead to devastating results for the normal trader. Similarly, hiring the wrong Forex broker can lead to the same result as trying to muddle through it alone. It is highly important that you be diligent in researching any prospective brokerage firms to handle your financial portfolio.A good Forex broker will supply you with clients that were successful and can attest to the specific broker's qualifications and success history. Put yourself in that position, would you testify to someone's strengths if they did a poor job for you? Client history testimony should be present in any prospective Forex broker and plentiful to indicate a solid background with trading. You can tentatively assess a lot from a Forex broker with a list of clients that will speak up for the brokerage firm or individual broker. It should be noted that all word of mouth testimony should be taken with a grain of salt and dissected to collect the pertinent information. Testimony should be used in your research to find a Forex broker but should not be the deciding factor.Another good morsel to test the reliability of any potential Forex broker is the amount of information, literature and lessons that they are willing to give to you. Most Forex brokers are of a high reputation and a solid background however, there are many out there that don't have a good history or no history and it is wise to steer clear of these brokers. You are trying to find a trusted financial advisor and settling for second best, just won't do. The more a potential Forex broker is willing to do for you in the area of helping you understand the Forex trading system, the better quality trader they will be for you.A good avenue to travel down when seeking a good Forex broker is to ask your acquaintances about Forex brokers and how they met. This can not only give you prospective referrals to great Forex brokers but will also equip you with ideas and resources that you may not have located. If you get a referral from friends, be sure to still research that specific broker and his qualifications before committing to any formal agreement.The other factor in finding a good Forex broker is the margin of return that is offered. A Forex trading margin used to influence your money and many Forex brokers offer different margins. Finding a Forex broker, who gives a margin of ten to one isn't a very good find so it's worth the time to reinvest in research. Remember that this industry is all about customer service and catering to the clients so if your prospective Forex broker doesn't return your calls within a reasonable time frame it would be advisable to keep searching.
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Selecting the Right Forex Broker

1) Is the broker I want to use regulated? This is the first question you should be asking yourself and there should be no doubt that they are. All regulated brokers are required to submit financial reports to regulatory authorities. Failing to do so can cause authorities to fine brokers or even end their membership. These rules force Forex brokers to keep financial reports.Each broker is regulated by local regulatory authorities. For instance, if a broker is based in the United States, they're regulated by the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). Swiss brokers, however, are regulated by the Swiss Federal Department of Finance (FDF). Using a regulated broker also protects investors because they're able to dispute resolutions.2) What are the trading conditions like? This question refers to the trading conditions and special features of the trading platform with a Forex broker. Some of the most important factors include:-Spread - The smaller the spread on currency pairs, the more favorable the conditions are for both traders and investors.-Platform Execution - This term refers to how quickly and consistently the trades are executed. Many brokers promise fast, transparent executions during normal market conditions.- Fractional Trading - Some brokers may allow investors and traders to trade on a fractional basis. For example, rather than allowing you to trade full lots of "100,000 units," they let you trade "163,345 units," which is helpful when you're making trades that risk a certain percentage of the balance on each trade.-Safety of Funds - It's important to make sure that your trading funds are placed in a segregated account or, at the very least, insured for safety.
Source Link"
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Forex Broker- Tools to Find Best Forex Broker

Time to Select a winning Forex Broker. This will help you find the best online brokers in the market. Finding the right Forex Broker is an important as selecting a winning trade. When you start trading you make sure you do your due dilligence on that stock or currency before you trade, well you should do exactly the same with selecting a Forex Broker. So what are the key requirements that you need?Determining a Forex broker is a tough process to navigate through and for most people, the necessity of outside help is needed. Trying to trade in the Forex market without a broker could lead to damaging results for the normal trader. Similarly, hiring the wrong Forex broker can lead to the same result as trying to muddle through it alone. It is highly important that you be diligent in researching any future brokerage firms to handle your financial portfolio.A serious Forex Broker will provide you with clients that were successful and can attest to the specific broker's qualifications and achiever account. Put yourself in that position, would you testify to someone's strengths if they did a poor job for you? Client story Testimony should be present in any potential Forex broker and plentiful to indicate a solid background with trading. You can tentatively assess a lot from a Forex broker with a list of clients that will speak up for the brokerage firm or individual broker. It should be noted that all word of mouth Testimony should be taken with a grain of salt and dissected to collect the pertinent information. Testimony should be used in your research to find a Forex broker but should not be the determining factor.Another good morsel to test the dependability of any possible Forex broker is the amount of information, literature and lessons that they are willing to give to you. Most Forex brokers are of a high reputation and a solid background however, there are many out there that don't have a great account or no history and it is wise to steer clear of these brokers. You are trying to find a trusted financial advisor and settling for second best, just won't do. The more a prospective Forex broker is willing to do for you in the area of helping you understand the Forex trading system, the better quality trader they will be for you.A great avenue to travel down when seeking a good Forex broker is to ask your acquaintances about Forex brokers and how they met. This can not only give you potential referrals to fantastic Forex brokers but will also equip you with ideas and resources that you may not have located. If you get a referral from friends, be sure to still research that specific broker and his qualifications before giving to any official agreement.The other factor in Determining a serious Forex broker is the margin of return that is offered. A Forex trading margin used to influence your money and many Forex brokers offer different margins. Determining a Forex broker, who gives a margin of ten to one isn't a very fantastic find so it's worth the time to reinvest in research. Remember that this industry is all about customer service and catering to the clients so if your future Forex broker doesn't return your calls within a fair time frame it would be advisable to keep exploring.Recently the CFD FX Report has researched all the Forex Brokers in the market using the above methods if you would like to see the Best Forex Broker feel free to visit us or email us at CFD FX REPORT
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Forex Broker - The 6 Steps to Finding the Best Forex Broker

If you are just starting to test the bodies of water of foreign exchange trading or what we advert to as Forex, you will finally have to build a relationship with a Forex broker.Getting a good Best Forex Broker is quite critical to successfully trade in the foreign currencies markets. Not every Forex brokers are made the same. Each one will have tools and functions different from the other.You might find a broker that offers great resources and information to analyze and spot trends in currency trading but can come up short on the software platform side. So it is important to do Some research at the starting so that the relationship you nurture with your broker can be a lasting and paying one. To serve you along here are Many tips on getting a great broker:1. Account types - The total of capital you are willing to invest will dictate what type of account you will open with a brokerage. Typically, virtually brokerage firms will offer a "mini" and a "standard" account. As the term involves, a mini account can be opened for as little as $200. This is suitable for the beginner looking to gain experience in trading. However there are cases when trading options such as leveraging can be limited in a mini account. A standard account, on the other hand, offers more options over the mini account but the minimum deposit is also much greater (around $1,000.00).2. Platform - The platform is basically the program that you will use to get such information like live quotes, graphs and charts, your exposure, your profit and loss, the margin required, every your open positions with their current profit and loss status and further useful data. A good brokerage will very likely be using sophisticated technology in their platforms so be sure to find out if it is user-friendly at Every. every the buying and selling should be easily done in as little as one click. Many platforms also gives you access to daily analyses in Forex, news reports and Forex signals including support and resistance levels.3. Leverage - Leveraged financing is a feature common in Forex trading. It basically means you can use credit in order to maximize your returns. In simpler terms, what you do is you "borrow" your broker's funds temporarily to make larger trades and if all goes well, will produce larger profits. An opportunity So is created to control a $400,000 transaction for as little as a $1,000 actual investment. In this example, the leverage level is x400. An investor should be aware though that if the market turns sour, there is a risk of losing a substantial sum of money, depending on the amount of leverage taken. So it is a serious idea to learn more about leveraging before exposing your investment in the open market.4. Spread - Stock brokers make their money in commissioning, Forex brokers make theirs done the spread. A spread is the difference between buy and sell--the price at which a currency can be bought and the price at which they can be sold at any given time. To the investor, a smaller spread logically means that there is a higher profit potential. There are 2 types of spread--fixed and various. Fixed spreads remain the same throughout the day. various spreads change according to market conditions. A active market must react considerably in your favor before you can turn a profit. Spread also alters from account types. A mini account typically charges a higher spread than a standard account. A potential trader should So know the spread of Every broker before settling at a decision to sign up.5. Technical support - Obviously, support should be considered such as when the software becomes faulty or when questions arise regarding certain transactions. Quick acting support reflects positively on a broker and you can even try this by contacting them with pre-sale questions.6. Demo account - Before putting any weight on any of the items mentioned above, a beginner should always look for a broker that offers a demo or trial account. Not Every brokers offer demo accounts. A demo account will allow you to trade in "play" money so that any losses you incur do not count against your investment. Needless to say, you do not make any money either if you turn a profit in your demo account.It is there only to get a beginner acclimated to the different Forex conditions. While this may be Many of the almost important points to consider when looking for a Forex broker, there are Many "little things" that may crop up while doing your search such as unique promotions or great offers. However there is enough data in the foregoing to provide you with a basis for judging whether Many offers are above board or not.There is nothing to stop you from signing up with different brokers and to take advantage of whatever great offers they may have on the table. Exercising Many due diligence at the start will prevent a lot of heartache later on. A good Forex broker should be able to serve you become more successful in your trading. Make sure you use a Great Forex Broker and make your Forex trading a profitable one.Now CFD FX Report has recently taken a researched all the Forex Broker and CFD Brokers in the market and they have selected the Best Forex Brokers and CFD Brokers in the market. So we have helped thousands of traders take the guesswork out of choosing the best roker. To find out more feel free to visit our website CFD FX REPORT or email us: support@cfdfxreport.com
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Finding a Forex Broker

Most traders and investors out there know, the foreign exchange market is the largest market in the world. This is why we are seeing so many people making the transition from shares, options, futures to the Forex Markets. With the brilliant liquidity, much longer trading hours, we are seeing traders realize returns as much as 40% a month and in some cases even more.However if there is big money to be made, there are big scams too. Everyone wants to profit, including all the wall of traders that do not educate themselves with the basic and look to make the quick riches. They also make the mistake of not picking the best forex broker for their own trading.The best forex broker is an individual could choose is one that has a good history that is available for the public to see. No the CFD FX REPORT has recently used all of there knowledge to research the best brokers, so you can visit them for a broker suggestion.With a market that is as large as the forex market and very high returns, scams become a thing of the normal.Criteria to Find the BestMake sure that you read all of the fine print with the brokers. Looking at the regulation they need, and where the money held and how easy you can access your funds.Its your money and like in every market there is some risk. Just make to most informed and educated decision you can and prepare yourself for a strong relationship.Another big component that most traders look for in the Best Forex Broker is the spreads they offer. This is the difference between the bid-ask price that they offer. This is the commission they receive for marking executing your orders. As it may seem a good thing that low spreads are offered but should not be the only basis for making your decision. Other factors can come into play that make up for the broker offering lows spreads.Your forex broker will become a long term financial partner through your forex trading success. The biggest thing you can do and get out of this article is do your research before making your decision. Remember with so much money to be made in the market, there are always those that will want to take away from others that are successful.Choosing the best forex broker might be the most important decision you make when looking for financial freedom in the forex markets. Selecting the right broker is an important as finding a winning trade.
Happy Trading .
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Best CFD Broker - Australia

The Contracts For Difference (CFD) Market is the largest financial market and everyday new investors plan to jump in when they learn of the benefits, that is, high returns on investment which is as high as 20% per month a month.So if you are brand new to the CFD Market you do have a few options when starting to trade, try and trade yourself, get some education first or Find a Best CFD Broker to help you.A great CFD broker with experience with ideally a lot of happy clients and experience is the CFD Broker that you should be trading with and trading through. Once you've found the ideal CFD broker, all that's to be done is, keep a regular check on your investments and it is advised to do it independently to avoid scams, because one can never know. So, how to find the right CFD broker, is that the question?Well, the great news for you is, this article was written just for you. Every single person will trade with different levels of risk and depending on that factor you might like to check how different CFD broker work and then select the one from them.Before undertaking the task of searching for a CFD Broker, remember to strike out brokers promising massive returns, they are scams without doubt and same for brokers who are promising you that you will make millions of dollars with or no risk. If this takes place then the alarm bells should ring. If you go with this particular broker you will end up broker!Trading as any other investment always involves some level of risk because of the nature of the market which you must be prepared to incur and also understand that losses can and will occur. You must understand no one can pick the market correctly 100% of time. So if you are prepared that in order to trade you will have losses you will be a better trader. A trader that can take losses, and in particular cut losses quickly will be a much more successful trader. Remember cut your losses quickly and let your profits run.Here are some important things to consider when you are choosing a CFD Broker. Make sure to check the spread of the CFD broker as that's where they earn their money, read their terms of service carefully and check the services offered. So the bigger the spread the more money they are making, therefore the less you are making.There might be a lot of services being offered upfront at no cost but you might be billed for them later on, so make sure to sign up only for the services that are required.A CFD broker is a long term partner for your financial success so, make sure to research their background well. If you are not sure about that broker continue to look around or start off very small. All that's to be done is put in a little effort by checking the credibility of the CFD broker or company upfront for peace of mind in long term.So if you don't have the time to research CFD Brokers yourself the CFD FX REPORThas recently researched all of these brokers and come up with what they believe to be the Best CFD Brokers in the Market.
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Forex Broker

CFD Broker - Make the Choice - Not A Mistake"
With the modern times of mobile communication, it is not unusual to find hidden in a home a trader or a broker who is doing their CFD Trading from the comfort of their own home. Today to be a CFD trader all that you require is a computer setup to multi screen investing servers, the number of the casual or evens serious home based CFD traders has grown a great deal of late and this is because of the internet and the popularity of certain commodity trades.Today, this article will discuss about the CFD market, and how you can find a great online CFD broker when you do decide to jump on the wagon and become a CFD Trader. Most of the CFD Brokers today offer the ability to be able to trade online, CFD trade over the phone, or CFD trade from you mobile phone.With the growth of the virtual CFD Trader, we have seen an explosion of online CFD brokerages on the internet in the almost predictable economic elastic demand and supply. Today we are seeing more individuals turning to commodity trading as a viable source of second or even third income, brokerages and financial firms all over the world have responded by extending their services to the modern technology world. Before you choose which firm and which broker to choose, there are few things you need to do.First step is to find the black list of online CFD brokers and those that have a bad reputation. There are a few collectives that collect a list of names of individuals and companies (including all their aliases and permutations) and place them upon a compiled list for everyone to refer to. If that is not enough, you must also check your local finance and governing body and run a list of potential brokerages and companies you want to join with them - you never know what you might find. Deal with well established companies that have strong regulation. Recently the CFD FX REPORT has researched all the online CFD Brokers and have come up with who they believe to the Best CFD Broker.Do not be swept off your feet by a long list of credentials if you do not know what they mean or where they even came from in the first place. Be wary of customer testimonials that are written on the website itself, as these can doctored or fabricated.Use a company that has great references, and has good client testimonials. Check also for longevity, the more years a broker and his company have been around, the more chances that it is a legitimate and viable source of investing advice. Always be careful where you place your money and it is very, very important that you choose a good online broker that is both legitimate and has the needs of your finances at heart. You must feel comfortable with this broker, remember a bad broker can make you BROKER.
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Forex Trading Education - The London Open Checklist

effect market timings can have on trading and liquidity.One of the most active periods of the day is from the time the London market opens. Often around that time good trading opportunities will appear.As part of your Forex trading education, learn to analyze market conditions around London open and begin to recognize good setups.The following questionnaire and checklist will help.London Open PreparationAbout 15 to 30 minutes before London open check the answers to these questions:- Are the MACD indicators on the 4 hour and 1 hour charts in agreement? If they are not going in the same direction be very careful!- Is there MACD divergence on the 4 hour, 1 hour, or 15 minute chart? Look for other clues to confirm that price may go in the direction of MACD divergence.- On the 4 hour chart what is the overall trend?- Do a Fibonacci calculation on the last swing high and low and see if price is pulling back to an optimum retracement level or whether it is reaching a key extension level.- Note price in relation to the 200 EMA (Exponential Moving Average) on the 4 hour, 1 hour and 15 minute charts. Is price bucking the trend? In other words, is price above the 200 EMA on the 4 hour and 1 hour chart but below it on the 15 minute? Then be prepared for price to go long at some stage. (Draw the opposite conclusion if price is below the 200 EMA on the 4 hour and 1 hour chart but above it on the 15 minute chart.)- Are any Economic Reports imminent?- As the candle closes on the 15 minute chart at London open, do you see any distinctive candle patterns such as tweezers, or doji's or hammers indicating price exhaustion?- If I entered a trade right now in a particular direction, what would be the risk and where would I place my stop?Within a few minutes of London open, if you see a number of factors converging from the analysis above, make a decision one way or the other:- trade- wait for clearer signals or a better entry pointCarrying out an analysis in this way each day at London open will do much to increase your Forex trading education.It will make you aware of what is happening on the charts and in the marketplace and help you to arrive at conclusions.There is no magic formula involved with Forex trading education. Put simply, successful Forex trading is the result of years of hard work, study, practice, and experience often gained through painful trading scenarios.Eventually the newer trader learns mental discipline, and how to control the emotions - probably the biggest part of a Forex trading education.Practice a procedure like the one above day after day and begin to see some progress as you get nearer the time you make profits consistently from currency trading.
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Forex Glossary

Here are some of the most common terms used in FOREX trading.Ask Price ¨C Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote ¨C e.g. EUR/USD 1.1965 / 68 ¨C means that one euro can be bought for 1.1968 UD dollars.Bar Chart ¨C A type of chart used in Technical Analysis. Each time division on the chart is displayed as a vertical bar which show the following information ¨C the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left of the bar shows the opening price and the horizontal line on the right of bar shows the closing price.Base Currency ¨C is the first currency in a currency pair. A quote shows how much the base currency is worth in the quote (second) currency. For example, in the quote - USD/JPY 112.13 ¨C US dollars are the base currency, with 1 US dollar being worth 112.13 Japanese yen.Bid Price ¨C is the price a trader can sell currencies. The Bid Price is shown on the left side of a quote - e.g. EUR/USD 1.1965 / 68 ¨C means that one euro can be sold for 1.1965 UD dollars.Bid/Ask Spread ¨C is the difference between the bid price and the ask price in any currency quotation. The spread represents the broker's fee, and varies from broker to broker.Broker ¨C the intermediary between buyer and seller. Most FOREX brokers are associated with large financial institutions and earn money by setting a spread between bid and ask prices.Candlestick Chart - A type of chart used in Technical Analysis. Each time division on the chart is displayed as a candlestick ¨C a red or green vertical bar with extensions above and below the candlestick body. The top of the extension shows the highest price for the chart division and the bottom of the extension shows the lowest price. Red candlesticks indicate a lower closing price than opening price, and green candlesticks indicate the price is rising.Cross Currency ¨C A currency pair that does not include US dollars ¨C e.g. EUR/GBP.Currency Pair ¨C Two currencies involved in a FOREX transaction ¨C e.g. EUR/USD.Economic Indicator ¨C A statistical report issued by governments or academic institutions indicating economic conditions within a country.First In First Out (FIFO) ¨C refers to the order open orders are liquidated. The first orders to be liquidated are the first that were opened.Foreign Exchange (FOREX, FX) ¨C Simultaneously buying one currency and selling another.Fundamental Analysis ¨C Analysis of political and economic conditions that can affect currency prices.Leverage or Margin ¨C The ratio of the value of a transaction to the required deposit. A common margin for FOREX trading is 100:1 ¨C you can trade currency worth 100 times the amount of your deposit.Limit Order ¨C An order to buy or sell when the price reaches a specified level.Lot ¨C The size of a FOREX transaction. Standard lots are worth about 100,000 US dollars.Major Currency ¨C The euro, German mark, Swiss franc, British pound, and the Japanese yen are the major currencies.Minor Currency ¨C The Canadian dollar, the Australian dollar, and the New Zealand dollar are the minor currencies.One Cancels the Other (OCO) ¨C Two orders placed simultaneously with instructions to cancel the second order on execution of the first.Open Position ¨C An active trade that has not been closed.Pips or Points ¨C The smallest unit a currency can be traded in.Quote Currency ¨C The second currency in a currency pair. In the currency pair USD/EUR the euro is the quote currency.Rollover ¨C Extending the settlement time of spot deals to the current delivery date. The cost of rollover is calculated using swap points based on interest rate differentials.Technical Analysis ¨C Analysis of historical market data to predict future movements in the market.Tick ¨C The minimum change in price.Transaction Cost ¨C The cost of a FOREX transaction ¨C typically the spread between bid and ask prices.Volatility ¨C A statistical measure indicating the tendency of sharp price movements within a period of time.
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Risks by the foreign exchange on Forex

The Forex is essentially risk-bearing. By the evaluation of the grade of a possible risk accounted should be the following kinds of it: exchange rate risk, interest rate risk, and credit risk, country risk.Exchange rate risk. Exchange rate risk is the effect of the continuous shift in the worldwide market supply and demand balance on an outstanding foreign exchange position. For the period it is outstanding, the position will be subject to all the price changes. The most popular measures to cut losses short and ride profitable positions that losses should be kept within manageable limits are the position limit and the loss limit. By the position limitation a maximum amount of a certain currency a trader is allowed to carry at any single time during the regular trading hours is to be established. The loss limit is a measure designed to avoid unsustainable losses made by traders by means of stop-loss levels setting.Interest rate risk. Interest rate risk refers to the profit and loss generated by fluctuations in the forward spreads, along with forward amount mismatches and maturity gaps among transactions in the foreign exchange book. This risk is pertinent to currency swaps, forward outright, futures, and options (See below). To minimize interest rate risk, one sets limits on the total size of mismatches. A common approach is to separate the mismatches, based on their maturity dates, into up to six months and past six months. All the transactions are entered in computerized systems in order to calculate the positions for all the dates of the delivery, gains and losses. Continuous analysis of the interest rate environment is necessary to forecast any changes that may impact on the outstanding gaps.Credit risk. Credit risk refers to the possibility that an outstanding currency position may not be repaid as agreed, due to a voluntary or involuntary action by a counter party. In these cases, trading occurs on regulated exchanges, such as the clearinghouse of Chicago. The following forms of credit risk are known:1. Replacement risk occurs when counterparties of the failed bank find their books are subjected to the danger not to get refunds from the bank, where appropriate accounts became unbalanced. 2. Settlement risk occurs because of the time zones on different continents. Consequently, currencies may be traded at the different price at different times during the trading day. Australian and New Zealand dollars are credited first, then Japanese yen, followed by the European currencies and ending with the U.S. dollar. Therefore, payment may be made to a party that will declare insolvency (or be declared insolvent) immediately after, but prior to executing its own payments.Therefore in assessing the credit risk, end users must consider not only the market value of their currency portfolios, but also the potential exposure of these portfolios. The potential exposure may be determined through probability analysis over the time to maturity of the outstanding position. The computerized systems currently available are very useful in implementing credit risk policies. Credit lines are easily monitored. In addition, the matching systems introduced in foreign exchange since April 1993 are used by traders for credit policy implementation as well. Traders input the total line of credit for a specific counterparty. During the trading session, the line of credit is automatically adjusted. If the line is fully used, the system will prevent the trader from further dealing with that counterparty. After maturity, the credit line reverts to its original level.Dictatorship risk. Dictatorship (sovereign) risk refers to the government's interference in the Forex activity. Although theoretically present in all foreign exchange instruments, currency futures are, for all practical purposes, excepted from country risk, because the major currency futures markets are located in the USA. Hence, traders have to realize that kind of the risk and be in state to account possible administrative restrictions.
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Forex Beginner

Forex - What is it?
The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round - the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open.Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules. An important role in the process of the preparation for the trading on Forex belongs to the demotrading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.
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Stock Market Trading- 3 Strategies to Make you a Millionaire

Stock Market Trading- Are you ready to become a millionaire. Here are 3 proven strategies to make you become a more successful trader and increase your wealth. They can be used if you are forex trader, stock market trader.If you want to catch the serious profit in Forex Trading you need to trend watch Forex trends which are worse term. here we are going to give you a 3 step simple method which if you use it correctly, will help you catch every superior Forex trend and lead you to long-term term currency dealing success. This will add more money to your bottom line than most other strategies.For you to become a successful Forex Trader, you must set rules and then follow them. Successful Forex Traders have discpline.Most beginner Forex traders don't bother trying to trend following Forex lengthier term - instead they try Forex scalping or day trading. These methods focus the trader on small moves and they hope to catch small profit however as most short term moves are random, this leads to equity eliminate.The other alternatives are swing trading and long term Forex trend following and this article is all about the latter method. If you look at any Forex chart, you will see long-term term trends that last for months or years. These moves can and do yield serious profit - present we will outline a simple method to get them.BreakoutsBy far the best way of catching the serious moves is to use a Forex Trading strategy based around breakouts. A breakout is simply a move on a Forex chart where a new high or low is made and resistance or support is broken.It's a fact that most leading moves start from new highs or lows.While it might appear that you are not buying or selling at the greatest level, you are in terms of the odds of the trend continuing. Most Forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The grounds are if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur.Most traders don't buy or sell breakouts and that's exactly why it's such a powerful method.The only point to keep in mind is a support or resistance which is ruined, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the greater the spacing between the tests the more valid the level is.Confirmation: Make sure it is confirmedOf course not every breakout keeps and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your Forex trading system to confirm your dealing signal.These indicators give you an estimation of the strength and velocity of price and there are many to choose from. We don't have time to discuss them here (simply look up our other articles) but two of the greatest are - the stochastic and Relative Strength Index RSIStops and TargetsStop points are easy with breakouts - Simply behind the breakout point.If you have a serious trend then you need to be careful you can milk it, so don't move your stop to soon and keep it outside of normal volatility. If it is a huge move, trailing stops should be held a long-term way back and the 40 day moving average is a good level to use.You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You don't know when the trend is going to end, so don't predict.It's ok to give a serious back, as that's the nature of trading Forex. Keep in mind if you got 50% of all leading trend you would be very rich. When you are long-term term trend following you have accept giving a bit back and taking dips in open equity as the trend develops - this is noise and does not affect the long term trend.The above is a simple way to trend watch Forex and catch the high odds moves that yield the serious profit. If you are learning Forex dealing and want a simple method that is robust and will help you get every major move, then you should base your dealing on the above method.Now that you have all the winning strategies, you now need to have a winning broker, recently the CFD FX REPORT has reviewed these brokers and have come up with Best Forex Broker to find out this visit the website.
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Good News For Income Investors

Looking for good news in today's markets is like searching for the proverbial needle in a haystack. Needless to say, practically all investment grade equities and nearly all closed end funds that specialize in providing regular recurring monthly income have been reduced in market value by this prolonged correction. The quake has spread in all directions from its financial epicenter, and the mounting doom and gloom has taken its toll on even the most rational investment decision makers. Try to keep in mind that the purpose of income investing is the income that your portfolio produces not an increase in the securities' market values---So here's the good news (and for anyone with a 40% or higher income asset allocation, or an income portfolio being used for living expenses), it really is very good news. Base income levels, from the beginning of the stock market correction in June '07 until mid-July '08, have barely changed at all. In fact, they have probably risen in properly asset allocated portfolios. I have examined the regular recurring monthly income distributed by 56 taxable income CEFs and 61 tax-free income CEFs, and the conclusions are pretty remarkable.In spite of the fact that the vast majority of my favorite monthly income producers are lower in market value than I would like, the amount of income they are distributing to shareholders has not moved lower meaningfully--- even though the Federal Reserve has reduced interest rates by approximately 60% during the past twelve months. Here are the numbers: (1) 48% of the taxable-income CEFs are distributing precisely the same amount per share as they did a year ago. Fourteen issues have increased their payouts and fifteen have reduced them. The net result is a decrease of just fourteen cents (2.5% of the total monthly payout). The average current yield on the portfolio, as of mid July '07, is 9.86% without considering any capital gains distributions. Additionally, the group is selling at market prices that reflect an average discount of nearly 11% from NAV. Is that special or what? The bonds, preferred stocks, government securities are priced 11% below their current market values.(2) The numbers are similar with regard to the 61 tax-free income CEFs: 46% have not altered their payout over the past twelve months; eighteen have reduced their payout slightly, and 15 have increased the monthly dole. The net difference for the group over the past year is less than one cent, or a percentage change of two-tenths of one percent. Remarkable. This group is selling at an average discount from NAV of 9.1% and has a current tax-free yield of 5.51%. (3) Of 117 individual issues, about half have produced stable income. The others have accounted for a total payout reduction of less than 15 cents--- a measly 1.7%. Why is this amount of little consequence? Two reasons really. First of all, a properly asset-allocated income portfolio does not disburse all of the base income it receives, so there is income available to reinvest in more shares of income producing securities. This process assures a growing cash flow to calm your fear of rising prices. The other reason is a bit more hypothetical. The Fed has lowered rates significantly, a process that normally produces higher prices for income securities. Eventually, those lower interest rates (even if global pressures convince politicians to take back some of the reductions) should produce higher prices (i.e., profit taking opportunities) in these securities.Admittedly, even if your asset allocation has been fine tuned for years, lower portfolio market values in this area make stock market valuation shrinkage feel even worse. But the value of stable cash flow becomes painfully clear for investors who misguidedly depend on capital gains for their spending money. Properly asset allocated portfolios contain enough base income generators to pay the bills. The purpose of capital gains is to produce proportionately more base income generators.The purpose of this email is simply to bring some needed sunlight into an investment environment that is far gloomier than I think it needs to be. If you want the details, you'll have to request them personally.
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Stock Market Trading - Winning Trading Plan

Successful stock market trading begins with a winning trading plan. It's as simple as that. If you develop a well-conceived trading plan to guide your actions in the stock market you will already have the advantage over most of your market competition. Put simply, it gives you the edge you need to win over the long haul when trading the stock market or forex market.A stock market trading plan will not guarantee your success in the markets, but a good plan will enable you to work methodically toward your stock market trading goals while reviewing on a regular basis what is working and what is not. It will act as a roadmap for your trading journey. It will enable you to respond positively and constructively no matter what happens with your individual trades. And, most importantly, it will help you control the only thing a trader can control: his or her own actions.Finally, stock market trading is a business. It can be a fascinating and sometimes thrilling business, but in the end it is a business. A trading plan helps you treat it as a business.Here are some important elements of a trading plan.1. Why am I trading? What are my goals?The answers to these questions might seem obvious, but they usually are not. Take some time to ask them of yourself, and seriously consider the answers. You may be surprised by what you learn. And whatever the answers, you will have a clearer picture going forward of what this enterprise means to you, and that will help you survive any rough patches.2. What markets am I going to trade and why?It is often best to specialize, especially for beginning stock market traders. Many pros make a great living trading the same stock day every single day for years. Choose a market that is appropriate for your experience level and trading style. Consider other factors such as available margin, volatility and liquidity.3. What is the concept or philosophy behind your trading methodology?Your trading system must have a concept behind it. Whether you are a value investor like Warren Buffet or a trend trader like George Soros, you should understand why you are doing what you are doing, how your beliefs about the markets define what you will do as a trader.4. What will be your specific method?In other words, specifically how will you execute your trading ideas? Will you buy breakouts or pullbacks? Buy oversold or sell overbought? Or will you use specific technical setups such as moving-average crossovers or another indicator-based strategy? Under exactly what conditions will you enter? When will you know to exit?5. How much money will you risk on any single trade? On trading in general?This is critical. Of course, start small. But just as importantly, have a plan in place for how much you will risk, emotions don't cloud your judgment when the time comes. The key is to find an allocation that doesn't cause any stress but still makes the trade worthwhile financially. One of the biggest problems with newer traders is that they are trading way too big in relation to their account size. Like when you are forex trading. Trading forex at 100-1 leverage is like introducing your mistress to your wife. Yes, you can do it, but that doesn't make it a good idea. Normally they don't get along too well.6. What will my trading rules be?This is also critical. Your trading rules include entry and exit rules, rules governing maximum daily, weekly or monthly losses, maximum risk on any given trade, the maximum number of trades per week, etc., etc. These rules enforce discipline and keep you out of trouble. What stock price will enter at, what stock price will I will exit. Be discplined.7. How will I record and evaluate my trading performance?Allow me to repeat myself: This is critical. In fact, this might be the most important element of trading for new traders in the stock market. A new stock market trader who evaluates his trades, winners and losers, in an effort to learn what works and what does not, will make quantum leaps forward in terms of ability and profitability. If you have a working trading plan and evaluate every single one of your trades after you have closed it you have already beaten 95% of the competition.8. What are my rules for managing profits?What's the problem with profits? Well, believe it or not there is one, and it's a serious one. It's called euphoria, and it clouds the judgment perhaps more than any other emotion related to trading. Start piling up the profits for the first time and it won't be long before you are convinced you are king of the world. About 30 seconds later you'll be broke, following a series of unwise and exceedingly risky trades. So have a plan for protecting closed profits when you have reached your goals for the week or the month. Don't give them all back.9. How will I reward myself for following my trading plan?Don't leave this out. Following your trading plan will bring rewards in the form of profits, but you should also consciously reward yourself for doing so because it is such an important part of successful trading. So if you finish the week or the month (or even the day) without having broken any of your trading rules, find a way to reward yourself. You deserve it. You are in rare company.If you follow your plan you are improving your chances of becoming successful stock market or forex trader.
Happy Trading,
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