Inside Trade | Black Gold

The technological revolution walked hand-in-hand with the demand for oil. The unquenchable demand has been running for years, depleting the vast supply of oil reserves all over the world and won't stop till the last drop. Turmoils and disputes rose when powers strangle each other to control this almost extinct commodity. The recent disputes on the Spratly islands was rumored to root on the vast oil reserves on some of the islands. It was also rumored that the intervention of some notable countries in the middle eastern affairs was also due to the control struggle on the oil resources.

Oil, also known as Black Gold, has a very great influence on the currencies because it makes the economy running. United States is one of those who has a very high demand for oil. So as a rule, when the oil prices go up, the dollar falls down and vice versa. USD being one of the major currency, influences the Forex market in return.

However, countries which exports oil, Canada for one, will have a positive impact whenever the price of oil increases. The great influence of oil on world economy makes it a very vital item for fundamental analysts.

Inside Trade | EUR/USD

The most famous of all the “majors,” EUR/USD is truly the crowd's favorite. The demand on this currency pair is undoubtedly high. The very attractive pair owes their gratitude from their respective countries. Euro being a unified currency on most first world countries in Europe and the US dollars belonging to one of the super powers of the world, none other than the United States of America.

The euro-dollar currency pair was shown for the very first time on the 7^th of April in 1989 with an initial rate of 1.0445. At a statistics almost 5 years ago, shows that 27% of all the operations in Forex are done with this pair. Aside from its demand, its low volatility also attracts both the experienced and less-experienced traders. The risk of a spike is very low in this currency pair but its movement is active enough for profitable trades.

Traders who are trading with this currency pair must be aware and continuously monitor the economic environment in both United States and the Euro zone. The decline of the value of euro and its rumored impending break-up is the most significant topic hovering over this pair. The deteriorating value of euro is due from the 2008 financial crisis which devastated some countries of the Euro zone and left with tons of debts. According to some experts, the judgment regarding the fate of euro will fall early next year.  

Inside Trade | Devising a Trading Plan

Drawing your map to success is of vital importance. The “come-what-may” attitude is not applicable in Forex, and even in the concrete jungle out there known as the real world. The forex market is a terrain full of traps and pits  that lurks on every corner awaiting for you to make a mistake and swallow up your investment. If you're not careful then you might find your self falling in a swirling path of loss.

Getting a little profit is never enough. Even if you manage to get hold of a little profit, I doubt it would be enough to survive long.

Here are some reasons why you should consider devising a trading plan:

Keeps you on the right path – knowing your target profit and the limit of loss is very important. Managing your profit/loss ratio keeps track on your performance. How much you had gained so far and the damages that had been incurred on the process will indicate your target on the next trading session. It gives you the light to your target and also keeps you on schedule.

No business would survive without a plan – every investment needs a careful planning in order to flourish and survive. Trading only at your whim and intuition is an impending catastrophe awaiting to happen. If you want your investment to stay alive, better consider the option of brainstorming first before jumping into action.

If ever you're wondering what a trading is made of, then you may refer to these terms.

Pillars of your trading plan

1. The trading system
2. trade routine
3. mindset
4. weaknesses
5. goals
6. trading journal

Inside Trade | Trading Risk

In a previous article, we tackled Risk in a general sense and how it could be lessened in the context of trading in Forex. We will now tackle the specific risks, particularly the main market and non-market risks, that traders have to watch out for while he/she is trading.

Volatility

Is the amount in which the price of the currency may change. A high volatility means that in a short span of time, there maybe a tremendous change in the price of the commodity. On the other hand, a low volatility means that commodity is fluctuating in steady phase over a period of time.

Leverage

Though leverage is a very helpful tool especially to those who has a small capital, it is one of the things that traders had to watch out for. Leverage, as we all know, allows us to trade more than what we are really capable of. Those additional powers, loaned to us by the brokers, has corresponding responsibilities. The higher the leverage is, the higher the risk.

A small capital with a high leverage is a deadly combination because the account may not be able to handle the weight of the trade and even the slightest price movement may be fatal.

Technical Risk

Since we are trading online and the constant presence of the internet is a must, there is also a danger for technical problems. A sudden loss of power or an internet connection problem may jeopardize our trade so its better to have a back-up for these.

Ourselves

It is just normal for an internal struggle to lurk especially when you are watching your money dwindle to nothingness. But we must learn how to control these emotion for the proper assessment of the situation and which decisions should we take.

Dishonest brokers

It cannot be helped that some will try to take an advantage on you; disguised wolves among the sheep. There are certain brokers that have a doubtful reputation and it's up to us to find out who are those. We must be wary and a constant vigilance is a must to prevent us from being included in their list of victims. There are numerous websites that are dedicated in giving out broker reviews.   

Venturing on Forex | InstaWallet

InstaWallet is an InstaForex system directed towards providing clients with instant money transfer between customer accounts. It provides the vantage of instantaneous, comfortable, and reliable way to transfer money within InstaForex for free.

Each client is given a purse, upon activation of the service, which will serve as a holding area for the money that will be transferred or received. It is a privilege given to all the clients whenever they open an account with InstaForex and since each account has a specific purse then additional log-ins are no longer required.

Clients are allowed to send a minimum amount of 1 USD and a maximum amount of 2500 USD per day to their relatives or friends. They are also given the capacity of replenishing their accounts anytime they want without any charge. InstaWallet offers fund transfers from trading accounts that belongs to only one holder.

Despite the absence of additional passwords, each client are given the assurance that each transactions are secured. Certain security measures are being undertaken by InstaForex such as; manual and meticulous checking of funds by specialist; confirmation through SMS; and vigilant monitoring on an fraud related activities within the system.

Forexpress | Ilona Korstin in the 2012 London Olympics

In the recently concluded 2012 London Olympics, the Russian basketball team manage to land on fourth after their defeat to the French and Australian national teams. Along with the team is the face of InstaForex, Ilona Korstin,who greatly contributed to the team's victories by stepping up as a reliable shooting guard of the team.

The strong-willed and dedicated athlete proves herself once more in the prestigious tourney. The national teams of Canada, Brazil, UK, and Turkey yielded to the Russian team through the efforts of Ilona. But the victory was cut short after the Russian and French team had a face off at the semi-finals.

The bronze medal was also snatched from the Russian team's hand after a defeat in a decisive battle with the Australian national team thus arriving at the fourth place. Though the Gold is still elusive to the Russian national team, Ilona's fighting spirit made her truly remarkable.

In the previous Olympics, several awards and victories had already been bagged by InstaForex's face. Even though it is already her last appearance on the said event, she proved herself worthy until the final moments.  

Inside Trade | Preparing for the future - Futures

“The future belongs to those who prepare for it today.” - Malcolm X

We often encounter the word futures in forums or articles related to trading, and I often wonder what really is it. By definition, Futures is a contract concluded for delivery of a certain commodity in future at a fixed price. In order words, the traded commodity will be delivered within a specific time limit in a fixed price. The buyer is obliged to purchase the commodity on the predetermined future date while the seller is also required to sell the commodity in the given date.

Commodities such as Gas, Oil, Gasoline, Corn, Currency, Steel, Cotton, and Wood are the most often traded commodities used in everyday life. It is traded in futures stock exchange like NYMEX (New York Mercantile Exchange ), CBOT ( Chicago Board of Trade ), CME ( Chicago Mercantile Exchange ), IPE ( International Petroleum Exchange ), LIFFE ( London International Financial Exchange ), LME ( London Metals Exchange ).

Forex and commodities are traded in a very similar way. Both Fundamental and Technical analysis are applied in speculating price movements and Indicators, both macroeconomic and technical ones, are also present in this type of trading.

But certain differences also arises and unlike forex wherein the opened position may be carried out forever, futures have an expiration date. The standardized manner of encoding the commodities differ from the currency quotations. The first symbols brands the name of the commodity traded, unlike the currency quotation wherein two names of currency are present. It is then followed up by the delivery date. For example, NGH0 is decoded as NG (natural gas); H – March; and 0 – the year 2010.

Inside Trade | A Trader's Introspection

I saw this morning a funny graphic illustration about the habits of highly successful people. And it points out to only one thing, making money.

 In a time wherein consumerism is a very dominant mindset and the technology is fast evolving, money always count. A healthy, comfortable, and pampered life cannot be sustained without money. But is that what really matter?

It made me paused for a while to do an introspection of myself. To argue if this mindset is true and just and how significant this argument is. As a trader, money is not farfetched moreover hard to come by. As long as you have a capital and the capabilities to trade successfully then you're all set. The opportunity to profit is limitless and timeless. Trading can be done five times a week with only a minimal capital and whatever small amount you have may grow significantly over time.

But after  acquiring all the money we needed, do you think that it would suffice to satisfy our every need. I think not.

Most of us might sooner or later realize that it isn't the money that makes us happy but life itself. Living to our hearts content. Maybe you want to share it with someone or enjoy the self-satisfying isolation, at the end of the day you may ask yourself “Am I happy?”.

Venturing on Forex | InstaForex PAMM account system

Percentage Allocation Management Module or PAMM is a trading account designed for trust management of investor's overall capital. An Investor would allow a more experienced Trader to invest in his/her stead for a share in the profit. It would allow him/her to utilize your capital but you would earn from the profit in return.

PAMM accounts reduces risks for the investor, especially for the inexperienced ones, by allowing a  managing head to provide effective management of their funds. It also gives the managing head the advantage to earn more profit through investments from other investors. If you have the funds but has doubts in you're trading ability then this system is right for you.

Inside Trade | Introduction to the Technical – Moving Averages

Several decades had already passed since Forex had first shown its great potential to few wealthy and lucky individuals. Those were the days wherein only the elite could only embark on this kind of investment. Since then, Forex had evolved and adapted to suit the modern times and with it, its analysis.  Hundreds of indicators had already been devised but the simplest and one of the oldest type still lives and still chosen by professionals, Moving Averages.

Moving Averages analyzes the behavioral pattern of the trend by defining effective points for opening and closing positions. It is in the form of curves and comes into different kinds; Simple moving average (SMA), Cumulative moving average, Weighted moving average, Exponential moving average.

Though Moving average indicators had increased its number, their purpose remains the same – provide assistance to traders by means averaging price fluctuations.

Inside Trade | Swap

Every trade opened before 1700 EST and retained after it, is considered to be carried over to the next trading day. An interest is charged or paid for every position carried over the next trading day.

Swap is the amount of money deducted from or added to a client's account for the overnight position.

Swap may occur when two opposite positions with different settlement dates is opened simultaneously.

After the opened position is closed, another would quickly open thus serving its purpose; to carry over the opened position to the next trading day. It may result to either a positive or negative swap. The result is dictated by the difference in deposit and credit interest rates.

The swap rate and cost is set at the moment of trade execution. The bought currency of a quotation is taken as a deposit while the sold one is the credit. If the deposit rate surmounts the credit, the swap is accrued to the account. If the credit rate exceeds the deposit, then the swap is deducted from the trading account. A triple swap is conducted every Wednesday.

The difference in the interest rates had bred a new kind of strategy called Carry Trade. It is intended to generate additional profit through the process of acquiring positive swap.

Inside Trade | A Pillar of Analysis - Ralph Nelson Elliot

An American account whose extensive study of the stock market had lead him to develop one of the most famous and widely used analysis in the market, the Wave Principle.

Ralph Nelson Elliot was born on the 28th of July in the year of 1871 at Marysville, Kansan but later on moved San Antonio, Texas.

At the early age of 20, he started to take up executive positions for railroad companies in Central America and Mexico and later on entered the field of accountancy. He married Mary Elizabeth Fitzpatrick in 1903 that became his companion during his long years in Mexico.


He was regarded as a qualified economist and took part on several international projects of the government wherein he served as an auditor and consultant. During his service to the government, he managed to publish two books, Tea Room and Cafeteria Management, which is based upon his personal experience. He then started conducting business consultation in 1927.

In 1929, a great misfortune had struck Elliot. He acquired a malignant anemia and forced him to an early retirement at the age of 58 because he was already bedridden. But his spirit was truly indomitable and was resenting to be stagnant despite the his condition, so he began to analyze the stock market that later on pave way to the Wave principle. The work of Charles Dow (Dow theory) and Robert Rhea were his main influence.

After several years of research and investigation in the equity market, it lead him to the discovery of unknown patterns of price movement. The detailed result of his work was published in his book, The Wave Principle, wherein a collaboration was done with Charles J. Collins. Several other articles and books were also published after the first book and the last was Nature's Law-The Secret of the Universe  which become his final major work and was released in June of 1946. Two years late, he died. Doors to numerous research had been opened after his death.

Forexpress | The Last Leg – The Silk Way Rally 2012 Results

The result is at hand as the final stage of the Silk Way Rally 2012 came to conclusion. The tandem of a new route and unpredictable terrain are obstacles that contestants had to overcome before attaining their much awaited  victory.

But those few kilometers imposes ordeals that challenged both body and will. The InstaForex Loprais Team landed on the first place after the fourth stage, tackling the position from their main rival and alpha team of the bracket - Kamaz master. But a problem had hindered them from grabbing the victory and finished on the fourth place.

Even if they didn't get the first place, their display of sportsmanship and competitiveness had proved them worthy to be also called winners. The demonstration of high-speed, equipment infallibility and leadership was evident throughout the race. Ales Loprais crew only took this occurrence as a challenged and vowed for a come-back victory in the main competition of the season – the Dakar rally.

Inside Trade | Trailing Stop

Trailing stop is an order with a major function of an automatic maintenance of open positions with permanent shifting of stop loss level depending on price movement.

For example you open a bearish position and you start selling the currency of your choice. 
If the trend still go downwards then your stop loss would go down also but when it goes on the other direction, your stop loss would remain in its position and conduct its function when the necessary limitation is met.

It allows the trader to maximize his chances of gaining profit and at the same time reduces the risk in losing. Just keep in mind that trailing stop works only in an active trading terminal. In such unfortunate situation that it is switched off then the stop loss would be fixed at its current spot. 

Inside Trade | Perks of being a Trader

Excitement

As traders, we cannot deny the excitement involved. The surge of over flowing emotion that comes with trading is one of the reason why some are addicted to trading. The priceless feeling of triumphing against the odds or the urge to get back whenever you lose a trade is something that most mainstream job don't offer.

Status

Trading is not any ordinary job. It is a unique high paying job that sometimes uplifts one's status. It is something that you could be proud of to say whenever you bump to an acquaintance because only a handful has this kind  of  profession and it takes skills to survive.


Comfort & Luxury of Time

The comfort of being the boss of yourself and enjoying the homely wellness of your home is truly a remarkable advantage.  It would be ideal for parents because it gives them the opportunity to be with their kids while earning a living. What more for singles who could travel around the world and enjoy whatever luxury the world has to offer.

Money

The endless amount of money circulating in the financial market provides an unlimited opportunity to gain profit. A door to an opportunity to cease profit that depends only to your capability as an individual. Unlike the normal 8-hours job wherein you're only confined to a bracket of salary and not deriving from your ability to perform the job.  

Inside Trade | Maintaining Consistency and Improving Trading Results

The four most dangerous words in investing are “This time it's different”. - John Templeton

Often than not, we get excited when we stumble upon an article about a new system or charting techniques and ignore those articles directing to self-improvement. We perceived those articles with contents rewritten, recycled all over again and blended with some additional elements just to look brand new. But if we introspect a bit further down to its purpose ,then we would realize its true message. The success lies within the capacity of the trader and not the tools on his/her whim.

In reality, you really needed to analyze the market with tools such as indicators and charts but unless your strategy is already on its peak, an automated one, it still depends on the capacity of the trader.
Thus we should give more importance in improving ourselves before relying on those tools because no matter how good those charts maybe, it would just be wasted in an untrained hand.

Here are some aspects that you should watch out for:

Motivation

Keep yourself motivated, maybe a goal that you really wanted to achieve will suffice. Trading is not a walk in the park wherein everything would be served on a silver platter. It wouldn't bear a fruit unless you matched it with hard work, perseverance, and critical thinking. You need a whole bunch of motivation to consistently provide these attributes.

Balance

Balancing your emotions in trading allows you to focus more and choose the best course of action.
Trading while emotionally unstable will be like walking in an obvious trap without a back up plan to save you. Regular exercise not only keeps you physically fit but also helps in releasing the unwanted stress.

Preparedness

“ A wise man  in times of peace prepares for war”. Being prepared in all aspect, both physically and mentally,  greatly heighten your chances to profit. Devising a strategy ahead of time is a critical aspect in a successful trade.

Doing your homework is also a part of being prepared. Pointing out the mistakes of the previous trades and supplying necessary precautions and solutions would put the icing on the cake.

Focus and Attention

The ability to properly execute your strategy and reacting to the demands of the situation maybe only achieved with a high level of focus and attention. In forex, it only take a single second for a trader to loose their grip on the situation. Failing to analyze the market properly and thoroughly is an impending disaster awaiting to happen.