Update at 11.18 GMT
EUR/USD
Buy at 1.2815
TP1 = 1.2865
TP2 = 1.2915
SL = 1.2765
TS 50 points
GBP/USD
Buy at 1.6225
TP1 = 1.6275
TP2 = 1.6325
SL = 1.6175
TS 50 points
USD/CHF
Sell at 1.1650
TP1 = 1.6610
TP2 = 1.6570
SL = 1.1700
TS = 40 points
FOREX-Dollar rebounds, ignores decline in interbank rates
* Dollar rebounds, shrugs off improvement in risk appetite
* Fed's Bernanke endorses idea of second stimulus plan
* U.S. stocks hold gains, with Dow, S&P 500 up 2 percent (Recasts, updates prices)
By Lucia Mutikani
NEW YORK, Oct 20 (Reuters) - The U.S. dollar rebounded on Monday as an improvement in risk appetite and a drop in interbank lending rates did little to dampen the demand for greenbacks by corporations to meet their financial needs.
Analysts said the dollar also received a boost from Federal Reserve Chairman Ben Bernanke's testimony before Congress endorsing another stimulus plan for the sluggish economy.
A second package would reduce pressure on monetary policy to provide all the stimulus for the economy, although it could worsen the country's already huge budget deficit, they said.
"This is more a story about flows. There is still some real money demand for dollars out there," said Alan Ruskin, chief international strategist at RBS Global Banking in Greenwich, Connecticut.
"People feel risk is coming back, but it's not coming back against all currencies. The risk story is not giving a clear indication for the dollar at this point, either. It's (dollar) largely flow."
Tight credit conditions and fears of a global recession have lent the dollar a safe-haven currency status.
Continuing efforts to bail out banks around the world, including the Dutch government's cash injection into ING and South Korea's pledge to pump funds into its financial system, pushed interbank dollar lending rates lower and revived interest in risky assets such as stocks.
European shares rose, taking a cue from stronger Asian stocks as investors chose not to focus on a looming global recession, with recovering stock markets also damping the rush for dollars. The three major U.S. stock indexes held most of the morning's gains, with the Dow up 2 percent and the Standard & Poor's 500 up 2.3 percent. The Nasdaq was up 1.1 percent.
EURO SURRENDERS GAINS
The euro slumped to session lows around $1.3287, wiping out gains that lifted it as high as $1.3530 in overnight trade on the back of the improvement in risk appetite. It was last down 0.6 percent at $1.3322.
That lifted the ICE Futures U.S. dollar index, which measures the dollar's value against a basket of six currencies, 0.7 percent to 83.067 .DXY.
Some analysts said the dollar's strength could also be linked to Tuesday's payout on Lehman Brothers CDS.
"That creates a technical demand for dollars. A lot of that has to be settled in dollars," said Boris Schlossberg, director of FX research at GFT Forex in New York.
The dollar's gains came despite London interbank offered rates for overnight dollars falling to a four-year low near the Federal Reserve's target rate of 1.5 percent. One-week and three-month rates fell by almost half a percentage point. LIBOR
"Liquidity is so thin ... companies and other financial institutions are using the dollar to cover all their finance needs," said Greg Salvaggio, vice president for trading at Tempus Consulting in Washington, D.C.
"Demand for the buck will remain high at least until the presidential elections. Until then, I would sell euros any time it gets close to $1.35 and buy it back when it touches $1.33."
Against the Japanese yen, the dollar was flat at 101.70 yen, after rising on Bernanke's endorsement of another stimulus package. The euro fell 0.6 percent to 135.46 yen .
"To the extent there is some more fiscal stimulus in the works, that does take some of the pressure off monetary policy to provide all the stimulus that the economy needs," said RBS Global Banking's Ruskin.
"The market would react initially as dollar positive although quite frankly, there is some serious danger that here we go again and the budget deficit is just blowing out to such extraordinary proportions we have lost control in a way."
Sterling gave up earlier gains and was last down 0.8 percent at $1.7140. The high-yielding Australian and New Zealand dollars clung to gains.
The Aussie dollar was last up 1.0 percent at US$0.6957, while the Kiwi dollar advanced 1.0 percent to US$0.6182 . Against the Canadian dollar, the greenback rose 0.9 percent to C$1.1925 . (Additional reporting by Vivianne Rodrigues; Editing by Jan Paschal)
* Fed's Bernanke endorses idea of second stimulus plan
* U.S. stocks hold gains, with Dow, S&P 500 up 2 percent (Recasts, updates prices)
By Lucia Mutikani
NEW YORK, Oct 20 (Reuters) - The U.S. dollar rebounded on Monday as an improvement in risk appetite and a drop in interbank lending rates did little to dampen the demand for greenbacks by corporations to meet their financial needs.
Analysts said the dollar also received a boost from Federal Reserve Chairman Ben Bernanke's testimony before Congress endorsing another stimulus plan for the sluggish economy.
A second package would reduce pressure on monetary policy to provide all the stimulus for the economy, although it could worsen the country's already huge budget deficit, they said.
"This is more a story about flows. There is still some real money demand for dollars out there," said Alan Ruskin, chief international strategist at RBS Global Banking in Greenwich, Connecticut.
"People feel risk is coming back, but it's not coming back against all currencies. The risk story is not giving a clear indication for the dollar at this point, either. It's (dollar) largely flow."
Tight credit conditions and fears of a global recession have lent the dollar a safe-haven currency status.
Continuing efforts to bail out banks around the world, including the Dutch government's cash injection into ING and South Korea's pledge to pump funds into its financial system, pushed interbank dollar lending rates lower and revived interest in risky assets such as stocks.
European shares rose, taking a cue from stronger Asian stocks as investors chose not to focus on a looming global recession, with recovering stock markets also damping the rush for dollars. The three major U.S. stock indexes held most of the morning's gains, with the Dow up 2 percent and the Standard & Poor's 500 up 2.3 percent. The Nasdaq was up 1.1 percent.
EURO SURRENDERS GAINS
The euro slumped to session lows around $1.3287
That lifted the ICE Futures U.S. dollar index, which measures the dollar's value against a basket of six currencies, 0.7 percent to 83.067 .DXY.
Some analysts said the dollar's strength could also be linked to Tuesday's payout on Lehman Brothers CDS.
"That creates a technical demand for dollars. A lot of that has to be settled in dollars," said Boris Schlossberg, director of FX research at GFT Forex in New York.
The dollar's gains came despite London interbank offered rates for overnight dollars falling to a four-year low near the Federal Reserve's target rate of 1.5 percent. One-week and three-month rates fell by almost half a percentage point. LIBOR
"Liquidity is so thin ... companies and other financial institutions are using the dollar to cover all their finance needs," said Greg Salvaggio, vice president for trading at Tempus Consulting in Washington, D.C.
"Demand for the buck will remain high at least until the presidential elections. Until then, I would sell euros any time it gets close to $1.35 and buy it back when it touches $1.33."
Against the Japanese yen, the dollar was flat at 101.70 yen
"To the extent there is some more fiscal stimulus in the works, that does take some of the pressure off monetary policy to provide all the stimulus that the economy needs," said RBS Global Banking's Ruskin.
"The market would react initially as dollar positive although quite frankly, there is some serious danger that here we go again and the budget deficit is just blowing out to such extraordinary proportions we have lost control in a way."
Sterling gave up earlier gains and was last down 0.8 percent at $1.7140
The Aussie dollar was last up 1.0 percent at US$0.6957
Trade Signal October 17, 2008
Update at 10.55 GMT
EUR/USD
Buy at 1.3405
TP1 = 1.3455
TP2 = 1.3505
SL = 1.3455
TS 50 pips
GBP/USD
Buy at 1.7305
TP1 = 1.7355
TP2 = 1.7405
SL = 1.7255
TS 50 pips
EUR/USD
Buy at 1.3405
TP1 = 1.3455
TP2 = 1.3505
SL = 1.3455
TS 50 pips
GBP/USD
Buy at 1.7305
TP1 = 1.7355
TP2 = 1.7405
SL = 1.7255
TS 50 pips
Trade Signal October 15, 2008
Update at 11.15 GMT
EUR/USD
Sell at 1.3660
TP1 = 50 pips
TP2 = 100 pips
SL = 1.3700
TS 50 pips
GBP/USD
Sell at 1.7540
TP1 = 50 pips
TP2 = 100 pips
SL = 1.7590
TS 50 pips
USD/CHF
Buy at 1.1340
TP1 = 40 pips
TP2 = 80 pips
SL = 1.1300
TS 40 pips
EUR/USD
Sell at 1.3660
TP1 = 50 pips
TP2 = 100 pips
SL = 1.3700
TS 50 pips
GBP/USD
Sell at 1.7540
TP1 = 50 pips
TP2 = 100 pips
SL = 1.7590
TS 50 pips
USD/CHF
Buy at 1.1340
TP1 = 40 pips
TP2 = 80 pips
SL = 1.1300
TS 40 pips
Trade Signal October 14, 2008
Update at 11.24 GMT
EUR/USD
Sell at 1.3730
TP1 = 1.3680
TP2 = 1.3630
SL = 1.3780
TS = 50 pips
GPB/USD
Sell at 1.7575
TP1 = 1.7525
TP2 = 1.7475
SL = 1.7625
TS = 50 pips
USD/CHF
Buy at 1.1295
TP1 = 1.1335
TP2 = 1.1375
SL = 1.1255
TS = 40 pips
EUR/USD
Sell at 1.3730
TP1 = 1.3680
TP2 = 1.3630
SL = 1.3780
TS = 50 pips
GPB/USD
Sell at 1.7575
TP1 = 1.7525
TP2 = 1.7475
SL = 1.7625
TS = 50 pips
USD/CHF
Buy at 1.1295
TP1 = 1.1335
TP2 = 1.1375
SL = 1.1255
TS = 40 pips
Trade Signal October 13, 2008
Update at 10.57 GMT
EUR/USD
Buy at 1.3600
TP1 = 1.3650
TP2 = 1.3700
SL = 1.3550
TS 50 pips
USD/CHF
Sell at 1.1320
TP1 = 1.1280
TP2 = 1.1240
SL = 1.1360
TS 50 pips
EUR/USD
Buy at 1.3600
TP1 = 1.3650
TP2 = 1.3700
SL = 1.3550
TS 50 pips
USD/CHF
Sell at 1.1320
TP1 = 1.1280
TP2 = 1.1240
SL = 1.1360
TS 50 pips
Forex reserves fall; bank credit rises
Mumbai, Oct. 10 Our Bureau
The country’s forex kitty got lighter by nearly $8 billion in a single week.
The reserves have been dwindling for the past few weeks following sustained FII outflows from the domestic equity market. This coupled with selling of dollars by the Reserve Bank of India, took the forex reserves down by more than $1 billion in the last one month.
According to figures released by the RBI on Friday, forex reserves plunged by $7.87 billion to touch $283.941 billion for the week ended October 3.
The fall could be partly attributed to dollar selling by the RBI in the forex markets to stabilise the rupee, said Mr Ashish Parthasarathy, Deputy treasurer, HDFC.
In the previous week, reserves had decreased by $153 million to touch $291.819 billion.
The country’s forex kitty got lighter by nearly $8 billion in a single week.
The reserves have been dwindling for the past few weeks following sustained FII outflows from the domestic equity market. This coupled with selling of dollars by the Reserve Bank of India, took the forex reserves down by more than $1 billion in the last one month.
According to figures released by the RBI on Friday, forex reserves plunged by $7.87 billion to touch $283.941 billion for the week ended October 3.
The fall could be partly attributed to dollar selling by the RBI in the forex markets to stabilise the rupee, said Mr Ashish Parthasarathy, Deputy treasurer, HDFC.
In the previous week, reserves had decreased by $153 million to touch $291.819 billion.
According to the figures released by the Securities and Exchange Board of India, foreign institutional investors have been net sellers in the equity markets to the tune of Rs 416.80 crore for the week ended October 3, which also led to the decline in forex reserves, said dealers.
Foreign currency assets decreased by $7.741 billion to $274.911 billion. Gold reserves decreased by $127 million to $8.565 billion, while SDRs were unchanged at $4 million.
Credit growth
Despite the talk of the fund crunch , total bank credit for the fortnight ended September 26 grew by Rs 51,219 crore, to touch Rs 25,42,467 crore, according to the RBI figures.
Of this, non-food credit grew by Rs 51,234 crore to Rs 24,97,292 crore, while food credit fell by Rs 15 crore to Rs 45,175 crore.
Bank credit grew by 24 per over the previous year, which is above the RBI’s target of 20 per cent.
For the same fortnight, aggregate deposits grew by Rs 36,761 crore to touch Rs 34,42,138 crore. The growth in deposits is 19.8 per cent over the previous year.
According to a senior official from a leading public sector bank, the increase in credit could be attributed to the fertiliser subside disbursal, which was committed earlier. Oil companies were also borrowing from banks and rolling over the money, he said.
Foreign currency assets decreased by $7.741 billion to $274.911 billion. Gold reserves decreased by $127 million to $8.565 billion, while SDRs were unchanged at $4 million.
Credit growth
Despite the talk of the fund crunch , total bank credit for the fortnight ended September 26 grew by Rs 51,219 crore, to touch Rs 25,42,467 crore, according to the RBI figures.
Of this, non-food credit grew by Rs 51,234 crore to Rs 24,97,292 crore, while food credit fell by Rs 15 crore to Rs 45,175 crore.
Bank credit grew by 24 per over the previous year, which is above the RBI’s target of 20 per cent.
For the same fortnight, aggregate deposits grew by Rs 36,761 crore to touch Rs 34,42,138 crore. The growth in deposits is 19.8 per cent over the previous year.
According to a senior official from a leading public sector bank, the increase in credit could be attributed to the fertiliser subside disbursal, which was committed earlier. Oil companies were also borrowing from banks and rolling over the money, he said.
Sometimes not trading is the best trade of all
The GotForex Weekly Newsletter
by Rob Booker
Trading currency is risky. You can sustain the total loss of your trading capital.
In the midst of one of the most volatile periods in the forex market in the last 10 years, what are you doing right now to protect your capital? What are the top 10 ways you, every day, manage your risk? Your trading account doesn't represent just the $500, or $1,000, or $100,000 that you have deposited. It represents possible future gains (or losses, of course). If you deplete all that capital on reckless trades, what will you have left to trade with?
It's always better to sit on your trading capital than it is to use it recklessly.
Big moves in the currency markets are exciting, for sure. Everyone seems to love a trend and loves even more to talk about how they caught a big piece of it. But we all know what it feels like to take one too many trades, or to risk too much on a single position, or to try to pick a bottom (or top) in the market and then find ourselves losing a significant amount of money.
Are you currently riding losing positions? Here are some thoughts.
by Rob Booker
Trading currency is risky. You can sustain the total loss of your trading capital.
In the midst of one of the most volatile periods in the forex market in the last 10 years, what are you doing right now to protect your capital? What are the top 10 ways you, every day, manage your risk? Your trading account doesn't represent just the $500, or $1,000, or $100,000 that you have deposited. It represents possible future gains (or losses, of course). If you deplete all that capital on reckless trades, what will you have left to trade with?
It's always better to sit on your trading capital than it is to use it recklessly.
Big moves in the currency markets are exciting, for sure. Everyone seems to love a trend and loves even more to talk about how they caught a big piece of it. But we all know what it feels like to take one too many trades, or to risk too much on a single position, or to try to pick a bottom (or top) in the market and then find ourselves losing a significant amount of money.
Are you currently riding losing positions? Here are some thoughts.
I can't tell you whether you should open or close any specific trades. But as you think about your trades, consider the following questions:
I take a lot of flack at times for suggesting that you are better off speaking openly about your trading mistakes with other people. I don't say that because I delight in hearing about your mistakes. I do it because if there is any possible way that you can find your way out of the losing trades you're in, isn't it worth it to actively and openly try to find that solution?
Are you currently experiencing unusually large gains?
Here are some thoughts.
There is nothing quite like the joy of making a good trade. We like to be right. We enjoy the thought that we planned, executed, and closed a position successfully. Here are some thoughts if you've recently found yourself in this fortunate circumstance:
Most of all, please don't become so accustomed to this huge market movement that you expect these huge trends to come along every week of the year. We are experiencing volatility that is off the charts, that is higher than anything we've seen in a long time. Most of the time, the market does not move like this - so please do not start to expect that the GBP/JPY is going to move 1,000 pips every day for you.
- How does your current loss compare with what you expected to lose, based on the testing of the system you are trading?
- If your system is not tested, and you do not know what the expected rate or size of losses should be, what can you do right now to find that information?
- Have you shown your account to someone that you trust, an experienced trader, who can help you look at your positions and talk about them?
- If you feel ashamed of having lost a great deal of money, consider what you can do to face that embarrassment head-on: it is better to deal uncomfortably with a loss in the open than it is to privately blow your entire account. Any pride you feel that you are protecting by not talking openly about your mistakes will, in the end, be a very expensive investment.
- Remember that everyone has experienced losses. Even significant ones. Warren Buffett's company Berkshire Hathaway is named for the textile company he invested in that became a sinkhole for money and cost him a great deal of time, effort, and capital. Any successful trader you speak to will frankly discuss the worst trades they've made and what they learned. These experiences have been, in some cases, more instructive and meaningful than even their most profitable trades.
I take a lot of flack at times for suggesting that you are better off speaking openly about your trading mistakes with other people. I don't say that because I delight in hearing about your mistakes. I do it because if there is any possible way that you can find your way out of the losing trades you're in, isn't it worth it to actively and openly try to find that solution?
Are you currently experiencing unusually large gains?
Here are some thoughts.
There is nothing quite like the joy of making a good trade. We like to be right. We enjoy the thought that we planned, executed, and closed a position successfully. Here are some thoughts if you've recently found yourself in this fortunate circumstance:
- Well done! Congratulations on the profitable trading!
- Remember that your profits are only "on paper" until you take them out of your account. A close friend of mine accomplished the nearly unbelievable feat of earning profits of over $60,000 in his trading account earlier this year. He sadly lost all but $3,000 of that money, in a margin call, in just a couple of weeks - as he let the entire account slip away by making trades that were far too big. Princess Leia once told Grand Moff Tarkin, "the tighter your grip, the more star systems will slip through your fingers." Substitute "pips" for "star systems" and you have yourself the beginning of a good book about trading psychology.
- It's easy to fall prey to the worry that you did not hold onto your winning positions long enough. Be careful about being ungrateful for the winners that you do have. Don't let what you didn't get spoil what you did get.
- Just because you've had some good trades does not mean that you have "figured it out." There is no holy grail of trading. Every trading system has its weaknesses. Be careful not to concentrate so much on the good points as to not pay attention to what can go wrong.
- Consider using part of your profits as a "Research and Development" budget. With your profits, you may have bought yourself some time to test, fine tune, or otherwise improve your trading skills. I'm not saying you should spend your money on education, or books - or spend any money at all. Perhaps the profits simply give you some breathing room to sit back and deeply think about what you did that got you to this point where you have experienced some success. Learn from your success!
Most of all, please don't become so accustomed to this huge market movement that you expect these huge trends to come along every week of the year. We are experiencing volatility that is off the charts, that is higher than anything we've seen in a long time. Most of the time, the market does not move like this - so please do not start to expect that the GBP/JPY is going to move 1,000 pips every day for you.
Trade Signal October 10, 2008
Last update 10.57 gmt
GBP/USD
Sell at 1.6920
TP1 = 1.6870
TP2 = 1.6820
SL = 1.6970
TS 50 pips
EUR/USD
Buy at 1.3546
TP1 = 1.3596
TP2 = 1.3646
SL = 1.3496
SL 50 pips
GBP/USD
Sell at 1.6920
TP1 = 1.6870
TP2 = 1.6820
SL = 1.6970
TS 50 pips
EUR/USD
Buy at 1.3546
TP1 = 1.3596
TP2 = 1.3646
SL = 1.3496
SL 50 pips
Trade Signal October 8, 2008
Last update at 10.53 AM GMT
GBP/USD
Buy at 1.7470
TP1 = 1.7520
Tp2 = 1.7570
SL = 1.7420
TS 50 points
As today we have seen a signal on GBP/USD only. So we prefer to focus on this pair instead EUR/USD and USD/CHF.
GBP/USD
Buy at 1.7470
TP1 = 1.7520
Tp2 = 1.7570
SL = 1.7420
TS 50 points
As today we have seen a signal on GBP/USD only. So we prefer to focus on this pair instead EUR/USD and USD/CHF.
FOREX Broker Rebate
This is a good opportunity even you are not a trader.. You can join in this affiliate program and earn some money from qualify Broker such as :
FXCM, Forex.com, MB Trading, Alpari, etc.
For detail brokers which are qualify in this program you can find here.
Bellow is the example how you get paid from qualify brokers :
Refer a client: You get 10% of trading volume commissions generated by client
Your client refers a client: You get 2% of trading volume commissions generated by client
Their client refers a client: You get .5% of trading volume commissions generated by client
OK, here is the link to became an affiliate and get your rebate and cash back.
FXCM, Forex.com, MB Trading, Alpari, etc.
For detail brokers which are qualify in this program you can find here.
Bellow is the example how you get paid from qualify brokers :
Refer a client: You get 10% of trading volume commissions generated by client
Your client refers a client: You get 2% of trading volume commissions generated by client
Their client refers a client: You get .5% of trading volume commissions generated by client
OK, here is the link to became an affiliate and get your rebate and cash back.
Example: Lets assume there are 3 traders: Joe, Cathy and Jacob, who each trade 100 lots per month with FXCM. You know Joe.
You refer Joe to the cashbackforex site using your unique affiliate link. Cashbackforex receives a rebate of $10000 ($10 rebate per lot x 1000 lots) from FXCM for Joe's trades. This figure is an example, and actual figures are based completely on the trading volume of the trader. As a cashbackforex client, Joe gets back 60% ($6000), based on trading volume. So, we send Joe a check for $6000 cash, no strings attached, AND you get 10% which in this case is equal to $1000 cash for the month.
Joe gives his affiliate link to a trader named Cathy and she signs up on cashbackforex.com. Now, you will receive 10% from Joe's rebate ($1000) PLUS 2% ($200) from Cathy's rebate each month, even though you do not know Cathy!
Additionally, if Cathy then gives her link to Jacob who uses the link to sign up on cashbackforex.com, you will now receive 10% ($1000) from Joe's rebate, PLUS 2% ($200) from Cathy's rebate, PLUS 0.5% ($50) from Jacob's rebate, even though you don't know Jacob!
So, you receive $1250, which includes $250 from traders you don't even know.
In this way, referring just a few traders can potentially result in very many traders you are being paid for.
You will receive even more if you are a trader who signs up to receive cashback for your own trades, but this is not necessary to become an affiliate.
You refer Joe to the cashbackforex site using your unique affiliate link. Cashbackforex receives a rebate of $10000 ($10 rebate per lot x 1000 lots) from FXCM for Joe's trades. This figure is an example, and actual figures are based completely on the trading volume of the trader. As a cashbackforex client, Joe gets back 60% ($6000), based on trading volume. So, we send Joe a check for $6000 cash, no strings attached, AND you get 10% which in this case is equal to $1000 cash for the month.
Joe gives his affiliate link to a trader named Cathy and she signs up on cashbackforex.com. Now, you will receive 10% from Joe's rebate ($1000) PLUS 2% ($200) from Cathy's rebate each month, even though you do not know Cathy!
Additionally, if Cathy then gives her link to Jacob who uses the link to sign up on cashbackforex.com, you will now receive 10% ($1000) from Joe's rebate, PLUS 2% ($200) from Cathy's rebate, PLUS 0.5% ($50) from Jacob's rebate, even though you don't know Jacob!
So, you receive $1250, which includes $250 from traders you don't even know.
In this way, referring just a few traders can potentially result in very many traders you are being paid for.
You will receive even more if you are a trader who signs up to receive cashback for your own trades, but this is not necessary to become an affiliate.
Trade Signal 7th of October 2008
EUR/USD
Buy at 1.3590
TP = 50 - 100 pips
SL = 1.3540
TS = 50 pips
GBP/USD
Buy at 1.7450
TP = 50 - 100 pips
SL = 1.7400
TS 50 pips
USD/CHF
Sell at 1.1420
TP = 40 - 80 pips
SL = 1.1460
TS 50 pips
Buy at 1.3590
TP = 50 - 100 pips
SL = 1.3540
TS = 50 pips
GBP/USD
Buy at 1.7450
TP = 50 - 100 pips
SL = 1.7400
TS 50 pips
USD/CHF
Sell at 1.1420
TP = 40 - 80 pips
SL = 1.1460
TS 50 pips
Wall Street tumbles amid global sell-off
Monday October 6, 12:27 pm ET
By Joe Bel Bruno, AP Business Writer
Stocks decline amid global worries credit crisis is spreading; Dow falls below 10,000
NEW YORK (AP) -- Financial markets took a bleak view of the future Monday, seeing contagion in a credit crisis that threatens to cascade through economies globally despite government efforts to provide relief. The Dow Jones industrials skidded more than 400 points and fell below 10,000 for the first time in four years, while the credit markets remained under strain.
Investors around the world have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets. Global banks, hobbled by wrong-way bets on mortgage securities, still remain starved for cash as credit has dried up.
That's caused stocks to plunge in the U.S., Europe and Asia, and drove investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel; and the benchmark index that gauges fear in the market jumped to the highest level in its 18-year history.
"The fact is people are scared and the only thing they're doing is selling," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working."
The selling was so extreme that only 98 stocks rose on the NYSE -- and 3,092 dropped. That's a telling sign considering the stock market is considered a leading economic indicator, with investors tending to buy and sell based on where they believe the economy will be in six to nine months.
Monday's steep decline on Wall Street indicates that investors are becoming more convinced that the country is leading a prolonged economic crisis that is spreading to other nations. Over the weekend, governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits.
As the U.S. tries to shore up its battered banking system, the German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG. And France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed.
The Fed also took fresh steps to help ease seized-up credit markets. The central bank said Monday it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks.
In midday trading, the Dow Jones industrial average fell 476.13, or 4.61 percent, to 9,849.25, dropping below 10,000 for the first time since Oct. 29, 2004. At one point, the Dow was down nearly 600.
Broader indexes also tumbled. The Standard & Poor's 500 index shed 53.12, or 4.83 percent, to 1,046.11; and the Nasdaq composite index fell 101.86, or 5.23 percent, to 1,845.53. The Russell 2000 index of smaller companies dropped 26.33, or 4.25 percent, to 593.07.
In Asia, the Nikkei 225 closed 4.25 percent lower. Europe's stock markets also declined, with the FTSE-100 down 5.20 percent, Germany's DAX down 7.07 percent, and France's CAC-40 down 9.04 percent.
The anxiety was again obvious in the credit markets. The yield on the three-month Treasury bill slipped to 0.42 percent from 0.50 percent late Friday. Demand for bills remains high because of their safety; investors are willing to take extremely low returns just to have their money in a secure place.
Investors also moved into longer-term Treasury bonds. The yield on the 10-year note fell to 3.49 percent from 3.60 percent late Friday.
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com
By Joe Bel Bruno, AP Business Writer
Stocks decline amid global worries credit crisis is spreading; Dow falls below 10,000
NEW YORK (AP) -- Financial markets took a bleak view of the future Monday, seeing contagion in a credit crisis that threatens to cascade through economies globally despite government efforts to provide relief. The Dow Jones industrials skidded more than 400 points and fell below 10,000 for the first time in four years, while the credit markets remained under strain.
Investors around the world have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets. Global banks, hobbled by wrong-way bets on mortgage securities, still remain starved for cash as credit has dried up.
That's caused stocks to plunge in the U.S., Europe and Asia, and drove investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel; and the benchmark index that gauges fear in the market jumped to the highest level in its 18-year history.
"The fact is people are scared and the only thing they're doing is selling," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working."
The selling was so extreme that only 98 stocks rose on the NYSE -- and 3,092 dropped. That's a telling sign considering the stock market is considered a leading economic indicator, with investors tending to buy and sell based on where they believe the economy will be in six to nine months.
Monday's steep decline on Wall Street indicates that investors are becoming more convinced that the country is leading a prolonged economic crisis that is spreading to other nations. Over the weekend, governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits.
As the U.S. tries to shore up its battered banking system, the German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG. And France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed.
The Fed also took fresh steps to help ease seized-up credit markets. The central bank said Monday it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks.
In midday trading, the Dow Jones industrial average fell 476.13, or 4.61 percent, to 9,849.25, dropping below 10,000 for the first time since Oct. 29, 2004. At one point, the Dow was down nearly 600.
Broader indexes also tumbled. The Standard & Poor's 500 index shed 53.12, or 4.83 percent, to 1,046.11; and the Nasdaq composite index fell 101.86, or 5.23 percent, to 1,845.53. The Russell 2000 index of smaller companies dropped 26.33, or 4.25 percent, to 593.07.
In Asia, the Nikkei 225 closed 4.25 percent lower. Europe's stock markets also declined, with the FTSE-100 down 5.20 percent, Germany's DAX down 7.07 percent, and France's CAC-40 down 9.04 percent.
The anxiety was again obvious in the credit markets. The yield on the three-month Treasury bill slipped to 0.42 percent from 0.50 percent late Friday. Demand for bills remains high because of their safety; investors are willing to take extremely low returns just to have their money in a secure place.
Investors also moved into longer-term Treasury bonds. The yield on the 10-year note fell to 3.49 percent from 3.60 percent late Friday.
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com
Trade Signal 6th of October 2008
GBP/USD
Sell at 1.7560
TP1 = 50 pips
TP2 = 100 pips
SL = 1.7610
TS 50 pips
As today we have seen a signal on GBP/USD only. So we prefer to focus on this pair instead EUR/USD and USD/CHF.
Sell at 1.7560
TP1 = 50 pips
TP2 = 100 pips
SL = 1.7610
TS 50 pips
As today we have seen a signal on GBP/USD only. So we prefer to focus on this pair instead EUR/USD and USD/CHF.
Trade Signal 2nd of October 2008
EUR/USD
Sell at 1.3880
TP 50 pips
SL = 1.3920
GBP/USD
Sell at 1.7610
TP 50 pips
SL = 1.7650
USD/CHF
Buy at 1.1325
TP 50 pips
SL = 1.1285
Sell at 1.3880
TP 50 pips
SL = 1.3920
GBP/USD
Sell at 1.7610
TP 50 pips
SL = 1.7650
USD/CHF
Buy at 1.1325
TP 50 pips
SL = 1.1285
20 Trading Tips - The Most Important
1. Learn to take the losses.
The most important thing about making money is not to let your losses get out of hand.
2. Money management.
If you have an approach that makes money, then money management can make the difference between success and failure.
3. Do not fear the market.
Many new traders allow themselves to be frozen with fear over the risks and uncertainties of trading. Great traders get past it.
4. Personal responsibility.
Great traders accept personal responsibility for everything they do. You're the one pulling the trigger. Great traders know that all the trades they make, good or bad, are on them.
5. Motivation and determination.
You need a lot of motivation and determination to succeed. You have to accept that the most successful traders probably spent hours on testing out different strategies before they find a profitable one, and probably lost money in the process. So don't be put off if you initially lose money because as long as you can stay in the game long enough to refine your trading strategy, and have a willingness to succeed, then there's no reason why you can't become a top forex trader and make substantial profits.
6. Trade on the news.
Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices changes result in a serious currency flow.
7. Exiting Trades.
If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal
8. Psychological Factor
Stress is a natural part of trading; get used to it. Don't let your emotions sway you.
10. Go with the price direction – "The trend is your friend".
Trade in the direction the price is going in and you're results are almost guaranteed to improve
The most important thing about making money is not to let your losses get out of hand.
2. Money management.
If you have an approach that makes money, then money management can make the difference between success and failure.
3. Do not fear the market.
Many new traders allow themselves to be frozen with fear over the risks and uncertainties of trading. Great traders get past it.
4. Personal responsibility.
Great traders accept personal responsibility for everything they do. You're the one pulling the trigger. Great traders know that all the trades they make, good or bad, are on them.
5. Motivation and determination.
You need a lot of motivation and determination to succeed. You have to accept that the most successful traders probably spent hours on testing out different strategies before they find a profitable one, and probably lost money in the process. So don't be put off if you initially lose money because as long as you can stay in the game long enough to refine your trading strategy, and have a willingness to succeed, then there's no reason why you can't become a top forex trader and make substantial profits.
6. Trade on the news.
Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices changes result in a serious currency flow.
7. Exiting Trades.
If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal
8. Psychological Factor
Stress is a natural part of trading; get used to it. Don't let your emotions sway you.
10. Go with the price direction – "The trend is your friend".
Trade in the direction the price is going in and you're results are almost guaranteed to improve
11. One trade at the time.
The EUR/USD seems to be trading higher, so you buy GBP/USD because it appears not to have moved yet. This is dangerous. Focus on one Major at a time - if EUR/USD looks good to you, than just buy EUR/USD.
12. Stop loss policy.
You should have one and practice sticking to it. It will not be easy but it is an essential discipline to profitable trading.
13. Trading plan / system.
You should develop one! Then you must practice sticking to it. Do not try and second guess or trade against your trading plan
14. Take profit.
Try hard not to get out of profitable trades too early.
15. Don’t take loss on a winning position.
Once the market is going your way and your position reflect a positive P&L you will try to take as much profit as you possibly can. Some times the market will turn against you and at that point you must to close the position and not let it became a losing one.
16. Scaling up not down.
Scaling isn’t a bad thing it is just has quite a big toll if you don’t know how to use it right. The efficient way to use scaling is by increasing your winning position only. Once you see that you were right about the direction the market is taking, it's time to increase your position. A lot of traders increase a losing position hoping that the market will turn in their favor. It might happed from time to time but most of the time it will drag you down to a massive loss.
17. Have a plan and stick with it.
Be prepared for your trade. Look at the market and plan your trade. You must know your take profit and stop loss rates before you enter the trade.
Once you planed your trade you can be either right or wrong, the important thing is to stick to your plan. It maybe sounds easy to do but once you are in position and your emotions are involved it becomes essential.
18. Know why. Always know why you trade the way you trade.
This means that there is a reason why the trade should work and why you should have a winning position.
19. Momentum. In trading momentum can be a huge factor.
Traders are finding themselves in a positive or negative momentum; these momentums are caused by a synchronicity with the market or a lack thereof. That’s why when you have the momentum with you, you should open a bigger position and vice versa.
20. Don't waste your time on a losing position.
If you find yourself in a losing position while the market has plenty of opportunities to trade, do not waste your time on trying to save your position. It will be better to close your position and open a new and successful one.
Trade Signal 1st of October 2008
EUR/USD
Buy at 1.4150
TP 50 pips
SL = 1.4110
GBP/USD
Buy at 1.7850
TP 50 pips
SL = 1.7810
USD/CHF
Sell at 1.1150
TP 50 pips
SL = 1.1190
Buy at 1.4150
TP 50 pips
SL = 1.4110
GBP/USD
Buy at 1.7850
TP 50 pips
SL = 1.7810
USD/CHF
Sell at 1.1150
TP 50 pips
SL = 1.1190
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