If you are doing forex trading, then you know the importance of a good forex broker. This is especially true if you are just starting out and do not have a lot of experience. A good forex trader will work with you and provide the information and tips you need to make the best trading.

Even though your forex broker will be offering you tips and advice, they do not make the final decision to buy or sell. You do. Therefore it is important you know what you want and make your own decision. It is ok to ask a lot of newbie forex questions to your broker if you are new to forex trading but make your own mind and accept the results.

Read the rest of this entry

Investing in bonds and the savings bank is safe as we will see. But if you are adventurous you can make a great deal from Forex.

The article is written primarily for the smaller investor who needs high yield, the man who has between, let us say, $5,000 and $100,000. If the $5,000 investor secures a return on his money not of 3%, or $150 per year, but 12% $600 per year his benefit will be material, not nominal.

If the $100,000 investor receives not $3,000 but $12,000 the difference is great enough to mean complete financial independence.

While theoretically the large investor, the one with $1,000,000 and up, does not need to consider such investments, because his $1,000,000 in the savings bank yields him $30,000 a year, or his investment in tax free bonds at 4% yields him $40,000 a year not subject to income tax, strangely enough this is the type of investor who invests the most heavily in the types of opportunities examined in this book. Some of the very largest aggregations of capital in the world do little other than invest in mortgages at discounts, foreign loans, real estate syndications and investment partnerships.

Read the rest of this entry

You sell your money to the bank (or other) and it allocates some interest payments to your savings account from its profits. Have you seen a Bank’s profits?

What do Banks do with your money? Well, they accumulate many small savers’ money to lend to a borrower.  The borrower buys his loan and repays it with added interest. The difference between interest rates is used by the institutions to pay salaries, pensions buy buildings and the usual business expenses.

THE WORLD PRESS occasionally reveals. “INSIDER DEALINGS”  where an individual is accused of amassing huge profits from a fast book financial transaction that proves to be illegal.

Read the rest of this entry

There are basically two types of Forex trading systems, mechanical and discretionary systems. The trading signals that come out of mechanical systems are mainly based off technical analysis applied in a systematic way. On the other hand, discretionary systems use experience, intuition or judgment on entries and exits. But which one produces better results? Or more importantly, which one fits better your trading style? These are the answers we will try to answer on this article.

We will first analyze the pros and cons about each system approach.

Mechanical systems

Advantages
This kind of system can be automated and backtested efficiently.
It has very rigid rules. Either, there is a trade or there isn’t.
Mechanical traders are less susceptible to emotions than discretionary traders.

Read the rest of this entry