Forex News Trading Tip: How To Trade The FOMC

March 8th, 2010

The Federal Open Market Committee (FOMC) decision on interest rates is one of the most powerful market movers in the forex market and when the markets move traders trading the news have the opportunity to make money.

The FOMC sets the discount rate or federal funds rate and because interest rates are set higher to induce foreign investment and therefore fight inflation during times of prosperity and lower to increase spending during recessions they are one of the main factors influencing the strength of the dollar.

Economic indicators play a huge role in the forex trading especially for traders who approach the market through fundamental analysis and trade the news. The Federal Open Market Committee (FOMC) interest rate decision is one of the most influential indicators for the US dollar and you can be sure after the news is released there is going to be volatility in the markets and volatility is what traders thrive on.

I have heard many ‘traders‘ say never to trade the news and especially the FOMC. Although the FOMC interest decision is a news event and can fall under the category of through fundamental analysis I am a technician and I believe that charts always price everything in. However I guarantee the market does not know what exactly the Feds comments and decision will be, therefore it is not priced in yet and this will cause the markets to react when they do find out. This is confirmed by the change in price after the decision and the continuation in the days following.

I have been trading the Fed for eight years now and yes I have been burnt in the past and that is exactly how I have come to learn how to trade it properly. The most common pattern to trade the Fed is the whip-saw. But do not be fearful of it, embrace it. Here is how it happens, first there is a large spike one direction (traders come in and follow that direction)followed by a large spike in the opposite direction (those same traders now sell their first position at a loss and reverse their position – this is when I take a position in the direction of the original move)followed by an extended move back in the direction of the original spike (all the emotional trades are left sick to their stomachs) and I am left holding a very nice position setting myself up to capture a larger than average market move.

If this pattern does not play out exactly as outlined I stand on the sidelines and do not trade at all. Because the markets are moving fast in the period following the FOMC interest rate decision I am watching a very short time frame, mainly the one and five minute charts.

Breaking the Limits in Health!

March 8th, 2010

On the whole people will avoid pain when possible. But bodily pain is going to come at some point, and the harshness of it varies.

Dealing with pain is a part of life, from birth to death. The majority of us will do all that we can to avoid pain, and fortunately the medical field has provided us with many forms of pain relief, but pain is something no one can totally avoid.

We cannot completely avoid pain it will occur, but fortunately the medical field has responded to our need for pain relief by making new medications and surgeries that can help to cure our sickness and ills.

But now more people are realizing that they want to live longer, healthier lives free from pain. Acupuncture has been a growing trend in the medical and alternative health field for several years now.

When someone thinks of acupuncture, they envision a closed, small room filled with incense, and a Chinese man sticking needles into the body. But this is not the reality of an acupuncture clinic. As a rule acupuncture clinics are very contemporary.

Adults are typically the ones that go in for acupuncture, and do so for a variety of reasons, but there has been a sharp rise in the amount of children eighteen and under who have sought after alternative medical treatment, and as a result has seen a vast improvement in the symptoms.

Most acupuncturists practice in offices like that of a doctor‘s, and the practitioners come from all nationalities. Adults are the general customers of acupuncture, although the practice is becoming more popular with a lot of teenagers and younger people. Research has made it known that acupuncture does offer considerable relief and the results last a fairly long time.

In order to make clear a point, acupuncture is not a universal remedy, it is not for everybody, and would definitely not be recommended for those children who suffer from the fright of needles. Because acupuncture involves the use of needles in all probability it would not be tolerated well by people who tend to scare very easily.

Acupuncture would not and can not be used on infants. For those who are prepared to try the course of action or have an illness that would help from a few sessions, it might mean the difference between a life of pain and one overflowing with good health.

Acupuncture is not a wonder cure and there are some reasons why people may not prefer the alternative therapy, like repeat visits, and most people look for instant cure-alls.

Many individuals do benefit from acupuncture, and as positive results have been confirmed time and again the course of action is well worth a try for pain relief.

But please remember that acupuncture is not an instant miracle cure and patients need to go through repeat treatments to show great improvement to their health. Nevertheless, if you have the persistence and the motivation to try a few session of acupuncture, you could find that the results are well worth the effort.

Internet Marketing – The Basics of Internet Marketing

March 8th, 2010

Many businesses are not only depending on their physical offices in marketing whatever product they have available for the general public. With the introduction of the internet, there are many changes that took place in the business world.

The internet allows a particular organization to reach many prospective clients wherever they are. Even if you have one office, you can practically advertise your goods/services anywhere in the world.

Putting your business in the internet world is not an easy task. Don’t regard the internet as a medium for advertising your business because it is more than that. You have to maximize the use of the unique qualities of the web, and in this manner, you will be able to provide prospects and clients with a better experience.

Internet marketing, this are two simple words but when put together, it covers a lot of subject matters that needs considerable amount of attention. The basics of internet marketing includes researching the market, search engines, advertising (email), marketing, promotion (local) and marketing offline.

Let‘s start with researching the market. You have to identify first your market, and think of ways on how to reach those markets. You should be able to convey a message with value, for your prospects and clients to get a better understanding of what you are trying to advertise.

The two most important words in market research are target and hit. An effective marketing research should be able to hit the identified target. Your target will depend largely on what your business can provide to clients. Examples are children aged 7-12; or it can be men and women.

Marketing research further involves primary and secondary research, combined research, quantitative and qualitative.

The next internet marketing basic is the search engine. This has two types, namely: directories search engine and the PPC (pay per click) engines. If you are to engage in internet marketing, the presence of a search engine is quite important. Although it can be quite expensive, most business can‘t possibly do without it because it is the most effective way to advertise the business.

Directories require a huge amount of patience for effective marketing. You have to wait for a couple of weeks before you actually appear on the site. Your site position can also change without further notice because this engines change their indexes and ranking rules every now and then.

PPC engines are more expensive but easier to utilize. You can obtain a much higher listing and fast and steady results.

Advertising is the next basic on the list. After you identify the desires and general wants of your target, you can also identify their interests. There are different publications which take up advertising; you can also make use of newsletter list advertising. It has three types: solo advertisement, classified ads, and top line ads.

Marketing through email usually leads to several problems, but despite this situation, it is quite effective because you can actually generate a response from three targets. You can make use of opt-in, newsletter, and UCE.

Email by opt-in is done by creating email addresses by which you send messages occasionally. Newsletter marketing on the other hand is similar to opt-in but it includes information like insights and articles. The UCE is also a form of advertising and is really effective, it also known as unsolicited commercial email.

The second to the last internet marketing basic is promotion. Make sure that you also promote in your local area, besides your first real clients will surely come from somewhere near your place. Since many businesses focus their attention to web audiences, they often forget to advertise locally. You can make use of press releases, magazines, newspapers, business guides, and many more.

Finally, marketing offline; classified ads are good if the publication itself focuses on your target market, otherwise you can do without it. Instead, you can correctly make use of print advertising, URLs, and movie slides.

Without advertisement, any business will fail. It is therefore imperative to have a good team that could handle all your business advertising, offline or online. Internet marketing requires a lot of thought, effort, and time. If you devote all these aspects towards proper advertising, all your efforts will be worthy once you see the business‘ success.

Five reasons Why You Shouldn‘t Ignore Classified Free Ads

March 8th, 2010

You‘ve something to sell, like a car, a house, a computer, a holiday, a rock concert ticket. You want to sell it fast, too, real fast, because you need the money. Advertising the item in the ‘For Sale‘ section of your local weekly newspaper is the obvious thing to do.

So you hunt around for the newspaper, which you thought you‘d thrown underneath the pile of magazines and other odds and ends stacked not so neatly on the table in the corner. No, not there. You hunt high and low but the newspaper is nowhere to be found.

Plan 2 – grab the Yellow Pages! Flip through until you find ‘Newspapers and Periodicals‘ and then scan through the list. There it is. Grab a pen, note down the telephone number and give them a call.

Seconds later, a friendly female voice asks what department you want. “Advertising“, you reply. Hey, almost there now. Patience. Seconds later another friendly voice asks how she may help you, and you explain you want to place an add in the ‘For Sale‘ section in this week‘s edition.

“You want to put an ad in the ‘For Sale‘ section in next week‘s paper.“, she insists. Maybe she hasn‘t heard me correctly. “No, in this week‘s edition.“, I repeat. “Sorry, can‘t do that. If only you‘d called us 30 minutes ago. It‘s the advertising deadline, you‘ve just missed it for this week. It‘s always midday on a Tuesday, no exceptions. Do you want to advertise in next week‘s paper?“

Silence. I‘m thinking. The paper comes out on Friday and yet my ad has to go in on a Tuesday morning. That sucks. It really sucks. I hang up the phone.

But wait a second. This is the age of the Internet, instant communication, web sites, email! No need to panic. After all, you‘ve seen many a classified ad site on your web travels, right? You‘ve never given them a second thought. Maybe now you should.

Load up Google in the browser, enter ‘classified ads‘ and hey presto, there‘s a ton of classified ads sites out there to choose from. Spoilt for choice, indeed.

The scene above may be a simple story but there is a serious point or two behind it. It neatly illustrates one of the very best reasons to consider using freeads sites – instant advertising. No waiting around. No deadlines.

And here‘s another good reason. Cost. It usually won‘t cost you anything to sign up with a freeads site. And it won‘t cost a penny to post your ad either. Post as many freeads as you want, too. Saves a boat-load of cash!

Another reason to use classified ad sites is the number available. There are hundreds to choose from, if not thousands. Sign up for one, or 10 or 50, if you have the time, that is. The sign-up process is usually straightforward, and fast, perhaps only requiring a valid email address.

The fourth good reason is reach. The local newspaper may have a circulation of a few thousand, or a few tens of thousands, confined to the area you live in. A classified ad site, because it is web-based, can reach across the country, or across the world. That means no matter what you are trying to sell, someone, somewhere will probably be interested in it.

If a picture is better than a thousand words, we come to the fifth good reason for using freeads sites – the ability to add a picture of the item you are looking to sell. Most classified ads sites allow you to upload at least one picture to go along with your ad, at no cost, a service which your local newspaper is unlikely to offer.

Forex News – Trading it for Bigger Profits

March 8th, 2010

Today, we have more news than ever and its delivered in the click of a mouse and many traders want to trade it and make profits – after all it‘s the fundamental supply and demand situation that drives forex prices…

No it isn‘t!

Supply and demand fundamentals are not important by themselves – it‘s how they are perceived that determines price.

Here is a simple equation for market movement to illustrate the above:

Supply and Demand (facts and news) + Investor Perception = Price

From the above you can see that it is investors who determine price.

We all have the same facts to look at but we don‘t all draw the same conclusions from what we see and this is the problem when trading news stories. If you could win by trading the news, with today‘s quality of it and lightening communications, the percentage of traders who would win would be far greater but the fact is:

The same amount of people who lost in forex trading 50 years ago lose today and this statistic won‘t change because you can‘t trade news stories in isolation. The problems with trading news stories are greater today than they have ever been.

Why?

Because we all get the information quickly and it‘s instantly discounted by the market, we all have the information at the same time in any corner of the globe online and no one has an advantage of getting it first before the herd.

The problem that is always present and has been since markets started trading is:

You don‘t know how the traders are going to view the news because their all driven by their individual motivations and emotions furthermore, the news always reflects the views of the crowd and the crowd is always wrong.

Will Rogers once said:

“I only believe what I read in the papers“

He was joking of course, but it‘s surprising how many people read a paper or see a view on CNBC and think they can trade it and win – they can‘t.

FACT:

Markets collapse and turn when they are most bullish and rally when they are most bearish – this is nothing to do with the facts but how the investors perceive them.

News stories can be used but it‘s not in the way you may think. If a bullish piece of news fails to push market higher, or bearish news fails to push a market lower, then you may have a trend change at hand.

You need to check and to do this, look at a forex chart and see the technical view of price only. Here you are seeing the reality or the truth in black and white. This gives you a detached non emotional view of price and you can decide which way to trade. Using the news in this contrary fashion is a great way to spot situations which you can time entry with your technical indicators.

There is an old saying:

“ If you can hold your head, when everyone around you is losing theirs you probably haven‘t heard the news“

In the above instance you have – but you‘re not taking the view of the majority. If you use news in the above way and combine it with forex charts to time your trading signal, then you have a powerful combination for bigger forex profits.