Wednesday, August 5, 2009

3 MONEY SECRET

Could These 3 Strikes
Mark the Beginning of the End for the Dollar?

“...reserve currency status isn't a birthright and it can vanish when nations are irresponsible for too long.”
- The Wall Street Journal

The U.S. dollar's “reserve currency” status
is all that stands between you and a tidal wave of
crushing interest rates
and soaring prices.

Ensure you don't become a casualty by taking
these three simple steps...

Dear Dollar Holder...

For over 60 years, the U.S. dollar has been the world's reserve currency – the currency the rest of the world must have to trade. But China has already started taking dramatic steps to remove the dollar from that role.

Three recent, undeniable developments – strikes against the dollar – could now prove to be the tipping point in that collapse...

My name is Erika Nolan, Publisher of World Currency Watch. Right now I want to expose these facts to you. I want to show you exactly what the Chinese are doing and how it threatens everyone's, including your, wealth...

Then I want to show you the steps you must take to safeguard you wealth as this end game plays out. Simple, effective ways you can not only escape this inevitable assault on the dollar, but multiply the value of your capital and quickly and easily take back full control of your wealth and future.

And finally I want to introduce you to a market wizard who will show you how to do it. An “outside-of-the-mainstream” thinker – who understands the global economic realities that have brought the dollar to this end. A giant in his industry whose guidance has earned his legion of followers huge returns year after year. And who wants to show YOU how to bullet-proof your wealth and maximize your returns using the worlds largest, most liquid financial market.

This is not a drill. Ignore these warnings and everything you've worked for your whole life could disappear in a wave of dollar selling. BUT read on and you'll learn how to protect your life-savings and safely earn market-beating returns.

But first, let me show you the dangerous trend China has undertaken. And more importantly why you must do everything you can right now – not a year from now, not in six months – to immediately secure your wealth from it...

Three Strikes and the Dollar's Out

China is the largest holder of dollar denominated investments and reserves in the world. And they're losing money on it all. How much? Charles Dumas, chief economist and director at Lombard Street Research — economic consultants to some of the world's largest banks for nearly 20 years — sums it up...

"China makes 1-2 percent on its (largely) dollar reserves. It then loses up to 10 percent on the exchange rate and suffers a Chinese inflation of 6 percent for a total return in renminbi of about minus 15 percent. That is a loss of $270 billion a year, or a stunning 7-8 percent of gross domestic product."

The bottom line is, China is losing big on its dollar investments. And they're looking to get out of this losing trade. First by reducing reliance on the dollar.

Over the last six months, China has entered into currency swap agreements with several of Asian neighbors including Malaysia, South Korea, Hong Kong and Indonesia. Currency swap lines are essentially currency accounts with the others currency so they can trade with each other directly. Without having to swap for dollars first.

“Sooner than we think,
the dollar may be challenged by other currencies, most likely the Chinese renminbi. This would have serious costs for America...”

— The New York Times

Ordinarily you might say "so what" to agreements like these between Asian nations. But now China has arranged swaps with Brazil and Argentina. Two commodity-rich, Latin American countries who are just as happy to take the dollar out of the trade loop as well.

Fact: China kicks dollars out of their
trade loop –
STRIKE ONE.

But that's only the beginning.

China's down payment on the future

Since they're not using as many dollars for international trade, they're putting them to another use.

The Wall Street Journal reports... "Chinese government banks are willing to extend huge foreign loans to further China's long-term energy-security goals: ensuring diverse global supplies and winning entree into competitive regions for its oil companies."

This buys them a lot of good will and favorable trade terms from countries around the world.

They recently extended $10 billion in loans to Brazil's national oil company, Petrobras.

They've also injected more of their reserve dollars into other resource rich countries like Russia, Kazakhstan and regions of Africa. Lending money these countries wouldn't have access to otherwise, but also buying goodwill of some of the most resource rich countries in the world.

arrowFact: China is investing their dollar reserves outside the U.S. to ensure their future economic security. STRIKE TWO.

What's bad for the dollar can be VERY good for you!

China turning its back on the dollar carries big, bad implications for dollar holders everywhere – including you...

Being the world's reserve currency is a big deal. It means the U.S. can buy commodities like food and oil cheaper than the rest of the world, because we don't have to buy another currency first. It also means that we can borrow money to fund our deficits cheaper because other countries who hold large stores of dollars will lend them back to us (by buying our treasury bonds) more readily.

Without that edge, it would lead to skyrocketing prices everywhere, from the supermarket to the gas pump. On top of that, we'd see soaring interest rates – including the all the rates that affect you... From your mortgage to your credit cards...

But...

Investors who know how to take advantage of currency swings can find hugely lucrative opportunities to profit. From FDIC insured CDs that can pay up to 13% annually to NYSE listed securities making 34% in only 18 months all the way to huge triple-digit winners like these World Currency Watch members:

“I'm up 67.5% for a total of $12,296 profit. That translates to over
300% annually...”

Eddie B, CA

“Started with $3k and today it was almost $17k.. Not bad at all for less than 8 weeks.”
Sam W, FL

“I am 6 for 6 since July… 142%, 72%, 187%, 148%, 59% and 105%.”
Mike T, AZ

“I have booked 215 % profit ...position closed yesterday. Harvesting can be really sweet...”
Jos B, Netherlands

These members have already seen the light.

(Want to know how you could make this dollar assault work for you? See the box at right.)

Three strikes and it's time to arm yourself against the long term fallout of their actions

Finally there are “experts” who claim the Chinese would never do anything to hurt the dollar. They say the Chinese simply have too much exposure to dollar based investments. It would be like committing financial suicide.

But here's the truth. China controls nearly $700 billion in U.S. debt. And they certainly want to appear as if they're still willing to support U.S. debt. But in reality, they've been quietly adjusting their holdings to shorter terms underlining their loss of faith in the U.S. In fact, Reuters reported China...

“...has turned its back on long-term U.S. debt in favor of shorter maturities. Between August 2008 and March 2009, China bought $171.3 billion of bills, debt that carries a maturity of up to a year, compared with just $22.9 billion of longer-term notes and bonds with a maturity of two years or more. It also sold $23.5 billion of long-term agency debt.”

Now this isn't happening by accident. And the shift isn't going to play out in one day. It's a complex undertaking – like a game of chess. When you play chess, you try to maneuver your opponent into the most defensive position possible taking his pieces one by one.

That is exactly what China is doing. And when they're finished...

arrowFact: China won't care what happens to the US dollar. STRIKE THREE.

Because these steps are so subtle and the complex, you need to take steps to protect your savings – right now. Because in a year from now, or maybe even less, when the Chinese' actions are felt widespread, it will be too late. You must act while your dollars still have value left.

First: you need to arm yourself with knowledge of what's really going on. If you've read this far then you're already ahead of the game on that count. Second and more importantly...

Arm yourself with the tools to capitalize on this shift

Right now it's critical to move at least a portion of your portfolio into investments that are impervious to these dollar threats. Simple, safe, proven and profitable solutions that offer any investor the protection and income potential of the largest, most liquid markets on earth. Returns significantly higher than U.S. stocks. No matter your experience level, your capitalization, your investment needs.

Like NYSE listed securities that have low correlations to stocks and bonds. And pricing mechanisms that make them surge relative to a dying dollar. Securities that could have paid you inflation-crushing returns of 12% in just over three months... 34% in just over 18 months... and longer term returns of 55% in just three and a half years.

Or FDIC insured, short-term CDs that offer the same superior protection against the declining dollar. Plus, these can also pack your portfolio with spectacular gains of up to 13% annually. Nearly 4 times what a one-year CD will pay you here. All the safety and liquidity of cash, without the dollar's constant value drain.

Or like the 5.5% two-year bond you could have just cashed in. At maturity this bond paid an incredible total return of 53%! Imagine getting returns like that – 25% or even 30% – on a short term bond! More than FIVE TIMES what U.S. Treasuries would have paid you!

And finally, you need to...

Arm yourself with the only resource that will show you where
you can take advantages of opportunities like these..

The how-to is simple. To survive this relentless assault on your capital, you need to take at least a portion of your investments outside the dollar. To take advantage of currencies and currency investments.

But before you put this letter down and say “currencies aren't for me,” there are two things you must know.

First, whether you realize it or not, foreign currencies already impact your investments. They are the very lifeblood of every global economy. Offering you information absolutely vital for protecting any investments. Even if you think you'll never trade a currency in you life – understanding currency markets and the events that drive them is key to your future success.

Second, it's easier than ever to take full advantage of all the protection and profitability that currencies offer. Today there are literally hundreds of solutions from currency ETFs to CDs to foreign bonds that not only earn you interest income, but also pay you the appreciation on the currency itself.

Remember that two-year bond that earned 53%? It was a 5.5% “Kiwi” bond that earned a spectacular 37% on the rise in the New Zealand dollar.

And you can implement all these solutions right away. Without ever opening a Forex account. Currency investments you can trade directly into your stock account. Or even better, instruments that you can add to your IRA.

You'll be able to undo the devastation the dollar has already done to your portfolio. Cash in while others are cashing out. And do it under the watchful eye of one of the best in the business...

Introducing Chuck Butler —
Your Ultimate Guide to Currency Investing for Individuals

A 35-year veteran of the financial markets, Chuck Butler has done more to advance investor awareness and participation in currency based vehicles than perhaps any other banker alive today. Innovating new products to protect and grow investors money. Investments that could be held in FDIC insured deposit accounts or even IRAs.

Chuck Butler photo
Chuck Butler

He's spread his vision in the media in op-ed pieces for Forbes magazine. He has been interviewed by The Wall Street Journal, Forbes, MarketWatch and The St. Petersburg Times. He has an entire chapter dedicated to him in Craig Karmin's brand new, best-selling book The Biography of the Dollar, How the Mighty Buck Conquered the World and Why It's Under Siege.

His daily observations and analysis are read by upwards of 200,000 currency investors each day. And his predictions have been nothing short of stunning. In 2002 he wrote to clients, “... we believe that 2002 will see the beginning of a secular bull market in the euro that should take it to new highs.” The euro went on a straight line rally to gain an amazing 59% in only 3 short years. And it has continued its rise ever since.

And his pinpoint analyses have continued to this day. His predictions for 2008 alone included...

  • The euro returning to record levels... In February 2008, the euro shattered previous all time highs and has since put in five new record highs...
  • The Australian dollar to reach 96 cents against the U.S. dollar... In January 2008 the Aussie dollar began its climb from 85 cents reaching 96 cents in June...
  • The Swiss franc to reach parity against the U.S. dollar... In the first quarter of 2008, the Swissie took off from 86 cents to US$1.02!

Raves for Chuck Butler…

“Reading (Chuck) has really broadened my global horizon. It is a lesson in politics, federal reserve and finance.”
— MT, St. Louis, MO

“Chuck Butler has talked good economic — especially monetary — sense for years...”
— TA, Jacksonville, FL

“I think Chuck is one of the best, or maybe he's got a crystal ball!”
— PL, Gainesville, FL

“...his shared introspection on the financial markets broaden my knowledge on the subject, but his general affability and good humor lasts the whole day.”
— DN, Chicago, IL

“Chuck's...right on the money.”
— VK, Las Vegas, NV

He has averaged 30 speaking appearances a year including Money Shows across the country. He's been a featured speaker at Agora Financial's Investment Symposium — a global conference regularly attended by investors from 50 states, 7 Canadian provinces and territories and 6 continents.

And he has lectured at the podium of the New Orleans Investment Conference. One of the world's leading investment symposiums that has also featured such luminaries as Milton Friedman, Steve Forbes, Colin Powell, William F. Buckley Jr., and Lady Margaret Thatcher to name only a few.

Today, as President and Chief Currency Trader of EverBank in St. Louis, he monitors the pulse of currency markets constantly. Hedging the bank's $1.1 billion foreign currency portfolio, he understands the diversifying and risk-managing power that currencies offer. The low correlation to standard investments and the diverse pricing mechanisms that make them essential to any investors portfolio.

And now currency pioneer and innovator Chuck Butler will bring his decades of experience and insight to you.

Introducing Currency Capitalist...
Your Road Map to the Bullet-proof Protection
and Soaring Profit Potential of Currency Investing

Right now you have the opportunity to take advantage of all that expertise in a critical new publication, Currency Capitalist. Your road map to defying the dollar’s drain on all your investments for years to come.

Each month Currency Capitalist will bring you vital research and analysis on the forces driving currency markets — critical barometers of global financial health. Plus simple, safe, profitable opportunities to grow AND PROTECT all your investments.

Easy to read and to the point, this information-packed publication will put you light years ahead of anything the average investor thinks he knows about currencies. All in less than 30 minutes a month.

It’s a no-risk investment that will pay massive returns in your financial future. Each issue of Currency Capitalist will bring you: Currency Capitalist

  • The Big PictureCurrency Capitalist's feature article will give you an in depth analysis of the forces driving one of the “Big Eight.” Information and insights you won't hear anywhere else. Plus a crystal clear explanation of what it all means. And exactly what opportunities are arising from them. A level of reporting, research and analysis unmatched in any other publications.
  • Capitalist Insights —A concise overview of all the major currencies around the world. You'll be armed with knowledge about events impacting markets in every corner of the world. Not just dollar news, but an international view of economic developments and opportunities vital for anyone. A perspective that few people have access to. And still fewer fully understand.
  • Capitalist Emerging Opportunities —Take your investments, and returns, to the next level. Learn about spectacular opportunities from currencies that the average investor has probably never heard of. “Exotics” like the Brazilian real, Hungarian forint, the Polish zloty. Currencies in emerging and smaller markets that could turn a small stake into a substantial return – all in safe liquid markets.
  • The Capitalist Scoreboard —Your at-a-glance source of currency information. In seconds you'll have key data at your fingertips — from the most recent currency prices to the highest yields offered anywhere around the world. From macro trends to key economic reports driving them. You'll instantly know where the best opportunities in the world lie. So easy to read, you'll be on top of all the information you need in seconds
  • The Capitalist Portfolio —Never be in doubt about Chuck's recommendations. Everything you need to know; from each currency's performance to its buy, hold, sell status. How each recommendation might fit in with your investment needs. And simple to follow instructions that will make the “how to” of currency investing a snap. Always be sure of where you need to be in terms of your currency positions.
  • Plus FLASH updates as necessary —while we never expect it, should opportunities arise between issues, we'll update you with “flash” email reports so you never miss an opportunity.

...And you'll get it all every month without fail.

Plus with your subscription you get access to Currency Capitalist password protected website...

  • Home to the “live” portfolio — updated regularly to show you exactly how our expert's picks are performing. You get 100% straight forward reporting on everything from Currency Capitalist.
  • You'll also get access to the complete Currency Capitalist issue archive. Lose or miss an issue and you can instantly retrieve it from our complete archives. Accessible 24/7 from anywhere you have an Internet connection.
  • And Currency Capitalist is delivered both electronically and via mail every month. Instant electronic access to the most timely currency information and research anywhere. And a print version to take it with you anywhere.

This is an opportunity that you must not miss. And to make sure you don't, I want to offer you one of the most valuable currency resources you can get — absolutely FREE when you sign up...

The Currency Capitalist's 2009
Dollar Independence Library

Five Reports to Inflation-proof ALL Your investments and
Make You A More Profitable and Knowledgeable Investor

A comprehensive collection of 5 brand new online reports that will give you the most complete picture of what has happened to the once mighty dollar. Your road map for turning the dollar's demise into a gold mine for you. Both for protecting against the disastrous effects of inflation at home. And opportunities for earning substantial gains when other dollar based investments come under fire...

Inside your Dollar Independence Library you'll receive...

special reportSpecial report #1: “The Plot Against the Dollar: The Shocking Truth Behind the Demise of the Dollar” — An eye opening exposé that will show you the truth about what the Federal Reserve has done to your dollars. It's creation as a force to control the monetary policy of the United States. And the greed that has driven it to destroy our economic system. An incredible story 99% of investors have no clue about. — VALUE $49

special reportSpecial report #2: “The Currency Capitalist Investor's Guide: Your Go-to Guide for Putting the Portfolio Boosting Power of Foreign Currencies to Work for You” — Your step-by-step guide to the ins and outs getting it done including sections on “Why currencies,” “Currency pricing,” “Recommended investments,” “Setting up accounts,” and “What to expect from Currency Capitalist.” This report on its own will be enough to get you started on your way to a more secure, “dollar-proof” future. — VALUE $49

special reportSpecial report #3: “Currencies to Secure Your Retirement: Simple, Safe and FDIC Insured Deposits You Can Add To Your IRA” — Your guide to one of the simplest yet most opportunity-rich ways to take advantage of currency fluctuations. Deposit instruments as simple as opening a bank account. Your one-step way to change ever-weakening dollars into stronger more robust currencies. Reap the benefits of interest income PLUS price appreciation. Or better, invest in a basket of currencies to multiply your protection and profit potential. And find out how to deposit these currencies right in your IRA. — VALUE $49

special reportSpecial report #4: “Ultra-Simple Currencies: The ETF Solution to Harness the Dollar-busting Power of Foreign Currencies” — A revolutionary way to take full advantage of the protection currency markets offer. Traded right on the NYSE, these ETFs replicate the movement of the underlying currency. They let you combat the dollar's draining effects right in your stock account. Plus they pay dividends equal to the interest these currencies pay at home. A highly liquid market offering you all the protection and profit potential of the Forex market without any specialized knowledge about “currency pairs” or “pips.” — VALUE $49

special reportSpecial report #5: “Foreign Bonds: Your AAA Way to Security, Income and all the Power of Foreign Currencies in a Single Investment” — Explains a segment of currency investing that few ever consider. Foreign currency bonds that pay multiples of what the average investor can earn in the United States. From two to ten years, they offer assured coupon yields. Plus massive currency appreciation can make these simple investments pay truly unbelievable returns. An incredible opportunity for almost any investment need no matter what stocks, real estate or the U.S. economy does. — VALUE $49

PLUS you'll receive Chuck's very best recommendations for each investment covered. Get started right away protecting your portfolio from the dollar’s endless devaluation of your investments and savings.

Currency Capitalist's Dollar Independence Library — your first step in understanding all the incredible opportunities that are available to you today. Opportunities that will let you neutralize the dollar's stranglehold on your investments. And help you earn market-shattering returns.

This amazing resource sells in the Currency Capitalist bookstore for $245. But it's yours FREE when you sign on.

Act Now and Save More Than 50%

An annual subscription to Currency Capitalist is only $99. But if you take advantage of this opportunity right away, you can get a special subscription price of only $49. A discount of over 50%.

That's 12 monthly issues of Currency Capitalist. The publication that will give you investment research from one of the most respected currency professionals in the world. Information other investors can't get anywhere at any price. A view of international events that will make you a more savvy investor while protecting you from the devastating effects the dollar is wreaking on your investments. And the inside scoop on opportunities to reap market shattering returns at the same time.

Plus you get your FREE Currency Capitalist Dollar Independence Library — a $245 value. Your brand new online five-report resource that will explain everything from the forces driving the dollar’s decline to the best currency investments for your needs.

And you can have it all — a $344 value — for the tiny investment of less than 14 cents a day.

Your “110%” Satisfaction GUARANTEE!

And you can try it all with Currency Capitalist's iron clad guarantee of complete satisfaction. Take a full 60 days to read and digest your first two issues of Currency Capitalist. Read all the reports in your Dollar Independence Library as well. If for any reason you don't believe that Currency Capitalist will start you on your way to a higher level of investing, protection and profit, simply contact us to cancel and we'll gladly refund the full amount of your subscription. And you keep the both issues of Currency Capitalist and all five online reports as our gift to you.

It's that simple.

But I truly believe that you will find this information indispensable for all your investments. Especially in a time when the dollar's negative impact on your life and your investments is multiplying exponentially. In fact, to make sure you don't miss out...

Respond in the Next 7 Days —
Get a Sixth Special Report Absolutely FREE
and Lock In Your Subscription Price

The timing of this offer is so critical and the information so vital for your wealth and prosperity, I want to offer you a special bonus to act right now. AND an opportunity to lock in your subscription discount.

Simply call 1-800-818-7110 or click below in the next seven days and indicate you want to take advantage of our auto-renew option. Once you do I'll send you a sixth FREE online report…

special report“A World of Opportunity: Understanding and Profiting From the Most Explosive Currencies in the World” — This cutting-edge report will show you all the opportunities in the world of lesser known currencies. Often spectacular opportunities that even investors familiar with currency markets don't fully comprehend. Currencies like the zloty, forint, ruble, real and more! You'll get the inside on some of the best emerging and off-the-radar currency investments. From South America to Europe. From Asia to Scandinavia. Opportunities with explosive potential. — VALUE $79

Like the others, it comes with our editor's best play for the sector. And it's yours absolutely FREE if you act now.

PLUS when you sign up for our auto-renew option, you'll lock in your discounted subscription rate — for as long as you choose to remain a subscriber.

Each year when your subscription comes due, we'll simply bill your credit card $49. You'll never be bothered with renewal notices. Or price increases. Never worry about interrupted service or writing and mailing checks. Simply get your issues every month and stay on the cutting edge of currency investment opportunities.

An Amazing Value From Your
Ultimate Dollar Protection Advocate

Currency Capitalist is dedicated to protecting and growing your wealth in the face of this massive dollar adversity. It promises to bring you opportunities that will shield you from all the dangers the grossly devalued dollar has on your savings. And offer potential profit opportunities even if a dollar-led meltdown of financial markets occurs.

Just look at all the profit protecting and wealth-growing value you'll get...

  • Twelve issues of Currency Capitalist...a $99 value
  • Your online Dollar Independence Library ...a $245 value
  • Your fast response bonus — A World of Opportunity: Understanding and Profiting From the Most Explosive Currencies in the World — a $79 value
  • Password protected access to Currency Capitalist website including the live portfolio and issue archive
  • Flash email updates whenever breaking news hits the markets

A total value of $423. And you can lock it all in for the tiny discount subscription price of $49 a year.

Don't wait for the dollar to bleed out further —
Protect and grow your capital now

Act now before the dollar does more damage to your investments. It only takes a minute. Simply click below. Or for even faster service, call us at 800-818-7110 and we'll start your subscription right away. And we'll send you your Dollar Independence Library PLUS your special fast action report.

Don't delay. Everyday the Fed is finding new ways to pump more money into the system devaluing your dollars. And worse, increasing the chances of a dollar fire-sale by foreign investors.

Currency Capitalist is the only publication of its kind and will immediately get you started on your way to bigger, more secure returns while eliminating the disastrous effects the collapsing dollar is having on your investments.

I urge you to act now...you have absolutely no reason not to...

For your wealth and prosperity,

Erika Nolans signature

Publisher, Currency Capitalist

P.S. – Remember, the regular price of Currency Capitalist is $99 — a publication well worth the price. But by choosing the auto-renew option, not only can you avoid the hassle of renewal notices and writing checks, you'll lock in our $49 discount subscriber rate. (You'll never miss an issue. And you can cancel any time.)

P.P.S. — You'll also get our online Dollar Independence Library PLUS your special bonus report totally risk free. Remember, if in the first 60 days you aren't absolutely thrilled with the potential Currency Capitalist delivers to you, simply call and cancel for a full refund. There are no minimums — even with auto-renew. Call now or click below. You have absolutely nothing to lose.

STOCK SECRET

The Ultimate Stock Cheat Sheet
Why Currencies Can Boost Your Overall Returns Even
if You NEVER Buy a Single Foreign Currency Play

Also In Today’s Letter…

  • Money Is Traveling Down Under Right Now…
  • How to Gain an Edge in Your Stock Trading
  • Wal-Mart Issues Yen Bonds: What’s Next?

Good day, traders!

As many of you know, the foreign currency market is my domain. I’ve been a professional Forex trader and instructor for years, so everything I do in the financial markets revolves around foreign currencies in some way.

But the truth is even if I quit Forex trading cold turkey tomorrow and never placed another Forex trade again, I would still pay attention to the currency markets. And it’s not because I happen to love currencies.

It’s because just watching the foreign currency markets boosts my stock returns.

Not many retail investors know this, but studying the foreign currency market is one of the easiest ways to gain an edge in your stock investing.

By tracking which currencies are appreciating and depreciating around the world, you can tell exactly where global capital is flowing. When a currency is going up, it’s because money is flowing into it. When a currency is going down, it’s because money is leaving it.

When money is leaving it, all you have to do is look to see where global capital seems to be heading and you can bet that country’s stock market is about to profit.

Let me give you a visual below and you’ll see what I mean.

Money Travels from the U.S. to the Land Down Under

As you’ll see from the visual above, money is currently leaving the U.S. and other countries too, like Japan. Right now, that cash seems to be headed down under to Australia if you look at the appreciation in the Aussie dollar’s price.

I can also verify this by looking to the AUD/USD pair. As it goes up, money is leaving the U.S. and heading to Australia.

You see, the currency is the “door” or entrance into a country. Before you invest in a country’s stocks, bonds, real estate, etc. you have to FIRST convert your investment funds into “their money”.

Want to see another great visual? Here’s a chart that shows Australian stocks vs. U.S. stocks. When the red line climbs, it means Aussie stocks are gaining the upper hand over U.S. stocks. When it goes down, the U.S. stocks are gaining ground on the Aussie stocks. Also, there is a line chart that shows the AUD/USD currency pair too. Check it all out below.

The Aussie Dollar Closely Tracks Aussie Stocks

Australia’s stocks have been gaining on U.S. stocks ever since last February to March. Notice the Aussie dollar started rising vs. the U.S. dollar (line chart)…around the same time!

Notice how closely the two track each other.

Don’t Know Enough about Foreign Countries to Buy? Watch Currencies

Even if you didn’t know anything about Australia’s fundamentals, you could look at the major currency pairs to see where the money was flowing and pinpoint Australia. That would tell you where you'd find the biggest edge and overall technical strength.

The savvy currency trader, of course, knows that Australia has a positive GDP, while the U.S. doesn’t. Currency traders also know that Australia actually has some inflation while the U.S. still has deflation.

They know that Australia has a lower unemployment rate than the U.S. does. They know that China is recovering and buying many of its goods from Australia and not the U.S. So that’s why the AUD/USD is going up over time.

However, even if a stock investor didn’t know anything about the foreign market, they could still tell money is flowing into that country (Australia) more than the U.S. just by looking at the AUD/USD currency pair’s price. Therefore the stock investor would know that the Aussie stock market is about to get a boost from these global capital flows.

In fact, the U.S. stock investor will likely make gains in two ways: through the Aussie stock appreciation AND on the gains from the Aussie dollar. You would make extra money on the currency appreciation when you convert their Aussie profits back into U.S. dollars.

Bottom line: Whether you’re into bonds, stocks, currencies, real estate investments, etc. the currency market tips you off to where the money is flowing. The currency market is the “gate” that it has to go through before going into ANY of these other investments... and it’s the ultimate cheat sheet when you want to see where money is flowing next.

Happy Trading!
Sean Hyman, aka Professor FX

Thursday, July 23, 2009

EA TRADING TIPS

No Trading During NEWS Hour

Filed Under (Journal) by Casey on 20-07-2009

I have been thinking about news trading for quite sometime now…While this rule is not something new in the forex trading realm, I believe it should also be adhere too by robot or automatic traders.

On my previous posts on Slap Me Silly Please… John123x mentioned not to trade during high impact news. This is not exactly new advice, but neither was it an old advice.

I have been thinking about not trading the news for quite sometime now before my bit(h slapping by Cyborg.

My thoughts on this only after after the day I got whacked on S26 with volatility… The EA developer told me not to trade the EA during CHF news hour especially when SNB release this news…

news01

As you can see, this particular spike up and down on the 18 June 2009 was when SNB release their news

news01a

Read the rest of this entry »

BEST EA

Blink and You Might Miss It
Filed Under (Passing Thoughts) by Casey on 20-07-2009
Tags: Blink, Malcolm Gladwell

blinkHas anyone read this book, ‘blink’ by Malcolm Gladwell? It’s a great book. I just finished it.

It has nothing to do with trading. However, it has a lot to do with snap judgement and gives a more and deeper understanding on how our mind work in terms of making snap judgement or unconsious decision.

I don’t know about you. But somehow or rather, it makes me understand why veteran traders would outlast new traders.

They say trading is an art. This art is the ability to make decisions in the market under sheer stress and pressure. With so much noise and information like charts, news, trend lines, volume indicator, fan indicator, dog indicator, cat indicator, glaring at you on the screen, how one profits from the market is how one makes a decision to go in and out of to the market without second thoughts.

Well, there are a lot of thoughts that I have and points that I can associate this book with trading, but I shall leave you with one particular thought of mine.

You can not take the art out of trading by automatic trading. However, you can put the art of trading into automatic trading.

Tuesday, May 27, 2008

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Dollar Recovers Mildly, Focus on Consumer Confidence and Housing

Dollar recovers some ground in early European session today but is set to face tests of another round of economic data today as markets are back in action. Conference Board consumer confidence index is expected to fall another month from 62.3 to 60.0 in May, which is now more than 40% down from Apr 07's reading. Another round of housing data will be released too. S&P/CS Composite 20 is expected to deteriorate further from -12.7% yoy decline to -14%. New homes sales is expected to drop another -0.6% beyond the 17 year low to 523k.

Euro edged higher to 1.5818 earlier today but reversed after disappointing Germany Gfk consumer sentiment which unexpectedly dropped sharply from 5.6 to 4.9 versus consensus of 5.8%. Germany GDP growth was confirmed at 1.5% qoq in Q1. Imports rose 3.5% which exports rose 2.4%. Japan CSPI rose 0.5% in Apr, up from prior 0.4% but below expectation of 0.5%. Swiss Trade surplus widened to 1566m.

Technically speaking, recent fall in the greenback seems to be losing momentum. But while some more recovery is expected in the greenback, there is not sign of completion of the fall yet. Markets will look into today's data for the trigger of breakout from the tight range established this week in thin holiday conditions.
GBP/USD Daily Outlook

Daily Pivots: (S1) 1.9774; (P) 1.9802; (R1) 1.9847; More

Cable's retreat from 1.9852 continues today and extends to below 1.9750 minor support as expected. With an intraday top in place, further pull back could now be seen to 4 hours 55 EMA (now at 1.9695). But downside should be contained by 1.9612 cluster support (50% retracement of 1.9363 to 1.9852 at 1.9608) and bring rally resumption.

On the upside, above 1.9852 will indicate rise from 1.9363 has resumed. As discussed before, prior break of falling trendline resistance indicates that fall from 2.0391 has already completed at 1.9363, supported above mentioned 1.9337 low as expected. Further rally is now expected to be seen to 2.0029 resistance first and then 2.0391 resistance.

In the bigger picture, down trend from 2.1161 have made a low at 1.9337. The corrective nature of the rise from 1.9337 to 2.0391 and fall from 2.0391 to 1.9363 suggests that price actions from 1.9337 are developing into sideway consolidation to whole fall from 2.1161. Though, the structure and length of this consolidation could either be in form of a three wave sideway consolidation or in form of five wave triangle pattern. But in either case, the current rise from 1.9363 should extend further to test 2.0391 resistance. Nevertheless upside of such consolidation should still be limited by 61.8% retracement of 2.1161 to 1.9337 at 2.0464. On the downside, below 1.9612 will turn focus back to 1.9337/63 support zone. Break of this support zone will indicate that decline from 2.1161 has resumed.

GBP/USD 4 Hours Chart - Forex Chart, Forex Rates, Forex Directory, Forex Portal
Forex News Digest

* German Q1 GDP Figures Up From Previous Quarter
* The Day Ahead Canada & U.S.: U.S. New Home Sales, Consumer Confidence
* U.S. Preview: April New Home Sales Set to Fall Below 17-Year Low
* U.S. Preview: Conference Board's Consumer Confidence Index to Keep Falling
* Yen Falls Against Euro, Dollar as Asian Stock Rally Supports Carry Trades
* Dollar to Rise Versus Euro Later in Year, Mitsubishi UFJ's Takashima Says
* Dollar May Break Range as Double-No-Touch Options Expire, Mitsubishi Says
* U.K. Pound Advances Against Dollar for Second Day, Declines Versus Euro
* Libor Cracks Widen as British Bankers Struggle to Create Credible Reforms
* Pound May Reverse Gains as Spending and Earnings Slow, CMC Markets Says
* Australia, New Zealand Dollars Climb on Investor Demand for Higher Yields

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