Commodity Trading - The Next Profit Center?

With the rapid sinking of the US dollar relative to other foreign currencies, investors who can read trends and are students of history are looking for ways to make their capital grow. Housing and esoteric debt products have burst the way the stock market bubble burst in 2000, and the normal business cycle may have turned into a cycle of repeating bubbles, with strong inflationary trends.

As always, the process of investing is one of making carefully researched bets on things - selling assets when they've appreciated in value and buying those you think will rise in time. With the declining dollar, and risks of a recession, coupled with the Fed cutting the prime rate to banks as part of a staged bail out of the mortgage crisis mess, the trend lines make commodity trading appealing.

Commodity trading is simply buying commodities (such as gold, or silver or platinum) as a tangible asset. When inflationary pressures are strong (and interest rates are low), these can give a better return on investments. For example, in 2003, oil futures were trading at $25 per barrel; now they're trading at roughly $95 to $100 per barrel.

When you buy commodities, you are generally buying a piece of paper saying you own something and have the right to re-sell it, rather than taking physical delivery of goods. This can cause commodities markets to be quite volatile and subject to events in the world - for example, oil went up when the US invaded Iraq; it went up again when terrorists were caught in the Saudi oil terminals...and right now, while oil is priced very high, there's also lax capacity at the refineries in the US, which is a strong indicator that oil's current position is a speculative surge.

Other commodities to look into for trading are precious metals; when inflation hits (and we're in the process, with the Fed cutting rates, of starting an inflationary spike), precious metals tend to be one of the major categories of investment that's gains outstrip the rate of inflation. However, like oil, there is a severe risk of a speculative bubble, as happened in the early 1980s with the Bass brothers and the silver market.

Lastly, the environmental crises being touted in the media and the demand for "green" biofuels are causing a huge surge in the price of corn, where the subsidies for planting corn for making ethanol for E85 gasoline outstrip the price of growing corn for crops by a factor of four. While this is going to cause rises in prices for food (a major drive of inflation), it also means that commodity trading in corn, soybeans and other agricultural crops is a viable investment.

The general advice in commodities trading is that when your asset reaches the price point you want to sell at, sell at least half to realize your gains, and sell off the other lots over the next two weeks in chunks of 5 to 10%. Like a high stakes poker game, commodity trading rewards those who know when to leave the table rather than be held to the siren lure of the ever growing pot.

Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on Commodity Trading and Trading Coffee at http://www.commoditytradingpro.com

Reuters - The top three U.S. exchanges want regulators to adopt a "modified uptick rule" and a "circuit breaker" to curb abusive short selling, a trading strategy that profits from declining stocks.

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How to Use Japanese Candlesticks in Forex Trading

In the 1700s a Japanese man named Homma, a trader in the futures market, developed a method of technical analysis to analyze the price of rice contracts known as candlestick charting. Candlestick charts display the high, low, open, and close for a commodity each day over a specified period of time, in a format similar to a bar chart, but in a manner that maximizes the relationship between the opening and closing prices.

A narrow line shows the day's price range. A wider body marks the area between the open and the close, referred to as real body. If the close is above the open, the body is white or green (not filled); if the close is below the open, the body is black or red (filled). Steve Nison is normally credited with popularizing candlestick charting in the west and is recognized as a leading expert on how a trader might interpret the readings.

Candlesticks provide specific visual cues that make understanding price movement easier. Trading with Japanese Candle Charts allow speculators to better comprehend market feelings. Offering a wider range of information than traditional bar charts candlesticks give emphasis to the relationship between close price and open price.

Traders who use candlesticks are likely to more quickly identify different types of price action that tend to predict reversals or continuations in trends. Furthermore, combined with other technical analysis tools, candlestick pattern analysis can be a very useful way to select entry and exit points.

Candlestick charts are much more appealing and understandable than a standard two-dimensional bar chart. There are four elements necessary to construct a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period.

There are multiple forms of candlestick chart patterns:

White candlestick - signals uptrend movement

Black candlestick - signals downtrend movement

Long lower shadow - bullish signal

Long upper shadow - bearish signal

Hammer - a bullish pattern during a downtrend; Shaven head - a bullish pattern during a downtrend;

Hanging man - bearish pattern during an uptrend

Inverted hammer - signals bottom reversal, however confirmation must be obtained from next trade;

Shaven bottom - signaling bottom reversal, however confirmation must be obtained from next trade;

Shooting star - a bearish pattern during an uptrend

Spinning top white - neutral pattern, meaningful in combination with other candlestick patterns

Spinning top black - neutral pattern, meaningful in combination with other candlestick patterns

Doji - neutral pattern, meaningful in combination with other candlestick patterns

Long legged doji - signals a top reversal

Dragonfly doji - signals trend reversal

Gravestone doji - signals trend reversal

Marubozu white - dominant bullish trades, continued bullish trend

Marubozu black - dominant bearish trades, continued bearish trend

Candlestick charts are a visual aid for decision making in stock, forex, commodity, and options trading.

This is a very simplified primer on Japanese Candlesticks.

If you are not interested in this much detail I suggest that you research automatic Forex Trading systems.

If you would like to read about an amazing automatic Forex Trading System: Go here http://forexprofitswhileyousleep.blogspot.com/

Reuters - Ford Motor Co has granted Chief Executive Alan Mulally options to buy 5 million shares in the automaker under a long-term incentive plan, it said in a U.S. regulatory filing on Friday.

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Forex Scalping- A Key Market Factor You Must Know

Forex scalping requires a completely different mindset to other forms of day trading. Those who engage in Forex scalping normally make a number of trades a day taking somewhere between 5 to 10 pips from the market each time in many cases. Of course, the more trades that are made, the higher probability the scalper will have losses.

Hence the need to exercise discipline and not shoot at everything that moves. Look for only high probability trades. This however is easier said than done. That is why the following piece of information is critical in understanding market behavior from a Forex scalping point of view.

A Crucial Piece Of Information

The crucial piece of information we are referring to is this:

Somewhere between 60 - 80% of the time, the market is in consolidation.

This means that most of the time, the market is not making significant moves. It tends to range in a consolidation channel for hours at times before another significant move takes price to another level.

This market behavior pattern is ideal for Forex scalping once the trader fully understands it.

Develop Recognition Skills

Whenever the trader opens a chart, key support and resistance levels need to be identified. Previous highs and lows should jump out at the trader and be quickly recognized and identified.

To this end it helps to draw horizontal lines on the charting software to mark the top of a channel and the bottom of a channel on whichever time frame the trader is using.

The Key Forex Scalping Principle

The main principle that governs Forex scalping is the same principle that applies to all forms of day trading:

Sell The Rallies - Buy The Dips

Hence, when Forex scalping, the trader will look for ranges or consolidation channels where price is obviously moving (often within a 20, 30 or 40 pip range) and set an entry order to go long when price hits the bottom of the range, or an entry order to go short when price hits the top of the range.

There is always the possibility price will breakout at that point in which case it will be a losing trade. That's why it is important to maintain tight stops, perhaps no more than around 15 pips to keep the profit/loss ratio within reason.

Be Selective

To make Forex scalping trades higher probability it is important to select trades that have a number of elements going for them.

It is often not enough to just jump in on any range you see and enter an order to go long or short at the top or bottom of the range.

You want to look for ranges where the top or bottom coincides with other indicators. For example, the 200 EMA (Exponential Moving Average) is a very powerful indicator on the 4 hour, 1 hour, and 15 minute time frames. Seeing it is one of the most popular indicators of all time used by traders in the global market place, it pays to take notice of where price is in relation to the 200 EMA.

So if you see a trading range where the top or bottom also coincides with the 200 EMA on one of the higher time frames, zero in using the 5 minute chart, draw your horizontal lines to mark the range or consolidation channel, and choose a suitable order entry point. The 200 EMA provides a strong level of support or resistance, depending on which direction you are trading.

Likewise, if the top or bottom of the range is also lining up with a pivot level, or a Fibonacci retracement or extension level, you have added reasons to believe price is going to respect that level, at least for a while. You can then enter an order at the price point with reasonable certainty that you can grab 5 to 10 pips from the market, depending on the height or depth of the trading range.

Why Forex Scalping Methods Should Be Part Of Your Overall Strategy

This characteristic of market behavior, the fact price spends most of its time in trading ranges, makes Forex scalping a very profitable method once the trader has acquired experience and developed understanding and recognition skills.

Rather than waiting for the occasional significant price move, the trader who also has a Forex scalping strategy in his toolkit can utilize those long periods in the trading day when price doesn't go anywhere.

The powerful 200 EMA strategy - easy for newer traders:

http://www.vitalstop.com/Forex/Advisor/200EMA-forex-strategy.htm

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http://www.vitalstop.com/Forex/Advisor/forex-strategy-non-farm-payroll.htm

For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:

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Reuters - Stocks rose for a second day on Wednesday after JP Morgan Chase's chief executive said his bank was profitable in January and February, echoing comments by Citigroup's CEO a day earlier.

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Find the Best Online Trading Option

Online stock trading today got a new makeover. In the last few years, there has been a continuous rise in the opening of online trading accounts. In the case of a traditional brokerage house, everything was done manually and the trading process was quite cumbersome and time consuming. Now things have become much easier than ever before. If you have a PC and Internet access you can trade straight from your home or office. In addition, you can manage your funds online.

Moreover, one can access latest information of the current market, share prices, stock quotes and charts in just few mouse clicks. Thanks to the Internet that has brought a new revolution in the investment world. The Internet has definitely come up as a boom for investors. Now, anyone from anywhere in the world can access his or her account and can trade online.

Learn the stock trading strategy

In the volatile stock market, the main reason why small investors fail to make substantial profits is due to their lack of market knowledge. Therefore, it is important to educate yourself: read the latest articles, news, reviews, etc and broaden your market knowledge. However, in order to gain profits, you need to follow some trading strategies. Target major company shares and analyze the market before you actually decide to buy and sell stocks. However, you should always keep an eye on the share prices. For example, if your share prices go up you can sell those shares immediately in order to gain quick profits. Even if you wait for further rise in the share prices, you should not wait for too long.

Since, share prices always go up and down therefore, you need to control your emotions. Be optimistic and always take right decision right from your mind and not from your heart. In order to make the right decision, you need to know the market trends, therefore, always keep abreast of the latest market news and information. Analyze the market using online tools and then trade accordingly. Learn about various other stock trading options and make e the right decision at the right time.

What is day trading?

In this type of trading option, traders need to buy and sell stocks in the same day. This is the most profitable stock option one can pick. However, day trading involves a lot of market analysis and therefore, it needs a lot of experience as well. According to expert professionals, if you are a new investor, this trading option will not be an intelligent choice. First start with simple trading and with experience, you can switch to day trading.

What is the best investment option?

No doubt, online stock trading today is the best investment option you can opt for. But, you should have comprehensive knowledge about the market. You should be aware of the terminologies that are often used in the stock market. You need to be flexible according to the market and then trade intelligently.

Why do people invest money? It is quite obvious, as most of us want future financial security. By investing one can save money for their future. So, why not save money from today? Invest in stocks and earn profits from the market.

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Which Courses in Currency Trading Should I Use?

There are tons of courses in currency trading out there. How do you know which one to choose? Well it really depends on what it is you're looking for. If you're brand new to currency trading and want to find out the basics or if you have experience and are looking to learn how to profitably trade the markets?

If you're a beginner to forex and what to understand the first steps of trading forex, then a couple of options are babypips.com or any number of great forex forums like forex factory. Babypips has a ton of great mini courses in currency trading. They have a new lesson almost everyday. Their approach is both very accessible and fun. It's just a perfect place to quickly learn the basics of currency trading. Another great place to learn are forums like Forex Factory. It can be a little daunting and is not as well organized as Babypips but there is a mountain of information on some of the basics of trading.

If you are a seasoned veteran of forex trading and still struggling along, then you are probably looking for something more advanced. You've struggled with the markets and are looking for a solution. I'd recommend trying to understand price action. Try to find courses in currency trading that focus on trading without indicators. I know this may sound strange considering everywhere you look, people are talking about trading systems with stochastics, MACD, moving averages and many other lagging indicators. But if you can understand the underlying reasons of price movement by looking at a naked chart, then you'll have an advantage over 95% of the trading public.

Forex trading success is much easier once you understand what you're looking at.

Make sure to check out my honest, unbiased reviews of forex trading courses.

Reuters - General Electric Co shares fell as much as 16 percent on Wednesday, touching their lowest point since 1991, as investors worried about a possible downgrade of GE's credit rating and how its finance arm would get through the recession.

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