July 29th, 2010
GoldRock Insider
As Seen on Yahoo Finance!
New individual traders often feel lost and clueless after they spend a few days trading in the foreign exchange market. Specifically, if you are new to the world of Forex, you often feel under-privileged compared with senior traders and financial institutions, especially the banks who seem to have access to market knowledge that individual traders do not. However, what makes the senior traders and banks so successful is no secret; it’s just a matter of experience and resources. The main factors that distinguish them from the rest of the speculating crowd are their superior trading strategies, expertise in fundamental and technical analysis, swift access to financial data releases and command over Forex signals.
Big Players in the Forex Market
Large international banks and foreign exchange banks are the most active traders on the foreign exchange market, accounting for almost 80 percent of currency trading volume. These big players completely dominate the Forex market in terms of trading. The banks participate in currency trading using their huge pool of clients and their own accounts. 2010 Euromoney FX survey revealed that top ten most active traders including Deutsche Bank, UBS AG, Barclays Capital, Citi Bank etc alone account for 77 percent of Forex trading volume. Needless to say, they dictate the bid and ask prices in the Forex market. » Continue Reading »
July 20th, 2010
GoldRock Insider
Kerwin Rae shared some of his marketing secrets
I recently had the opportunity to speak in Portugal to a group of successful investors and business owners who were at a conference called the Billionaire Boot Camp. During the course of 7 days the attendees effectively studied how Billionaire’s run businesses, how they think, how they act and how they make what seems like consistent successful decisions. I was simply there to share with the attendees the power of learning about the Foreign Currency markets and share with them my views on the current market conditions and how they can best take advantage of learning how to trade Forex.
Now I am not professing to know how all Billionaire’s operate but I did share with the attendees how some of them go about considering financial decisions. What sets successful people apart from the rest is simply the decisions they make in life and business and the ability to make the right decisions at the right time.
This often comes down to a simple set of questions.
- What is the cost?
- What is the return?
- Can the return keep paying me for the same cost?
These are 3 simple questions are what many successful people ask themselves when making a financial decision. » Continue Reading »
July 9th, 2010
GoldRock Insider
Trading + Alcohol = Not a winning formula...
An oil dealer at PVM Oil Futures called Steve Perkins is reported to like a game of golf and a good drink, or at least he used too. He recently traded with $520 million dollars after a 4 day booze filled bender and figured he’d place a few trades while he was in the mood at 3.41am on his lap top. The story goes that he wanted to move the market and indeed did, substantially. Problem was he blacked out completely after the trades were placed and openly admits he was so drunk he had absolutely no idea what he was doing. What was the upshot of his substantial loss? He was fired and banned from trading in the UK by the Financial Services Authority.
It is alleged that he traded 9 million barrels of oil in the middle of the night and lost £350 million pounds.
Where is he now and what is he doing? It was reported recently in the London Evening Standard that he is now rumoured to be in talks about a new trading job trading energy contracts for a Swiss firm. It was reported that when the Financial Services Authority was asked what they were going to do about it, responded with a statement that said: “Mr Perkins poses an extreme risk to the market when drunk.”
June 30th, 2010
GoldRock Insider
It is an absolute fact that we all begin trading because we want more money in our life. Whether that is $50 a week or $5000 a week, the expectation is that we will make money. So what should be a realistic expectation for a trader entering Forex and how much is too much or too little or none at all when you trade Forex.
One thing that I have learnt through the school of hard knocks is that there is no question all budding Forex traders who join LTG GoldRock have a high expectation on their success in the first 12 months. The most common question I get asked is. “How long till I can make my educational investment back”. Ok a fair question however the answer lies in your commitment to learn to trade and becoming a student of the markets. Traders always overestimate how much money they are going to make in the first 12 months however underestimate what they can achieve over 3 to 5 years if they actually learn the skill and art of trading. A high expectation (which is a healthy thing if the expectation is realistic) is often met by disappointment in the first 3 months which dampens the long term opportunity as the money is not coming fast enough. Especially if they are joining to fix a financial situation. If you are considering joining LTG GoldRock for this reason then please don’t join.
I met one of my absolute very best graduates for coffee at my local coffee shop here in Noosa today. His name is Jimmy and he is honestly today living the life of his dreams. I am so proud of him!! » Continue Reading »
June 28th, 2010
Forex Classroom
One of the amazing aspects about trading and making money is that humans often think that to make money the system must be complicated and sophisticated. Certainly most people over complicate trading and think that they need to look the goods with a heap of screens, indicators and often alarms. I’ve seen and heard it time and time again that a trader has come up with a new indicator that’s going to blow the market out of the water, only to find that it fails miserably when it comes to trading it with a live account.
One aspect of trading that you must understand and take on board RIGHT NOW is this. The market is only a two horse race. Buyers and Sellers are the only horses in this race and the price is either going up or down. How simple is that. Yeah I know what you are thinking, it has to be more complicated than that, ITS NOT! Simply looking at a trend and placing a trade with a trend has the probability of continuing in the direction of the trend rather than reverse and go the other way. But why is it humans consistently try and build systems and indicators that over complicate things. The more complicated you make things the less likely you will make money, period. » Continue Reading »
June 22nd, 2010
Forex Strategy
As a trader you have hunches and opinions and you need to make decisive decisions. During the last few weeks I have been doing a lot of reading of economists I like to listen too and learn from that help me make longer term decisions.
Here in a nut shell are my two opinions and hunches for the next 3 months.
- The aussie dollar to continue to steadily rise
- We will also see a steady increase in the price of gold.
As Traders it’s important to stay up to date with the latest Forex News and global market movements. It would be ignorant to be in the business of Trading Currencies and not know what is happening around the world to each of the currency pairs.
June 21st, 2010
GoldRock Insider
Regular contact and support from your mentor is a must.
It is something you often hear about but rarely does anyone use mentors effectively and not many people actually have one.
I kind of fell across my mentor and you can call it luck if you want, but he’s 27 years older than me, old enough to be my dad but has taught me so many valuable lessons on the past 5 years I wanted to encourage you to consider getting yourself one. I can hear you saying “AB where do I start?”.
Well the traits of the mentor you want are simply the traits of the person you want to become. You see when I met my mentor who is also now probably my best mate and the Chairman of my company.
I had no idea he was going to be someone I looked up too and gained life lessons from. I just admired what he stood for and the lifestyle he had.
I bet you know someone you would like to be like. Someone you look up too, they stand for the things you stand for, inspire you and are successful. Go and buy them a coffee or dinner and be straight up with them and tell them that you respect and admire them and was wondering if you could chat from time to time with them about what you are doing in your life and ask for their advice. I do this all the time still today, and it is amazing what happens. » Continue Reading »
June 8th, 2010
Forex Classroom
There is a misconception and perhaps an easily overlooked fact about Forex trading and how profits are really calculated.
Forex is an unique market where as the price moves from one pip to another pip you as the trader can chose what each point is going to be worth before you enter the trade. For example if we are buying shares on the stock market each share will have a specific value, for example $1.20. You can’t alter it.
When you invest in Forex, the trading platform will ask what you want each pip (or point) to be worth. In other words if the EURUSD is trading at 1.1976 and it moves to 1.1977 that is one pip. You can chose the smallest volume to be 0.01 which is essentially .10c. You could have each point be worth $10,000 if you account could handle it.
That brings me to the point of traders making or losing pips and applying the real return on investment.
Here is an example trader John.
John takes 10 trades in a month and makes a +400 pip result with a 60% success rate of hitting his profit target. You would assume that John would be pleased with this result. He can hold his head high as a winner, he made +400 pips and a nice profit. Or did he? » Continue Reading »
May 27th, 2010
GoldRock Insider
It is a question that a lot of traders and the world’s markets would love to know, but the reality is not likely any time soon. Since the middle of 2008 China has essentially had it’s currency pegged to the USD through the Global Financial Crisis so as it protects it’s export and import market to the rest of the world. China says that in time they will change this policy but give no hints at when. All it will say is that it will continually push forward with reform and over time reform the Renminbi in a self initiated and controllable manner. In other words, “at our own pace.”
It would certainly be an exciting time to see the Renminbi as the code RMBUSD or do you think Washington might prefer USDRMB? I am sure if China has its way if it every does float on the markets RMB will be the base currency. I won’t be holding my breath for it to happen any time soon, the Chinese do things at their own pace and it’s proved to be an interesting strategy over the past decade with most of the world’s economists and central banks eagerly anticipating what China’s internal policies are for it’s still rapidly growing and demanding economy.
