Breakout Fading Explained (Part II)

By Ahmad Hassam

If there is much market demand to buy above a resistance level or sell below the support, the forex broker acting as the market maker has to absorb all the buy/sell orders. However, you must know that the market maker is not a fool. There must be a seller for each buyer and a buyer for each seller.

Most of the retail traders being inexperienced or new like to trade the breakouts! When the new traders learn technical analysis, they tend to most eagerly follow trade recommendations based on certain chart patterns recommended in the books.

However, the seasoned traders prefer to fade breakouts. They do exactly the opposite of what the crowd is expected to do. Most of the successful traders have contrarian trading approach.

Most of the breakouts fail because the institutional or the seasoned traders take advantage of the crowd psychology of the retail or inexperienced traders and win at their expense. For every loser, there is a winner. Trading is a zero sum game.

Understand the tricks that can be played by the forex dealers and seasoned traders. Market makers, mostly the forex dealers and brokers can fade breakouts. Their game plan is simple. They will make money from the majority of the crowd. The crowd thinks that prices will rally happily after an upside breakout. Similarly, the crowd thinks that it will decline dangerously after a downside breakout.

Market makers have to take the opposite side of your trade whether you like it or not. They are the pricing counterparties to the retail traders like you and me. Suppose most of the retail traders have placed their stop entry order at a certain price above the resistance level.

Market makers reach into their pockets and spend some of their money to bid up the price to that level where most of the stop entry levels have been placed. Now they can sell to most of the traders who are desperate to buy thus making some decent profits from this trick.

Market makers get the chance to close their long positions by selling to the retail crowd. Now they begin to short. They try to overwhelm the buying crowd. This pushes the prices down, below the breakout level. This is the price level where many stop loss orders have been placed by the retail traders who wanted to trade the upside breakout.

Market makers have the information of their customers orders from their order book. Thus a potential conflict of interest exists. By buying from the retail traders who are selling to close their losing breakout trades, market makers happily offload their short positions now. Retail traders must know how to protect themselves.

Retail crowd thinks that the false breakout is due to the sudden turning of the market. Market makers often go on the stop hunting spree. False breakouts maybe the consequence of that! These false breakouts are most likely the direct result of the games market makers play. - 23208

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know These Forex Broker Games. Learn Forex Trading!

Forex Ivybot

By Frank Guest

Ivybot is unlike most automated trading systems, because unlike others it is not considered to be a scalping robot. Instead Ivybot uses two algorithms that measure the varying strength of trends at preset time frames, and takes a position in the trend when price fluctuations take place. Of course there are also other technical indicators that decide when these trades take place, such as time and volatility.

Forex robot trading is the best way to make money from this field. The main problem is that you have to find a useful robot which will give you the latest information regarding the changes occurring in the market. It should be able to update itself and work according to the fluctuations which occurred in the forex world. Ivybot which is recently launched in the market has got this unique feature which will prove beneficial for the people.

The Ivy League guys are not implementing this software just for their benefit. Even after the launch of this robot they will keep on updating this product as and when the forex world tends to change. They give you a lifetime guarantee which no other product has ensured.

Ivybot has created a perfect storm among the people and is ready for its entry into foreign exchange market. This makes it different from the other products which are available in the world of trading till date. Ivybot is not a scam or swindle and will prove fruitful to your business within a few months.

We are still waiting for the live proof that this software can live up to the hype. The backtest results look good, but the real proof is when it is tested in live conditions. I have seen tons of robots that perform very well when tested in yesterdays market, but most of them fail when it comes to being tested in unknown market conditions.

Even though costly Ivybot is a life long software and will make your financial levels stable. It will improve your career and help you in gaining a stable profit every month. - 23208

About the Author:

Get yourself the best Forex companion in the shape of the Forex Ivybot, right now! Right here with the Forex Ivybot.

Loans And The Housing Market Today

By Jake Smith

Today everyone wishes to possess a self owned house. Some people can afford to buy house on their own but majority of people prefer taking loans either from banks or financial institutions. There are many banks and financial institutions that are offering easy loans for purchasing houses and even construction of same. One may choose a bank or any financial institution on the basis of the banks charging lesser rate of interest. There are certain terms and conditions which should be followed before assigning the loan to a person. The banks or financial institutions shall also ask the person to submit some documents which are necessary in order to avail such loan. The basic reason for asking these documents is to authenticate the identity of the person who is in need of a loan.

There are various options for tenure of the loan like three years, five years, ten years and so on. These categories differ from one bank to the other. One may choose any of these categories which is suitable to that person.

EMI's which stands for Equated Monthly Installment varies depending upon the tenure one chooses. The more the number of years, the EMI will decrease. It means that the monthly payment of installments decreases as the number of years increase. If the number of years is less, the EMI will definitely increase. The main purpose of the bank is to get back the loan amount along with the interest.

The person who wishes to buy a house on loan should first calculate the price of the property. The other important thing is to see whether the property which the person is willing to buy has any other legal obligations which are to be fulfilled. It is always better to get a No dues certificate in order to prove that the property is free from any encumbrances. Bank or the financial institution before granting any housing loan requires the borrower in need of housing loan to submit application form along with other documents that are relevant and involve the financial repaying capacity of the borrower. These documents include income proof and residential address proof. Banks also check the residential address of the person as well as the company or organization in which the person is employed.

A sanction letter with all the details of the loan is issued after all required terms and conditions are fulfilled. The details of loan include the actual loan amount, tenure of loan, the rate of interest on loan amount and the manner of repaying the entire loan amount. The official's of bank or financial institution also keep the original documents which are in context to property being purchased. The purpose behind keeping these documents are for the sake of security reasons. Till the entire loan amount is repaid these documents remain in bank's possession. Moreover, these documents are also sent for scrutiny. Final disbursement of loan is done only after bank officials visit this property and make sure everything is fine.

Those dreaming to have self owned house, for them loan is just like a blessing. These housing loans ensure one in fulfilling one's dream of self owned house. Dreams are converted into reality by housing loans. - 23208

About the Author:

To read more about loans, debt and bankruptcy options, check out BankruptcyOptionsUSA. Also, get more information on bankruptcy at Bankruptcy Options USA review now!

Franklin Mint Silver Coins Galore

By George Hugo

The Franklin mint Corporation is a private company which was established in the 1960s in Pennsylvania. It produces one of the most iconic coin like collectibles known as the Franklin mint Silver coin.

The man behind the formation of the private corporation was Joseph Segal. Generally Franklin Mint productions have been considered in the past to be the select item for lower income classes. This is the perception held by the majority of Americans.

Initially the company promoted its private minted gold and silver guineas and memorial medals. Then with the passage of time, they branched out into the production of other collectibles.

The sudden increase in the value of silver in the 1960s caused silver coins to fall out of domestic exchange in that decade. An interesting fact of the times is that some casinos were using silver coins in slot machines which obviously became worth more than the silver dollar!

To its credit the Franklin mint silver coin became the first certified replacement of the US silver dollar coin to be used as slot machine tokens.

This massive production capacity in Pennsylvania has the capacity to produce numerous sets of ingots, coins and themed medallions. These were sold on a shipment basis and buyers had to order periodically through a subscription plan.

Although Franklin Mint silver coins are the most popular of all the company's productions, silver was not the only medium used by the company. In fact the company ventured into producing special coin-like collectibles out of various precious and semi-precious metals.

These extensions to the range are often theme based and used the classic are masterpieces to create different appealing designs. Some of the products even feature celebrated and popular personalities.

The competitive pricing of the coins resulted in huge orders consequently contributing to their popularity.

The Mint went onto enhance the value of the collectibles by crafting beautiful wooden cases in custom packing along with fancy elegant packing that further enhanced the presentation of the product. Special certificates were also issued for the individual pieces and established the authenticity and charm of the pieces.

Of course the company met its objective of driving up the purchase price, this was around the same time as the cost of silver rose in the local and domestic markets.

The company then had to make use of pewter and bronze to make their products more affordable for the masses. But naturally pewter and bronze did not have the same effect on the collectors as did silver and hence the new line of collectibles did not become as popular as Franklin Mint silver coins. - 23208

About the Author:

Silver dollar coins are becoming increasingly popular as investments. For further info on Silver Franklin Mint coins please follow the links.

Tips To Follow When Getting A Managed Forex Account

By Bart Icles

Managed Forex Accounts involve the handling of a trader/client's investment by a duly licensed company or its designated representative/s to do Forex trading in their behalf. This can be an ideal alternative for any trader who deems it necessary to do Forex trading with defined and limited risks involved. The managing company constantly monitors market activities trends in a 24 hour basis, and then recommends to the client what to do when the need arises. Once the client is informed of the latest updates, they will then decide themselves on what possible actions to take.

Picking the right Forex company to manage your account is crucial to keeping your investments in the money making zone. Only hire a reputable and certified Forex management firm who has a good track record, and genuine references to offer. Before deciding to set yourself up with a Forex account with any company or individual, be sure to cover all the bases first by doing extensive research on them, and by contacting other Forex brokers for any valuable information that might otherwise be hidden or excluded by the firm in question.

Make sure you also understand the cost and fees involved the company charges for setting up an account with them. It pays to read the small print thoroughly before affixing your signature to the contract, otherwise you might end up on the losing side of the deal even just you're still just at the initial period.

Forex accounts offer the advantage of taking out most of the complex and crucial decisions concerning the market conditions and trends from an otherwise inexperienced trader, who would lose their precious investments if left to their own inadequate faculties. Forex management firms are in the know of most important inside information, access to real-time currency exchange rates, and crucial market indicators that can be used to help clients turn a tidy profit.

The downside to investing in a managed Forex account is their rather high investment requirements that may range anywhere from $10,000 to $20,000. Some management firms may offer staggered payment schemes or the like to fit some client's allocated budgets, but could still prove to be a disadvantage once the management firm makes bad investment decisions and loses a clients investment.

Forex trading is exciting and profitable once you know how it works and with a good managed Forex account. Invest in one now to see the desired results you've been missing before its too late - 23208

About the Author:

How do you become a phenomenal forex trader? Also, come learn how to determine if forex day trading is for you.