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Sunday, October 18, 2009

Currency Profile Of Euro (Part I)

By Ahmad Hassam

EU has emerged as a major global political and economic power block in recent decades. The European Union consists of fifteen member countries that include the Netherlands, Portugal, Spain, Sweden, France, Germany, Greece, Ireland, Italy, Luxembourg, Austria, Belgium, Denmark, Finland and the United Kingdom.

Only 12 common currency countries out of these above 15 countries constitute the European Monetary Union (EMU). These 12 countries share a single monetary policy dictated by the European Central Bank (ECB). All these above countries share the common currency Euro except Denmark, Sweden and United Kingdom.

EMU has a highly developed and efficient fixed income, equity and the futures market. The EMU is the worlds second largest economic powerhouse after the United States. This makes EMU the second most attractive investment market for domestic and international investors.

In the past, the EMU had difficulty in attracting foreign direct investment or large capital inflows. The primary reason was the United States. Historically US assets have had solid returns. As a result, United States absorbs something like 70% of the total foreign savings.

However, the Euros importance is expected to increase with the introduction of the Euro and the EMU beginning to incorporate even more members in Eastern Europe. The capital flows to Europe is expected to increase.

Demand for Euro is expected to continue rising with foreign central banks expected to diversify their Euro reserve holdings even further. EMU is in fact a trade driven and a capital flow driven economy. Trade is very important to the national economies within EMU.

EMU has significant power in the international trade arena because of the size of the EMUs trade with the rest of the world. EU exports comprise almost 20% of the world trade. While EU accounts for only 17% of the world imports! Unlike United States, EMU does not have large trade deficit or surplus.

Both EU and the United States are two very important members of the World Trade organization (WTO). United States is the largest trading partner of EU. The formation of EU allows individual member countries to group as one entity and negotiates on an equal playing field with the United States. International clout is one of the primary reasons in the formation of EU.

Leading import sources for EU are China, Switzerland, United States, Japan and Russia. Leading export markets for EU are the United States, Japan, Poland, Switzerland and China.

Large numbers of EU based companies concentrate their research, design, innovation and marketing part of the activity in EU while outsourcing most of their manufacturing to Asia. EU is primarily a service oriented economy. Services account for more than 70% of the EU economy while manufacturing, mining and utilities account for around 20% of the EU economy.

It is important for most of the countries to hold large amounts of reserve currencies to reduce exchange rate risk and transaction costs. Most international trade transactions involve the British Pound, the Japanese Yen and the US Dollar. - 23208

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Learn Online Trading: Start with Good Penny Stock Listing Options

By Zachary Riff

If you have the right tools and the right information, stock trading can be very easy. Today, it's made even easier for beginners who can start investing their money online in good penny stock listing options. These are good ways to begin with, as well as gaining experience and creating your own workable trading strategy. For beginners like you, it's best to rely on a good online stock trading firm to help you start up.

There are two tools you will need for the tools: a good and reliable online stock trading firm and several very reliable and fast stock trading information portals. Begin by surfing for an online brokerage firm that offers free start-up accounts.

Many online brokerage sites offer courses on online stock trading, as well as services like small stock options, penny stock listing information, as well as stock news and data reports. Sites like these also offer advice and services on how to start buying and selling online, as well. Choose a site that you like and whose registration process and site navigation are easy to understand and maneuver through. Pick one that not only offers the courses on online stock trading, but also has great turnkey applications and solutions.

Getting the right stock information is vital to learning how to become a good online stock trader. The most common kinds of stock information you can get online (through your online stock trading firm) are updates on your stocks, updates on new shares and penny stock listing options, and other stock market information that you can use in your buying and selling.

You can also do your own research and browse through stock market news sites that cater specifically to the online stock trading community. Check for through online stock news portals, daily streaming stock quote and data and charts, and penny stock listing reports, and other stock updates.

These online financial and stock market news sites may also offer information about the stock market reports, penny stock listing data, and specific stock options that you may be interested to invest in. Be cautious, though: Don't be taken in by sites that say you don't need to learn about online stock trading. Online stock trading requires knowledge and experience, even for non-professionals who have been doing it for years. Start with small investments and penny stock listing options that are solid and reliable. Don't go for the kind that is highly erratic and unreliable.

The best way to practice stock trading is to go online. These investments are the perfect training grounds for you to develop experience and your own working trading strategy. Eventually, when you move on to trading bigger stock investments, you'll be able to apply what you've learned and find that online stock trading is a sound and reliable way to invest your money.

Keep in mind that the keys to learning about stock trading is starting with small investments and good penny stock listing options, learning how the market works and gaining the tools and valuable experience to be able to buy and sell shares, and lastly (but not the least, by far), getting the vital information that you need to ensure that whatever trading movement that you do, it's always the best move you can make. - 23208

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Investments In Australian Stock Market

By Michael Kaufmann

With the implementation of SEATS, a totally electronic trading system, the Australian stock market offers streamlined execution of orders. There are no market makers for ordinary shares, nor are there stop loss orders. Investors trade directly with each other. With an all-electronic system there are fewer delays, and this is good news for investors.

An online stock trader can be placed directly in touch with the SEATS system, through a broker, without undergoing a credit check. Online trading has been very popular lately with the introduction of trading bots and other new tools for an online trader.

This technology increases the field of investors in the Australian stock market. The Australian Securities Exchanges or ASX, has developed a mock trading program for students and potential stock traders. This program is a way to learn how to buy and trade shares on the ASX. The program is spread out over six months. The students are given a mock $50,000, to invest in the market. This teaches the students the ins and outs of trading and gives them the experience they will need in the real market.

Stock trading in Australia began in the late 1800s, as a set of six separate exchanges, one for each state capital. These merged into a single exchange in the early 1900s and eventually became the Australian Securities Exchange (ASX), which today has the power to regulate publicly-owned companies. Although the ASX is itself publicly owned, it is not permitted to regulate its own company, and no individual ASX shareholder is allowed to own more than 15% of the company's shares.

The Australian Securities and Investments Commissions or also known at the ASIC, regulate the small shares, the ASX does trade in the market. The Ministry can also be involved in the conditions related to the ASX licensing and operating rules.

There are numerous companies that openly discuss and give advice on how to follow the Australian stock market and its stock indices, the S&P, or what is also known as, the Standard and Poor list. The S&P joins the ASX in maintaining the stock index lists. The trading investor company, Intelligent Investor, employs a staff of investing experts that are ready to provide expert advice to their members. The advice is delivered on a one on one basis and in English. They offer a free trail membership with a 100% money-back guarantee. - 23208

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Trading Euro Against US Dollar

By AHmad Hassam

EUR/USD is the most liquid and the most popular currency pair among the forex traders. Trading currencies can be exciting and lucrative. Its a great market because of the way politics affect the trends. Elections, strikes, and sudden developments, both good and bad, can lead to significant trading profits if you stand ready to trade the euro is a convenient currency because it encompasses the policies and the economic activity and political environment of a volatile but predictable part of the world: Europe. EUR/USD is the most heavily traded currency pair in the global currency markets at the moment.

Inflation is not good for any economy. Most central banks fight inflation by increasing or decreasing interest rates in the markets. In the United States, where the free-market approach and a usually vigilant Federal Reserve make more frequent adjustments on interest rates. France, Italy, and Germany, the largest members of the European Union (EU), normally operate under high budget deficits and tend to keep their interest rates more stable.

The general tendency of the Fed is to make the dollar trend for very long periods of time in one general direction. Here are some general tendencies of the euro on which you need to keep tabs aside from the technical analysis:

- The European Central Bank is almost fanatical about inflation, given Germanys history of hyperinflation in the first half of the 20th century and the repercussions of that period, namely the rise of Hitler. That means that the European Central Bank raises interest rates more easily than it lowers them.

- The European Central Banks actions become important when all other factors are equal, meaning politics are equally stable or unstable in the United States and Europe, and the two economies are growing. For example, if the U.S. economy is slowing down, money slowly starts to drift away from the dollar. In the past that meant money would move toward the Japanese yen; however, because the market knows that Japans central bank will sell yen, the default currency when the dollar weakens is often now the euro.

3) EUR/USD currency pair is heavily influenced by the political developments in the Eurozone. Especially when the European economy is slowing The flip side is that the market becomes jittery and often sells the euro during political problems in the region.

As usual, you want to closely monitor major currencies and the cross rates. Its okay to form an opinion and have some expectations, but the final and only truth that should make you trade is what the charts are showing you. The direction that counts is the one in which the market is heading.

It is always best to choose only two or three currency pairs and become a specialist in them. Fundamental analysis can help you determine the strong/weak currency pair. Use fundamental analysis to determine if USD is expected to lose value and EUR is expected to gain more strength that means that the currency pair EUR/USD is perfectly timed for swing trading. Use technical analysis to make the entry and exit decision. Combining fundamental analysis with the technical analysis can give you the edge as a forex trader. - 23208

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Real Estate Investment Analysis Software

By Silace Zyllion

Investment software for real estate is an helpful apparatus in their purchase, rent and sell analysis. Real estate software provides the investor a unambiguous comprehension of their investment, financing and return options, and is practical in predicting a comparatively correct return on investment. If the right real estate software is chosen, the investor can use the real estate software to determine cash flows, net present value, income, and most other investment ratios. If the software contains a sensitivity analysis, the investor can additionally balance distinct financing and sales scenarios to increase their return on investment.

A colossal advantage for most real estate software packages is the tool's penchant to save time and manual analysis.

Many of the real estate software programs hold inclusive financial outputs including: tax calculations, income statements, cash flow statements and even investment ratios. Software is incredible for adding in business disbursements and even helps determine capital gains. On the whole, these tools help the real estate investor reveal the best approach to capitalize on their return on investment for a certain property.

If you have a simple understanding of business, you will discover most software programs to be comparatively easy. Depending on your level of knowledge, the data returned from many software programs can be much more complete than needed. It is good nonetheless to retain access to the added extensive calculations; especially if you are working with a bank or associates who need extra financial data.

For more extensive investors, you may need to use a calculator that does both residential and commercial analysis. It is imperative to understand that the two types of investment are extremely different animals, but with the correct tools, the calculations can be simple.

If you plan to do any investing in real estate, choosing a superior real estate software program is the first step into receiving the biggest return for your money. - 23208

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