Can a complete beginner use a forex robot?
dkjc asked:
I have heard of currency trading. A set up a demop account a couple years ago. Of course it was a bunch of gibberish. I didn’t understand anything. But f course I am looking into a way I can be a at home Mom. I would be willing to learn about trading. But some of these robots make it sound like anybody can make money. If that were true, woudn’t everybody be rich? I have heard a lot of good things about FAP Turbo and Forex mega droid. I have also heard that these robots only work if you have been trading for years.
I have tried cash crate, surveys, reading emails, and a bunch other stuff. I don’t like it.
GED classes online
Filed Under Investing | 4 Comments
Is it a good time to invest in Gold? why or why not?
cling1tr asked:
I’m looking to invest around $8000. Should I invest in gold? What is it about the “economic times” that makes investing in gold a good or a bad time to invest?
If Obama “fixes” the economy or at least turns it in a more positive direction. What will this do to the value of gold?
If I invest now and things turn around in the economy will that drive down the demand and therefor the price of gold?
I am also interested in trading foreign currency. Can anyone give me a brief explanation of this as well as the pros and cons or both this and gold investing?
Thanks, webs
Filed Under Investing | 4 Comments
An insanely long question on inflation. How can we stop inflation?
…. . .-.. .-.. — asked:
What causes inflation?
Inflation seems to be a subject few people understand. The cause of inflation is likely purposely clouded by the people you send to Washington. To understand inflation, we must first review some history.
The USA started printing script, paper money, around the time of the Civil War. The script became promissory notes for an exchange of gold to foreign countries. All U.S. citizens were required to surrender their gold for dollars. All the gold in the USA became the property of the government. An exchange rate of $35 per ounce of gold was established. In international trading, the U.S. dollar became as good as gold.
Even though the U.S. dollar was backed by gold, the British pound sterling was the major currency used in the international commodities market up to World War II. As a result of England’s destruction during the war and the decline in value of its currency, the U.S. dollars took hegemony in international trade.
Everything went along smoothly for a few decades in the world. Trading between nations was conducted in U.S. dollars. After all, the dollar was as good as gold. Then came the 1960s.
For the first time in its history, the USA could not switch back to a butter economy after World War II. After every prior conflict the country was involved in, its military industrial machine was dismantled. The cold war prevented that. The country had to adopt a guns and butter economy, a combination never tried before by a non-imperialistic country.
A strain on the U.S. treasury started when the country engage in another war, began an expense space program, and started a costly entitlement program for the poor all at the same time. The cost of maintaining a military to block Soviet expansionism, fight a war in Vietnam, send men to the moon, and pay welfare checks caused the USA to spend much more money than it collected in taxes. The solution was simply to print more money. By the end of the decade, the USA had printed far more money than the gold supply could cover.
Foreign countries were well aware of the fact that the U.S. had print money that wasn’t covered by gold. In 1971, France demanded gold in exchange for the U.S. dollars it held in its reserves. This move by France started a run on Fort Knox. President Nixon countered this run by taking the dollar off the gold standard.
Without gold, something had to support the value of the dollar. Thus, the International Currency Exchange was established, where banks began trading currency just like investors traded stock on the stock market. It was the demand for the currency on this market that set the value of the dollar.
Although this solved the problem of the country’s gold reserve being depleted, it didn’t correct the fact that the USA had printed far more money than its economy and the world’s economy needed. Inflation, or devaluation of the dollar, followed this move by Nixon. It took well into the 1980s until the U.S. economy earned the excess money spent by the government during the 1960s.
So. How does the International Currency Market determine the value of the dollar?
When Nixon dropped the gold standard, the USA was the largest producer of goods on the world market. When a foreign country needed to buy U.S. goods it needed U.S. dollars to do so. The need for dollars created a demand for the script. As the USA produced more, more script was needed by foreign countries to buy products. This need of dollars supported the dollar’s value.
Nixon realize, however, that it would take several decades for the U.S. economy to earn back the huge government deficits of the 60s. To help shorten that period of time, a deal was struck with OPEC. OPEC agreed to demand U.S. dollars on the international market as payment for its oil. In return, the USA agreed to provide military protection to OPEC nations against any Soviet threat. This trade in oil for dollars became known as petrodollars.
From the mid 1980s through the 1990s, the world went along smoothly once again. The U.S. money supply balanced out with the world’s trade, and everything was hunkydory. But then came an event that upset the balance of nature: the start of the European Union.
The establishment of the European Union, and the issuance of its currency, could not have come at a worse time for the USA.
The industrialization of Asian nations, like China, had created a cheap source of consumer goods for the American public. So much so, that it created a trade deficit between the USA and those countries. As a result, the USA had to buy more foreign currency with its dollars to pay for those imports. This lessened the demand for dollars on the exchange.
Meanwhile, the new European Union became a big exporter of goods to the world, which increased the demand for Euors on the exchange and further lessened the demand for dollars. With less countries buying dollars, the value of the dollar declined on the currency exchange, and Americans had to pay more dollars for the goods it import, which meant inflation.
This isn’t the end of the story, however. Our government is still in the habit of spending money it doesn’t yet have. Government spending is based on projected tax revenue. And, tax revenue is based on personal income. The old formula for calculating projected tax revenue doesn’t fit the inflation cycle the country is facing today.
In the inflationary times of the 1970s the USA was able to produce more products to sell in the international market place. This increased production created more jobs and more personal income.
This is not the case today. Although America’s big business is selling more on the international market, the labor for that production is coming from outside the USA. Because of foreign labor, personal income is not increasing as it did in the 1970s. This is creating shortfalls in tax revenue, which again has the government spending more money than it is taking in, and has it printing money with no value to cover its expenses, as it did in the 1960s. This adds to inflation pressure.
Many foreign countries are viewing this as the same problem that prompted France to demand gold for its dollar reserves, which puts value of the $27 trillion US dollars in the currency exchange at even further risk.
Unless the trade deficit is brought under control we are going to continue in this cycle of inflation, which will lead to further deficits in government spending and more inflation yet again.
Filed Under Politics | 4 Comments
Foreign reserve will definitely run out in long term?
binocular222 asked:
Let’s talk about foreign currency inflow-outflow at developing countries:
FDI,FPI: When foreign investor invest in a country, they expect to earn more than what they paid which means in long term, when they withdraw principal+profit => foreign currency OUTFLOW is greater INFLOW
Loan (commercial loan, ODA, IMF, WB…): In long term debtor has to pay principal+interest => OUTFLOW is greater INFLOW
Net export-import: Most developing countries have deficit trade balance => OUTFLOW is greater INFLOW
So, in long term OUTFLOW is greater INFLOW and those nations will face a currency crisis? Is the only cure is export?
In fact many developing countries are experiencing a huge FDI-FPI inflow which leads to: “abundant F.currency at present => exchange rate rises => reduce export” => this will worsen that crisis?
Filed Under Economics | Leave a Comment
What is the best free forex tracking program for technical analysis?
lxvnrsw asked:
I’m just starting forex trading and was wondering what tracking program would be best for me to begin to do Technical Analysis with. It would be nice if I could use a free program or at least a low cost one but if I need to I’ll spring for a program to help me track currencies and develop a trading strategy. User friendliness is key because I’m a totally novice trader. Any reading materials for learning better TA or websites are also greatly appreciated.
Filed Under Investing | 4 Comments
Can you help me find a FOREX software?
Wiickid asked:
Guys, I am very interested in entering Foreign exchange trading. I believe there is big time money in that. I am very keen to learn how FOREX trading is done and stuff. I believe there are companies which are selling software’s which act as GUIDES and tell you when to buy or sell a currency. I saw ads of such software producing companies on TV and was much impressed. thye were also giving free demos in near by cities, but I missed out…) Could you pls let me know how I can find a company which sells this kind of software along with other training stuff????
Filed Under Financial Services | 2 Comments
The Fed engages in FX trading? What?
Zowzooma, the Angry Deity asked:
My book says this: “Had foreigners not wanted to use their dollars to buy investments in the United States, our government would have been forced to draw down its official reserves and use its holdings of foreign currencies to trade for al the dollars that foreigners held.”
I’m not doubting this is true, but there are two things I don’t understand:
1. Why does the Fed do this? Why doesn’t the Fed, when a foreigner comes to it with U.S. dollars, say, “Get lost! If you wanna get rid of them, you have to spend them on U.S. goods somehow!”?
2. Also, where did the Fed acquire foreign currency to begin with?
Filed Under Economics | Leave a Comment
Will the trade deficit bankrupt America?
…. . .-.. .-.. — asked:
The US continues to lose ground in the global market. US products now account for only 17% of the goods traded internationally. The European Union now accounts for 24% of the global trade.
This has created greater demand for the Euro in the currency market and a lesser demand for the dollar. Trade for the Euro has surpassed the Dollar, and the dollar is losing value across the globe.
This creates a problem for the people who control the more than $27 trillion in US currency tucked away in foreign reserves. If this currency is not needed for trade, what will be done with it?
Yesterday, it was announced that a Russian company may purchase one of America’s largest companies, Alcoa.
As the trade deficit continues to expand and the dollar loses hegemony in the international currency market, will we see more of our giant US companies bought up by foreign investors?
Michael E
Believing a weak dollar is good for trade is old school economics. That applies only when the dollar has hegemony. The dollar no longer has hegemony in the currency market. It’s has been overtaken by the Euro.
In year 2000, a Euro was worth only 80 cents US. Today, only 6 years later, a Euro is worth $1.30 US. In six years, the dollar has lost 60% of its value in the global market.
Filed Under Politics | 7 Comments
Would you trade circulated coins from your country with me?
Greywolf asked:
I’m not interested in exchange rates or protected coins just regular (nice quality) coins from any country.
My son loves to learn about countries from their currency.
I’d want at least one of each denomination and would be willing to pay via paypal if you’re interested. This is what I’m doing for my son for Christmas this year.
I’m in the U.S.
Filed Under Other - Destinations | 1 Comment
What’s a good place to invest in Currency exchange ?
Whitman Lam asked:
I’ve noticed the Japanese Yen has gained a lot of value recently. So I thought it would be a good investment. I wanted to trade in some US Dollars for Yen at the bank, but the banks charge huge exchange fees.
What is a better way to invest in foreign currency ?
Filed Under Investing | 6 Comments
Best tax software for investors?
Yardbird asked:
I traded options, currency, and foreign stocks last year for the first time. Used TaxCut in the past with success. Can I import data automatically from Scottrade and Interactive Broker?
Filed Under Investing | 1 Comment
suggest the site were i can get free currency trading signals,i have found many site but they r charging fees
chinky asked:
i am trading in foreign currency market, therefor i want currency trading signals which are absolutly free of charge,so please suggest me any site where i can receive foreign currencytrading signals
Filed Under Investing | 1 Comment
keep looking »