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Gold Is The Most Reliable Money In The Economy

February 13, 2011 — 3:30 am

One of the most important ways to save people in extreme situations is a stable economy, which helps to eliminate hunger, protect people and survive with disasters. But money is not very resistant to all kinds of changes. It is related to the market system that lets it to drop or increase in price.

Sometimes we notice that prices for different things rise from time to time. The reason is not because they become more expensive, it is because the money itself worth less. A country where money supply is not secured by gold, has inflation. If the currency of the country is tired to the gold stocks so the crisis is virtually invisible and the national currency is stable to fluctuations.

Watching the prices on gold during the last years you can notice that they are vary all the time. Though it is not the price of gold that is changing, it is the price of money against gold moves up and down. Virtually the gold price remains steady for many centuries though the quantity of money you need to buy gold changes from time to time.

You may have a question why there are so many cases of countries’ bankruptcy, inflation if the quantity of existing money is equal to the gold. The reason is that the world economists desire to raise the value of the money and the methods they used to do so cause all kinds of economical disasters where common people suffer. Instead of curing the economic situation of the country by rising the gold stocks, economists choose the path of inflation releasing more money. As a result all becomes expensive and people don’t have enough funds to buy things. Money depreciates more and more and all this leads to poverty and chaos.

Today there is so much money in the world, that it is impossible to associate it to the rate of gold, because it would rase the price of gold in a million times. For that reason such methods as inflation is necessary to do in order to keep the stability of the world economy.

The appearance of electronic money changed the situation. Banks have a lot of virtual money that are not tired by any gold supply. So we can say that the present price of gold has being deliberately significantly decreased.

Gold is one of the most traded commodities in Singapre Forex market. Silver and Oil are popular too but their volumes are much lower. There are also many other commodities like Platinum, Rice, etc available for trading by many Singapore Forex brokers. Trading commodities is much different than currencies. Commodities market is more volatile and usually has bigger spreads that requires any Singapore trader be more careful in building his trading strategy.

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Commodities
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Hassam
 

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How To Forsee The Dirrection Of The Forex Market

November 23, 2010 — 1:46 am

It is evident that every country has its own local currency. And all imported products are paid in the local currency. For example if the USA company brings supplies to Singapore, so the payment will be done in SGD. Only in two cases being paid with SGD is good for the US company. First, if SGD easily can be exchanged to USD. As the company is located in USA, it will have to pay US dollars for production of supplies. Secondly, the exchange of SGD to USD should provide the company income in USD, not SGD. Hence it is clear that the exchange of national currencies is not a technical problem but a necessary feature of international trade.

For a long time, currency exchange was done by fixed exchange rates, when the ratio of national currencies was established by the government of the countries. Now in the most countries, the exchange of national currencies is on floating exchange prices, where the price is spontaneous and is composed under the influence of supply and demand of the foreign exchange markets. That led to the growth of Forex trading in Singapore as well as in other countries. The price of the local currency depends on the currencies’ balance in foreign exchange. If during a trading day one million US dollars stand against a hundred million SGD, so one USD will cost 100 SGD and vise versa. Thus the bigger the demand for a national currency, the higher is the exchange rate.

Let’s discuss what determines a particular ratio of the national currencies. There are a lot of aspects of course, including political ones, but the main thing is that the demand for the currency of the country reflects foreign demand for goods of this country. If foreign buyers are not interested in the goods of a specific country, it weakens the national currency as there is less interest in it. Thus industry is one of the most important aspects that influence the national currency.

A drop of the exchange rate of national currency is called devaluation and increase is called revaluation. Since the ratio of currency quotes not only reflects but also affects the export-import operations of the country, the devaluation and revaluation of the national currency have different consequences. When the national currency price devaluates, it leads to the growth of export. When the national currency rate increases, it makes a good opportunity for import. Both import and export are very important for any country. Thus adjusting the exchange price of national currency, the government can directly affect the volume of export and import.

The factors mentioned above have a great influence on Forex market and provide a lot of good opportunities for any Singapore trader to make profits. To begin, you can register a trading account with any Singapore Forex broker and start trading Forex online.

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Forex
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Hassam

How To Find The Best Trading Signals Provider

October 21, 2010 — 1:16 pm

There are many trading portals about trading in Singapore that offer to subscribe to Forex trading signals. What are these signals and what benefits they give to a trader? Can the usage of these signals be effective and what is the difference between using the trading signals service and the money managed accounts? In this article we will discuss these points and give you all needed information about online trading signals.

First of all you need to find out about the currency pairs that you get signals for. Most of the trading signals are published for the major currency pairs such as EUR/USD, JPY/USD, GBP/USD. If you are looking for the trading signals for cross currency pairs, you will need to spend more time looking for them online. The signal you receive shows you point of opening a trading position for a certain currency pair and its closing with a profit (take profit) and loss (stop loss). Usually, the providers of trading signals advise to use the trailing stop-loss, which changes automatically accordingly to the trend in order to fix the maximum profit. In this case the level of stop loss is moving as long as the price moves your way. Being in the profit area, it guarantees the closing of your trading positing as soon as the market will go against you and reach the stop loss level.

Usually Forex trading signals are sent in a certain time. The most popular trading signals are provided for the daily trading. They can be sent with an interval of several hours. Signals, which are focused on long-term trends in the Forex market may be received few times a week. When buying the online trading signals, you have to be sure that you know whether these signals for short, medium or long term trading.

Before you pay money for the subscription to the currency trading signals, we offer you to contact the signal provider via email or telephone. Make sure that you are dealing with a professional Singapore trader and ask him as many questions as possible. If after you paid for the subscription to the trading signals, you don’t get the support from the service, then you should search for other currency trading signals.

In the conclusion to this post we would like to offer to newbie online traders to thoroughly check the Forex market and its basic principals of trading before you purchase the subscription to the Forex trading signals. Each of you has a great potential to become a professional Singapore Forex trader. But if you don’t learn to make decisions in Forex market you will never develop this potential in yourself. More than that it is much better if you close the trading positions with a profit making your own independent decision according to your own trading strategy.

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Forex Strategies
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Hassam

The Best Online Trading Method.

August 6, 2010 — 8:48 pm

There are plenty of many Forex books online that teach newbies how to trade using the levels of Fibonacci, Elliot Wave, etc. Of course these ebooks are very good for any new Singapore trader, but the problem is that the writers of these books give 100% guarantee that if you do as they say, you will make profit.

Unfortunately the reality is not so easy and to justify himself in the loss, a trader begins recklessly recall all his steps in order to make sure there is a reason of his mistake and loss. Someone may has forgotten to take into account a very important indicator while opening a trading positions, another one has miscalculated the Fibonacci levels – and now such traders are making a sad conclusion: “No, the financial trading is not for me…” And of course everyone who thinks this way is wrong, as Forex in Singapore has many systems and some of them are very easy like trading with reverse orders that can give you more than 500 pips monthly.

The advantage of trading with a reverse orders method is that you have a good chance to catch the market disregarding of its direction. I suggest many of you have faced a problem when you predict the direction of the market and open a trading position. But the market heads against you and your position is closed by stop loss order with a loss. And after that the market changes and goes your direction. How angry we are when it happens.

In order to diminish the chances of losses in such situation a strategy of reverse orders was invented. It is a very simple trading strategy and every newbie trader may apply it. What you need to do is when you open a position on Buy instead of stop-loss level after 25 points you place a position for Sell. The same you do for a position for Sell, you protect it with a position for Buy. The fact is that you don’t use a stop loss and if the trend goes against you, you will still stay in the market.

By using this strategy you have a opportunity to correct your trading position any time despite of the market’s direction. The correction works the following way. If one of the orders got a profit of 10 points you should open another order in this direction. This method will let you to minimize the losses. When you have three positions (two sell and one buy) where in overall you are in profit you can start closing the profitable positions if you see that the market turns and takes another direction. Trading this way allows you place many positions and you can also use high leverage for it. This trading method may be uses on any platform and with all Singapore brokers.

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Forex Strategies
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Hassam

Advantages Of Mini Online Trading Accounts

July 5, 2010 — 4:39 am

Today online trading became so popular among traders from Singapore and all the countries, so trading brokers do the most to adjust the currency trading features to different needs of every trader. It makes the traders to adjust the serious financial trading with their own investment and trading ability. Singapore brokers give their traders not only a great variety of trading tools, but also traders can open different types of the trading accounts that let them to trade with different trading volumes.

The standard Forex trading account is known as an account type where one trading lot is 100 000 units. So if you open a trading position with a leverage of 1:100, you will need about $1000 of your own investment in order to open a position for 1 standard lot. So if you trade in the standard account you need to deposit tens thousands of dollars in order to have safe and systematic trading.

As many traders are not ready to make big investments into Forex market, today beside standard account, many brokers offer also a mini Forex and even Mirco Forex accounts. The sufficient difference between these types of the accounts is that they involve less trading volumes and at the same time require less money. For example mini trading account has a minimum of 10 000 units and requires $100 investment for one trading position. At the same time micro trading account has 1000 1 lot units and it is enough to have only $10 in your trading account in order to start the real currency trading.

The development of mini and micro trading accounts is a great help for those people who are new to Forex trading and are not interested to risk huge investments. Though almost every broker provides the customers with a free practice trading account, you cannot compare the demo trading with trading in a real account where your own money are involved. Many people who succeed making profit in demo, fail trading the real money. The thing is that when trading with the real money, the traders become more sensitive and usually make mistakes on their trading decisions. In this case mini and micro Forex accounts are very helpful as they let the traders to enter the complicated Forex world with small amounts of real money in order to feel the real trading and practice to manage with their emotions and don’t let them influence on their trading activity. Trading with small money, traders can practice the real trading as much as they need without a risk to lose a lot of money of their own.

Today each Singapore trader as well as a trader from any other country can start his real trading from as little deposit as he can afford. We will do our best to share more information about trading in Singapore and other countries in the future.

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Forex
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Hassam
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