Currency and Commodity Trading Strategies, Commodity Traders Tips for Gold and Crude Oil Currency Pairs

By William Davies

When we consider currency and commodity trading it relates to the currencies of countries where a proportion of their output and exports are commodities, such as raw materials like copper, oil and precious metals and agricultural products like wheat, soybean or timber.

Clearly the currencies of a number of countries around the world could be called commodity currencies on this very broad definition. For the purposes of currency and commodity trading, the term relates to three major country currencies where a significant contribution to exports comes from commodities.

The Australian dollar, the New Zealand dollar and Canadian dollar are all affected by movements in the price of global commodities, with gold price movements strongly reflected in changes in the Australian dollar, while the Canadian dollar has a strong relationship with the price of crude oil. Meanwhile the New Zealand dollar (or Kiwi), while not linked to a particular commodity like the other two currencies, displays a general correlation with movements in the Commodity Research Bureau (CRB) Index.

So what happens when the gold price strengthens? We will see a similar rise in the Australian dollar in the AUD/USD pair (the Aussie), as all currencies trade in pairs. This means the Australian dollar is rising against the dollar, conversely the US dollar is weakening in that pair. When investors see economic uncertainties such as rising inflation or a recession, they may move into gold for its perceived safe haven status. Currency and commodity traders also look to the yellow metals link to the Aussie, possibly trading this pair as a proxy for gold.

Commodities contribute a significant proportion of Australias GDP and over 50% of its exports, with gold and other precious metals making a significant contribution. Trading charts show the very positive correlation of gold with the Aussie, which means a trader can either go for trading gold in the futures market or as an ETF, or follow the AUD/USD pair in the spot forex market.

Observers of the dynamics in currency and commodity trading will be aware of the major role played by Canada as a global commodities producer, particularly in its role as a key producer of crude oil. As such you will see a strong inverse link between crude oil price changes and the movement of the USD/CAD (the Loonie) pair.

The USA is the worlds largest consumer of oil and its biggest supplier is its next door neighbour Canada. While a high crude oil price is good for the Canadian dollar it is negative for both the US economy and US dollar. If a trader is bullish about crude oil prices they could go long on the Canadian dollar in the forex market, instead of buying oil ETF's or Nymex crude futures.

Looking at all three of these currency pairs gives currency and commodity trading followers a real opportunity to choose spot forex trading as a way of capturing the movements in the commodity markets, either for gold, crude oil or across the whole spectrum of commodities. There is always a bull market in currency trading, it just depends which currency in the pair you are long or short. - 23204

About the Author:

The author, William Davies, studies commodities closely and writes for an informational Commodity trading website. Discover more about how to profit from currency and commodity trading in the global markets.

Looking For A Good Quality Forex Blog

By Bart Icles

Engaging in currency trading will require you to invest on your forex education and training. Indeed, learning about forex basics, principles, and trading techniques can prove to be valuable if you want to achieve success in this unpredictable type of market. There are many ways for you to learn more about forex trading. You can sign up for online classrooms and forex tutorials. You can read books, newsletters, and articles on forex trading. Another option is to tune in to newscasts that cover currency exchange. You also have the option to lookup a forex blog in the internet to supplement your learning.

Forex blogs can be helpful in broadening your knowledge of the foreign exchange world. A forex blog can contain various kinds of information about the foreign exchange market, including news updates, market trends, market analyses, currency trading articles, forex trading forums, and a lot more.

There are many different kinds of forex blogs on the worldwide web. Many of these currency trading blogs give really good advice. However, there are also those that are nothing more but a collection of affiliate links. This kind of forex blog is something that would not really be of help to you. It can even easily confuse you with all the links available for you to click.

If you are looking to broaden your knowledge on the currency trading market other than the kind of education you receive from your forex trading course and forex tutorial, then you might want to consider looking up a good blog on forex trading. There is a way to tell if a currency trading blog can be of help to you. You know that you have come across a good quality foreign exchange trading blog if it helps you learn the ropes of the market. More often than not, good blogs are maintained by actual traders who understand how the forex market works.

There are certain things you need to take note of when searching for a good quality foreign exchange blog. Apart from following a blog that is maintained by an actual forex trader, you should also look for one that offers actual and useful information about the currency market. More than just giving step by step guides on how to use forex trading systems from different persons, a good quality blog typically offers trading information and advice that helps you learn a little bit more each day. - 23204

About the Author:

The best forex training starts with a desire to learn and a drive to become a great trader. Using forex training takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Easy Reminders To Get The Best Penny Stock Deal

By Malcolm Torren

The penny stock market is a roller coaster. One moment your up and the next thing you're down. And the best part is that the excitement doesn't stop. That is if that's how you prefer to see it. Despite the risks being warned by many, you can still end the day with the best penny stock deal in the market. Because the best deal require knowing the best options. There will always be a way around it.

Before you jump into the penny stock bandwagon, it is important to prepare yourself. This is an investment you are dealing with. There will always be risks and loopholes. Mistakes will be made. The price to get the best penny stock deal may not come easy. But there are easy reminders to keep you on track. Here goes.

- Be positive about your outlook. You bring your money into the challenge and this can be disturbing. Especially when you sense that your stocks are falling. Stay light with your views and stay alert. Your positive attitude can always help you make better decisions for your penny shares in the end.

- Learn the loops of the trade. This is very basic and elementary. There are secrets in stock buying. But opening your mind to learning can be one of your best weapons. A best penny stock deal doesn't come in a silver platter. You have to work for it. Understand the trends and the companies. Keep track of those who are consistent in the list. Most of all, learn the pricing changes.

- Consult the experts. There are many avenues to do this. In the internet alone, there are penny stock forums, message boards, and blogs that you can get insights from. If you can afford to subscribe to small caps newsletters, then do it. The best penny stock tomorrow may just be in the list. These are paid subscriptions so it safe to assume that it could be worth your money.

- Know and prepare yourself for what you're getting yourself into. Another way of saying it is to calculate your risks. Don't invest too much of what you have. A sound advice would be to keep it to a maximum of ten percent of your basic funds. If you have extra, the better. Just don't over invest. You may lose all of them.

- Know the role players and the terminologies. Aside from the basic buy-and-sell stock exchange concept, there are other stuffs to know. The role players are the stock broker, day traders, SEC, NYSE, NASDAQ, and more. Then there are some terms. There's the bull and the bear. There's the pump-and-dump. Learn and understand them.

- Be prepared to discover more with experience. Just like a roller coaster, the first ride is scary. But once you get the hang of it, you'll understand the highs and lows. Later on, you will know how, when, and what to anticipate. The key to winning the best penny stock is to never stop learning. Broaden your knowledge of the business. Keep a wise buy scheme always. The truth is, the penny stock business is not as easy as you think. Just keep your reminders easy to remember. Your last reminder must be to always learn from experience. - 23204

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Know more about penny stock pick. Find information on the best penny stock deals online!

How To Choose The Best Mutual Funds

By Hugo V. Higgins

One of the easiest ways to invest your money today is through the use of mutual funds. Mutual funds are professionally monitored investment options. They collect money from a group of people and they make a common investment. The money is invested in stocks, bonds and other forms of securities that the markets offer. They are very advantageous to those wishing to invest but do not have a large sum of money.

Choosing the best mutual funds to invest in will however need further scrutiny. This is because mutual funds are further subdivided into many types of funds. We shall look at a few of the common types of funds. We will begin with the open ended fund. It is called an open ended fund because once you join you can end the fund any day you wish. It is a good option because it allows for investors to get out when they see that it is not working out for them.

When choosing the best mutual funds the next type of fund is the exchange traded funds. This is basically structured like the open ended fund but returns calculated on its estimated net value. It has its advantage in the fact that they have less expense in their day to day running than the open ended fund.

The next type of mutual fund up for debate is the equity fund. When choosing the best mutual funds this one should not be overlooked depending on what you want. This fund has very high returns as it is played only on the stock exchange. It comes with its strategically placed dealings that are not accorded to the other funds.

There is then a class of mutual funds called the bond funds. Both of the funds in this class present their own advantages when choosing the best mutual funds. The first in this class of mutual funds is the term funds. The term funds need the money to be given a term before the investment matures. This term can be short, medium or long term depending on which the investors agree upon. It is a good option for those who just want to sit back and wait for their return.

Another type of the bond funds is the municipal bond. It can also be a very attractive option when choosing the best mutual fund to suit you. The municipal bond is issued by the local government or by some of their agencies. The upside to the municipal bonds is that they have some tax benefits included for the investor. When the returns come they are not deducted income tax. This is a very big deal to many people.

When choosing the best mutual funds many are advised to first begin with less risky ventures. The least risky venture fund of all the mutual funds is the money market funds. The downside of the money market funds is that they have pretty low return rates. If you are out for less risk but little returns then this is the best mutual fund for you to choose.

When choosing the best mutual fund I would advise you to get learning deeply into all of them. I have only mentioned a few so you may want to get even more in depth than I did before you make your choice. Once you know what each of the different mutual funds has to offer, then you can make your informed choice. - 23204

About the Author:

If you want to become a wiser investor Inside Mutual Funds is your source for more suggestions on finding the best green mutual funds and growth stock mutual funds. For these and more information on mutual fund selection tips and to help improve your portfolio, check us out today.

The Process Of Using Currency Technical Analysis

By Terry Henderson

The time tested and most profitable method to trade currencies are the Currency technical analysis. Let us learn to utilize the Currency trading charts in a correct way for around 30 minutes per day and benefit with a second or a even a life changing income.

Spotting trends and repeated price patterns are the huge benefits in utilizing chart and this is termed as a learned skill. The price change reflected in the chart serves as the cue and the need for following the news is not required.

Just as humans repeat certain patterns, so, too, do currency charts. Understanding that the chart's trends will ebb and flow like ours opens your eyes to recognizing trading opportunities with great potential for high return on your investment. Above all, remember, with the currency charts, as with life, you want to follow an effective but simple plan. The fewer complications the more power and prosperity you'll realize. After all, with fewer pieces, the puzzle is easier to assemble.

What you want your currency charts to do is signal trades for you through basic patterns. All you need to assemble your charts, then, are some indicators, which you select and add. The indicators you use are certainly personal choice, but I can tell you what's worked for me: Bollinger Brands, the stochastic process and the Relative Strength Index (RSI). Bollinger displays the volatility, while the stochastic process and RSI measure the stability of the trend. The good news is that it takes just a day to study, learn, and incorporate these signals. They are the touchstones to your success as a currency trader.

Using these currency charts means you are keeping track of long term trends, not trading the short term using day trading or scalping strategies. These only cause you to perform low odds trades and you lose money. If you instead trade the larger trends the charts will show, you will make bigger profits that last for months instead of days. These factors can mean the difference between making money and losing it.

Never, ever rely on your "intuition" to make a predication of market movement. Looking into that crystal ball is the biggest error a new currency trader can make, and one a lot of the "newbies" fall for, just as the they are feeling more comfortable in the trading environment. You'll almost never be able to buy when the currency is lowest or sell when it's value is the greatest, and believing you can is no more than false hope or playground guesses, and it's a bad way to trade.

Use your currency charts to identify bull trends. These begin with currencies "breaking" to new highs and those highs continue with the growth of the trend. This is sound investment and it's the way traders who've made millions work the market. What more could you ask than an in on the "big trends" and a great risk to reward ratio?

All in all, if you want to make money trading, use long term trends using these breakouts and a simple strategy. This way you learn to trade with discipline instead of impulse and will be on your way to currency trading success. Good luck! - 23204

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