Is it time to buy silver or gold?



Anders Jacobsson/Trader

 When investing in metal like gold you have to know that it is dependent on how the global finances are in our world.


Gold has always been a good investment in decades and normally with profit - you should

though, remember, it is not a short term investment but absolutely better than stocks.



If the companies around the world are making money and economy is good. Investment-

companies normally invest in stocks because the profits are better. But in "bad" times

they tend to invest in Metal and firstly then gold and silver4 then copper.

Source(s):

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http://www.forextrading-prosystem.com/

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As We Commemorate The 10th Anniversary of 9/11/2001, Are We Witnessing The Collapse of the First Currency Tower (The Euro)?

I will not use this blog to commemorate the horrible things that happened 10 years ago tomorrow (9/11/2001), but I would like to you read these two articles located here (the one written by my friend Joe Donohue, Upsidetrader), and this one from the New York Times (make sure to watch the video). Remember never to take a single moment of your life for granted. Thank God that you live in the United States of America (assuming you are a citizen reading this blog post). If you see a U.S. military veteran or active duty soldier, that that person for their service. If you see a first responder, do exactly the same thing. Lets not forget.

It has been awhile since I wrote anything substantial about the foreign exchange market, so I thought it might be appropriate at this moment to discuss the Euro and the current crisis that seems to be facing the European Central Bank (ECB) and the Eurozone in general with regard to the potential ultimate default of Greece on its sovereign debt. I will approach this for now from the monthly chart perspective (where one can see the clear areas of support and resistance).

The last time I wrote about the Euro, this same crisis was going on in Greece, and there were grave concerns about the ability of the European Union to restructure Greek debt. Despite assurances from the Greek Prime Minister, there is growing fear that Greece will eventually not fully restructure and be forced to leave the European Union. As one can see from Axel Merk, currency fund managers are also deciding to sell the Euro and buy yen and invest in Australia. The fact of the matter is, most traders are now selling Euros until they can sense the full extent of how the ECB will cut interest rates and how individual countries will restructure their debt.

Does this mean that the Euro is in imminent risk of a near-term collapse? At present, no, but what it could mean is extreme pressure and volatility in the EURUSD (the Euro/U.S. Dollar forex pair). Today, instead of getting wrapped around the axle with a bunch of pattern analysis (and it could get a bit gruesome, for those of you still awake after reading it). I am going to talk in terms of general areas of confluence (where Fibonacci levels measured from different highs and lows tend to converge). Sadly, since Ensign software has changed to an enhanced version of its analytical software, the folks there have temporarily suspended my password during the conversion period (which stinks), so I cannot show you the multiple levels of convergence. I can demonstrate how that works though, and I will do so in the following chart.

What is important is to measure the extension of the line A1 to A2 (low of October 2005 to high of July 2008), Line B1 to B2 ( high of July 2008 to November 2010) and C1 to C2 (high of December 2009 to low of June 2010). The 1.618 extensions (which are 161.8 % as long as each of those lines) can create significant areas of support in the future. One thing I also added was the retracement values of A1 to A2 and C1 and C2 to show where confluence areas exist in any price movement that could occur between those lines. Those too could be areas of support or resistance during future price action. When one does that, one notices on a monthly chart that the key areas of confluence that could become support are at the 1.3475 to 1.3130 area, the 1.188 to 1.163 area, and the 1.004 to 0.9870 area ( an area very near currency parity).

Why do these areas matter? Anyone familiar with Fibonacci pattern theory or with Elliott Wave Theory knows that in fast markets (markets in which price ranges change quickly), these confluence areas can be VERY strong in both directions, short (down) or long (up). As policy makers flap their jaws, traders will continue to influence direction ( for now, bearish direction) until some real policy decisions are made to eliminate the weaker partners in the European Union. It is this kind of uncertainty that forces currency, hedge fund, and investment fund traders to make decisions like favoring Japanese Yen over Euros or to look at foreign debt over U.S. Treasury debt in order to protect the value of their investments.

Monthly 7 period (month) average true range values have gone from as little as 300 pips a month in 2002 to nearly 716 pips per month now. They have peaked in 2009 and 2010 at over 1000 pips, and could do so again. Is that volatile? You bet it is. This kind of thing, particularly given sensitivity to the dynamics of the U.S. and European bond market interest rates, can continue to be crazy.

Can those levels be hit if things become even more negative for the Euro? Indeed, I think they can be hit.

What about in the near term? I think, as I have for many months now, that the 1.3475 to 1.3137 areas will be tested within the next few months (perhaps by year end, if not sooner).

Could we rally next week despite all the negative news? It is possible. Notice how we bounced off the 0.618 retracement at the close on Friday, September 9, 2011. Though daily momentum is negative AND below zero, it is still possible that we could have more to go, but we will have to keep our eyes open early next week.

What about those lower support areas? Are we going to break through them as well? A lot depends on policy makers. One thing I think Mr. Merk had right. The bond markets are firmly in control of currency movements. One thing traders must understand is that governmental intervention to buy or sell currencies, either unilateral or coordinated (countries complying with one another) seldom if ever WORK. It is better to read the charts than to listen to brain farts (particularly from politicians). Parity of value will be settled in free international markets.

How am I trading these markets? As many of you know, I began trading forex in late spring and was at the beginning trading on hourly charts so that I could give the trades room to breathe. For now, I have shifted to trading on an intra-day basis (10 minute charts) during the early session hours in Europe and up until about 11 AM EDT. I do this so that I can manage risk during these more volatile times that are filled with crazy and often conflicting news flow. I monitor average true range volatility on all the pairs and use a smoothed momentum trading model to trade currency pairs (no neural nets as yet, though some may be coming soon). As this volatility settles, I will shift back to hourly charts again and leave overnight positions on like I used to do. For now, I am essentially scalping to capture the meat of the intra-day swings during high volume trading hours.

As we get to the inflection points, I will post what I think will happen in more detail . I am excited about it because volatility can add to profitability as long as one identifies the swing and manages position size, stops, and targets.

Thanks again for supporting this blog. Let me know what other things you want to see. Leave a comment or send an e-mail to buffalotrader100@gmail.com

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Why Play the Stock Market?

Why Play the Stock Market?

What is the point of investing in company stock? The question of the century for many would be businessmen and women may be why on earth would anyone buy stocks? Quite frankly the question should be why on earth wouldn’t they? Owning stock in a company means that you have stock in that company. You have an investment, however meager, in the success and failure of that company and for this reason you have a little bit of ownership in the company as well.

Many people purchase stocks for many different reasons. There are about as many reasons for the purchases as there are people. Some people hope to accumulate a large amount of stock within a company so that they may wield some level of power within that company. This is not always the case though in most companies those that own large quantities of stock do have a bit of a voice when it comes to the decisions being made concerning the future of the company (companies are responsible to those that hold shares of stock after all).

Others want to own a little piece of a company that produces a product they believe in. I love chocolate. For me, it makes perfect sense to invest money in Hershey stocks. It’s a product that I believe has a solid future (I also happen to know a lot of other chocolate lovers), an excellent product, and real potential for new products, and an eye on emerging markets. These are things that those purchase stocks should look at before buying stock. At the same time, I realize that Hershey stocks are very established and any earnings on my few stocks are going to be minimal. At the same time, this is a very stable stock that is likely to bring in some money year after year. Not a sprint stock to be sure but an endurance stock that I get a kick out of including in my portfolio. In other words, some people buy stock simply because they like the product.

Day traders buy and sell stocks like some of breathe in anticipation of making money and nothing more (well for the most part, some do it for the rush and the thrill of the hunt for those elusive stock market moments of triumph). Of course most people buy stocks in hopes of ample returns on their investments, some just expect more immediate returns than others. Day trading is a drive through type of investing compared to the long lines that people stand in inside waiting for the long term payoffs that retirements are funded upon.

You will find as many reasons for investing, as you will find reasons to purchase stock. The questions you should be finding out for yourself is why people by certain stocks and that is question that is going to be individual to each person for each stock they purchase. There are no magic formulas for success though there are many things you can do to lessen the risks of failure when investing in stocks in bonds.

If you are interested in investing in stocks your first stop should be the library. There are many books on the history of stocks, financial planning, and that offer excellent advice on building a portfolio. Once you have done your research, visit a stock broker to help you get your stock portfolio started.

Regards
Anders Jacobsson

Why Use a Stock Broker?

While stock brokers can be expensive it is worth thinking about hiring one. However, if you are new to the world of investing and find the terminology, expenses, fees, and process the least bit confusing it is best to utilize the services of a stock broker that is going to work with you every step of the way and explain the way things work at least for the first several trades you make. Stock brokers are paid through commissions that are earned every time you buy or sell a stock. For this reason they are great for advising you on which stocks to buy or sell though their main goal is to keep you buying and selling because they earn money on each transaction so be sure to take their advice, to some degree, with a grain of salt.

That being said a good stock broker can help you learn the ropes about trading stocks when you are just beginning in your investment efforts. Their advice and services can be invaluable and well worth every penny you pay them provided you find a broker that is going to work with you even though you are, presumably, going to be trading on a much smaller scale than some of their high dollar clients. In other words you want someone that is going to work with you even though you aren’t likely to be their biggest client anytime in the near future unless they make some excellent decisions on your behalf.

Stock brokers can also provide excellent insight and invaluable advice on how to diversify your portfolio in order to minimize your risks as far as your investments go while building the foundation for a successful future trading in the market. More importantly a stock broker can help you identify diamonds in the stock business that may be disguised as lumps of coal. They have a great deal of experience in this business, even more education, and often times excellent gut instincts about what is coming next in a given stock.

This by no means indicates that the services or advice of stock brokers is somehow infallible. This isn’t the case at all. Everyone makes mistakes but by following the advice of a stock broker you are much likely to make fewer mistakes than if you were going it alone because you can learn from past mistakes the brokers have made and hopefully avoid future mistakes of your own by taking their advice and guidance to heart.

If the high commissions of brick and mortar brokerages are hard to come by or sacrifice you may want to consider an online stock broker. While they often won’t have the pedigree and credentials of some of the stock broker experts that can be found in many financial institutions on Wall Street they also do not charge commissions that match those pedigrees and can be invaluable in helping you make the most of your stock market investments. Learn when to take the advice that is given for what it is worth and use it to your advantage. Their advice can still help you much more than trying to muddle through the intricacies of investing and online trading on your own.

If you decide not to go with a stock broker you need to understand that you are doing so at your own risk. The roads of the stock market are difficult to navigate even for those that have some degree of experience and there are few roadmaps to help guide you along the way. A qualified and competent stock broker can be the difference between a successful investment future and a loosing your shirt on your first time out of the gate. Take advantage of the benefit that a stock broker can bring to the table until you are confident in your ability to navigate these waters on your own. They can help you grow your financial portfolio to meet your goals.

Regards
Anders Jacobsson

10 Essential Tips for Anyone Who Wants to Become an Independent Trader

Stockmarket Scrutinize and Examine it All and Your Need to be an Independent Trader - 10 tips

Not everyone out there is willing to ask for help when it comes to Become an Independent Trader. However, this particular stock-market options can help you to overcome your fears. As soon as you learn Become an Independent Trader you will develop a new appreciation for it.

Motivations to Become an Independent Trader

The written words of my efforts about Become an Independent Trader should motivate you to take action. stock-market options isn’t going anywhere so why not take advantage of what it offers? Thank you for understanding that these key elements go hand in hand with Become an Independent Trader. Now we can continue to that area and link it all together.

Beginners Guide To Trading Stock Online

I am surprised that I had never heard of A Beginners Guide To Trading Stock Online before with this niche.

Are you aware that this great tip is the next step to follow The American Stock Market?

Number three on the list is lucky as it has to do with Why Are Rich People Rich.

Always remember that this fourth tip Getting Started on the Stock Market As a Small Investor is one you want to pay close attention to.

I for one have come to realize the full potential of this fifth tip Two Little Four Letter Words.

Become an Independent Trader Rapidly

If you are trying very hard to learn Become an Independent Trader rapidly then my sixth tip Day Trading - Will You Succeed? is going to help you achieve it in 1 month.

As we explore the seventh tip on the list Cash And Stock Market it is important to realize the potential it can hold for your future.

A lack of information can make you confused and we don’t want that. Pay attention to tip 8 The Stock Market If You Are a Beginner and you will find it all makes perfect sense for you.

I think many of my tips are going to be new information for you to explore. That is the general consensus when I introduce #9 Why Do Share Prices Go Up and Down?.

Trade With Confidence

Finishing up the top 10 tips Investing In The Stockmarket is the one that will really motivate you to Become an Independent Trader is - Trade With Confidence.


Armed with 10 tips:

Now that you are armed with 10 tips, you are ready to continue working towards Become an Independent Trader.

Introducing "THE...e-Course and THE...Video-Course"

Now that you know the facts, you are likely more motivated than ever to Become an Independent Trader. I would like to introduce you to "THE...e-Course and THE...Video-Course" which can make it easier for you to accomplish.

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It can take some time to fully appreciate all of these tips. I am confident though that as you pursue various aspects of Become an Independent Trader you will find them to be invaluable.





by Anders Jacobsson

To learn more about Anders Jacobsson, please go to:
http://www.toptrading-the-stockmarket.com/

About the Author: BUSINESS MANAGER. Anders has more than 30 years experience in system development, project management, teaching and maintenance of IT systems. Anders experiences has manage more than 230 corporations most of them in Scandinavia. To summarize: Anders is a Business Manager and teaching on the subject of Self Improvement.

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Get Ready For a Whole New Way Of Looking At Your Investments. Stop Worrying, this "Underground" Trader Is About To Tell You How...!


Regards
Anders Jacobsson

http://www.anders-video-review.com/thethousandclub.html