Archive for December 2009

Banks, Financial Crisis and Capitalism

I was reading recently an article regarding the imminent bankrupcy of the emerging markets (especially the ones from Eastern Europe). The author said in his investment blog that banks are now forcing up the interest rates in those countries. The increase in the interest rates would lead to a wave of personal bankrupcies in those markets, allowing the foreign investors to buy the local assets (especially the real estate assets from those emerging markets) very cheap. The scenario would be unfolding as we speak, whilst the peak of the crisis in the Eastewrn Europe should arrive somewhere in the middle of 2010.
The fallacies of this story are many. I will not enter into the details of the cosnpiration theory which seems to hide behind this pessimistic approach to the Eastern Europe economies. I will also not discuss here the fact that it is hard for the big banks to cooperate among them. Or the bank cooperating with the big investment funds, their competitors, would be a highly unlike – ier scenario. I will just mention the recent lessons that Dubai and Greece, two sovereign countries, whose recent developments are linked tot tourism and real estate investmentst, taught us. Read more

A Book Review – “Volatility-Based Technical Analysis” by Kirk Northington

Well, I was looking for a long time after an easier book on technical analysis techniques using a programming language. In other words, I was in for a book where you do not get only the usual lengthy descriptions of various trading techniques and their charts with pointers. After all, it is easy to develop a technique and let it fit with any possible trading – in hindsight.

What I was looking for was a simple way to improve my trading skills and to limit my forex trading risks. If possible, for a book which could be rather practical than conceptual, from which I could learn some code snippets and apply those to trading.

The good news is that there is such a book. “Volatility-Based Technical Analysis: Strategies for Trading the Invisible” by Kirk Northington fills a gap between the individual knowledge of a single trader and the collective wisdom of the large financial institutions. In other words, Northington teaches you how to trade individually using the techniques and the leverages of a large institution. This is a big advantage, especially since the rise of the trading platforms which are so easy to use nowadays online. And where the risk is so high and it is so easy to loose large amounts of money in the blink of an eye 🙂

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The Adventures of a Trader in the Forex Land (2)

currencies-doitinvest.comWelcome back to my forex trading blog. Or, as one famous trader named his investing book, welcome back to my trading room:))
A few words on the yesterday’s forex blog trade placed. I mentioned that I placed a trade on GBP/JPY by purchasing 0.5 lots at 146.56 on the Nov 25th. Since I bought 0.5 lots, I was expecting the currencies cross exchange rate to increase. The take profit order was placed at 147. Unfortunately for me, I did not place any stop loss. Fortunately for me, the trade was placed on a demo account, which made me bear no losses. Read more

The Adventures of a Trader in the Forex Land (1)

Well, yes, I made up my mind. The last few weeks I have been testing a MetaTrader 4 platform with forex trading. My trading activities gave mixed and interesting results. This is why I decided to document this trading journey with this online investing blog. It will be an online diary for me, where I will post my conclusions and my learnings, and in the same time a forum for discussions for you, my readers. Therefore, if you have any comments on my trading methods, style, my tools I used for forex, please land on the comment side and leave me a sign. I am very interested in upgrading our common forex trading knowledge…

How did I start trading? I was flirting with the idea for several months. As you can see here, on doitinvest, I have done lots of reviews lately for forex trading books. These are my lectures. Read more

FED Admits Consumer Confidence Low

A comment today from FED delicately said that the US economy seemed to improve “modestly”. Well folks we all read the famous Alan Greenspan book “The Age of Unreason” and we know what this means in the FED jargon – that the economy is performing below expectations. Read more