Archive for November 2010

Adventures of a Trader in the Forex Land (7) – EUR USD

eurusd-image-doitinvestcom-currency-trading-adventuresAt the beginning of the month we were talking a bit about the EURUSD currency pair and its evolution. We have anticipated a bit then by saying that the most traded currency pair in the world, as known as the cable, might not grow further, despite the boiling in the market.
By now, any decent currency trader has found out that the cable pair went down from the resistance level at 1.42 to 1.3, with a good chance to break the latter too. Well, yes, some traders might say that noone could anticipate the Ireland problems and its $85 billion bailout, huge by any means. Especially when you compare the amount with the Ireland GDP, this is one of the largest bailouts ever in the financial history of the world. Read more

Book review – “Coffee: Growing, Processing, Sustainable Production: A Guidebook for Growers, Processors, Traders, and Researchers” – Editor Jean Nicolas Wintgens

Since quite a while I was looking more and more to something different outside the traditional investments. I played with derivatives based on shares, forex, indices. Yet, recently another area attracted my attention.

Yes, the periodically forgotten and rediscovered treasures of the commodities. They tend to be in fashion and then exit, then enter again into people’s favours. I decided that persistence is the key to success, therefore I started to look more into commodities.

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My Investing Wish List – 2010

Lately I have been craving to read more and more investment books, as a bookworm that I am. Yes, I wear glasses and yes, I am a finance guy. So no wonder that in the last year I have been pilling up tons of investment and finance books – most of them also reviewed here, on

My favourite publishing house (and this is NOT an advertorial, believe me, the published did not pay a dime for this!) is Wiley – they have nice finance and investing books which seem to cover professionally some of my favourite topics. Wiley has also books which offer you some extra knowledge needed to cope well under the practical conditions of the market, so I think my desire became at a moment self explanatory.

So here’s my favorite finance and investing books wish list – maybe by Christmas somebody from the Wiley Publishing House will pile those up and send them to me in a big postal package! Then I am guaranteed not to leave my house for the whole winter and just to keep on reading!! Read more

Book Review – “Trade the Trader” by Quint Tatro

Trade the trader book review by www.doitinvest.comOne more book about trading various financial assets… Shouldn’t the world be tired about these?

I guess not. Trading is a financial knowledge field which advances at a blistering pace, not only technologically, but also behaviorally. Take for example the way the introduction of the Ipad has changed the trading behavior of the masses – now you can research, plan and place your orders online, straight from your morning coffee table. Isn’t this brave new world wonderful?

Yes it is my friends. But it is also dramatically different from one year ago. Think about it a little – how many traders are now online compared with 5 years ago? (this means increased competition, right?) How many tools are you using today compared with one year previously? How did the playing field changed?

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Quantitative Easing Big Scale – Definitions and US Study Case

photografy possible rising of the us economy

photography possible rising of the us economy

One of the latest causes of the Euro spiking up above 1.42 versus the USD was the quantitative easing policies applied by FED. If you are not familliar with the term, here’s the definition:
Quantitative easing represents the injection of money from a central bank into the economy, via the banking system. It works like this:
1st stage: the Central Bank tries to push the economy by lowering interest rates, which should encourage lending and therefore the consumption. In our case, FED interest rates are already at 0% and publishing negative interest rates would be a bit Japanese, meaning strange (what would it mean to put your monry on the bank and get less at the end of the deposit?!)
2nd stage: Central Bank pushes up the public expenditure, in the hope that money spent like this will push up consumption and persuade firms to invest. In US this is impossible too – because the public debt is huge. Read more

Adventures of a Trader in the Forex Land (6)

It has been quite a while since I have not written any longer about my forex adventures. This does not mean that I did not followed up on how the currency pairs moved, just that I was a bit absorbed with other blogs…

lately I abandoned a bit my trading with the GBP/JPY pair and focused rather on the EUR/USD currency wildhorse. And it has been quite a ride Read more

2010 Nobel Prize in Economics vs Ig-Nobel Prize…On Economics Too, of Course

Everybody’s obsessed with finance and the flow of money these days. No wonder that we at go for the same theme and now wonder that the Nobel committees are looking at the same stuff.
This year the Nobel prize for economics was shared by three gentlemen. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2010 was awarded jointly to Peter A. Diamond, Dale T. Mortensen and Christopher A. Pissarides “for their analysis of markets with search frictions”. The guys looked actually at the imperfections of the markets – why are they not frictionless but full of hidden costs? Read more