Forex markets are unlike stock markets. Currency markets are open 24/5 except on the weekends. Continuous price action takes place all day in the currency markets. Do you know this that more than 90% of people trading forex are speculators?

Forex markets have the tendency to react violently to the release of economic and socio political news. You cant predict when important sociopolitical event will be breaking news.

Fundamental economic news like NFP figures, the housing sales number, FOMC meeting etc all are released at a known time. Google Fundamental News and you will see lots of sites that provide this information.

These sites will give you the day and time when a major economic announcement is going to be made. Non Form Payroll (NFP) figures have recently become very important for USD pairs especially after the start of the recession.

NFP figures are released at 8:30 AM EST on the first Friday of each month. Currency pairs like EUR/USD become very violent just after the release of these figures. EUR/USD can shoot up sometime by 50-100 pips in 5-10 minutes.

Markets mostly stabilize within a few hours after the release of these figures unless these figures are of such a fundamental nature to form a new trend in the market.

News release trading is ideal for those traders who like a lot of action within few minutes. Here is one strategy described below that you can use.

Suppose you want to trade EUR/USD. Enter both buy and sell orders at 10 pips above and below the price of EUR/USD just a few minutes before the announcement of NFP figures.

Place stop loss of 10 pips for both the orders. Place take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will either shoot up or down.

Suppose EUR/USD goes up by 10 pips, buy order will be triggered. Suppose it jumps by 60 pips. Your position will be closed at 50 pips when you have taken profit of 40 pips. Isnt it cool you made 40 pips in just a few minutes?

If EUR/USD goes down by 10 pips, the sell order will be triggered and you will still make 40 pips. However, sometimes the markets have a tendency to whipsaw. Practice this on your demo account first and make ten successful trades before going live.

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When you trade in the forex exchange, you’re engaged with international stocks, currency and the products of these countries. One nation’s money is considered against the money of a different country to determine value. The value of that foreign currency is considered in FX deals.

The final monetary value of that currency is taken into consideration when trading stocks on the forex markets. Many outside markets will be in control over the altered value their country brings when it comes to their pecuniary exchange. Those investing in the market exchange for forex concerns banks, businesses governments and other finance houses.

What are the things that make the forex exchange so different from the US stock market? A trade on the forex market is one that involves at least two countries, and it can take place worldwide. The two countries are 1, the country of the investor of the funds and 2, the country where the finances are being given. The greater amount of transactions that occur on the forex stock exchange will likely take place through a broker, such as a bank.

What is involved in the forex markets? The foreign exchange market is combined from various types of transactions and countries. Those involved in the forex market are trading in large volumes with vast amounts of currency. Those who are involved in the forex market are likely to have companies who are cash businesses or are in the market of buying and selling liquid assets.

The market is large, very large and it would not be wrong to think of the forex exchange as a giant in comparison than an individual market exchange in any one country. Those involved in the forex market are trading daily twenty-four hours a day and sometimes trading and most of the time on week-ends.

You might be surprised at the massive amounts of folks who issue trades on the forex exchange. In the year 2004, as much as two trillion dollars was the average daily trading volume. This is a huge number for the number of daily dealings at a time. You can imagine how much one trillion dollars might be and then times that by two, and this is the average that is traded on any given day on the forex exchange!

The forex market is not something new, as it has been used for over thirty years but with the introduction of computers, and the global web, the forex exchange is growing exponentially as growing numbers of investors become aware of the availability of this trading market. Forex only accounts for about ten percent of the total trades between countries but as the popularity in this market continues to grow so could that number.

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As any other type of public service there are abundant providers. Keep in mind what you are insuring and how much funds will be available for reimbursement. Do not sign a contract until you are sure you are getting what you are paying for.

Keep documentation of what possessions are listed and the replacement costs of them. Present a copy of the documents to your insurance company and make sure these are covered within your policy selection.

You can discharge a company, during the selection process, that has a high volume of negative feedback from prior customers. Consumer reports are an excellent resource to gaining knowledge about a company’s customer habits.

Similar to other insurance types, you will need to get quotes. Compare these quotes and make sure your search is worth while. Most quotes should be fairly close, but you will probably come across a few companies that are bogus.

A good rule of thumb used when finding a legitimate home contents insurance, is to evaluate what will need replaced and which items not a priority. For instance, when you purchase most electronic devises you are offered an insurance for an extra couple of bucks. If you purchased insurance already, you will not need to include this product, unless you want paid twice if the item is stolen. You will get paid twice also, but ask yourself if it is feasible to pay the premium with all the other contents listed.

When you finally decide on a company. It is of utmost importance that you follow all necessary guidelines described in the policy. Look out for exceptions, amendments, and all other keywords, that will give the insurance company the ammunition to not provide the coverage assumed.

Simply stated, you want your personal belongings insured in case of theft. By doing your homework correctly during the selection process, you should settle with a reasonable offer that covers your needs, inexpensively.

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Market Opinions

I’m convinced that the worst in the housing market is not behind us so mid term, the market is in for a harsh reality.  I’m not sure exactly when this reality will hit though.  All I know is that foreclosures are going to be much worst than everyone expects and news will start to surface in the coming months because no one is really accounting for the fact that even the higher end California market (which hasn’t really been affected yet) will start to show cracks as everyone who thought their house was an ATM machine starts to default.

I’m not saying that the Dow can’t go up to 9,000 or more before then but when everyone realizes how bad things are, the market will tank unless the government comes up with some articificial way to stop foreclosures.

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Related Articles at Investing School:

• Weekend Investment Reading – Happy Holidays Edition
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• Weekend Investing Reading (WIR)
• Weekend Investment Reading – Ignoring the Volatility
• Weekend Investment Reading – Going, Going, Gone.

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Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

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