2010 Geigercars Chevrolet Corvette Grand Sport

Geigercars.de has already given the Grand Sport of the Chevrolet Corvette an additional performance upgrade. With the LS3 V8 under the bonnet, and the corresponding 430 hp and 575 Nm in torque, the Grand Sport is certainly not short of legs when it leaves the factory. Thanks to the Munich pros, a supercharger with a fat 2.3 litres capacity sits on top of the eight-cylinder engine, which itself exhibits...

2010 Volkswagen Milano Taxi Concept

Volkswagen had announced that it will launch its first production electric vehicles in 2013. Electric cars that are driven emissions-free will revolutionize mobility over the mid-term, especially in urban areas. However, Volkswagen is not just thinking of individual mobility here, but is also considering its possibilities as a vehicle in public transportation. The “Milano Taxi” concept...

2010 Porsche 911 Sport Classic

Stuttgart. Dr. Ing. h.c. F. Porsche AG, Stuttgart, has refined the DNA of the 911 to what must be the most supreme standard of class and style in the 911 Sport Classic available to a strictly limited number of very special 911 enthusiasts. Creating this unique model, Porsche is bringing back the tradition of exclusive small series built in very small numbers. The 911 Sport Classic will be presented at the 2009 Frankfurt Motor Show and is limited in...

2010 TechArt Magnum Porsche Cayenne Turbo

Technology, quality and design form the cornerstones of over 20 years of history for the renowned car enhancement company TECH ART Automobile design from Leon berg-Ho fingen. In 2009, the Magnum proved the outstanding performance by taking first place at the Tuner Grand Prix at the Hock en heimring race track. Equipped with the 550 b hp of the production vehicle, an aero kit and sports air suspension module, TECH ART achieved the winning time of 1:16.939 for...

2011 Volvo S60

The all-new Volvo S60 has its world premiere at the Geneva Motor Show on the 2nd of March. It makes its entry into one of the automotive world’s toughest segments backed by an extrovert attitude never before seen in Volvo showrooms. The all-new S60 has been sculpted to move you – both physically and emotionally. It is also without a doubt the most dynamic car model Volvo has ever presented – and its Pedestrian Detection with full...

2011 BMW M3 Competition Package

The BMW M3 achieves its outstanding performance with impressive efficiency. Its 4.0 liter V8 high-revving engine mobilizes 309 kW/420 b hp, enabling superior acceleration response due to its unique propulsion. In addition to its fascinating performance characteristics, the 8-cylinder engine – developed exclusively for the BMW M3 – is characterized by an unusually high degree of efficiency. Additional efficiency potential is now tapped into...

2011 BMW X5

* With an entirely revised range of engines, concise design modifications and innovate driver assistance systems, the new BMW X5 continues to strengthen its supremacy within the competitive environment. The consistent further development has led to even further improved standards in terms of sporting performance and efficiency, modern aesthetics and exclusivity. With greater supremacy than ever, the new BMW X5 clearly underlines the driving pleasure...

2011 Maserati Quattroporte Sport GTS Awards Edition

Based on the Quattroporte Sport GT S, the “Awards Edition” celebrates the countless awards that the Maserati flagship saloon has received since its debut. The Quattroporte Sport GT S “Awards Edition”, the latest jewel in the Maserati range, will make its official debut at the prestigious Geneva Auto Show next week. The car will be unveiled during the press conference, on Tuesday, March 2nd 2010 on the Maserati stand (n.1051)...

2010 Fiat Abarth Punto Evo

The new 165 HP Multiair 1.4 turbo petrol engine is the result of a winning partnership between Fiat Power train Technology and Abarth race-derived know-how. Since the Fiat Power train engine was first presented at last year’s Geneva motor show, Abarth engineers have been working hard to squeeze every last drop of power out of it and to improve its sporting performance in typical Abarth style. Multiair engine technology has revolutionised the world...

2011 Volkswagen Phaeton

At the Transparent Factory in Dresden Volkswagen produces one of the finest automobiles in the world: the Phaeton. The limousine’s quality and comfort (four-wheel drive and air suspension as standard) set a unique benchmark. Volkswagen, the most successful car maker in Europe and China, has now made the Phaeton even more perfect. The company’s new flagship is being unveiled for the first time at Auto China 2010 (27th April to 2nd May) in...

2010 Bugatti Grand Sport Soleil de Nuit

The “Soleil de Nuit” – Sun of the Night – is another stunning example of how a modern interpretation of Bugatti’s core values “Art, Forme, Technique”: A very unusual colour/material split characterizes the “Soleil de Nuit”, the second Middle East one-off model created for the Dubai Motor Show. The horizontal split in the lower part of the car –...

2010 Audi R15 TDI

Whereas silver was the dominant color of the Audi R15 TDI last year, the 2010 model boasts a radical new design that features more red. In addition, large areas of the Le Mans race sports car that is internally designated as “R15 plus” will be kept in a purist black carbon-fiber look. The 2010 version of the Audi R15 TDI completed a roll-out at the Audi test track in Neustadt at the beginning...

2011 GWA-Tuning Mercedes-Benz E63 Estate

 

GWA-TUNING is releasing their new body kit for the 2011 Mercedes E63 estate (S212). The kit consists of a front bumper spoiler with LED daytime running lights, extra brake cooling ducts, a special grille (similar to the one used on the CLK model), side skirts with rear brake cooling vents, a carbon fiber rear diffuser with integrated LED fog light, a roof spoiler, front fenders with carbon fiber vents,...

Maserati Spyder The Latest Car Coming Soon In 2010

Maserati Spyder the latest car coming-soon in 2010 in market this is the latest modern design car. It has including great features this car is best for driving you can easily go for a long drive of this car it has excellent quality of engine power also it is available in black and white color which looks fantastic and amazing.

This is the latest luxury model car it has high capacity of speed it runs smoothly in anywhere you can easily drive this car in anywhere.

Maserati Spyder is the great car company that offers excellent latest cars it has great internal and external features. Also the wheel of this car is stylish you can easily go far with your family for vacations this car is best for four small family.

Investing Tips to Save Your Money

How to save your hard earned money? Do you have an investment plan? Here are some tips to select appropriate investing options to retire wealthy.
Traditionally, there are 3 investment options available. The golden rule is to diversify your portfolio among all the options depending upon your risk appetite, earnings and the time span you let the assets to grow. The diversification balances your portfolio between the risk prone ones to the conservative ones and thus preventing heavy exposure of wealth in a single asset class.
Investment options
1) Equity Shares
It is, basically, the most common asset class where people put their money because it has
high return on investment, but at the same time, involves substantial amount of risk. People buying equity shares of a company are legally part of the company and thus profit to the company is entitled to them. People who are younger and at the beginning of their career, having higher risk appetite can allocate considerable amount in this class. But people who are about to retire in a few years can limit their exposure, as it is highly risky in their part.
2) Bonds, Mutual funds, Savings A/c
Bonds are securities that people can buy from governments, private companies, etc and the issuer of
the bond is obliged to pay the lender. It involves less risk appetite because of its lesser rate of return. Similarly, savings account also is a good option for investment with less risk. Since the return on investment is less, it is savvy to expose only a part of your wealth in this class. But again, it depends upon ones risk appetite and time horizon.
3) Real Estate
Real estate is yet another area which one should have in their portfolio. Real estates are tangible assets
that provides more stability to a portfolio. But it requires long time period to grow your wealth.
One more asset class getting popular these days are commodities. For instance, gold and silver come under this class and it is good to include them in your portfolio as well. Gold is considered to be the safe haven for investors during inflation, because during inflation gold rate will increase as well, preventing your portfolio from falling off the bridge.

The best investment strategy is to invest in all said classes. And invest only your risk capital that is the money not set aside for emergency needs and monthly expenses.

Article Source : ezinearticles.com

Best Investment Strategy For 2010

The best investment strategy for 2010 and beyond is not likely to be the normal investment strategy recommended year after year by many investment firms. Things ARE different this time. Here's your basic investment guide of things to consider going forward.
Year after year the basic investment strategy or asset allocation recommended for most people: 60% stocks and 40% bonds. Stocks or stock funds are the growth element and bonds or bond funds are the safer investment that provides higher income in this asset allocation. In theory, losses in one should be offset by gains in the other. It's time to review your present asset allocation. You might be taking more risk than you think you are.
Sometimes the best investment strategy is aggressive in nature; other times a bit of defense is called for. Rarely does chasing a hot asset class pay off for long. With the stock market up 60% in less than a year and high bond prices (super-low interest rates), that's exactly what many investors are doing. At the same time some are chasing gold at historically high prices, and emerging stock markets that have been on fire (like China).
Your asset allocation has probably changed since you last looked due to fast changing markets. Take a good look, and then decide if your investment strategy is on track at an acceptable level of risk. If you are heavy into either stocks or bonds (or both) you might want to lighten up and diversify more. In 2010 and beyond the investment landscape could change considerably.
What if the financial crisis is not really over, or the U.S. dollar continues to be unstable? What if economic growth fails to materialize or interest rates soar? The USA has not been faced with more economic uncertainty in my time, and I've followed the economy and the markets since 1972. Here's a basic investment guide to avoiding heavy losses should the going get tough again.
If you hold bonds or bond funds consider shortening your maturities and cutting your exposure. For example, if you hold long-term bond funds consider moving to intermediate-term and short-term bond funds. Rising interest rates will send bond prices (values) down, and long-term bonds will get hit the hardest. You will sacrifice higher interest income, but will increase safety with this investment strategy.
Stocks and stock funds may have moved up too far too fast in 2009. Don't chase the stock market unless you want to speculate. Consider lightening up your asset allocation to stocks that closely follow the market in general. It's quite likely that much of this move upward was "window dressing" by large portfolio managers who want to look good at year end. Some of it was no doubt caused by individual investors looking for higher returns in a low-interest-rate environment. Any bad news in 2010 could prompt these same investors to sell and send stock prices down.
Now that you've cut your asset allocation to bond and stock investments in general, where do you put this money? When in doubt CASH is king. Cash refers to safe, liquid investments like savings accounts, short-term CDs, and money market securities. Money market mutual funds are the easiest way for the average investor to put money into money market securities. With short-term interest rates at historical lows many investors have taken money out of these safe investments. If you want to play defense, increase your asset allocation to cash.
For offense consider moving money periodically into a variety of areas often overlooked by average investors... to broaden your diversification. For example, consider stocks in the following specialty sectors: basic materials, natural resources, real estate, foreign securities, and precious metals if you don't already have money there. Mutual funds are available in all the above specialty sectors as well. Invest in increments to smooth out the risk of bad timing.
In times of high uncertainty don't follow the crowd. Your best investment strategy is to survive financially with your investment assets intact. When the dust settles get more aggressive with your asset allocation. Meanwhile, cash is king; and diversify, diversify, diversify.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.
Article Source: EzineArticles.com

Forex: AUD/USD, consolidating losses between 0.8100 and 0.8200

Australian Dollar remains trading within a flat channel, between support area at 0.8080/90, right above 0.8065, 11-month low, and 0.8215 on the upside, which remains capping Aussie's upside moves.

During the next two days, the pair is likely to remain moving roughly between 0.8100 and 0.8200, says the Kshitij Consultancy Services Team: "The pair has moved up after touching a low of 0.8082 in the Asian session today. We may now expect some rise on the pair towards 0.8250-75 in the US session today, followed by some dip towards 0.8100 in the coming sessions over today and tomorrow."

On the longer term, the Kshitij Consultancy Services Team, expects the downtrend to continue over the coming weeks towards 0.7700 area: "In the coming weeks, the pair may touch 0.7700, in case of a strong break below 0.8100."

• AUD/USD

AUD/USD (Jun 08 at 14:14 GMT)

0.8183/88 (1.12%)

H 0.8217 L 0.8084

S3	S2	S1	R1	R2	R3
0.8135	0.8155	0.8176	0.8190	0.8211	0.8231

[?]Trend Index	[?]OB/OS Index
Slightly Bullish	Neutral
Data updated on Jun 08 at 13:38 (15-minute timeframe)

Lorinser Mercedes Benz E-Class W212 Limousine 2010

CAR MAKE & MODEL

Lorinser Mercedes Benz E-Class W212 Limousine 2010 Pictures

CAR REF NUMBER
23961

CAR COLOUR
White

The W212 premium limousine: The new E-Class as a top-class Lorinser

The popular luxury car from Mercedes Benz already has six decades of model history behind it. It was only natural for Sportservice Lorinser, a company with long tradition, to take on the type W212 limousine with special devotion. The result is an optical and technical masterpiece, which is available from now.

Its new aura is not just mysterious, but also oozes power. The designers knew that by having a middle section in the bumper marked with a different colour, they would be able to skilfully emphasise the typical Lorinser gills in the fenders as well as the voluminous side sills. In addition they gave the clear-puritan design of the basic bodywork interesting new highlights: a pert rear, formed by the Lorinser rear apron with the diffuser set and a dynamic roof spoiler. Sports suspension with adequate lowering guarantees that the limousine takes the corners every time. Attractive light-alloy wheels suit them well, which Lorinser offers in timelessly classic and modern designs.

With regards to the sound, the Lorinser E-Class already showed its highly-addictive potential at its first public appearances. This is no wonder as four sonorous exhaust pipes set off acoustic fireworks as soon as you put your foot down.

2010 BMW Z4

CLICK ON IMAGE FOR LARGE SIZE .

BMW will unveil the all-new Z4 roadster at the Detroit Auto Show next month, but there’s no need to wait for the show in Motown to see the car in non-spyshot form, as all the Euro-spec details were officially released when the clock struck midnight in Munich. We’re into the new bodywork, which is pretty voluptuous compared to the preceding model, with a hint of 507 lineage evident in the car’s lines.

Maserati Spyder The Latest Car Coming Soon In 2010

CLICK ON IMAGE FOR LARGE SIZE .

Maserati Spyder the latest car coming-soon in 2010 in market this is the latest modern design car. It has including great features this car is best for driving you can easily go for a long drive of this car it has excellent quality of engine power also it is available in black and white color which looks fantastic and amazing.

2010 Techart Porsche Cayman

CLICK ON IMAGE FOR LARGE SIZE .

Techart is well known in the aftermarket tuner scene for creating some of the greatest performance kits for PORSCHE  cars. The German tuner’s latest kit designed is for the latest 2010 Porsche Cayman.

Designed to enhance both the interior and exterior of the popular sports cars, Techart’s latest kit includes a new bodykit, daytime running lights, stiffer springs, and carbon-fiber cabin enhancements.

The new body parts have been fully wind-tunnel tested to optimize the cars’ drag coefficients, as well as increase downforce on both axles. The full kit consists of a new front spoiler and lip, a rear diffuser and oversized GT wing, and sporty side skirts.

TechArts’s, Cayman-based GT design features new multi functional daytime running lights system that is elegantly integrated into the upper part of the front spoiler.

Forecaster Trader Package

Many indicators were developed before calculators were available and are very basic in the information they provide... The package includes the powerful & unique support & resistance levels from The Daily Forecaster plus 6 intuitive indicators that can be applied in MT4 charts and supported by a daily retrospective review of the S&R levels, and potential trade set ups indicated by the indicators and common price patterns. The outlook implied by the indicators is also included where appropriate.

Features: Six support and six resistance levels for the day's anticipated movement taken from The Daily Forecaster report

Six indicators crafted from 27 years of experience
FX-f Equilibrium Cloud
FX-f Trailing Stop
FX-f RSI
FX-f Trend Stochastics
FX-f PVO
FX-f Valley Peak

A daily retrospective report covering the support & resistance, potential trade set ups implied by the indicators and classic price patterns and a review of the indications being offered by the indicators for the coming day

download

Version FX-forecaster trader package

(134 KB)

Gold May Catch Sovereign Risk Flows as Hungary Flirts with Default

There are many different safe haven assets in the global financial markets. Traditionally, the balance between risk aversion and risk appetite would transfer capital back and forth between equities and bonds. During the worst of the 2007/2008 financial crisis, the split would find deeply liquid Treasuries and money markets on one side of the spectrum while derivatives and simple growth-linked securities suffered the worst of the exodus.

 

Fundamental Forecast for Gold: Bullish

- Hungary warns its economy in a “grave” position, default could be a very real scenario 

- US NFPs find a skeptical market, lead safe havens higher

There are many different safe haven assets in the global financial markets. Traditionally, the balance between risk aversion and risk appetite would transfer capital back and forth between equities and bonds. During the worst of the 2007/2008 financial crisis, the split would find deeply liquid Treasuries and money markets on one side of the spectrum while derivatives and simple growth-linked securities suffered the worst of the exodus. In the year that followed, a general improvement in sentiment would rank economies against other economies. Now, conditions have evolved even further. Considering governments hold some of the most unattractive assets (taken from banks and other private firms) and are running record deficits; fear now encompasses the traditional high and low risk assets, pits fundamentally strong economies against those that are week and isolates those securities that are attached to a sovereign default.

The kind of capital that is invested into government bonds is a different sort than the purely speculative variety. Typically, these funds are considered to be relatively safe as volatility is historically low and the risk of default is almost nil (hence using their yield as a risk free rate when calculating derivatives). However, where do you go when government bonds and the currencies that represent them are considered too risky? There are few other alternatives; but gold has a history of standing in as a currency in its own right. Is it a good alternative? That is debatable. Nonetheless, as the threat of sovereign defaults and currency dissolution, the precious metal looks more and more attractive. The commodity would advance this past week on warnings by the ECB that loan losses among regional banks would rise through 2011 and on again on Friday when the Hungarian government remarked that it was in a “very grave” situation. Though EU economies like Greece and Portugal show some level of possible default; officials have steered clear of sharing these concerns and instead have championed their efforts to turn their economies and finances around. This is why the Hungarian Prime Minister’s remarks that he didn’t “think it’s an exaggeration at all to talk about a default” are so remarkable. Will the Hungary follow through on this dour outlook? We may find out sooner than later.

Looking out over the coming week, updates on Hungary have the potential to be the most volatile threat to market stability. However, that isn’t the only market-wide risk that could drive capital into the safety of the ‘alternative’ asset. The G20 meeting over the weekend could theoretically elicit significant changes like a global change to banking reserves and liquidity (which could ultimately seize the global financial markets); but given the proposed deadline of December, a resolution now is highly unlikely. Looking for definable catalysts for uncertainty; there are few specific indicators that can shake confidence market-wide. Of particular interest are the rate decisions. The RBNZ is the only central bank that is expected to move. A hike could move the needle on the balance between risk / reward. Alternatively, the ECB and BoE decisions will not lead to any changes. However, the commentary that follows could offer clues to financial health that ultimately determines whether a downgrade could be in store for the future. - JK

This article taken by DailFX.c

Bank of England and European Central Bank to maintain rates

The Bank of England's Monetary Policy Committee (MPC) has a stated goal of 2.0% inflation and a meeting on June 10 to decide their future interest rate policy. Nevermind that April's Consumer Price Index came in at 3.7% and its Retail Price Index - which has an even longer history - was at 5.3%, the MPC has been content to pass on opportunity after opportunity to raise the UK Bank Rate from its current record low level of 0.5%. Central Banks the globe over are maintaining record low interest rates, but nowhere is inflation as noticeably elevated as in England. The US reported April CPI at 2.2% and the Eurozone had a 1.6% rate for May. Why is England's so high?

• depreciation of the Sterling (over 4% in the past month)
• restoration of the 17.5% Value Added Tax (VAT) in January 2010
• oil prices rising nearly 70% from prior year
• loss of supply capacity due to the downturn
• businesses opting to maintain profit margins in this reduced credit environment, rather than cut prices to boost sales

It's quaint to think that just this past September, the UK reported a pithy 1.0% inflation. Of all the functional and moral responsibilities in setting the bank rate, surely among the most pressing is saving the average man from forces outside his control declining value of his money.  Just last week the OECD advised the MPC to get Bank Rate back up to 3.5% by the end of 2011. 

This begs the question: What is the MPC thinking? Are they wary of quashing the sprigs of recovery with too-high interest rates? Is it that some inflationary factors, like the VAT and oil prices, may stop bolstering the rate soon? Is England perhaps embracing a hyperinflation policy to "inflate away" its staggering public and private debt? Or is the MPC ready to change its mind? 

We polled our experts and came upon a unanimous, resounding "MAINTAIN" forecast. Here are some reasons why:

• Michael Malpede, Easy Forex:
  "The BoE will maintain steady rate policy and the current level of asset purchases because the UK recovery is uneven and the new governments plan to cut the record UK budget deficit is a risk to the recovery. UK inflation has been rising and if the rise continues the BOE may be forced to move towards a normalization of rate policy before year end."
• Trevor Williams, Lloyds Banking Group: 
  "The BoE will maintain rates. Volatility has returned to markets and risks to growth are downside from weak activity in the United Kingdom's biggest trading bloc, the European Union. The Bank of Canada may have raised rates, but Canada is in a unique position, benefiting from recovery in US and strong rise in commodity prices, plus good fiscal position before crisis started."
• Ashraf Laidi, independent global markets analyst:
  "The BoE will maintain steady rate policy and the current level of asset purchases because the UK recovery is uneven and the new governments plan to cut the record UK budget deficit is a risk to the recovery. UK inflation has been rising and if the rise continues the BOE may be forced to move towards a normalization of rate policy before year end."
• Piet Lammens, Head of Treasury and Capital Markets, KBC:
  "The BoE will maintain rates due to prevailing economic weakness, still-weak banking sheets and a preference for a weak Sterling."
• Kathy Lien, Director of Currency Research of FX360 and GFT:
  "BoE will maintain rates - Like the Eurozone, the U.K. has a host of budget problems. However they are in much better shape than the ECB but with the new government expected to announce a barrage of measures to bring down the deficit, the BoE will most likely postpone any normalization of monetary policy until there are clear signs that the recovery is sustainable."

The European Central Bank (ECB) also has a stated goal interest rate of 2.0%, but unlike the Bank of England the ECB has been dealing with a perpetually below-target inflation rate. Eurozone inflation was at 1.6% for May, having risen almost continuously from 0.5% in November 2010.  The Eurozone is not exactly frothing with growth, as per the weak retail sales and industrial production data released this past week, and the ranks of Euroarea nations under austerity plans seems to grow by the day. 

The ECB is facing more complicated questions than just the standard yes/no on interest rate increases expected of a typical central bank. Despite 11 years of monetary union, rifts in the competitiveness and fiscal profiles of more productive nations like Germany, and less-so ones like Greece make it difficult to frame a monetary policy suited to all but the weakest members. 

Besides appeasing inflation-wary German Bundesbank heads, whose nation is currently benefitting from low-Euro-driven export growth, an interest rate hike may regain some of the ECB's credibility, which it reluctantly tendered as the multi-country bank proceeded to purchase member state-issued bonds in May at generous prices - a form of monetary easing in itself. The ECB was one of the few, the proud, who were not joining the quantitative easing bandwagon up until that point. Perhaps on June 10th, the bank would reverse course.

 

We polled our experts and came upon a unanimous, resounding "MAINTAIN" forecast. Here are some reasons why:

• Michael Malpede, Easy Forex:
  "The ECB has little choice but to maintain steady policy because of concern that the EU debt crisis and new austerity measures will curb growth."
• Trevor Williams, Lloyds Banking Group: 
  "The ECB must maintain rates. The Eurozone economy is weakening and has to deal with sovereign risk risk issues."
• Ashraf Laidi, independent global markets analyst:
  "With the ECB already buying bonds, it performing an implicit monetary easing. It will keep rates unchanged at least into the rest of the year."
• Piet Lammens, Head of Treasury and Capital Markets, KBC:
  "The Eurozone is facing a crisis in its government debt market; the ECB must maintain rates."
• Kathy Lien, Director of Currency Research of FX360 and GFT:
  "With the financial situation of European nations in disarray, the ECB will remain dovish and continue to provide monetary support for countries that are actively reducing their budget deficits. I fully expect the ECB's normalization of monetary policy to lag behind the Fed and other major central banks."

Pagani Zonda Roadster F C12S 7.3, Clubsport version – $667,320

This Pagani Zonda features an engine that puts out 650 HP, which makes it more powerful than its predecessor Pagani Zonda F and much more powerful than the older Pagani Zonda C12 S.

Pagani is a boutique Italian race car maker that specializes in building radical-looking sports cars. This expensive new model has helped the Zonda remain in 2nd place on the most expensive car list, where it ended up in year 2005.

World Most Expensive Blue Diamond

Identified as one of the unique gems in the world, a flawless blue diamond is now being honored as the most expensive gemstone in the world. The 6.04-carat diamond has been sold for $7.98 million at Sotheby’s auction in Hong Kong. To my non-surprise, the flawless blue diamond fetched $1.32 million per carat. The sale has beaten the record made 20-years-back by the ‘Hancock Red’ — a red diamond that generated $926,000 per carat at Sotheby’s.

Taking a Fundamental Approach to Forex Trading

Taking a fundamental approach to investing can be applied to the Forex market in the same way it is utilized in the Stock market. Because currencies, or more specifically the countries of the currencies in question, are affected by economic events just as stocks are, the Forex trader is able to look for a relative value among various currencies.

A fundamental approach to Forex involves analyzing the relative strength and weakness of each currency along with an evaluation of where the specific currency is headed based on certain underlying factors including current and (perceived) future economic, political, and social conditions.

As outlined above, there are numerous types of factors that can influence a currency including; interest rates, political events, trade balance, merger and acquisition activity. Such statistics can be found in reports that are regularly issues by the governments of each country. IN order to determine when these reports will be released, one must observe an economic calendar.

Now let us take a look at the various economic factors that can influence a countries currency (we will take a look at the US for the purposes of this example, however, you must note that such reports are available for multiply countries and all should be observed):

Interest Rates

In order to implement various policies, Central banks often alter interest rates. Such a change in interest rates can result in a severe affect on the inherent “attractiveness” of a country’s currency. When rates are increased, the value of a currency typically increases via investors looking to take advantage of the higher rates. Inversely, when interest rates are decreased, the value of a currency will typically fall due to the lack of investment opportunity.

This being said, Central banks very rarely change interest rates without signaling their intent to do so before the actual change is initiated. Therefore, you can get a feel for the direction of interest rates by analyzing the reports released by Central banks around the world. If you are going to concentrate of fundamental analysis, getting a feel for the meaning lying within the comments made by central bankers will be key to your success.

Political Events

The current political situation in any country always has an effect on its underlying economy. For example, the state of the UK economy or the proximity of a major election can affect the Euro’s strength. Having a strong currency results in a nation’s goods being more expensive to export, but conversely makes it cheaper for the people of said nation to purchase foreign goods and vice versa.

The above is an example of how the political environment of a country can affect it internally; however, the political environment of one country also has an effect on other countries as well. For example, the US and Japan historically have taken a strong interest in the ratio of their respective currencies and have often changed their mutual behavior in order to influence said ratio. Another example of this was seen when Iran's leader caused a massive stir by suggesting that his country would consider taking payments for oil in Euros, which would drastically alter the age old practice among the world's nations of utilizing US Dollars to settle international oil transactions.

The Economic Calendar

Both the U.S. and various other governments issue regular reports on varying sectors of their economies which provide important information on the health of the economy and nearly always result in a Forex market reaction. Some of the more crucial reports are outlined below:

• Non-Farm Payroll
  The Non-Farm Payroll report, released by the U.S. Bureau of Labor Statistics, is released on the first Friday of every month and serves as a commentary on employment trends in the US. The report is used to represent the total number of paid U.S. employees with a few exceptions (hence the “Non-Farm” aspect of the report) and represents roughly 80% of the citizens who accumulate the US GDP. Generally speaking, the greater the amount of employees and the higher the salary, the stronger the U.S. economy and USD.
• Consumer Price Index
  The Consumer Price Index or CPI is an indicator of inflation that measures the change in the price of a predetermined basket of goods and therefore a growth in price of the basket is indicative of a devaluated currency.
• Industrial Production
  Industrial production is a broad measure of economic activity in US heavy industries. The report is analyzed due to its tendency to hint at future GDP growth.
  In addition to these key reports, there are also many others issued that can also have a strong bearing on the Forex market including: The gross domestic product (GDP), the producer price index, automotive sales, consumer sentiment, crude oil inventories, and many others.

Fundamental Forex Strategies: Reaction is the Key

The aforementioned reports are issued on a regular basis and because of this traders tend to anticipate what the report's number will be and "consensus figure” is determined. As a result, when the report is officially released, the market's reaction is generally not to the number itself but rather to how close the “consensus figure” is to the actual number. This may seem counterintuitive, so let us explore why this is the case.

This reaction to the “consensus figure” illustrates a market dynamic that is essential for every fundamental trader to understand- "discounting". The Forex market tends create a “consensus figure” and set prices accordingly – this is known as “discounting”. Since the consensus figure is almost completely built into the market before the report is issued, logic follows that the markets react strongly when the official report offers a number that is higher or lower than originally anticipated.

Conclusion

Fundamental traders take on the ideal that a country’s underlying economic and political conditions are the driving forces behind currency prices. To be a successful fundamental trader, one must monitor regular economic reports and react to surprise figures while evaluating trading nations. Possessing knowledge of these basic market dynamics is crucial for success in conjunction with any trading approach you take to the Forex market.

7 rules For Choosing A Forex Broker

With the rapid rise of Forex Trading over the last few years, the number of brokers available in the market are also growing at a rapid rate. Most traders are scratching their heads when it comes to choosing a reliable broker to trade with. Unless you are a bank or large financial institution, you will need a broker to trade currencies. In fact, all individual traders need a broker to trade in the Forex Market. This is a critical step to take before you can begin your journey as a Forex Trader.

However, not all brokers are of the same mould. You will need to find a broker that meets your specific needs as a trader. This is where the difficulty lies since not all brokers offer the same services or have the same policies. This can affect your ability to trade effectively. In this article, we will discuss the 7 rules that every trader must consider when choosing a Forex Broker.

1. Regulation

The regulated Forex brokers are accountable to the authorities. They have specific regulations to follow. With these brokers, most of the information is available online and you can easily find out their past performance. To find out if a Forex broker is regulated, you first need to find out which country the broker is registered in. Always choose a Forex broker that is conducting business in a country where their activities are monitored by a regulatory agency. For example, US Forex brokers should be a member of the National Futures Association (NFA) and registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC). In Switzerland, the regulatory body is the Swiss Federal Department of Finance.

If a broker is not regulated at all, it might be wise to choose another broker.

2. Spread

In another words, low transaction cost. Unlike futures or stocks, currencies are not traded through a central exchange. Hence, different brokers may quote you different spreads. Spread is a MAJOR consideration in every good trader’s mind because choosing a broker with unusually high spreads is a sure-fire way to kill off your account.

Additionally, do check if the spread is fixed or variable. A fixed spread means exactly that - it will always be the same no matter what time of the day it is. Some brokers use a variable spread, which means that the spread varies depending on the market conditions. Typically, this would mean a small spread when the market is quiet and a wider spread when activity heats up. When you play with a wider spread, take note that the market must move more in your favour before you start to see a profit. Over the long term, fixed spreads can be safer for a trader.

3. Trading Platform & Software

The best way to get a feel of the broker’s trading software is to try out the demo account which is readily available. Choose one that you would be most comfortable with when trading. The software should have basic features like trailing stops and direct trading from the chart or price quotes. Some features may only be available at a cost, so be sure you understand what you are getting and how your broker is charging for the added services. The speed of execution is also very important. Be wary of brokers who do not “honour” the price feeds displayed. This happens most often through “re-quotes” and delays in getting the price that you clicked. For the record, the most popular trading software which Forex traders all around the world use is called the MT4 (Meta Trader 4) platform.

4. Support

The Forex Market is a dynamic market. Over 3 trillion US Dollars is traded every single day, 24 hours a day. Your broker should ideally offer 24-hour support. Check out the avenues of support provided – is it through a direct telephone line or just a simple email address? Most reputable brokers now have a “Live Chat” function, where traders can engage a customer service officer readily, anytime of the day. You should also check if you can close positions over the phone – absolutely essential in the event your most trusted PC or internet connection crashes at a critical moment (think Murphy’s Law).

5. Minimum Trading Size Requirement

Many brokers offer different types of accounts. The two most types are the “standard account” and the “mini account.” A standard account means that the trader uses lots of 100,000 units. A mini account means that the trader uses lots of 10,000 units. Hence, 1 “mini” lot is 10% of a “standard” lot. The main difference between the two accounts is the “payout”. For a “standard” account, 1 pip is usually worth USD10. In a “mini” account, 1 pip is worth USD1. A “pip” is a unit of measurement for each uptick (or downtick) in the currency charts. A “mini” account is appropriate for a beginner because, while the profit potential is lower, the amount of risk involved per trade is also lower. Do check that your broker offers “mini” accounts, especially if you are new to Forex Trading.

6. Margin and Leverage Policy

Ensure that you understand the broker's margin terms before setting up an account. What are the margin requirements? How is their margin calculated? Does it ever vary according to the currency pair being traded? Or even the day and time of the week you trade? Some brokers may offer different margins for “standard” and “mini” accounts. In terms of leverage, most brokers offer anywhere from 50:1 all the way up to 400:1. Leverage is truly a double-edged sword. As a general rule of thumb, don’t use too much leverage. It’s one of the biggest reasons why novice traders blow up their accounts.

7. Withdrawal Fees

Ultimately, the benchmark of any Forex trader worth his salt is to be consistently profitable in the Forex Market. Check that there are not too many “financial leaks” deterring you from this goal. Do a comparison on the withdrawal/wiring fees of some brokers. Over the long term, you would be wiring back a portion of your profits on a consistent basis. For some traders, it could mean once every several months. Do your homework early so that the fees incurred do not cause too much of a dent in your trading profits.

Always remember to trade on a demo account for at least 2 months first before going LIVE on your chosen broker.

• Download full report