Egold security

If you are having your egold hacked, you may want to have a look at this article and see if this applies to you or helps in any way.

Get the word out and for heaven's sake, use firefox especially for surfing!
I've been doing some research on the egold trojan and how accounts are getting hacked. The scary part is that from what I read, most
anti-virus/spyware programs are not going to catch it because it is not in their databases yet.

Not only that, this trojan does not activate until after you have logged into your egold and it uses your own computer to bypass every security measure, IP confirmation, password SRK, everything.

The trojan uses an exploit in IE to infect your computer. DO NOT USE INTERNET EXPLORER. I can't stress that enough. Download and use Firefox.

Here is a description that I found on how this trojan works:
This Trojan does not employ usual phishing techniques, like logging user keystrokes in text files that can be sent to a remote malicious user. Instead, whenever a user tries to access the
e-gold account login form via the URL http://e-gold.com/acct/login.html, it opens a hidden duplicate Internet Explorer (IE) window accessing that same URL. It then proceeds to fill up the duplicate Web form, which eventually leads to illegal account access.

The Trojan periodically drains the funds of the compromised account by a certain percentage. The stolen funds are then transferred to another e-gold account.

To be able to successfully perform this function, this Trojan uses IE's built-in Object Linking and Embedding (OLE) automation functions. This method is similar to API hooks used by file-infectors. In this case, this Trojan executes certain functions for every change in the URL address that occurs while the user continues to navigate through the following e-gold Web pages:
* e-gold.com/acct/acct.asp
* e-gold.com/acct/balance.asp
* e-gold.com/acct/spend.asp
* e-gold.com/acct/verify.asp
* https: //www.e-gold.com/acct/acct.asp
* https: //www.e-gold.com/acct/balance.asp
* https: //www.e-gold.com/acct/spend.asp

(Note: Object Linking and Embedding (OLE) is a compound document standard that enables a user to create objects with one application and then link or embed them in another application.)

The Trojan runs on Windows 95, 98, ME, NT, 2000, and XP.
You all need to check your computers for the file named gdiwxp.dll. This is the most recent variant of the trojan that I could find and was still popping up in late March.

If you have this file on your computer, you are infected with the egold trojan and and you need to get rid of it immediately.
I don't know if the file will show up with a simple file search, it may be a hidden.

I used Hijack This to look at my registry for the file.
You can download Hijack This for free at:
http://www.download.com/HijackThis/3...-10227353.html

This program is mainly used by people so that they can post a registry log in the tech forums and ask for help. Don't remove anything in your registry unless you know what you are doing. Just look for the file containing gdiwxp.dll.

If you find the trojan on your computer, you can use Security Task Manager to get rid of it.
http://www.neuber.com/taskmanager/

I also noticed that RegRun has this file in their trojan database and can remove it for you.
http://www.greatis.com/appdata/d/g/gdiwxp.dll.htm

Again, DO NOT USE INTERNET EXPLORER!!!!!!
One of the symptoms that you are infected with this trojan is that you get the wrong turing number page (at egold) every time you try to log in. On the page you are redirected to, the links at the top of the page will not work.

There are three security recommendations we would like to make to you in case you are not currently doing them.
1. You may want to consider book marking the e-gold IP address versus the URL as your e-gold bookmark and only access it via your bookmark. The IP to bookmark is https://209.200.169.10. The reason for doing this is there are viruses such as this one:
http://us.mcafee.com/virusInfo/defau...&virus_k=99469
that plant fake entries in the host file which windows then uses instead of the correct IP address for the site. Using the e-gold IP address versus the URL will bypass this type of Trojan. Also, never access your e-gold account via an email message even if the message appears to come from e-gold.

2. Always use the SRK feature to access your e-gold account never type it in! You should first change your passphrase using the SRK feature. If your passphrase is changed using the "SRK" feature and the account is only accessed using the "SRK" feature, then your passphrase will be protected even if there is a Trojan virus on your computer. However, this is true only if you are at the correct e-gold site. To ensure you are always at the e-gold site, you may want to click the box next to your account number on the login page that says, "Store my account number on my computer". In the future when you attempt to log into your account and if the account number is not displayed, you should be wary of entering your passphrase because you may be at a fake e-gold site.

a. Log into your account using your current passphrase.
b. Click on the button that says, "account info"
c. Scroll down to passphrase box and click in the box.
d. Click on the button that says SRK
e. A small window will pop up on your screen
f. Enter your new passphrase by clicking on the numbers, letters or symbols in the pop-up window. You will see *** being added to the passphrase box as you use your mouse to click on the numbers, letters or symbols. *See note
g. When ready to confirm your passphrase click on the arrow on the bottom right hand corner of the pop-up window.
h. Confirm new passphrase using the same procedure you followed in item #6.
i. Click update passphrase.

*Note: For upper case letter click on the upper case "ABC", for lower case letters click on the lower case "abc", for numbers click on the "123", for symbols click on the "sym"

3. If you are making a spend via the e-gold shopping cart interface (SCI) always confirm you at the actual e-gold site.

To verify you are at the actual e-gold site when using the SCI spend page, double click on the gold security lock and verify
that the certificate was issued to www.e-gold.com and that the certificate was issued by verisign and is valid from 11/22/2004 to 12/1/2006.
You can also review the certificate details and make sure the certificate serial
number is: F84F 522C E958 A443 5A37 8934 6D77 2D70 096C 6A82.

Good Luck

Asianpay

Asianpay
Connecting the business
http://www.asianpay.com/


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E-Currency Exchange : 4 Great Income Streams and Counting

By Merv Thompson

This article provides a brief overview of the 4 sources of income we can take advantage of as a participant in the e-currency exchange trading system.

Specifically, I am refering to the e-currency exchange program through DXinOne. DXinOne is by far the leader in facilitating e-currency conversions. The fees charged to account for these transactions is how DXinOne makes money. They are in essence a clearing house.

So how do I make money in this?

1. The first and most important income source is the Portfolio.

The first thing you will want to do is open an account and start building a portfolio. It does not cost anything to open an account. Fund the account with as little as $25 and start building your portfolio. As you progress you will be able to use leverage to increase the overall value of the portfolio. It is not uncommon to see portfolio growth of 20 to 40% per month.

This is accomplished by combining the daily profits and the leverage to add to your portfolio. The average daily profits on your portfolio will range from about .15% to .35% depending on the supply and demand in the system.

2. The second source of income in the e-currency exchange program is to become qualified as a Merchant.

Don't get excited, you aren't selling anything. Merchant is just a term given to signify those that have qualified to participate in the actual e-currency exchange process. Thousands of times each day there exists the need to convert from one e-currency to another or e-currency to hard cash etc.

This is where the Merchants come in. The Merchants receive a fee of 4 to 14% for making funds available to make these conversion transactions possible. To qualify as a Merchant you must have a portfolio value of at least $5,000 and you have had a DXinOne account for at least 90 days.

3. The third source of income is the P4 Program (Pre-Paid Profits Program).

This program provides non merchants the ability to earn a per transaction fee for exchanging with active merchants. Merchants need liquidity to perform their functions and are willing to pay a fee for this liquidity. The fee paid to the non merchant ranges from 5 to 7% of the transaction.

Caution: I have seen a lot of advertising boasting the P4 Program as "Huge instant profits" and "You get paid first" etc. Unfortunately, you do not have the whole picture. The rest of the picture is 2 part.

The first is, when you have completed a transaction you will have to exchange those funds in order to do anything with them. This exchange will cost you upwards of 3%, so the real returns are cut in half or so.

The second part of the picture is the reality of the time required to perform the e-currency exchange process. As of the writing of this article the process is extraordinarily long. Expect the process to take 2 weeks or longer depending on how the system is flowing and how much you are trying to exchange. So maybe the truth is 2 to 4% return every 3 weeks. Still not too bad for passive income.

4. The fourth source of income is for webmasters.

This is called the AdsExposed Program where advertising is placed on your website. You will receive pay per click revenue from those ads.

So now you have the 4 sources of income currently being offered by DXinOne. The great thing is DXinOne is a progressive organization. They have many other programs and services in the works that will be launched as time goes by.


Merv Thompson Author and operator of http://www.futures-brokers-review.com a website providing tools, resources and reviews for todays trader.

A Primer On The Forex Market

By Jason Van Bergen


With the increasingly widespread availability of electronic trading networks, trading on the currency exchanges is now more accessible than ever. The foreign exchange market, or forex, is notoriously the domain of government central banks and commercial and investment banks, not to mention hedge funds and massive international corporations.

At first glance, the presence of such heavyweight entities may appear rather daunting to the individual investor. But the presence of such powerful groups and such a massive international market can also work to the benefit of the individual trader. The forex offers trading 24-hours a day, five days a week, and the daily dollar volume of currencies traded in the currency market exceeds $1.4 trillion, making it the largest and most liquid market in the world.

Trading Opportunities
The sheer number of currencies traded serves to ensure a rather extreme level of volatility on a day-to-day basis. There will always be currencies that are moving rapidly up or down, offering opportunities for profit (and commensurate risk) to astute traders. Yet, like the equity markets, forex offers plenty of instruments to mitigate risk and allows the individual to profit in both rising and falling markets. Forex also allows highly leveraged trading with low margin requirements relative to its equity counterparts. Perhaps best of all, forex charges zero dealing commissions!

Many of the instruments utilized in forex - such as forwards and futures, options, spread betting, contracts for difference and the spot market - will appear similar to those used in the equity markets. Since the instruments on the forex often maintain minimum trade sizes in terms of the base currencies (the spot market, for example, requires a minimum trade size of 100,000 units of the base currency), the use of margin is absolutely essential for the person trading these instruments.

Buying and Selling Currencies
Regarding the specifics of buying and selling on forex, it is important to note that currencies are always priced in pairs. All trades result in the simultaneous purchase of one currency and the sale of another. This necessitates a slightly different mode of thinking than what you might be used to. While trading on the forex, you would execute a trade only at a time when you expect the currency you are buying to increase in value relative to the one you are selling.

If the currency you are buying does increase in value, you must sell the other currency back in order to lock in a profit. An open trade (or open position), therefore, is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

Base and Counter Currencies and Quotes
Currency traders must become familiar also with the way currencies are quoted. The first currency in the pair is considered the base currency; and the second is the counter or quote currency. Most of the time, U.S. dollar is considered the base currency, and quotes are expressed in units of US$1 per counter currency (for example, USD/JPY or USD/CAD). The only exceptions to this convention are quotes in relation to the euro, the pound sterling and the Australian dollar - these three are quoted as dollars per foreign currency.

Forex quotes always include a bid and an ask price. The bid is the price at which the market maker is willing to buy the base currency in exchange for the counter currency. The ask price is the price at which the market maker is willing to sell the base currency in exchange for the counter currency. The difference between the bid and the ask prices is referred to as the spread.

The cost of establishing a position is determined by the spread, and prices are always quoted using five numbers (for example, 134.85), the final digit of which is referred to as a point or a pip. For example, if USD/JPY was quoted with a bid of 134.85 and an ask of 134.90, the five-pip spread is the cost of trading this position. From the very start, therefore, the trader must recover the five-pip cost from his or her profits, necessitating a favorable move in the position in order simply to break even.

More about Margin
Trading in the currency markets requires a trader to think in a slightly different way also about margin. Margin on the forex is not a down payment on a future purchase of equity but a deposit to the trader's account that will cover against any currency-trading losses in the future. A typical currency trading system will allow for a very high degree of leverage in its margin requirements, up to 100:1. The system will automatically calculate the funds necessary for current positions and will check for margin availability before executing any trade.

Rollover
In the spot forex market, trades must be settled within two business days. For example, if a trader sells a certain number of currency units on Wednesday, he or she must deliver an equivalent number of units on Friday. But currency trading systems may allow for a "rollover", with which open positions can be swapped forward to the next settlement date (giving an extension of two additional business days). The interest rate for such a swap is predetermined, and, in fact, these swaps are actually financial instruments that can also be traded on the currency market.

In any spot rollover transaction the difference between the interest rates of the base and counter currencies is reflected as an overnight loan. If the trader holds a long position in the currency with the higher interest rate, he or she would gain on the spot rollover. The amount of such a gain would fluctuate day-to-day according to the precise interest-rate differential between the base and the counter currency. Such rollover rates are quoted in dollars and are shown in the interest column of the forex trading system. Rollovers, however, will not affect traders who never hold a position overnight since the rollover is exclusively a day-to-day phenomenon.

Conclusion
As one can immediately see, trading in forex requires a slightly different way of thinking than the way required by equity markets. Yet, for its extreme liquidity, multitude of opportunities for large profits due to strong trends and high levels of available leverage, the currency market are hard to resist for the advanced trader. With such potential, however, comes significant risk, and traders should quickly establish an intimate familiarity with methods of risk management.

All the very best in your trading endeavors!

Free Forex links, tutorials, etc!

by DriverDan

I've seen a number of basic questions recently about Forex trading. I don't claim to be an expert. I haven't even gone live yet. However, I have spent the last 2 months doing full time research into Forex. Since there are so many people interested in learning here are a lot of good resources I've found. We might want to turn this into a sticky

I will add sites posted by others periodically.

Basics/Required Reading - Information for beginners and sites everyone should have bookmarked
InvestOpedia (great resource) - http://www.investopedia.com/
Forex PDF Collection - http://www.savefile.com/projects.php?pid=868431
Forex Basics (short) - http://www.fxsol.com/getting_started/forex_basics.asp
Forex Basics (longer, better) - http://www.goforex.net/forex-basics.htm
MMG Forex for Dummies - http://www.moneymakergroup.com/index.php?showtopic=8775
NY FED Foreign Exchange Site - http://www.ny.frb.org/markets/foreignex.html
ForexTradingWorld - http://www.forextradersworld.com/

News / Analysis
ForexNews - http://www.forexnews.com
DailyFX - http://www.dailyfx.com/calendar/FXCalendar.html
http://www.acetraderfx.com/eng/resources/
http://gm.bankofny.com/Research_Home.asp
http://research.cibcwm.com/res/FEX/FEXResearch.html
http://www.pro-forex.com/en/forexreview.php
http://www.rbsmarkets.com/psp/public/home.aspx
http://www.bbh.com/products/fx_daily.shtml
http://www.gftforex.com/resources/commentary.asp
http://www.fxstreet.com/
http://www.forexcentral.net/forex-forecasts
http://www.mataf.net/en/
http://www.forextelevision.com/FT/index.jsp
http://www.iesm.net/
http://www.fx-charts.com/
http://www.fxcentre.com/
http://fxtrade.oanda.com/resources/4cast/indexi.shtml
http://fxtrade.oanda.com/resources/ubsnews/index.shtml
http://www.mizuho-cb.co.uk/TresInternet/index.htm
http://ozforex.com/cgi-bin/dailycommentary.asp
https://www.rbccm.com/0,,cid-15976_,00.html
http://www.fxtechtrade.com/en/
http://www.scotiafx.com/FXCommentaries.htm

Money Management
TS Research Group (EXCELLENT!) - http://www.tsresearchgroup.com/en/public.php

Specific Techniques
Pivot Points - http://www.tradeology.com/pivotpoints.html
Pivot Point Calculator - http://www.fxstreet.com/conversor/fppc/fppc.asp
Vegas Tunnel Method - http://www.freewebs.com/mswilson/


Research
Free/Pay back data - http://www.forexdata.biz/

Software
MetaTrader4 (free realtime quotes and charting, EXCELLENT) - http://www.metaquotes.net
TradeStation (many markets in one program) - http://www.tradestation.com
Lightpatch's MT4 collection - http://www.lightpatch.com/forex/mt_yahoo/


Forums
StrategyBuilderFX (Trading Strategies and MT4 scripts) - http://www.strategybuilderfx.com/forums/
MoneyTec Trader's Community - http://www.moneytec.com/forums/
FX-Review Forum - http://www.createphpbb.com/phpbb/vie...forum=fxreview
AutoForex ($300 signup fee!) - http://autoforex.biz/
Forex TSD (MT4 scripts) - http://www.tsd-forex.com/
MT4 Indicators and EA Yahoo Group - http://finance.groups.yahoo.com/grou...nd_Indicators/
MT4 script discussion - http://www.metatrader.org/
MoneyMaker Group - http://www.moneymakergroup.com/
FXFisherman - http://www.fxfisherman.com/forums/index.php

Signal Services - 99% of signals are a scam so BE CAREFUL and always learn the basics first
Collective2 (real time signal monitoring) - http://www.collective2.com/
Forex Trading Service Review - http://www.fx-review.com/

Books
Trading In The Zone, by Mark Douglas (psychological)
Trade Your Way To Financial Freedom, by Van K Tharp (psychological)
Come Into My Trading Room, by Alexander Elder (psychological, processes)

Brokers
Oanda - http://www.oanda.com/
InterBankFX - http://www.interbankfx.com/
FXCM - http://www.fxcm.com/
North Finance - http://www.northfinance.com/


I will try to update this as I think of more sites. There are tons out there so feel free to share!

How To Read Forex Charts

By: Mark Hamburg

Learning the basic skills in forex, such as how to read forex charts, is really important.

This is because once you have this vital skill under your belt, it will be a lot easier and quicker when the time comes for you to learn and practice an actual forex trading system.

By the time you finish this article, you'll learn how to read forex charts, as well as know the pitfalls that can occur when reading them, especially if you haven't traded forex before.

Firstly, let's revise the basics of a forex trading as this relates directly to how to read forex charts.

Each currency pair is always quoted in the same way.

For example, the EURUSD currency pair is always as EURUSD, with the EUR being the base currency, and the USD being the terms currency, not the other way round with the USD first.

Therefore if the chart of the EURUSD shows that the current price is fluctuating around 1.2155, this means that 1 EURO will buy around 1.2155 US dollars.

And your trade size (face value) is the amount of base currency that you're trading. In this example, if you want to buy 100 000 EURUSD, you're buying 100 000 EUROs.

Now let's have a look at the 5 important steps on how to read a forex chart:

1. If you buy the currency pair, that is, you're long the position, realise that you're looking for the chart of that currency pair to go up, to make a profit on the trade. That is, you want the base currency to strengthen against the terms currency.

On the other hand if you sell the currency pair to short the position, then you're looking for the chart of that currency pair to go down, to make a profit. That is, you want the base currency to weaken against the terms currency.

Pretty simple so far.

2. Always check the time frame displayed. Many trading systems will use multiple time frames to determine the entry of a trade.

For example, a system may use a 4 hour and a 30 minute chart to determine the overall trend of the currency pair by using indicators such as MACD, momentum, or support and resistance lines, and then a 5 minute chart to look for a rise from a temporary dip to determine the actual entry.

So ensure that the chart you're looking at has the correct time frame for your analysis. The best way to do this is to set up your charts with the correct time frames and indicators on them for the system you're trading, and to save and reuse this layout.

3. On most forex charts, it is the BID price rather than the ask price that's displayed on the chart. Remember that a price is always quoted with a bid and an ask (or offer).

For example, the current price of EURUSD may be 1.2055 bid and 1.2058 ask (or offer). When you buy, you buy at the ask, which is the higher of the 2 prices in the spread, and when you sell, you sell at the bid, which is the lower of the two prices.

If you use the chart price to determine an entry or exit, realise that when you place an order to sell when the chart price is say 1.330, then this is the price that you'll sell at assuming no slippage.

If on the other hand, you place an order to buy when the chart price is the same price, then you'll actually buy at 1.3333. A forex system will often determine whether your orders will be placed simply according to the chart price or whether you need to add a buffer when buying or selling.

Also note that on many platforms, when you're placing stop orders (to buy if the price rises above a certain price, or sell when the price falls below a certain price) you can select either “stop if bid” or “stop if offered”.

4. Realise that the times shown on the bottom of forex charts are set to the particular time zone that the forex provider's charts are set to, be it GMT, New York time, or other time zones.

It's handy to have a world clock available on your computer desktop in order to convert the different time zones. This is important when you're trading major economic announcements.

You'll need to convert the time of an announcement to your local time, and the chart time, so you'll know when the announcement is going to happen, and therefore when you need to trade.

5. Finally, check whether the times on your forex charts corresponds to when the candle opens or when the candle closes. Your charting software may be different to someone else's in this way.

The reason I mention this, is that if you need to trade major economic announcements, either by entering a trade based on the movements that happen after the announcement, or to exit a trade before the announcement in avoid getting stopped out during it, then you need to be precise (to the minute!) as these trades are performed according to what happens at the 1 minute immediately after the announcement, not the candle afterwards!

So there you have it.

You now have the 5 essential keys to how to properly read forex charts, which will help you to avoid the common mistakes which many forex beginners make when looking at charts, and which will speed up your progress when you're looking at forex charting packages, and forex trading systems that you want to trade!

Now that you know this, practice looking at forex charts with each of these 5 points in mind.

So get to it!

How Profitable Is the Internet E-Currency Exchanging Business?

by Nathaniel Tabares

There are two kinds of currency exchanging businesses today on the Internet.

The most widely known is the Forex market where you can trade one world currency for another.

The less widely known is the e-currency exchange market, where some companies and individuals make money by exchanging one e-currency for another.

Notice the difference. On the Forex market people make money speculating on the future price of currencies like Euros and Dollars. On the e-currencies exchanging business people make money directly when they exchange the e-currencies. Based on this fact it can be said that Forex is more risky but also more profitable than e-currency exchanges.

We will refer on this article to the e-currency exchanging business alone. Let’s start by describing what e-currencies are. There are many different kinds of e-currencies today on the Internet. Some of the most widely known include www.paypal.com, www.e-gold.com, www.e-bullion.com and www.netpay.tv.

So, how does his market works?

Simple. Let’s say that you have e-gold and you want e-bullion. You visit the website of an online exchanger and request to exchange the funds. The exchanger keeps a percentage of the money to be exchanged. For example let’s say that he keeps 5%.

So, if you give the exchanger $1,000 in e-Gold he will keep $50 plus the amount e-Gold charges him to receive the funds. Then he will give you a little less than $950 of e-Bullion. This happens every day. There are thousands, millions of transactions going on.

How much money you make on this business depends of a few factors.

First if you plan to receive large transactions or a large number of transactions per day then you will need lots of funds ready to stand the demand. Second, how many people know about you and your website.

You will need to invest on advertisement and promote your business. Third how reasonable are your exchanging rates compared to those of other exchanger. If you charge 10% per transaction that’s almost thievery.

Also keep in mind that you will have to comply with the rules and regulations of the jurisdiction you live in. These rules may change from place to place. Make sure you understand well the regulations about this business where you live.

The demand for world currencies like Euros and Dollars is Enormous. The demand for e-currencies exchanges is fairly high. In my opinion this business can be quiet profitable.

Think about it, when you are the e-currency exchanger you act like the bank. You are the market maker, the broker. These parties are the ones who make the money and almost never lose. You have the chance to do this on the e-currency market, but you need to take it as a business and not as a get rich quick scheme.

All businesses require planning, investing, marketing, etc. You can watch what other exchangers are doing and learn from them. Visit their websites and get an idea of what this business requires.

DXGold once seemed it would become the leader on this market. It allowed people to be merchants through their system and exchange e-currencies for others. Unfortunately it seems that they had problems with their system. They have recently moved into other areas of Internet marketing.

Anyway there is still hope for people that wants to make money on this business. The demand for e-currency exchanges is still fairly high. I think that this business could be profitable as many other businesses that you could start online. It all depends on how knowledgeable you are on this field and your dedication and motivation to make it work.

The Fundamentals Of Forex Fundamentals

By Justin Kuepper

Those trading in the foreign-exchange market (forex) rely on the same two basic forms of analysis that are used in the stock market: fundamental analysis and technical analysis. The uses of technical analysis in forex are much the same: price is assumed to reflect all news, and the charts are the objects of analysis. But unlike companies, countries have no balance sheets, so how can fundamental analysis be conducted on a currency?

Since fundamental analysis is about looking at the intrinsic value of an investment, its application in forex entails looking at the economic conditions that affect the valuation of a nation's currency. Here we look at some of the major fundamental factors that play a role in the movement of a currency.

Economic Indicators
Economic indicators are reports released by the government or a private organization that detail a country's economic performance. Economic reports are the means by which a country's economic health is directly measured, but do remember that a great deal of factors and policies will affect a nation's economic performance.

These reports are released at scheduled times, providing the market with an indication of whether a nation's economy has improved or declined. The effects of these reports are comparable to how earnings reports, SEC filings and other releases may affect securities. In forex, as in the stock market, any deviation from the norm can cause large price and volume movements.

You may recognize some of these economic reports, such as the unemployment numbers, which are well publicized. Others, like housing stats, receive little coverage. However, each indicator serves a particular purpose, and can be useful. Here we outline four major reports, some of which are comparable to particular fundamental indicators used by equity investors:

The Gross Domestic Product (GDP)
The GDP is considered the broadest measure of a country's economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures: the advance report and the preliminary report. Significant revisions between these reports can cause considerable volatility. The GDP is somewhat analogous to the gross profit margin of a publicly traded company in that they are both measures of internal growth.

Retail Sales
The retail-sales report measures the total receipts of all retail stores in a given country. This measurement is derived from a diverse sample of retail stores throughout a nation. The report is particularly useful because it is a timely indicator of broad consumer spending patterns that is adjusted for seasonal variables. It can be used to predict the performance of more important lagging indicators, and to assess the immediate direction of an economy. Revisions to advanced reports of retail sales can cause significant volatility. The retail sales report can be compared to the sales activity of a publicly traded company.

Industrial Production
This report shows the change in the production of factories, mines and utilities within a nation. It also reports their 'capacity utilizations', the degree to which the capacity of each of these factories is being used. It is ideal for a nation to see an increase of production while being at its maximum or near maximum capacity utilization.

Traders using this indicator are usually concerned with utility production, which can be extremely volatile since the utilities industry, and in turn the trading of and demand for energy, is heavily affected by changes in weather. Significant revisions between reports can be caused by weather changes, which in turn, can cause volatility in the nation's currency.

Consumer Price Index (CPI)
The CPI is a measure of the change in the prices of consumer goods across over 200 different categories. This report, when compared to a nation's exports, can be used to see if a country is making or losing money on its products and services. Be careful, however, to monitor the exports - it is a focus that is popular with many traders because the prices of exports often change relative to a currency's strength or weakness.
Some of the other major indicators include the purchasing managers index (PMI), producer price index (PPI), durable goods report, employment cost index (ECI), and housing starts. And don't forget the many privately issued reports, the most famous of which is the Michigan Consumer Confidence Survey. All of these provide a valuable resource to traders, if used properly.

So, How Are These Used?
Since economic indicators gauge a country's economic state, changes in the conditions reported will therefore directly affect the price and volume of a country's currency. It is important to keep in mind, however, that the indicators discussed above are not the only things that affect a currency's price. There are third-party reports, technical factors, and many other things that also can drastically affect a currency's valuation. Here are a few useful tips that may help you when conducting fundamental analysis in the foreign exchange market:

Keep an economic calendar on hand that lists the indicators and when they are due to be released. Also, keep an eye on the future; often markets will move in anticipation of a certain indicator or report due to be released at a later time.

Be informed about the economic indicators that are capturing most of the market's attention at any given time. Such indicators are catalysts for the largest price and volume movements. For example, when the U.S. dollar is weak, inflation is often one of the most watched indicators.

Know the market expectations for the data, and then pay attention to whether or not the expectations are met. That is far more important than the data itself. Occasionally, there is a drastic difference between the expectations and actual results and, if there is, be aware of the possible justifications for this difference.

Don't react too quickly to the news. Oftentimes, numbers are released and then revised, and things can change quickly. Pay attention to these revisions, as they may be a useful tool for seeing the trends and reacting more accurately to future reports.

Conclusion
There are many economic indicators, and even more private reports that can be used to evaluate the fundamentals of forex. It's important to take the time to not only look at the numbers, but also understand what they mean and how they affect a nation's economy. When properly used, these indicators can be an invaluable resource for any currency trader.

Forex Trading Tips

By: Fiorenzo Fontana

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?

This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.

1. Trade pairs, not currencies

Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

2. Knowledge is Power

When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments. The main forex influencer is global news and events.

For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.

3. Unambitious trading

Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.

4. Over-cautious trading

Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.

5. Independence

If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you.

So far, so good. But your risk of losing increases exponentially if you either of these two things:

Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);

Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.

6. Tiny margins

Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits.

However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.

7. No strategy

The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.

8. Trading Off-Peak Hours

Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.

9. The only way is up/down

When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future.

But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.

10. Trade on the news

Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.

11. Exiting Trades

If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.

12. Don't trade too short-term

If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.

13. Don't be smart

The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.

14. Tops and Bottoms

There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.

15. Ignoring the technicals

Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.

16. Emotional Trading

Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.

17. Confidence

Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade.

Remember, knowledge is power.

Common Questions About Currency Trading

By Boris Schlossberg, Senior Currency Strategist, FXCM

Although forex is the largest financial market in the world, it is relatively unfamiliar terrain to retail traders. Until the popularization of internet trading a few years ago, FX was primarily the domain of large financial institutions, multinational corporations and secretive hedge funds. But times have changed, and individual investors are hungry for information on this fascinating market. Whether you are an FX novice or just need a refresher course on the basics of currency trading, read on to find the answers to the most frequently asked questions about the forex market.

How does this market differ from other markets?
Unlike the trading of stocks, futures or options, currency trading does not take place on a regulated exchange. It is not controlled by any central governing body, there are no clearing houses to guarantee the trades and there is no arbitration panel to adjudicate disputes. All members trade with each other based upon credit agreements. Essentially, business in the largest, most liquid market in the world depends on nothing more than a metaphorical handshake.

At first glance, this ad-hoc arrangement must seem bewildering to investors who are used to structured exchanges such as the NYSE or CME. (To learn more, see Getting To Know Stock Exchanges.) However, this arrangement works exceedingly well in practice: because participants in FX must both compete and cooperate with each other, self regulation provides very effective control over the market. Furthermore, reputable retail FX dealers in the United States become members of the National Futures Association (NFA), and by doing so they agree to binding arbitration in the event of any dispute. Therefore, it is critical that any retail customer who contemplates trading currencies do so only through an NFA member firm.

The FX market is different from other markets in some other key ways that are sure to raise eyebrows. Think that the EUR/USD is going to spiral downward? Feel free to short the pair at will. There is no uptick rule in FX as there is in stocks. There are also no limits on the size of your position (as there are in futures); so, in theory, you could sell $100 billion worth of currency if you had the capital to do it. If your biggest Japanese client, who also happens to golf with Toshihiko Fukui, the Governor of the Bank of Japan, told you on the golf course that BOJ is planning to raise rates at its next meeting, you could go right ahead and buy as much yen as you like. No one will ever prosecute you for insider trading should your bet pay off. There is no such thing as insider trading in FX; in fact, European economic data, such as German employment figures, are often leaked days before they are officially released.

Before we leave you with the impression that FX is the Wild West of finance, we should note that this is the most liquid and fluid market in the world. It trades 24 hours a day, from 5pm EST Sunday to 4pm EST Friday, and it rarely has any gaps in price. Its sheer size (it trades nearly US$2 trillion each day) and scope (from Asia to Europe to North America) makes the currency market the most accessible market in the world.

Where is the commission in FX?
Investors who trade stocks, futures or options typically use a broker, who acts as an agent in the transaction. The broker takes the order to an exchange and attempts to execute it as per the customer's instructions. For providing this service, the broker is paid a commission when the customer buys and sells the tradable instrument. (For further reading, see our Brokers And Online Trading tutorial.)

The FX market does not have commissions. Unlike exchange-based markets, FX is a principals-only market. FX firms are dealers, not brokers. This is a critical distinction that all investors must understand. Unlike brokers, dealers assume market risk by serving as a counterparty to the investor's trade. They do not charge commission; instead, they make their money through the bid-ask spread.

In FX, the investor cannot attempt to buy on the bid or sell at the offer like in exchange-based markets. On the other hand, once the price clears the cost of the spread, there are no additional fees or commissions. Every single penny gain is pure profit to the investor. Nevertheless, the fact that traders must always overcome the bid/ask spread makes scalping much more difficult in FX. (To learn more, see Scalping: Small Quick Profits Can Add Up.)

What is a pip?
Pip stands for "percentage in point" and is the smallest increment of trade in FX. In the FX market, prices are quoted to the fourth decimal point. For example, if a bar of soap in the drugstore was priced at $1.20, in the FX market the same bar of soap would be quoted at 1.2000. The change in that fourth decimal point is called 1 pip and is typically equal to 1/100th of 1%. Among the major currencies, the only exception to that rule is the Japanese yen. Because the Japanese yen has never been revalued since the Second World War, 1 yen is now worth approximately US$0.08; so, in the USD/JPY pair, the quotation is only taken out to two decimal points (i.e. to 1/100th of yen, as opposed to 1/1000th with other major currencies).

What are you really selling or buying in the currency market?
The short answer is "nothing". The retail FX market is purely a speculative market. No physical exchange of currencies ever takes place. All trades exist simply as computer entries and are netted out depending on market price. For dollar-denominated accounts, all profits or losses are calculated in dollars and recorded as such on the trader's account.

The primary reason the FX market exists is to facilitate the exchange of one currency into another for multinational corporations who need to trade currencies continually (for example, for payroll, payment for costs of goods and services from foreign vendors, and merger and acquisition activity). However, these day-to-day corporate needs comprise only about 20% of the market volume. Fully 80% of trades in the currency market are speculative in nature, put on by large financial institutions, multi-billion dollar hedge funds and even individuals who want to express their opinions on the economic and geopolitical events of the day.

Because currencies always trade in pairs, when a trader makes a trade he or she is always long one currency and short the other. For example, if a trader sells one standard lot (equivalent to 100,000 units) of EUR/USD, she would, in essence, have exchanged euros for dollars and would now be "short" euro and "long" dollars. To better understand this dynamic, let's use a concrete example. If you went into an electronics store and purchased a computer for $1,000, what would you be doing? You would be exchanging your dollars for a computer. You would basically be "short" $1,000 and "long" 1 computer. The store would be "long" $1,000 but now "short" 1 computer in its inventory. The exact same principle applies to the FX market, except that no physical exchange takes place. While all transactions are simply computer entries, the consequences are no less real.

Which currencies are traded?
Although some retail dealers trade exotic currencies such as the Thai baht or the Czech koruna, the majority trade the seven most liquid currency pairs in the world, which are the four majors:


EUR/USD (euro/dollar)
USD/JPY (dollar/Japanese yen)
GBP/USD (British pound/dollar)
USD/CHF (dollar/Swiss franc)
and the three commodity pairs:


AUD/USD (Australian dollar/dollar)
USD/CAD (dollar/Canadian dollar)
NZD/USD (New Zealand dollar/dollar)

These currency pairs, along with their various combinations (such as EUR/JPY, GBP/JPY and EUR/GBP) account for more than 95% of all speculative trading in FX. Given the small number of trading instruments - only 18 pairs and crosses are actively traded - the FX market is far more concentrated than the stock market.

What is carry?
Carry is the most popular trade in the currency market, practiced by both the largest hedge funds and the smallest retail speculators. The carry trade rests on the fact that every currency in the world has an interest rate attached to it. These short-term interest rates are set by the central banks of these countries: the Federal Reserve in the U.S., the Bank of Japan in Japan and the Bank of England in the U.K.

The idea behind the carry is quite straightforward. The trader goes long the currency with a high interest rate and finances that purchase with a currency with a low interest rate. In 2005, one of the best pairings was the NZD/JPY cross. The New Zealand economy, spurred by huge commodity demand from China and a hot housing market, has seen its rates rise to 7.25% and stay there (at the time of writing), while Japanese rates have remained at 0%.

A trader going long the NZD/JPY could have harvested 725 basis points in yield alone. On a 10:1 leverage basis, the carry trade in NZD/JPY could have produced a 72.5% annual return from interest rate differentials alone without any contribution from capital appreciation. Now you can understand why the carry trade is so popular! But before you rush out and buy the next high-yield pair, be aware that when the carry trade is unwound, the declines can be rapid and severe.

How to Trade E-currency

By: Timothy Rohrer

When referring to e-currency, most people immediately think of the FOREX market. The truth is there is a new form of currency trading that is sweeping across the internet and making millions of people wealthy.

What is this new wave of e-currency trading that’s hitting the internet you might ask? It’s called the e-currency exchange program. Electronic currencies such as INTgold, Netpay and E-gold are traded daily.

Let’s talk about how the e-currency exchange network can put money into your pocket. There are two ways to make money.

The first way is with a portfolio and the second is with a console.

Upon opening an e-currency account, the user will be asked to create a portfolio and fund their portfolio. This investment can be anywhere from $25 to $100,000.

I would recommend a small amount until you become familiar with e-currency trading. The portfolio is compounded daily and receives gains anywhere from .3% to .5% each day.

For example, if you funded your portfolio with a $10,000 investment, each day your portfolio would net $30 of profit. Over the course of one month a $10,000 portfolio would make $900.

With these profits you can either reinvest into your portfolio to maximize your profits, or out-exchange the money to your bank account.

The second way to make money is through what is known as a console. Having a console is like having a separate account in addition to your portfolio.

With this account you can now process transactions from one e-currency to another for other traders. Not everyone is able to own a console. In order to have a console you must be in the system for 90 days and have a portfolio value of at least $5,000.

It may seem like a lot, but even if you started out with only a few hundred dollars as your initial investment, this level can be easily obtained in just a few short months.

In order to process transactions, electronic currencies temporarily borrow funds from your console account. In return, the console holders will receive a 6% fee as profit for each transaction they process.

For example if Netpay needed to process a $2,000 out-exchange and you temporarily made your funds available for the transaction to take place, you would receive $2,120. That is $120 of profit back into your account!

People need transactions processed daily from one e-currency to another and the market just keeps growing.

There are many helpful online courses available on e-currency trading. I tried to learn e-currency trading on my own through forums, chat rooms and by reading articles on the subject matter, but was unsuccessful.

This method is extremely slow and time consuming. It took me 2 months before I finally gave in and purchased an online course. After purchasing an online course, I have managed to quadruple my initial investment in a relatively short amount of time.