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Forex Education

The Power & Simplicity of Supply & Demand
The short term bounce continues, rallying price near short term supply levels. Will Dallas Fed President Fisher’s comments have a lasting negative effect on the markets? Or just a short term sell-off? Sam Seiden joins the show and shares some of the highlights of his recent presentations at the Las Vegas Forex & Futures with listeners, and emphasizes the importance of how commodities and currencies impact each other. Click on the image below to download the mp3 file:
How to Correctly Select a Cash Secured Put
This article is aimed at answering the question of how to properly select a candidate for a cash secured put. We are going to first look at two different underlying issues and then we will highlight the reasons why one is better than the other. This article builds on the assumption that the readers are already familiar with the basic concepts behind using cash secured puts. Part 1 Cash Secured Put on AMZN @ 239.30 Starting with the chart above, on Friday 09-16-2011, AMZN closed at 239.30 and
It’s All Greek to Me
It seems almost on a daily basis there are news flashes having to do with the state of affairs in Greece. Will they default on the mountain of debt that’s caused them to implement severe austerity measures? And if they indeed cannot make their loan payments, what are the ramifications for the global economy? Will the ECB (European Central Bank), or the Germans, bail them out much like the US Central Bank did with our large financial institutions back in 2008? In addition to Greece, the
New Demographic and Economic Trends Affecting Housing, Part 2
In this part of our series on New Demographic and Economic Trends, we’ll look at the “Younger Baby Boomers” and start to examine the complex group of “Echo Boomers/Generation X.” The Younger Baby Boomers are defined as being in their late forties and early fifties. The Younger Baby Boomers are facing several issues and challenges that are very different from their parents: They might have had dreams of early retirement, however, it may be decades before they can consider retiring Adult
Bleeding Out the System
As much as I like to write about all aspects of Forex trading in my articles, my favorite kind of lesson topics are when they deal with actual events that have happened recently in the market. Typically, the day-to-day actions of the markets present their own lesson in a unique way and we can learn much from these important occasions. This week I would like to take a look back at the FOMC Statement from last week on September 21. These news days typically cause plenty of commotion in the
Applying Newton’s Law to Trading
To paraphrase Newton’s first law of motion, “An object in motion will stay in motion unless acted upon by an outside force.” We see this all the time in nature (try jumping and gravity pulls you down), but did you know that it can apply to the markets as well? Price in motion is called a trend. As traders, we identify the trend as the dominant direction of price movement. The faster movements in the same direction of the trend are known as the impulses. The opposite movements against the trend
What it Takes to Win
Okay, I’m going to go out on a limb here and make an assumption about you…you want to win; right? Yes, I thought so, but what are you doing to ensure that you in fact do, well, win? So many traders say that they want to win, but so few are willing to invest the effort by either finding out what is required, or once they know, then following through. And, before going any further, we must define what it means to be a winning trader because a large number of you are laboring under a false
Beware the Breakout
A few weeks ago, I discussed how it is better to wait for confirmation before jumping into a breakout of price as many breakouts tend to fail. (See Patience Pays) I am currently teaching in Bangalore and happened to watch CNBC TV18 before class started. Once again, the so-called experts were recommending for traders to buy stocks that were breaking out on high volume. This is extremely dangerous and should be avoided. Prices will only rise when the willing buyers outnumber and overwhelm the
Is Trading Gambling?
Not long ago, I was spending time with a friend of mine who I have been close with since we were children. For years, anytime my career comes up in conversation, he insists that trading is nothing more than gambling. I actually get this question from others at trading events as well. It is a very hard question for me to answer because I think the whole question is wrong. Whether you are a trader, gambler in a casino, Pepsi buying advertising space on a network, retail store owner, casino, car