Category Archives: General Posts

See all posts talking about General Posts, from the Forex Figures – the DailyForex blog

Math Skills are Needed to Move Students Ahead

The average youth today has given up on understanding the mechanics of mathematics. It just doesn’t talk to them. Why is that? Their aversion to the subject may start as early as the second or third grades when the multiplication tables are first introduced and studying them takes just too much effort. And this is followed soon after by division and geometry, subjects that don’t seem to have any relevance to most teens. Continue reading

FXTM Announces its New FXTM Web Trader

FX Retail Forex broker time (FXTM) has launched the FXTM Web Trader, a new browser-based trading platform that is suitable for traders of all levels.

The FXTM Web Trader can be used on any device or personal computer, making it easy to operate from anywhere with an internet connection, mobile phone or Tablet. With the new web-based platform, traders can quickly and easily access completely customized graphics that are multilingual and have a simple one-click execution.

The FXTM Web Trader is available for MT4 accounts. The new application is part of the rapid expansion of the company and offers even more features than then it has to date such as the “trading windows” key that opens unexpectedly when there is important market news making it beneficial for traders who want to take advantage of market events before placing their trades.

“At FXTM, we are constantly improving our products and challenging technical limitations so that our clients can maximize the value they get from their most precious commodity, which is of course time”, said Head of Dealing of Forex Time, Charis Mountis.

The FXTM Web Trader is flexible and mobile and investors are in total control of the entire trading process especially with unexpected market volatility as traders can access fully-customized charts quickly and easily.

FXTM is an international Forex broker headquartered in London, UK with offices in many other parts of the world.

Why Retail Traders Fail

70% of all retail Forex traders lose money. The good news is that by sticking to a few rules, you can put yourself in the 30%, and then work on increasing your profitability. The reasons why retail Forex traders lose money, and what they can do to become more profitable, are well known by the professional Forex community and are detailed in the infographic below.

 DFX Infographic

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Oil Prices are Dropping; Lower Prices at the Pump

Summer is over, schools have reopened and summer activity is winding down. Along with this emotional and physical slowdown, we are finding a pleasant surprise at the gas pump. For those who have not been paying attention, the price for a gallon of gasoline has been steadily dropping and analysts are predicting that prices will go even lower at least until the end of 2014.

The national average for unleaded hit a summer peak of $3.75 in July. Since then, it has been dropping steadily and some analysts are predicting that it may dip below $3.00 before next year. If it goes that low, consumers will see a discount of about 76 cents per gallon from the July figure.

For every penny gasoline prices fall, $1 billion in cash flow is free to go elsewhere in the economy and that’s a lot of loose change. Combined with a decline in driving which usually comes with the onset of winter, lower gasoline prices could help American drivers save $13.1 billion in the fourth quarter, money that could go to other areas of the GDP.

Crude Fluctuations

One of the primary reasons why gas prices rise or fall is the fluctuation in the price of crude oil. U.S. refineries buy several million barrels of oil every day to supply its economy, so even small price changes make a big difference. When crude oil prices go up or down, gas prices tend to follow. And right now, oil prices are on the decline.

In fact, oil prices have dropped to around $95 a barrel last week despite unrest in various regions overseas which doesn’t seem to have had much bearing on oil-producing and exporting areas. Prices are falling even in light of what is taking place in Iraq. For crude prices to feel an impact, a disruption of oil shipments or oil production would have to take place and analysts do not foresee this happening in the very near future.

Events across the globe continue to contribute to the fluctuation in gas prices. Concerns regarding the Middle East have eased somewhat and a U.S. military strike in Syria also appears to be less of a possibility, now that the international community has moved in to eliminate that country’s stockpile of poison gas weapons. In addition, oil is again flowing through a critical Libyan pipeline that was shut down earlier this year by striking militias.

In fact, for the first time in several years, oil is traversing the globe on tankers looking for markets. This surplus of oil can’t stay afloat for much longer. According to Eric Lee, a Citigroup energy analyst, “There’s as much as 30 million barrels sitting on floating storage, and it’s got to go somewhere at some point.” Lee’s long-term forecast for Brent is $70 to $90 per barrel, and it seems to have started this descent.

Investor and Producer Woes

What’s good for the consumer, however, is not always beneficial for the investor. Equity holders must stay on the ball if they are to continue to reap profits from oil stocks. The outlook for oil is bearish with the market more negatively tilted toward Brent than West Texas Intermediate. Brent crude, the international benchmark, sunk below $99 per barrel Thursday, while WTI, representing U.S. light sweet crude, edged higher to $92.83, after touching a low near $90. WTI could drop to $85 per barrel or even lower by year’s end. At $85 for crude, gasoline could hit $3.

The lower price forecast may also prove worrisome to gasoline producers. The strengthening of the U.S. dollar combined with weaker growth in Europe and other areas of the globe may prove detrimental for gas producers who worry that they will have to cut back on production in order to keep prices steady.

Strangely enough, the biggest factor easing worries over global oil supply is the increasing production of U.S. crude coupled with very moderate demand south of the border.used water slides

Bank of America estimates that the U.S. has overtaken Russia and Saudi Arabia to become the world’s largest producer of oil and gas, primarily because of oil from shale. U.S. total crude oil production, which averaged 7.4 million barrels per day in 2013, is expected to average 8.5 million barrels per day in 2014 and 9.3 million bbl/d in 2015. As a result, the need for imported oil will fall from 60 per cent of total U.S. oil use in 2005 to 22 per cent in 2015.

All this is may be little interest to the average automobile owner whose main concern is how to find the lowest price at the gas pump. For the next few months at least, we should be able to look forward to lower prices so let’s take advantage of this windfall and keep filling up that tank.

 

 

DailyForex Launches New Mobile Forex App

The DailyFForex News and analysisorex team is excited about the launch of the new Daily Forex mobile application. The previous application, which went live back in March 2012, has been very useful, and the new mobile app is designed to be more efficient and to fix some of the bugs that were present in the original app. The new app offers everything the old one did as well as some new features.

The revised application continues to present financial news reports and has options for viewing both fundamental and technical analysis. There is a large selection of informational articles geared to both beginner and advanced traders. For those who have trouble reading the small print, clicking on an image inside an article will open the commentary in full screen.

Forex News and Analysis Android App - version 1.03

Forex News and Analysis Android App – version 1.03

Access to several other pages on the site is quick and responsive and free alerts from successful traders are only a click away. The mobile application can be customized according to a trader’s needs so he or she can receive market updates and news as frequently as desired. All in all, the new DailyForex app is functional and simple to use. It is still free of charge and is easily downloaded from the DailyForex website or from the Google Marketplace.

Download this mobile Forex app now for free!

 

Why Bitcoin is Becoming Safer than FIAT Currencies

bitcoin logo

We have now entered a Brave New World of Forex Trading following the disclosure of a US Surveillance program (“PRISM”), central bank manipulation of currencies (“currency wars”) and random acts of regulators (which are not mutually exclusive). With the increasing politicization of the financial markets, Forex traders are now becoming more exposed to market changes from geo-political rather than economic risk factors. As we know markets subjected to political rather than economic risk factors create unpredictable sharp short term volatility risk and cross country correlation risk which is almost impossible to risk manage and therefore costly to FOREX traders.

The key driver for ongoing FIAT currency intervention is the ongoing battle between emerging and emerged economies trying to out-compete each other for export markets.  Some of the competitors in these currency wars are also seeking economic competitive advantage against their competitors via access to information from state owned cyber espionage programs. The ongoing use of illegally obtained information from state sponsored surveillance programs which would likely be used in currency market intervention would further undermine the properly functioning and confidence in FIAT markets.

 

USD-JPY bitcoin blog

Politically motivated regulation or lack of regulation remains another key area of risk for FOREX Traders, the LIBOR market manipulation being a prime example. Not only was this a sustained period of manipulation of the trillion dollar fixed interest rate market, under the interest rate parity principle it also represent a sustained per manipulation of the FIAT currency markets by major institutions who have collectively received nothing more than a slap on the wrist (N.B. it would have been speculators with uncovered positions like non-FI FOREX Traders who were most likely to have been negatively affected by LIBOR manipulation). This failure of financial regulators, particularly in the UK and US to supervise market abuses by major financial institutions has set a dangerous precedent for the future with Investment Banks likely to be manipulating markets as before in different forms.

While large FIs have been largely ignored such as HSBC (the largest money launderer in US history), a US regulator FINCEN targeted the financial behemoth Liberty Reserve whose major crime was not that it laundered proceeds from crime but that it may have supported Bitcoin. It must be noted that most of Liberty Reserve customers were just normal consumers, some of which were Banks. So while the same regulators completed shut down Liberty Reserve, advising the media before any trial or other form of judicial process that they were supporters of child pornography and money laundering, HSBC are still trading and none of its staff were prosecuted.

Keen market observers will also have noticed another regulator, the Bank of England quietly jettisoning Paul Tucker who had that famous phone call with Bob Diamond. Despite overseeing and being acknowledged during Parliamentary questioning of Bob Diamond to have supported LIBOR manipulation (now recognized as the largest financial crime ever committed) he was allowed to resign with a pension pot of $8 million.

 

Photo Credits: www.telegraph.co.uk

Photo Credits: www.telegraph.co.uk

Bringing these strands together we have a pretty dark picture of the future of the world of FIAT FOREX trading, where financial economics play second fiddle to state manipulation of prices by governments. The situation over the next few years will only worsen since we are currently at the middle (high point) of the current credit cycle which means that that the markets will start to experience cross sector correlation risk and a credit squeeze (BIS still has not been able to work out how we properly risk management credit squeezes over a credit cycle despite it being bloody obvious:- ensure the CVA desk includes the credit cycle when calculating the credit charges or mark to market the CVA portfolios). So we can look forward to more FIAT currency manipulation as the currency war combatants who depend on each other experiences future credit squeezes.

Market Stress and the Credit Cycle

All this interference in FIAT currencies reinforces the need for a currency that is beyond political control by a single geo-political entity and for it to provide security from state interference under the pretext of security. Bitcoins can be still be manipulated, for instance if a government like the US tries to undermine its growth by targeting the FIAT entry points to the market, but only in the short term and not permanently.

MTgox JPY

As the Bitcoin valuation increases and its integration with normal economy then it will become the most geo politically neutral currency in the world. The lack of political interference in Bitcoin and other crypto-currencies will provide enormous advantages to users and traders alike over FIAT currencies. In particular the need NOT TO REGULATE will be a key one since all financial regulation is pretty much redundant since it is almost always retrospective, rarely applied in the right place and the right time and never proportionate. Bitcoin or another crypto-currency could with some minor enhancements support the self-regulation, politically neutral and market driven currency in a way FIAT currencies could not.