All about Forex !

Friday, July 08, 2005

How To Get Online Press Releases On Your Stocks Before Others Hear About Them

It is a fact of life that press releases influence the current price
of a stock. People react emotionally and buy stocks on good press
releases, and sell stocks on bad ones, regardless of the validity of
the press release. If you can get the news first, you can be in a
favorable position to take advantage and gain financially. This
article describes how to obtain online stock press releases when they
are first announced.

One way to be the first to obtain online press releases on stocks
would be to constantly watch one or more of the financial News web
pages for a press release via Business Wire. Yahoo provides a popular
and reliable financial news web page (http://biz.yahoo.com/bw). But
manually watching web pages requires your full time attention. Unless
you are some rich tycoon who sits by a Palm Springs swimming pool
reading the financial news web pages as they update, this is probably
not going to work for you. Like most people you probably have other
things to do, such as working for a living.

A better way to accomplish the task of monitoring the financial news
web pages would be to have someone or something else do it for you,
and then notify you. For instance, you can use web page watching
software on your computer or you can subscribe to a web page watching
service on the Internet.

Running software on your computer to monitor a financial news web
page, such as Yahoo's, is easy to do and gives you complete control
over when and what you want to watch for. It can also give you faster
notification on press release discoveries. There are many programs
available on the web to do this. Easy Web Page Watcher by Patrick
DiRienzo (http://www.patdirienzo.com) is an easy-to-use low cost
program ($15) that does a very good job of monitoring Yahoo and other
financial news web pages. To use the program simply enter the
financial news web pages that you wish to monitor and the name of your
stocks. When the name of your stock appears on the web page in a press
release, your computer when notify you with an audible alarm and by
email. You can also watch for keyword phrases such as "contract
awarded" or "stock buyback" that would appear in any stock press
release. If you have full time broadband Internet access such as cable
or DSL you can leave the program running all day and night. The
program runs in the background with no disturbance to your other
computer tasks. You can set up the program to send you email alerts at
work or anywhere else.

If you do not have full time Internet access, but have email, the next
best method of obtaining press releases automatically is to subscribe
to a web page watching service. Again there are many services that do
this. WatchThatPage (http://www.watchthatpage.com) is a free web page
watching service that will alert you by email when keywords you
specify such as the names of your stocks appear in press releases on
financial news pages you specify. The disadvantage is that you do not
receive an instant audible alarm when the press release is first
noticed on the financial news web page. You have to wait for the
service to send you email before you hear about the press release.

Thursday, July 07, 2005

History of FOREX trading!

History of FOREX trading

The origin of FOREX trading traces its history to centuries ago.
Different currencies and the need to exchange them had existed since
the Babylonians. They are credited with the first use of paper notes
and receipts. Speculation hardly ever happened, and certainly the
enormous speculative activity in the market today would have been
frowned upon.

In those days, the value of goods were expressed in terms of other
goods(also called as the Barter System). The obvious limitations of
such a system encouraged establishing more generally accepted mediums
of exchange. It was important that a common base of value could be
established. In some economies, items such as teeth, feathers even
stones served this purpose, but soon various metals, in particular
gold and silver, established themselves as an accepted means of
payment as well as a reliable storage of value. Trade was carried
among people of Africa, Asia etc through this system.

Coins were initially minted from the preferred metal and in stable
political regimes, the introduction of a paper form of governmental
I.O.U. during the Middle Ages also gained acceptance. This type of
I.O.U. was introduced more successfully through force than through
persuasion and is now the basis of today's modern currencies.

Before the First World war, most Central banks supported their
currencies with convertibility to gold. However, the gold exchange
standard had its weaknesses of boom-bust patterns. As an economy
strengthened, it would import a great deal from out of the country
until it ran down its gold reserves required to support its money; as
a result, the money supply would diminish, interest rates escalate and
economic activity slowed to the point of recession. Ultimately, prices
of commodities had hit bottom, appearing attractive to other nations,
who would sprint into buying fury that injected the economy with gold
until it increased its money supply, drive down interest rates and
restore wealth into the economy.. However, for this type of gold
exchange, there was not necessarily a Centrals bank need for full
coverage of the government's currency reserves. This did not occur
very often, however when a group mindset fostered this disastrous
notion of converting back to gold in mass, panic resulted in so-called
"Run on banks " The combination of a greater supply of paper money
without the gold to cover led to devastating inflation and resulting
political instability. The Great Depression and the removal of the
gold standard in 1931 created a serious lull in FOREX market activity.
From 1931 until 1973, the FOREX market went through a series of
changes. These changes greatly affected the global economies at the
time and speculation in the FOREX markets during these times was
little.

In order to protect local national interests, increased foreign
exchange controls were introduced to prevent market forces from
punishing monetary irresponsibility.

Near the end of World War II, the Bretton Woods agreement was reached
on the initiative of the USA in July 1944. The conference held in
Bretton Woods, New Hampshire rejected John Maynard Keynes suggestion
for a new world reserve currency in favor of a system built on the US
Dollar. International institutions such as the IMF, The World Bank and
GATT were created in the same period as the emerging victors of WWII
searched for a way to avoid the destabilizing monetary crises leading
to the war. The Bretton Woods agreement resulted in a system of fixed
exchange rates that reinstated The Gold Standard partly, fixing the
USD at $35.00 per ounce of Gold and fixing the other main currencies
to the dollar, initially intended to be on a permanent basis.

The Bretton Woods system came under increasing pressure as national
economies moved in different directions during the 1960's. A number of
realignments held the system alive for a long time but eventually
Bretton Woods collapsed in the early 1970's following president
Nixon's suspension of the gold convertibility in August 1971. The
dollar was not any longer suited as the sole international currency at
a time when it was under severe pressure from increasing US budget and
trade deficits.

The last few decades have seen foreign exchange trading develop into
the world's largest global market. Restrictions on capital flows have
been removed in most countries, leaving the market forces free to
adjust foreign exchange rates according to their perceived values.

The European Economic Community introduced a new system of fixed
exchange rates in 1979, the European Monetary System. The quest
continued in Europe for currency stability with the 1991 signing of
The Maastricht treaty. This was to not only fix exchange rates but
also actually replace many of them with the Euro in 2002. London was,
and remains the principal offshore market. In the 1980s, it became the
key center in the Eurodollar market when British banks began lending
dollars as an alternative to pounds in order to maintain their leading
position in global finance.

In Asia, the lack of sustainability of fixed foreign exchange rates
has gained new relevance with the events in South East Asia in the
latter part of 1997, where currency after currency was devalued
against the US dollar, leaving other fixed exchange rates in
particular in South America also looking very vulnerable.

While commercial companies have had to face a much more volatile
currency environment in recent years, investors and financial
institutions have discovered a new playground. The FOREX exchange
market initially worked under the central banks and the governmental
institutions but later on it accommodated the various institutions, at
present it also includes the dot com booms and the world wide web. The
size of the FOREX market now dwarfs any other investment market. The
foreign exchange market is the largest financial market in the world.
Approximately 1.9 trillion dollars are traded daily in the foreign
exchange market. It is estimated that more than USD 1,200 Billion are
traded every day. It can be said easily that FOREX market is a
lucrative opportunity for the modern day savvy investor.