Friday, May 15, 2009

Buliding a Forex Trading Strategies


Your selected Forex traffic devise will expostulate a traffic decisions which we have in a Forex traffic system. If we have been brand new or a beginner to Forex traffic systems, we will need to rise an befitting devise which will develop over time. The following stairs outline a proceed to office building a Forex traffic devise which might be blending as well as tailored to your needs. Develop a Forex Trading Plan - A Forex traffic devise should never be deliberate comprehensive or complete. Part of carrying a Forex traffic devise is incorporating a devise for creation adjustments to a strategy. You will need to be means to have adjustments but utterly revamping your strategy. Though we might cruise your traffic devise to be some-more technical than elemental or clamp versa, we should take value of any accessible marketplace interpretation in creation your traffic decisions in any case of which fortify it falls under.

Corporate Governance

The Code of Corporate Governance was incorporated in the Listing Regulations of the Exchange in year 2002. In true sense, it has no statutory force or penalty provisions. Its implementation through the Listing Regulations requires companies to disclose in their annual reports whether or not they are complying with its provisions and if they are not, to explain why.
The main purpose / objectives of Code of Corporate Governance is to:
a. Stimulate the performance of companies
b. Limit insider’s abuse of power
c. Monitor manager behavior to ensure corporate accountability and protection of interes of investors and society.

The Exchange has played a proactive role in safeguarding small shareholders' interest and has strengthened its monitoring and enforcement capability to monitor compliance with the Code of Corporate Governance by the listed companies.Being a front line regulator, the Exchange initiated action against such companies which do not comply with the requirements of Listing Regulations, particularly Regulation No. 32, which includes:

1. failure to declare dividend or bonus for the last five years;
2. failure to hold its annual general meeting for a continuous period of three years;
3. has gone into liquidation either voluntarily or under court order;
4. failed to pay the annual listing fees of the Exchange for a period of 2 years;
5. failed to comply with any of the requirements under Listing Regulations.
6. failed to join CDS after its securities have been declared eligible security by the CDC.

The Exchange after adopting the due process has placed a number of companies on the “Defaulters’ Counter”, whose names are quoted separately through the Daily Quotation of the Exchange along with nature of default(s) mentioned against each company.
The purpose of placing the companies on separate counter namely; “Defaulters’ Counter” is to create awareness amongst the shareholders / investors that the company is in default(s) of the Listing Regulations.
In order to encourage good corporate governance and appreciate outstanding performance of the companies, the Exchange has a practice to give away the awards to top companies each year.
The criteria for selection of top companies has been regularly reviewed to ensure that only such companies are rewarded that not only pay good returns to their shareholders but also comply with the Listing Regulations, particularly the Code of Corporate Governance. Amendments / additions in the Criteria for selection of Top Companies in relation with good Corporate Governance point of view including Corporate Social Responsibility have been included.

The Currency Pairs Traded

The Currency Pairs Traded

We understand the importance of market diversification which is why we offer 3 unique profitable trading systems, with each system trading 10 of the most popular currency pairs. By spreading ourselves across multiple pairs, the system as a whole is not as adversely affected when one or two of the pairs move against the forecast in a given week.

If a few of the pairs don't do well in a given week, the others usually make up for it. This diversification is one of the reasons we have been consistently profitable month after month.

Weekly trades are issued for the following 10 pairs:

EUR/USD AUD/USD
GBP/USD NZD/USD
USD/JPY EUR/CHF
USDCHF EUR/JPY
USD/CAD GBP/JPY

ITS NOT THE SYSTEM

After more than 2 years of trading, I can tell you a story about forex system. Forex system is a way to trade to have higher chances of profit. Unfortunately not all forex system works. This is because its not the system that is not working. It is you.


What if I tell you that I have a system that consist of Moving Average only. The system can make profit and will minimize you loses or even give you a chance to break even during hard times.

You would be thirll to test it out only to find out that in the end you are losing money and you say the system is crap. The truth is if one person is making money using the exact same system yet you are losing money. So where do you think the fault is? Is it with the system or is it with yourself?

You can never gain profit in Forex until you figure out what is wrong with you. Most of the time when you are losing money you would blame it on the market, news, system etc but never on yourself. Until you figure out what you did wrong, any system no matter how good will fail in your hands. After you realize what you did wrong, then you can make money, seriously.

When you know what not to do, you can trade without any indicator. I myself is trading using only MA now. Took me a while to understand but once you see it, you no longer depending on any indicator. It is your judgement that counts.

I never know what I would learn the further I go in this world or Forex. Right now I am starting to understand why some traders trade without any indicator. The best indicator is in your brain. You just need to develope it. It will take some time. No hurry.

How to Find and Choose a Safe Forex Broker


he forex market has really taken off within the last ten years. Every year, the market grows more and more, and competition has become more rigorous. At the same time, the opportunities to profit have never been greater.
This means that the requirements for forex brokers to stay in business are become more and more strict. This is all due to the fact that there are many scammers out there, waiting for a chance to take advantage of new forex traders.
At the same time, many hard working brokers are at a risk to go out of business because they can't keep up with the latest regulations. A safe forex broker these days isn't simply someone whom traders can trust, but also someone that isn't at risk of going out of business

How Companies Raise Money

Some 30 companies have decided to list their shares on the Karachi Stock Exchange. But why? What do they get out of it? There are, after all, tremendous costs involved in gaining a stock market listing and maintaining it.

Quite simply, listing on the stock market is all about raising money to enable your business to expand. Imagine you have a brilliant idea for a new company but you don’t have the money necessary to buy equipment such as computers and office furniture. You might initially think about raising some money from family and friends and giving them a stake in your business in return. This is, in fact, the way many companies start life. Shares issued by companies not listed on the stock exchange are often referred to as ‘unquoted’.

But if you need money on a large scale or you are a small business looking to expand, you might need more than your close acquaintances can provide. At this stage some people look to borrow money from venture capitalists or the bank. Others decide to try and raise money from a wider group of investors through a stock market listing. These shares are known as ‘quoted’ or ‘listed’ on the stock exchange.

It is rare, however, that companies approach the market just once for money. As you flick through the financial pages of your newspaper you will often read about rights issues, share splits and share buy backs. These are all terms used to describe different ways companies raise money from investors and, pay it back.

IPOs/new issues
Bond issues
Rights issues
Stock splits and scrip issues
Share buybacks

Trading and Settlement

The stock exchanges have introduced a computerized trading system to provide a fair, transparent, efficient and cost effective market mechanism to facilitate the investors.


The trading system comprises of four distinct segments, which are:

i) T+2 Settlement System

In the T+2 settlement system, purchase and sale of securities is netted and the balance is settled on the second day following the day of trade.

Benefits of T+2 Settlement System
It reduces the time between execution and settlement of trades, which in turn reduces the market risk. It reduces settlement risk, as the settlement cycle is shorter.

ii) Provisionally Listed Counters
The shares of companies, which make a minimum public offering of Rs.100 million, are traded on this segment from the date of publication of offering documents. When the company completes the process of dispatch/credit of allotted shares to subscribers, through CDC it is officially listed and placed on the T+2 counter. Trading on the provisionally listed counter then comes to an end and all the outstanding transactions are transferred to the T+2counter with effect from the date of official listing.

iii) Spot/T+1 Transactions
Spot transactions imply delivery upon payment. Normally in spot transactions the trade is settled within 24 hours.

iv) Futures Contract
A Futures contract involves purchase and sale of a financial or tangible asset at some future date, at a price fixed today