Forex Prices – How and Why They Really Move

Do you know how and why forex prices really move? Most traders don’t and they lose. Here we are going to give you a simple equation that will give you a deeper understanding of how and why forex prices move, which could lead you to forex trading success.

Here is the equation:

Fundamentals (supply and demand factors) + (Human Perception of them) = Price.

Now that is nice and simple – but its simplicity is deceptive and if you think about it, you can conclude the following:

– You cannot simply trade the news and investment facts

The reason for this is – the fundamentals are discounted straight away by the market and its how investors perceive them that’s important, NOT the facts themselves.

Facts are instantly discounted so you can never trade them – you’re playing catch up and further more we all see them differently, so you cannot hope to predict where they go. Prices do not move to the fundamentals and this has been proven time and time again as, markets collapse when there most bullish and rally when there most bearish.

So forget trying to trade the news!

– To Win You Must Study Human Psychology

Its not facts that makes a market move, its traders like you me and millions of others and our perception of the facts.

Now were all different – but we all are to a degree governed by greed and fear and as human nature is constant, this shows up in repetitive price patterns that can be traded for profit – if we look at a forex chart.

Forex charts are the best way to trade forex because they simply assume the fundamentals show up in the price straight away (so there is no need to study them), you only need to study their effect and that can be seen on a chart. You get to see the fundamentals and more importantly, how the investors perceive them and can trade the reality of price for profit.

Trading the Reality

Forex charts allow you to simply trade the truth and follow price trends without the need to look at news stories or listen to opinions.

You can stand back non-emotionally and simply trade market action as it unfolds. A forex chartist doesn’t care how or why prices move, he just wants to lock into trends and make money when they do – it’s that simple.

Getting a System For Profit

If you want to make money in forex trading you can, with a simple robust forex trend following strategy. While many traders think that developing a forex trading strategy is difficult its not and we will show you how in the second article of this series.

Business Loans From Family & Friends – How to Ask, Make it Legal, & Make it Work

The first thing I noticed about “Business Loans From Family & Friends: How to Ask, Make It Legal, & Make It Work” by Asheesh Advani was that the book had a foreword by Richard Branson. Having admired the founder and chairman of the Virgin Group, I figured if he’d endorsed it, I’d take a look. I was not disappointed.

The book covers a topic that you don’t see that often. Sure, there are books on entrepreneurship out there that suggest a source of funds may be family and friends, but this book delves into the subject matter at a much greater level and provides a lot of practical advice on the topic.

The book is divided into eleven chapters with the following titles:

Why Raising Money From Family and Friends Is For You and Yours

Checking Out All Your Financing Options

Basic Legal and Tax Issues of Business Loans From Family and Friends

Deciding Who to Ask for Money

Preparing Your Business Plan and Your Fundraising Request

Deciding Interest Rate, Repayment Schedule, and Other Loan Terms

Drafting a Loan Request Letter

Making the Kitchen Table Pitch

Preparing a Promissory Note, Security Agreement, and Other Loan Documents

How to Be Your Own Investor Relations Department

Handling Gifts From Family and Friends

For anyone who is looking for small business financing, this book may have just the information you need. There is a lot of useful information here, and one of the best things I believe is that it gets the reader thinking about costs and sources of money for their business venture.

The book also comes with a CD ROM that contains a number of forms and worksheets. These are also found in Appendix B. Sample promissory notes, security agreements, and letters are a few of the documents included.

Nolo does an excellent job at making legal information accessible to everyone, however, depending on your situation, you may still want to seek out legal advice regarding any loan agreement you enter. However, this book is a great start and a very good resource for anyone who is looking to finance a small business and needs to raise money from family or friends. Very good resource for small business financing!

Credit Repair – The Truth And The Myth

Credit Repair – Fact or fiction?

In this world of television and internet it’s very difficult at times to decipher truth from fiction. Also, due to the speed at which information travels word gets around at an astonishing rate (whether good or bad). One of those subjects that have gotten negative press lately has been the credit repair industry.

You have heard things like, “Start a new credit file today!”, or “Improve your FICO by 300 points!”. But, you have also heard many negative things. Some of them related to those two sayings above. First, I would like to separate fact from fiction.


You can repair your own credit. You can also hire someone to help you repair your credit. But let me explain the difference between the two. First, hiring a specialist could cost you hundreds if not thousands of dollars with “no guarantee” that anything will be fixed. Also, there have been many so-called specialist giving out illegal repair information!

The truth is that many times you will be asked to dispute everything on your credit file as erroneous. Now, 80% of information reported to the three major credit bureaus (Trans Union, Experian, & Equifax) is erroneous information. But, according to the FTC this is fraud, which is against the law.

The truth is you do not need a credit repair company or any specialist within an industry (legal or otherwise) to help you repair your own credit. You have within your hand the ability to self repair your credit. With only a small time investment you can repair your own credit.

Repair Myth

The myth is simple, that you cannot repair your own credit. This has been a myth perpetuated by unethical individuals who have marred the credit repair industry. Are all credit repair specialist like this? No, they are not. Some are very professional, courteous and honest. They do not ask for funds before the repair has taken place and will assist you with your credit repair needs.

However, you can repair your own credit. There have been recorded instances of credit repair companies telling their clients not to go directly to the credit bureaus (when it is your right to do this). It is also your right (according to the FTC) to receive a free annual credit report (of all three major bureaus).

As you can see, there are excellent resources available (directly from the Federal Trade Commission) to assist you in your credit repair needs.

Credit Truth

In conclusion, you have the right to repair your own credit. Repair is not fiction or myth, but truth that can change your life for the better.

Rise in Inflation to Affect Student Loan Rates

The unexpected rise in Retail Price Index (RPI) could leave as many as four million graduates and students facing a rise in interest rates. Student loans are related directly to the RPI measure of inflation for each year. According to the latest figures, the RPI went up by 4.4% in March this year implying that student loans are set to surge.

Needless to say that this would come as a shock to the students given that they are currently paying negative or no interest because the RPI had fallen to a 50-year low of -0.4% last March. The rise means that the student loans would continue to grow even when they begin to make repayment and that the interest would be higher than their repayments.

For over 400,000 graduates who are repaying loans that they took before 1998, the interest rate is entirely based on the RPI. The rise in RPI means that they would need to start repaying 4.4% on their outstanding loans. For the remaining 3.3 million people who have taken out student loans since 1998, the interest rate is either based on the RPI or the Bank of England base rate plus 1%, depending on which is lower.

The base rate has been 0.5% for the past 13 months, and in case it stays the same, students will now have to pay a new rate of 1.5% interest from September. Students currently at university or college can take out loans up to a maximum of £10,153 a year, implying some will be graduating with debts of more than £30,000. For many students this could mean that their debt would continue to rise even when they start earning.

All this may spell bad news for the students but it is important they understand that they should seek debt advice at the earliest to avoid a bad debt situation right at the onset of their careers. A careful financial planning on their part can ensure that the situation does not go out of control. There are many debt management companies in the UK providing free, impartial and non-judgmental debt solutions on managing finances and loans. It is in the best interest of the students to approach the financial experts and talk to them in confidence about their debts and seek their opinion in dealing with them.