Interest Rates and The Macro Trader

By George Kovner

Trading any and everything macro traders look for asset classes that have sufficient liquidity and then trade them when they can find a great risk to reward opportunity. They will trade stocks, bonds, currencies, and commodities when they think that they have an edge.

One of the macro traders favorite asset classes are bonds. Also known as fixed income there has been a lot of research that shows that macro traders do best when interest rate trends change direction. Whether rates are going up or down macro traders outperform as long as there is an upward or downward trend.

Interest rates to go up one month, down one month, and then back up the next month. No, instead they tend to move in relatively smooth trends with the very rare blip where a central bank quickly reverses course.

Worldwide central banks are trying to manage entire economies. In so doing they cant turn on a dime and instead are forced to guide the huge cruise ship in a smooth manner. Instead of changing their minds every meeting they instead will raise three, four, even ten times in a row before pausing for a while and then typically reversing course and easing rates several times in a row. It takes a while to change the growth of a nation and this time is where macro traders gain a significant part of their edge.

By watching the moves of central banks and the economy traders can better forecast what is likely to happen. By not trying to pick the exact tops and bottoms macro traders can more safely generate their returns. Sometimes the central bank will only lower rates a few times before embarking on a new tightening cycle but typically these trends lasts months and months if not years and years which helps to generate even higher returns.

These opportunities are available in several markets since interest rates, also known as the cost of money, effect all asset classes. You can find abnormal profits in stocks, bonds, commodities, and currencies depending on what is happening with interest rates.

One of the classic trades is to go long zero coupon Treasury bonds when rates are to be cut and to short them when rates are headed back up. By doing this a macro trader can earn substantial profits and if they use leverage they can make even more. While there are several potential risks involved in the trade the primary one, especially in a easing cycle, is simply that of interest rates.

Global macro traders are the kings of interest rate trends and profiting from them. If you want to generate higher returns with less volatility then it pays to track rate trends and position yourself accordingly. One other bonus is that in this electronic age central banks are becoming more and more transparent, making our jobs all a lot easier. - 23221

About the Author:

If you need actionable trading ideas then check out The Macro Trader It is a weekly global macro investing advisory publication with frequent intra-week updates for time-critical analysis and actionable trading ideas.

Choosing A Builder In Costa Rica

By Randy Berg

Today, there are plenty of good options available for investors who have made up their mind for purchasing properties across Costa Rica. Most of these properties are low priced which are economical that suits different budget ranges that makes it affordable for all kinds of buyers. However, for those who want to make investment in properties, the most important factor is choosing a builder in Costa Rica, who can help in searching the best kind of properties that meets high quality standards. There are lot of builders who offer real estate properties in Costa Rica but one needs to look for reputed ones, who can provide them good value and after sales service.

It is necessary to have realistic expectations while purchasing a house of your choice and they must be practical to suit the needs of modern day living. People have different preferences while buying properties, which includes either compact homes suitable for a small family. Others, who have large sized families, may prefer to opt for large and spacious homes for providing separate rooms for all the family members. Thus keeping your needs and requirement in mind, you can invest in suitable homes that provide maximum comfort and convenience. Choosing a builder in Costa Rica can help you in fulfilling all your dreams of buying the best possible homes in your chosen locality.

One has to be prepared with the basic groundwork while choosing a builder in Costa Rica with good amount of research for investing in the best property deals. You may be able to find relevant listings of builders in the local newspapers or through websites, which contain detailed information on well-known builders. Most of the buyers like to work with credible builders who can provide them with good quality service and high level of satisfaction by purchase of such real estate properties. It pays to make a visit to the building premises to get first hand information from the direct customers regarding the builder and seek their views and suggestions.

If you want to fulfill your dreams of finding the best home, then choosing a builder in Costa Rica who has good market reputation is very important. For this purpose, you can verify their credentials to find out, if they are members of professional bodies such as builder's association or have required ISO certification. You can also visit the builder's office and also ask for customer references to seek their views and opinions and gather their inputs on the builder.

Before choosing a builder in Costa Rica, you may need to have a discussion with several builders to know what they can offer and finalize on the best deals while purchasing a property. There are lot of essential details, which one needs to go through while investing in properties by verifying the credentials of the builder to eliminate any chances of fraud in such dealings. You may also need to find out the mode of payment, which is acceptable by the builders and the flexibility offered for making loan repayments during the process of purchasing properties.

In case you are not aware of the legal rules and regulations, then it is in your best interest to seek the help of a professional lawyer. There may be many terms and conditions that you may not understand well while signing any agreement. Hence, it is necessary to get advice from your lawyer before signing any contractual agreements. Choosing a builder in Costa Rica is easy, if you can put in a little effort and exercise patience to find the most reliable companies that can offer you good service.

If you are choosing a builder in Costa Rica to invest in properties, then it is important to hire people who show good professional commitment and provide high quality service. Buying a home is a big decision as it involves careful planning of all the resources and a reliable builder can prove to be valuable in helping you in finding a perfect home across Costa Rica. - 23221

About the Author:

Get more information on Costa Rica Real Estate. Interact with us through our forum.

Different Types Of Stop Loss Orders

By Ahmad Hassam

Managing risk and using systems that helps evaluate price changes is critical if a trader is to maintain a degree of profitability over time. You should understand how to select stop orders to limit your potential losses and how to let profits ride.

The descriptions of the types of stops and the pros and cons of each should help you make the right decisions for the different market conditions. Capturing as much profit as possible from winning trades should be your utmost goal. Managing risk should be your number one job.

You should know the various types of stop loss orders and where and when to place them. Predetermined stop loss orders help you conquer your emotions. Stops should be part of the trading system and included in your trading rules.

Stop orders can be placed close to the entry level when volatility is low. However, when the volatility is high, stop orders should be placed further from the entry level. Set a stop objective. Weigh the risk/reward ratio before entering each trade.

When entering a trade make sure you know where and why to put the stop order. Initially you will form an opinion based on your gut feelings that is substantiated by a trade signal.

News releases create price spikes that may make an adverse move against your position. However, you will undoubtedly get caught in the news driven price shock events. It makes the markets highly unpredictable in the short run.

Stop orders can also be placed to enter positions. Stop orders that you place online in case the market trades at a certain price. The order will be triggered when that price level is reached and become a market order to be filled in by the next best price available. Stop orders are placed to protect against losses.

Sell stops are placed below the current market price. Buy stops are placed above the current market price. Protective stops are used to offset a position and to protect against losses and against accrued profits.

Stops can be placed on a dollar amount per position. If you want to risk only $250 per $100,000 standard lot position then your stop loss will be placed 25 pips from your entry point. You can set a daily dollar amount on the loss limit.

Traders use 2-5% of the overall account size as their stop loss. Suppose your trading account size is $10,000. You can also use a certain percent of your overall account size as your stop loss. This comes out to be $200-$500.

Many traders tend to turn winners into losers as they get in the let it ride mindset. The trailing stop reduces the chance to let trades ride. Swing traders can use the automatic trailing stop. This makes the decision making process fully automated. - 23221

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and forex. Develop your own Forex Trading System. Learn Forex Trading .

Learn Forex Online

By Bart Icles

Success in forex trading depends on many different factors. However, if we take a closer look at these various factors, they will all seem to come from one very significant dynamic - learning forex. It is very much true that if you are unable to learn forex tips and basics, you will end up failing in your forex career and be among the majority of losers in the currency market.

Many beginners fail to realize the importance of learning forex. A lot of novice traders make the mistake of taking basic forex education for granted that they often find themselves overwhelmed with all the different information and conditions that they encounter during actual trading. To learn forex gives you a better understanding of the different methods used in currency trading, which in turn enables you to have more confidence in the kind of method that you will choose to use.

Traders who are new to the forex market would often learn forex online. They tend to buy or purchase a certain method from a group or someone who claims to be a seasoned trader even without a clear understanding of the logic behind that particular trading method or system. When they do not understand the logic where that system or method is truly based upon, they would often fail to follow the strategies plotted out by that method - especially when losing a trade appears to be inescapable. In a state of panic, these newbie traders would take the notion of throwing in the towel. The truth is you will need to give yourself a certain length of time to learn and follow a method or system, which will involve periods of losing trades, before you can fully understand the dynamics of that method.

However, this does not mean that you cannot learn forex online. No one is stopping you from getting tips from online forex groups and seasoned traders. What is important is that you are able to give yourself enough time to learn more about the basics, tips, and different methods used in trading so you can gain the confidence needed in choosing a system that you will later on use in actual trading. One thing you must remember in buying a forex trading system is that you must take a look at its actual track record so you can have a way of checking if that method indeed works. You must also keep in mind that different forex trading methods do not work in the same way for everybody. So it is always to your advantage if you have a good understanding of the rationale behind a particular trading system or method.

To learn forex online can be difficult and time consuming than having someone beside you who can walk you through the basics. However, learning forex online can be the most convenient way for you to gain more knowledge about this unpredictable market. Remember that it is not just the success of other traders that you have to pay attention to, you must also learn lessons from their failures. - 23221

About the Author:

Free forex are powerful when coupled with a desire to learn and a drive to become a great trader. Learning forex and tricks takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Points On How To Find A House In Costa Rica

By Randy Berg

"How to find a house in Costa Rica?" is a question that most people find difficult to answer. Many Americans nurture the dream of buying a house in Costa Rica, but are clueless about how to find one. This article will come as a relief to such individuals because in this article we mention a few tips that can come in handy while planning on finding a house in this enchanting country.

Costa Rica has become a preferred choice for property investment for the Americans, especially since the prices of real estate have fallen down in America due to recession. Comparatively, the real estate in Costa Rica is blooming because of the demand for real estate in this country. A lot of Americans come here to find their dream nests.

San Jose, Heredia, Cartago, Alajuela, Guanacaste, Puntarenas and Limon are the seven major provinces in Costa Rica. The first four provinces are more populated that the others, the major population being that of the "ticos" (native Costa Ricans). The provinces of Guanacaste, Puntarenas and Limon are famous for their beach front properties.

Americans, rather people from any country, who come here to invest in buying a house in Costa Rica, should exert extreme care and caution because it is easy to get conned by Costa Ricans. This article will mention a few points that can come handy when your answer the question of "how to find a house in Costa Rica".

The first thing that you need to keep in mind, while buying a house in Costa Rica, is to have a "tico" (native Costa Rican) by your side. Ensure that the Costa Rican who you have chosen to help you in this endeavor is your friend who you can rely on to get you a good house in Costa Rica.

Once you have tico friend by your side, scour the area where you would like to buy your house thoroughly. It is recommended that you inspect the area minutely to ensure that you will not have any regrets once you make the purchase. If possible, you and your tico friend should stay in that neighborhood to understand the area really well. The more time you spend there with your tico friend, the better understanding you will have of the area.

Post making a decision on the area to purchase property and the house to buy, the next step is to pay a visit to the offices of Public Registry with your tico friend. Your friend needs to help you check the relevant title documents for the property since they are in Spanish.

Once all these things are in place, the next step is to negotiate the price of the property. As a "gringo", it is better that you don't approach the seller directly. Send your tico friend to help you negotiate the deal. Also, ensure that he/she doesn't negotiate the deal in dollars but in Costa Rican money. This will help you save a great deal of money.

Great! Now that you can answer "how to find a house in Costa Rica" better, it is time to proceed with your plans and make that much awaited trip. - 23221

About the Author:

Let Randy Berg help you find economical properties at Costa Rica Real Estate. Interact with us through our forum.