Macro Trading the Carry Trade

By Peter Kovner

If you are into global macro you trade everything. You trade stocks, bonds, commodities, and even currencies. Essentially you are looking to trade anything that presents a great risk to reward opportunity that is not correlated with your other trades.

You don't just trade different asset classes but even different strategies within an asset class. If you trade bonds you will have some directional trades on, some spread trades, and some arbitrage trades. All of his is to further diversify your returns stream. You can do the same types of things in every asset class which makes your streams of returns very uncorrelated.

Macro traders have one strategy that most traders never use and that is the currency markets. Long the playground of only banks, currency trading is now available to the masses and is getting better and better. One of the best strategies in currency trading is that of the carry trade.

The carry trade consists of going long a high yielding currency and going short a low yielding currency to fund the trade. You make money in two ways. One is if the initial trade is profitable if the higher yielding currency goes up relative to the low yielder. The other way to earn money is to make money off the carry, or the interest rate differential.

The carry trade is helped tremendously by the use of leverage. If you can earn four percent via the differential and then magnify that by four or five you will then bring your returns up to sixteen or twenty percent a year from the carry alone. If you juice it up ten times you will have a forty percent return. This sounds great on paper but it cant be that easy can it?

No, it is not. Yes, you can get the carry but if there is excess or even normal volatility depending upon the leverage being used you will blow up in traders terms. If this is the case, and it is, then what should a trade be focusing on when they are trying to execute the carry trade? Well the obvious answer is volatility.

There are several ways to measure volatility. Some traders just look at several pairs and use an internal barometer of what is happening but most successful traders use at least some type of quantitative measure. We have the VIX which is used to look at equity volatility but happens to be a decent barometer of all volatility. There are also several newer currency volatility gauges like the JP Morgan currency volatility tools and the other investment banks volatility tools.

If you are an active macro trader that is using the carry trade then you should incorporate a volatility filter. If you are not using the carry trade then you are missing out on a great way to diversify as well as deliver more consistent returns. - 23221

About the Author:

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

FAPTurbo Forex Trading Review

By Frank M. Rivera

Forex traders all over the world have been rocked by an expert advisor called FAPTurbo. Traders from all over the world have bought this software and added it to their accounts intending for it to help them on their way to making great profits. So the program has a huge popularity rating, but does it live up to the hype?

Before we look a little closer at how the FAPTurbo works, we'll begin with the price tag. At $149 this robot is one of the more competitively priced forex software programs on the market. The lower price often makes a lot of traders shy away from this robot for fear that it may not be as good.

Does the robot actually work? In a word...yes. It works. However, if you're expecting to double your account every single month, then you're probably going to be disappointed. However, for $149, if you could get a robot that would double your account in a year, wouldn't you be ecstatic? I think this is a very reasonable accomplishment for FAPTurbo. In fact, you could probably realistically expect to double your account every 3 or 4 months if your settings are right and you have a good broker.

So how does the FAPTurbo robot make you money? The major aspect of this software is as a scalper, but there is the option to use it as a long term trading strategy if you choose. The software is able to trade across four different currency pairs. These are USD/CAD, EUR/GBP, GBP/CHF and EUR/CHF.

Each of these pairs has definite advantages. Being some of the more predominant currency crosses, the profitability is often consistent. If you're willing to follow the pricing indicators given by this robot, there should be no need to consider some of the other major currencies or even some of the riskier emerging currencies.

The robot trades during the pre-Asian session when trading is kind of dead overall. The pairs usually enter into a nice, tight range for scalping. While it is called a scalper, it usually leaves trades open longer than that. You can expect your trades to last anywhere from 10 minutes to all night long if it drags out.

If you're expecting a perfect trading robot, you're probably going to be disappointed. This robot will incur some losses just like every single robot out there. However, the great thing about this robot is that it can make them up pretty quickly. You'll get quite a few trades with this robot. On average you'll probably see one or two trades per pair that you trade every day. Sometimes more, sometimes less depending on your spread.

FAPTurbo is a good quality robot that represents good quality for money. For the price tag on the software, you can realistically expect to increase your likelihood of turning a profit with each trade. Have a little patience and take some time to work with your robot. When you're more familiar with the way it works, you'll be pleased with your purchase. - 23221

About the Author:

Curious about an automated forex trading system? They work great and can double your money in only a few months. See this forex trading software right now and multiply your cash!

Managed Forex - Pros And Cons

By Bart Icles

Managed Forex Accounts involve the handling of a trader/client's investment by a duly licensed company or its designated representative/s to do Forex trading in their behalf. This can be an ideal alternative for any trader who deems it necessary to do Forex trading with defined and limited risks involved. The managing company constantly monitors market activities trends in a 24 hour basis, and then recommends to the client what to do when the need arises. Once the client is informed of the latest updates, they will then decide themselves on what possible actions to take.

Picking the right Forex company to manage your account is crucial to keeping your investments in the money making zone. Only hire a reputable and certified Forex management firm who has a good track record, and genuine references to offer. Before deciding to set yourself up with a Forex account with any company or individual, be sure to cover all the bases first by doing extensive research on them, and by contacting other Forex brokers for any valuable information that might otherwise be hidden or excluded by the firm in question.

Make sure you also understand the cost and fees involved the company charges for setting up an account with them. It pays to read the small print thoroughly before affixing your signature to the contract, otherwise you might end up on the losing side of the deal even just you're still just at the initial period.

Forex accounts offer the advantage of taking out most of the complex and crucial decisions concerning the market conditions and trends from an otherwise inexperienced trader, who would lose their precious investments if left to their own inadequate faculties. Forex management firms are in the know of most important inside information, access to real-time currency exchange rates, and crucial market indicators that can be used to help clients turn a tidy profit.

The downside to investing in a managed Forex account is their rather high investment requirements that may range anywhere from $10,000 to $20,000. Some management firms may offer staggered payment schemes or the like to fit some client's allocated budgets, but could still prove to be a disadvantage once the management firm makes bad investment decisions and loses a clients investment.

Forex trading is exciting and profitable once you know how it works and with a good managed Forex account. Invest in one now to see the desired results you've been missing before its too late - 23221

About the Author:

Forex investing starts with a desire to learn and a drive to become a great trader. Learning forex software 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.

A Guide To Noticing Investment Opportunities

By Mr Christopher Latter

Investment is the latest trend currently running all over the world. There are many investment opportunities available. Some of them are real estate investments, stock investments, mutual funds and IRA's. The secret of success lies in knowing how to scope out investment opportunities.

First you have to be ready with the basic knowledge of the areas you want to invest in. For this you have get ready with investment education. You have to gain the decision making ability through research. You have to accumulate the money required to execute your plans. Let us see how to scope out investment opportunities in various areas.

Real estate includes various types of properties such as land, office complexes, new homes or any other rented properties and assets that are fixed and immovable. investment opportunities in the real estate sector are all about buying assets so as to make profits by selling them at a later point of time. Dividends from these assets due to possession or by deriving other benefits like rents also come in this category. Real estate investment is very much profitable during the phases of industrialization and urbanization as the productivity increases.

There is also a relative increase in the need of manpower due to the establishment of newer and newer industries every year. This also made way for the increase in demand for more land and other properties pertaining to the real estate. This demand can be seen mostly in the developing nations such as Malaysia, Brazil, India, Poland, Vietnam, Thailand, China and many others.

The sure-fire rule that makes any investor successful in making the real estate industry as the best investment opportunity is to keep oneself informed of the new things happening in and around the industry. One should have the ability to predict the needs of the situations around you and make the strategies accordingly. After you have acquired all the basic knowledge in the industry, you should concentrate more on developing your skills and finances required to carry out your strategies.

Another potential investment opportunity is the stock market. Before you end up in the idea of earning profits from the stock market, it is very much required to understand all the basic fundamentals involved with trading in the stock market. Sufficient knowledge in stock market can be acquired through various kinds of investing education that can be had through several programs offered by various agencies in the market. Or even you can take seek the help of a good financial advisor who can help you in making good deals in the stock market.

Mutual funds are one among the safest Investment opportunities. You have to see which mutual funds give good yields in lesser period of time and more over you have to know, if you can get any other associated benefits such as tax benefits and insurance coverage's. You have to choose the best Mutual funds scheme based on your priorities.

Traditional IRAs too are good investment opportunities. Choose the best IRA that best fits your requirement. Beware of the hidden things underlying the IRA schemes. Evaluate the possible pitfalls beforehand in order to avoid undesired things from coming your way. - 23221

About the Author:

Learn more about noticing investment opportunities in order to return high profits, visit a large list of other useful information on the best investment opportunities

Trading the Forex Market

By Matt Ferency

There are a lot of people out there that are new to the market and do not know much about trading the forex market. Trading the Forex market can be tricky if you are unsure exactly how to do it. A person with below average knowledge about the market probably knows very little if anything at all about trading the Forex market. Forex stands for the foreign exchange market and trades all the currencies out there.

The first thing that most new traders have to learn is that there are no guarantees in the market. As a matter of fact every time you put money up in the market you stand to lose it all if you not careful.

Many Forex traders got their start playing on paper first. If you are able to win more than you lose on a consistent basis when you trade with play money, then you are ready to begin trading with real cash.

Forex brokers are always eager to bring on new clients so they make it easy for you to get started. Some will set you up with a training or dummy account to help you learn the ropes. It doesn't take much money to get started with Forex trading, you should be able to open an account for just a few hundred dollars.

Having the knowledge before you invest real money is going to be the key to you're success. Playing the open market can be tricky and in some cases leave you completely exposed. However, there is hope, because there are so many different tools at your dispense for learning to trade the Forex market.

Lets be honest here, no one wants to just dive into the market not knowing what they are doing and lose everything. You are going to want to take every class you can, and read every piece of literature you can, so that you are properly informed on how to play your money.

The Internet is a rich resource for learning about Forex. You can access broker websites, buy ebooks and hot tip newsletters, learn from fellow traders in chat rooms, and buy Forex analysis software.

To get stared in the exciting world of Forex trading, the first thing you should do is seek out an online broker who offers a dummy account that you can set up just as if it was a real money account. You should compare brokers to make sure you find one that provides great service at an affordable price.

With the technology that is out there, you will need to make sure that you have two required things for effective trading. Those two things are an up-to-date computer and high speed internet. You will need these to download the latest software, and to watch your stocks in real time.

The hardest part of trading the Forex market is convincing yourself that you will not lose everything. If you properly educate yourself, and take advantage of all the tools that you have, you will be on you're way to being ready to trade the Forex market effectively. There are already a lot of people and businesses that trade the Forex, and are successful doing it. This could be you too! Just get out there and get started trading and learning by paper trading! - 23221

About the Author:

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