It is very useful to think of the market, only not if you are in it. And when it also is pleasant, it is twice as useful. As for me, very often I like to think of the market trends, about the weaknesses and strengths, that I could overcome, and which issues still need to work over.

Today I was thinking about trend reversals. Why do people so willingly expect them to take place? I was reflecting, but finally came to a conclusion, that all and should be as how now is. In the theory, we all know, that any trend has more chances to continue the movement, than to turn to correction.

However, the market if filled with talks that correction is bound to start. Let us imagine a situation of a bullish trend (no matter, it may be bearish). We should always take into account that there are always a great deal of huge investors influencing the market. As a result of their activity, we notice price fluctuations.

Let's start to consider a situation from a point, when in the market an inherent bull trend. At that point it is necessary to understand, that in the market there are a plenty of large participants (if we speak about Forex market) which holds opened long positions.

But what would not be high liquidity, at huge volumes participants of the market enter into a position in the portions.

But one cannot buy too much base currency, as well the market is not ready to offer the same for sale. Hence, huge market participants in the bullish market just need situations where the majority of traders will hesitate about the strength of the rising trend and will prefer short positions in expectation of a rebound.

Big market players only add to their long positions benefitting from those who expect correction to continue. This story happens again and again until the majority is ready to place short orders. And when it happens, big players will find no one to buy from. They start to close out positions benefitting from those who are in despair. They come to a conclusion that trading against the trend is nonsense. It may sound unpleasant, buy real trading implies the fact that 95% of traders are to lose. 

This blog entry is aimed to fit both trading and common life situations. This post is targeted at those people, who design their trading plan on the point of view of other people, such as traders and analysts. I`d recommend you to start making your OWN decisions based on your OWN point of view as no one may always be right on the market, thus, following someone will probably lead you to a failure.

I still wonder why people tend to find a market idol. I`ve seen many examples when a trader was like blind and followed forecasts every time he traded. He did not want to think, to figure out why the analyst decided so, what was the basis of his forecast. It was a weekly forecast, but a trader managed to use it in intraday trading. The result appeared to be awful as he lose the whole deposit just in a week. That is why always try to make your own conclusions even when the forecast seems to be perfect and you had no reason to be disappointed in past.

Professional analysts write forecasts not as an example of blind following. They do that in order that people try to analyze the market. People should make themselves think why did the analyst foresee this or that movement. Treat forecasts as a source of thinking, by not as a direct advice to trade. Finally, I`d say, be careful and always think when engaging in trading just not to waste your money as a toilet paper.

I have heard an opinion that it is easier to become a trader only if one has an economic degree. Finally, all famous analysts boast financial higher education degree. In case you`d like to become an analyst the department of economy is you right way. But what should one do in case he`d like to become a trader?

Being an analyst requires accurate speech and being aware of all market trends, analysts read foreign magazines, sometimes they hear someone`s thoughts and add their shades. And finally, the main idea is that a trader is required to show results and an analyst should only produce a forecast. The more people listen to his opinion the better analyst he becomes. The crucial difference here is that trader sooner or later will have to take decisions whether to open a position or close it out. Analysts do not have such a moment of decision taking.

So now let us come back to our question: should a trader have a higher education diploma? In my opinion, a good trader may carry out trades even having no education. Those who deal with intraday trading would agree no higher education establishment will teach how to trade intraday. But the most important aspect to be mentioned is that studying in a university is wasting time for a trader as there he will have no online practice. Theory is nothing without practice, I`d say. If you come across a trader with higher financial education, just ask him whether he obtained any knowledge in his university?

Very uneven economic situation across all countries has recently revived talks about possibility of double dip economic recession so many of us question ourselves – will we witness the second phase of the crisis? Speaking to economist and reading the newspapers, I`ve come across such statements that 2011 will be as severe as 2008. So, if we want to find the answer, we need to realize where did the crisis come from.

The world financial crisis was reasoned by banks` failure to give loans back. Furthermore, the banks could not return deposits to their client. The banking services in times of crisis as well al the whole number of financial operations essentially subdued. Thus failure of banking system immediately reflected on industry, home and car sales as customers applied for lending programs. So, is it possible to say now that global banking sphere rebounds? Definitely yes, because people place money on deposits. Have we forgotten all that happened in 2008?

Many experts do not believe that during such a short period the whole banking sphere could have been restored. Besides, some sources inform that at this moment the number of people who are incapable to pay mortgage is at the level it was in 2008. Is this information worth believing? This data has no evidence as no one among officials confirmed this fact. Make your own judgments.

So I believe that suggestions about double dip recession is just a myth, it is completely over let us hope for brighter future.

The MetaQuotes Corp., the producer of Forex trading software, announced it would release the new mobile edition of its MetaTrader 5 trading platform for Iphone and Google Android. Its predecessor, MetaTrader 4 mobile is currently available for Smartphones and PDA`s based on Windows Mobile platform and Windows Phone 7. Now the owners of Iphones may be happy as they will enjoy MT5 mobile in their devices. Work over Iphone app is no in process, but the MetaQuotes developers still don`t mention any exact periods when it will be released.

Besides, there are some bad news for owners of devices on Windows Mobile platform and Windows Phone 7 as the new MT5 mobile will not support these editions as there are many bugs in previous editions released by Microsoft.

The MT5 Iphone design will perfectly match the Iphone interface and will be tuned well to Iphone operating system. The new interface will be different from Metatrader 4 Windows Mobile.

At this point, MetaTrader 4 mobile may be used on Iphone only via remote connection, which enables you to control your expert advisor. However, for immediate checking market quotes mobile version is the best solution.

Download MetaTrader 4 Mobile

This time I would like to tell you about a new Forex trading course. I`ve found it a couple of months ago and find it brilliant for Forex beginners. Its name is Turn-key trading strategy. I`ve asked those who already tried it and their results are really encouraging.

The main feature of the course is that you do not need to use bunch of indicators. You are given with the only indicator that does not foresee, it indicates directly. Having studied this course I am now ready to answer the questions about Forex market, I used to be confused about. This approach made me forget about such phrases as “I think…”, “I guess the price will…”, “It seems to be a descending trend…”. Now it takes me a couple of minutes to define the market situation exactly. Using this indicator I earned a profit of 788 pips when the market surged only by 486 pips. The account profit for the first month exceeds 50%.

Besides, the system teaches you how to define a trend and to distinguish it for sudden market fluctuations.

Now I want you to read about Turn-key strategy in details and draw your own conclusions. Hope it will bring you high pips!

After a long period of beta testing the MetaQuotes Software Corp. announced launching of its new product – MetaTrader 5 Trading Terminal. Since its initial development the new MT5 platform was treated as a multimarket trading software product used to work with different financial markets. This aim has been attained by the developers.

The first stage of testing was introduced among the MetaQuotes staff. Then the company launched public beta-testing so that everyone could participate to come to a flexible, stable trading program. Since the testing began the company received 1,000 bug reports and crash logs on the entire MT5 platform. For that time over 60 builds of server components were released. The new trading program retains the basic functions of MetaTrader 4 and additionally offers new interesting features both for brokerage firms and for individual traders.

Read more advantages of MT5

The UK money exchange offices ceased selling 500 euro notes as police thinks they are a popular financial instrument used by criminals, according to London`s officials. This action is aimed at preventing money laundry as many schemers, drug dealers and gangs operate this banknotes. It does not mean the note is completely banned in the UK, tourists still can exchange it in banks or currency exchange office. The main idea is to limit access to the preferable banknote.

500 euro bills gained a bad reputation a long time ago being popular by mafia and criminal communities. For example, Bank of Italy initiated a statement to the European Central Bank to withdraw these bills from circulation. Such popularity is explained by its high value, they are easy to pack and to transport.

Police says that a money laundering gang once sourced about 24 million GBP in 500 euro notes between 2007 and 2009.