Trading on the foreign exchange markets or forex trading as it is more commonly known, is a complex business to say the least, and so it will come as no surprise that almost every trader will spend a high percentage of their time searching for anything that will provide an extra edge.
Fibonacci – or to give him his full and correct name Leonardo Pisano, was an Italian mathematician who lived in Pisa in the middle ages.
Amongst his many claims to fame he is credited with calculating “The Golden Ratio” and “The Fibonacci Series” by which the next number of the series is obtained by adding the last two numbers together…… 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, … and so on.
The thing that is quite surprising about the Fibonacci series is that this mathematical sequence naturally occurs so very often in nature, and in so many facets of life.
This may have something to do with why it is felt that Fibonacci has a part to play in helping us to trade on the foreign exchange.
Now stay with me here, because we need to take a look at the all important inverse ratio, because it is the use of the inverse ratio that we traders are most interested in.
If you divide one of the “Series” of numbers by the previous number in the series you will always get the answer 1.618 and if you divide a “Series” number by a “Series” number two along you will always get the answer 2.618 or put another way the inverse ratios of 0.618 and 0.38916 respectively.
Do you really need to know any of this? Well yes and no. Sometimes it puts things into perspective of you understand how and why they came to be used and it is of course extremely important to understand as much as possible of what is going on in the minds of the other market participants.
You will, if you have been trading for more than a short while, have come across the retracement levels of 38% and 62%. Guess where they were calculated from.
Yes, they are the rounded numbers derived from the Fibonacci series and portrayed as a percentage. Many traders freely state that when a retracement is underway, price will generally “turn” at one of these levels and if it does not, then it is no longer a retracement, it is a reversal.
Over time an extra level has been included which is 50% but as far as I can ascertain this is not a number that is attributed to our friend Leonardo.
So what is the truth of all of this?
It is true that Leonardo Pisano, was an Italian mathematician who lived in Pisa in the middle ages, and it is likely true that he was the first to document “The Golden Ratio” and “The Fibonacci Series”.
As to whether the Fibonacci levels will work when used as part of some forex trading systems or as a stand-alone trading aid is, I believe, largely dependent upon how popular the Fibonacci trading levels theory is at any given time.
If the price of a currency pair has reached 1.5670 from a low of 1.5282 and then price starts to retrace, and if the vast majority of traders who are active on this currency pair believe that the Fibonacci levels are a valuable trading aid, then price will most likely bounce at the 38% level of 1.5525 or at the 50% level or at the 62% level.
If on the other hand the majority of traders who are active on this currency pair believe that the Fibonacci levels have no trading aid value at all, then price will most likely settle at whatever is the current perceived market value of that pair.
Do I use Fibonacci levels?
Well to tell the truth, I do watch the levels, but only because so many traders believe that they work, and maybe this belief alone is enough to endorse their use as part of your forex systems.
Tags: forex, forex software, forex systems, forex trading, forex trading systems
Unexpected problems can happen to the best of us - bankruptcy, divorce, legal judgments, unemployment, illness, etc. Any of these are traumatic and can affect your FICO credit score in a big way. If you have faced a financial meltdown, you need to take action fast and work diligently if you want to fix your credit and rebuild your FICO score.
1. Getting Good Credit To Fix Your Bad Credit.
This may seem contradictory but if you have bad credit, you need to establish better credit by taking out credit quickly and repaying it quickly.
If your credit got trashed by a bankruptcy or other major financial disaster, you may need to rebuild your credit rating by taking out a loan. Here is how to pull this off.
Some banks will require that you have enough savings to cover the loan before they will lend you money. This is a loan that is secured by your savings account. You need to sell something or borrow money from a family member or friend and open a savings account with that seed money.
You will put up your savings account as collateral. Try for $1,000 to start this. Talk with your banker for terms that will allow you to easily pay back the loan. Pay back the loan quickly because your savings are “locked” until you do. Try to make double payments, too. When the loan is paid off, do another loan the same way.
This method is inexpensive, too. You will be paying interest on the loan while you earn interest on your savings account to offset some of the loan costs. It’s a win-win for you and the bank.
This method will not hugely boost your credit score but it will show up on your credit report and prospective lenders will see that another lending institution trusted you.
2. Try a secured credit card if you cannot qualify for other types of credit cards.
A secured credit card works the same as the savings account method. You will be required to put up an amount equal to the credit card available credit limit to secure the card issuer. Instead of cash, you may also put up assets as collateral such as equity in a house or a vehicle that you own outright.
Secured credit, whether in the form of a credit card or a installment loan, is something most people can qualify for and you will be in a much better position to qualify for other loans in the future. You may have to pay slightly higher interest if your credit score is below average but, in the long term, repaying such secured credit loans can improve your credit score.
3. It takes time to rebuild your credit in the traditional way.
In the most serious cases, simply paying off debts will not dramatically improve your credit score immediately.
If you have experienced a bankruptcy, have been reported to a collection agency, or have had charge-offs, they will remain on your credit report even after you have repaid your debts. In fact, major problems such as a bankruptcy will remain on your credit report for up to ten years, affecting your credit score.
If your poor credit history is the result of simply not paying bills on time, it will still take some time to overcome that history and for your credit score to reflect your better repayment performance.
Paying off your debts and getting your finances in order will help rebuild your credit score in the long term. You will begin to show accounts marked as ‘paid as agreed’ on your credit report. The more of these you can accumulate, the better your short term credit history begins to overcome your prior bad history.
If you have faced a major setback such as a bankruptcy, it will take some time to qualify for much better interest rates on big ticket purchases. The good news is, the further away you are from those bad entries on your credit report, the less risky you appear to lenders.
For example, bankruptcy will have a huge impact on your credit score for the first two to three years, during which time you will have a hard time getting any credit at all, unless you take my advice, of course.
Within two or three years, if you have been paying your bills on time, your bankruptcy will matter less to lenders because you will have created a new reputation of financial responsibility rebuilding your credit as you work your way out of your financial meltdown.
Trust me on this: Knowledge and good financial habits will get you where you want to be.
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Tags: debt
There are many reasons why the next time you move out of state, you should seriously consider using a packing service to pack and or unpack your belongings, at both ends of the move, respectively. Packing companies, as opposed to moving companies, are locally based companies who will come out to your house, before the day of the move, and itemize all of your belongings, and plan the packing ahead of time.
While moving companies often provide online moving costs estimates, an honest packing company will give you a Flat Fee Guaranteed Estimate estimate of the cost of packing. While moving company employees are combination drivers and packers, packing company employees are strictly packers. Packing is their job, their expertise, and they are able to give you the best possible service for this aspect of the move.
On moving day, there are several more hidden benefits in using a packing company. Moving companies, specifically on long distance moves, charge according to the cubic foot your belongings take up in the their truck. It is to the advantage of the moving company to pack your items loosely and thus add to the cost to your bill. The responsibilities of a packing company, on the other hand, end as soon as your belongings are safely packed away on the moving truck. They get no advantage, whatsoever in packing your belongings loosely. In fact, an honest packing company will strive to pack your items as tightly as possible. The savings you make on the cubic footage contribution to your moving cost is an added bonus to you for choosing a packing company. But there is another hidden advantage to using professional packers.
Long distance moving companies will not guarantee the safety of any item that is not packed according to their standards. This policy not only applies to easily packed items such as books, clothes, etc. but also to large items including sofas, and appliances, which must be wrapped and packed in protective material. On the day of the move, if a moving company discovers that many of your items are not packed according to their specifications, they will explain to you that they cannot guarantee the safety of those items. They will only guarantee that those items will arrive safely if you allow them to pack or repack them using supplies provided by the moving company.
Moving company packing supplies are costly, as much as $20-$40 a box, and this additional expense can pad your bill considerably. Items packed by a packing company, on the other hand, will always meet the standards of the moving companies. All of your belongings will arrive safely or be insured properly, and you will know ahead of time, exactly how much the packing is going to cost you. Packing companies usually complete the packing job in one day, so you don’t have to live with items that have been packed away weeks earlier, as frequently happens during home packing jobs. And on the day of the move you can play with your kids while the packers pack.
Honest packing companies such as Packing Service Inc. of Florida will also help you find a reputable company to move your belongings to the new state, as the moving industry today is full of moving scam. So before you make your next move, take time out to talk to a local packing company, and find out what they offer, and consider using a packing service for your next long distance move.
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Tags: moving scam
Fox News discussed the rising unemployment rate last week, the new data is very alarming. If you missed that news time, you can watch it here by clicking the link below.
http://www.youtube.com/watch?v=U9xXebypGwU
American well-known economist Nouriel Roubini recently predicted that this recession is going to be a U-shaped recession, meaning it takes a longer decline before it bounces back. And it takes even longer for job market to be returning to healthy.
Nouriel Roubini had been sucessfully predicted the sub-prime mortgage crisis before it happened. Now his predictions are very powerful and influential.
Being aware of the economic situation helps us to be well prepared. Make sure you have both career plan and financial plan set for any situation that might come to you.