By Sean Hyman, Currency Analyst
www.worldcurrencywatch.com

Let me go on record right now as saying a trailing stop is one of the most MISUSED orders out there in Forex.

At first glance, it appears that if you put in an order and a stop with a trailing stop, then it seems like you’re guaranteed to capture a profit. However, this is not always the case. 
A trailing-stop is the order you use when you are “right” on a particular trade.

By Sean Hyman

To become an efficient Forex trader, you need to have both a good defense and offense strategy so you know when to both enter and exit trades.

As I said in yesterday’s article, your stop-loss is your “defensive strategy.” Your stop-loss is your “plan B,” for each trade – your level when you automatically exit your trade and cut your losses.

Just recently, I was discussing strategy with a local business owner. This guy not only had laid out his plans to grow his business over the next few years, but he also told me his plans just in case he had to sell his business.

I thought that was interesting. Not only did he have the beginning and upcoming years in mind but he also had an "exit strategy" in place as well too.

By Chuck Butler, Editor
www.worldcurrencywatch.com

I had a few emails yesterday asking me what "quantitative easing" is. I explained all this all a month or so ago, but I want to explain it again for any new students who are wondering just what the heck I'm talking about...

By John Ross Crooks III, Currency Analyst
www.worldcurrencywatch.com

The U.S. Dollar Index yesterday touched its highest level in nearly three years. Not since April of 2006 have we seen the buck this strong versus this particular basket of currencies.

By Sean Hyman, Currency Analyst
www.worldcurrecywatch.com 

Good day traders!

Carry-trades. Spreads. Cross rates. Like anything else, Forex trading has its own lingo. And just like visiting a foreign country, you could get lost if you don’t understand the language.

In fact, I’m convinced that’s what keeps so many investors from diving into this TRILLION dollar market. Most just don’t understand the basics.

By Jack Crooks

Do we have a dollar breakout or fake-out in the making? It depends on the euro here.

The European currencies are lower against the dollar this morning on news that Germany didn’t want to throw its hard-earned Treasury at central and eastern European problems.  Why should they? Oh yeah, I keep forgetting, it is a “Union” of European countries.

By John Ross Crooks III, Currency Analyst
www.worldcurrencywatch.com

Inflation is back...but this time it’s a bit different.

I’m not talking about the inflation of prices. I’m talking about the inflation of lungs.

It’s almost as if every morning there’s some new stimulus bill, or some alteration to one, or some plan to fix banks, or something along those lines. And with each morning, we hold our breath...some more.

By Jack Crooks, Currency Analyst
www.worldcurrencywatch.com

Though it is fashion to blame the U.S. for all the ills now flowing into the global economy, I don’t think it’s quite that simple.

Remember the “global savings glut.” In short, it was the massive current account surplus accumulation of the East thanks to the massive consumption of the West. This was buoyed by the Massive “global savings glut” allowing for the creation of rocket science products called derivatives.

By Chuck Butler, Editor
www.worldcurrencywatch.com

Long-time readers know my affection for the surplus/positive balance of payment countries and their respective currencies. Well, Norway always drifts to the top of those discussions because of their impressive balance sheets.

But then last night I came across a report by the research team at HSBC that graded the currencies. Their pick for best currency? Norwegian krone! 

Let’s listen in to what the HSBC researchers are saying…