Are you Losing Wasted Money or Earning Extra Money?

Important Forex Tip – What’s the currency held in your broker?
This is one very important thing that every forex trader should know.What’s the currency that you hold in your forex broker account?Regardless of which country are you living in.Your currency denominator in your forex account should NOT be in USD.This may come as a BIG Shocker to you.And if your denominator is in USD. Change It Now!

Important Forex Tip – What’s the currency held in your broker?

Here’s why:
My Example: I’m based in Singapore. Around 2-3 years back, the USD to SGD (singapore dollar) is at the rate of 1 : 1.4 (est)
Forex Blog: Therefore $1 USD is equals to $1.4 SGD.
Forex Blog: But today $1 USD is equal to $1.1~ SGD.
So had my forex account denominator be held in USD. I will be making a huge loss!Just for example. If your capital is $100,000 USD 3 years back, if i convert it back to SGD. It will be $140,000 SGD.And supposedly, if i never traded the account. Today my capital left will be $110,000 SGD.Meaning i made a loss on my account even though i did not even took a single trade!
Do you see what i’m driving here.Even though if i had traded the account, my profits would have been wiped off or massively reduced due to the currency difference.Which also means that you are practically wasting your time trading forex as none of your profits could be seen.

So what now?
Here’s the fact.
The USD will continue its way down, unless there is a chance of them clearing the trillion of dollars in debt. (chances are really slim)Til then, the USD will at least not grow back to what it once was.So if you are living outside of the United States.You should either put your currency in your own country’s denominator or place it in a country which has a stable economy (eg. Singapore is one of them) And if you are living in the United States.You should change your denominator to another country which has a stable economy. (Not EUR – due to its mounting debt)
Some brokers will not allow the change if you are living in the United States but some will.So if those brokers doesn’t allow you to change your denominator to other currency.
CHANGE THEM!

By changing your denominator to other currency, and if the USD continues falling against the currency you put in.You will see a growth in your capital without even trading!So that’s Extra Profits! (or even to cover your losses you made through silly mistakes)Let me know if this post has helped you.Do share it and like it! Cheers!

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Forex Brokers: What to Look For

You should not rush to choose a new broker. We recommend that you take advantage of several free demo accounts and compare them carefully before you commit to one. You should also read our reviews, peruse a few forums and find other resources to further educate yourself about the broker. To help you make an informed selection, we compared trade details, brokerage types, funding options, trading platforms, and help and support.

Trades
While volume investors fuel the majority of the $4 trillion dollar per day foreign exchange market, increasingly opportunities are opening up to lower-volume investors. In the past, minimum deposits were in the thousands; now you can fund a new account with as little as $100. This low deposit requirement gives you the opportunity to test out a few services without having to risk large sums of money. Most forex trading brokers also require only a 1,000 minimum trade lot size. If you are trading from the U.S., leverage is limited to 50:1; however, if you are trading from other countries, you may be able to leverage as much as 400:1. In terms of trading pairs, brokerages offer a choice of 30 to more than 60 trading pairs. While you may not choose to trade more than 60 trading pairs, you will want to verify the trading pairs available to ensure that the ones you are interested in are accessible through your selected broker.

Brokerage & Funding Options
Before selecting a new broker, you should consider the broker's reputation, funding and payment options, and all associated fees and interest. While conducting our research, we noticed that withdrawing money seems to be trickier than depositing money into your account. Keep in mind that it may take days or longer to retrieve your funds, so you should not trade with money that you actually need. It would be prudent to investigate customers' experiences with withdrawals before signing up with a new broker. Also, be careful to note what type of broker they are and what governing agencies the broker is regulated and licensed by.

If you are a day trader, you may not have to worry about interest rates. However, if you hold a position overnight, the broker will charge you interest. For Muslims, most offer interest-free accounts that charge a fee rather than interest. Other fees to consider include wire-transfer fees, margin rates and routing fees.

Trading Platforms
Most forex brokers offer MetaTrader to their clients as the trading platform. If you are an experienced trader, you are likely already accustomed to using this popular trading platform. Those that offer MetaTrader also provide access to the mobile version. All platforms are now web-based, and many brokers offer their own proprietary trading platforms as well. If you are trading with a market maker broker, it is recommended that you monitor a few trading platforms to ensure that they are offering you fair deals.

Help & Support
Although nothing can replace extensive research and experience with a broker over an extended period, we did compare how easy it is to contact the forex brokers and what kind of education they provide. The best forex brokers offer telephone and email support during generous business hours. Many also provide limited chat support. All services provide free demo accounts so that you can practice trading strategies and using the trading platform.

Forex trading involves a high amount of risk, so we recommend that you educate yourself as much as possible before you start. The top brokerage services provide documentation, videos and tutorials to help you learn how to minimize your risk.

GCM is a group of elite markets traders, experienced in trading the world’s largest financial market with huge turnover volume in a day. We foresee that the future trend in the capital markets, gold futures will continually transforming and challenging world of online trading. Hence, GCM is committed and will be one of the most outstanding trading services provider in the region.

 

Price-to-earnings ratio (P/E)

A company's price-to-earnings (P/E) ratio tells you how much investors are willing to pay per unit (£1, $1, €1) of a company's earnings. For this reason, it is sometimes nicknamed the "price multiple" or the "earnings multiple."

It is calculated by dividing its market value per share by its earnings per share:

PE = Market value per share/earnings per share

For example, if a company's stock is currently trading at £40 per share, and its earnings per share have averaged £2 over the previous four quarters, its P/E ratio for the year would be 20.

This means that investors buying the stock now need to pay £20 for every £1 of earnings generated by each share.

P/E shows the desirability of the company's shares compared to other companies

The P/E ratio therefore tells us how attractive a share is relative to other shares. The higher the P/E, the more money shareholders are prepared to invest for the same £1 of earnings

This gives P/E its most important use for equity investors – it helps them decide whether a company's share is overpriced or underpriced compared with the company's real, fundamental value and with other shares in the same sector.

Caution with very high P/E figures

A high P/E ratio may indicate a share is overpriced, in which case you may decide to sell it on the expectation that its inflated price will soon collapse and it will fall back to its real value.

Conversely, a low P/E ratio may indicate that a share is underpriced or cheap, in which case you may decide to buy it on the expectation that other investors will soon become aware of its fundamental strengths and its share price will rise to its real value.

Generally, a P/E lower than 15 indicates that a company's shares are currently undervalued, while a P/E ratio higher than 20 indicates that its shares are overvalued.

Take into account the industry and size of the company

This is only a very loose rule however, as P/E ratios tend to be different based on the industry in which a company operates and on its size.

Technology companies, for example, tend to have higher P/E ratios than other sectors because their growth rates are usually higher and they give investors a higher return on equity. In contrast, utility companies tend to have a lower P/E ratio.

Consider P/E over time

Another way of using P/E ratios is to look at a company's P/E over a period of time.

If, for example, a company's P/E ratio has risen significantly higher than its historical average P/E ratio, and you cannot find fundamental reasons to justify that – for example, a hot new product – this may indicate that its shares are overpriced and now might be a good time to sell.

The same can be applied to entire sectors. If, for example, the average P/E ratio of pharmaceutical companies has dropped significantly below its historical average, and you can find no fundamental reason to explain this, it might indicate pharmaceutical shares in general are currently underpriced. This means that now might be a good time to buy pharmaceutical shares.

At this point, you could apply the P/E ratio to individual companies in the pharmaceutical sector to work out which in particular seem most underpriced.

Bear in mind that, similarly to the EPS ratio used in its calculation, the P/E ratio relies on companies reporting their earnings accurately.

It is of course possible for companies to manipulate their earnings, so the P/E ratio should never be relied on as your sole indicator before deciding whether to buy or sell a share.