Cash in on the Gold Rush With These Popular Household Items

Gold recycling is more popular than ever in recent years due to the demand of precious metals. Every bit of gold recycling helps supply that demand and the American public can help recycle and get paid to do so. Even if you don’t have a lot of gold jewelry around your house, there are plenty of other household items that contain gold and can be recycled for a profit. Recycling gold can be very profitable and help you make a few hundred dollars to a few thousand dollars depending on what you have to recycle.

To get started recycling gold, here are 10 items you can start looking for in your house to start recycling.

1) old laptop and old computers – different brands and models may have different components, but most likely your old computer will have gold in the chip processor, CD drive unit, and adapter extension for a laptop. Before extracting the gold from these items, you should research into the process for removing gold from these items. Often times, it will require using toxic chemicals so it is important to understand the process to remove the gold as well as practicing safety to make sure you aren’t harmed by the chemicals.

2) cell phones – in your cell phone, there are components made of gold or these items can be gold plated.

3) broken and unwanted jewelry – you may have old jewelry from an ex-spouse, ex girlfriend or boyfriend, and even from relatives. You may have items that you haven’t worn in 10 years or items that have broke. The great news is, these items can be turned into cash if you no longer desire them.

4) commemorative pins – you may have pins and buttons around the house that are actual gold. You may have inherited military memorabilia that contains gold.

5) Old fillings and caps – dentists years ago would use gold for fillings and caps. You may have a relative or even yourself that has had a gold filling removed.

6) Old smoke detectors – take down your old smoke detectors and replace them with new ones. Before discarding your old smoke detector, remove any gold

7) Old VCR’s – they have gold in them

8) Old Junker car – there is gold in your old car. Depending on the year, make and model, the gold content will differ. System chips and heat insulation are some places you can look.

9) old TV’s, printers, and cameras – I can’t list every make and model, but there are gold in these items. People discard these items everyday because they become outdated. You can pick these up for free and turn them into cash.

10) glassware and silverware – not all glassware and silverware will have gold, but some items will. Some place settings will have gold in the dish, some glassware will have gold in the glass, and some silverware will have gold within the utensil. Review all of your items carefully. Silverware may also be sterling silver which is also a precious metal that you can sell for instant profit.

As you can see, there are plenty of items that can be recycled and turned into instant cash. Some recycling methods take more time than others so you may have to experiment with the process to determine what method you enjoy best. The great thing about recycling precious metals is that anyone can start recycling today and earn some extra income doing so.

Source by Dave Barkstedt

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Secrets of a Gold Buying Millionaire

Buying scrap gold is fast catching up as a very lucrative business. People are more willing to sell their gold to a gold buyer than to a pawn shop or jeweler. I am a gold buying expert and I am in this field for many years. And I have only seen the number of gold buyers and sellers increase in tremendous amounts each year! Pawn shops and jewelers only give 50-60% whereas a gold buyer can give 70% which is very beneficial to the customer. If you see, the value of gold has only been increasing but never decreasing. And now gold is at an all time high and this is an opportunity to buy gold and invest it in various ways. The value of gold only increases with time.

Becoming a scrap gold buyer is not very difficult if you are thinking so. It doesn’t need any training or educational qualifications. You just need to invest some time and some common sense. And trust me that in no time you will become an expert in this field. You can make millions in a very small period of time considering that the Americans are selling as much as $50,000 of gold each week. If you follow some good tips and instructions you might make very good money in a short period. Please visit: for guidance to make your business profitable. However let me tell you some of the simple ways and methods of a gold buying millionaire.

Choosing the right refinery to sell your scrap gold is very important. It is a very good idea to consider a local refinery. If your refinery is far away you might have to send you gold through mail and you also need to undergo insurance work. But before selecting your refinery, make sure you visit their office and check their resources out. The refinery cost is usually not more than 5%.

Stone tweezers are helpful when your customer only wants to part with her gold but not the stones in the ornaments. In all these years I have seen many gold buyers just losing their customers just because they do not have equipment to remove stones and other precious gems from the jewelry.

Advertising your business and making people aware of your job is very important. You can place your ads in Craigslist, which I did when I started the business and it worked wonders! Make sure you have as many gold parties as possible. Most gold buyers make huge profits in gold parties. An average customer has about $300 of gold and even if you pay 65% you will make $100 before paying the refinery. And considering a party of 10, you can easily earn up to$1000 in just a few hours!

Always keep track of the market conditions and other details about gold. The value of gold keeps changing everyday and you need to be updated properly. Proper knowledge and information will save you a lot of money.

Source by Matt Wallace

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source http://blog.bigfinancial.co.uk/secrets-of-a-gold-buying-millionaire/

A Lesson In Selling Your Gold and Silver

Recently, I made an offer on a hand- made piece of jewelry made in Greece. My client had been told by another buyer that the piece was made of 18k gold. I examined the piece and determined that it was, though stamped k18, not 18 karat but a mixture of 14 karat and 18 karat gold and worth approximately $1,800.

To convince my client that I was correct, I brought the piece to four other gold buyers for confirmation. The first, an expert in precious metals, confirmed my evaluation that the piece contained both 14 karat and 18 karat gold but declined to make an offer until the piece was assayed which meant destroying it. The second, a gold buyer in a flea market, told me it wasn’t gold at all and worthless, the third, a buyer at a retail jewelry store said it was half gold and half sterling silver and worth $565.00. The last, a buyer at a kiosk in a local mall said it was 14karat and offered $1,300.00

My client gladly accepted the $1800.00 I offered.

On the same day, a young college student who had sold me gold before brought me a heavy link chain stamped 14k for which he had paid $300.00. It took no more than a simple magnet test to determine that the chain was not gold at all. Gold is non magnetic and the chain adhered to the magnet.

Later that week, another young man brought me a chain stamped 14k. He purchased it for $100.00. He called me with the weight of the chain and asked how much I would pay him for it. He was delighted to think he could make an easy $250.00 profit. When I examined it, I was sorry to have to tell him the chain was, in fact, not gold at all but only plated with gold.

Lesson to be learned:

Not everyone who claims to be an expert at evaluating the purity of Gold is an expert. They may be honest and offer to pay for your jewelry based on what they think is the gold content. Though honest, not experienced enough to be able to determine the actual gold content and pay for the true value of the piece. If you want to get the most for the gold you sell, you must have it evaluated by a buyer with experience, expertise and the best and most high tech equipment for testing the gold.

I have been buying Gold for more than 20 years, which attests to my experience and expertise and I use the most sophisticated equipment available on the market today to test for purity. You can be sure your gold has been properly evaluated and you have been paid the highest amount for it.

Source by Kenneth Gordon

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Procter and Gamble’s Acquisition of Gillette Analysis

P&G’s businesses were organized into three product based segments: household care, health, baby and family care, and beauty care. P&G became a national consumer products company with 30 brands and production facilities across the US and Canada by 1890. P&G also experienced an increase of more than 40% in their revenues between 2001 and 2005. In 2005, P&G executed its largest acquisition with the takeover of Gillette Company.

I. Reasons for P&G’s Acquisition of Gillette

A) Companies have complementary strengths in product innovation and selling activities

P&G has a distribution system that is internationally spread out as compared to Gillette. Management is expected to take Gillette products into developing markets such as China that were served by P&G, but not Gillette immediately after the merger. P&G and Gillette also plan to share their R&D costs to further develop their products to better suit their customer’s needs.

B) Stronger lineup of brands

Gillette was a well-known brand in the razor market and it also has a 70% market share in the global razor market. It has a strong competitive position and Gillette has been successful in persuading their customers to trade up to higher-price-point personal care items. Gillette’s customers also tended to be highly loyal. Acquisition of Gillette will definitely provide a competitive edge to P&G as Gillette is will provide a stronger lineup of brands to P&G in the consumer products industry.

C) Generate additional opportunities for economies of scale

Gillette has a huge market share on its own while P&G has an internationally spread out distribution system. Combining these companies’ strengths together will enable both P&G and Gillette to reduce per unit cost by achieving economies of scale.

D) Enhance relationships and bargaining power with retail buyers

The strong competitive position that Gillette has in the consumer products industry will increase the bargaining power that P&G has over its retail buyers. P&G will be able to strengthen their market position through this acquisition. A stronger brand portfolio would also definitely help enhance relationships.

II. Ways to Generate Expected Synergies

A) Layoffs

Layoffs are generally expected when a company undergoes merger and acquisitions. It is estimated that about 4% of the total combined workforce will be laid off due to this acquisition. This is to remove management overlaps due to merging operations in more than 80 countries across the world. These lay-offs will not only come from Gillette’s former operations, but also Procter and Gamble’s management.

B) Business Elimination

Since both Gillette and P&G are operating in the consumer goods segment, they tend to have a few products that overlap each other. Both Gillette and P&G have to sell off some of their product line to remove this overlapping and generate synergy between them. The integration of the companies’ product line is important to ensure synergy exists between them and non-profitable products are removed from their product line.

III. Financial Analysis of P&G

Profit margin for P&G was pretty low from years 2000-2004. P&G experienced an increase in their profit margin after 2001. Gillette on the other hand, had a steadily increasing profit margin since 2000. They also had a higher profit margin as compared to P&G.

This indicates that Gillette’s performance has been increasing steadily since 2000 and they have been experiencing increase in their sales and net earnings yearly. P&G has much higher sales and net earnings as compared to Gillette due to their internationally dispersed distribution system. However, P&G is still unable to match Gillette’s profit margin performance which is higher than P&G.

The FCF productivity of P&G increased from 2000 to 2002 and then decreased from 2002 onwards. Gillette on the other hand, experienced a decline from 2000 to 2002, a short increase from 2002 to 2003 and then a decline again from 2003 onwards.

This indicates that both Gillette and P&G do not have much free cash flow in their company. However, P&G’s free cash flow performance has been much better as compared to Gillette’s performance. This low free cash flow may pose a problem to P&G to acquire Gillette.

P&G has much more free cash flows as compared to Gillette and this can definitely help Gillette improve their free cash flow productivity performance. However, the acquisition price offered for Gillette was $57 billion which is really high and would definitely affect P&G’s free cash flow productivity performance.

IV. Conclusions and Recommendations

Even though the free cash flows may pose a problem in the acquisition of Gillette, I believe that P&G should still acquire Gillette as Gillette can definitely help improve P&G’s financial performance and help provide P&G with a competitive edge in the consumer products industry. P&G will also be able to improve Gillette’s free cash flow performance by their large amount of free cash flows and I believe that there will be many willing investors who would find P&G’s stock very attractive during the acquisition process.

Source by Chloe Hui Min Hung

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source http://blog.bigfinancial.co.uk/procter-and-gambles-acquisition-of-gillette-analysis/

Advantages of Data Center Colocation for Small and Medium Sized Companies

Small and medium sized companies are turning toward data center colocation as a secure and affordable option for their online assets. Today’s online environment holds too many security risks for business owners to simply ignore. Servers need proactive management and aggressive protection against attacks. Colocation includes the hands-on management, speed, space, power, and redundancy of premium hosting options for a much lower cost.

What is Data Center Colocation?

Colocation is a hosting solution in which you share server space with other businesses. But rather than storing those servers in some basement or office building, those servers are actively maintained in a data center, designed with strict safety and security specifications and manned 24 hours a day, 7 days a week. Your server that you own is on their rack in a safe environment. You also get an IP, bandwidth, and reliable power to your server.

Why Pay for Colocation?

Speed. Superior bandwidth. For the same reasons a giant chain store can sell canned goods for a lower price than a mom and pop grocery, data center colocation providers can sell you business-grade bandwidth for less than you can buy it on your own. Remember, bandwidth equals speed. Speed equals a more responsive website. More responsive websites get the sale while slow, clunky ones do not.

Power. The tech world uses the word “redundancy.” What that means is simply this: if your area experiences a wide-scale power outage, your servers keep running because of advanced power back-up systems.

Security. The World Wide Web is a dangerous place for any company lacking a vigilant and aggressive security plan. Reputable data center facilities are manned for physical security breaches and require proper identification just to enter the building. Most hosting companies maintain firewalls and run scanning software to monitor server activity and alert your business to suspicious activity.

Look for These Features in a Data Center Colocation Partner:

• Redundant power and network connectivity
• A network that can handle large amounts of bandwidth
• A datacenter with power backup, proper cooling, and state-of-the-art security
• Access to your equipment when you need it
• Flexible cabinet and cage plans
• Full-range of expert services

Additional features that Are Recommended if Available:

• 50-foot setbacks
• Internal and external closed circuit TV surveillance with constant monitoring
• Around the clock, 24×7 on-site security that requires proof of authorized entry
• Biometric scanners at multiple checkpoints offer an additional layer of security
• SAS 70 Type II certification
• Accommodates nearly 12 megawatts of critical IT load
• Both N+1 and 2N UPS configurations
• Redundant power fed from two separate substations helps prevent power loss
• Two 20,000-gallon diesel fuel storage tanks for backup generator power in case of regional power loss

Keep your company’s online assets up and running smoothly. Data center colocation is a great option for small- and medium-sized companies who need a robust hosting environment but cannot afford the cost of going it alone. Colocation offers economies of scale for the kinds of premium services much larger companies rely upon.

Source by Iohan Reyes

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How To Consistently Make Profits in Online Trading

Over the years, a lot of people have tried to trade Forex to see if they will luckily make money but in the process, these traders fail and vowed never to trade Forex again while the rest of them return later after several years. It is only the 5% left that make profit consistently in online trading. Does it mean that Forex trading is so hard? Why is it that many traders lose a lot of money in Forex trading? It is obvious that they fail to follow the strategies used by successful traders. However, there are factors that cause many traders to lose money.

Forex trading should be taken as a serious business and as a business, success can only be achieved once you are well prepared for it.

Here are the steps you should take to make profit consistently in Forex trading:

1. You must have the right mindset.

The first and the most important thing you need to do is to get the right mindset. You should have this at the back of your mind that you cannot get rich overnight by trading Forex. Forex trading is a very challenging business and like other businesses, you will definitely experience difficult times as you trade. So, if you don’t have enough patience to endure during the down times, it is better you stay out of the Forex market. Also, you must inculcate a good attitude. Why should you do so? This is because you have to respect the market condition and adapt to it and not trying to fight the market.

In the Forex market, money can be made when an opportunity to make money presents itself and certainly in the Forex market, money can’t be made out of nothing. So, Forex trading is not a flexible business because you can’t control the Forex market which is in contrast to what people think it is. But on the other hand, online trading can be a flexible business because you can be doing other relevant things while you wait for an opportunity to present itself. Lastly, if you are just starting out Forex, never you quit your job because it is risky, therefore trade Forex as a part-time business.

Online trading has the potential to generate a lot of money for you but it will not happen at once. Before you start making a lot of money that can sustain you, it will take some time and patience and so stick to your day job. Some individuals stick to their day job, even though they make more money in the Forex market than what they receive as their monthly salary. The good thing about online trading is that you can combine it with your day job.

2. Use a mentor.

Save yourself the stress by not visiting forums looking for a holy grail trading strategy. The common sense is, for you to gain the knowledge, you have to pay the price for it. No knowledge is absolutely free. You may see a great trading strategy that is available for free in some forums, but the detailed explanation about that trading strategy is not found. However, even if the information is available for you for free, a step by step guidance on how to use that strategy will not be found.

Also, in the process of moving from one forum to another, you will end up losing time, energy and money. Why is it so? This is because you have to implement the trading strategies one after the other and this will consume time, energy and money (if the trading strategies are used one after the other in your real account). At the end, the loss incurred is much greater than what you will benefit and so running from one forum to another in search of the holy-grail strategy is not worth it at all.

3. Be disciplined.

For you to make profit consistently in Forex trading or in any other business, discipline is needed. Most traders lose a lot of money simply because they fail to stick to their trading plan. Discipline is not a problem to some individuals but to some other people, it is a serious issue. Following a trading plan with strict discipline is very important. Building a successful business takes time and it can’t be achieved if there is no strong discipline.

4. If you experience a draw down, be strong.

Like I said earlier, a trader must be patient during difficult times. Forex trading is not the kind of job that pays you salary every single month. Definitely, you will experience losing streak periods in the course of your trading career. When this happens, most traders will definitely change their trading strategy. Or maybe they may not emotionally withstand the depletion of their funds when they face losing streak periods. The painful fact is there is no trading strategy that is always profitable in each closing trade and therefore every trading strategy no matter how great it is have strengths and weaknesses. So, you need to have a deep understanding of your trading method and avoid using that method when the market condition is unfavorable.

5. Consult your mentor if your trading performance is not encouraging.

If you have done all you could do and your trading performance is not improving, then you need to consult your Forex mentor for guidance. An experienced Forex mentor is ready to help you rectify your problem or provide answers to questions with respect to the trading strategy that he himself designed. And beauty of the whole thing is that they have an interactive forum where students can talk about the challenges they face.

There are some other measures I didn’t outline in this article however the five measures are the most important and should never be ignored. Other individuals usually say that Forex trading is very difficult or they can even regard it as a gambling game. People will start making negative statements about Forex due to the terrible experience they had during the course of their trading activity. But when they see you making money consistently in Forex trading, they may start changing their mindset. The negative statement people make about Forex trading doesn’t matter but what matters is that they are traders out there who are making money consistently in online Forex trading and you can achieve successful like them once you do what they do.

Source by Albert Johnson

The post How To Consistently Make Profits in Online Trading appeared first on Big Financial BLOG.

source http://blog.bigfinancial.co.uk/how-to-consistently-make-profits-in-online-trading/

1000 Oz Silver Bars – Lowest Markup Over Spot Makes These Silver Bars A Great Investment

Today’s uncertain economic factors have leading investment advisors enthusiastically recommending the purchase of precious metals such as 1000 Oz silver bars. In a time when owning tangible assets is viewed as a necessary part of any investment strategy, wise investors are buying larger bars like the 1000 ounce silver bullion bar because they offer the lowest markup over the spot price of silver.

These 1000 Oz bars are poured from Troy silver with bars normally weighing from 950 ounces to 1075 ounces, or roughly 70 pounds. Each bar is individually weighed and stamped with the exact weight, the purity and the hallmark of the company that produces it.

There are several private companies that offer the 1000 oz silver bar for sale, guaranteeing their weight and purity and shipping them via insured carriers. These larger sized bars may be received and stored personally by the investor or shipped to a secure precious metals repository for safekeeping.

The most popular 1000 oz silver bar brand is produced by Johnson-Matthey, a leading silver refiner known world-wide. Each bar is individually weighed by Johnson-Matthey and is stamped with its hallmark, purity, and weight.

These large silver bullion bars are Comex deliverable and are poured as a bulk product when ordered for shipment.

Reasons for Buying:

The outlook for rising prices in the precious metals market continues to be good. Here are the six primary reasons top financial advisors are adding silver to their portfolios and suggesting you do the same.

• Precious metals are the preferred hedge against inflation and the declining values of other assets including the dollar.

• Purchasing one 1000 ounce silver bar is more cost-effective and easier to manage than purchasing 1000 1-ounce silver bars, for example.

• Precious metals such as silver are a tangible asset and form an excellent foundation to any portfolio.

• Investment experts recommend a portfolio contain a minimum of 10% to 20% precious metals.

• 1000 Oz silver bullion bars have the lowest markup and do not have any of the numismatic premiums that silver bullion coins are saddled with.

• Industrial demand for silver is increasing in areas such as water purification and superconductivity, spurring rising prices.

Conclusion:

If you are looking for an outstanding way to store and grow wealth in a tangible asset, then you should know that 1000 Oz silver bars are the preferred choice of serious investors who recognize the investment opportunities that silver represents.

The outlook for making profits from owning silver continues to be excellent because demand is increasing and prices are continuing to rise. It’s no wonder that savvy investors are allocating significant percentages of their portfolios to precious metal assets like 1000 Oz silver bars.

Source by Chrissie Goldman

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Four Things to Expect From Free Forex Signal Providers

Everyone who knows how this intricate world of numbers and profits moves will agree that Forex trading is quite literally a minefield – one wrong step and all your future endeavours of making it big will be blown to bits. Trading in currency is not for the faint hearted, nor is it for people who don’t fully understand complexities involved in it. Free Forex signal providers however, serve as a guiding light, helping you navigate this minefield, avoid the fallacies and make a killing in currency trade. There are many things you can expect from these service providers – various ways in which they can help you achieve your profit goals. Here is a list of four things that a free Forex signal provider is expected to provide you with:

Reliable trade signals

Until you are ready and prepared to take command of the ship, it would be better to test the turbulent waters of Forex trading under the guidance of a free Forex signal provider. Reliable, accurate, consistent and timely signals offered by these service providers can help you take the right decisions and make a profit in currency trading. The expertise and market understanding of professional trading signal providers can always be relied upon to help you make the right calls.

Variant currency pairs

Different traders select different currency pairs to increase their trade spread and cash-in on market movements. For example, the USD/JPY trade will operate very differently as compared to the EUR/USD. A Forex signal provider that deals in a wide range of currency pairs will be the best choice for you, at least till the time you understand the market better and are able to select the options that you like working with.

Consistent support

Forex trading is a highly technical world for which you will need time and patience to understand. The Forex signal provider must be your guide, available to support you, clear your doubts about the platform, its technical aspects and trade logics, 24*7. For such a company – your profitability and satisfaction hold the highest degree of priority.

High volume trades

One of the best ways to ensure consistent profits in Forex trading is making multiples trades during the day in different currencies and segments. Forex signal providers understand this fact and make sure that you get a large volume of tips and trade signals to ensure you get a fair chance of making money in currency trade.

The right Forex signal provider can make or break your stint on the currency market. Make the most of your money!

Source by Marianne Edward

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source http://blog.bigfinancial.co.uk/four-things-to-expect-from-free-forex-signal-providers/

The Absolute Best Way To Invest in Gold

Properly Investing in Gold

Investing our hard earned money into anything is a bit scary, but investing it into a valuable resource sounds like a good idea right? Well, it can be a great idea when you understand how to invest properly. Most people want to rush out and put their money in silver, gold or platinum because they are valuable. If I were going to put my money in anything it would be gold, it’s a little more stable than silver and not as expensive as platinum. Here are a few valuable pointers on how to properly invest in gold.

Why Invest in Gold

Gold is a form of protection against inflation, currency debasement and global uncertainty. Gold will always be valuable whether it’s in money, jewelry or bullion. There will always be a value on it. Gold is also easily obtainable in its many forms. Gold is a precious metal that is mined across the world and valued by many as a status of power and richness.

How to Properly Invest

Gold Bullion

Buy gold physically at various prices. Purchasing gold coins, jewelry and bars is great way to get started. You won’t want to pay high premiums on the gold you buy. You will want to buy it pretty close to spot price. Spot price is the average purchase rate a person can expect to pay per ounce of gold. Coin dealers and jewelers will add a premium to the spot price because they are purchasing at or just below the spot price and they want to make money on it too.

To avoid getting ripped off when purchasing gold in bars, coins or bullion you will want to establish a solid reason why you want to invest in the first place. If you plan on making it a long-term investment then you will definitely want to buy gold at as close to spot price as possible. If you want to purchase gold to use as money then buying smaller gold coins is the better idea for you.

ETF’s

ETF’s are Gold Exchange Trade Funds, this is a popular way to have gold exposure in your portfolio without having to store the heavy metal. Gold EFT’s track the spot price of gold. They will store their gold bullion somewhere and give investors access to various different types of gold.

For each share of gold EFT you purchase, you essentially own about 1/10th ounce of gold. Owning EFT’s does not mean you actually own the precious metal, it just means you own shares in a piece of gold. With that being said often times EFT’s can be sold short so two people can own the same piece of gold.

Gold Miner Stocks

Investing in gold mining stocks is a riskier way to invest in gold, but it is still a popular option. Gold miners are risky because they trade with the broader equity market. If you go this route make sure that they have good management and inventory.

Don’t make the common mistake of buying small gold miners that are still in the exploratory stage. Buy into a well-established and growing gold miner. To be effective you also must purchase the right amount of stocks. Buy in increments of 10, and get a feeling for the miner that you are investing in before you invest largely.

Overall

Investing in anything is tricky. You have to know the ins and outs before hand or you could make a costly investment. Not all EFT’s, gold bullion or gold miner stocks are the same. Each one will have it’s own pros and cons. However if I were going to invest into gold, I would personally invest in the gold bullion. While the market maybe unstable, the piece of precious metal is more valuable than not communicating at all. I would just simply do my very own research, and find products that will be easily obtainable and be able to keep up with supply and demand.

Source by Kourtney Hunt

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source http://blog.bigfinancial.co.uk/the-absolute-best-way-to-invest-in-gold/

Coin Collectors and Coin Buyers, the 4 Stages of Coin Addiction (Are You a Numismaddict?)

Research shows there are four distinct stages of coin addiction, each progressively more enjoyable. Unlike other forms of addiction, coin addiction doesn’t result in health issues or permanent financial problems. In the long run, coins can always be sold for equal or more value than their original purchases.

The 4 stages are:

1. Accumulation Stage: At first, there is an appreciation for and attraction to bullion coins, commemorative coins, and common date, mint state Morgan silver dollars. At this point the accumulator is just picking up everything available and getting great satisfaction out of each acquisition.

2. Early Collector Stage: The accumulator begins to see the possibility for a collection. They realize that they have amassed what is starting to resemble coin collections. They realize, if they start filling in the holes, there could be a whole assembly of coins with a common theme. It certainly seems innocent enough, but this almost always progresses to the next, increasingly more expensive stage.

3. Late Collector Stage: It’s starting to take more coin purchases and more expensive coins to get the euphoric thrill of acquiring the right specimen for their collection. They start to lie about how much money they’re spending on those little beauties. The credit cards are getting maxed out and they’re looking for other ways to finance their purchases. It’s starting to get out of control.

4. Obsessive Interest Stage: This is the full blown numismaddict stage. They’re risking coin overdose now. They’re spending way too much money on their “habit”. They’ve lost balance in their life and relationships. Their lifestyle is being outwardly eroded. They would rather spend time with their coins than loved ones. They are starting to buy coins rather than pay bills. They are no longer staying within their coin buying budget. They need grander, more rare and expensive coins to satisfy an almost insatiable desire. Denial Rules the Day!

REMEMBER, COIN PURCHASES CAN ALWAYS BE JUSTIFIED!

The Treatment Plan:

Stage 1 and 2 participants should be encouraged to learn more about their interests in collecting and to pursue those avenues. Understand that each new purchase provides a sense of euphoria accompanied by a feeling of immense satisfaction.

Stage 3 requires more tolerance and understanding from family members. Remember, it’s like CHRISTMAS every time the collector gets a new coin. Gently remind the collector about maintaining a balance in life and sticking to a budget that allows for other things besides coins. Have the person keep track of monthly coin purchases to shock the offender back into reality.

Stage 4 starts with family members understanding the nature of this disease. The family must appreciate the numismaddict value of rare, beautiful and expensive coins. Develop a plan for their acquisition. At the same time, try to engage the numismaddict in other interests in life. Also realize that if everything else fails, an intervention with family and a qualified, professional, numismaddict counselor is required. This train has momentum and will be difficult to stop.

Source by Paul St. Julien

The post Coin Collectors and Coin Buyers, the 4 Stages of Coin Addiction (Are You a Numismaddict?) appeared first on Big Financial BLOG.

source http://blog.bigfinancial.co.uk/coin-collectors-and-coin-buyers-the-4-stages-of-coin-addiction-are-you-a-numismaddict/

Who Decides How Much Gold Is Worth?

For private investors, the spot price of gold effectively determines how much gold is worth. The spot price is the price at which gold is traded at a particular point in time and location for immediate delivery.

Note however, that the when it comes to buying and selling, the buy price will always be slightly more than the spot price and the sell price will be slightly less. This ‘spread’ represents the costs and profit margin of the broker.

Other than the standard economic fundamentals of supply and demand, the gold price is affected by other important factors such as oil prices, interest rates, the $USD index, central bank involvement and geo-political tensions to various degrees.

Like all other stocks and commodities, how much gold is worth is determined on exchanges. However, not all bullion trading exchanges are created equal. The two most critical exchanges are the LBMA in London and the COMEX in New York. Between these two financial centers, gold sees most of its trading action.

Other bullion exchanges exist in major cities such as Tokyo, Hong Kong, Sydney, Singapore, Shanghai, Dubai and Zurich. Given this global reach, a gold spot price is continually being established even when the COMEX and LBMA are closed, allowing gold to be traded 23 and half hours every day excluding weekends.

LBMA

The LBMA which stands for ‘London Bullion Market Association’ operates between the hours of 07.30 GMT and 15.00 GMT. It used to be the foremost bullion exchange in the industry but during the crisis of 1968 in the run up to the end of the ‘gold standard’, its importance waned.

Nevertheless, the LBMA is still a leading exchange whose ‘Good Delivery’ list is widely accepted as the ‘de facto’ standard for the quality of gold and silver bars, thanks to the strict standards of assaying and bar quality that refiners must satisfy in order to be listed

COMEX

Nowadays, the most important bullion exchange in the world is the Commodities Exchange of New York. Known as the COMEX, it operates between the hours of 08.30 and 13.30 Eastern Time.

In 1994, the COMEX became a division of the New York Mercantile Exchange (NYMEX) and as such, how much gold is worth, is determined via a procedure documented in what is known as the NYMEX ‘Rule Book’. This is largely based on the price of contracts being traded in the most active futures month.

Source by Auric Taurus

The post Who Decides How Much Gold Is Worth? appeared first on Big Financial BLOG.

source http://blog.bigfinancial.co.uk/who-decides-how-much-gold-is-worth/

Why You Should Buy Silver Now Before the Price Goes Crazy High

“What’s that you say? You’re going to buy silver?” my friend of over 20 years replied, looking at me as if I were about to club her over the head and throw her in the back of my van. Actually, the verbal exchange wasn’t exactly like that, but she did give me an odd look (and just for the record, we own a minivan with lots of windows and very comfortable seating). Think about it for a second, dear reader… if I were standing in front of you right now telling you that I was going to buy silver, how would you respond? First of all, you would certainly wonder who this stranger is and why is he talking to me about silver. Granted, but let’s try to focus on the silver part, friend…

Do you know what the price of silver has done over the last 15 years or so? It went from around $4 an ounce in the very late ’90s to almost $50 an ounce in 2011. That’s quite a hefty return, no? And I can tell you that was only the beginning. “So what has silver done for you lately?” You ask. Well, it’s kind of gone down a little. How “little?” Well, it’s gone from about $50 to its current price of $19 or so. Alright, close your mouth. You can stop giggling too. I know it might sound crazy when I tell you that now is the perfect time to buy silver. Why? Simple – because the price has fallen from $50 to $19! Here’s a little tip for ya’ – Buy low; sell high? Heard that one already? Well, price is low, so it’s time to buy. Could price go lower? Sure it could, possibly a buck or two, but odds are that the bottom is in for this correction and soon prices are going to start going up again. How high will they go? Well, there is plenty of talk these days of silver going to $60, $100, even $200 per ounce; and if our government and the Federal Reserve keep printing $118,000,000 an hour (that’s right, per hour – they are creating $85 billion a month!) we might even might even see silver hit four figures before its all over.

Why is silver going to go up?

I am not a fortune teller, friends, nor I am not a financial advisor (who is basically a fortune teller in a suit, no?) I am not a silver salesman either. I am merely a husband and a father looking around at this world of ours; at the shaky governments and economies; at the bail outs and imminent bail ins; at the real inflation around us (not the inflation rate that the government tells us); at the incessant printing of dollars and euros and most all currencies world-wide, and I know that we cannot continue like this. There are some rough times a’ comin’ and when there is instability, people seek stability and security. In financial-speak, that means precious metals – silver and gold. The time is now to purchase your security in the form of silver and ride the wave of higher and higher prices to come.

Source by Joe Paulson

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source http://blog.bigfinancial.co.uk/why-you-should-buy-silver-now-before-the-price-goes-crazy-high/

Forex Trading Strategies – What Are Your Options?

Forex trading revolves around currency trading. The value of the currency can rise and fall as a result of different factors that include economics and geopolitics. The changes in the currency value are what factor in the profits for Forex traders and this is the main objective of getting into the trades. The trading strategies are sets of analysis used by the traders to determine whether they should sell or buy currency pairs at a given period of time.

These strategies can be technical analysis charting tools based or news based. They are made of a multiple of signals that trigger the decisions whether to buy or sell the currencies a trader is interested in. The strategies are free for use or they can also be offered at a fee and are usually developed by the Forex traders themselves.

The strategies can also be automated or manual. Manual systems require a trader to sit and look for signals and also interpret them so they can decide whether to sell or buy. Automated systems on the other give traders more flexibility because they can customize software to look out for specific signals and interpret them. Trading strategies may not be all that perfect in making money, but when you have a sound understanding of what they are all about, it becomes easier to adopt reliable approaches when trading in the currencies.

Forex Trading Strategy Types

There are so many strategies out there that can be used by Forex traders. The most important thing would be for the trader to decide what strategy matches the kind of trading experience they wish to have and what strategies offer the best signals for interpretation so the best trading moves can be taken. Below are some of the top strategies most traders use and some you should consider if you are a beginner in the markets.

Forex volatility strategies – The Forex market can be volatile, meaning that the prices can make very sharp jumps. Volatility systems are created to take advantage of the price actions and are usually best for short term and quick trades. The systems are also based on volatility increase and whereas their winning percentage of trades may be higher, the profits earned per trade can be comparatively low. This strategy is best for traders and investors who understand the volatility perception.

Forex trend following strategies – These strategies use market trend marketing to guide traders towards their long term trading goals. Moving average, current market price calculation and channel breakouts are commonly used to generate signals and decide the best market direction to take. Instead of predicting or forecasting prices, traders using these strategies only follow the market trend.

Forex scalping strategies – Scalping in Forex involves making multiple trades with each of the trades making small profits individually. When using the scalping strategies of trading, the profits are usually anywhere between 5 to 10 pips for each trade. These strategies require constant Forex market analysis and the trader also need to place multiple trades at once. They can be pretty demanding and traders need to be relatively fast in predicting where the markets are headed so they can open and close positions in the shortest time possible.

Forex pivot point strategies – Pivots make it possible to identity entry points especially for range bound traders. These points are also helpful to breakout traders and trend traders in spotting key points that need breaking for given trading move so they qualify as breakout. Traders who understand pivot and calculations around it will find these strategies quite helpful in trading currencies. It is important to remember that calculating pivot using closing prices of the short time frame reduces significance and accuracy of the point of rotation. The calculations need to be precise because they make the Forex market backbone.

Forex chart pattern strategies – Charts are vital in Forex trading in assisting traders in the markets. There are different chart patterns that can be used when trading, but the most common patterns are triangle and head and shoulder. Triangle patterns occur mostly in short-term time frames and can descend, ascend or be symmetrical. Price converges with low and high creates the triangle leading into the tight price area. The head and shoulder pattern on the other hand is more like topping formation when an uptrend occurs and bottoming formation when there is downtrend. The pattern will usually complete in Head and Shoulder when the trend line is broken.

Forex Renko chart strategies – Renko charts are constructed when price surpasses bottom or top of the previous brick by pre-defined amounts. When this happens, the brick is moved in the next column. White bricks are usually used when the trend is up, whereas the black ones are used when the trend is down. This type of charting is useful in identifying key resistance and also support levels. In Renko charts, time and volume really have no major role. You will find all kinds of trading strategies that are Renko chart based to assist your trades.

Other Forex trading strategies you can use are the Bollinger Bands, Forex breakout, Forex support and resistance, Forex candlestick and Forex swing trading strategies.

Picking the best Forex trading strategy

With so many trading strategies available it can be challenging for traders, especially beginners, to decide which way to take. But using a few tips you can have an easier time choosing the best.

Set trading goals and decide whether to go long term or short term. It also helps to decide whether to trade full time or part time. This way you will be able to choose the strategy that best suits you as a trading individual.

Choose a unique strategy by comparing strategies and what they have in store for you. If a strategy does not seem to lie in your best interest, then it is not the right one for you.

Experiment on the strategy you prefer before settling for it. Experimenting first gives a chance to have a deeper understanding of what the strategy is all about and see whether it has worked for other traders in the past or not.

It is also important that you get familiar with trading styles so you can choose the perfect strategy for your trading. For instance, short term traders should consider trading styles like day trading, scalping, position trading and swing trading among others.

Source by Satvik Mittal

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source http://blog.bigfinancial.co.uk/forex-trading-strategies-what-are-your-options/

The Best FOREX Price Action Trading Indicator – Shift Theory Ratio Price Action Analysis

There is a new category of technical analysis available for trading the FOREX markets. It is called Shift Theory and this new technique is based on Shift Ratios that break down the three main types of chart conditions:

• Choppy Markets
• Up Trending Markets
• Down Trending Markets

What Shift Theory Ratios do is focus on the important data and ignores the data that is responsible for false signals and noise. The Shift Theory trading approach works better than any other form of technical analysis because it focuses on the science of price analysis. Most technical analysis today focuses on the closing price as the main piece of data that is analyzed. The main issue with that is the closing price is a moving target. A lot traders don’t realize that indicators are nothing more than measuring tools and they need to be treated that way. When it comes to measuring price you need stable data to get an accurate reading. I like to use an example of trying the weigh yourself on a scale. If you keep jumping around while you try to weigh yourself then it is almost imposable to get an accurate reading. That is exactly what the closing price does. It changes every time there is an uptick or down tick and that changes the reading of most indicators and that results in a lot of noise and false trading signals.

The Shift Trading Ratios rely on the undeniable facts of market trends. Some examples are:

• Prices on a chart can only go higher if they make a new high.
• Prices on a chart can only go lower if they make a new low.
• Choppy markets have bars that have a high percentage of overlap.

As a trader the Shift Theory Ratios are excellent tool to keep traders disciplined and sticking to sound trading principles. As a example we will cover the reading and indications Shift Ratios give in 3 types of market conditions:

• Choppy
• Up Trending
• Down trending

When market conditions are choppy the Inside Shift Ratio is the plot that measures that type of market condition. What the Inside Shift Ratio does is measure the current bar percentage that is overlapping the previous bar. All choppy markets have a high percentage of bars that overlap each other. It is easy to see on a chart but most indicators simply cannot measure these types of condition because they are based on the closing price.

If the market is up trending then the Upper Shift Ratio is the indicator that measures that type of price change. In up trending markets the bars on a chart should be making higher highs and that is a undeniable fact about upward moving markets.

During down markets the Lower Shift Ratio is the indicator that measures the strength of the down trend. This again is based on the undeniable fact that downward markets must make lower lows in order to go lower.

In the end these techniques work and the proof is in the back testing. A dirty secret many indicators have is they really don’t work and that is why nobody is willing to show any back testing results. So if you want to find the best FOREX trading indicator then you need to take a look at the Shift Theory Ratios. If you want consistent and proven results then as a traders you must focus on the important data and ignore the data that is responsible for signal noise and lag.

Source by David Zielinski

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source http://blog.bigfinancial.co.uk/the-best-forex-price-action-trading-indicator-shift-theory-ratio-price-action-analysis/

Banks That Sell Gold Coins – A Safer Way To Buy Them

Gold investors can purchase gold coins from banks, but not all banks sell gold coins, only some of them do. Banks that sell gold coins are sure to sell authentic coins. This is good for the new investors in gold, especially if you do not know of any gold broker or dealer yet.

Purchasing gold bullion coins at the bank make you have peace of mind since you are assured of getting the right exchange rate for your coins. The price of gold changes every day and usually when you purchase some, it will be based on the current spot price.

They base it on the exchange rate for spot cash prices and since banks are the primary source of information about the current price in the market. Then that is a good advantage to you as investor or even to individual who likes to collect gold for future investment.

Purchasing gold at the bank are safer rather than purchase it online or to any dealer or broker whom you don’t know well. Remember that you are investing a big amount of money so you need to be careful and be safe in dealing of buying gold coins.

There are banks that sell gold coins but don’t buy them, They are known as one way transaction but there are also banks that go for two ways. Selling and at same time purchasing them. Buying or purchasing in the bank is safer and surely guaranteed that it is authentic gold coins.

Aside from banks that sell gold bullion and coins, you can also buy coins at the US mint. You can choose any gold coins you want to purchase since they have their own catalog. The US mint and it is guaranteed safe when you purchase your them from them. Bank and US mint can negotiate if you need for storage of your coin purchases.

In buying gold, you need to think for the safety that you will not be fooled and your assets will be in good hands. Banks can help you with the storage if you need it and one thing more. You need to have some knowledge in regards to gold coins as well. You must know how to check for the markers’ seal, weight, the grade and the stamped to the coins and the certificate of authenticity.

Actually, gold bullion and coins are a great investment since gold is the only thing that will be of value when currency is no good. You will have a good profit if you know how to handle the gold investments. Know some reputable broker or dealer to help you with your gold coins investment.

Gold brokers know a lot of investor or traders since they deal most of the time with them. They can help you progress your investment and have a good relationship with them. The broker can act two ways, either a seller as well as buyer and they are the first person who knows the current price of gold since that is part of their work.

In other state or countries, there are also banks that sell gold coins. Find banks that sell them near your place so that it is easy for you to purchase when you are ready.

Source by Gordon H. Smith

The post Banks That Sell Gold Coins – A Safer Way To Buy Them appeared first on Big Financial BLOG.

source http://blog.bigfinancial.co.uk/banks-that-sell-gold-coins-a-safer-way-to-buy-them/

Why Price Action Trading is the Best Way to Make Money in the Forex Market

Forex price action trading can be defined as trade decision making based upon chart price patterns, the patterns being created by traders simultaneous reactions, to news and world events. Price action trading, is then, a study of human emotion depicted in the Forex price charts and presented to the trader in the form of price patterns, which repeat over and over again across all time frames and all currency pairs.

Before I discuss in detail why trading using price is the way you should trade Forex, I would like to discuss technical indicators. The Forex trader must understand that technical indicators are derived from price itself and as such lag the price action. This means that if you are a technical trader using exclusively indicator based strategies, then unfortunately you are more than likely to fail at your endeavor of trading the markets for profit. Notably, you will be entering the market too late and closing your trades too late when you trade using indicators.

When you derive a technical indicator from price you typically smooth out some of the troughs and peaks of price itself, but more importantly you build inherent delays into the indicator when compared to price, this is vitally important to understand and relates to the point I made above – technical indicators lag and this will cost you money.

If you look on the internet search engines, you will find a plethora of indicator based systems, for sale or for rent, along with volumes of articles, trading robots and other sure fire systems informing you of how can make money using an indicator based system. This is all well and good, however, do these methods and systems really make money?

If we accept that over 90% of traders eventually lose money trading or wipe their accounts clean trading Forex trading and if we accept that the vast majority of those people use indicator based methods to trade the market, I think that tells us something about the indicator based systems themselves.

Indicator systems at best will help you to break even in the markets, whereas price action methods will help you to get nicely profitable.

The study of price is then, the observation of traders activity in the market place, this can be seen and portrayed in the market via the price action pattern. The patterns express the traders emotions.

In my next article I will go into some depth concerning price and start the discussion and explanation of the various types of price action trading methodology that I look at on a day to day basis. Methods that work well in the Forex markets and which are easily seen on the charts during live trading.

Source by Paul Morton Langham

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source http://blog.bigfinancial.co.uk/why-price-action-trading-is-the-best-way-to-make-money-in-the-forex-market/

How To Trade The Overbought And Oversold Commodity Channel Index Like a Pro?

What is the commodity channel index indicator?

The commodity channel index is a momentum indicator developed by Donald Lambert. It reveals the moment when a new trend begins and highlights overbought and oversold conditions. It measures the current price relative to a moving average and oscillates between +100 and -100. Theoretically, the market is overbought when the CCI is above +100 and it is oversold when the CCI is below the -100 level. Please note that theory and reality are not always the same. Quite often, the commodity channel will duplicate or will accurately reflect the price’s movement. Nevertheless, it is common to notice divergence between the CCI indicator and the price. This divergence comes in the form of fake divergences and valid divergences. All valid signals are validated by the price. The CCI is also a leading indicator, but one must know how to use a leading indicator in order to avoid sour disappointments.

After careful observation of this magnificent indicator, we have noticed, shocking resemblances between the commodity channel index and the humble “Bollinger bands”. Bollinger bands are trading tools created by John Bollinger in 1980 to highlight the dynamism of volatility. The bands include one middle band as well as two outer bands that deviate from the middle band. Traders use standard deviation plus and minus two when plotting the “Bollinger bands”. Similarly, the CCI indicator consists of one middle band (zero level) and two outer bands. The upper band is the +100 level and the lower band is the -100 level. It is obvious that the CCI indicator is seeking to play the role of the price within a Bollinger. When one substitutes the price for the CCI indicator and moves the “Bollinger bands” to the outer +100 and -100 levels, there is no doubts that the Bollinger bands and the CCI indicator become perfect substitutes for each other.

After these clarifications, we can efficiently use the commodity channel index (CCI) indicator. Please note that when the CCI period 14 is above +100, the price is usually at the upper band of the Bollinger 14, volatility two; when the CCI period 14 is below the -100 level, the price will usually be at the lower band of Bollinger 14, volatility two. When the CCI period 14 is at the middle line, the price, in most cases, is at the middle line of the “Bollinger bands” 14, volatility two. When we compare the CCI period 50 to the Bollinger (50,2) and the CCI period 20 to the Bollinger (20,2), we find that there are many overt similarities between the Bollinger bands and the commodity channel index indicator. To compare the Bollinger bands to the CCI indicator, one must use the exponential moving average settings for the Bollinger bands. These settings are crucial. Both the CCI indicator and the “Bollinger bands” must have the same period before a valid comparison can take place. Divergences do take place. For instance, when the price is still at the upper band of the Bollinger (20,2) but the corresponding CCI period 20 has pulled back near the middle line (zero), there is a high probability but not a certainty that the price may also pull back to the EMA20. If the price is still at the lower band of the Bollinger (20,2) but the CCI 20 rallies up to the middle line (zero), the price, under normal conditions, will rally up to the EMA20. One can note the same observation when using the commodity channel index (CCI) period 50 and the “Bollinger bands” (50,2). Please note that the “TSTW24” uses the Bollinger (50,2). It is important to remember that the price is the number one indicator, because we are trading the price, not the commodity channel index itself. All valid signals received or derived from the CCI indicator are validated by the price. A signal is one thing, but the entry point is the key.

Trading the overbought and oversold CCI like a pro.

No indicators, either leading or lagging, will ever completely replace the price. Never ever forget that. We are trading the price, not the indicators. One should not seek to complicate trading but to simplify it. When the commodity channel index (CCI) indicator is overbought above the +100 level, many traders will quickly place orders to sell without further verification. These are traders who trade the indicator, not the price, and they will go from one trading system to another trading system and blame their lack of success on everything except themselves. Trading the indicators instead of the price is one major cause of consistent losing trades. The CCI is often overbought right from the beginning of a new up trend or during the third “Elliott wave”. While the educated traders are busy placing orders to buy, ordinary traders are selling and losing abundantly because they fail to recognize that a resistance is broken and validated as a support level, while the CCI is still overbought. Either that, or they did not recognize that a trend line has been broken and, retested and that the price has turned around. When the CCI indicator is overbought, it is alerting traders that, bullish momentum has increased and that the price is in a resistance zone (overbought), period. It does not mean that you should sell or waste your money. Traders must highlight the indicated resistance zone and follow the price. If the resistance is broken and the price finds support above the resistance zone, traders should buy even though the CCI is still overbought. Below are some simple trading rules that, one can follow.

Anytime a signal is given, acknowledge the signal.

Do not enter the trade too quickly; instead, keep your eyes wide open.

Ask the two most important questions: “Is it time” and “Is it the place to enter the trade?”

Wait for validation ( the price must always confirm the signal).

Consider the risk-reward ratio, check the economic news, and enter the trade only and only after validation.

Always use stop-loss.

One should not seek to sell immediately when the CCI is overbought but to wait for either the trend line or a support level to be broken, retested and validated as a resistance level. The price must turn around and bearish momentum must increase. On the other hand, when the CCI indicator is oversold below -100, we will not buy straight away. We will wait for the trend line to be broken to the upside or a resistance level to be broken and validated as a support level. The price must turn around and bullish momentum must increase. If the commodity channel index (CCI) indicator is oversold but a support level is broken and validated as a resistance level, we must sell even though the CCI is oversold. As you can see, paying attention to the price, will aid traders in making excellent trading decisions. The commodity channel index indicator can be oversold right from the beginning of a new down trend, leading unaware traders to buy. Stubborn, aggressive traders usually lose serious amounts of money during the third “Elliott wave” in a down trend, because the CCI usually remains oversold during this bearish wave.

Using the commodity channel index indicator with the “Elliott wave” theory will allow traders to make better trading decisions. The market is considered overbought at the end of the fifth “Elliott wave” in an up trend, and the CCI is also overbought at the end of the fifth wave. On the other hand, the market is considered oversold at the end of the fifth “Elliott wave” in a down trend. At this point in time, the CCI is oversold. Traders will wait for confirmation in these “hot spot trading zones” to take part in the abc corrective waves. Fake overbought and oversold signals are given during the third “Elliott wave.” However, valid overbought and oversold signals are often given at the end of the fifth “Elliott wave.” Please wait for validation before entering the trade. When the CCI is oversold, bullish momentum has decreased. The oversold CCI highlight a support zone. A support zone can break and become a resistance zone. In this case, we will sell even though the CCI is still oversold. When you sell, pay attention to the nearest support level; when you buy, pay attention to the nearest resistance level. Do not buy right into a resistance level. Instead, wait for the price to cross above the resistance level, and vice versa. The overbought or oversold CCI can indicate the beginning of a new trend. Do not trade against the new trend.

On the 4th of March 2010, IBM’s daily chart showed that, the commodity channel index period 14 was oversold (below -100), highlighting a support zone around 127.98. As ordinary traders were busy placing bullish bets, the price broke, retested and validated the support level as a new resistance zone. The CCI was still oversold when the bearish momentum was increasing. Naturally, the price went from 127.98 down to the 116.00 level from the 4th of March 2010 to the 6th of March 2010, a huge drop but a serious gain for educated traders. The drop was fast. Many traders who were buying the oversold CCI did lose, and those who failed to apply the five per cent money management rule also lost. Therefore, traders need to master the oversold CCI. The inverse scenario took place on the 22nd of December 2010. On that day, IBM was at 145.95, but the CCI period 14 was above +100 (overbought). The CCI period 14 was highlighting the resistance zone between 145.50 and 147.00. As always, as soon the CCI period 14 was overbought, the smart traders highlighted the identified resistance zone and waited for validation. I use the “TSTW SYS 08” in this 22nd of December case, because anything is possible here. The price can go up, down or horizontal. Do not try to guess it, and do not be too confident. On the contrary, do be calm and, wait for your turn (so to speak). While ordinary traders continued to sell IBM without further verification, the price broke and retested the resistance zone from the 6th of January 2011 to the 11th of January 2011. The price turned around on the 12th of January 2011 after retesting the resistance zone. Once again, uneducated traders lost when the price continued the movement to the upside. From the 12th of January 2011 until the 25th of January 2011, IBM was rising and the bullish momentum was rising, even though the commodity channel index indicator period 14 was in the overbought zone. Without doubt, price can rise when the CCI is overbought, and it can fall when the indicator is oversold. On the 25th of January 2011, IBM reached the 161.44 price level, which was a serious move. Many other examples are relevant, but their pattern remains the same. This strategy remains valid whether, you are trading currencies, stocks, options, futures, or any other financial instruments.

The price is the most important and number one indicator. It must confirm both the overbought and the oversold commodity channel index signals. The overbought or oversold CCI signals are neither signals to sell systematically nor signals to buy without further verification. The ability to “filter out fake signals” and to understand both the language of the price and the language of the overbought and oversold commodity channel index will allow traders to enjoy their trades rather than endure their trades. We hope that, you find this article useful and that you will put it into practice in order, to avoid losing money. Do not guess the price; instead, follow it. Trade like pro, or learn to “trade like a pro.”

Source by George Beaulieu

The post How To Trade The Overbought And Oversold Commodity Channel Index Like a Pro? appeared first on Big Financial BLOG.

source http://blog.bigfinancial.co.uk/how-to-trade-the-overbought-and-oversold-commodity-channel-index-like-a-pro/