Net Invest

While a cult of Peak Oil adherents fret about the end of the hydrocarbon age, we’ve been focusing on trends that will provide buffering to the upcoming declines in oil production. Don’t get me wrong, I’m not saying that Peak Oil won’t happen, however the dreaded peak may turn into a downward sloping plateau supported by higher prices. This high price plateau should buy the planet enough time to start thinking about conservation and using alternate energy sources.

One little known fact about the oil business is that the majority of the oil discovered to date will never be produced. Engineers use the term “recovery factor” to describe what percentage of the “original oil in place” or OOIP will be produced. In the United States it is estimated that 66% of the oil discovered to date or the OOIP is left in the ground.

State oil companies control approximately 80% of the world’s oil reserves. The vast majority of these countries are not friendly towards the United States.

The discovery of giant oilfields today is hampered by the fact that giant oilfields are the ones that are discovered first in an exploration cycle. The longer we look for them the less likely we are to find them. Giant fields are usually discovered first.

Matthew Simmons has pointed out that as much as 70% of our daily oil supply comes from oilfields that were discovered prior to 1970.

Of course new technology can increase the size of the discovery universe by allowing drilling in increasingly hostile conditions. For example, 75% of Brazil’s oil reserves are under at least 400m of water. Without deep water drilling technology this oil would never be produced. Brazil’s recently announced Tupi discovery is a good example. It occurs in ~2100m of water. Petrobras (PBR), controlled by the Brazilian government, owns 65% of this ~8 billion barrel field.

A confluence of factors are pointing to a developing boom in enhanced oil recovery (EOR) projects. Increased oil recovery is going to require the implementation of EOR technology on an epic scale. Investors should take note.

There is no doubt that a new generation of oilfield hackers will be getting much more oil out of mature oil fields.

According to Schlumberger’s Oilfield Glossary, the three major types of enhanced oil recovery operations are:

1)chemical flooding (alkaline flooding or micellar-polymer flooding).
2)miscible displacement (carbon dioxide [CO2] injection or hydrocarbon injection).
3)thermal recovery (steamflood or in-situ combustion)

We have found public companies active in all 3 categories and will be profiling them over the coming weeks.

Jim Letourneau, P.Geol. is a geologist, speaker, investment newsletter editor and investor relations specialist living in the heart of Canada’s booming oilpatch, Calgary, Alberta.

Jim is the editor of the Big Picture Speculator Newsletter and Blog.

Landlords: When you are on vacation, who do your tenants call when the furnace stops working? Do you take your phone with you, hoping you will have cell phone coverage? Who would get the call if you had a fire?

With some simply planning, you can easily get out of town and relax knowing your investment property is taken care of.

Prep prior to vacation:
1. Find a vacation buddy that will take emergency calls when you are out of cell phone coverage. This may be your caretaker, a friend, or relative. Make sure they are familiar with your properties and have access to your keys and contractors phone list.

2. Have all your calls routed through one number. Set it up to forward during your vacation or change your outgoing voicemail message giving your vacation buddy’s cell phone number for emergencies only.

3. Build a list of contractors and handymen that you use on a regular basis. Leave that list with your vacation buddy and also bring a copy with you on your vacation.

4. Mount a lock box on every property or leave all the keys in a locked store room to make it easier for workman to access the property if you have to make arrangements when out of town.

5. Even if you don’t have a caretaker at the building, at least identify a trustworthy tenant that you can call to get an honest assessment of any situation.

When on vacation:
1. Be firm with your tenants that non-emergency requests must wait until you return.

2. Give your vacation buddy your travel schedule and emergency contact numbers in case he must absolutely get in touch with you.

3. Leave a copy of your contractor and tenant phone lists with your vacation buddy so he can make calls if necessary.

4. Leave your keys with your vacation buddy and/or make sure he has the combinations to the lockboxes at the properties.

5. Leave your vacation buddy funds or a credit card to purchase materials in an emergency to repair almost anything.

6. If you can’t completely ignore your investment property for too long, set up a pre-arranged date and time to call your vacation buddy to check in.

Whether you are headed out of the country for a week or just to your parent’s house for the weekend, it is important to have thought out how you are going to manage your investment property when you are gone. This will make your tenants happier and your vacation more pleasant.

Scott Ficek owns and manages almost 30 investment property units from single family to multi-family. Find his website at www.minnesotainvestmentrealestate.com. He is also a Minnesota Real Estate Agent with RE/MAX Advantage Plus in Minneapolis and helps new and seasoned investors buy and own Investment Property.

The Roth IRA is relatively new to the investment world, having only been on option since January 1, 1998. It was created as a result to the Taxpayers Relief Act in 1997 to help Americans better save for their retirement.

For some people (I generally think that in the long run, the Traditional IRA is the better bet for most people due to getting a tax break up front and anticipating lower wages and thereby lower taxes in retirement), the Roth IRA is a better choice for their investment needs than the older Traditional IRA for several reasons. Especially for military personnel who are on active duty in a war time situation, their compensation is tax free, and therefore any contribution they make to their Roth IRA is after tax dollars, even though they were not taxed on their earnings.

A Roth IRA can also be especially beneficial to the entrepreneur that anticipates higher wages in retirement due to past business activities that pay off in retirement as passive income. But for most of the W-2 type earners, the traditional IRA works out better in the long. But without further ado, let’s look at some things with regard to Roth IRAs.

The Benefits

1. All qualified contributions are made with after-tax dollars and therefore all monies in the account, including earnings can be withdrawn tax free with certain provisions.

2. Contribution eligibility is not restricted by active participation in an employer’s retirement plan.

3. The minimum distribution rules don’t apply. Unlike the traditional IRA, you don’t have to draw on your Roth IRA at age 70, which means your earnings continue to grow tax-free.

4. You can take certain early distributions without paying any early distribution penalties.

Contributions

1. If you are under the age 50, you can donate as much as $4,000 in 2007, and $5,000 in 2008.

2. If you are over age 50, you can donate as much as $5,000 in 2007, and $6,000 in 2008.

Eligibility

1. You or your spouse must have compensation income equal to the amount you have contributed.

2. Your modified adjusted gross income can’t exceed certain limits. For the maximum contribution, the limits are $99,000 for single persons and $156,000 for married individuals filing joint returns. These dollar amounts apply through 2007.

So if you meet these eligibility requirements, and hope to make more money later in life, it may be to your advantage to invest in a Roth IRA vs a Traditional IRA. If possible, you may consider using both options.

Get more great finance and investing tips at Jeffry Evans’ personal finance blog. What is a Roth IRA? is just one of many great articles you will find at Personal Finance Resources.

Searching for that dream home in Spain is a time effort mission, but without the time put into researching, you may end up with something that is less than satisfying. Researching the area you have set your heart on is the best step to make for finding that dream property. For those who have found their dream spot, searching for a house is the next step and to do this people will need to travel abroad.

One of the more popular destinations for expats is Costa de Almeria. This is situated between Costa Calida and Costa del Sol. One of the most beautifully scenic provinces, it is aptly known as ‘the garden of Spain’ of the Southern Mediterranean. Many have sought to find property in Costa Almeria, making it popular amongst retired folks and families.

Property in Costa Almeria has seen an increasing number of demands from people abroad, with tourism of the area rising. This has not only become the hot spot for people to live in but also a good prospect for investing. Many who buy a property here are likely to rent it for visitors of locals. In addition, this region offers consistently warm climate, the hottest in the Andalusia region and with the most sunshine period every year.

Recent has seen Costa Almeria become popular, prior to this it was one of the more isolated areas of Spain. It is also largely maintained in its original form. This is one of the quieter village areas and has not been converted into a tourist town. Much of its authentic features and fishing village has been preserved; giving it its own characteristic and making it stand out from any other tourist area.

Recent changes have included new infrastructure improvements, road improvement and new facilities that offer guests, tourists and potential buyers the opportunity to enjoy the surrounding area for its natural beauty and enjoy their stay with extra activities. With all of these changes, came a result in the impact of property prices. This raised the purchase price and increased tourism.

As further developments occur, property prices in Costa Almeria begin to rise. Currently the prices are at a steady rate and are affordable for first time buyers. However, some properties situated nearer to the coast are more popular and are more likely to be sold quickly. These properties tend to be more expensive and see a lot more tourism than any other part of the area.

Prices range between 68, 000 pounds for an apartment to 168, 000 pounds for a detached villa, therefore, there is more scope and opportunity for people to buy. The flipside is that Spain has a very different policy for new homebuyers to Britain, therefore, for those looking to buy in this area will need spend a reasonable length of time researching the property market, legal rules and regulations, and the Spanish real estate. If in doubt, seek professional advice and always stick to an independent solicitor.

All buyers looking to buy in Spain must be aware that before purchasing, you must apply for an NIE number, in person. This will take time to look into, so once you have received this number you can start making offers. Normally when purchasing a property in Spain a ten percent deposit is required from the buyer. Once this deposit has been the buyer should know that if they decide to pull out they would lose all of the deposit, however, if the seller pulls out they must then reimburse double the deposit amount. Therefore, you would receive twenty percent and not the original ten percent of your deposit.

Fees and taxes amount to around ten percent of the purchase. Transfer taxes prices can vary with resale and new build properties, usually resale and new builds charge at seven percent, only new builds charge an extra one percent on stamp duty. Spanish lawyers charge around one percent of the final purchase price and real estate agents can charge between two and fifteen percent.

Anna Stenning is an expert on property in Costa Almeria, having researched this area for a potential new home.

Trying to make money from the markets even armed with a set of rules is likely to be met with failure. Over 90% of traders fail to make consistent money in the markets because their expectations are beyond their skill levels and their resources. Ill-equipped they are easy prey for the trap that is the financial markets.

Skills include knowledge and knowledge starts with the basics, but it doesn’t end there. Knowledge means understanding how the brokerage side of things works and how your trading platform works, your legal requirements, your method of analysis and process for trading and much more.

Then there is skill level. If you’re hopeless at fixing a computer, what are you going to do if it crashes right at the point where you’ve placed a trade but haven’t put your stop loss in yet?

What about your math skills? Can you quickly determine the exchange rate between your own currency and the currency the asset you want to trade is in, and determine the effect this will have on your own account?

Do you know how to calculate percentages for risk management (do you even know what that is)? This is highly important because it determines how quickly your account diminishes with a losing streak.

What about your emotional level? Are you quick tempered or do you beat yourself up easily? Maybe you’re strong and resilient or have you come from a disciplined background. Either way, these emotions all have their place in the scheme of things.

Having a poor emotional habit (such as being impatient), doesn’t mean you won’t succeed at trading, but it does need to be addressed, however you must also look for your strengths, as these are pillars to your success.

It’s also very important you understand what your resources are. These include your capital, and how much of that can you afford to lose? Why trade a system requiring a large capital base if all you have is $10,000.

Time is also a resource. How much can you allocate to trading, learning, back-testing, managing etc? Do you honestly think trading is just placing trades? The longer you are a trader, the less learning time will be required.

Skills, as mentioned before, these are resources too. Are you good at certain things but need help with others such as using a computer? Math is an obvious one, but there is also the writing of journals and logging your trades, keeping accounts and so on.

Strengths are resources. When you are strong at something such as being disciplined this will become one of your assets and one of your edges in trading. Know what you’re strengths are.

Software and hardware are resources. Do you know how to use your trading platform? Is your internet speed and your computers processing power sufficient for your method of trading?

When you list your skills and resources, and everything you can think of that may contribute to and affect your trading business, you’ll find choosing the right style and method of trading that is going to help you achieve your goals that much easier.

You won’t spend good hard earned money on trading systems that can not possibly function with your list of resources. It is better you know yourself, your resources and what you can bring to the markets than trying to fit into something created by somebody else who has a completely different list of skills and resources.

Dean Whittingham created A Traders Universe - Trading System Development in 2005 as a resource site for traders of all levels, with education, courses, brokers, tips, free videos, newsletters, trading systems, simulations and a free 7 step process for building a profitable stock, futures or forex trading system. His coaching program is at Pentagonal Trading System Development

High net worth individuals are investing in properties of a varied nature. There are those that serve them for their living purposes, while there are others to earn them major yields. These could be resorts and holiday homes to hotels and the like, where holiday makers throng during vacations. The high net worth individuals are also investing in racing cars, horses, jets for private and commercial use, yachts and boats.

Along with on-line financial research, the high net worth individuals are constantly tracking information on shares trading, travel, news and technology advances. They are becoming more and more net-savvy, according to the real estate professionals. The reason behind this is their tremendous capacity for investing. Luxury real estates continue to grow on the strength of the purchasing capacity of the high net worth individual.

Financial management tools now available in the market enable the high net worth individual understand the value of his high-end, real estate holdings which run into multiple properties. Today, high net worth individuals are glancing in the direction of luxury properties on islands.

With the number of high net worth individuals increasing, the right properties are running short. Properties that high net worth individuals try to locate are falling short of meeting with the expectations of the buyers. Properties have been selling out like hot cakes when the right kind of property is available or identified. The criteria for locating luxury properties for the high net worth individual are different from those for the common person.

Time is one of the criteria for high net worth individuals for who distance or proximity, accessibility and convenience are a priority. Prestige and lifestyle are two of the other criteria which are taken into consideration when locating luxury properties. Hence, to remain ahead of the common crowd, the high net worth individuals are constantly on the look out for properties approachable by private jets and more so on islands which are away from the ‘madding crowd’, yet approachable by them at short notice and for short periods of visit.

Properties that meet with the criteria of the high net worth individuals should be in close proximity to the mainland of residence. The house should be so architectured that the occupants should be able to capture the surrounding view from each of the rooms. These properties are created with the most luxurious of interiors, having sourced material from different parts of the world, like roof tops from India, doors from Sweden and windows from the US, granite from China and fireplaces from Holland.

The entire place is made to exude an impression of luxury with its number of rooms, spaciousness and lighting, the landscaped gardens and the driveways. The floors are richly carpeted, with a mix of modern and antique furniture and artifacts. The drapes too are rich and lend individuality and character to each room. A rich collection of books goes to make up a much treasured library to complement their home. Many of these properties are sea facing or on beaches from where the high net worth individuals are able to sail out on their private yachts.

Real Estate Investments in 2008 are a bargain for high net worth individuals who can afford to buy and hold properties. This Real Estate Investment Company specializes in finding wholesale investment homes for investors at no extra cost. Their website is http://www.realnetusa.com

Smart real estate investors make more than decent income by investing in foreclosures bank owned homes or real estate properties. You could do the same too.
Investing thru foreclosures bank owned can be a lucrative way to make a living.

Distress sales coming off bank foreclosures often represent a great deal for home buyers or real estate investors. But this distress sales or power of sales are not easy for the average Joe to find.

It will take a lot of research and scouring the newspaper and classified ads to be able to find a foreclosures bank owned property. But there is a way to get your hands on this very enticing pieces or types of homes or real estate properties.

What an irony, people making great deals out of somebody else misfortune. Imagine yourself on the receiving end of this crazy reversal of fortunes. One being unfortunate to foreclose his or her home or property and the other one making a huge profit out of these foreclosed properties. That is not fair! But things happen. On the bright side of things, it is not that hard to obtain some information about the availability of these distress sales or power of sales.

For some people who are interested in these enticing and great deals coming off foreclosures bank owned homes and real estate properties, you would be glad to know about a new free computerized service. This free computerized service automatically searches and downloads a current list of all properties every day.

Once you got hold of these no obligation and free information, you will now have the current list of foreclosed properties on the market. You can start to search for the property or home that interest you and see if it fits your price range. Best thing about this service every week is that, it is free and do all the hard work for you.

Having the current list report of foreclosures bank owned properties gives you the inside advantage over the average individuals vying for these well sought after real estate properties. Properties under the foreclosures bank owned can be found all over the place. The thing that makes it hard to find is that, it needs patient and scouring of the newspapers and classified ads.

There are so many online sites where you can go and obtained these services for free and be on your way to a great deal, much better it could the deal of your lifetime. All you have to do is subscribe to their free service and no obligation service and wait for them to be delivered to you in no time.

There are other ways where you can get information, records, and list of foreclosed bank owned real estate properties. You can directly contact your local bank or financial institution and ask for it. The bank might not give you the full details but will give you some information on some properties. From this list you can start to check and assess which fits your liking and suits your financial ability to obtain one.

Whether you are under threat of foreclosure or trying to invest, this can get you going in the right direction. Listings for a foreclosures bank owned properties may be your best option for a great deal on real estate property investment.

Invest in Foreclosures Bank Owned or Consolidate Debt Loans for Your Financial Wellness go to: http://www.LingWellness.com

The Unemployment Report, also referred to as the Non-Farm Payroll (NFP) Reports, is a major indicator of a country’s economic health, and one of the most anticipated economic reports for investors in all markets, including the Forex.

The Unemployment Report may be released at different times for different countries, so make sure to know when this information comes out for whatever nations your currency pair is from. In the United States the Non-Farm Payroll Report is released on the first Friday of every month by the U.S Bureau of Labor Statistics, and often times will affect at least the short term action in the Forex market in regards to the U.S. Dollar.

This report, in the United States, includes roughly 80% of the paid workers in the country and excludes government, farm, and non-profit employees. This report is used as one of the biggest measuring sticks for a country’s overall economic health, which logically will affect its currency strength and thus affect the Forex market.

That part is true of any country’s non-farm payroll report, is that it is one of the biggest indicators of a nation’s overall economic health and will almost always have an impact on investment and trading markets.

The Unemployment/Non-Farm Payroll Report is one of the major five economic reports for each country that traders jump on, the other four being interest rates, consumer price index, trade balance, and retail sales.

Even among all these, the unemployment report often gets the strongest attention, and is considered one of the most accurate economic indicators of a country’s overall economic health, which makes sense. The more people who are working, the more currency you have being made and spent in a nation’s economy.

You’ll want to know when the reports are released. For example, if you are trading the US Dollar and Euro, then you’ll need to know that the United States and European Union release different economic indicators on different days, meaning the unemployment report for the United States may come on a different day than the reports from the European Union. If you want to get the maximum information for this currency pair, then you’ll want to know the information for both.

The same idea applies to the Japanese Yen, or any currency you’re trading. You want to know when all the reports become available so you can stay on top of the current financial news and end up a Forex winner!

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

The internet has made some very difficult transactions easier to execute than they were before now. One of these transactions is investing and trading stocks over the internet. It has been statistically estimated that in the last 5 years alone more millionaires have emerged than in the previous twenty years. This of course is as a result of the access to information and the ability to buy and sell with ease. One of the many ways people have made a lot of profit online is by the buying and selling of shares. To start trading online though, you will need an online stock trading account.

This is possible by having a stock trading account. Opening an online stock trading account is easy to do. It won’t take you time because you can set one up very easily. The very first thing you need to do is find a reliable online stock trading platform or service providers. This can be done by searching for them and investigating them online. You can also ask some of your friends and colleagues and see what trading account they’re satisfied with. Make sure you also find out the fees and rates that come with the account and the trading fees for stocks.

To open an online stock trading account, you will need to provide personal details such as your name, birth date, your home and office address, your various phone numbers and other information so that they can verify and then create your account. For most new users, it is required that the trader be above 18 years. But these days, it is possible for kids to open stock trading accounts online. But in cases like this, the childrens’ parents will be the custodian of the account. This is to make sure that you’re aware of how your son or daughter trade. Imagine what would happen if a child was to place a trade of $900,000 for just nine thousand (9000) shares of a particular company only to find that the price of the shares have dipped to $40 per share. So, in most cases, the trader must be deemed mature enough to make financial decisions. For the kids, the child must be at least 13 years old.

One other thing that you will have to do when carrying out your registration is the inclusion of password questions. These are meant to protect your account against online hackers and thieves who would want to steal your money. Sometimes, you are even issued a certain pass phrase that you are supposed to type in after your password. This would only be known by you since they are encrypted. Therefore, even you will not be able to access your account page unless you enter the image, word, or phrase.

If you have more questions about opening an online stock trading account then visit a local headquarters of companies such as Scottrade and eTrade. Both have hundreds of locations and their associates will help you answer any other questions that you might have.

To find out more information visit How To Invest In Stocks. Sign up for our Free Stock Picks Newsletter to find out how our last stock pick, Netflix, could have helped you gain a whopping 31% in less than 2 months. Technical Stock Trading

It can be difficult for someone in the financial services industry to know how the investor feels, especially when first choosing which advisor to work with. I recently had an experience that put me in your shoes for a change.

A couple of mornings ago, my teeth began hurting for a short time after I brushed them. It had been awhile (too long) since they were cleaned so I decided to go to the dentist for a cleaning and check-up.

I only have one set of teeth and I know that they need to take care of me for the rest of my life. Unless I want to exist on soft food, it’s vital that I take care of them. Likewise, someone retiring only has one nest egg and their lifestyle and ability to remain retired will depend on what happens to it. Make a mistake and you can lose a good portion of it.

How do you choose an advisor? How do you choose a dentist? I could look in the phone book and I can ask people that I know whether they are pleased with their dentist. Still, how do I know if their experience with a dentist is going to be the same as mine? It’s not like you can interview a dentist, get a price list and an extensive list of references!

Worse, the reason I was looking for a new dentist was because I wasn’t pleased with the dentists I’d used in the past. Surely this time I would find one that I would like! So I called a dentist that seemed to do a good job for another family member and I set an appointment.

A red flag went up during the first call. I asked for an appointment after the stock market was closed for the day and amazingly, they just happened to have had a cancellation and I could get in that very day! Having a sales background, I know that’s a common tactic to use because you don’t want to give the impression that you aren’t busy.

Another red flag was raised as soon as I walked into the office. There was leather furniture, a cafe and a plasma screen television. The coffee table featured literature on various cosmetic improvements. The plasma TV, it turned out, was just playing a loop designed to sell those improvements. I never realized that having whiter teeth would have such a positive impact on my entire life!

The phone sales tactic I picked up on was confirmed when I heard the receptionist say the same thing to others that were calling in. In the financial services industry, these are seen as harmless statements. “It’s no big deal, they’ll never know,” the advisor might explain to the assistant. Maybe I’m old fashioned, but I don’t want to be treated that way and neither do my clients.

Soon, I was ushered into the chair where I thought I was going to have my teeth cleaned. After a few pleasantries, the dental assistant said that she needed to take some x-rays and that they recommended the 360 degree one. “It is $199 for both sets, is that OK?”

While examining my gums she mentioned that oral cancer was very hard to detect and affected many people. They had a test that would screen for it and it only cost $49 would I be interested? No.

My appointment was for a cleaning. But all I received was the x-rays and the initial consultation. It’s possible I have a cavity under one of my existing fillings and the dentist recommended it be fixed, not with a traditional filling but with a new crown that would be much better.

I left feeling like I paid $200 for some x-rays and a sales pitch. The full cleaning, it turns out, will cost over $500! That partial crown would only be $850! For comparison I called another dentist. This one seemed to be more old school. His cost for a cleaning? $110.

Have you ever felt like I did after going to an investment advisor? Undoubtedly, some of you have and I am ashamed to say that it is becoming more common. There are advisors out there, though, that are more focused on your needs than their own. Trust your red flag indicator, don’t move quickly, and do extensive research on any recommended products.

Nationally-syndicated financial columnist and Certified Financial Planner(R) Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA.

Read more or ask Jeff a question at www.guardingyourwealth.com.

If you’re going to be a successful Forex trader, then part of that involves learning what profitable Forex traders already know. One of the major movers of the Forex market are the economic reports of each nation.

This isn’t just restricted to the United States, either. Traders looking at the Yen, British Pound, Canadian Dollar, or Euro (or any currency, for that matter) will look at the economic news reports that are released by each of these nations.

There are many minor economic reports, some of which can spill over into the larger reports (look at the U.S. Housing bubble, for example), and while the “minor” reports are useful, this is going to concentrate on the big five, because these are the five major economic reports that will have the strongest and most immediate impact on the Forex market.

These are also the five reports that are acted upon by the most traders, so being able to keep track of these are critical if you’re going to be able to keep a finger on the pulse of the Forex market.

The five major economic reports to keep track of are:
1. Unemployment/Non-Farm Payroll Reports
2. Interest Rates
3. Consumer Price Index
4. Trade Balance (Deficits vs. Surpluses)
5. Retail Sales

Unemployment/Non-Farm Payroll Reports
No matter what you’re trading, this is always one of the most important reports about a particular area’s economy. A low unemployment percentage is one of the strongest indicators of a strong, robust economy. Likewise, the opposite also applies. A country with a large unemployment rate is going through hard times.

Surprises in anticipated unemployment numbers can have a strong effect on the Forex market, as well. For example, if the unemployment rate is expected to be around 6.5% for the nation, and the report comes out with 4.9%, then that nation’s currency is going to strengthen thanks to the unexpected good news.

Interest Rates
Interest rate changes directly affect the strength of a currency. A higher interest rate will usually cause a stronger currency because it will attract foreign investors and traders. Interest rates are one of the BIGGEST key influences in driving a currency either up or down; especially since carry trades remain popular among Forex traders.

Consumer Price Index (CPI)
The Consumer Price Index is a monthly report that gauges prices across the country and compares it to salary. Basically this means it tracks inflation, which is a major factor in the health of any economy. A sudden jump in inflation is never good news, and in some nations (see Zimbabwe) it can be absolutely disastrous, so keep an eye on when these reports come out.

Trade Balance
The trade balance refers to a nation’s trade surplus and/or deficit. This measures how much a nation exports versus how much it imports. A deficit means you bring in more than you send out, while a surplus is the opposite. Often times you may hear “trade deficit” referring to the United States, but this is not necessarily a bad thing - it depends on the situation and why the balance is tilted the way it is. This is also a monthly report in the United States.

Retail Sales
A nation’s report of retail sales may be the best indicator of how the common person feels about the economy. In the United States this is a monthly report of how sales are going for individual businesses. Some parts of the year are going to be much busier than others. December, for example, will always be expected to have great retail sales because of the Christmas holiday.

Knowing what these reports are and how they affect the markets will help you make better fundamental decisions when trading the Forex.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

One of the primary methods of making a profit on the foreign exchange or the Forex market is to be able to purchase and sell currencies in such a way that whatever fluctuations there may be in the prices will end up helping you to earn a tidy profit. Therefore, understanding the meaning and nature of foreign exchange rates is crucial to your success in Forex trading and though it might, on the surface, appear to be a simple matter that anybody can learn, in reality it isn’t all that straightforward a subject and therefore requires some in-depth knowledge prior to a person being able to succeed in Forex trading.

A Rich History

Actually, there is a rich history behind the foreign exchange rates so you need to understand the importance of understanding why things happen the way that they do on the Forex market and also educate yourself in making the right decisions so that you can capitalize on your knowledge.

So, to actually comprehend foreign exchange rates, you must be certain of what they in fact really are A definition of foreign exchange rates would be that they are the value of one currency as it relates to a second currency.

Therefore, when the exchange rate between two different currencies is listed as being a first currency fetching 1.20 of the second currency, then the foreign exchange rate is 1:1.2. Additionally, you will also need to comprehend why currencies have values that are different and this can be best explained by the fact that after the valuation of currencies throughout the world moved away from ‘gold standards’, the prices of currencies started to be pegged against the US dollar, and other currencies fluctuated upwards or downwards as they related to this currency in a range of not more than a single percentage.

Hence, this was the start of foreign exchange rates and it was commonly referred to as fixed exchange rate. Since these changes in the method that the trade is carried out in recent times, both the fixed exchange rates and the gold standard have been abandoned so the forex exchange rates are now typically known as fluctuating exchange rates.

In reality it means that presently forex exchange rates are influenced by the forces of the market and when demand for a specific currency exceeds its supply then the Forex exchange rates will end up going higher for the currency being demanded, and the opposite would occur should the demand decrease.

Now that the US dollar is the base currency in Forex trading, the US government merely prints additional dollars and then sells these new dollars to various countries in the form of debts, though due to rising oil prices as well as stronger world economies, currently the US dollar is losing its vice like grip as the predominant currency of the world which is eroding the exchange rates of the dollar and the United States closest trading allies are affected as well.

Listen to Corbin Newlyn as he shares his insights as an expert author and an avid writer in the field of finance. If you would like to learn more go to Forex Trading advice and at Forex Broker tips.