Saturday, November 28, 2009

Trading Forex - Dollar and Inflation

For a number of years US economy has enjoyed a relatively low inflation rate. According to official statements, annualized inflation over last decade or so has been in very low single digits. Depending on the source and method of calculation, the rate has been about 2. That is despite massive infusion of funds into the economy in the form of very low interest rates.

That course of action has been long supported by US financial authorities, the FED. For years the central bank has been concerned with growth, doing everything it could to fight economic slow down and stagnation. It was done in the form of cutting interest rates and seemingly endless liquidity increase. Let's not forget about lending hand in order to bail out large financial institutions from the masses their questionable practises created. In fact, month after month we have been treated to speeches that inflation is under control and not a threat. Until now.

Published inflation figures pertain to the so called "core inflation", compilation of prices on consumer goods, which excludes food and energy. Runaway cost increases in oil/gas and main food commodities are finally being reflected in the number, as their effects trickle down to other areas of consumer goods. Some of the newly released figures are stunning-soaring energy costs pushed inflation up in May at the fastest pace in six months, according to data released Friday by the U.S. Labor Department. Food prices had the biggest one-month leap in 18 years in April. That's something.

Higher energy and commodity prices also fuel inflation pressures in other parts of the world. They are being acutely felt in Asia in particular, as the region continues to function as a commodity importer/manufactured goods exporter. One way countries can offset such inflationary pressures is to allow their currencies to appreciate more rapidly. All of a sudden, within a couple of weeks, the once neglected subject of inflation has catapulted itself onto front pages.

As of this writing in mid June, finance ministers of the of the Group of Eight industrialized countries (G-8) are holding a meeting in Osaka, Japan. Main subject have been inflation causing soaring oil and food prices, which are emerging as serious threats to global economic growth. The ministers are vowing to work together to address the problem. They urged oil-producing nations to increase production to help stabilize the spike in oil prices, and called for aid to address a looming food crisis in developing nations.

In response, Saudi Arabia pledged to increase its daily output by additional 500,000 barrels a day. This is surely to stretch their capacity to an absolute maximum, but in opinions of many this decision should calm energy markets, which, by the way, do not have a shortage of supplies. The recent run up of crude oil price to new high of about $140, is likely to be the extent of the rally for some time.

Where does it leave the dollar? There is no one certain answer, but her is one very possible scenario. Inflationary pressures are likely to cause FED to halt its rate cutting policy, maybe even to start gradual rate increases. That is always appealing to Forex traders. Falling oil prices should also benefit the dollar, as record energy costs have been vilified as the single biggest force behind USD weakness (rightly or not). And one more thing, Treasury Secretary Paulson warned earlier this week that he isn't ruling out intervening in currency markets to stabilize the currency.

So, what is the relationship between US Dollar and inflation? Under current market conditions and in light of most recent fundamental and technical development USD might just get a much needed bust from the much dreaded inflation. This relationship is, however, fluid and unstable. Unchecked, inflationary forces can do just the opposite some time down the road- start another Dollar slide.

Mike P. Kulej is a Chief Forex Strategist for Spectrum Forex LLC. He specializes in mechanical trading systems as explained on Spectrum Forex LLC offers numerous services to individual traders. With questions and comments e-mail him at

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Thursday, November 26, 2009

Forex Trading Courses - How to Find the Best to Lead You a Triple Digit Income

Forex trading courses can teach you proven strategies and skills which you can learn in real time with experienced traders so you get on the road to making money fast risk free. Let's take a look at how the best ones can help you and what they contain.

While most traders simply buy a cheap piece of software and think there going to win with no effort it should be pretty obvious that, in a market where 95% of traders lose you need to make an effort to win. One of the good things about Forex trading though is anyone can learn it with the right education and guidance.

While you can do your own research and build your own strategy, you can get one in the form of a Forex trend following course and as most come with a 100% money back guarantee, so you have everything to gain and nothing to lose.

You will get strategies and an explanation of how they work, so you can have confidence in them and this will enable you to apply them with discipline. Furthermore, the vendor will normally show you how successful the strategies are in daily classrooms and also, provide unlimited email support and assistance as you learn.

Forex trading courses normally cost around $100 - $200 so there affordable and one good trade can pay for the cost - but they can set you up for a great second income for life and as there risk free, more and more, traders are using them, to help them achieve Forex trading success quickly.


For free 2 x trading Pdf's, with 50 of pages of essential Forex info and the best PROVEN Successful Forex Trading Strategies visit our website at:

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Tuesday, November 24, 2009


Start Playing Rock Guitar - 5 Easy Steps To Get You Rocking Out

If you love rock music, and have always wanted to be able to play some of your favourite songs on the guitar, but maybe you've thought it was too difficult to get started, then here are 5 steps to help get you going.

Step 1 - Choose Your Guitar & Amp

Of course, you can learn to play the guitar using any type of guitar, acoustic (classical/folk) or electric.

However, if you particularly want to start playing rock guitar, then an electric guitar is probably the best choice. The main reason for this is that guitarists in most rock bands use electric guitars, so from the start it's going to sound more like the music you want to play (after all, you're not looking to play 'Greensleeves', but more 'Green Day').

Another reason, which some people may debate, but I think that it's just easier on the fingers to start learning on an electric guitar, and that's less likely to put you off when you're just beginning.

As for the amplifier or 'amp', to start off, you don't need a huge stack, or a particularly powerful amp. A small practice amp (e.g. 10-20 Watts) can be sufficient to begin with. Most of these will have at least 2 different modes - 'clean' and 'distortion' (or this second one may be called 'drive'). The distortion mode is really the one you want to use, as this is used to some degree by many rock bands, and is the definitive 'rock guitar' sound. Even if at this point you don't know how to play anything, just plug the guitar in, select the distortion channel, and strum the open strings - chances are it sounds 'rock like' already!

Many music stores sell starter packages which include an electric guitar, practice amp and case, which can be great value when starting out.

Step 2 - Tune It!

An out of tune instrument can make even the best guitarist sound awful. Get into the habit of always tuning the guitar before you start playing or practising. There are many different ways of tuning the guitar, but the most common one is called 'Standard Tuning', and this is the one used by most rock guitarists.

On this diagram of the guitar neck:

E -||--|--|--|--|--|-- (highest-sounding)

B -||--|--|--|--|-X|--

G -||--|--|--|-X|--|--

D -||--|--|--|--|-X|--

A -||--|--|--|--|-X|--

E -||--|--|--|--|-X|-- (lowest-sounding)

The lowest-sounding strings are shown at the bottom, and the highest-sounding at the top. The diagram shows the names of the notes for each string in Standard Tuning. Don't worry if you don't know the names of the notes, or can't read music. The most important thing to begin with, is just to tune the guitar strings relative to each other. Let's say we'll tune relative to the highest E string (top one in the diagram).

Play the B string on the 5th fret (X in the diagram) and at the same time play the open E string. In Standard tuning, these should be the same note, so if they don't sound the same, adjust the B string tuning until they match. Then carry on with the other pairs of strings. In each case you play the 5th fret on the lower string, against the sound of the open upper string. The only exception is the G string, where you play the 4th fret note - see the X's in the diagram.

Step 3 - The Power Chord

Okay, now the guitar is in tune (at least with itself), so you can start learning some rock chords. Most people start off by learning the open shape chords (C, D, G chords, etc), then move on to barre and other more complicated chord patterns. This is a perfectly acceptable way to learn, but to play most songs, you usually need at least 3 different chords, and the most frustrating thing is trying to switch your fingers from one chord shape to another. With some practise, this becomes quick and easy, but there is another way to approach it, which only involves learning one pattern.

That pattern is the 'Power Chord' pattern, and this can be used to play a large proportion of rock songs out there. Let's look at the G power chord pattern:

E -||--|--|--|--|--|-- (highest-sounding)

B -||--|--|--|--|--|--

G -||--|--|--|--|--|--

D -||--|--|--|--|5X|--

A -||--|--|--|--|4X|--

E -||--|--|1X|--|--|-- (lowest-sounding)

In this diagram, the X's show where to put your fingers (of your left hand usually) on the fretboard, and the number shows which finger to use where. So in this case, the first finger will go on the lowest string at the 3rd fret, then the 4th finger at the 5th fret, then finally the 5th finger at the 5th fret.

When forming this pattern, try to make each finger rest just behind the fret marker, and not be right in the middle, as this makes the notes sound more clearly (with less 'buzzing'). Try strumming the bottom 3 strings with your right hand, while holding down this pattern on the fretboard with your left. That is a G power chord. If your guitar strings are in tune as in step 2, and you have a distortion sound, then that should really sound like a rock chord.

Step 4 - Shift It Around

Now for the best bit - to play some songs right away you can use this same pattern, but play different chords with it. So, keeping your fingers in this pattern (1st, 4th and 5th fingers), try sliding it down 2 frets to play an F chord:

E -||--|--|--|--|--|-- (highest-sounding)

B -||--|--|--|--|--|--

G -||--|--|--|--|--|--

D -||--|--|5X|--|--|--

A -||--|--|4X|--|--|--

E -||1X|--|--|--|--|-- (lowest-sounding)

it's the same 'L' shape pattern as in Step 3, but you've just shifted it further down the fretboard. This is now an F power chord.

And now for another chord:

E -||--|--|--|--|--|-- (highest-sounding)

B -||--|--|--|--|--|--

G -||--|--|--|--|5X|--

D -||--|--|--|--|4X|--

A -||--|--|1X|--|--|--

E -||--|--|--|--|--|-- (lowest-sounding)

In this one, we've taken the original power chord from Step 3, and just shifted it across to start on the next string. This is now a C power chord. When strumming this one, try not to sound the bottom E string.

In all cases here, the pattern stays exactly the same, we've just changed which fret the 1st finger starts at, and on which string (E or A). Since the frets on the guitar aren't evenly spaced, you'll have to adjust your fingers slightly when moving it up or down.

This diagram shows where you have to start with your 1st finger to play different power chords:

E -||--|--|--|--|--|--|-- (highest-sounding)

B -||--|--|--|--|--|--|--

G -||--|--|--|--|--|--|--

D -||--|--|--|--|--|--|--

A -||Bb|-B|-C|C#|-D|Eb|-E

E -||-F|F#|-G|G#|-A|Bb|-B (lowest-sounding)

so, for example, if you wanted to play a D chord rather than a C as we did above, then just start with your 1st finger on the A string at the 5th fret.

With this chart, and the chords to your favourite rock song, you can use the one pattern to play it all the way through!

Step 5 - Practice!

It will still take some practice so that you can form the pattern shown above, and move it around easily between frets. However, for now, there's only one pattern to learn, and you can concentrate on making the notes sound clearly by holding them down firmly behind the frets with your left hand on the fretboard, and trying to strum only the strings you're holding down.

Once you've got the hang of this shape, and can play it easily at different frets, then you should be able to play a few different rock songs. From there, the sky is the limit, there are many more techniques and things to learn as you progress with your guitar playing.

I know that this technique works well, as recently my 11-year old son came to me, and wanted to learn to play a song on the guitar called 'Teenage Kicks'. He hadn't really played guitar at all until then. I showed him the power chord shapes here, and within half an hour, he was playing the basics of this song, much to his delight!

Chris Davies is a guitarist with many years experience. If you have found these tips useful, checkout this site now: and see info about the best online guitar lessons.

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