Peter Schiff aka “Doctor Doom”

Famous financial forecaster Peter Schiff, CEO of Euro Pacific Capital, explains why Obama’s government will unleash an even bigger crisis than what Americans are currently experiencing.  The problem, as he has stated repeatedly, is the overspending when the government is already deeply in debt.  Peter Schiff has also stated repeatedly, that the solution is not for the government to intervene but to let the market run it’s own course and letting companies fail instead of having the government bailing them out time and time again.

People have began to take notice of Peter Schiff especially since last year 2008 where his predictions and forecasts  unfolded in the form of economic crisis.  The guy has been right time and time again.  Fellow traders, do take note of what he has been saying all along!

Forex Trading – Support and Resistance

Here is a good video that explains support and resistance in forex trading.  Support and Resistance is a very basic yet highly essential concept that every trader must know.  Forex Traders often target these areas of support and resistance to take profit, stop loss, as well as enter a trade.

Double and even triple tops/bottoms are very common in the daily markets.  The more times currency price bounces off these support and resistance lines, the stronger they are.  This also means that if a triple bottom support is broken, also known as a breakout, the price is likely to go even lower than when a double bottom support is broken.  The same theory applies to resistance.

But do take note that there are often false breakouts, whereby the support/resistance is broken only for an instant, and immediately retraces back to the opposite direction.

Forex Trading – Candlesticks

If you use charts for forex trading, knowing the psychology behind candlestick patterns is of immense benefit.  This video explains well the basics of candlestick patterns.

Important point: The forex trading candlestick patterns are more consistent in a chart of a higher time frame than that of a lower time frame.  There is too much “noise” on a lower time frame that renders inconsistency for technical analysis.

Here is the the video for forex trading – Candlesticks. Enjoy!