learn forex first

For a Forex software review to provide valuable, comprehensive and cost effective information to the end user the most critical factor is the neutrality of the evaluator. In other words, if a site offers only one or two reviews of Forex software you have to wonder if they are really offering an unbiased review or attempting to sell a product. Next, the person or team actually testing the product really needs to be professional Forex traders. And finally, you need to determine if they really tested the product for an extended period or just briefly looked to the item.

Below are a few short but valuable tips to consider when attempting purchasing Forex software. I have so many people emailing me and asking the same question that I decide to write an article about it. The questions is the following, “which is the best automated robot Forex software system that you can just turned on and walk away from and it is going to make me rich?” For that reason and that reason alone I went out and bought a very large heavy frying pan and I am now researching how to send it back to them through email and make sure it hits them on the head. If I have said this one time, I have said it a thousand times, none of those systems WORK! I will say it a different way, you will LOSE your money if you attempt to use one. Let’s try to say the same in differently fashion just to make sure I get the point across, they STINK, they are BAD, they are SCAMS, and finally they just are AWFUL! Do you get the point now? Is there anything else that I really need to add?

Hopefully that is well understood now, but of course not, tomorrow I will have at least twenty emails asking the same question and I am going to just send out this article, along with the frying pan. The principle reason for purchasing a Forex software package is to utilize it as a TOOL to help you trade and NOT a decision maker. The FX software packages for the most part do a good job of gathering information and interpreting it to the point it is useful to the user as a helpful tool to facilitate the decision making process. That is essentially what they do, and to be frank with you, that is all they do good. They really can’t do anything else. Understand now, I hope so!

I am sure your saying to yourself, if that is all they do are they worth the money? Have you lost your mind for even asking that question, they are worth ten, twenty times what they actually cost, if not way more. These systems are able to quickly and effectively capture data and evaluate in a fashion no human could ever do. Most professional private traders employ at least two packages simultaneously. The big time traders all have some kind of trend system as well as a software package that sends them signals. The pros them might add some kind of specific formula based system they have found useful in identifying profitable trades. For that matter, they might much more than one formula based system working with there main trend and signals systems

A good Forex software review can certainly help you with the buying process. A few points to remember are, first there is NOT an automated robot that works. Second, you pretty much are a fool if you are attempting to trade the Forex markets without a high quality trend and signals based Forex software systems. And finally if you purchase a top tier rated product you can be pretty sure you’re getting something that is going to beneficial and make you money.

We have researched, tested & reviewed 100s of Forex Courses, Software Systems and Brokerage Firms which we only list our TOP 10 to help you LEARN FOREX TRADING. For 100s of FREE FOREX TUTORIALS please visit LEARN CURRENCY TRADING. Good Luck! I look forward to seeing you on the trading floor making money! William R. Alheim, Jr., CPA, MA

Here’s how inflation could suddenly make today’s outrageous gasoline prices seem like a bargain: the credit crisis deepens, loans of all kinds freeze and more major brokerage firms fearing implosion beg for a bailout. Bankruptcies of public companies and municipalities add salt to the financial wound and the federal government is forced to continue loaning cheap money to banks to balance the books.

Then, finally, there is no more money left. I know, that sounds impossible: no money in the federal coffers? But the fact is it does happen. Guess what the solution is? The Fed just prints more. And in the opinion of many money experts, ramping up supply of the lowly U.S. Dollar is a sure way to ignite one of our most feared enemies: rampant inflation.

We already know what inflation can do to our money. Inflation essentially eats greenbacks like a moviegoer eats popcorn. Speaking of movies and snacks, do you like how those prices continue to rise? The price of gasoline is a popular complaint, but there will be many other prices to complain about - including entertainment - when America becomes Inflation Nation.

Don’t just stand there when the inflation fire starts consuming your life. Where there’s a woe there’s a way - for those who are willing to understand one basic concept and learn to accept a controllable risk.

Here’s the concept: U.S. Treasury bonds hate inflation. Why? Inflation usually causes the Fed to raise interest rates in an attempt to cool the economy. When rates rise, bond prices fall.

Here’s the controllable risk: Put options on U.S. Treasury bond futures. Why? Put options gain in value as the U.S. Treasury bond market price falls. When you buy a Put option, you only risk the money you have spent. It can’t explode into a bigger, nastier loss in the manner of futures positions or other sophisticated speculative (think gambling) methods.

Now for the solution to rampant inflation: Learn to trade Put options on U.S. Treasury bond futures. Master this. Not only for protection against the inevitable flash flood of inflation. Master this market because when you do, you will always know how to protect yourself against changing tides in the economy - such as the rising cost of food, housing and necessities of all kinds.

You can also use Call options to exploit upward price moves in the T-bond market. But those days are behind us for now. We’ve already seen a major move up. Where were you? Possibly searching for a mortgage with a low interest rate. Fortunately, many homeowners benefited from low rates. But some folks are losing homes because they agreed to complicated adjustable-rate mortgages and can no longer afford their payments. Why? Inflation increased their monthly bill.

The haves and have nots both need protection. Master one market. And sleep a little easier.

Copyright 2008

Douglas Glenn Clark is the author of A Mortgage Liberator Guidebook: How to pay your bills as interest rates change. Free lessons and information at http://www.dgclarkgroup.com/portfolio.htm and his blog: http://www.afterthenoise.blogspot.com

I wanted to take the time to talk to you about the simple actions you can do for currency trading that will ultimately lead to your success. This is a big market with a lot of money moving around. There is absolutely no reason why you can’t have some of that money coming to you, but you need to learn how to do it correctly for the long term.

In this business, you need to be determined. This is a long term game. Rarely do people take a step in and get rich. You have a lot to learn and that means you’re going to have some very rough times. Most people that attempt forex are not determined, they lose a little money, then quit. If you want to be successful, you have to keep making steps forward during the good times and keep making steps forward during the bad times. No matter how bad it gets, there is a light at the end of the tunnel.

There are a million different reasons why you can make a trade, but there should really only be one reason, profit. You shouldn’t make a trade unless you’re going to make money. I know that sounds obvious, but when you’re in the heat of the moment, you’ll find all sorts of reasons to trade. I remember having a bad trade and I felt like I needed to make an immediate trade to win the money back. It didn’t go so well. Sometimes if you don’t see a good trade, you feel like you have to do one because you’re a currency trader. Not smart. You should only be trading when their is profit to be made.

The Forex Loophole makes things a lot easier for you by simplifying the trading process and putting profit at the forefront. Check out my review on the Forex Loophole.

Even though this e-book was written well over a year ago, the concepts in this book still hold fast today. Chris X the author of AdWords Miracle and Project X hits you with another AdWords system.

This AdWords systems has some pretty convert AdWords techniques that many top AdWords Guru’s are using against you as we speak.

With chapters in the book titled “The Leveller: How to Rob a Guru (parts 1 & 2)”, “Campaign Nuking” and “The UnderCutter” it’s hard not to be just a little curious and want to take a peek inside.

But is it all hype?

Well, speaking from experience, I can tell you that the techniques work. They not only work, but they work well. However, you do need to pay close attention to your advertising spend against the profits, because one of the techniques require that you bid extremely high for clicks and then reduce the bid amount over time as your Quality Score improves. This can be devastating in the wrong hands, but it doesn’t take too much to get this right.

Unlike some other systems, the DayJobKiller system takes hardly any time to set up, because the keyword selection is extremely targeted and may only use 2 to 3 keywords and their associated match types in the entire campaign. This makes it easy to setup numerous AdWords campaigns for different products quick and easy. Once you find a winning product and keyword then you can extend your keyword list in an attempt to squeeze out even more profits.

There are some techniques in there that may not appeal to some people due to the nature of the marketing technique, however all of the techniques mentioned are 100% legal. Just for those of you wondering.

Here are just a couple of interesting chapters in the book.

1) Campaign Nuking.

Ever had a campaign that USED to money making and then all of a sudden stops producing. Campaign Nuking is a part of AdWords marketing whether you are aware of it or not. If you are aware of it then you can use this technique to your advantage. This one concept turned all of my AdWords campaigns on their heads. If finally started making some real money using this technique.

2) Direct linking.

Think direct linking is dead? Then think again, because I made $27,000 in 1 month using this method alone.

With those two techniques alone I was able to make a substantial online income using Google AdWords and with other chapters like “the Under Cutter”, “Media Slaughter” and “Copy the best offline” its hard to resist a quick peek.

Who is this book for?

Well, to be honest. This book was the catalyst for me earning a stead income using AdWords as a marketing tool. Up until this point, I made the occasional sale, but not on a consistent basis. It was the information in this book that opened my eyes and understanding of what AdWords marketing is all about.

I like this system because its so easy to set things up and you see results almost instantly. Although it is aimed more for the intermediate AdWords marketer if you know how to setup and AdWords account then you could probably benefit from the techniques in this book.

Note: I say it is more for the intermediate AdWords marketer because the book doesn’t cover setting up an AdWords account.

Get a more detailed review of DayJobKiller Or go to FrankSheung.com and type in the keyword DayJobKiller.

Denial is a ubiquitous psychological defense mechanism. It involves the repression of bad news, unpleasant information, and anxiety-inducing experiences. Judging by the German press, the country is in a state of denial regarding the waning health of its economy and the dwindling fortunes of its financial system.

Commerzbank, Germany’s fourth largest lender, saw its shares decimated by more than 80 percent to a 19-year low, having increased its loan-loss provisions to cover flood-submerged east German debts. Faced with a precipitous drop in net profit, it reacted reflexively by sacking yet more staff. The shares of many other German banks trade below book value.

Dresdner Bank - Germany’s third largest private establishment - already trimmed an unprecedented one fifth of its workforce this year alone. Other leading German banks - such as Deutsche Bank and Hypovereinsbank - resorted to panic selling of equity portfolios, real-estate, non-core activities, and securitized assets to patch up their ailing income statements. Deutsche Bank, for instance, unloaded its US leasing and custody businesses.

On September 19, Moody’s changed its outlook for Germany’s largest banks from “stable” to “negative”. In a scathing remark, it said:

“The rating agency stated several times already that current difficult economic conditions that are hurting the banking business in Germany come on top of the legacy of past strategies that were less focused on strengthening the banks’ recurring earning power. Indeed, the German private-sector banks, as a group, remain among the lowest-performing large European banks.”

Last week, Fitch Ratings, the international agency, followed suit and downgraded the long-term , short- term, and individual ratings of Dresdner Bank and of Bayerische Hypo- und Vereinsbank (HVB).

These were only the last in a series of negative outlooks pertaining to German insurers and banks. It is ironic that Fitch cited the “bear equity markets (that) have taken their toll not only on trading results but also on sales to private customers, the fund management business and on corporate finance.”

Germans used to be immune to the stock exchange and its lures until they were caught in the frenzied global equities bubble. Moody’s observes wryly that “a material and stable retail franchise in its home market, even if more modestly profitable, can and does represent a reliable line of defence against temporary difficulties in financial and wholesale markets.”

The technology-laden and scandal-ridden Neuer Markt - Europe’s answer to America’s NASDAQ - as well as the SMAX exchange for small-caps were shut down last week, the former having lost a staggering 96 percent of its value since March 2000. This compared to Britain’s AIM, which lost “only” half its worth. Even Britain’s infamous FTSE-TechMARK faded by a “mere” 88 percent.

Only 1 company floated on the Neuer Markt this year - compared to more than 130 two years ago. In an unprecedented show of “no-confidence”, more than 40 companies withdrew their listings last year. The Duetsche Boerse promised to create two new classes of shares on the Frankfurt Stock Exchange. It belatedly vowed to introduce more transparency and openness to foreign investors.

Banks have been accused by irate customers of helping to list inappropriate firms and providing fraudulent advisory services. Court cases are pending against the likes of Commerzbank. These proceedings may dash the bank’s hopes to move from retail into private banking.

To further compound matters, Germany is in the throes of a tsunami of corporate insolvencies. This long-overdue restructuring, though beneficial in the long run, couldn’t have transpired at a worse time, as far as the banks go. Massive provisions and write-downs have voraciously consumed their capital base even as operating profits have plummeted. This double whammy more than eroded the benefits of their painful cost-cutting measures.

German banks - not unlike Japanese ones - maintain incestuous relationships with their clients. When it finally collapsed in April, Philip Holzmann AG owed billions to Deutsche Bank with whom it had a cordial working relationship for more than a century. But the bank also owned 19.6 percent of the ailing construction behemoth and chaired its supervisory board - the relics of previous shambolic rescue packages.

Germany competes with Austria in over-branching, with Japan in souring assets, and with Russia in overhead. According to the German daily, Frankfurter Allgemeine Zeitung, the cost to income ratio of German banks is 90 percent. Mass bankruptcies and consolidation - voluntary or enforced - are unavoidable, especially in the cooperative, mortgage, and savings banks sectors, concludes the paper. The process is a decade-old. More than 1500 banks vanished from the German landscape in this period. Another 2500 remain making Germany still one of the most over-banked countries in the world.

Moody’s don’t put much stock in the cost-cutting measures of the German banks. Added competition and a “more realistic pricing” of loans and services are far more important to their shriveling bottom line. But “that light is not yet visible at the end of the tunnel … and challenging market conditions are likely to persist for the time being.”

The woeful state of Germany’s financial system reflects not only Germany’s economic malaise - “The Economist” called it the “sick man” of Europe - but its failed attempt to imitate and emulate the inimitable financial centers of London and New-York. It is a rebuke to the misguided belief that capitalistic models - and institutions - can be transplanted in their entirety across cultural barriers. It is incontrovertible proof that history - and the core competencies it spawns - still matter.

When German insurers and banks, for instance, branched into faddish businesses - such as the Internet and mobile telephony - they did so in vacuum. Germany has few venture capitalists and American-style entrepreneurs. This misguided strategy resulted in a frightening erosion of the strength and capital base of the intrepid investors.

In a sense, Germany - and definitely its eastern Lander - is a country in transition. Risk-aversion is giving way to risk-seeking in the forms of investments in equities and derivatives and venture capital. Family ownership is gradually supplanted by stock exchange listings, imported management, and mergers, acquisitions, and takeovers - both friendly and hostile. The social contracts regarding employment, pensions, the role of the trade unions, the balance between human and pecuniary capital, and the carving up of monopoly market niches - are being re-written.

Global integration means that, as sovereignty is transferred to supranational entities, the cozy relationship between the banks and the German government on all levels is over. Last October, Hans Eichel, the German finance minister, announced OECD-inspired anti-money laundering measures that are likely to compromise bank secrecy and client anonymity and, thus, hurt the German - sometimes murky - banking business. Erstwhile rampant government intervention is now mitigated or outright prohibited by the European Union.

Thus, German Laender are forced, by the European Commission, to partly abolish, three years hence, their guarantees to the Landesbanken (regional development banks) and Sparkassen (thrifts). German diversification to Austria and central and east Europe will provide only temporary respite. As the EU enlarges and digests, at the very least, the Czech Republic, Hungary, and Poland in 2004-5 - German franchises there will come under the uncompromising remit of the Commission once more.

In general, Germans fared worse than Austrians in their extraterritorial banking ventures. Less cosmopolitan, with less exposure to the parts of the former Habsburg Empire, and struggling with a stagnant domestic economy - German banks found it difficult to turn central European banks around as successfully as the likes of the Austrian Erste Bank did. They did make inroads into niche structured financing markets in north Europe and the USA - but these seem to be random excursions rather a studied shift of business emphasis.

On the bright side, Moody’s - though it maintains a negative outlook on German banking - noted, in November 2001, the banks’ “intrinsic financial strength and diversified operating base”. Tax reform and the hesitant introduction of private pensions are also cause for restrained optimism.

Pursuant to the purchase of Drsedner Bank by Allianz, Moody’s welcome the emergence of bancassurance and Allfinanz models - financial services one stop shops. German banks are also positioned to reap the benefits of their considerable investments in e-commerce, technology, and the restructuring of their branch networks.

The Depression on 1929-1936 may have started with the meltdown of capital markets, especially that of Wall Street - but it was exacerbated by the collapse of the concatenated international banking system. The world today is even more integrated. The collapse of one or more major German banks can result in dire consequences and not only in the euro zone. The IMF says as much in its “World Economic Outlook” published on September 25.

The Germans deny this prognosis - and the diagnosis - vehemently. Bundesbank President Ernst Welteke - a board member of the European Central Bank - spent the better part of last week implausibly denying any crisis in German banking. These are mere “structural problems in the weak phase”, he told a press conference. Nothing consolidation can’t solve.

It is this consistent refusal to confront reality that is the most worrisome. In the short to medium term, German banks are likely to outlive the storm. In the process, they will lose their iron grip on the domestic market as customer loyalty dissipates and foreign competition increases. If they do not confront their plight with honesty and open-mindedness, they may well be reduced to glorified back-office extensions of the global giants.

About The Author

Sam Vaknin is the author of Malignant Self Love - Narcissism Revisited and After the Rain - How the West Lost the East. He is a columnist for Central Europe Review, PopMatters, and eBookWeb , a United Press International (UPI) Senior Business Correspondent, and the editor of mental health and Central East Europe categories in The Open Directory Bellaonline, and Suite101 .

Until recently, he served as the Economic Advisor to the Government of Macedonia.

Visit Sam’s Web site at http://samvak.tripod.com; palma@unet.com.mk

What you want in order to be successful with your Forex trading:

You must have a tested and definite trading strategy as well as extreme discipline to follow the strategy and execute the plan to the letter. You will want to be exact and precise with your entries, always going for the very best entries with the highest probabilities of success, with the lowest risk. You would want to evaluate the risk, not only in terms of pips but also in terms of strategy and chart pattern. For instance, if you are trading a breakout and this would be a long trade right at a strong resistance level, price very often turns back to test the breakout level. So your stop loss would need to be larger than usual in relation to your capital and you could feel very uncomfortable with it. In this case it would be prudent to wait for a second attempt at the breakout, and then be in a position to use a smaller stop loss.

Mark Douglas author of trading in the Zone wrote:

“The best traders have developed an edge and more importantly, they trust that edge.”

As part of your trading edge, you require a high probability of success, you need to be able to enter and exit your trades without conflict or stress. Trade decisions are based on your strategy and not on preconceived ideas of your opinions.

Keep things simple and your trading decisions will be made with less stress and anxiety.

One of the most crucial factors in trading is setting goals for yourself. Set your self a daily, weekly and monthly goal. Trading without having very specific goals as to how much you want to make each day and how much you are prepared to lose daily, is a route to failure. These goals have to be very achievable. Notice I said VERY, not just achievable. You want to have VERY achievable goals.

People perform at their best when they have a goal, but it has to be attainable and realistic. You would want to start out small and slowly make your goal larger.

You will have losing trades and you will make mistakes, but the ultimate is to pick your self up and see where or what you have done wrong and correct it by managing your next trade better and striving towards flawless execution of your trades.

Losing in trading does not make you a loser. Taking losses in trading is part of the business. It is when you do not accept a loss and allow your losses to increase instead of closing a trade at a loss, that you have failed. Allow yourself to take losses just like you allow yourself to take profits. Allow your stop losses to be hit just like you allow your profit targets to be hit.

As you wouldn’t move your stop loss, don’t move your profit target. Don’t be afraid that your target will not be hit, or you have just taken a loss so you want to quickly take a profit. Set your platform with a stop loss and profit target according to your trading strategy and allow things to happen, without any interference from you. By all means set a trailing stop to lock in profits, but all this can be done before you enter into a trade. Walk away if you want, but don’t interfere with your trade.

Trading becomes easier and easier with repetition and practice.

Linda Wainman is the author of the day trading book “Keeping it Simple”.
http://day-online-trading.com

http://day-online-trading.com Get access to free forex signals for 3 months! NOTE: You have full permission to reprint this article within your website or newsletter as long as you leave the article fully intact and include the “About The Author” resource box. Thanks!

There are two basic ways to approach the analysis of the FOREX markets: Technical analysis and Fundamental Analysis. Someone who is using a fundamental analytical approach will look at the current economic climate, political events, a variety of economic indicators, and so on to try to predict currency moves. What we will examine is technical analysis, or the use of historical price patterns in economic data to predict future moves in the FOREX. We will also look at the tools used for technical analysis.

The three major assumptions underlying technical analysis are:

1 - All market forces are taken into account in price movement. Many things can affect the price of a currency. Some of these factors would be economic conditions, political happenings, natural disasters, seasonal supply and demand and even the weather. Technical analysis, however, does not attempt to take these into account because the market has already done that. Rather, a technical analyst is concerned with the actual movements of the market, not with the reasons for the movement.

2 - There are observable trends in currency prices movements. There are known market patterns that follow predictable paths.

3 - There are historical trends in price movements. Over a century of FOREX data collection has shown that human nature interacts with events in predictable ways. Thus, when circumstances are similar in the market, the same patterns will show up.

Technical Analysis: Is It Necessary?

Day traders in the FOREX usually use technical analysis most heavily, though they may supplement it with fundamental analysis. Technical analysis has the huge advantage of being applicable to a wide range of currencies and markets simultaneously. To properly do fundamental analysis requires a good knowledge of events and conditions in a certain country so the number of markets any particular trader can analyze by the fundamental approach is necessarily limited.

Technical analysis can seem so complicated to the beginner that they may be tempted to wonder if it is really needed. The truth is that all investing requires a strategy and technical analysis is a proven way to set strategy by predicting FOREX movements. Of course, no strategy or method is always successful, which is one reason many technical traders also do some fundamental analysis as a supplement.

USing Price Charts In Technical Analysis

Charts lie at the heart of technical analysis and you will find a good selection available from any online FOREX broker. Not only are the charts updated constantly, real time, but they can be viewed in a variety of ways. You can see movement over various periods of time, broken down into different time scales, and with various analytical overlays applied. With the software provided you can see the broad picture over a long period or zoom into the most minute detail. The basic software is free from most online Forex brokers but there may be a fee for the more professional, in-depth, information.

Sometimes the charts are a built-in part of the broker’s software package. Alternately, they may be available on the broker’s website.

Practice, or demo, accounts are available from most brokers on their website. These allow you to use the charts and tools of that particular software to learn the techniques of following charts, noticing and learning about trends and studying market movements. Nothing can substitute for this valuable period of becoming intimately familiar with charts and market behavior.

Get the latest Forex Trading Education tips, tools, and techniques at Forex Examiner. Start to trade profitably with our no cost Forex trading report. Get your complimentary copy here http://www.ForexExaminer.com today.

You can have the most profitable Forex trading system ever developed, but it won’t do you any good unless you also have software which will enable your to keep track of your trades. If your Forex charting software doesn’t let you make the kind of notations you want on your charts, your attempts at Forex trading will be far more time-consuming and frustrating than they need to be!

So we’ve put together a list of seven questions you should ask before you choose your Forex software and how to read forex charts and begin your paper and live trading.

Question 1: How long does it take the software to load the charts?

Keep in mind that many Forex charting programs will not load demo accounts as quickly as they load the real thing, so if you really like a particular software package but think it’s loading too slowly, don’t be afraid to ask the software provider if the full version is any faster.

Question 2: How easily can you ready the charts?

Most Forex chart software will let you create custom chart layouts and colours, so that you can come up with a design which you have no difficulty reading.

Question 3: Will the Forex charting software let you save your chart layouts?

Even if a forex software program has a save feature, you should always test it to see if the layouts you save load correctly when you next use the software. You need to make sure that both your time frames (are you tracking currency movements in hours, or in minutes?) and your currency trading pairs are being loaded accurately. If they’re not, you’ll have to redo your charts each time you log into your account.

Question 4: How easily and accurately can you draw your chart lines and make your notations, and will they remain on the chart if you refresh it?

Some trading systems won’t work unless you are able to add support and resistance lines, and peaks and troughs on your charts to help you track the entries on specific currency pairs. You need Forex charting and trading software which will keep those lines, peaks, and troughs visible in your trading session.

Question 5: How many different indicators can you plot with the software?

The first time you use the software, try placing all your favourite indicators, like moving averages, on a chart. This will let you both see what indicators are included with the software, and let you create a customised layout which can become your template. You’ll know almost immediately if the software will provide the charts you need to succeed with your trading system.

Question 7: Do you use historical data as a part of your trading system, and will you need to put it into your charts?

Question 6: Can you program the software?

If you keep manually entering the same steps when trading your system, you may be able to simply program them into your charting software if it lets you modify its programming language.

Many Forex traders like to keep track of the historical performance of their system over a period of years, but some charting software does not have the capacity to store that amount of data.

By using these questions as a guideline when you’re searching for the best Forex charting software, you’ll have the best chance of finding the program which will let you trade your chosen system, and do so easily!

Mark Hamburg helps you to learn how to read forex charting software and all about forex trading online. Which forex broker platform is the best? Find out right here in his review site all about forex currency trading in today’s market.

Investments in Costa Rica?… isn’t that an island?…somewhere in the Caribbean?

My wife and I moved to Costa Rica six years ago from the frigid climate of Minnesota where we had owned a printing business for 15 years. For as long as we could remember we had worked 12 hour days and spent most of our time figuring out how to stay even…getting ahead wasn’t even in the cards.

Then 9/11 happened. And for us it was an epiphany. Life was too short to spend the balance of our lives on a treadmill that went nowhere. We accelerated our retirement plans by almost ten years.
And over the next year we sold everything we owned and eventually found ourselves in Costa Rica (which, mind you, we had only visited once previously…and on vacation at that !).

Stupid? In retrospect, sure. To move to a foreign country where we knew no one, didn’t know the language and our only exposure was the internet? Of course, it was stupid.

But…we loved it, even in spite of the fact that life here was completely different than the books portrayed or the internet showed. We rented a small home about an hour outside of San Jose in a community which was rural, coffee country and yet still large enough to have a hospital and within 45 minutes of the main airport.

And we purchased land…and we built a house. And luckily, Rhonda had the temperament to deal with the local builders, even though we didn’t understand much Spanish. I still remained a type A and the manana attitude drove me crazy.

And much of the real estate and construction business was definitely not in any “how to…” book that we ever found. And we definitely made mistakes. But luckily they didn’t hurt us TOO much financially. And we asked a lot of questions and we learned, little by little, how the real estate market functioned in Costa Rica.

And we decided that we wanted to let others know the things that we had to learn the hard way. We started a real estate company whose sole aim was to present properties which reflected prices that locals paid…because there is a two tier real estate market in Costa Rica…one for “gringos” and one for Ticos (locals, as Costa Ricans call themselves).

Because there are very few rules or regulations for real estate here, our “exposure” of the market didn’t make us very popular with other real estate people. (remember, Costa Rica is a VERY small country…about the size of West Virginia or Houston). So our website didn’t exactly endear us to local agents who were used to charging whatever prices and commissions that they thought the traffic would bear.

And slowly we began to get a reputation…admittedly, some was good, some bad…depending upon who you talked to. And we began to get publicity…unsolicited publicity from magazines like Newsweek and Investors Business Daily. And our business grew. And grew some more.

As our business grew we began to meet more people from Costa Rica…some influential, some not… some quality, some not. And we became exposed to many more types of investments that were totally foreign to us. And we learned who really “controls” the country and which people control investment capital and have the influence to make policy. To illustrate how much of our education was “coincidence” (and I personally do not believe in coincidences… I believe that they happen for a reason) our third attorney was introduced to us purely second hand at a local gathering; “coincidentally” his wife was from Minnesota…Rhonda was then invited to a weekly gathering of “gringas”, all of which married Ticos 35-40 years ago and who have now ALL become very influential ; e.g., Minister of Finance; Minister of Agriculture and two other former cabinet members.

Because of our real estate organization (see it here: www.cr-home.com) we are able to see daily what people are seeking and watch the ebb and flow of interest. And not only are we able to gauge areas of interest but also types of properties or homes that are attracting the most interest…e.g., we know that beach properties or condominiums at present are receiving very little interest and the high end beach properties sales are very slow. We have our own hypotheses as to why this is occurring but we are dealing with “what is”, not what we think “should be”…nor do we look for esoteric explanations to explain the status. We are big believers in the KISS philosophy…” keep it simple, stupid.”

Over the past three years we have made a number of investments here…none have shown a loss and others have turned a 100% return within a 60 day period. Some have unrealized profits. We have yet to take a loss. Please understand here that we are not professional investors (if there indeed is such an animal)… we have simply taken advantage of situations that we consider to be extremely low risk. WE ARE NOT SIMPLY “HOPPING ON THE COSTA RICAN REAL ESTATE BANDWAGON”…because if we had done that, we would have already lost a significant amount of money.

Let me explain…
Our website and mission statement is all about value…and it is about education and knowing “the good, bad and ugly” BEFORE buying. Too many people get caught up in the emotion and beauty of Costa Rica and buy on impulse. And these are the people that ultimately run the risk of losing their entire investment. (con men and fraud exist everywhere but are more common here simply because of the lack of comprehensive rules and regulations concerning real estate and construction). That being said…we attract a different type of clientele…one that typically wants to ensure that he gets the most value for his or her money….and definitely not one that is an impulse buyer. We deal primarily with the “baby boomer” who is looking at Costa Rica as a retirement destination AND the buyer who wants to ensure that he or she gets the most value for their investment.
And the above paragraph illustrates the best, most concise reason why our business is almost recession proof and not affected by the “subprime crisis” and will allow us to continue to capitalize of various forms of investment in Costa Rica.

So…now that we have established our background…WHY are we recommending Costa Rica as a basis for specific types of investments?
We are not attempting to “sell” Costa Rica because we expect anyone who is examining Costa Rica as an investment to do their own due diligence. So…
- Costa Rica is home to the longest running democracy in Latin America. Its stability is unquestioned and it is allied closely with the U.S.
- Almost a third of the land mass of Costa Rica is set aside for national parks. Costa Ricans themselves are huge lovers of wildlife, flora and fauna.
- There is virtually no mineral exploration and absolutely no oil drilling in Costa Rica for environmental protection.
- The literacy rate in Costa Rica exceeds that of the States or Canada.
- Medical care is superb and available to everyone…even to those who are unable to pay.
- Costa Rica is more familiar to Americans than nearly any other foreign destination…for vacation. Nearly everyone who has visited Costa Rica wants to return and, in fact, Costa Rica has the highest return rate for vacationers of any other destination in the world.
- While Costa Rica is technically a “second world country”, its infrastructure is excellent.
- Costa Rica’s economy, while operating at a deficit, is in excellent shape.
- Costa Rica has no standing army, thus expends no funds on a national defense.
- Costa Rica espouses family values and many visitors liken it to the States from the 50s. The pace of living is slower and the Costa Rican people (Ticos) have different values than their counter parts in America and Canada.
- There are literally dozens of microclimates within a two hour drive from anywhere in the country. Where else can you drive for a day and see two oceans, several volcanoes, sandy beaches, mountains, waterfalls, lakes, rain forests, cloud forests, agricultural land, hot springs, wildlife preserves, and much much more…?
- Cost of living estimated at approximately 30% of equivalent lifestyle cost in the States or Canada.
- An estimated 30% of the population speaks or understand some degree of English.
This is only the abbreviated version of the positives of Costa Rica…other countries such as nearby Panama, Nicaragua and Mexico are attempting to woo the “baby boomers” but OUR belief is that the “blue chip” of Latin American investment will almost always win out. Just because land in Nicaragua or Panama maybe 20% cheaper or because the government offers one time incentives to expats….does not necessarily mean that it is worth the risk of your hard earned savings. Weigh the pros and cons. Some say that Costa Rica is overpriced…some say that its time has passed for investment…we say “take a look at the number of people that visit here…and that return…do your homework…then make your decision.”

Okay, we have subjectives about Costa Rica and why people visit here and keep returning. Now we need facts.
During the first six months of 2008, more than 125,000 foreigners visited Costa Rica…and this is a 16% increase over last year. And remember, this is in a so called recession which is worldwide. Don’t believe that the trend will continue?…try this: ask your friends what their impressions are of Costa Rica or what they have heard ABOUT Costa Rica. I can guarantee that the responses will be overwhelmingly positive. Subjective ? Yes, but still highly convincing and you will not get these types of responses from any other location or destination.

Numbers of weekly airline flights are climbing…ranging from American Airlines with 43, to Continental with 25, Delta with 24 down to Spirit and U.S. Airways each with 7. This does obviously not take into account visitors from other parts of the globe. Currently, the States and Canada account for over half of all visitors and tourists to Costa Rica. Europe accounts for nearly 20% and the rest of the world, the balance. This is another good rationale why our business is expanding instead of collapsing like many of the local pundits have predicted…the slowdown in the States is more than counterbalanced by Canada (which is experiencing a VERY strong economy and a very strong currency) and Europeans… who are also experiencing gains with the rise of the euro vs. the dollar and other currencies. The Costa Rican real estate market is simply not dependent upon one country or group of people to experience strong real estate interest. And please also keep in mind that Costa Rican real estate is a microcosm of Economics 101…the areas of interest for the “boomers” and second home buyers are small and it is easy to see that there are more buyers than sellers (which is really what the markets are all about… remember our KISS theory?)

We have established statistically that more and more visitors are arriving in Costa Rica. Now we need to establish a base for our investment philosophies…and it is primarily centered upon the huge number of “baby boomers” which are just beginning their retirement years. We do not need a huge elaboration as to why “boomers” are examining overseas destinations in increasing numbers…but here are a few of the major reasons:
- Cost of living…it is no surprise that costs of almost everything are climbing daily. The equivalent cost of living in Costa Rica is roughly a third as much.
- Medical care is excellent and only at a fraction of the cost.
- There is a tremendous amount of diversity here and an almost unending list of activities and sightseeing which is available daily…you will definitely never be bored!
- Stable government and environment.
- High literacy rate and people are genuinely friendly.
- Only a short plane ride from the States.
- Infrastructure is good and water is drinkable everywhere in the country.
- The banking system is excellent and safe.
- There is a huge amount of flora and fauna here which is literally unequalled anywhere in the world…and over 25% of the country’s land is set aside for national parks.
- Land and construction is still extremely affordable by comparison.
- Crime is still relatively low, especially when compared to its counterparts and “competition”.
Okay, now that we have established that Costa Rica is a viable, growing and stable marketplace AND that the “boomers” have the potential to have a major influence on the marketplace in Costa Rica…let’s pinpoint specifics which will allow us to make significant investment gains:
Most “gringos” say that they would prefer beach living. The reality is that over 50% of all people who buy on the beach sell within five years. We have found over the past five years that most gringos prefer acreage with the following features:
- Views…either the ocean from a distance or the Central Valley
- Access to good medical and professional services
- Not “too remote”
- Good shopping and dining accessibility within a reasonable drive.
- Internet availability…good infrastructure
- More moderate temperatures
- More rural than urban but still amenities available closeby
- Within a “reasonable” drive to an international airport.
- Private, but not too private; i.e., neighbors nearby but not TOO close.
- At least half to an acre of land…river, waterfall or lake if possible.
- Fruit trees and other vegetation a major plus.

With the above in mind, Rhonda and I settled in Grecia which was approximately half an hour from the country’s major airport, 45 minutes from a first class hospital (yet only 10 minutes to a municipal hospital, in Grecia). We chose to be in the mountains overlooking the town and the Central Valley. Major shopping was 45 minutes away as was “better dining” and (for me) bookstores. Notice how we fit the above “profile”? BTW, we also had a river on our property. Why do we bring this up here?…because our “property preferences” were (and are) the same as 80% of most gringos that move to Costa Rica to retire (full or part time.)

Next factor: there are very very few rules and regulations when it comes to real estate and construction in this country. There are ways to protect yourself legally but there are no sure methods of ascertaining what is a “fair and honest” price. There is no MLS system and there is not a system of comparables. For the most part, real estate is bought and sold the way it has been for decades…primarily word of mouth. This is specifically why people flock to the real estate industry…because of “net selling” or the simple fact that it is almost impossible to know what is a fair price. (net selling refers to “marking up” a property over and above what the seller wishes to “net…very commonplace here.)

Next: There are very few American style houses for sale here… and Tico houses simply are not satisfactory for 98% of “gringos” that move here (lower ceilings, smaller rooms, not enough land, no 220V power, no views, etc). This obviously brings up the logical conclusion…if there is a market, and it appears that it is highly skewed in favor of the sellers…is there an opportunity here to capitalize on that imbalance? (for those of you who are thinking ahead here…remodeling is difficult because almost all construction here is block and steel and all wiring and plumbing is encased in concrete…remodeling costs actually exceed “STARTING FROM SCRATCH”.)

Because there is a two tier market here…one for locals and one for “everyone else” it is important to ensure that pricing received is comparable to others of comparison (as much as possible in a country where “comparables” are simply conversation over coffee.) A “gringo” certainly can look for his or her own property but it is almost a guarantee that prices will be at least 50% higher as locals share the common perception that “gringos” have money trees “back home” and that we will pay almost “any asking price” because we don’t know the culture or the area.

And remember we know the markets…who is buying, what they are seeking and what they will pay. And then obviously the determination has to be made if it is possible to make a profit.

The last item to take into account is the simple fact of Costa Rican land itself…without the “gringo factor”. Ticos (Costa Ricans) are accustomed to an inflation rate of around 12% annually and many compensate by buying additional land and simply holding hard assets. And when selling, Ticos know that if they do not get their price today…they will in six months or in a year. The trick then becomes to truly know the markets and to be able to take advantage of buyers that MUST sell and that need money.

On to “brass tacks” and specifics…
1. The void of, and lack of, American style houses in many areas is crying to be filled. The following is a quick “down and dirty” summary of approximate profits to be made from such an investment: Land cost: (one acre…view property in Grecia or environs) $50,000; American style house of 3 BR, 1500-1600 sq. meters: $75,000…misc costs including architect, utilities and landscaping: $10,000. Selling price: $190-195,000, possibly more. Estimated gross ROI (before payout to limited partner or construction supervisor)…50%.

2. Smaller developments can be even more profitable…we prefer to stick with a much smaller number of homes as it is more manageable and you fly under the municipality’s radar…nothing illegal, just avoiding the possibility of locals swarming around with their hands out. Typically, we raise money in smaller increments (shares) as the amounts normally exceed $250,000.

Profit estimates here are extraordinary.
3. Oftentimes, at least bimonthly, we see a property at an extraordinary price…one that we know is substantially below market value. Sometimes these properties can be resold almost immediately…other times they involve buying a larger piece and reselling smaller units of land. A good example is a block of four quarter acre beach front parcels which are titled and located only 1 ½ hours from San Jose on the Central Pacific coast. The owner is in the States and is admittedly desperate. The units can be picked up as a whole and resold for at least a 50% profit (our opinion). They are RARE and gorgeous.

4. Recently, we were contacted by the owner of a small house in Grecia. We had previously listed it at a decent price…but no takers. It has a gorgeous view and the house needs probably $5000 worthy of work. In our opinion, the owner is now willing to sell for close to land value only. Not a huge winner, but percentage wise, probably a 50% profit is available. Estimated ROI to the investor…50%+

5. Occasionally we are shown properties which have a “glitch” in their titles…not major problems but simple filings to correct them. “informacion processoria” properties are normally those which have passed down from family member to family member over the years without doing proper registration or filings. It is a simple matter for a competent attorney to correct the oversight (and, in many cases, it was simply not done for lack of funds). These properties can oftentimes be had at substantial discounts. A good example is a property currently being offered of nearly two acres just on the outskirts of San Jose…a suburb called Aserri. The property HAD to be sold (family financial emergency)…asking price was actually less than 20% of what comparable properties were currently selling for ADJACENT to this property. Estimated “fix” time is six months…properties like this do not often surface and, most of the time they are “no brainers”.

Now, we are the first to admit that 99.9% of people that read about these investments are not able to do them themselves. This is why we have typically set up “arrangements” or agreements to handle the everyday details and carry the project from start to finish. Obviously, investments such as the Aserri property, or others that are shorter term investments that can be resold quickly, do not need “special handling”.

Hopefully, this investment overview has sparked your interest. We have met nearly all of our investors…some before the physical and actual investment, other afterward. We have an annual pigroast in January and typically nearly all of our investors along with friends and neighbors from Costa Rica get together for fun and an overview of each investment status. In the past it has been a huge hit…plus of course, it is a great excuse to come to Costa Rica.

If you have an interest in discussing investments of these forms… please email or call us.

Randy and his wife Rhonda settled in Grecia six years ago and have built a company which has become , arguably, Costa Rica’s most recognized real estate and investment company. You can see their website at http://www.cr-home.com All are invited!

Many Forex traders like to use technical analysis to help them make trading decisions. In this article on technical analysis, I’ll discuss the uses of and implications of the double top/ double bottom chart pattern.

What Is A Double Top/ Double Bottom?

Double tops/bottoms are typically used as trend reversal signals. This is because this candlestick formation is often found at the end of a trend on the trading charts.

A double top pattern consists of two clearly defined peaks (i.e. tops) at approximately the same price level. In an uptrend, prices rise to a resistance level, and then decline to a support level, thus forming the first peak. Soon after, prices start rallying again and attempt to break the previous resistance level (at the first peak) before failing and retreating once again, forming the second peak. On the charts, a double top formation looks like an “M”. When traders see this occurring, they will typically enter into short orders.

The reverse is true for a double bottom candle pattern, but forming a “W” shape instead, as well as traders subsequently entering into long orders.

What If Prices Break Past The First Resistance Level?

After the first peak is formed and prices manage to strongly break through the resistance level on the second rally attempt, then the double top formation has failed. In this instance it is NOT advisable to enter into a short position.

The reverse is true for double bottoms.

What Is The Underlying Reasoning For Double Tops?

The first peak shows that prices are unable to break through a particular resistance level. However, there will usually still be buyers in the market who will attempt to push prices back up again. Once the market forms a second peak, it shows more evidence that the buyers are not strong enough to push prices further up, wearing them out and allowing the sellers to continue pushing prices further down.

The reverse is true for double bottoms.

To learn more, download my free 26-page guide here: “Forex Trading Traps!”

Harold Hsu is the owner of http://www.ForexSystemProfits.com where he provides premium Forex trading tips and resources.