23 Oct, 2006
China has approved insurance company to invest FOREX premiums in overseas markets
Those who followed the statistics about china are already aware about their 987.9 billion U.S. dollars FOREX debt they amassed until today and FOREX experts forecast the number will raise over one trillion dollar by the end of October, the debt increased almost 30% since the previous year, taking this fact in mind can explain China decision to approved Ping An Life Insurance Co. Ltd. as a pilot company to invest foreign exchange premiums in overseas markets.
Wu Dingfu, vice chairman of the CIRC said that China’s cabinet approved insurance companies purchasing foreign exchange with the yuan for overseas investment. Expert traders can “understand” this move as an intention to increase the yuan strength against the dollar by approving overseas investment of FOREX premiums, which will encourage insurers to invest more money into the overseas markets, the exact State Administration of Foreign Exchange (SAFE) and the China Insurance Regulatory Commission (CIRC) statement said the insurer has been permitted to experiment with life insurance in foreign exchange and that the premiums can be invested both at home and abroad but forbidden the insurer to change the FOREX premiums into yuan without being examined and approved.
The CIRC revises regulations according to what Insiders have to say, some FOREX and insurance experts also says that the CIRC move came to restrain the foreign exchange unstoppable increasing reserve and attracting more investment channels. These revisions are predicted to go public in the following weeks, thus enriching investment portfolios for domestic insurers' abroad while expanding the capital market.
3 Oct, 2006
Forex myth-busting
Forex trading is an exciting new toy in the financial field (and not just there) that begun appealing to all sorts of population layers. The stakes are affordable enough that almost anyone can play, and the potential profit is high enough to tempt even the most careful into the market. Theres something very appealing about trading money an appeal that stock, bonds and mutual funds just dont have. But when the masses come and play - they tend to hear half of what they are told - and they are satisfied with the easy and handy advice - which isnt always the best. Here are some of what I heard, that may seem a bit logical but in fact they are pure non-sense:
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The more currencies you trade, the better your chances are of scoring a big profit - The more you know about a currency, the easier it is to predict how and when it will move. The more intimately you understand the way it behaves, the better your chances are of consistently making successful trades in that currency. in the forex market, if youre trying to focus on too many different currencies, youll be spreading yourself too thin to really get to know any one of them.
Thinking long-term and trading short-term is a sure way to make money in the long run - Thats one of those logical fallacies that sound good on the surface. Look at it more closely though. If youre trading in the short term, then you need to keep your eyes on the short term rather than trading to what you think the market will be in a week. Today is today if you make your best trade today every day, youll consistently be ahead of the game.
The way to make money in forex is to always have a trade in motion - Sometimes there just isnt a trade thats going to profit you. Making a trade just to make a trade is a sure way to do you no good - and possibly a great deal of harm.