Archives: 2009 April

Everything is interrelated in the forex markets. It is important for you to understand that the price action of each currency pair is not mutually exclusive.

Most pairs move relative to one another. Understanding that different currency pairs are correlated is important for you. These correlation numbers can be positive or negative.

Knowledge of how strong this relationship is and its direction can help you in developing your trading strategies with a new perspective. This has the potential to become a great trading tool for you.

Correlations are calculations based on past pricing data between different currency pairs. It is always a number between -1 and +1. These numbers can provide you with a lot of information that can maximize returns, minimize risk and help you avoid counter productive trading.

Lets take an example. Suppose USD/JPY and USD/CHF had a positive correlation of +0.83. This number is close to +1. It means that both the pair move together most of the time.

Since both the pairs move together, if you are trading USD/JPY and USD/CHF at the same time, it will double up your position if you go long or short on both at the same time. In other words, if you lose a trade on USD/JPY, the chances are that you will also lose the trade on USD/CHF 83% of the times.

The rising cost of health care and the high prices of new biotechnology drugs lead many experts to predict that new policies and new technologies to trim costs will soon be forthcoming. New policies may include price controls or economic incentives to reduce costs. New technologies may include methods to improve manufacturing efficiency while reducing costs of making the biotech medicines of the future.

One area of research that holds the promise of reducing costs and improving worldwide access to the benefits of biotech is the production of therapeutic proteins and vaccines in living green plants. Scientific research using this technology has shown repeated successes. This technology is not yet in mainstream pharmceutical industry use, but it may be a very good time for an investor to seriously consider taking a stake in its bright future.

Three companies seem to be among the brightest of the rising stars in this new green revolution. Sembiosys Genetics Inc of Calgary, Alberta (Toronto: SBS) is producing insulin in plants, and through its subsidiary, Botaneco, is collaborating with MannKind Corporation (Nasdaq:MNKD) on its commercial development.

In Newark, Delaware, iBioPharma Inc (OTCBB: IBPM) is collaborating with the Fraunhofer U.S.A. Center for Molecular Biotechnology, with funding by the Bill & Melinda Gates Foundation, to develop plant-made vaccines for influenza and other infectious diseases. IBioPharma recently announced new funding from the U.S. Defense Advanced Research Projects Agency for development of green plant technology for various biodefense objectives.

What makes for Forex scams? A lot of people think that any Forex trading system, informational product or service which fails to make them rich beyond their wildest dreams overnight must necessarily be a scam. These are generally the same people who flee from get-rich-quick scheme to get rich quick scheme, constantly disappointed because they fail to get rich. These people are unwilling to spend ay kind of time or effort learning how to make a product or service work for them and they just accuse them of being Forex scams. There is no such thing as a system which will make you rich overnight. Think about it for a minute ? if there was such a thing, wouldn?t we all be using it already? This system would also not continue to work so well for long ? it?s a matter of elementary economics.

All that money has to come from somewhere. While the standard of living can be raised universally by technological developments and other innovations, all trading or any other economic activity where there is no value being produced is a zero-sum game. For one person to make money, someone else has to lose it.

In the currency trading field, there are losses taken by people and financial institutions which are unknowledgeable or unconcerned with the fluctuations in the global currency markets. Importers and exporters cannot usually afford to wait for ideal currency exchange rates to schedule payments. Those taking overseas vacations similarly cannot let these factors dictate their schedule. It is simply not possible for everyone who gets involved in the Forex market to make money.