FOREX EXCHANGE

INTRODUCTION

When starting out trading forex on the net, it is an absolute must that you understand and become good at the basics first. Once you have a good concept on the basics then you can move forward. For example, one of the major forex influencer's are global news events. An ECB statement is released on Euro interest rates and this will cause a flurry of activity. Most newcomers will get scared and wait until everything calms down. If you hesitate you are likely to miss out on some great trades. You must act when the market is in volatility not when it is in a stand still.

WHAT IS FOREX?

It can simply be define as the trading of one currency to another.The forex also known as Foreign Exchange or FX.FOREX market is the biggest and fasted growing market on earth.Its daily turnover is more than 2.5 trillion dollars.The participants in this market are central and comercial banks,corporation,institutional investors,hedge funds and private individual like you.

WHAT TAKES PLACE IN THE MARKET

This is a place where one trade one currency with another just like the traditional trade by barter that was practised long time ago.for example,you might buy euro with us dollars,or you might sell japanese Yen fo r Canadian dollars.

THE ADVANTAGE OF FOREX IS LEVERAGING

So what is leverage? It can simply be define as the ratio of investment to actual value.for example using a 1,000 dollars to buy a forex contract with 100,000 dollars value is leveraging at a 1:100 ratio.The 1000 dollars is all you invest and all you risk,but the gains you can make may be many time greater.

HOW CAN YOU PROFIT FROM FOREX TRADINGYou can profit by buying low and sell at a high price.The potential comes from the fluntuations in the curency exchage market.The advantageous thing about forex market is that regular daily flunctuations -in the regular curency exchage markets,often around 1% -are multiplied by 100!

WHAT IS THE RISK IN FOREX TRADING

You cannot lose more than what you invested initially.The profit you may make is unlimited,you are strongly advised to never risk more than you can afford to lose.WHAT U NEED TO START1.A sytem of your own2.you must be connectedto the internet3.Minimum amount that worth 100 dollars4.have a mentor(an expert in forex trading)Also, you must register with a known forex manager or organisation.you deposit the amount you want to trade with.(minimal 100 dollars)Then you are ready to tradeHOW TO MONITOR YOUR TRADINGIf you have access to the internet definately you will have full control to your trading status.FOR DUMMIESTHERE IS A PARTICULAR SOFTWARE CALLED FOREX ROBOTTHIS ROBOT WILL TRADE FOR YOU WHILE YOU ARE WATCHINGIT KNOWS WHEN TO TRADE AT A PARTICULAR PERIODIT IS 99% FREE OF RISKIT'S TRADE 30-70 PIPS

While most of the currency pairs are in a loose range bound as talk and evidence of a US economic recession builds, the Dollar has witnessed a slight upswing. How to explain these seemingly contradictory trends? The rationale is surprisingly simple. While a US recession would predictably hit the US harder than other countries, it would still hamper growth abroad, especially in emerging markets that have come to depend on exports to the US to drive growth. Accordingly, investing in such emerging markets becomes relatively more risky than investing in the US, which is still considered to have the world's most stable investing climate from a long-term perspective. Thus, as risk aversion rises, so does the Dollar.

In addition to all the "fire your boss today" opportunities, there is a program on CNBC called Mad Money that seems to begetting to the masses and unknowing students to invest in the stock market. In reality this is a very expensive experiment especially for student that do not have a lot of capital. Buying a Goggle stock for $400.00 a piece is very expensive given that your capital can be wiped out if the stock goes against you by 100 points. That money could be better invested in the Forex positions (trades). The forex market which is also called FX is not really as difficult as it seems. There is not that much technical vocabulary to learn, and the risk is considerably low, if you compare it to the other markets. If we assume that you have 40% loosing trades, you still have 10 trades left to bring you profit. The fact that part time job and home businesses seekers should really consider is that you can choose when to trade, how much to trade and where you want to trade; all you need is an Internet connection, and you are ready to tap in the biggest market of the world with $ 2 trillion activity everyday in the same way banks and large corporation do. Contrary to the trading of stocks, you do not have to start with a $1000.00 capital. You can start with as little as $250.00. When you trade a mini lot (10,000 units) of e.g. GBPUSD currency pair your entry ticket costs $28.00. So when the pair goes your way 1 point, you are $1.00 in profit and vice versa. You can also trade lesser trading units and you can trade for as little as $1.00. It is therefore possible to turn a $28.00 investment to a profit of $100.00 in 24 hours if the currency moves in your direction 103 points. Imagine been able to do this 2 times a week. In a good week, this pair moves an average of 400 points.The Forex market is not a get rich quick scheme it is easy to learn and understand. It is also easy to make money in the forex if you let someone dedicated to your success teach you.

The Most Lucrative Part-time Job or Home Based Business EverThe Forex market is relatively new when compared to the traditional stock market. The Forex or Foreign Exchange Currency Market was open to the public in 1998. In a year it will be a decade old. This is one of the major reasons most people do not know about the Forex. The first reason why you should take a closer look at the opportunities in the forex market is because of its liquidity estimated at $2 trillion daily. The other reason is that it is traded 24 hours of the day and 6 days in a week and participation is open to all, from individuals like you and me to very large financial institutions.With the economic situation of our day worldwide, where there are no more job guarantees it is not unusual to wake up one morning and find oneself jobless. In such times, there is an increasing need for a lucrative part-time job or home based business. This is something that you can had absolute control over.There are of course a multitude of money making opportunities out there, but to be factual, it is very difficult to find a real opportunity which will allow you to make a living from your home computer. Even when you do, you would have to spend hours doing market research and invest large sums of money to bring it to fruition. That is if you have not gotten involved in a scam project. Most of the opportunities on the web today, even if you make big profits, may be held by someone else. In other words, when you participate in those turnkey businesses, you do not have control.

Here's my bold prediction for you in 2009!You will break your trading resolutions by the end of February.
You will abandon your trading plan
You will fall into the same destructive trading patterns you resolved to change
Your account will earn the same or less than in 2008 I know this this sounds harsh, but statistically speaking, that's what will happen to most traders. So, are you going to let this happen to you?True, statistics cover populations and not individual traders. The fact is, its traders who are outside of th enorm and trade with focused discipline that really achieve their financial goals. When is now the time to re-focus with discipline and dedication and really commit yourself to your trading plan?Today is January 15, 2009 and February is just around the corner. Let this be your wake-up call!Be honest with yourself and focus with the discipline of a seasoned trader on staying true to your trading plan or risk becoming a statistic!Happy "Disciplined" Trading!!

A Free Trading Video From the World's Largest Market Forecasting FirmThis video lesson features Elliott Wave International Senior Currency Analyst, Jim Martens, demonstrating how you can use Elliott wave analysis to identify opportunities in your Forex trading.This is just a short excerpt. For a limited time, you can access the full $79 online trading course, FREE. Visit Elliott Wave International for your free access.

When you turn on the TV (especially mainstream media) you are inundated with news of the demise of the dollar. Business news, national news and even your local news channels are leading into events with reports of the dollar and the economy. Analysts are featured and opinions are smattered across the airwaves in an attempt to provide an oracle response to current economic events.Beware the source and follow your system.In these volatile times it is easy to get caught up in the hype provide by all the news media and analyst. It is natural to want to look for guidance. Remember to trust your system and more important trust yourself. You, after all, are the single largest determinant of your success.Your approach should remain consistent, almost impervious to the events occurring because you follow your plan with discipline and ruthless detail to executing at optimum performance.Be disciplined and follow your plan. If market conditions don’t suite your style – sit this one out until conditions provide your with your personal edge!Happy Trading!

* MARKETThe currency trading @ Forex (foreign exchange) market is bigger and fastest growing market in the world. Daily turnover more than 1.4 Trillion Dollar daily. The participants in the market are commercial bank, corporations, institution investor and also private individual like you.* WHAT HAPPEN IN THE MARKET??In Forex market, the currency of various country are place to trade. For example for currency- US Dollar- Great Britain Pound- Japan Yen- Australia Dollar- Canadian Dollar* HOW TO MAKE PROFIT FROM FOREX??In Forex, there is a huge different with stock trade. In stock trade, when a price rising, investor can make a profit and when price going down they lose.Forex you can make profit both when the currency is is going up or going down. You can buy the currency in bottom and sell in top. This is Your Forex Solutions.There is a magnificent of FOREX..HOW DO I START TRADING??There is many Forex broker you can choose and use to start trading. For Your Forex Solutions and for a newbie, i suggest use this 2 platform..1 ) Marketiva2) LiteForex.* MARKETIVAYou can use Marketiva as a platform to you start trading. It easy and friendly user.

In Forex, you must have 1 account to deposit or withdraw Forex fund. I call this account is ''internet money''. Marketiva and LiteForex accept E-Gold, Bank Wire and Wire Transfer for deposit fund.To use it, u must register to create a new account. It's Free account* FOR E-GOLD :- it only takes a few hours to deposit You also can use this platform to start trading. Actually, in LiteForex, you can refer for currency moving graph more clearly and can added a additional indicator and withdraw a money (1-24 hours)

Today we see the crux of the issue.The AUDJPY has suffered a pullback. A return to recent highs gives us the possibility of a double top. A bounce off the recent low gives us the possibility of the a double bottom. There may be more complex structures at play as well, but you get the idea.This is risk point. This is an opportunity point.If you get in, say with a long position right now, you don't know if it will turn around. You don't know if the recent upward trend will survive. Sure, you'll set a stop, but you don't really want to throw money away at stops needlessly.You have to look for clues as to the market's probable direction. For example, you might notice a pattern on the candlestick chart, the stochastic, RSI, or perhaps some other indicator.I'm long term bullish, but that doesn't mean the market can't confound me long enough to relieve me of my money if I'm foolish about it. There's an opportunity out there right now. Who's going to figure out what it is and who's going to suffer a loss for it?Hey, seriously, there is no shame in staying on the sidelines and waiting for whatever signals you follow if there aren't any there now.EDIT: By the way, I see the price dropping below support, so I think we're going to see a bit of downward action before we return to optimism.

A few days ago I was saying that perhaps the AUDJPY would pull back after it's very fast rise up into the 71.xx range.It continued rising to somewhere around 72.80 instead. However, early last night it was bumping down around the 70.00 mark. Was that my correction?My three hour (I trade with Oanda) shows leg room all the way to 68.xx if it's thinking about correcting.That's the trick with Forex trading, you never really know whether it's done going in any particular direction or if it's just throwing you a feint.What can I say? Roll with the punches.

KUALA LUMPUR: Hong Leong Bank Bhd's (HLB) wholesale banking division yesterday launched the Reuters Electronic Trading and Automated Dealing system (RET-AD) to distribute live streaming foreign exchange (forex) rates to its branches. Chief operating officer of wholesale banking Kua Wei Jin said the system had been implemented in 20 branches, mainly in the Klang Valley. During the progressive roll out in the past six months, the volume of transactions in the 20 branches had picked up, he told reporters after the launch yesterday. “Further roll-out will depend on supply and demand over two to three years,” he said. Reuters Malaysia managing director Simon Soo Hu said HLB would be among the first five major banks in Malaysia to adopt the RET-AD system. Two banks in Malaysia had gone “live”, and apart from HLB, two more banks would be coming online soon, he added. Among the system's multinational users are financial institutions such as JP Morgan and UBS. In his speech, Soo said RET-AD allowed financial institutions such as HLB and their customers to conduct real-time online foreign exchange and money market transactions. According to a Reuters estimates statement, the majority of the daily volume of foreign exchange transactions totalling US$5bil was predominantly trade related.

There is so much to learn when it comes to trading within the DXSynergy system.If you want my suggestion on buying and selling digots, please read on:I do not have a Merchant Account (console) because I'm not ready to make that commitment. As of writing this, there are also no Merchant accounts available. These accounts are based on supply and demand. There needs to be a fine balance between the two, so the system can thrive.IMPORTANT FACT 1: When you create a DXAccount in DXSynergy, make sure you create your DXPortfolio in the same currency. Always try and purchase the same digot symbols as your DXPortfolios base currency to avoid any currency exchange fees.IMPORTANT FACT 2: If you want to mix up digot destination purchases in one DXPortfolio, create your DXAccount and DXPortfolio in the DXG base currency. This will help save on any currency exchange fees as well.That being said, I personally do not want a DXMerchant account at this time because it requires a lot more hands-on attention that a DXPortfolio account. You must log into your console at least 3 to 4 times per day, to process transactions. You also have to tie up your funds to process these requests. Also, some people involved in transactions don't follow through in a timely manner, causing your transaction to be in the “pipeline” until the deal is done. The rewards are higher with commissions and bonuses, but there are headaches. With the Portfolio side, all we care about is buying digot and getting our TDV (Total Digot Value) to grow. I like the Portfolio side, or don’t you?

Why is it that very few traders succeed in the Forex trading environment while the grand majority of traders fail to achieve success? Although there is no hard answer to this question, there are a few things that will put you one step ahead and will definitely put the odds in your favor.
The main purpose of this article is to guide you through some important aspects of Forex trading. But in a different way, instead of telling you what to do or the best way to do it, it will tell you what to avoid. Sometimes it is better to identify the main drawbacks on a discipline and then isolate them so we have the best results at a certain level of development.
The search for the Holy Grail
Many traders spend years and years trying to find the Holy Grail of trading. That magic indicator or set of indicators, only known by a few traders, that will make them rich in a short period of time.
Fact: Well, there is no magic indicator, nor a set of indicators that will make anyone rich in a short period of time. The main reason of this is because market changes, every single moment is unique. Every Forex trading system will fail from time to time. Our work here is to find a Forex trading system that fits our personality as traders, otherwise the trader will find it hard to follow it.
Looking for Easy Money
Unfortunately most traders are attracted to the Forex market for this reason. Mainly because of the publicity showing or rather trying to show how easy is to trade and make money in the Forex market.
Fact: Yes, it is very easy to trade, anyone can do it. It is as hard as one click. But the second part of it isn't that easy. Making money or achieving consistent profitable results is hard. It requires lots of education, patience, discipline, commitment, and this list could go to infinite. In a few words, it is possible to have consistent profitable results, but definitely it is not easy.

Someone sent me an article yesterday, so today I’ve decided to put it up on my site. This article is called 133 Trading Tips and it really contains 133 tips on how to trade Forex. I don’t know how one could come up with so many tips to a Forex trader, but all of them really make sense (at least to me). You can read that to sum up your knowledge or to find something new to yourself, but it’s definitely worth seeing. Here I’ll list some of my favorite tips from this article:
24. Be more objective and less emotional.30. Don’t trade impulsively; have a plan.47. Know why you are in the markets. To relieve boredom? To hit it big? When you can honestly answer this question, you may be on your way to successful Forex trading.58. Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.64. A «buy and hold» strategy doesn’t apply in Forex trading.69. Do not overtrade.89. Cutting losses is painful for every trader. The ability to cut one’s losses in time is the sign of a seasoned trader.132. Don’t use the markets to feed your need for excitement.
Posted by Дилян Дилянов at 12:56 AM 0 comments
Labels: Forex

Although the first quarter of 2008 ended on March 31, it wasn't until last week that the Federal Reserve Bank finally finished tallying all of the data and released its obligatory report on the performance of the Dollar. On a trade-weighted basis, the Dollar declined 4%, a figure which accounts for a whopping 11% decline against the Japanese Yen and an 8% decline against the Euro. According to the Fed's analysis, January was relatively kind to the Dollar, as traders remained uncertain as to how the credit crisis would affect the US economy. An outpouring of negative data in the next 4-6 weeks sent the Dollar spiraling downward, although it recovered at the end of March, as the Fed moved to build liquidity in the financial markets. The Fed also noted that it did not intervene in currency markets during the first quarter, firmly putting to rest rumors to the contrary. Forbes reports:
There had been intermittent discussion in the markets of a coordinated foreign exchange intervention by the G-3 central banks, but the Fed report confirmed officially what markets already realized.

Just a few weeks ago, the Central bank of Canada aggressively cut interest rates in order to slow the spread of the US economic downturn to Canada. Accordingly, investors were quite bearish on the Canadian Dollar. With the price of oil surging, however, the Loonie has regained some of its luster, inching back towards parity with the Dollar. If commodity prices remain at current levels, Canada may avoid an economic recession. Economists have scaled back expectations that the BOC will have to continue cutting interest rates. Nonetheless, the median investor expectation is for a sustained decline in the Loonie, perhaps to $1.08 by year end. Bloomberg News reports:
The loonie, as the currency is known because of the image of the bird on the one-dollar coin, has traded near parity with its U.S. counterpart this year after climbing 17 percent in 2007.

The US Federal Reserve Bank is known for ambiguity and vagueness. The Bank of England, it appears, is not trying to emulate this approach. The Bank put an end to speculation about its near-term monetary policy by announcing that it does not plan to cut interest rates for at least two years. Apparently, inflation has breached the Bank's 2% target, and its internal models are forecasting that it won't be until 2010 that price inflation returns to a more palatable rate. This is bad news for the British economy, which is in the throes of an economic downturn precipitated by the housing crisis and would surely benefit from a loosening of monetary policy. By extension, the British Pound should also suffer a "correction," as a combination of inflation and lack of suitable investment opportunities will send investors rushing for the exits. The Financial Times reports:
Mr King contrasted his position – and its focus on controlling inflation – with that of Ben Bernanke of the US Federal Reserve. “We did not fall prey to the sirens to cut interest rates further as some other central banks have done,’’ he said.

The slight recovery of the USD has been accompanied by a couple of other interesting trends: falling gold and oil prices, and rising equity and bond prices. What is the connection here? With regard to gold and commodity prices, the prevailing theory was previously that high prices were caused not by supply issues, but rather by the Fed's easy monetary policy, which was stoking the embers of inflation. The recent rise of the Dollar has poked a broad hole in this theory, because of the simultaneous fall in prices for certain commodities, namely gold. This has led some analysts to conclude that commodity prices are fluctuating irrespective of the Dollar.
With regard to oil, there does exist a 95% correlation between the price of oil and the EUR/USD exchange rate. However, it now appears that strong oil had been driving the weak Dollar, and not vice versa. The Dollar is also deriving some impetus from a rally in equity and bond markets, which have outperformed their European rivals. Bond yields remain lower in the US, but with the stabilization of the Dollar, perhaps foreign investors will be convinced that the US is the least risky place to invest during the global economic downturn.

The Australian Dollar is rapidly approaching parity with the USD, having risen 12.8% in the year-to-date. In fact, it recently notched a 24-year high against the Dollar. The currency's strength is connected closely with the US-Australia interest rate differential, which currently measures a whopping 5%. While the Australian Dollar has always been a favorite target of carry traders, it has received a special boost from the easing of US monetary policy, which has turned the Dollar into a funding currency. The New Zealand Kiwi has also performed well, thanks to a benchmark interest rate of 8.25%. However, New Zealand rates are probably headed downwards, whereas the consensus for Australia is for rates to remain at current levels, or even to rise, depending on inflation. Bloomberg News reports:
Board members decided to leave the rate at 7.25 percent because of "the substantial tightening" in financial conditions since mid-2007 and "uncertainty surrounding" the outlook for economic growth and inflation.

In the early months of 2008, the Icelandic Krona continued its downward slide, ultimately losing 26% of its value. Inflation is nearing 12%, the economy is in tatters, and there is a crisis of confidence affecting the banking sector. Having already raised interest rates to 15.5%, the Bank of Iceland was out of options. Perhaps out of concern that the turmoil in Iceland would spread to continental Europe, the Central Banks of Norway, Sweden, and Denmark were impelled to act. Their assistance took the form of a swap agreement, which provides Iceland with access to €1.5 Billion in emergency funding.
As soon as the news broke, the Krona appreciated nearly 5%, as some semblance of confidence in the country's still-fragile banking sector was restored. Despite the emergeny funding, Iceland is far from being in the clear. The country's national debt remains problematic, as evidenced by a recent downgrading of its credit score. If Iceland were ever to make use of the funds covered under the swap agreement, investors would probably rush for the exits and send its currency on another downward spiral. The New York Times reports:
Iceland, a country accustomed to booms and busts, probably cannot escape an especially painful adjustment this time, as it digests years of heavy borrowing from abroad. Public and private economists differ mainly on the length and depth of the contraction.

I’ve been talking about another leg down and I think we have it underway. Equities markets are crashing thanks to an ulterior motive based move by Obama. The market can see the dictator favors a strong UAW and weak or at best heavily saddled GM. This leg down will take us to lows or slightly lower. The next 20% move up from lows will most likely show the bottom is in. We don’t have long to wait for this move to complete. Once the avalanche starts it causes panic in the markets; which should last no more than 2 weeks. I foresee the market stalling for about a year moving up and down in these cheap prices. It looks to me like the real money makers will buy the lows and sell the highs in a channel pattern 5-10 times over the next year in a sideways market worth 250-300 points from top to bottom. It’s possible that the channel has a slight upward angle as well. The completion of a sideways market is usually a very fast move up or down, and I foresee a move up more so than a move down. Hope this helps.

There have been more scary movies in theatres lately and I suppose the money behind those movies is motivated partially by the economy. The smart folks think scary movies do better in times of economic despair. Personally I don’t view the scary movies. When I flipped open drudgereport today I was uncomfortably scared to see Obama is now running American corporations that he feels have been misguided. Rick Wagoner was fired by obama recently because obama didn’t think Wagoner had done a good job as CEO of GM. Wagoner has been with GM since 1977 and CEO since 2003.
My frustration with this scenario is obama is taking the light off what is really wrong with this company and casting it on an undeserving scapegoat. GM needs leverage against the auto union and freedom in creating cars Americans want. Rather than fire the CEO of GM; why not fire the CEO of the United Auto Workers Union? The UAW is the heaviest weight GM is holding. If a runner was pulling a 50lb weight; you would not replace the runner with another runner in order to attain a faster speed. You would ostensibly cut the weight to ensure a faster speed. What has happened here is very telling. The weight is not going to change, folks. As a matter of fact; the weight will most likely get heavier, and in order to pull the weight the government is going to step in like performance enhancing drugs. The problem with performance enhancing drugs is they are unsustainable in the long term. Performance enhancing drugs clog up major arteries. They add pressure to the normally dynamic, yet stable system. This added pressure either results in premature, abrupt death or a slow painful death via corroded arteries and overuse injuries. I hope you all see the parallels here. I forgot to mention the powerful psychological disturbances that are caused by these performance enhancing drugs. Perhaps we can begin calling them Obamachoses. [obamachoses is plural for obamachosis or psychosis]
Is it just me? No the markets agree the move was wrong. Their opinion is loudly voiced by selling GM shares down 24% in one day. Confidence was stripped from this great American company in one fell swoop by a misguided dictator with ulterior motives.

Hey I like making money as much as the next guy, but this new carbon trading scheme has my pants in a bunch. I’m gonna give you 10 seconds to say duh before I make you say it. Wait for it….Wait for it….Carbon trading is going to trade farm, or unused land’s positive oxygen balance for land used by oxygen negative corporations’ land. Wait for it…Wait for it…Whammo! Algae produces 70-90% of the Earth’s oxygen! Double Whammo with a reverse Whammo to reduce the impact of said Whammo or your face would have just inverted!!!!!! Echo of Whammo still going around the Earth…….If you’re not following at this point let me explain again but in more color. Carbon trading is going to trade farm land ie. grass and trees for the negative impact of manufacturing plants. Based on what I just told you we know grass and trees are a paltry component of oxygen producing organisms in this planet. Furthermore the greenies are trying to run up land prices in all corners of the world. They are advocating buying cheap land in 3rd world countries to plant grass or trees to offset the carbon emissions of developed nations. News flash! When these morons make corporations completely non viable in the USA, AU, UK, JP etc the corporations are going to move to the 3rd world countries themselves. More than likely the regulation in those countries will be more paltry than their oxygen production and the corporations will ignore all green moronic ideology.

Well established tech company with new division in need of outgoing, motivated sales reps and managers for new product launch. Position deals in medical technology, opportunities are endless. I am looking for 1 manager to oversee and direct sales and salespeople in the state of NC. You will be selling B2B as well as to the average consumer. Background and experience can vary, and do not necessarily need a technology background. Candidate can start full or part time. Commissions paid on sales, residuals paid on all re-orders. Please go to www.TeamSmartLock.com to learn more about the position and contact us through there if interested. Looking for 1 manager in each state, position will fill quickly.

I’m looking at a performance chart of an MIT graduate/ Actuary/ a couple other things, and I recognize his returns have been almost identical to the S&P500. This is typical for an optimized system and everyone including the largest banks in the world use this concept to some degree. You’ll see in the next year that only small investors use these models because they are destined to fail as soon as the market turns. Conventional wisdom tells us the market trends 20% of the time but if you zoom out to the weekly or monthly chart there should be a trend in place at all times and an optimized system will realize that trend by taking more longs during a long trend and more shorts during a short trend. The result is when the trend changes you take losses on the optimized system. Depending when these characters begin their optimizations they will take their losses at different times. People who are optimizing for the market selloff beginning this year are heavy short and when the market recovers they will be heavy losers until they pull the plug. My prediction that firms will wisen up should be hastened by the next market turn. These guys are scrambling to reoptimize their systems or their systems are auto reoptimizing and they are becoming geared more to the short side of things so when the market rolls to the long side they will begin taking losses as the S&P begins to recover and their investors will not stand for it.The recent craze of data mining and optimization is nearly over. As with any industry a proliferation and subsequent wash out period must exist. The fact of the matter still remains in trading that a farmer can trade as well as an MIT graduate and I would venture to guess the farmers would out trade the MIT’rs most of the time. My rational for this presumption is simple. While the fools tell you gold is going to $5000 the common sense farmers will tell you if gold goes to $5000 then my corn goes to $25/bushel and that is not possible. Call it what you will; the school of hard knocks, common sense, conventional wisdom. Schools don’t teach this stuff anymore. Common sense would beg the question; why send your kids to school? If common sense had an ego I would ignore its question, but as long as I’ve known common sense there has been no ego; and you know what, it’s been correct a lot more than a particular new grad program at the institute of technology in Massachusetts.