Stanley O'Neal, Chairman and CEO of Merrill Lynch & Co., is seen in New York...By JOE BEL BRUNO, AP27 minutes ago NEW YORK — Stan O'Neal, the beleaguered chief executive of Merrill Lynch & Co., was reportedly close to resigning Sunday amid broad criticism for leading the world's largest brokerage to its biggest quarterly loss since it was founded 93 years ago.
In a week that included an $7.9 billion write-down related to subprime mortgages and O'Neal's unauthorized overture to sell the company to retail bank Wachovia Corp., the board of Merrill Lynch reached a broad consensus Friday for his dismissal, according to several media reports. He would become the highest-ranking casualty of the global credit crisis that swept through Wall Street's biggest investment banks during the third quarter.
An announcement of his departure could come as soon as Sunday evening or Monday morning, according to reports in The Wall Street Journal and The New York Times.
A Merrill Lynch spokesman declined to comment Sunday.
Merrill's 11-member board, which currently includes O'Neal as chairman, was expected to initiate a search to find a replacement that will include both internal and external candidates.
O'Neal, 56, came under fire Wednesday when Merrill Lynch announced a $2.24 billion loss as big bets on mortgage-backed securities were rendered almost worthless because of a global credit squeeze. His fate was also plunged into doubt after he initiated talks about a possible merger with Wachovia, according to the Times. Such a deal could have handed O'Neal a $250 million separation package if he wasn't chosen to lead the new company.
O'Neal, who rose to power five years ago, was known for shaking up top management and putting a greater emphasis on riskier bets rather than the safety of just selling stocks. That strategy _ which handed Merrill Lynch record results during the market's peak _ came with a heavy cost during the tumultuous third quarter. The company said Wednesday it didn't know what impact it would have in the current earnings period.
O'Neal shouldered the blame for the earnings miss.
"I'm not going to talk around the fact that there were some mistakes that were made," he said in a conference call with analysts Wednesday. Merrill Lynch shares plunged for two days, then spiked Friday amid speculation O'Neal might be forced out.
Investors, who have seen Merrill's shares slump by 30 percent this year, will now be keenly interested in who might take control. Widely tipped as a successor is Laurence Fink, currently chairman and CEO of asset manager BlackRock Inc. He's credited with being one of Wall Street's most powerful players in the fixed-income market, which has been slammed by a global aversion to risk as mortgage-backed securities lost significant value during the summer.
Fink had dinner with O'Neal on Thursday but has yet to meet with Merrill's board, according to a person familiar with the matter who was unauthorized to speak on the record. Merrill Lynch owns a 49 percent stake in BlackRock.
Internally, Gregory Fleming, Merrill's co-president, has been named as a possible replacement, as has Bob McCann, who heads Merrill's brokerage division.
There was also speculation that Fink, Fleming and McCann might enter into some power-sharing arrangement until the board can find a permanent replacement.
Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Sunday, October 28, 2007
Friday, October 5, 2007
Forex Trading - Earn Bigger Profits Now By Applying the 80-20 Rule
The 80:20 rules applies in many spheres of life and if you know what it is and apply it in forex trading you will increase your profits dramatically. So lets take a look at what it is and specifically how to apply it to forex trading.
In the late nineteenth century an Italian economist named Vilfredo Pareto observed that, in his native country of Italy, a small group of people held nearly all the power, influence, and wealth.
Came to the conclusion that in most countries, about 80% of the wealth and power was controlled by about 20% of the population and he referred to this as:
Predictable imbalance, which became known as the 80:20 rule.
He concluded that in relation to an individuals effort:
20% of your effort or energy output will produce 80% of your income furthermore, 20% of your time will produce 80% of your work out put or income.
Does this apply to forex trading?
Yes it does and the lesson you can learn from the 80:20 rule is to work smart not hard. Concentrate your effort on the trades that have the best risk reward.
Cut The Number Of Trades You Do
Its a fact that most traders trade too much and execute trading signals to often, as they want to force the market to give profits, but of course profits cannot be forced.
The way to apply the 80:20 rule to currency trading is drop your frequency of trading. If you look at forex charts you will see that there are very few big trends each year but when they do occur they produce huge profits.
How do you spot them?
Here is a checklist
1. Look for valid resistance levels, that if broken are considered significant by the market.
2. Learn how to use a breakout methodology and go with breaks of these support and resistance levels.
3. To increase the odds even further make sure that you use momentum indicators to confirm that price momentum is supporting a break.
4. As you are trading less you can afford to risk more on these trades and increase profitability.
5. Dont trail stops to close and have a profit target that relates to the size of the break.
The above method will ensure you are trading a lot less and it could be as much as 80%, but your profitability will be increased.
Its a fact that most of the big profits are generated from trades that break from new market highs - NOT market lows.
So if you have been buying dips its time to re think your forex trading strategy.
Trading Less for More Profits
If you like excitement and the thrill of trading this strategy is not for you. The above strategy is all about making money and trading the trades with the best risk to reward which can yield triple digit annual gains.
If you have been trading and making marginal profits, apply the 80:20 rule to your trading, cut the frequency of trades and increase the profits!
In the late nineteenth century an Italian economist named Vilfredo Pareto observed that, in his native country of Italy, a small group of people held nearly all the power, influence, and wealth.
Came to the conclusion that in most countries, about 80% of the wealth and power was controlled by about 20% of the population and he referred to this as:
Predictable imbalance, which became known as the 80:20 rule.
He concluded that in relation to an individuals effort:
20% of your effort or energy output will produce 80% of your income furthermore, 20% of your time will produce 80% of your work out put or income.
Does this apply to forex trading?
Yes it does and the lesson you can learn from the 80:20 rule is to work smart not hard. Concentrate your effort on the trades that have the best risk reward.
Cut The Number Of Trades You Do
Its a fact that most traders trade too much and execute trading signals to often, as they want to force the market to give profits, but of course profits cannot be forced.
The way to apply the 80:20 rule to currency trading is drop your frequency of trading. If you look at forex charts you will see that there are very few big trends each year but when they do occur they produce huge profits.
How do you spot them?
Here is a checklist
1. Look for valid resistance levels, that if broken are considered significant by the market.
2. Learn how to use a breakout methodology and go with breaks of these support and resistance levels.
3. To increase the odds even further make sure that you use momentum indicators to confirm that price momentum is supporting a break.
4. As you are trading less you can afford to risk more on these trades and increase profitability.
5. Dont trail stops to close and have a profit target that relates to the size of the break.
The above method will ensure you are trading a lot less and it could be as much as 80%, but your profitability will be increased.
Its a fact that most of the big profits are generated from trades that break from new market highs - NOT market lows.
So if you have been buying dips its time to re think your forex trading strategy.
Trading Less for More Profits
If you like excitement and the thrill of trading this strategy is not for you. The above strategy is all about making money and trading the trades with the best risk to reward which can yield triple digit annual gains.
If you have been trading and making marginal profits, apply the 80:20 rule to your trading, cut the frequency of trades and increase the profits!
Forex Trading Signals - Do You Need Them?
Nobody has ever claimed that learning the Forex trading system was an easy one. In fact, one of the hardest parts is knowing the good entrance and exit points and is likely the most time intense. Using currency trading signals can greatly improve the experience because they give the researched indicators of these entrance and exit points. The brokerages that send out the Forex trading signals monitor the ever-changing prices in currency and send out these signals to their subscribers.
It is entirely possible to conduct trades on the Forex market with currency trading signals. In fact many professional traders practice this method today. They spend the majority, if not all, of their waking hours in front of a computer screen studying the trends and analyses in order to provide their traders with the most up to date, factual information relating to the market. Most investors prefer not to have to be at the computer constantly monitoring changes in order to assess when the right entry and exit points are happening. Forex trading signals provide the individual investors the opportunity to have life outside of their foreign currency trading affairs.
The reason many investors who try their hand in the system decide against currency trading signal subscriptions is because of the cost. It is not a complementary service when one signs up for a Forex account. To be a subscriber an investor is required to pay for a monthly or yearly subscription. Luckily enough, many well-seasoned brokerages offer Forex trading signals as part of their service and are the main subscribers to the service. This will be included in the broker's fees when initially getting a Forex account of any type.
The companies that initiate the currency trading signals base the information from strict technical analysis to ensure accurate and real time information. Coupled with identifiable indicators to establish trends as well as exit and entrance points, the technical information is compiled into the latest Forex trading signals. They are sent out frequently as the foreign exchange market is a volatile market that is extremely fast paced. Once the trader receives the currency trading signals it is then up to the individual investor to act upon the information and execute trades accordingly.
It is imperative to understand to the beginner that although Forex trading signals are an extremely useful tool, it is not the bible of the foreign exchange market. They are merely implemented to give dependable information as an indication to the investor of how the market is currently performing. The currency trading signals are not a fail-safe to be trading on the market. To put that in perspective, if Forex trading signals were a absolute truth, there wouldn't be any failure in the foreign exchange market at all.
It is entirely possible to conduct trades on the Forex market with currency trading signals. In fact many professional traders practice this method today. They spend the majority, if not all, of their waking hours in front of a computer screen studying the trends and analyses in order to provide their traders with the most up to date, factual information relating to the market. Most investors prefer not to have to be at the computer constantly monitoring changes in order to assess when the right entry and exit points are happening. Forex trading signals provide the individual investors the opportunity to have life outside of their foreign currency trading affairs.
The reason many investors who try their hand in the system decide against currency trading signal subscriptions is because of the cost. It is not a complementary service when one signs up for a Forex account. To be a subscriber an investor is required to pay for a monthly or yearly subscription. Luckily enough, many well-seasoned brokerages offer Forex trading signals as part of their service and are the main subscribers to the service. This will be included in the broker's fees when initially getting a Forex account of any type.
The companies that initiate the currency trading signals base the information from strict technical analysis to ensure accurate and real time information. Coupled with identifiable indicators to establish trends as well as exit and entrance points, the technical information is compiled into the latest Forex trading signals. They are sent out frequently as the foreign exchange market is a volatile market that is extremely fast paced. Once the trader receives the currency trading signals it is then up to the individual investor to act upon the information and execute trades accordingly.
It is imperative to understand to the beginner that although Forex trading signals are an extremely useful tool, it is not the bible of the foreign exchange market. They are merely implemented to give dependable information as an indication to the investor of how the market is currently performing. The currency trading signals are not a fail-safe to be trading on the market. To put that in perspective, if Forex trading signals were a absolute truth, there wouldn't be any failure in the foreign exchange market at all.
Moving Averages - The Forex Trading Power Indicator
Every forex currency trader must know how to accurately interpret technical indicators in order to be a successful trader. Being able to consistently interpret currency trading technical indicators is the difference between forex trading success and failure. Moving averages are one of the technical indicators frequently used by forex trading pros. Let's discover what moving averages are and how they are useful for forex traders.
Moving averages are one of the most popular and easy to use tools available to the forex trader. While technical analysis is largely subjective, moving averages are mathematically precise and objective. One of the reasons moving averages are so popular is that they embody some of the most common stipulations of successful forex trading. Moving averages are extremely important for not only isolating trends, momentum, and support/resistance, but more importantly, for highlighting the underlying bias of the dominant trading cycles. Because the forex market is a spot market, moving averages are used to calculate the current average of prices, and can help traders make investment decisions on the spot.
Moving averages are a useful technical tool in a trending market. The reason for this is simple; they are considered by most analysts the most basic and core trend identifying indicators. It is designed to smooth out temporary price fluctuations and reveal the true path of the underlying trend. Moving averages may also act as support and resistance levels in a trending market. Some investors prefer simple moving averages over long time periods to identify long-term trend changes. When two moving averages are used together, the longer term moving average is used to help identify the trend, and the shorter one for timing purposes. When there is no trend, the moving averages are flat and are not of much use. Fortunately for forex traders the forex market is a trending market - a perfect market for utilizing moving averages.
There are five popular types of moving averages: simple, exponential, triangular, variable, and weighted. The two major types of moving averages are "simple" and "exponential". Simple moving averages are widely used, predominately because of its ease of computation. Simple moving averages apply equal weight to the prices. A simple moving average (SMA) is formed by finding the average price of a currency or commodity over a set number of periods of time.
Exponential moving averages (EMA) are by and large preferred when charting prices on the currency markets. Exponential moving averages reduce the lag by applying more weight to recent prices relative to older prices. The method for calculating the exponential moving average is fairly complicated. The important thing to remember is that the exponential moving average puts more weight on recent prices.
History has shown that when prices begin trading above the moving average line the market is becoming bullish and traders should be looking for buy entry points. When prices begin trading below the moving average line the market is becoming bearish and traders should look for an opportunity to sell. Investors typically buy when the price of currency pair rises above its moving average and sell when the it falls below its moving average.
Before ending this article let's review. Moving Averages are one of the most popular technical indicators used by traders charting the forex market. Moving averages are extremely important for not only isolating trends, support & resistance and momentum but more importantly, for highlighting the underlying bias of the dominant trading cycles. Master interpreting moving averages and other popular forex trading technical indicators and you will become a successful and wealthy forex trader.
Moving averages are one of the most popular and easy to use tools available to the forex trader. While technical analysis is largely subjective, moving averages are mathematically precise and objective. One of the reasons moving averages are so popular is that they embody some of the most common stipulations of successful forex trading. Moving averages are extremely important for not only isolating trends, momentum, and support/resistance, but more importantly, for highlighting the underlying bias of the dominant trading cycles. Because the forex market is a spot market, moving averages are used to calculate the current average of prices, and can help traders make investment decisions on the spot.
Moving averages are a useful technical tool in a trending market. The reason for this is simple; they are considered by most analysts the most basic and core trend identifying indicators. It is designed to smooth out temporary price fluctuations and reveal the true path of the underlying trend. Moving averages may also act as support and resistance levels in a trending market. Some investors prefer simple moving averages over long time periods to identify long-term trend changes. When two moving averages are used together, the longer term moving average is used to help identify the trend, and the shorter one for timing purposes. When there is no trend, the moving averages are flat and are not of much use. Fortunately for forex traders the forex market is a trending market - a perfect market for utilizing moving averages.
There are five popular types of moving averages: simple, exponential, triangular, variable, and weighted. The two major types of moving averages are "simple" and "exponential". Simple moving averages are widely used, predominately because of its ease of computation. Simple moving averages apply equal weight to the prices. A simple moving average (SMA) is formed by finding the average price of a currency or commodity over a set number of periods of time.
Exponential moving averages (EMA) are by and large preferred when charting prices on the currency markets. Exponential moving averages reduce the lag by applying more weight to recent prices relative to older prices. The method for calculating the exponential moving average is fairly complicated. The important thing to remember is that the exponential moving average puts more weight on recent prices.
History has shown that when prices begin trading above the moving average line the market is becoming bullish and traders should be looking for buy entry points. When prices begin trading below the moving average line the market is becoming bearish and traders should look for an opportunity to sell. Investors typically buy when the price of currency pair rises above its moving average and sell when the it falls below its moving average.
Before ending this article let's review. Moving Averages are one of the most popular technical indicators used by traders charting the forex market. Moving averages are extremely important for not only isolating trends, support & resistance and momentum but more importantly, for highlighting the underlying bias of the dominant trading cycles. Master interpreting moving averages and other popular forex trading technical indicators and you will become a successful and wealthy forex trader.
What is Forex Trading?
FX, Forex, Foreign Exchange are all names for the transaction of one currency for another, e.g. you buy 100.00 with $150.25 or sell $150.25 for 100.00. Traders buy and sell currencies with the hope of making a profit when the value of the currencies changes in their favor, whether from market news or events that takes place in the world.
Forex trading has been around for years. It is viewed as the largest financial market in the whole world. The estimated amount of daily volume is 1.5 trillion (US) dollars. A true 24-hour market, Forex trading begins each day in Sydney, and advances around the globe as the business day begins in each financial center, first to Tokyo, London, and New York.
Unlike other financial markets, Forex Allows investors to respond to currency fluctuations caused by economic, social and political events instantaneously, at the time that events occur, day and night. The market only closes on weekends.
A benefit of forex trading is that it is not really subject to the same kinds of swings in the market that stocks are subject to. Of course if you always buy and sell the same currencies then there will be market swings. But, because there are hundreds of currencies out there, there is always going to be something for you to make money on because while one currency is up in value another one is down and vice versa.
Forex trading does not take huge amounts of capital to start. Traders can begin investing with as little as three hundred dollars. Transaction costs are usually minimal. Often brokers will provide you with the tools and data you need to make trades for free. There are a large number of buyers and sellers all selling the same products. Information is free-flowing and there are few barriers to participation.
Forex trading is an over-the counter (OTC) market. This means buyers and sellers do not meet in central locations to make exchanges. Instead transactions are completed by phone, fax, and email or through the websites of brokers specializing in this market. Currencies are always traded in pairs. Transactions always involve selling one currency and buying another. If you believe the euros would gain against the dollar you would sell dollars and buy euros.
A very liquid market, your money is not held up for long periods of time. You will have full control of your capitol. With planning, a good system to follow, strong money management skills, and self-discipline, Forex trading can be relatively low risk and quite lucrative.
Forex trading has been around for years. It is viewed as the largest financial market in the whole world. The estimated amount of daily volume is 1.5 trillion (US) dollars. A true 24-hour market, Forex trading begins each day in Sydney, and advances around the globe as the business day begins in each financial center, first to Tokyo, London, and New York.
Unlike other financial markets, Forex Allows investors to respond to currency fluctuations caused by economic, social and political events instantaneously, at the time that events occur, day and night. The market only closes on weekends.
A benefit of forex trading is that it is not really subject to the same kinds of swings in the market that stocks are subject to. Of course if you always buy and sell the same currencies then there will be market swings. But, because there are hundreds of currencies out there, there is always going to be something for you to make money on because while one currency is up in value another one is down and vice versa.
Forex trading does not take huge amounts of capital to start. Traders can begin investing with as little as three hundred dollars. Transaction costs are usually minimal. Often brokers will provide you with the tools and data you need to make trades for free. There are a large number of buyers and sellers all selling the same products. Information is free-flowing and there are few barriers to participation.
Forex trading is an over-the counter (OTC) market. This means buyers and sellers do not meet in central locations to make exchanges. Instead transactions are completed by phone, fax, and email or through the websites of brokers specializing in this market. Currencies are always traded in pairs. Transactions always involve selling one currency and buying another. If you believe the euros would gain against the dollar you would sell dollars and buy euros.
A very liquid market, your money is not held up for long periods of time. You will have full control of your capitol. With planning, a good system to follow, strong money management skills, and self-discipline, Forex trading can be relatively low risk and quite lucrative.
FOREX Trading Systems - Learn the Secrets That Made $50 Million Dollars
W D Gann amassed a fortune of $50 million dollars in the first half of the last century, although he died in 1955, his trading techniques are still used today.
If you have a FOREX trading system then Ganns trading methods are an ideal vehicle to seek big profits with low risk.
Ganns Method
Ganns method takes the emotion out of trading and like any successful FOREX trading system will liquidate losses quickly and try and hold the longer-term trends and milk them for profits.
Gann's method was tried and tested and many of his trades were publicly recorded and worked in ANY financial market.
1. He predicted improvements in the economy in 1921 and the huge Bull Run in stocks.
2. In 1928 he predicted the end of the Bull Market, a full year in advance of the 1929 crash. Not only this but he then bought stock in the Dow at the all time low that occurred in 1932.
3. In 1935, a newspaper verified 98 of his trades, in cotton, grain, and rubber.
The result?
83 were profits.
Why Was Gann's Unique?
Gann was a technical trader but introduced a unique slant to his method by calculating the interaction between price and time and its influence.
Gann believed that crucial price trend changes happened when price and time converged.
If price and time were not in synch, then time would always by the main determining factor over price. Time, was therefore the ultimate indicator for him as Gann once said:
All of nature was governed by time".
In the "Wall Street Stock Selector" Gann gave an insight into repetitive price patterns that would always occur and said:
"Just remember one thing, whatever has happened in the past in the stock market and Wall Street will happen again. Advances in bull markets will come in the future, and panics will come in the future, just as they have in the past. This is the working out of a natural law
Gann also had other unique concepts that he incorporated in his methods
He utilized such concepts as Gann angles as well as The Fibonacci Number Sequence which were revolutionary and are still used today.
Gann wrote extensively and produced vast volumes of work over his lifetime and all traders can learn from him.
Why Is Gann influential today?
Quite simply, as his methods are based on recurring price patterns they will never go out of date and savvy traders worldwide still use them to gain a trading edge.
FOREX markets are some of the best markets to trade and if you have a FOREX Trading system Ganns methods could help you in your quest for profits and give you the trading edge you desire.
If you have a FOREX trading system then Ganns trading methods are an ideal vehicle to seek big profits with low risk.
Ganns Method
Ganns method takes the emotion out of trading and like any successful FOREX trading system will liquidate losses quickly and try and hold the longer-term trends and milk them for profits.
Gann's method was tried and tested and many of his trades were publicly recorded and worked in ANY financial market.
1. He predicted improvements in the economy in 1921 and the huge Bull Run in stocks.
2. In 1928 he predicted the end of the Bull Market, a full year in advance of the 1929 crash. Not only this but he then bought stock in the Dow at the all time low that occurred in 1932.
3. In 1935, a newspaper verified 98 of his trades, in cotton, grain, and rubber.
The result?
83 were profits.
Why Was Gann's Unique?
Gann was a technical trader but introduced a unique slant to his method by calculating the interaction between price and time and its influence.
Gann believed that crucial price trend changes happened when price and time converged.
If price and time were not in synch, then time would always by the main determining factor over price. Time, was therefore the ultimate indicator for him as Gann once said:
All of nature was governed by time".
In the "Wall Street Stock Selector" Gann gave an insight into repetitive price patterns that would always occur and said:
"Just remember one thing, whatever has happened in the past in the stock market and Wall Street will happen again. Advances in bull markets will come in the future, and panics will come in the future, just as they have in the past. This is the working out of a natural law
Gann also had other unique concepts that he incorporated in his methods
He utilized such concepts as Gann angles as well as The Fibonacci Number Sequence which were revolutionary and are still used today.
Gann wrote extensively and produced vast volumes of work over his lifetime and all traders can learn from him.
Why Is Gann influential today?
Quite simply, as his methods are based on recurring price patterns they will never go out of date and savvy traders worldwide still use them to gain a trading edge.
FOREX markets are some of the best markets to trade and if you have a FOREX Trading system Ganns methods could help you in your quest for profits and give you the trading edge you desire.
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