Tuesday, November 6, 2012

2012 Trends - News and Textbook Formats for the Future

There are quite a few new trends in the news and news media industry in 2012, we see new pay-walls, and custom tailored web news for those with eReaders, Tablet Computers, and accessing their news on their mobile tech devices such as; Android, iPhone, or some other smart phone model. It seems also that the eBook and eReader are also evolving, allowing for more multi-media version and new models of eReaders to allow for eTextBooks too. Okay so let's talk about all this for a moment, as I have a few forward looking thoughts on all this new technology.
The weekend Wall Street Journal Nick named; "WSJ Weekend Edition" seems to be taking a note from The Popular Mechanics Magazine format with its; "Ideas Market" section which appears on page 3 of each week's weekend edition. Not surprisingly, also Bloomberg is moving towards this type of fast-paced format for their tech topics. Why you ask? Because it works, it's been proven, and folks like to get their information with quick bites of information and pictures. They can read it fast, and they very much enjoy that format.
Okay so, if humans like the uptake of information in this way, then why don't we create the new eTextbooks in a similar format with multimedia? Well, it just so happens that it appears that Apple is attempting to do just that, and I believe that's a good thing, rather than giving students a large textbook which reads like an encyclopedia. In that case they don't really need to memorize the information, they just need the textbook for later reference, do you see my point?
Further, there is some information which we need to know, and some which we don't, having it all spread out nicely with quick little important pieces of information, which is about all a human being can really remember anyway, is probably the proper way to do it for informational uptake and rote memorization. The other day, I was discussing all this with a retired educational psychologist on the different ways that people learn. Custom tailoring information for faster learning, imprinting, and individual preference sure makes a lot more sense than what we've been doing.
Of course, I suppose that's nothing new really, just new technology enabling us to get there faster and allow us to make it happen. Ronald G. Corwin in his book "Education in Crisis" written in 1974 stated in Chapter I - Bureaucracy in Education notes; "Each person tends to interpret his experiences from the unique vantage point of his own background" and goes on to say that they will learn in different ways and choose different styles of the information they choose to commit to memory. Certainly we all agree on that.
Thus, it only makes sense to deliver the information is such a format which suits the human mind and lay out all that information, and apparently in 2012 the personal tech vendors, eBook purveyors, and even the old media is quickly re-learning these genetic realities of human nature. I'd say "bravo!" it's about time. Please consider all this and think on it.

Saturday, November 3, 2012

Forex Trading Education

What Are Fundamental Economic Indicators?
Economic indicators are typically important news announcements that involve sensitive economic data of a country.
How Do Economic Indicators Affect Trading Decisions?
Consider this example:
It's Monday morning and the U.S. Dollar had been spiraling down in the past two weeks. At this point, it's pretty safe to assume that there are many traders holding on to large USD short positions.
However, there is an important economic announcement scheduled to be broadcasted on Friday. Industry experts are estimating this coming announcement to reflect a positive outlook for the U.S. economy, and most traders will thus be expecting a short-term USD rally this Friday. As the week progresses, the traders will gradually be exiting their short positions to lock in their profits - they wouldn't want the upcoming positive news announcement to eat away their gains!
In this example, you can see that economic indicators affect market prices on two levels:
  1. Directly: When positive USD-related news is announced, the dollar rallies
  2. Indirectly: Traders who are expecting the news to go against their open positions will slowly exit their trades, causing the USD to rise even before the announcement

How Should You Trade With Economic Indicators?This is actually a trick question. Generally, one should avoid trading during the times of fundamental news announcements. This is because the market volatility during these periods is extraordinarily large, and the combination of this plus a high chance of slippage will almost guarantee that you lose money.
News trading is advised only for the advanced traders, and beginner traders should stay well clear of this territory.