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Tuesday, October 29, 2013

Blog Promotion - Earn $40 per Post!

I wanted to take a quick moment to let all you bloggers know about a very simple way to earn up to $40 per blog post. I think the promotion is rather simple and the requirements should easily be met by just about every serious blogger who is looking to earn some extra cash.

In order to take even more work out of your hands, you are given countless topics from which you can pick and choose which means the only task left for you is to work your magic as a blogger and write one blog post. Your blog has to be in good English and you need to write at least 1,500 words which means you really need to pick a topic which you can write about.

Here is the blog from where you can browse for a topic: PaxForex Blog.

There plenty of great topics covered and you can pick any one of those and write about. It should be a rather simple task for every blogger. On top of that you will get a chance to get your forex trading started with a funded account. 

You don't know how to trade?

No problem, just take advantage of PaxForex Trading Recommendations!

This means that your one post could end up making you an unlimited amount of money. It is not just the $40 which you could earn, but together with the PaxForex Trading Recommendations you could earn additional money every month.

You will get a funded forex account with up to $40 and leverage of 1:500 which means you will be able to trade a portfolio the size of $20,000. Just imagine if you will be able to make just 1% per month you could earn an additional $200 per month which means $2,400 per year with one great blog post. 

In case you have a more efficient way to earn for writing 1,500 words please leave a comment and let me know. I don't think it gets much better than this.

Get the details here: Forex Blog Post Promotion!

Don't wait any longer and start to earn some real money on a consistent base. It has never been easier to get started and funded. All you need to do in order to take the first step is write 1,500 words.

Wednesday, October 23, 2013

Forex Broker Reviews

Here is an overview of all forex brokers which have been reviewed so far by The Last Bear. Each review is conducted unbiased and no compensation is received by any forex broker. We write what some brokers may not want to read about their brokerage, but it does weed out the good from the bad. We had several forex brokers contact us and pointed out changes they have made which is why we conduct those reviews.

One broker in particular tried to spam our comments with different names and positive reviews and they have done the same after negative press across several forex forums. Interesting enough our best and worst reviewed forex broker so far both start with the letter P and end with forex; PaxForex has been our top choice with very tight spreads and deep liquidity while Profiforex has been the one who spammed across the web after negative reviews exploded about them.

Here is the complete list of all forex brokers which have been reviewed so far here at The Last Bear

Forex Broker
Minimum Deposit
Detailed Review
2 Claws Up
2 Claws Up 
2 Claws Up 
2 Claws Up 
2 Claws Up 
2 Claws Up 
2 Claws Up 
2 Claws Up
1 Claw Up/Down 
1 Claw Up/Down 
1 Claw Up/Down 
1 Claw Up/Down 
1 Claw Up/Down 
2 Claws Down
2 Claws Down 
2 Claws Down 
2 Claws Down
2 Claws Down 
2 Claws Down 
2 Claws Down 

We will continue to review forex brokers for your convenience and try to help fight scam brokers across the world. Please feel free to contribute your opinions and trading experiences.

Monday, October 21, 2013

US Debt out of Control

We discussed the US debt issue today during a round-table discussion and I think it is equally pathetic as humorous how the old brass of US politics runs around the world without shame claiming to be the world’s most powerful and prosperous country. I am not sure who is dumber; the old brass claiming that or the part of the general public who still believes it.

Look at the picture and see how the US debt has exploded under the current lack of leadership in the White House who decided to wipe his ass with the US constitution and laugh at everyone buying into the illusion. Please note that this only includes Dumbama’s first term which he defrauded US history with.

The second term may see two potential outcomes
  • US debt will eclipse $20 Trillion
  • US economy will collapse further
Either case is a bad outcome and trust by its foreign creditors almost wiped out. The US is on its way out to be the world’s reserve currency. It should have never became the reserve currency and as the US abandoned the gold standard forced its way on the rest of the world as it was at some point the most powerful country.

The chart shows that for over three decades the US was nowhere close to be powerful and prosperous and ran something equivalent to a Ponzi scheme with its creditors. Those who shake their heads in disbelieve right now picture the following scenario:
Your neighbor lives the most luxurious lifestyle in town. He borrows money from other neighbors every week and nothing he owns and spends is his own money. He borrows money from one neighbor and repays another one, the amounts borrowed increase with the trust as everyone was repaid so far, but his total debt continues to increase and so does his lifestyle.
Would you consider your neighbor smart, rich and powerful?

I hope you do get the point made here.

Look at the picture and ask yourself if your balance sheet would like that would you honestly applaud yourself and run around the world trying to force your approach onto others?

Think hard before you fall for the tremendous marketing machinery sponsored by the old brass who still holds on to an America which is long gone. There are plenty of ways to measure who is number one and the US only shows up as number one when it comes to total public debt.

Tuesday, October 15, 2013

Caution: Forex Demo Accounts

Having a small brake from trading is always a requirement in my opinion and no professional trader is glued to a dozen trading screens 24/5. We let the amateurs think that is how to trade while we know what it takes and how to get what we want. That holds true with just about every aspect of trading; us professionals do things the masses are terrified of which explains why the masses are always left holding the bag as we profit week in and week out.

One of the biggest and most compelling pieces of evidence are forex demo accounts. All newbies swear by it and who will read idiotic statements that it is a requirement as you learn how to trade. It is absolute non-sense. Professionals have never used a demo account and understood why it is nothing more than a newbie myth.

Check out this great infographic, courtesy of PaxForex

You are free to form your own opinion on this matter, just know that your popular point of view will get you where the rest as well as majority have ended up at; one or multiple blown accounts which led to frustration and total loss of capital which eventually forced an exit of trading altogether.

Do you want to do what is popular or do you want to learn how to profit?

Monday, October 14, 2013

Increase Trading Profits, Decrease Risk

As the US government shutdown as well as debt ceiling debate continues to play out without a resolution in sight, I am attending a small investor conference for one of our projects. I am being approached by a young associate who asked me a question which answer I think may benefit all new traders, regardless if you trade forex or any other asset class.

The young associate, an intelligent young woman in her mid-20’s, has started to trade in the forex market in her own and told me that is has worked out a strategy which she is comfortable with. She asked me the following question:

How can I increase my trading profits while I also decrease my risk exposure at the same time?

The answer to the question is rather simple, but she asked me if I could take an hour over lunch to explain to her how she could implement it. She offered to take me out. I usually don’t give lessons like that, but there is always an exception.

I will not go into detail how lunch went, but I will give a short overview of what we discussed as we lunched away. The food was fantastic, the ambient amazing and the company great. Overall it was an experience I would not mind to repeat at a different setting.

The answer to her question: Stagger your entries in a support or resistance zone.

What does this mean?

Most new traders place one single order as they enter a trade and as you may know out of experience you usually witness a move against your first entry. This strategy is for real traders who do not scalp; those who scalp will find this useless.

Let’s say you want to trade 0.50 lots and EURGBP is your currency pair you would like to take a short position in. Newbie traders who do not understand how to trade will place one single order of 0.50 lots and set their stop loss as well as take profit; often they are so terrified that they keep the stop loss so tight which means a normal price move will stop them out.

Here is how you should do it, which does not only increase your profits but at the same time reduces your risk exposure:
  • Identify the resistance zone; there is always a zone and not just one single number which mark support or resistance.
  • Let’s assume you identified a resistance zone which spreads 30 pips
  • Split up your orders in as many as you feel comfortable with, in this example we will use 3 orders
  • Enter your first order for 0.15 lots
  • Enter your second order for 0.15 lots
  • Enter your third order for 0.20 lots

As you see your total lot size remains at 0.50 and this should not be confused with a martingale strategy. Uninformed traders will tell you that the spread you will pay will eat away your profit which is not only moronic, but false.

For starters a spread of one or two pips should never eat your profits and you should not have a bigger spread. In case you do you may want to consider switching to a good forex broker who offers you very tight spread. As I am writing this short post the spread for EURGBP over at PaxForex is 1.2 pips.

Let’s assume you plan to exit this trade for a profit of 75 pips, the spread on staggered entries will not eat away your profits as you actually earn higher profits with this approach in comparison to one single order of 0.50 lots.

Thursday, October 10, 2013

Iceland Runs out of Cash

As the news are filled with the US government shutdown as well as the debt ceiling debate, I pointed out to one of my colleagues over lunch today that the US is not the only worthless country we are dealing with. We were joking around about the embarrassment the leaderless White House is forcing upon the US and how pathetic the pending short-term solution is.

One of my colleagues asked me which country I am talking about as the US is obviously front and center being the second biggest economy in the world and fast destabilizing. A little hint was all that was necessary before the somewhat forgotten problems out of Iceland have resurfaced.

It is a rather small and insignificant island nation and the impact on the forex market are almost non-existent from a direct approach. Their currency, the Kronur, is thinly traded and most don’t pay too much attention to it. Despite its tiny size, Iceland used to be the fifth wealthiest economy before it collapsed.

It is only small example of what the US is facing. Iceland grew wealthy thanks to its rapidly growing financial system which heavily relied on debt to finance its plans. At some point the banks serviced a balance sheet which was ten times the size of Iceland’s GDP.

The three main banks which defaulted in Iceland where: Kaupthing Bank, Glitnir Bank and Landsbanki Islands which back in 2008 defaulted on $85 billion worth of debt. The GDP of Iceland is around $14 billion which shows the immense size of the banking system Iceland nursed during its heydays.

The central bank in Iceland put capital control measures in place in order to protect a flight of capital out of Iceland which would have ripped the island nation into pieces. The move was unpopular but required in order to try to protect the country while allowing a gradual servicing of debt payments.

Prime Minister Gunnlaugsson wants foreign creditors to accept write-downs as soon as capital control measures are lifted which could be a hard sell, but he may make it a requirement before moving forward. Foreign creditors hold roughly $7.2 billion worth of debt which they can’t access due to the capital controls.

The reason why I pointed out that Iceland is back on page 14 is that a new report shows that the private sector is running out of cash to service its debt. It is estimated that non-government non-Kronur debt totals $5.8 billion through 2018, according to the central bank in Iceland. A shortfall in cash of 20% of GDP over the next five years is expected as cash surpluses are estimated to come in at less than 50% of the outstanding debt.

Wednesday, October 9, 2013

US Debt Ceiling Debate

I am leaving the office extremely late today as we had endless discussions on how to position our trading accounts as the debt debacle in the US continues to remain unresolved and the US government remains shut down. The embarrassment continues and the US loses more and more credibility as foreign creditors slowly apply pressure on the US.

As if the government shut-down was not enough of a disaster there is another potentially bigger issues which has not been resolved since, well let’s say since never. Politicians in the US have kicked the can down the road each chance they had and never attempted to seriously offer a solution to the problem.

What am I talking about here?

The US debt ceiling; as you all know the US is broke and needs to beg the world for money multiple times every month in order to finance this illusion of power. The biggest foreign creditors to the US are well aware that the once mighty empire has more holes than a Swiss cheese and is financially worse off than some banana republics.

You may wonder why emerging superpowers continue to give the US money and the answer is simple; the world is in a transition and the new twin-super powers and their three closest allies are preparing for the power transition and that does not happen overnight or within a few short years.

The US has a debt ceiling which is absolutely worthless as it does not obey it and when push comes to shove they simply raise the debt ceiling in order to avoid default until the new ceiling is reached. This is partially to blame for the dire financial situation the US is in. The US Treasury gave Congress a deadline at which point the US will default on its debt unless the ceiling will be raised.

D-Day is October 17th for a US debt default.

As always, both parties will agree on a temporary increase in the debt ceiling which will further allow the US to borrow more money and dig a deeper hole which will be followed by more discussions which will lead to absolutely nothing.

The US is like a drug addict and the only cure is and will be once the supply is cut off. Again, this will not happen overnight and we will see a gradual reduction in foreign lending to the credit unworthy US until the power transition is complete and the US will get to taste their own medicine which they slapped on all countries which were not liked.

Currently there are talks in Washington to suspend the debt ceiling altogether until the end of 2014. This would allow the socialists to add a few ore trillion dollars of debt to the almost $17 trillion and soon we will eclipse $20 trillion and maybe an acceleration of foreign creditors who will reduce their exposure to the US.

Tuesday, October 8, 2013

US Foreign Creditors Uneasy

After getting off the phone with our contacts close the source of some vital information I am headed back to the trading floor in order to order some trades which we need to get on our books as well as off our books. Trading the USD has been a bit challenging with the idiotic US government shutdown which thanks to the lack of leadership has occurred for the first time in 17 years; sad enough that it is not the first time ever.

The lack of leadership in the White House and from the socialists in power led to this lock-down as at least Tea Party Republicans had enough of uncontrolled spending on moronic programs which have weakened the US further. On top of that the red pest which has infested the White House and over half of the Senate wants to continue to seek ways to raise taxes on all Americans.

While it has failed to legally steal more from the wealthy, the Dumbama administration did succeed in raising taxes on the middle class by about 2% while wasting time with his Dumbamacare health care reform which opposed by almost 60% of the population.

The US has been essentially bankrupt by every accounting standard and if the US government would have been a middle class citizen in the US every single bank would have laughed at their request for additional lines of credit. Unfortunately plenty of foreign governments where tricked into the American illusion.

With the ongoing US government shutdown, top foreign creditors warn the US on a debt default which could become reality on October 17th if the debt limit won’t be raised. Given the ongoing mismanagement of the US, sooner or later a catastrophic event needs to occur in order to force the US to live within its means which means severe adjustments.

Unlike popular opinion, global financial markets will not derail as a result of it. There will be necessary turbulence in order to get the global financial system back to reality which is roughly 90% below where it is now. A US debt default plus the fallout from it is a requirement at this point as it will force necessary change.

Forex traders should be aware that countries like Brazil, Russia, India, China, South Africa as well as Japan and the United Kingdom will shift their asset allocations as the USD is by no means a reserve currency. The USD is worthless and creditors of the US which is are the sole reason the US was able to create this illusion of power are fed up with it.

It may not happen this month, but sooner rather than later creditors will stop throwing their good money after a terrible country from an investment stand point. While China and Japan have increased pressures on the US to resolve their political impasse, it is no secret that all creditors are preparing for fallout from the collapse of the US.

Of course there will be a ripple effect from a US default and yes it will be larger than what happened after Lehman Brothers collapsed, but it is required in order to weed the bad influences out of the global financial system so that we can move forward. Prepare for some nice volatility ahead.

Monday, October 7, 2013

PaxForex Trading Recommendations October 2013

PaxForex Trading Recommendations are published every day over at PaxForex and I want to bring them right to you as well. Follow them if you want to get on board and earn over 1,000 pips every month. Feel free to give your feedback and share your success stories here.

Monday, September 30th

Tuesday, October 1st

Wednesday, October 2nd

Thursday, October 3rd

Monday, October 7th

Tuesday, October 8th

AUDCAD Rising Wedge

Wednesday, October 9th

CADCHF Falling Wedge

Thursday, October 10th

USDCAD Reversal

Monday, October 14th

AUDJPY Second Put

Tuesday, October 15th

NZDUSD Second Put

Wednesday, October 16th

EURCHF at Resistance

Thursday, October 17th

EURNZD at Support

Monday, October 21st

GBPCHF Second Put

Tuesday, October 22nd

EURCAD Double Top

Wednesday, October 23rd

EURUSD Rising Wedge

Thursday, October 24th

GBPUSD Second Put

Monday, October 28th

EURCAD Second Put

Tuesday, October 29th

USDCAD at Resistance

Wednesday, October 30th

EURGBP Second Put

Thursday, October 31st

EURNZD Reversal

Total Profits: 1,825 Pips (All-Time Record)

Wednesday, October 2, 2013

US Government Shut-Down

After 17 years the US government is once again shut-down for lack of funding. My colleagues and I are sitting in the conference room and are rather amused by the fact that the whole world witnesses the pathetic lack of leadership in the White House. Events like this make me happy and further show that our move to pull out most of our investments out of the US was indeed the right one.

The moron who is allowed to run the White House has ignored the economy and pushed his socialist agenda as far as possible and now, thanks to the Tea Party, the debt limit has not been raised; at least not for now. The clown who calls himself President pushed his Dumbamacare, an idiotic health care reform which is opposed by 57% of the population, and now arrived at a huge embarrassment.

I am glad that the Tea Party has given him a we-don’t-care attitude and hopefully forces some positive changes. This shut-down will likely only be temporary, but we are all allowed to hope for a prolonged shut-down which will teach the socialists and their supporters a lesson.

The red pest which has invaded the US wants to increase taxes and borrow even more money from foreign governments in order to keep the illusion alive that the US is a strong and powerful country. The sad truth is that the US has become nothing more than a little bitch to rich foreign governments such as China and Russia and is not really allowed to do anything without their permission.

The US runs around the world screaming freedom, but has sold itself already and does not enjoy any freedom. It is time that the public awakens from their fairy tale and face reality. The US is in similar shape than Greece is with the difference that nobody cares to assist the US thanks to their idiotic foreign policy.

We will not get the September NFP report which really does not matter. The report will point to a weak labor market and low quality job creation which will not benefit the economy. The housing market may be impacted a lot more than other parts of the financial system and forex traders should trade the USD with caution as we may witness violent swings which will also present great opportunities.

The worthless USD is a bit oversold and we may experience a minor counter-trend move in order to lose extreme conditions before the USD bashing will continue. Expect the GBPUSD as well as the EURUSD to finish 2013 at the highs for the year.

We will now resume our conference, but the government shut-down gave us reason enough to be amused about misstep after misstep out of the crumbling and burning US. That is what you get when you force top talent out of the country and execute your socialist agenda.