Overbought and Oversold are the two most powerful concepts in trading the Forex. Understanding that a market that is over bought will fall and that an oversold market has no choice but to rise takes a lot of confusion away from trading. So having simple to use indicators that tell when a market is trading in these extremes becomes vitally important.

Enter The Stochastic

Invented by George Lane the stochastic is based on the relationships of where a market closes in relationship to their highs and lows. George noticed that when a falling market is about to turn its closing prices tend to be near their daily lows. And of course the opposite would be true in a booming market that is about to turn south.

Based on this Mr. Lane built a simple indicator called a stochastic.

The Insides

Obviously the math behind the stochastic indicator is lengthy but lucky for you and I most charting services provide the indicator as a free service with their charts. Peeking inside the stochastic you will noticed that it has two lines that are smoothly rising and dropping and crossing each other in their paths. The two lines are represented by the titles %K and %D. The lines represent this relationship between the closing price and the daily high and low. The reason there are two lines is due to sensitivity – the %K is set up to be more sensitive to the market fluctuations than the %D and it is also a moving average of %K which is why it lags a bit behind.

These lines are plotted on a scale of 1% to 100% and it is in this scale that the trade signals are made.

Trade Signals

A good Forex trading signal is when the stochastic enters the upper 80% region, or the lower 20% region. This is the range where the markets are becoming over bought or over sold respectively. And the official “trigger pull” moment comes when the %K and %D cross each other inside these regions.

The beauty of this signal is that it is simple and it conforms to the principle of overbought and oversold. It is not predictive but rather helps to clear up the crazy price movements of the Forex markets.

The American Dream is different for every person. In general it’s something similar to – Money, A Beautiful Home, and Perfect Relationships. Today, our topic is Money. We will discuss getting it, and what do with it in order to increase your savings and eventual wealth.

In order to increase your savings you must first have an income. My first suggestion is to do something you enjoy. And, at the very least, do what is legally expedient while seeking something you will enjoy.

Second, set aside at least 10 percent of what you earn and put it in a savings account; preferably one not connected by overdraft to your checking account. Banks push overdraft protection and this has its merits. However, the idea is to organize and keep track of your money so that each dollar-to-the-penny is accounted for. This way – You are your own overdraft protection.

Your 10 percent savings is key. No, it’s crucial. This is the money you will eventually use to invest and increase your wealth. Without this, you will most likely continue to survive pay check to pay check rather than live in the comfort of wealth as I believe we are all intended to do.

After you save 10 percent of your income, that leaves you 90 percent to live on, right? Not quite. Do you have any debt? If you live in America, and haven’t already developed the habit of savings and wealth building, you most likely do. So, your next step is to get rid of your unproductive debt by taking an addition 10 percent from your income for debt relief. This leaves you with 80 percent of your earned income. Now what?

Heard the expression, “Give and it shall be given unto you?” How about “Charity begins at Home.” They are the same. Our home is Earth and our family, other human beings. Therefore, we are responsible for one another just as the universe is responsible for securing us via Sun, Rain, Air, etc. This simply means that our existence is reciprocal and that what we give, we get back in one way or another. It’s really that simple.

So, from that 80 percent of your remaining income, if you want to increase your savings, and wealth – give 10 percent of your income to someone less fortunate than yourself (whether to an organized entity or someone you know or come across who could use the funds). How you do so is entirely up to you. Just try it. You will see. It’s an awesome principle that works 100 percent of the time.

Recapping – You’ve developed a consistent income; Paid yourself first with 10 percent for your savings account; Put aside and/or paid 10 percent toward your debt relief; and Given 10 percent to charity. Now you have 70 percent of your earnings for daily living expenses. This is more than possible to live on. Here are some tips to do so.

How To Live on 70 Percent of You Income…

These tips will get you off to a good start.

1. Take a real inventory of what you spend your money on. It will amaze you. Make a budget. If you find that you simply must have more income, intend it and get a better paying gig.

2. Eat at home – Cook

3. Make coffee at home (Carry your homemade coffee to work in your Starbucks container if it makes you feel better)

4. Entertain at home rather than splurge out each weekend.

5. Buy in bulk at places like Costco, Sam’s Club, Smart & Final, etc.

The process of increasing your savings account seems restricting at first. It is. Developing a new habit of finance is developing a new way of thinking about money and wealth. But remember, you are doing this to eventually amass wealth. Take the time, work the process and begin to change your financial status forever.

Facebook is an internet marketer’s dream, if used properly. This article focuses on financial advisers who may be starting out or who want to expand their online marketing strategies.

If you’re wondering how to become a financial adviser, the info at the end of this article will help you evaluate your business options.

Note: I’ll assume that you already have a free Facebook account. If you’ve been living under a rock somewhere, and don’t have a Facebook account yet, head on over after reading this article and set up your account. It’s free and it’s a no-brainer for any business owner. I’ll also assume that you’ll begin searching for your existing client base on Facebook, and that you’re actively inviting them to be your friends.

Another note: Make sure you check with compliance about your company’s rules for online client interaction. If your compliance department is anything like mind was, they’ve got a book on it.

Let’s get started:

Strategy #1: Start a Facebook group. The advantage of starting a group is credibility. Set up a group that’s relevant to the area of being a financial adviser, that would appeal to clients. Make it a Getting Wealthy Club or an Investing for Great Returns Club.

When you set up the group, clearly state your ‘credo’, which is a statement of purpose for what this group is all about.

Once you start the group, invite your clients to join the group.

Then, visit the group daily, posting your comments, ideas and/or wealth building strategies. You’ll gain credibility and your clients will gain knowledge and a closer connection with you…which means more money. Financial planning success is built on relationships.

Strategy #2: Comment daily on your own feed with your meaningful thoughts. That means to go daily to your own Facebook page and post a meaningful thought for the day-one that will appeal to your clients.

As a financial adviser, you want to stay top of mind to your clients. This is a great way to interact with them, without selling something or seeming pushy.

Important Note: Do not post what cereal you’re having for breakfast or any of the other minutiae of life you’ll find on Facebook. That’s not effective marketing. You want to make your posts meaningful to your clients.

Strategy #3: