Forex world: September 2009

Sunday, September 6, 2009

Online Trading Swing Trading, Day Trading, Scalping

During the last decade, online trading accounts has risen to a point we wonder if the full service broker should be placed on the endangered list as a protected species. Once someone opens an online brokerage account, they must decide what kind of operations to follow. For the sake of this article, we describe three ways in the last decade, online brokerage accounts have grown to the extent that trade to the benefit of persons wishing to become active traders. Swing Trading Swing trading requires the least amount of time at the computer and is usually the best way for people just starting out in online commerce. Swing trading is not a long term investment, but not a day trade with the retention time of the traffic that formed elsewhere in a few days to a few weeks. For example, if a person looked at a chart of IBM, and saw it was in an uptrend and felt that the stock is maintained in the uptrend in the coming weeks, before coming to the resistance. They could buy shares of IBM in your brokerage account online and keep the shares in the coming weeks and sell at a profit once the population reached the point of resistance. The shorter benefits can also be done with swing trading by buying stocks and holding only two or three days. In this case, people should have the momentum and volatility to move inventory in this time frame. Swing trading is a favorite of options traders. Options can be traded on day a very volatile population, but is not recommended because the options that require further progress in the underlying stock option to be profitable. Swing Trading naturally lends itself to the negotiation of options. Day Trading Day trading is self explanatory. Day trades are trades that are opened and closed in the same trading day. In order to day trade to be profitable, the target population should have the momentum and volatility that have allowed enough movement during the session to exit at a profit before the market closes. Day trading requires discipline and a proven trading system, with no space for the thrill of the operators. To succeed as a trader day requires time and effort, sometimes with years of experience before achieving success on a daily basis. Day trading also requires dedicated software real-time business in the form of graphs and other trade-related indicators. The most important thing for the day trader is to implement a trading system that is proven by the merchant of the day with a time of trial and error until a system is in place that allows the operator to be profitable. Can not be emphasized enough that a trading system is vital to the success of an operator. Scared money and emotion have no place in an environment of daily transactions. Scared money and emotion have done more to deplete and destroy more trading accounts than any other factor. Speculation Speculation is a form of day trading that reduces the retention time of a few hours to a few minutes. When a trader places a scalp trade is with the intention of buying a stock or futures contract and selling everything in minutes. Scalp trading is only for experienced traders and is not recommended for anyone who has not spent hours of negotiation and different test systems. Scalp trading is not designed to gain huge profits in a dealer trade, but to win the small trader profits many times during the session. Some futures traders can place operations of the scalp to 20 or more times during a trading session. The idea is to have more winning trades to losing trades at the end of the day. Scalp trading is an experience of knocking on the door and is only for the most disciplined of traders. Trading can be fun and profitable if you're willing to take the time and educate themselves on different time frames. Swing trading is by far the easiest and least expensive way for someone new venture into the commercial arena. The time devoted to learning to read charts and other technical analysis is the most important to master and profitable as an online merchant.

Be Familiar On Day Trading Basic

During the session, at any time the trader always knows best action BID or ASK price. A person wishing to trade currencies not need a lot of money to invest. It can operate from anywhere in the world with an Internet connection, as many financial bookmakers now have online platforms that address. Some facts you should know to Day Trading: 1. The day's trading signals are the signals obtained when the stock bounced off support levels or sometimes even off resistance, if necessary. 2. In the operations of the day, you win many more transactions than anyone could just trade normally. 3. One of the greatest enemies of a trading system are the transaction costs. 4. The longer the stock stays at a certain level, the better the day trading signal of support. 5. Day trading is a very demanding and costly. Some benefits of the trading day: 1. Secondly, day trading can lower speculation that the employer can not see a lot of variation in the values over a period of one day. 2. First, is a safer way for people who do not have a lot of expertise in securities transactions, therefore, can easily track their stocks during the day and sell them as soon as they see an increase in the value . 3. One of the great advantages of Forex Trading is that you can buy currency when it was devalued, making a profit when it gains ground. 4. Awareness Day on equity trading at peaks allows an operator to maximize market performance. Some Tips for Day Trading: 1. If you invest your money in transactions a day, make sure you do not put all their hard-earned savings into one, as this could be very dangerous for you. 2. Essential fundamentals trading day is determining which of these systems is best suited for the beginner investor. 3. Collect trading day are the best offerings of shares that are available for daily transactions. 4. The benefits and risks must be weighed carefully, and the decision taken in an educated knowledge of transactions daily, and only by taking risks. 5. It is always best to start with a small position size in day trading, until you get the hang of the system. Forex Trading; Currency trading is the final liquid market, often with a volume of 50 to 100 times the shares trade on the NYSE, and due to the nature of the currencies and the multiple factors controlling its value No one has a fundamental advantage or market penetration. There are many forex trading companies that can be trained to day trade, so their transactions are not limited to gambling. Day trading, despite differences in time zones around the world, is also popular because the forex market is open 24 hours a day. Trading Platforms: Recognizing the trading software is an easy task, since the basic requirement is a data provider that will help you analyze the market before you start trading online. Commercial software is not only important but necessary to survive in today's competitive marketplace. Some commercial media: 1. While there are many days that make traders trade only with the team, others negotiated by telephone and mobile phones. 2. With the advent of the Internet, anyone can benefit from Forex Trading. Day traders should be: 1. Day traders more special with the purchase and no sale of the baseline. 2. A person is considered an operator when you can get four or more trades a day in a period of five days of business and commerce has not met two days calls in 90 days. 3. In daily operations, the merchant does not have reservations until the next day, but get rid of him facing the end of the day.

Forex Broker- From Indonesia, Singapore, Malayasia, Australia- We Show You How To Find The Best

Perfect Forex Broker No matter if you live in Australia, Indonesia, Singapore, Malayasia, Thailiand, United Kingdom, United States there are some forex brokers to use. So how quickly can establish that Forex broker is best? This article very likely to attract more beginners FOREX experienced FOREX traders. Why you ask? The answer is quite simple - beginners of research for currency traders who are not veterans. novices base their search on such standards: avaiability of demo accounts, the availability of mini accounts; low PIP spreads, the difference in levels of leverage. informed investors, by contrast, are always looking stableness. There is nothing more disheartening than having to change agents and over again. And stableness comes from other important components, such as the reputation of the brokerage, the country in which it is based and regulations of that country FOREX and perhaps other characteristics, such as types of trading platforms, charts, etc. Regardless of trade skill level, game of the powerful Forex broker has never been easier. Ads currency brokers abound on the net these days and is responsible for half of the hunting process. The rest of the search can be considered the nitty gritty part of the process. This is where we consider the Forex broker based on its standards. And if you're just starting operations in FOREX, what rules of your being? The answer again is very simple - look at the rules of novices mentioned above. And to help make your decision is right, add in the rules that experienced traders base their searches on (also mentioned above). However, a rule of thumb for beginners should be constantly looking for a broker that offers demo accounts. Needless to say that beginners should take full advantage of demo accounts. Most brokers will allow you to open a demo account with them for free and without obligation. Demo accounts are the only way to get a good feel of currency trading. There are brokers that provide free graphics. Free charts are a very good complement to the demo account. The combination of these two services to help newcomers form a good basis for FOREX trading habits that will continue to evolve as they gain more experience and more on the road. It is important for beginners to realize that no one person or one bank that controls all the operations occurring in the FOREX market. To be so many major currencies, transactions can come from anywhere in the world. Therefore, having a knowledge broker and trusted to guide you through the process should help prevent the adoption of measures in the wrong way. There is nothing more educational than having someone explain the reason behind every action. Finding a Forex broker is definitely in your best interest if you are just beginning. Finding a good is their only advantage and could easily be the difference between profitable trade and lose all their money. Participating in the foreign exchange market is easy. Getting good advice can be more complicated. If you have done due diligence in finding the right Forex broker, you will feel much more confident about the long-term success of your forex trading activities. - In search of a good Forex broker has never been easier. There are many currency brokers with particularly deals waiting for you. Watch this video about how to find the powerful Forex broker now to get started. Help you find many FOREX brokers and private offerings that can help you on your way to make money trading Forex.

Forex MegaDroid - Multi-Market Condition Top Performer Autopilot Robot + Free Bonus worth more than usd100

MegaDroid Forex is the most talked about Forex robot in recent years and we can all understand why ... The most anticipated Forex robot in the last 21 years is finally LIVE ... A true multi-robot market trends, not trends, volatile, nonvolatile ... Forex MegaDroid nails a rate of 95.82% accuracy (a total of 100 shops, 95 profitable!). Old technology based on the robots are a thing of the past ... no more than "market condition" robots ... produce a large profit in a market, give everything away when the conduct of market changes. The robot has been a MegaDroid Forex 300.20% NET proflt the last 3 months of 2009. That is 100% (double bill) performance every month! What benefits did before that? Check it out my link below, and get free currency murderer, unhurried London forex, free Gold Miner, free TrendForexSignal and many more worth over U.S. $ 100. (Http: / / www.savefile.com/files/2081753) P.S. Forex MegaDroid is released at a special price, which happens after the launch by at least 50%. The options are simple, get the number MegaDroid Forex market performance of robots currently the special launch price or higher at a higher price. It's so easy to make money, in fact, if you act now to make money in the next hour! You will be living the dream of ATMs ... free time to do what they want ... lots of money to buy what they want ... vacation when you want and not when you can ... Absolutely bring benefits to you. Perfect!

Forex Signal Provider? Which One?

So you decided to make full time leaving from foreign exchange market? Or you are going to supplement your income from here? You have set up yourself with proper broker available. I believe you spent hundred of hours in front of PC trying to put together all maths and physics involving currency market. Now you watching business news in the morning paper and following CNBC channel to be on top with the latest information from exchange market. You trading your demo account trying to figure out how to make it all work? So? Does it? No? Face the fact that in currency market all is possible and there is no golden rule to follow. There are so many aspects to consider that you will need at least another head to set this puzzle together. But do not worry there is a hope that can make it work. Signal solutions for forex trading. People who traded forex for a long time and developed their own systems to enter and exit with profit strategies. They will share this knowledge with you for varieties of prices from usd49 to usd499 a month for those precious information. Problem is which one will suit you best. Are they scams? How do I know? For medium advanced forex trader is almost impossible to choose proper forex signal system, which is not a scam, or at least not profitable. There is bulk of forex signals providers out there. They all offer their signal solution to trade currency with success. Advice is that you will have to establish what type of trader are you? Do you want to trade quickly or maybe over the days or weeks? What losses can you manage and how much money you want to invest. As long as you to know that it is a time to pick up signal trade provider. Few things worth researching are: performance, service offered and rewievs of the signal. Search on another forum for users of the product you are interested in and ask for comment. Every profitable system should be up on collective2 with real track performance. Look for service offered. You will quickly find out that only few offer free trail-option to try signals before you pay. Demand performance evidence. But while doing all that hard work choosing your Automat forex signal system remember that you will have to totally follow it without exceptions to make most out of it. Any even small innovation may have dramatic results in your own gains. Remember that your future profits will depend on your signal provider so calculate carefully and make smart decisions. So I decided to make full time leaving from forex market? Or that will supplement your income from here? You've established good runner available. I believe that hundreds of hours spent in front of PC trying to put together all the math and physics involving currency market. Now watching the news of the morning paper and after CNBC channel to be at the top with the latest information from exchange market. That trade in your demo account trying to figure out how to make everything work? And? Or did I? No? Facing the fact that the currency market, everything is possible and there is no golden rule to follow. There are many aspects to bear in mind that you need at least another head to set up this puzzle. But do not worry, there is a hope that can make it work. Signal solutions for the trade. People who trade currencies for a long time and have developed their own systems to enter and exit with profit strategies. They share this knowledge with you to the variety of prices usd49 to usd499 a month for those precious information. It is a problem that will suit you best. Are they scams? How do I know? Through advanced currency trader is almost impossible to choose the correct signal to the foreign exchange system, which is not a scam, or at least unprofitable. There are many signal providers out there. They offer their solution to the signal currency trading success. Council is that you must establish what kind of trader are you? Want to trade quickly or maybe over the days or weeks? What losses can be handled and the amount of money to invest. While knowing that it is time to pick up a signal trade provider. Few things worth researching are: performance, service and rewievs of the signal. Search on another forum for users of the product that interests you and ask for comment. Each system should be profitable in collective2 the real track performance. Look for the service. You will quickly find that only few offer free-path option to treat the signs before you pay. The demand for performance testing. But while doing everything the hard work of your choice automatically forex signal system remember that you will have to keep completely without exceptions to the most out of it. Any innovation, even small can have dramatic results in their own profits. Remember that your future will depend on the benefits of your signal provider so calculate carefully and make smart decisions.

Successful Forex Trading: Forex Hates Procrastinators

What have you given today? Something important to do that did not end doing? Well I am sorry to say this, but not much forex as you, who does not actually come out and say this, but they are definatley eating all their money. Why lazy flounder in the currency market? 1. They get out of a very long corridor, and then often make a bad choice. 2. Do not do any research or participate in education and thus ending the game. 3. The disorder of blogs and forums with information about their incessant screams Forex is a scam and nobody gives them $ 20, because they are good for him. 4. They are often emotional about the trade and is too excited after a good trade or try to take revenge on the market after a bad loss. Does this seem a successful traders think of you? Of course not. Are you guilty of any of these things? If you get it sorted as soon as possible, or not my cause, but on their own. It is not my money they are out of play. "But I thought foreign investment is not gambling?" Thank you! I do not play in forex, i spend, i know that many other traders to invest well. What is the difference? My friend's education, education. We know what we are doing, and make decisions about where we want our money, a foreign player wakes in the morning and only then, and decides that it will eliminate a little more money. No research, do not even know what that looks like a chart, just go with uneducated intuitions. But let's stop talking about change before the players have a stroke, what about successful traders? 1. These agents for research, and then choose one and stick to it until the broker gives reason not to. 2. They are always learning. What is a better indicator to use? What have I done wrong in the last week? This is the kind of thing that aggravates the trade sword so strong that it could reduce the space and time. 3. Do not post often, you can not always put on a forum or blog. For them it is about learning to speak foreign currency and prefer to listen. Humble, no? 4. Keep their cool. They know that a victory may become a loss, and vice versa in the next 5 minutes. They have the experience and have already established their offices to accommodate a shift in fortune. They are in control. Thus the majority. Therefore, the main point of this whole text is to realize that if you can not even take a shower when you wake up in the morning, how are you ever going to succeed in something as demanding, but equally as rewarding as forex ? You do not hate you is because forex.

Course on Forex Trading

Course on Forex Trading The term used to describe the trading of the currencies of the various countries of the world is called foreign exchange, forex or just FX. More than 1.5 trillion USD worth trade activities are conducted in the worlds largest forex market. The forex trade is not conducted by a central exchange unlike stock trading. Telephone or electronic networks are used to connect the two counterparts all over the world to make a trade. Moreover the forex market offers several advantages over equities trading. Moneymaking or wealth creation is the main goal behind any trade. The opportunities in FX are boundless and it far exceeds the slim margins and picks of other markets like equity or share trading. Moreover the risk involved is also much less and to top it all forex trading can be conducted 24 hours a day. There are always buyers and sellers available, who make this trade more liquid and stable among all others. The banks too provide liquidity to investors, companies and institutions. Just like any other financial instrument forex trading also involves a deep analysis about the fundamental and technical truths associated with the trade. Keeping in mind the general interest of traders looking forward to invest in forex, many forex trading courses are available. The main aim of this Forex Trading Course is to impart the necessary knowledge about the fundamental procedures and tips on better and professional trading policies. Forex trading courses offer valuable information related to the impacts on global currencies, market risks, market trends etc.. it not only benefits the new trader who wants to set foot on alien grounds, but also the existing investors who wish to brush up their tricks of the trade. All the aspects of the forex trading, using the latest software's and tools are what the Forex Trading course material is comprised of. Step by step guidance on trade environments, technical analysis, risk management, trading rules, global markets, economic and market indication etc are provided along with the hands on practical guidance from the experienced tutors from all around the globe. Many factors are to be considered before you make a decision to do Forex trading course. 'Knowledge is power' for all our daily diplomatic living. Knowledge on what we do and how we do, especially trading will not only enhance our business dealings but will also allow us to differentiate and track down market conditions. Managing our finance wisely will save us the fear and anxiety about our meek and unpredictable future. Forex trading courses often outline these basic business strategies in their course material. Forex trading courses are available as online courses and also through printed books. Free tutorials and financial guidance is also provided by many web sites. Choosing a professional Forex Trading Course will provide you with details on • The best time to trade specific currencies like Euro • How to anticipate movements and trends in the global market • Which pairs of currency to trade • Best time to enter the forex market • Market conditions and tips about efficient trading from experts • Technical indicators Overall a forex trading course should be a completecurrency trading solution for all the queries regarding forex and its effective options trading. Course on Forex Trading The term used to describe the trading of currencies from different countries of the world is called foreign exchange, currency or FX. More than 1.5 trillion USD worth trade activities are conducted in the worlds largest foreign exchange market. Foreign trade is conducted by an exchange of shares, unlike trading. Telephone or electronic networks are used to connect the two counterparts across the world to make a trade. In addition, the forex market offers several advantages over trading activities. Moneymaking or creation of wealth is the main goal behind any trade. Opportunities in FX are boundless and far exceeds it picks slim margins and other capital markets, such as or part of trading. In addition, the risk involved is also much less and to top it all forex trading can be conducted 24 hours a day. There are always buyers and sellers are available that make this trade more liquid and stable among all the others. The banks too provide liquidity for investors, companies and institutions. Like any other financial instrument involving currency trading is also a profound analysis of technical and fundamental truths about trade. Given the general interest of traders looking forward to invest in foreign currency, many forex trading courses available. The primary objective of this Forex Trading Course is to impart knowledge on the fundamental procedures and tips on better and professional trading policies. Forex trading courses provide valuable information regarding the impact on global currencies, market risks, market trends, etc. This not only benefits new trader who wants to set foot on alien grounds, but also existing investors who want to brush their tricks of the trade. All aspects of forex trading, using the latest software and tools are what Forex Trading Course is comprised of material. Step by step guidance on trade environments, technical analysis, risk management, trading rules, global markets, economic and market indication etc are provided with hands on practical guidance from experienced tutors from all the worldwide. Many factors are to be considered before making a decision to do Forex trading course. "Knowledge is power" for all our daily diplomatic living. Knowledge on what we do and how we do, especially trading will not only enhance our business relationships, but also allows us to differentiate and monitor the market conditions. Managing our finance wisely will save us from fear and anxiety about the unpredictable future and meek. Forex trading scheme often these courses based business strategies in their material. Forex trading courses are available as online courses and also through printed books. Free tutorials and financial guidance is also provided by several websites. Choosing a professional Forex Trading Course will provide details on • Best time to trade specific coins • How to anticipate movements and trends in world market • What currency pairs to trade • Best time to enter the forex market • market conditions and tips on effective marketing to the experts • Technical indicators In total, a currency trading should be a currency trading complete solution for all questions relating to currency and efficient trading options.

Managing Forex Accounts Made Simple

Forex is a complex business which needs to be managed with extreme care and detail. However, many investors who enjoy a high investment income from foreign currency accounts multiple or large do not have the time or energy to go behind their management. This is where the notion of a Forex managed account comes into play. Companies with forex brokers experienced and trained to manage forex accounts managed on behalf of their clients. Contrary to popular belief that managed forex accounts are prone to fraud and money laundering, a managed forex account is much safer and better investment strategy of high self-monitoring return Forex accounts. Advantages of a Forex Managed Account Forex trading is an option with extreme potential - both for profits and losses. With shopping malls across the open world of 24-hours a day, running a forex account with a high return on investment at risk is difficult, but if done with skill, is bound to succeed. Time is a controlling factor in the forex market. Managed forex accounts are enormously beneficial in Forex Trading and Forex fund managers can maintain operations during the day. Any purchase or sale of opportunity may be charged in the currency in the accounts managed by dealing with them in time. Managed forex accounts also low investment firms, which eliminates the considerable financial risk. And the fact that currency trading is not composed of a closed period, the Forex fund manager can withdraw the money invested in the market immediately. A managed forex account is ideal for large-scale amateur investors who are reluctant or unable to manage their currency trading accounts for themselves. How do you identify the Ideal Forex Managed Account while the industry is replete with several companies offering managed foreign exchange accounts, as services to interested investors, for the latter to identify and select the one that best suits. There are several factors to consider in mind before opting for a managed forex final. The size of investment and risk potential are two major concerns. The complete program cost currency managed fund should also be checked with the standards of the industry before settling on the final currency managed account service provider. Forex managed accounts vary in their initial investment application. Some require thousands of dollars, while some require a certain amount. Usually the biggest investment, the greater the potential risk, and proportionally greater the reward. Therefore, to obtain a personal account forex managed, one must be aware of the combination of both and locate a Forex fund manager accordingly. Self-monitored forex trading is often done as a hobby or part time trade as a professional act. Managed forex accounts, however, are difficult business projects. Professional advice and thorough investigation with bulletins, etc. are needed before starting to invest money. The best investment strategy for the currency is always to test the waters before taking the plunge!

Forex Auto Pilot Review

Forex Market is the world's largest market. Every day at least $ 2 to $ 3 billion transaction takes place in the market. The Forex market is a market that works non stop 24/7/365. There are plenty of opportunities to profit in the currency market. At the same time is a very risky market. Forex traders often end up with huge losses. Most of those released are rookies. Today there are many automated trading systems in foreign exchange market and only a few have shown the tracks. Forex Auto Pilot is one that has proven outstanding records. Forex Auto Pilot is developed by Marcus Leary, a money changer employee used to work with various mathematical algorithms to analyze trends in the currency market. Using its experience, teamed up with Steven Strauss, a software developer, and together they created Forex autopilot. Forex autopilot This project is developed especially for beginners who do not have much business experience. Forex Auto Pilot you are coherent and consistent revenue stream, but never a get rich scheme. Forex Auto Pilot Implementation is very simple. It is necessary to understand the Forex autopilot system very clearly so that you can actually make operations profitable. I have some feedback from some of the forex traders who bought this software and tried it. The feedback I have is positive. They said they are doing many benefits but also the feedback that some took a day and some took two days and some even took a week to start making profits. For anyone to start making profits with Forex Auto Pilot they need to understand how the autopilot is the currency of work and the strategy that is working. It may be that some Forex traders can take a few minutes and some may take a day or some may take a week to understand the Forex Auto Pilot System. The sooner it is understood that the sooner you start making profits. Once you understand the Forex Autopilot System, then you can do to make Forex Auto Pilot operations for you even while you sleep! The following are the features of Forex Auto Pilot: 1.works 24 / 7 2. Recognizes trends and undercurrents 3. MetaTrade4 platform works in a trading platform that is very popular 4. It is based on mathematical models and algorithms 5. Easy to operate 6. You can monitor multiple markets simultaneously 7. Provides customer support round clock 8. Money-Back Guarantee if not satisfied during the first 56 days (8 weeks) 9. Affordability Bonus Forex autopilot: Bonus 1: Robot nonfarm payroll Add This unique trading robot was developed to automate MetaTrader4 commercial risk in high yield significant economic news, as nonfarm payroll. 5 minutes before the NFP event it opens 5 pending buy and 5 sell orders automatically with optimized distances between the current price calculating several factors. When the opportunity opens the robot starts the trade to increase profits and minimize risk using trailing stop. A money maker powerful rakes in thousands of dollars every month and is an incredible bonus. Estimated value: $ 235 Bonus 2: Ultra Trend Robot Ultra-trend advisor is one of the best and most effective instruments of technical analysis. It detects trend, strength of the trend is, support and resistance levels. Can be used for Elliot waves and Fibonacci levels! This indicator surpasses all well-known indicators like ADX, Stochastic, moving average. You can develop your own risk and profitable system based on Ultra-Trend. Easy to install with a few mouse clicks, it helps you get a feel for the market. This is ideal for people who not only want to make money with Forex Autopilot robots but to learn and understand why they do it:) Estimated value: $ 149 BONUS 3 (incredible): Up to $ 500 Forex Auto Pilot, in fact, is so successful that they are giving each user a bonus of up to $ 500 (five hundred) dollars! There was an agreement with a well known brokerage that credits each user's Forex Auto Pilot to $ 500 bonus on your deposit. You do not have to pay more for the platform. The real price of Forex Auto Pilot is $ 399.50. Now there's a coupon of 75% discount is available and for a limited period. Forex Auto Pilot is recommended for both novice and experienced Forex traders who really want to make a profit consistently, even while sleeping

What to Know When Learning to Trade Forex

This article will help you identify the learning method of Forex right on your personality and goals. Keep in mind when learning to trade Forex, each of these learning methods can lead to success. At some point, you may want to use the 3 methods of learning to trade Forex, especially when the experience can be very cost effective for yourselves. By reading this article, see the Forex learning method is obvious. That is the most probable is that you should follow. (To see the method you choose, mark the end of the article.) Learning to trade Forex: Learn Yourself You may want to learn to trade currencies yourself. There are a lot of training materials and people that dedicated to the teaching of Forex Trading. If you are the type of person who likes to themseleves all, this could be the right method for you. Just keep in mind there is a learning curve. Like any new skill you learn, you can not wait to learn everything you need to know overnight. If you go this route, find excellent training materials and then engage in learning during a period of months. Do not get frustrated if you do not understand everything immediately. Here is something about learning the currency in this way I draw your attention. Not so caught up in learning to trade Forex that never applies what he learns. After all, the ultimate goal is to profit from forex market, not only understand, right? There are plenty of people who know a lot about Forex Trading, they do not apply what they know or make money. Do not be one of them. Learning to trade Forex: hire an expert If you are planning to invest heavily in the forex market, you may want to hire an expert. For a fee, there are Forex traders who will be happy to exchange your money for you. Some of you reading this might feel more comfortable just to let someone else do all the trading for you. While you can hire someone to currency trading for you, you still want to learn something about Forex Trading. While not to be an expert in itself (after all, that's what we're paying, right?), Still loves you enough to be able to choose the right operator. The more I know personally about Forex Trading, the easier it is to identify the right professional for your needs and objectives. Learning to trade Forex: Using an EA (Expert Advisor) Robot Believe it or not, there are automated Forex Robots designed to make the trade for you. Again, you'll want at least a working knowledge of Forex, but basically, the robot does everything for you. This is one of the fastest ways to get into Forex Trading, ND may be one of the most profitable. Instead of having to solve everything by themselves, these robots are programmed by professionals to respond to certain market indicators. How well they do depends on how well they are programmed, and how well they react to events in the currency trading market. While even a robot can not be perfect all the time, some Forex robots can be surprisingly accurate. One of the good things go this route is the elimination of the excitement of your currency trading. It is never a good idea to let human emotions such as greed or fear to dictate the form in that trade. And the use of a preprogrammed robot can keep you from making costly mistakes. Besides, it's just a whole lot easier to configure and run while you're doing other things in life. You have made an important discovery in the Forex Market. Currency Trading is a tremendous opportunity. The next step is so important ... How can it work for you. Base how they used to learn Forex trading based on their personal goals and personality. What method was taken? Well, I have never really become a "Forex Guru" or invest large sums of money in the beginning. I was not the time nor the skills to learn and implement all Forex Trading for myself. On the other hand, was not thinking of spending a large amount of money in the currency market for the hiring of a professional trader is an option. But I wanted to take this opportunity to build wealth to learn to trade Forex offers, so it opted for an automated Forex robot. If you realize what a great opportunity to Forex Trading is to do what I did. Identify which method of learning to trade Forex is right for you, then start immediately. This is one of those rare occasions that can change your life and your future, and wish him much success.

Thursday, September 3, 2009

Planning: A Key to Successful Trading

From time to time I get some very interesting confessions. Here is a very recent one, along with a solution.

"Hey Joe! I had been looking at a profitable trade setup all day. I studied indicator after indicator looking for confirmation, even though I know many are correlated and redundant. But I just kept on searching. I thought, ’Maybe I missed something.’ My account is now so small that I just wanted to be sure that this was the right trade. My thought was that I must take into consideration anything and everything that could cause this trade to fail. I can’t afford to lose any more money. What should I do?"

Well, my friend, you need to be able to make a decision, but you can’t do it if you are trading undercapitalized and making your trading decisions out of fear and uncertainty.

You are suffering from too much analysis. You are looking at so many things, you no longer can see straight. If you keep on over-analyzing your trades, it may develop into a deep-seated psychological problem.

Carefully analyzing the possible consequences of your trading decisions is healthy, but it becomes unhealthy when it is overdone. When it comes to trading, it’s important to have a clearly defined trading plan. You want to be sure that any given trade is not going to wipe out your trading account. That is one of the reasons we want you to use a time stop in addition to a money stop. When you use both types of stops you are clearly defining the signs and signals that indicate your trading plan is not working, suggesting that you should close out the trade to protect your capital.

Trading, by its very nature, is uncertain. There is little that can be described as security for traders. Every trade is a new event, and every entry is an entirely new business. A trader does not have the luxury of living from his past accomplishments.

If you have an unquenchable thirst for certainty, then trading is not for you. Uncertainty in trading is co-equal with insecurity. If money represents security to you, you have a real problem as a trader. Losing money not only costs you your financial security, but also your emotional security.

You don’t have time to realize that prices have supported two ticks away from your entry about forty times in the past. You don’t have time to see that you are trading right into overhead selling. You don’t have time to notice that if prices break out of yesterday’s high, they will also probably take out a Ross hook. You don’t have time to see where prices are in relation to the trend line. You don’t have time to really grasp the overall trend, or the wave that is going counter trend. You don’t have time to really consider where you will place your stop. You don’t have time to read the market and to see what it might be telling you.

All of these things can be done ahead of time. If you do not do your homework, you will end up chasing markets in a desperate attempt to get into "the big move."

How to Make Consistent ProfitsTrading Futures Part II

Direct Access Electronic Trading

The issue of direct access is an important one and it becomes more important the more short term your trading is. The market can change from a state of seeming paralysis to one of shocking volatility and activity in a flash. The length of time it takes between you deciding to enter an order and the order actually being in the market is obviously important. When I first started trading I used a phone broker and was dismayed that my fills would often be so far from the price the market was trading when I first entered the order.

The first time I visited the trading floor, I discovered why. When I called in an order, first my discount(!) broker would check my account equity, then he would call a phone booth on the floor, the phone broker on the floor would then write the order down and pass it on (by phone) to a booth next to the appropriate pit, at that booth my order would be written down again and then signaled to a broker in the pit to be executed.

As you can imagine this would take quite a long time, even longer of course if the market was very active, as this would mean that the broker in the pit would be too occupied to take new orders. Compare this to my experience of trading as a pit trader. In the pit I was in the heart of the market and could observe every single order as it was executed (there was no delay in my price feed!). To initiate a trade, whether it was to buy or sell at the market, or join the bid or the offer, all I had to do was open my mouth. You can start to see the huge advantage that trading on the floor gave me over off floor traders; and that doesn’t take into consideration the fact that my round trip costs fell by 96%.

Now the floor no longer exists, not in Europe at least, so why talk about the advantages of pit trading? Well the level playing field is now open to all, but very few take advantage of it. Trading with an electronic trading platform is exactly the same as trading in the pit, except I can sit down, it is much quieter and there are no crude jokes flying around. I can trade with the click of a mouse; my order shoots to the exchange, enters in the market and appears back on my screen before I have time to blink. I think the advantages of direct access trading are clear and any futures trader still using a phone broker should move to direct access, they will also find their commissions are less (around £8 for private client traders).

The next question that arises is why trade futures? That is an important consideration given that there are a variety of alternatives vying for your trading capital (spread betting, CFDs and options), but in my opinion, futures are the only option (no pun intended) for successful short term trading.

What are Your Options Regarding Forex Options Brokers?

Forex option brokers can generally be divided into two separate categories: forex brokers who offer online forex option trading platforms and forex brokers who only broker forex option trading via telephone trades placed through a dealing/brokerage desk. A few forex option brokers offer both online forex option trading as well a dealing/brokerage desk for investors who prefer to place orders through a live forex option broker.

The trading account minimums required by different forex option brokers vary from a few thousand dollars to over fifty thousand dollars. Also, forex option brokers may require investors to trade forex options contracts having minimum notional values (contract sizes) up to $500,000. Last, but not least, certain types of forex option contracts can be entered into and exited at any time while other types of forex option contracts lock you in until expiration or settlement. Depending on the type of forex option contract you enter into, you might get stuck the wrong way with an option contract that you can not trade out of. Before trading, investors should inquire with their forex option brokers about initial trading account minimums, required contract size minimums and contract liquidity.

There are a number of different forex option trading products offered to investors by forex option brokers. We believe it is extremely important for investors to understand the distinctly different risk characteristics of each of the forex option trading products mentioned below that are offered by firms that broker forex options.

Plain Vanilla Forex Options Broker - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic option contracts that are traded through an over-the-counter (OTC) forex dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or forex put option contract.

There are only a few forex option broker/dealers who offer plain vanilla forex options online with real-time streaming quotes 24 hours a day. Most forex option brokers and banks only broker forex options via telephone. Vanilla forex options for major currencies have good liquidity and you can easily enter the market long or short, or exit the market any time day or night.

Vanilla forex option contracts can be used in combination with each other and/or with spot forex contracts to form a basic strategy such as writing a covered call, or much more complex forex trading strategies such as butterflies, strangles, ratio spreads, synthetics, etc. Also, plain vanilla options are often the basis of forex option trading strategies known as exotic options.

Exotic Forex Options Broker - First, it is important to note that there a couple of different forex definitions for "exotic" and we don’t want anyone getting confused. The first definition of a forex "exotic" refers to any individual currency that is less broadly traded than the major currencies. The second forex definition for "exotic" is the one we refer to on this website - a forex option contract (trading strategy) that is a derivative of a standard vanilla forex option contract.

Why you need to develop your own forex trading system

There are many forex trading systems and trading strategies out there. There are many free ones printed in forex trading articles, journals, books and on trading-related websites. You can buy them as software or you can subscribe to them periodically.

Novice traders say they do not have the time, the aptitude, the talent nor the brains to work out how to trade properly. They would rather purchase a program or subscribe to a forex trading system for hundreds - or in some cases - thousands of dollars. They say they do not have to do anything except be told what to buy, when to buy and how much of it you need to buy. Some ask me if this strategy or approach is advisable for trading the forex markets. To answer this question, I am then forced to consider the advantages and disadvantages of using such an approach to trading.

There are reasons why a trader would use a forex trading system or forex trading strategy that someone else developed and tested:

It is easy. A novice trader does not need to study how the forex market works and how he interacts with that market. He does not need to educate himself: he does not need to bother with books and seminars. He does not need to test the trading system, since the seller has already done that for him and reported promising hypothetical or actual results.
A novice trader hopes to get a forex trading system at a ’bargain’ price... sometimes even for free.

Hazards of trading a forex system or strategy developed and tested by someone else are the following:

Faulty Trading Systems
There are many faulty forex systems out there. They may be faulty because their assumptions and their mechanisms may no longer be true, accurate or valid. As a novice trader, how can you distinguish between the good systems and the bad systems if you don’t know how trading systems are built?
Discipline and confidence
All systems have drawdown periods. Some good forex trading systems may not make money for six months or an entire year. Even if it was a good system, can you continue to follow it even if it gives you a loss after a loss after a loss? How can you follow it if you do not have confidence in it? How can you be confident if you do not know the ins and outs of the system and if you have not tested it yourself?

I do not believe that people would blindly follow a system even if they were told that it would bring them riches. I can give someone a forex trading system, I can supply him with exceptional hypothetical or actual results and still, he would not be able to follow it.

I remember giving my dad a fully-mechanical forex trading system I developed. I told him a few simple rules and I told him not to question them. All he had to do was to follow them. We both traded it for two months, I grew my small account by roughly 50% (it happened to be a good two months), but he was losing. He wondered why. I asked to see his trading records. When I looked at his trading records, I found that he kept disobeying the rules. When I asked him why he disobeyed them, he wanted to improve the results after it had a couple of losing trades. He was trying to improve the results. According to him, the system asked him to do what he thought was not right during certain market conditions, so he did not follow it.

To overcome the hazards above, I see no way except for a trader to learn how to develop his own trading system. This is the only way a trader can know if a particular trading system or strategy is good or not.

Once a trader learns how to develop forex trading systems and strategies, he can then be better equipped to test them as well. By this point he might even find that he is better off using the system he created, because it becomes increasingly difficult to find another system more suited to his profit objectives while operating within his risk tolerance levels. It is likely that once he develops this level of competence, he will simply acquire other systems only to dissect them, grab the parts he likes and add them to his own system. To me, the irony is that for a trader to know which system to purchase, he must first learn how to create a system. And after knowing how to create a trading system, he will no longer have the need to buy one.

In conclusion then, I would have to say that if you are not inclined to learn how to develop your own trading methodology, then perhaps you should consider giving your money for someone else to invest. Give it to someone who is trading a system that he developed and tested himself because he is more likely to have the confidence and courage to follow his own set of rules.

Why do Forex Trading?

So.. you want to make lots of money in forex trading? Well, before you get your feet wet....let me refresh your mind why forex trading is such a hot money maker...

The cash/spot FOREX markets have certain unique attributes that offer an unmatched potential for profitable trading in any market condition or any stage of the business cycle. It leaves one to wonder why bother in the first place?

Forex trading offers people who trade:

A 24-hour market: A forex trader has the chance to take advantage of all of the profitable market conditions at any time; which means that there is no waiting for the start like the New York Stock exchange.

Highest liquidity Possible: The FOREX market is the most liquid market in the world. That means that a trader can enter or exit the market whenever they want during almost any market condition minimal execution barriers or risk and no daily trading limit.

High leverage ratio: It has a leverage ratio of up to 400 is normal when compared to a leverage ratio of 2 in the equity markets. Of course, this makes trading in the cash/spot forex market awkward a swell because it makes the risk of the down side loss much higher in the same way that it makes the profit potential on the upside much prettier.

Low cost per transaction: The retail transaction cost is actually less than 0.1% under the normal market conditions. At larger dealers, the spread could be less than 5 pips, and may expand a great deal in fast moving markets.

Always a good market: A trade in the FOREX market means selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies.

Inter-bank market: The foundation of the FOREX market consists of a global network of dealers that communicate and trade with their clients through electronic networks and telephones. There are no organized exchanges like in futures that are there to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets.

No one can corner the market: The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time.

It is not completely Unregulated: The FOREX market is seen as an unregulated market although the operations of major dealers like commercial banks in money centers are regulated under the banking laws.

For the average person who is willing to get into forex trading, this market is just a better bet. With it being so wide open like it is, you have a higher gross potential than with any other trade type.

What is forex Trading

Foreign Exchange Market, or Forex as it is commonly called, is an international exchange market to buy and sell different currencies from around the world. An investor has the ability to buy and sell these currencies in order to create gains from small movements in the value of one currency over another. The forex market is open from Monday at 0:00 GMT until Friday at 10:00 GMT. For this reason Forex traders are not limited to the general time constraints of the New York Stock Exchange or NASDAQ.

This versatility attracts many investors to become Forex traders. The liquidity of the Foreign Exchange Market is also very attractive for the Forex investor as trades range from 1 to 1.5 trillion dollars on a daily basis. These massive amounts of trades make it extremely difficult for any one trader to affect the market.

Foreign Exchange Trading is simply the purchase and sales of currency based on the strength of the currency and the fluctuation in the value of that currency. For example, if one were to invest $1,000 against the British pound at 1.7999 with a 1% margin and anticipate the exchange rate to climb. If that occurs and you close the exchange rate at 1.8050 you would earn roughly $400. Forex is giving you a 40% return on your investment.

Forex offers the possibility of huge profits in relatively short periods of time. The stock exchange is very different in that positions are generally maintained over a longer period of time. Although there are day traders, Forex traders have much shorter hold times on positions. Similar to the stock market marginal accounts can be obtained in the Foreign Exchange Market as well.

Forex marginal accounts are very engaging as they allow Forex traders to take large positions without having to make a large deposit. In many circumstances one can fund a marginal account with .05% the necessary funds. In other words, $500 would allow a $100,000 position. In order to trade Forex effectively and profitably, one must have some type of method to follow. There are two methods used in determining what Foreign Exchange trades one should make. There are two methods, fundamental Forex analysis, and technical Forex analysis.

Technical analysis is the most commonly used practice and uses the assumption that the changes that occur in the Foreign Exchange Market happened for a reason and are accurate. The belief is that if a currency has been trading towards a high then that currency will mostly continue towards that high with the adverse being true as well. The technical Forex view does not try to make long term predictions about the market but instead simply tries to take advantage of what has already been seen in the past.

The fundamental Forex method takes into account all aspects of the country in which the currency is traded. Things such as the economy, the countries prime interest rates, war, poverty level, and other factors are taken into account. If there is a sharp rise in the prime interest rate a Forex trader may take a position based on that information.

Online Forex trading has the potential of being extremely lucrative. One can learn to trade by creating an online Forex Account and begin by using a learning account without real funds. This will help you to understand the Forex trading process and how currencies are affected by different things that are happening on a global scale.

Trading with Strategy

Trading successfully is by no means a simple matter. It requires time, market knowledge and market understanding and a large amount of self restraint. ACM does not manage accounts, nor does it give market advice, that is the job of money managers and introducing brokers. As market professionals, we can however point the novice in the right direction and indicate what are correct trading tactics and considerations and what is total nonsense.

Anyone who says you can consistently make money in foreign exchange markets is being untruthful. Foreign exchange by nature, is a volatile market. The practice of trading it by way of margin increases that volatility exponentially. We are therefore talking about a very ’fast market’ which is naturally inconsistent. Following that precept, it is logical to say that in order to make a successful trade, a trader has to take into account technical and fundamental data and make an informed decision based on his perception of market sentiment and market expectation. Timing a trade correctly is probably the most important variable in trading successfully but invariably there will be times where a traders’ timing will be off. Don’t expect to generate returns on every trade.

In a perfect world, every trader would be looking at a 14 day RSI and making trading decisions based on that. If that was the case, when RSI would go under the 30 level, everyone would buy and by consequence the price would rise. Needless to say, the world is not perfect and not all market participants follow the same technical indicators, draw the same trendlines and identify the same support & resistance levels. The great diversity of opinions and techniques used translates directly into price diversity. Traders however have a tendency to use a limited variety of technical tools. The most common are 9 and 14 day RSI, obvious trendlines and support levels, fibonnacci retracement, MACD and 9, 20 & 40 day exponential moving averages. The closer you get to what most traders are looking at, the more precise your estimations will be. The reason for this is simple arithmetic, larger numbers of buyers than sellers at a certain price will move the market up from that price and vice-versa.

Learn How to Trade in Forex Market from the Basics

Forex trading is well known as a lucrative way to make money online. It has become an essential part for investor’s portfolio as you can gain thousands in minutes by trading currencies. For those who are new to the forex trading, Forex means Foreign Exchange Market where it involves buying and selling the different currencies of the world. Profits are made through the difference of selling and buying price - you earn when you buy-low and sell-high.

Forex market is a 24-hour market. The trade begins each day in Sydney, and moves around the globe to Tokyo, London, and then New York. Unlike any other financial market, investors can respond to money-value fluctuations caused by economic, social and political events at the time they occur - day or night. Major currencies traded nowadays are U.S. dollars, Australian Dollars, Japanese Yens, British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars.

In the past, small speculators are not allowed to trade Forex freely as it is now. The minimum required business sizes are large and the financial requirements for trading foreign currencies are strict. Only huge multi-national cooperation and banks are able to fit into the business. In fact, large international banks are still the main players in currency exchange market. Deutsche Bank is one of the top currency traders; along with other major banks like UBS, Citi Group, HSBC, Barclays, J. P. Morgan Chase, Coldman Sachs, ABN Amro, Morgan Stanley, and Merril Lynch; these banks are said to be responsible for more than 70% trades in currency market. Forex trade is not open to the publics until year 1998, where big sized inter-bank units are sliced into smaller pieces and offered to individual traders.

It is simple to get started in Forex trading, an funded Forex account and a computer connected to the Internet is more than enough to get started. However, to start trading and become a successful Forex trader are totally different. Trading Forex is a high risks game and traders should always follow certain principals, listed below are a few of must-do’s when trading in Forex market.

1. Educate yourself before trading in Forex market

As in any trading markets, building up your trading skills and knowledge is the very first step that you must take. To further your learning in Forex trading, seminars, workshops, video tutorials, online learning, or even books are handful to help us learn from the professional.

2. Having a trading plans

A good trading plan is needed no matter you are a beginner or an expert in Forex trading. The Forex market itself is just a vehicle, to go to your desired destination, which is to gain profit and achieve financial freedom in our case, you have to drive your vehicle with maps and navigations. How much do you want to earn from the trades? How much you can afford to lose if things go wrong? What is the amount of capital you are putting in? Answer the questions to yourself when you are setting your trading plan. If you fail to plan, you are indeed plan to fail.

3. Mature mindsets and discipline trading

Trading Forex with discipline is very important. Success in Forex trading could not be achieved by only plotting out the best trading plan. It is also depends on implementing the trading plan. Be disciplined, trade according to your plan and never trade with your emotion. Greed will stop you from taking profit at predetermined level; while fear will stop you from making the nice kill in the market.

Without a doubt, Forex is getting more and more popular. There are less restrictions in FOREX market. No limited market access, no liquidity issues-after market hours, zero commission fees, low capital requirements, and no restrictions on short selling. However, the risks in Forex trading should not be taken for granted. As you can always trade in margin, you might lose a lot more than you can afford if you don’t plan your investment wisely. Seminars, e-Books, Internet, papers, plus video courses are all you need first before getting involved in the market.

Intro to Forex Fundamental Analysis

The best course of action to take sometimes isn’t clear until you’ve listed and considered your alternatives. The following paragraphs should help clue you in to what the experts think is significant.

FOREX traders almost always rely on analysis to make plan their trading strategies. There are two basic types of FOREX analysis – technical and fundamental. This article will look at fundamental analysis and how it used in FOREX trading.

Fundamental analysis refers to political and economic conditions that may affect currency prices. FOREX traders using fundamental analysis rely on news reports to gather information about unemployment rates, economic policies, inflation, and growth rates.

Fundamental analysis is often used to get an overview of currency movements and to provide a broad picture of economic conditions affecting a specific currency. Most traders rely on technical analysis for plotting entry and exit points into the market and supplement their findings with fundamental analysis.

Currency prices on the FOREX are affected by the forces of supply and demand, which in turn are affected by economic conditions. The two most important economic factors affecting supply and demand are interest rates and the strength of the economy. The strength of the economy is affected by the Gross Domestic Product (GDP), foreign investment and trade balance.

Indicators

Various indicators are released by government and academic sources. They are reliable measures of economic health and are followed by all sectors of the investment market. Indicators are usually released on a monthly basis but some are released weekly.

Most of this information comes straight from the Forex Fundamental Analysis pros. Careful reading to the end virtually guarantees that you’ll know what they know.

Two of the most important fundamental indicators are interest rates and international trade. Other indicators include the Consumer Price Index (CPI), Durable Goods Orders, Producer Price Index (PPI), Purchasing Manager’s Index (PMI), and retail sales.

Interest Rates - can have either a strengthening or weakening effect on a particular currency. On the one hand, high interest rates attract foreign investment which will strengthen the local currency. On the other hand, stock market investors often react to interest rate increases by selling off their holdings in the belief that higher borrowing costs will adversely affect many companies. Stock investors may sell off their holdings causing a downturn in the stock market and the national economy.

Determining which of these two effects will predominate depends on many complex factors, but there is usually a consensus amongst economic observers of how particular interest rate changes will affect the economy and the price of a currency.

International Trade – Trade balance which shows a deficit (more imports than exports) is usually an unfavourable indicator. Deficit trade balances means that money is flowing out of the country to purchase foreign-made goods and this may have a devaluing effect on the currency. Usually, however, market expectations dictate whether a deficit trade balance is unfavourable or not. If a county habitually operates with a deficit trade balance this has already been factored into the price of its currency. Trade deficits will only affect currency prices when they are more than market expectations.

Other indicators include the CPI – a measurement of the cost of living, and the PPI – a measurement of the cost of producing goods. The GDP measures the value of all goods and services within a country, while the M2 Money Supply measures the total amount of all currency.

There are 28 major indicators used in the United States. Indicators have strong effects on financial markets so FOREX traders should be aware of them when preparing strategies. Up-to-date information is available on many websites and many FOREX brokers supply this information as part of their trading service.

Take time to consider the points presented above. What you learn may help you overcome your hesitation to take action.

How to Win the Forex Battle

Every trading activity is in fact participating in a battle. Winning the battle is a matter of knowledge, skill and experience. If you miss any of those you are going to join the long line of losers. Some says that 95 to 99 percent of the traders are lining up on the loser’s side.

How to win the battle in the currency market? It is easy to answer that question, based on the above approach – prepare yourself for the battle. If you treat currency market activity as a hobby you’ll ultimately lose all investments there. If you treat it as a business you still may loose everything.

The correct approach is: consider each pressing of the Buy/Sell button as entering a battlefield. If you enter it without having a knowledge, skill and experience on how to win, you are destined to fail. You may have some lucky trades in the beginning, though. That, by the way, is the worst case scenario for the rookie in trading.

The earlier you get your “bad” lessons, the better for your overall experience. No mater how good you consider yourself prepared, after demo trading lessons, you have no idea of the forces ruling on the real market.

In fact the worst enemy you are going to face in the very beginning is not hiding behind the walls of the global currency trading centers. Your most dangerous foe is hiding deep inside of you. That enemy is so powerful that you will be amazed how quickly it will wash away all your carefully considered decision.

No one has been able to evade the force of that destructive power. No one can understand or realize that force unless it has been confronted face to face. Start trading with real money and you will face it too. Fear, Greed or Hope are some of the names of that power.

Fear forces you to sell near the bottom and buy near the top. Greed forces you to get out of the market prematurely. Hope will keep in the trade until you loose everything. Fear may save you but hope may wreck you completely. Greed will never make you rich.

It is easy to give advice to trade without emotions and use the logic, only. How you can achieve that if you never have been there. You need to go through that turmoil, pick up your loses due to your emotional decisions and than analyze.

Study all your “bad” trades, because they are the most precious gifts on the way to proficiency in trading. Growing as an experienced trader is possible only after getting your losses in the beginning. Then sit down and carefully study the lessons they brought to you.

One thing traders never want to do is to admit of being wrong. The market is a constantly changing and it demands flexibility in taking decision. That implies monitoring and constantly adjusting, changing your decision and action. When your logical analyzes suggest that you are wrong – get out, quickly.

Once you overcome the emotions, concentrate on developing your signature way of trading. You can start with following different advisors and system and picking from them the things you like. Demo trade and test your ideas until you find the trade system which is matching completely your personality.

Now, you have to go back to emotion in a controlled way. Every time your system suggests a trade look inside you and see how you feel about this trade. You feel bad – discard it. If you feel good – keep it.

Here comes the final step: Looking for the final approval sign before submitting the trade. Here is the time, where the mastership shows up. Your weapon is loaded, the target is clearly seen on the visor and the finger is on the trigger. You have to make that final exhale, get the target over the cross point and shoot it.

How much knowledge, skill, experience and patience you need to build within in order to reach that very final stage of trading proficiency? Only you’ll know that and only you can do it. The rest is just numbers in your bank account.

Building a fortune by trading currency is not a mirage in the desert of live. There are hundreds of traders who are making living of that business and you can do it too. Study all you can find on the net and follow the steps of the best if you want to win that battle.

How To Get Started In FOREX Trading

The foreign exchange market (FOREX) offers many advantages to investors. But you need to know where to begin. This short guide will give you the FOREX basics, so you can quickly start participating in this fast growing market.

In the past, foreign exchange trading was limited to large players such as national banks and multi-national corporations. In the 1980’s the rules were changed to allow smaller investors to participate using margin accounts. Margin accounts are the reason why FOREX trading has become so popular. With a 100:1 margin account, you can control $100,000 with a $1,000 investment.

A Learning Curve

FOREX is not simple, though, so you’ll need some knowledge to make wise investment decisions. Although it is relatively easy to start trading on the FOREX, there are risks involved. Your first move as a beginner should be to find out as much as possible about the forex market before risking a dime.

Find A Forex Broker

FOREX traders usually require a broker to handle transactions. Most brokers are reputable and are associated with large financial institutions such as banks. A reputable broker will be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.

Open an Account with a forex borker

Opening a FOREX account is as simple as filling out a form and providing the necessary identification. The form includes a margin agreement which states that the broker may interfere with any trade deemed to be too risky. This is to protect the interests of the broker, since most trades are done using the broker’s money.

Once your account has been established, you can fund it and begin trading.

Many brokers offer a variety of accounts to suit the needs of individual investors. Mini accounts allow you to get involved in FOREX trading for as little as $250. Standard accounts may have a minimum deposit of $1000 to $2500, depending on the broker. The amount of leverage (how much borrowed money you can use) varies with account type. High leverage accounts give you more money to trade for a given investment.

Trades are commission-free, meaning that you can make many trades in one day without worrying about incurring high brokerage fees. Brokers make their money on the ’spread’: the difference between bid and ask prices.

Paper Trading Forex Market

Beginning traders are strongly advised get accustomed to FOREX by doing "paper trades" for a period of time. Paper trades are practice transactions that don’t involve real capital. They allow you to see how the system works while learning how to use the various software tools provided by most FOREX brokers.

Most online brokers have demo accounts that allow you to make free paper trades for up to 30 days. Every new FOREX investor should use these demo accounts at least until they are consistently showing profits.

FOREX Software

Each forex broker has its own set of software tools for making transactions, but there are a few tools that are common to all FOREX brokers. Real-time quotes, news feeds, technical analyses and charts, and profit-and-loss analyses are some of the features you can expect to see on most online brokers’ web sites.

Almost every broker operates on the Internet. To access a broker’s online services you’ll need a reasonably modern computer, a fast Internet connection, and an up-to-date operating system. Once your account is set up, you can access it from any computer just by entering your account name and password. If for some reason you are unable get to a computer, most brokers will allow you to make trades over the phone.

There are lots of ways to make money. FOREX trading is just one more potential stream of income — if you are prepared to learn and practice.

Forex Trading: The Perfect Forex Trading System

Trading the Forex market has become very popular in the last few years. But how difficult is it to achieve success in the Forex trading arena? Or let me rephrase this question, how many traders achieve consistent profitable results trading the Forex market? Unfortunately very few, only about 5% of traders achieve this goal. One of the main reasons of this is because Forex traders focus in the wrong information to make their trading decisions and totally forget about the most important factor: Price behavior.

Most Forex trading systems are made off technical indicators. But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.

There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as "the MA crossover made the price go up," but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.

Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn’t want to go up. Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.

Don’t get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.

So, how to create a perfect Forex trading system?

First of all, you need to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You need to make your own research on various trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.
Secondly, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and short signals if the market gives you indication that it will go down.
Third, and most importantly, you need to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling comfortably and being consistent profitable apply your system in a regular account.

Forex Trading Systems

You should build your own trading system

A trading system on the Forex market is a type of strategy that allows traders to trade with a set of rules. There are many free trading systems and strategies printed in trading articles, journals, books and on trading-related websites. I would have to say that if you are not inclined to learn how to develop your own trading methodology, then perhaps you should consider giving your money for someone else to invest. Give it to someone who is trading a system that he developed and tested himself because he is more likely to have the confidence and courage to follow his own trading system.

Why you need a forex trading system?

It’s easy to trade with a system.
A good system provides consistent result.

What makes a good trading system?

It’s simple. Forget complicated systems with lots of rules - it’s a proven fact that simple systems work better - and are less likely to fail, in the brutal world of trading.
A trading system with profitable expectation.
It provides good ratio of reward/risk.
A system of comprehensive risk management including market exposure weightings, stop-loss provisions and capital commitment guidelines that preserve capital during trend-less or volatile periods.

Once you learn how to develop trading systems and strategies, you can then be better equipped to test them as well. By this point you might even find that the system created by yourself is the best one for you, because it becomes the system more suited to your profit objectives while operating within your risk tolerance levels. It is likely that once you develops this level of competence, you will simply acquire other trading systems only to dissect them, grab the parts you likes and add them to your own system. To me, the irony is that for a trader to know which system to purchase, you must first learn how to create a system. And after knowing how to create a system, he will no longer have the need to buy one.

Forex Trading System: Discretionary vs. Mechanical Systems

There are basically two types of Forex trading systems, mechanical and discretionary systems. The trading signals that come out of mechanical systems are mainly based off technical analysis applied in a systematic way. On the other hand, discretionary systems use experience, intuition or judgment on entries and exits. But which one produces better results? Or more importantly, which one fits better your trading style? We will first analyze the pros and cons about each system approach.

Mechanical systems

Advantages
This kind of trading system can be automated and backtested efficiently. It has very rigid rules. Mechanical traders are less susceptible to emotions than discretionary traders.

Disadvantages
Most traders backtest Forex trading systems incorrectly. In order to produce accurate results you need tick data. The Forex market is always changing. The Forex market (and all markets) has a random component. The market conditions may look similar, but they are never the same. A trading system that worked successfully the past year doesn’t necessary mean it will work this year.

Discretionary systems

Advantages
Discretionary systems are easily adaptable to new market conditions. Trading decisions are based on experience. Traders learn to see which trading signals have higher probability of success.

DisadvantagesThey cannot be backtested or automated, since there is always a thought decision to be made. It takes time to develop the experience required to trade successfully and track trades in a discretionary way. At early stages this can be dangerous.

Now, which approach is better for Forex traders? The one that fits better your personality. For instance, if you are a trader that finds it hard to follow your trading signals, then you are better off using a mechanical system, where your judgment won’t play an important role in your system. You only take the trades that your system signals.

If the psychological barriers that affect every trader (fear, greed, anger, etc.) puts you in unwanted scenarios, you are also better off trading mechanical systems, because you only need to follow what your system is telling you, go short, go long, close a trade. No other decision has to be made.

On the other hand, if you are a disciplined trader, then you are better off using a discretionary system, because discretionary systems adapt to the market conditions and you are able to change your trading conditions as the market changes. For instance, you have a target of 60 pips on a long trade. But the market suddenly starts trending up pretty strongly, then you could move your target to say 100 pips.

Does it mean that trading a discretionary system has no rules? This is absolutely incorrect. Trading discretionary systems means that once a trader finds his/her setup, the trader then decides what to do. But every trader still needs certain rules that need to be followed, such as the size of the position, conditions that have to be met before thinking to get in the market, and so on.

Whether you choose to be a discretionary or a mechanical trader there are some important points you should take in consideration:

You need to make sure the Forex trading system you are using totally fits your personality. Otherwise you will find yourself outguessing your system.
You also need to have some rules and most importantly have the discipline to follow them.
Take your time to build the perfect system for you. It’s not easy and requires time and hard work, but at the end, if done correctly, it will give you consistent profitable results.
Before going live, try it on a demo account or even on a small account (I will go for the second option, since psychological barriers will be present.)

Forex Technical Analysis

The difference between forex technical and forex fundamental analysis is that forex technical analysis ignores fundamental factors and is applied only to the price action of the market. Forex technical analysis primarily consists of a variety of forex technical studies, each of which can be interpreted to predict market direction or to generate buy and sell signals. The technical analysis works by correlating the results and moves of current markets to create a short-term outlook for currencies. The rolling data that is produced throughout the trading day creates the interest in the markets and informs traders of the strong markets to back.

The Trend is Your Friend

Forex technical analysis is largely based around forex market movement trends, thus creating the widely used phrase ’the trend is your friend’ amongst traders. Buying and selling at the right time is the key in maintaining good levels of profits, following a trend is also about knowing where to entry a trade and more importantly where to exit.

Support and Resistance

Support and resistance is the basic of forex technical analysis. Support and resistance levels are points where a chart experiences recurring upward or downward pressure. A support level is usually the low point in any chart pattern (hourly, weekly or annually), whereas a resistance level is the high or the peak point of the pattern. Buying and selling at the support and resistance points makes a greater profit margin as long as they remain unbroken.

History Tends To Repeat Itself

Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement. The repetitive nature of price movements is attributed to market psychology; in other words, market participants tend to provide a consistent reaction to similar market stimuli over time. Forex technical analysis uses chart patterns to analyze forex market movements and understand trends. Although many of these charts have been used for more than 30 years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves.

Forex Software - Choosing the Best

When it comes to forex trading the forex software you choose is essential. There are so many forex trading companies all competing for your business that choosing the right forex software can be quite a difficult task. Most of the forex software products available offers live online forex trading platforms but what other components are vital when it comes to your forex software.

Key Elements For Your Forex Software

Before purchasing any forex software there are a few essential items that should be included. The most important is security and your online forex trading software should include a 128 bit SSL encryption which will prevent hackers from accessing any of your personal details and information such as your account balance, transaction history, etc.

Providing the best security for your forex trading will include a company that provides 24 hour technical server support for your forex software, 24 hour maintenance should anything go wrong, daily backups of all information, and a security system that has been designed to prevent any unauthorized access. Along with these security protocols there are also some forex trading companies that use smart cards and fingerprint scanners to ensure that only their employees can have access to their servers.

Another important factor when it comes to choosing your forex software is to check what the company’s downtime is like. When it comes to trading forex and particularly your online forex trading you need to ensure that the forex software you choose is reliable and available 24 hours a day. The forex software you choose for your forex trading should also have technical support available at all times should your session be cut short.

Ensuring that all the above features are listed in the forex software you choose will help to ensure your forex trading success.

W.D. Gann Trading Methods - Genius Trader or Overrated Guru

W.D. Gann is one of the most famous traders of all time, and has a huge devoted following - however the fact is, Gann never made the huge profits many of his disciples claim.

He did not have a success rate of 90%, as is often claimed - the logic his methods are based upon are unsound, and his predictive methods don’t predict - they leave everything to subjective opinion!

Let’s examine his theories of investment in more detail and see.

Let’s look at some common myths about how great a trader Gann actually was:

Many sources quote Gann’s trading profits at $50 million dollars, however this is not true.

An interview that Alexander Elder had with his son tells the truth.

Firstly, his son confirmed that when his father died in the 1950s his estate was valued at just $100,000 - and that included his house.

Secondly, his son confirmed that Gann was unable to make enough money from trading, and therefore supplemented his income by writing and selling courses.

W.D. Gann’s Predictions

Many sources quote he had a success rate in all his trades of over 90% - again not true. We can easily deduce this from the value of his estate.

If he could make money trading and had a 90% success rate, he would have made hundreds of millions in his trading career - and he clearly did not - that’s why he had to sell books and courses.

The only evidence of a 90% success rate came from a small number of trades - and was not representative of them all.

Gann’s Methods are Predictive

Gann came to the conclusion that all natural phenomena are cyclical - including financial markets. This is true, but this is an obvious statement - we all know we’re going to die but when exactly?

A predictive theory is not a predictive theory if it can’t predict.

If Gann’s theory really is predictive, then there would be no market - as we would all know the price in advance!

Gann’s theory is subjective - and he really had no way of predicting the future with accuracy. It’s all subjective analysis and this is NOT a predictive theory.

Gann’s Logic

The basis of Gann’s theory is the principle that price and time must balance.

His methods are based on the squaring of price with time - this occurs when a unit of price equals a unit of time.

Gann for example would take a prominent high in the market, convert that dollar unit into a specified period of time and project it forward. When that time is reached, price and time are squared - and a market turn is due.

What? - How can one unit of price equal one unit of time? If you think about and answer this question for yourself, you will see how absurd the connection is.

This isn’t the only inconsistency used in his analysis - we also have the legendary Fibonacci numbers which are supposed to work with stunning accuracy - but they don’t, and neither do all sorts of astrology and geometry, that appeals to the far out investment crowd.

As we have seen, Gann was a trader who had modest success, and claimed to have discovered a predictive theory - which predicts nothing with accuracy.

Finally, we have so many subjective indicators cobbled together, that the theory can prove anything in hindsight, but if you want a tool to trade the markets look elsewhere.

For those of you still not convinced - I recently saw on the Internet, Gann’s trading methods selling for under $1,000!

Sounds like a bargain to get trades with 90% accuracy - I wonder how many serious money managers have it on their bookshelf.

Forex Signal Trading Gives the Traders One More Analytical Tool

Forex signal trading has emerged as an important support service for forex traders. This service is run either by forex brokers or by independent analysts who monitor and analyze the forex market. These analysts identify forex trends using several indicators. Based on this analysis, they suggest profitable entry and exit points to forex traders for a fee.

Most analysts offer signals for only the most popular currency pairs, such as EUR/USD, USD/JPY, GBP/USD and USD/CHF. However, there are some specialty services also that offer signals for the lesser-traded pairs.

The charges for these services vary from analyst to analyst, and depend upon the range of services bought by the trader. For instance, a basic subscription service offers email alerts of entry/exit opportunities to traders while a more comprehensive service provides this information through SMS, cell phone or pager alerts also.

Some signal trading services also provide live charts for the traders to make their judgment. Irrespective of the level of service, a trader should be prepared to pay a minimum subscription fee of $100 a month.

However, the success of a forex signal service should not be measured in isolation or over a relatively short period of time. The traders should use these signal services only as an extra indicator, as one more tool in their trading toolbox. A good way to judge the analytical skills of signal trading service is to ask for historical data. This can expose the claims of trading signal service.

The biggest benefit of signal trading services is that they save the traders the bother of analyzing or crunching data. However, this does not mean that the traders should depend upon them exclusively to maximize their profits or minimize their losses. This should happen only when the traders develop sufficient trust in certain signal trading services. Otherwise, the traders should use their own judgment and market grapevine to decide the trades.

While Forex signal trading gives the trader’s one more analytical tool, each trader must use his or her best judgment before making the trade. Forex signal trading software is a great tool, but should never be used solely to base the trade decision upon. You would be better off relying on your past experience and gut instinct when analyzing signal trading data. You will also want to rely on your basic fundamental analysis. Forex traders using fundamental analysis rely on news reports to gather information about unemployment rates, economic policies, inflation, and growth rates.

Sunday, September 6, 2009

Thursday, September 3, 2009

How to Make Consistent ProfitsTrading Futures Part II

What are Your Options Regarding Forex Options Brokers?

What is forex Trading

Trading with Strategy

Intro to Forex Fundamental Analysis

How To Get Started In FOREX Trading

Forex Trading Systems

Forex Trading System: Discretionary vs. Mechanical Systems

Forex Software - Choosing the Best

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