Forex Trading System - A Simple, FREE Profitable One for Big FX Profits
by kelly Price
If you want to buy a mechanical forex trading system there are plenty on the net that you can buy but 99% of them don't work as they have never been traded and come with simulated track records. On the other hand, you can use this free one which is simple and profitable.
The trading system we are going to look at is incredibly simple but don't assume that just because it's simple it doesn't work - it does. You can make big profits with it by incorporating it in to your forex trading strategy.
This system was developed by trading legend Richard Donchian in the late seventies for trading commodities and many traders have used over the years. While it was developed to trade commodities it works well in currency markets because they trend.
The system is called "The four week rule" and it does exactly what its name implies.
Here are the rules:
1) Close short positions and reverse to a long position when a price exceeds the highs of the previous 4 weeks.
2) Close long positions and reverse to a short position when a price falls below the lows of the previous 4 weeks.
That is the system and you couldn't get simpler than that.
The above will work very well in trending markets but in sideways and consolidating markets it will get chopped, so you can consider using a filter. Enter trades on the 4 week rule - but exit the position on a shorter time period and go flat.
1 or 2 week cycles are ones to consider. You would then simply re enter on the next 4 week signal. I have used this currency trading system as part of my strategy for years and it works -most traders won't use it though, despite the fact its proven and it works - Why?
1. It's too simple.
Most people discount it purely on this, although simple systems always tend to beat complicated ones as they are more robust.
2. It takes discipline to follow, as it is not fussy about exact market timing.
Most traders are obsessed with buying low and selling high (even though it doesn't work!) so can't follow it and most traders lack discipline anyway.
3. Its not trendy.
Most forex traders like trendy or mystical systems Fibonacci, Elliot Wave, Neural networks, artificial intelligence etc which are all a bit more glamorous than a system from the seventies, with one parameter. Make no mistake though, this system beats most on the net that are sold and it's free!
While it may be simple, keep in mind many famous traders have used it such as, Richard Dennis, the turtles and many more - if it's good enough for them, it's good enough for you.
You can of course just use the general principle in your forex trading strategy as a currency trading system it is based on the 4 week cycle of price and you will be surprised at how important it is.
To get diversification you can trade currencies with other markets as well and diversify. For example -the energies and interest rate markets are good trending markets to combine with currencies.
The 4 week rule is free and if you are serious about your forex education, take a look at it and it will help you enjoy forex trading success.
วันพฤหัสบดีที่ 28 กุมภาพันธ์ พ.ศ. 2551
Swiss Broker Forex
Swiss Broker Forex
by Kristie Chiles
People often hear the term "forex" but a lot of people do not understand what it is or what the letters actually stand for as an abbreviation. Forex is an abbreviation for the Foreign Exchange Market. It is an international market and gives people from all over the planet an opportunity to buy and sell stocks and commodities world-wide. Since it is indeed an international market, most people feel more comfortable finding a broker instead of doing the trading themselves in an unknown realm. These kind of investors usually turn to a Swiss Forex broker for help and guidance and in our modern world, they turn to the internet as their mode of contact.
Going online these days offer a rare opporunity to find whatever you need world-wide, in this case, a Swiss forex broker. The internet offers ease and quick resolution to finding such a broker. All one would do is log in, search for the Swiss broker of your choice and you have begun your journey into Swiss trading. We all have the impression, perhaps from movies and television, that the Swiss have a "corner" on the world market and have an inside track to making money quickly and easily that Americans do not possess.l Truth or fiction, no one knows for sure, but the perception draws people to the internet to search for a Swiss professional to help them invest their savings for future gain.
One of the main reasons the Swiss market is so popular is because of the medium of currency there called the "franc." This is Switzerland's official currency, but is also used in other countries such as Germany, Liechtenstein and the Italian "Campione d'Italia." It is interesting to note that if you are searching for a franc, the only one you will find is in Europe. The Swiss franc is rated in fifth place in Forex or foreign exchange currency and that is pretty impressive. The other popular currencies originate from the United States (the dollar), the European (euro), the British pound (sterling) and the Japanese currency (yen). Since the Swiss franc is so adaptable, this also adds to its appeal.
When going online to find a Swiss broker, you must exercise "due diligence" and much caution. You are about to embark on a financial journey and hand over your hard earned dollars as an investment to a complete stranger in a different part of the world. Remember, once the money is transferred, your basic control over it is gone and you are at the mercy of the broker. With that being said, there are ways to ensure that you are making a wise move. First, look to see if this Swiss broker has a website and how professional the website appears. Then, call the broker and have a conversation with him. Above all, ask him for references and call each one at length. This eliminates some risk, but as you know, even this is not fool-proof, but will make you feel as if you have done all that you can to prepare to invest. I would advise beginning with a small investment to "test the waters." If this is successful, then branch out to bigger pots of Swiss gold.
by Kristie Chiles
People often hear the term "forex" but a lot of people do not understand what it is or what the letters actually stand for as an abbreviation. Forex is an abbreviation for the Foreign Exchange Market. It is an international market and gives people from all over the planet an opportunity to buy and sell stocks and commodities world-wide. Since it is indeed an international market, most people feel more comfortable finding a broker instead of doing the trading themselves in an unknown realm. These kind of investors usually turn to a Swiss Forex broker for help and guidance and in our modern world, they turn to the internet as their mode of contact.
Going online these days offer a rare opporunity to find whatever you need world-wide, in this case, a Swiss forex broker. The internet offers ease and quick resolution to finding such a broker. All one would do is log in, search for the Swiss broker of your choice and you have begun your journey into Swiss trading. We all have the impression, perhaps from movies and television, that the Swiss have a "corner" on the world market and have an inside track to making money quickly and easily that Americans do not possess.l Truth or fiction, no one knows for sure, but the perception draws people to the internet to search for a Swiss professional to help them invest their savings for future gain.
One of the main reasons the Swiss market is so popular is because of the medium of currency there called the "franc." This is Switzerland's official currency, but is also used in other countries such as Germany, Liechtenstein and the Italian "Campione d'Italia." It is interesting to note that if you are searching for a franc, the only one you will find is in Europe. The Swiss franc is rated in fifth place in Forex or foreign exchange currency and that is pretty impressive. The other popular currencies originate from the United States (the dollar), the European (euro), the British pound (sterling) and the Japanese currency (yen). Since the Swiss franc is so adaptable, this also adds to its appeal.
When going online to find a Swiss broker, you must exercise "due diligence" and much caution. You are about to embark on a financial journey and hand over your hard earned dollars as an investment to a complete stranger in a different part of the world. Remember, once the money is transferred, your basic control over it is gone and you are at the mercy of the broker. With that being said, there are ways to ensure that you are making a wise move. First, look to see if this Swiss broker has a website and how professional the website appears. Then, call the broker and have a conversation with him. Above all, ask him for references and call each one at length. This eliminates some risk, but as you know, even this is not fool-proof, but will make you feel as if you have done all that you can to prepare to invest. I would advise beginning with a small investment to "test the waters." If this is successful, then branch out to bigger pots of Swiss gold.
FOREX Fallacies: The Top Ten List
FOREX Fallacies: The Top Ten List
by Staff Writer
The Internet is replete with so-called "expert" advice on just about everything...and the foreign exchange Market is no exception. The trouble with all of this is that bad advice is often given and repeated until it becomes accepted wisdom.
Following is our list of the top ten fallacies concerning the Forex Market:
1. You have to predict accurately to win in the Foreign Exchange Market.
This is inherently wrong, as there is no sure-fire method for making absolute predictions. Conditions are fluid. Too many factors are beyond the realm of absolute predictability.
2. Trade the trends.
Closely related to the first fallacy, this is also dangerous, because most people understand this term to mean "follow the trend." Trend-following systems are forever being developed and implemented. The trouble with that thinking is that it does not allow for the inevitable corrections and flats in the market. Trend-followers generally lose more than they gain, because the market takes from them more than it gives.
3. Markets dance to a scientific tune.
Many believe that Markets move to a scientific theory. A little sound reason refutes this idea. Think about it: if the market moved to a scientific formula, such as those propagated by Gann, Fibonacci and Elliot, everyone would know the price in advance, and the market would cease to exist.
4. Tight stops are foolproof.
The trouble with such thinking is that any hard stop of less than 50 pips has no real chance of surviving, due to Market noise.
5. A complicated, complex strategy is the way to go.
Truthfully, simple is more effective. The more indicators you have to monitor, the more elements there are to break down and throw you off your game.
6. Asset management is as simple as implementing stops.
Placing stops does not equate to managing your money. Such management is more about realizing the relationship of risk to reward, knowing what you have to gain and what you can stand to lose in the pursuit of success.
7. I can prevent future losses entirely by learning from the losses I have already suffered.
Certainly, a person who fails to learn anything from a loss is bound to repeat possible mistakes. However, anyone who trades on the Foreign Exchange Market - or any financial market -- for a substantial period is going to suffer setbacks along the way. It is the big picture, the overall promise of the market that has record numbers of investors flocking to it.
8. "Where there is smoke there is fire."
With the advent of the Internet and the proliferation of websites, blogs, and chat rooms devoted to Forex trading in particular, rumormongering is a way of life. Often, a rumor that has no basis in truth is born of deceit and spread in ignorance. Sometimes, smoke is nothing more than a smokescreen.
Will Rogers' whimsical advice, "Believe half of what you see and none of what you hear," may be extreme, but in the forex market, it might be a good approach.
9. You don't need a plan to trade currency.
Someone has said, "No one plans to fail, but many fail to plan, and thus do in fact fail."
The Forex Market has its difficulties, ebbs and flows. To succeed in the long-term, you have to plan your work and then work your plan.
10. Trading is a great way to get rich quickly.
Most short-termers are also short-timers. They lack the stomach and the capital to stay in the game. For the patient, committed, informed investor, Forex is a promising and lucrative Market. Most "wanna-be" traders do not fit the above description, however, and ultimately lose out.
Welcome to the exciting world of Forex trading! Just watch your step, avoid the fallacies, and forge ahead into an exhilarating and profitable venture.
by Staff Writer
The Internet is replete with so-called "expert" advice on just about everything...and the foreign exchange Market is no exception. The trouble with all of this is that bad advice is often given and repeated until it becomes accepted wisdom.
Following is our list of the top ten fallacies concerning the Forex Market:
1. You have to predict accurately to win in the Foreign Exchange Market.
This is inherently wrong, as there is no sure-fire method for making absolute predictions. Conditions are fluid. Too many factors are beyond the realm of absolute predictability.
2. Trade the trends.
Closely related to the first fallacy, this is also dangerous, because most people understand this term to mean "follow the trend." Trend-following systems are forever being developed and implemented. The trouble with that thinking is that it does not allow for the inevitable corrections and flats in the market. Trend-followers generally lose more than they gain, because the market takes from them more than it gives.
3. Markets dance to a scientific tune.
Many believe that Markets move to a scientific theory. A little sound reason refutes this idea. Think about it: if the market moved to a scientific formula, such as those propagated by Gann, Fibonacci and Elliot, everyone would know the price in advance, and the market would cease to exist.
4. Tight stops are foolproof.
The trouble with such thinking is that any hard stop of less than 50 pips has no real chance of surviving, due to Market noise.
5. A complicated, complex strategy is the way to go.
Truthfully, simple is more effective. The more indicators you have to monitor, the more elements there are to break down and throw you off your game.
6. Asset management is as simple as implementing stops.
Placing stops does not equate to managing your money. Such management is more about realizing the relationship of risk to reward, knowing what you have to gain and what you can stand to lose in the pursuit of success.
7. I can prevent future losses entirely by learning from the losses I have already suffered.
Certainly, a person who fails to learn anything from a loss is bound to repeat possible mistakes. However, anyone who trades on the Foreign Exchange Market - or any financial market -- for a substantial period is going to suffer setbacks along the way. It is the big picture, the overall promise of the market that has record numbers of investors flocking to it.
8. "Where there is smoke there is fire."
With the advent of the Internet and the proliferation of websites, blogs, and chat rooms devoted to Forex trading in particular, rumormongering is a way of life. Often, a rumor that has no basis in truth is born of deceit and spread in ignorance. Sometimes, smoke is nothing more than a smokescreen.
Will Rogers' whimsical advice, "Believe half of what you see and none of what you hear," may be extreme, but in the forex market, it might be a good approach.
9. You don't need a plan to trade currency.
Someone has said, "No one plans to fail, but many fail to plan, and thus do in fact fail."
The Forex Market has its difficulties, ebbs and flows. To succeed in the long-term, you have to plan your work and then work your plan.
10. Trading is a great way to get rich quickly.
Most short-termers are also short-timers. They lack the stomach and the capital to stay in the game. For the patient, committed, informed investor, Forex is a promising and lucrative Market. Most "wanna-be" traders do not fit the above description, however, and ultimately lose out.
Welcome to the exciting world of Forex trading! Just watch your step, avoid the fallacies, and forge ahead into an exhilarating and profitable venture.
วันเสาร์ที่ 23 กุมภาพันธ์ พ.ศ. 2551
Tips for Choosing FOREX Trading Software
Tips for Choosing FOREX Trading Software
by Scott M.
One of the greatest things about living inthe computer age is that there is software that works for virtually every trading strategy imaginable. When it comes to foreign currency trading, there are many different types of FOREX trading software to choose from. Here are some tips to help you pick the FOREX trading software that is best for you.
When looking for quality FOREX trading software, you probably want to start by talking to your broker or dealer. There is a very good chance he/she has some specific recommendations about software packages that would be of interest to you. Because some types of trading software are more ideally suited to specific investments, your broker or dealer may have some ideas that will not only help you manage your FOREX assets, but also provide some assistance with other types of investments as well. After getting FOREX trading software recommendations from your broker or dealer, test drive each one to see what is best for you.
Another possibility is to get some ideas for FOREX software from some of your fellow traders. You can visit online forums and message boards, post your query, and receive several excellent recommendations. There are literally hundreds of different FOREX forums on the internet. One of the advantages of this approach is that you will often also get some ideas on software packages to avoid, which can also be very helpful.
Of course, you can always to your own online search for FOREX trading software packages. If you decide to go this route, look for products that offer a free downloadable version that you can try out for a while. There are many software sellers that offer free editions with limited features that will work for a short period before becoming inoperable. This will give you the chance to test drive the product before you make a purchase. If the seller is not willing to let you try the FOREX trading software for free, you should avoid buying it.
When choosing a type of FOREX trading software, make sure you know what features will be of most interest to you. A good idea is to make a list of features you must have, along with a list of features that you would like to have. Using these two lists as your guide, you can search for the right FOREX trading software options through these several avenues, and find exactly what you want.
Most of all, you really need to make sure that the FOREX trading software is right for you. If you go to Google you will find many different reviews about the software you are thinking about purchasing, what its benefits are, and who will benefit most from it
There is an abundance of free information on the internet that will help you make your decision.
by Scott M.
One of the greatest things about living inthe computer age is that there is software that works for virtually every trading strategy imaginable. When it comes to foreign currency trading, there are many different types of FOREX trading software to choose from. Here are some tips to help you pick the FOREX trading software that is best for you.
When looking for quality FOREX trading software, you probably want to start by talking to your broker or dealer. There is a very good chance he/she has some specific recommendations about software packages that would be of interest to you. Because some types of trading software are more ideally suited to specific investments, your broker or dealer may have some ideas that will not only help you manage your FOREX assets, but also provide some assistance with other types of investments as well. After getting FOREX trading software recommendations from your broker or dealer, test drive each one to see what is best for you.
Another possibility is to get some ideas for FOREX software from some of your fellow traders. You can visit online forums and message boards, post your query, and receive several excellent recommendations. There are literally hundreds of different FOREX forums on the internet. One of the advantages of this approach is that you will often also get some ideas on software packages to avoid, which can also be very helpful.
Of course, you can always to your own online search for FOREX trading software packages. If you decide to go this route, look for products that offer a free downloadable version that you can try out for a while. There are many software sellers that offer free editions with limited features that will work for a short period before becoming inoperable. This will give you the chance to test drive the product before you make a purchase. If the seller is not willing to let you try the FOREX trading software for free, you should avoid buying it.
When choosing a type of FOREX trading software, make sure you know what features will be of most interest to you. A good idea is to make a list of features you must have, along with a list of features that you would like to have. Using these two lists as your guide, you can search for the right FOREX trading software options through these several avenues, and find exactly what you want.
Most of all, you really need to make sure that the FOREX trading software is right for you. If you go to Google you will find many different reviews about the software you are thinking about purchasing, what its benefits are, and who will benefit most from it
There is an abundance of free information on the internet that will help you make your decision.
Forex Trading For The Beginner
Forex Trading For The Beginner
by Will Hopgood
Forex trading commonly referred to as FX involves the trade of stock on the foreign exchange market. Trading with the numerous types of currencies that are used around the world defines forex trading. Having more than just a passing knowledge of the entire concept can aid you in making more impact in forex trading. As indecipherable as the exchange quote may seem the first time, you can understand it by mastering the art of reading it, an ability that is most central. With that trait adequately mastered, the investor can proceed to other areas of trading 24 hours of everyday.
It's true that access into the world of trading requires very little, but that shouldn't stop one from launching an investigation as to the relevant sites to browse and making the choice of gaining access or not. Well placed clicks can have you downloading information from websites that deal only with helping you stay ahead in the game of forex trading. Selecting information that tailors to his or her information needs is something the smart investor does; that's why many of the sites offer very rich and up-to-date forex trading information. Available online to the ignorant investor as well are courses distinctive in their goal to give a formidable grasp of forex trading.
Investors can monitor their investments and make them regardless of the unpredictability of the earth's political, social and economical trends, thanks to the 24 hours daily services of forex trading. Sydney kick starts the process each day. New York, London and Tokyo are the next destinations before it returns back to Sydney in preparation for another re-run. Comparing trading on the NYSE, Dow or S&P 500 and forex trading reveals several contrasts.
Don't be quick to make any monetary contributions until you are sure that you comprehend the nature of the market.
Lastly on a related observation, unlike a stock market, where all participants have access to the same prices, the forex market is divided into levels of access... at the top is the inter-bank market, which is made up of the largest investment banking firms; within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle.
Also, additionally interrelated, return on margin (ROM) is often used to judge performance because it represents the gain or loss compared to the exchange's perceived risk as reflected in required margin.
by Will Hopgood
Forex trading commonly referred to as FX involves the trade of stock on the foreign exchange market. Trading with the numerous types of currencies that are used around the world defines forex trading. Having more than just a passing knowledge of the entire concept can aid you in making more impact in forex trading. As indecipherable as the exchange quote may seem the first time, you can understand it by mastering the art of reading it, an ability that is most central. With that trait adequately mastered, the investor can proceed to other areas of trading 24 hours of everyday.
It's true that access into the world of trading requires very little, but that shouldn't stop one from launching an investigation as to the relevant sites to browse and making the choice of gaining access or not. Well placed clicks can have you downloading information from websites that deal only with helping you stay ahead in the game of forex trading. Selecting information that tailors to his or her information needs is something the smart investor does; that's why many of the sites offer very rich and up-to-date forex trading information. Available online to the ignorant investor as well are courses distinctive in their goal to give a formidable grasp of forex trading.
Investors can monitor their investments and make them regardless of the unpredictability of the earth's political, social and economical trends, thanks to the 24 hours daily services of forex trading. Sydney kick starts the process each day. New York, London and Tokyo are the next destinations before it returns back to Sydney in preparation for another re-run. Comparing trading on the NYSE, Dow or S&P 500 and forex trading reveals several contrasts.
Don't be quick to make any monetary contributions until you are sure that you comprehend the nature of the market.
Lastly on a related observation, unlike a stock market, where all participants have access to the same prices, the forex market is divided into levels of access... at the top is the inter-bank market, which is made up of the largest investment banking firms; within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle.
Also, additionally interrelated, return on margin (ROM) is often used to judge performance because it represents the gain or loss compared to the exchange's perceived risk as reflected in required margin.
วันศุกร์ที่ 22 กุมภาพันธ์ พ.ศ. 2551
Forex Prices - How and Why They Really Move
Forex Prices - How and Why They Really Move
by kelly Price
Do you know how and why forex prices really move? Most traders don't and they lose. Here we are going to give you a simple equation that will give you a deeper understanding of how and why forex prices move, which could lead you to forex trading success.
Here is the equation:
Fundamentals (supply and demand factors) + (Human Perception of them) = Price.
Now that is nice and simple - but its simplicity is deceptive and if you think about it, you can conclude the following:
- You cannot simply trade the news and investment facts
The reason for this is - the fundamentals are discounted straight away by the market and its how investors perceive them that's important, NOT the facts themselves.
Facts are instantly discounted so you can never trade them - you're playing catch up and further more we all see them differently, so you cannot hope to predict where they go.
Prices do not move to the fundamentals and this has been proven time and time again as, markets collapse when there most bullish and rally when there most bearish.
So forget trying to trade the news!
- To Win You Must Study Human Psychology
Its not facts that makes a market move, its traders like you me and millions of others and our perception of the facts.
Now were all different - but we all are to a degree governed by greed and fear and as human nature is constant, this shows up in repetitive price patterns that can be traded for profit - if we look at a forex chart.
Forex charts are the best way to trade forex because they simply assume the fundamentals show up in the price straight away (so there is no need to study them), you only need to study their effect and that can be seen on a chart.
You get to see the fundamentals and more importantly, how the investors perceive them and can trade the reality of price for profit.
Trading the Reality
Forex charts allow you to simply trade the truth and follow price trends without the need to look at news stories or listen to opinions.
You can stand back non-emotionally and simply trade market action as it unfolds. A forex chartist doesn't care how or why prices move, he just wants to lock into trends and make money when they do - it's that simple.
Getting a System For Profit
If you want to make money in forex trading you can, with a simple robust forex trend following strategy. While many traders think that developing a forex trading strategy is difficult its not and we will show you how in the second article of this series.
by kelly Price
Do you know how and why forex prices really move? Most traders don't and they lose. Here we are going to give you a simple equation that will give you a deeper understanding of how and why forex prices move, which could lead you to forex trading success.
Here is the equation:
Fundamentals (supply and demand factors) + (Human Perception of them) = Price.
Now that is nice and simple - but its simplicity is deceptive and if you think about it, you can conclude the following:
- You cannot simply trade the news and investment facts
The reason for this is - the fundamentals are discounted straight away by the market and its how investors perceive them that's important, NOT the facts themselves.
Facts are instantly discounted so you can never trade them - you're playing catch up and further more we all see them differently, so you cannot hope to predict where they go.
Prices do not move to the fundamentals and this has been proven time and time again as, markets collapse when there most bullish and rally when there most bearish.
So forget trying to trade the news!
- To Win You Must Study Human Psychology
Its not facts that makes a market move, its traders like you me and millions of others and our perception of the facts.
Now were all different - but we all are to a degree governed by greed and fear and as human nature is constant, this shows up in repetitive price patterns that can be traded for profit - if we look at a forex chart.
Forex charts are the best way to trade forex because they simply assume the fundamentals show up in the price straight away (so there is no need to study them), you only need to study their effect and that can be seen on a chart.
You get to see the fundamentals and more importantly, how the investors perceive them and can trade the reality of price for profit.
Trading the Reality
Forex charts allow you to simply trade the truth and follow price trends without the need to look at news stories or listen to opinions.
You can stand back non-emotionally and simply trade market action as it unfolds. A forex chartist doesn't care how or why prices move, he just wants to lock into trends and make money when they do - it's that simple.
Getting a System For Profit
If you want to make money in forex trading you can, with a simple robust forex trend following strategy. While many traders think that developing a forex trading strategy is difficult its not and we will show you how in the second article of this series.
How to Apply Dow Theories to Forex Trading
How to Apply Dow Theories to Forex Trading
by Leo Dimilo
One of the biggest hurdles that most beginner forex traders make is not understanding the fundamentals of trading, period. Forget Forex Trading for a second and let's take a look at trading on the whole. Dow Theory is the cornerstone of technical analysis and as you are probably aware, technical analysis is one of the more important aspects of Forex Trading For Beginners.
So what can a beginner forex trader learn from Charles Dow and his theories? Since the Dow Theories are made primarily for the stock market, there are some parts that aren't as relative as others. We are going to examine the things that are....
The first theory that we can directly apply to forex trading is that the market comprises of three trends, the primary, the secondary and the minor trend.
The reason why this is important is because many beginner forex traders focus mainly on one or two time frames and these time frames typically are short term, like the 5,10 or 15 minute trades.
However, it is not enough to just look at these short time frames when trying to find an entry point to a trade. These beginner traders enter what looks like a profitable trade only to watch it whip saw against them. And the thing is, they are left wondering why.
The Primary trend is actually the most important of all the trends because it is usually develop over a period of months or years and is normally pretty easy to identify. This is the overall trend of the currency pair and should not be discounted.
The Secondary trend tends to be a little more erratic but tends to follow the primary trend. This trend typically last from a few weeks to a few months but will ultimately follow the primary trend.
The Minor trend can last for a day to a couple weeks and is typically set off by forex news or some sort of event. The minor trend can actually go against the primary trend.
The second Dow Theory we should focus on is important as it is important to undestand when making trades on any market:
The Trend Remains the Same Unless Confirmed.. In other words, you have heard that the trend is your friend, right? It applies yesterday, today and tomorrow.
The last Dow Theory that I feel is important for forex traders is Volume MUST Confirm the Trend Understanding Volumes of trades is probably one of the most neglected parts of the market yet is more important than you can imagine.
I will give an example:
A lot of times these minor trends that break support or resistance barriers return back within the original barriers after a few minutes. A lot of times, you can accurately judge whether the barrier will last according to the amounts of volume traded when it breaks as well as the amounts of volume traded after the break (in an area otherwise known as trader's remorse).
These are the three main theories that can help beginner forex traders understand how the forex market works.
by Leo Dimilo
One of the biggest hurdles that most beginner forex traders make is not understanding the fundamentals of trading, period. Forget Forex Trading for a second and let's take a look at trading on the whole. Dow Theory is the cornerstone of technical analysis and as you are probably aware, technical analysis is one of the more important aspects of Forex Trading For Beginners.
So what can a beginner forex trader learn from Charles Dow and his theories? Since the Dow Theories are made primarily for the stock market, there are some parts that aren't as relative as others. We are going to examine the things that are....
The first theory that we can directly apply to forex trading is that the market comprises of three trends, the primary, the secondary and the minor trend.
The reason why this is important is because many beginner forex traders focus mainly on one or two time frames and these time frames typically are short term, like the 5,10 or 15 minute trades.
However, it is not enough to just look at these short time frames when trying to find an entry point to a trade. These beginner traders enter what looks like a profitable trade only to watch it whip saw against them. And the thing is, they are left wondering why.
The Primary trend is actually the most important of all the trends because it is usually develop over a period of months or years and is normally pretty easy to identify. This is the overall trend of the currency pair and should not be discounted.
The Secondary trend tends to be a little more erratic but tends to follow the primary trend. This trend typically last from a few weeks to a few months but will ultimately follow the primary trend.
The Minor trend can last for a day to a couple weeks and is typically set off by forex news or some sort of event. The minor trend can actually go against the primary trend.
The second Dow Theory we should focus on is important as it is important to undestand when making trades on any market:
The Trend Remains the Same Unless Confirmed.. In other words, you have heard that the trend is your friend, right? It applies yesterday, today and tomorrow.
The last Dow Theory that I feel is important for forex traders is Volume MUST Confirm the Trend Understanding Volumes of trades is probably one of the most neglected parts of the market yet is more important than you can imagine.
I will give an example:
A lot of times these minor trends that break support or resistance barriers return back within the original barriers after a few minutes. A lot of times, you can accurately judge whether the barrier will last according to the amounts of volume traded when it breaks as well as the amounts of volume traded after the break (in an area otherwise known as trader's remorse).
These are the three main theories that can help beginner forex traders understand how the forex market works.
วันพฤหัสบดีที่ 21 กุมภาพันธ์ พ.ศ. 2551
What's HOT And NOT In Choosing A ForexTrading Software
What's HOT And NOT In Choosing A ForexTrading Software
by Han Ming
As we all know, this subject is something that we could all use a little education on no matter who you are.
There are so many new FOREX trading software in the past of recent years. So, its very hard to desire FOREX trading software that is fits for you manually. The first thing you want to know is how to use the software. When it comes to FOREX trading software, desire a software that is easy to learn and use but effectual at the same time. You dont want to spend most of your precious time to learn all the complicated functions of trading software. You want to finish your time forecasting and analyzing the currency trading.
Fortunately, some FOREX trading platform doesnt need you to download any FOREX trading software. You can trade FOREX just by ingoing your username and password and begin trading. Their websites will have all the features of great FOREX trading software. These websites let you login to your account and trade anytime, anywhere. They generally have free tools, resources and functions to help you in trading currencies at the time after you registered.
You can also use any FOREX trading software if you want to but it will take your computer space to install the software. Another thing; if you occur to change a new computer or desires to trade with another computer, you've to download the software again and this will take most of your time. Not only that, downloading software can give you danger of receiving any virus to your desktop. Some FOREX trading software even charges you for downloading the software.
We hope that the first part of this article as brought you a lot of much needed information on the subject at hand.
A good online trading platform has more functions and resources than many FOREX trading software, it is easier to use and you can use it for free. You can also get more tools like charts and EBooks that teaches you how to trade. The spread can be as low as 3 pip too.
by Han Ming
As we all know, this subject is something that we could all use a little education on no matter who you are.
There are so many new FOREX trading software in the past of recent years. So, its very hard to desire FOREX trading software that is fits for you manually. The first thing you want to know is how to use the software. When it comes to FOREX trading software, desire a software that is easy to learn and use but effectual at the same time. You dont want to spend most of your precious time to learn all the complicated functions of trading software. You want to finish your time forecasting and analyzing the currency trading.
Fortunately, some FOREX trading platform doesnt need you to download any FOREX trading software. You can trade FOREX just by ingoing your username and password and begin trading. Their websites will have all the features of great FOREX trading software. These websites let you login to your account and trade anytime, anywhere. They generally have free tools, resources and functions to help you in trading currencies at the time after you registered.
You can also use any FOREX trading software if you want to but it will take your computer space to install the software. Another thing; if you occur to change a new computer or desires to trade with another computer, you've to download the software again and this will take most of your time. Not only that, downloading software can give you danger of receiving any virus to your desktop. Some FOREX trading software even charges you for downloading the software.
We hope that the first part of this article as brought you a lot of much needed information on the subject at hand.
A good online trading platform has more functions and resources than many FOREX trading software, it is easier to use and you can use it for free. You can also get more tools like charts and EBooks that teaches you how to trade. The spread can be as low as 3 pip too.
Forex Education
Forex Education - This Advice Could Make You Rich
Here I am going to share with you a critical piece of forex education and it's something you would be wise to study, as it will lead you to currency trading success - if you learn and digest it.
I am going to cover an experiment that took place in 1983 and the experiment was done to prove that anyone could quickly learn to trade and make big forex profits.
Richard Dennis was a legendary trader, who set out to prove anyone could learn to trade, if they had the right knowledge and attitude. He decided set about trading a group of people who had never traded before, to trade in just 14 days.
So what was the result of the experiment?
The group went on to make Dennis $100 million in just 4 years and become some of the most famous traders of all time.
This group was diverse: A female auditor, an actor, a security guard and a kid fresh from school were just a few of the people in the group - yet they all achieved success in 14 days!
So what can you learn from this experiment?
The first lesson is that anyone can become a successful trader, age, sex or educational achievement are no barrier anyone can do it.
Secondly it's the speed with which they did it that struck me just 14 days and this shows that you only need to work smart not hard.
One of the most vital lessons you can learn is that the trading system taught was simple - but the vital thing Dennis knew was - if you have a trading system, you must have confidence to apply it, with discipline, otherwise you will fail.
The system was essentially a breakout system and the logic is timeless and the methodology will still work today - but takes incredible discipline to apply such a system and Dennis knew this.
So he rammed it home, that they would have take a long periods of losses to deal with, before they hit the big profitable trades and this is something you must learn to as part of your forex education.
Forex trading doesn't just rely on your system it relies on your confidence in it and your ability to apply it with discipline, through losing periods. If you think discipline is an easy trait to acquire think again - its not, that's why 95% of traders lose.
Of course you can do it but you need to do your homework and learn, understand and have confidence in what you are doing - it's as simple as that.
If you want to read more about the turtle experiment, you should read Jack Shwagers excellent book Market Wizards and "The way of the turtle" where Curtis faith (the most successful of the group) outlines everything about the experiment.
These books won't cost you much and they are really essential forex education, so go and get them. The turtle experiment inspired me to start trading many years ago and I have never regretted it and their success still inspires me today,
Finally, I hope they inspire you in your forex trading as well.
Here I am going to share with you a critical piece of forex education and it's something you would be wise to study, as it will lead you to currency trading success - if you learn and digest it.
I am going to cover an experiment that took place in 1983 and the experiment was done to prove that anyone could quickly learn to trade and make big forex profits.
Richard Dennis was a legendary trader, who set out to prove anyone could learn to trade, if they had the right knowledge and attitude. He decided set about trading a group of people who had never traded before, to trade in just 14 days.
So what was the result of the experiment?
The group went on to make Dennis $100 million in just 4 years and become some of the most famous traders of all time.
This group was diverse: A female auditor, an actor, a security guard and a kid fresh from school were just a few of the people in the group - yet they all achieved success in 14 days!
So what can you learn from this experiment?
The first lesson is that anyone can become a successful trader, age, sex or educational achievement are no barrier anyone can do it.
Secondly it's the speed with which they did it that struck me just 14 days and this shows that you only need to work smart not hard.
One of the most vital lessons you can learn is that the trading system taught was simple - but the vital thing Dennis knew was - if you have a trading system, you must have confidence to apply it, with discipline, otherwise you will fail.
The system was essentially a breakout system and the logic is timeless and the methodology will still work today - but takes incredible discipline to apply such a system and Dennis knew this.
So he rammed it home, that they would have take a long periods of losses to deal with, before they hit the big profitable trades and this is something you must learn to as part of your forex education.
Forex trading doesn't just rely on your system it relies on your confidence in it and your ability to apply it with discipline, through losing periods. If you think discipline is an easy trait to acquire think again - its not, that's why 95% of traders lose.
Of course you can do it but you need to do your homework and learn, understand and have confidence in what you are doing - it's as simple as that.
If you want to read more about the turtle experiment, you should read Jack Shwagers excellent book Market Wizards and "The way of the turtle" where Curtis faith (the most successful of the group) outlines everything about the experiment.
These books won't cost you much and they are really essential forex education, so go and get them. The turtle experiment inspired me to start trading many years ago and I have never regretted it and their success still inspires me today,
Finally, I hope they inspire you in your forex trading as well.
วันอังคารที่ 19 กุมภาพันธ์ พ.ศ. 2551
Forex Training Course: Currency Trading Can Be Fun And Profitable
Forex Training Course: Currency Trading Can Be Fun And Profitable
by Star Smith
Online forex trading is one of the hottest investment opportunities around simply due to the fact that it's a market where people can get very rich in a short amount of time. While standard exchanges (like the New York Stock Market) are open for specific periods of time, the global forex exchange is hopping with activity around the clock.
This makes trading available to most people who have to work a full-time job and juggle other responsibilities. Trades can be made at the crack of dawn, during lunch and even in the midnight hour. How's that for flexibility?
Foreign currency exchange trading has attracted this kind of buzz, because of all those stories making the rounds about people literally becoming wealthy after making a few lucky trades. I mean, the thought of having thousands of dollars flooding into your bank account is enough to make anybody giddy.
Can the average person really make this kind of money in forex?
Sure, you can absolutely make a bundle.
You can do this by learning how to study the currency market and pick out winners. However, you won't make a dime without some serious study on how this market works, or before getting lots of practice in making trades.
Was that a buzz kill?
Hope not. I'm just splashing a little cold water in your face to keep you from getting overly excited. Listen, the truth is that online forex trading can be compared to gambling in Vegas. Picture having that cash just burning in your hot little hands. You're sitting at your computer admiring all those graphs and charts for various currencies: dollar, yen, euro, etc.
Even though you just recently learned what forex is, you're practically jumping out of your chair looking to make a trade on that hot tip you got from a forex insider. Yeah, that money is just burning in your pocket, and you figure the rent and bills can wait for now, because you've got a sure winner - you're gonna make big moolah!
Okay, this is where excited new traders bet the rent money and then . . . lose every single penny.
Ouch. That's gotta hurt.
Meanwhile, experienced traders are happily counting the profits they made on that hot tip. The new traders are big losers because they didn't take the time to learn how to make wise trades in this very complex market. Yes, forex is exciting, but you can easily lose your life savings with too many bad trades.
A common mistake that many newbies make is that they invest for emotional reasons - fun, excitement, greed, desperation or even revenge. One thing you need to learn right now before you go any further is that you should NEVER make one single trade based on pure emotion. If you do, you might as well be sitting at the slot machine, endlessly popping in money, hoping that you'll hit that elusive jackpot.
The best traders are cool as a cucumber when making decisions on what to put their money on.
So, of course, forex online trading is going to be very profitable for those who learn how to study the market and make smart and informed decisions based on good analysis and judgment. This will get you a lot further than throwing good money away on a hunch. You also need to use common sense. There are plenty of stories about people who have lost their life savings because they made bad decisions and bad trades.
Most successful forex traders risk no more than 2-3% of their trading account - even on a good tip. You see the way to get rich in forex is to learn how to make good trades, learn when to get out and take your profits, then use those profits to make more trades, and so on and so on. This way, you are building wealth the smart way and you won't be gambling with money you need for rent, food and expenses.
Aha!
That's how they do it. A good forex training course will teach you how to make successful trades the slow and easy way. The learning curve is steep in currency trading and you don't need to rush. In fact, it's highly recommended that you use a demo trading account while you are learning forex so that you can see exactly what you are doing right when you make money, as well as, what you are doing wrong when you lose money - without risking a dime.
This learning experience will be invaluable to you, because when you do start using real money to make trades, you'll know what you're doing and will have a cool head and steady hand. If you choose to follow the example of the 10% of successful forex investors, you will soon find yourself basking in the glow of a new lifestyle.
by Star Smith
Online forex trading is one of the hottest investment opportunities around simply due to the fact that it's a market where people can get very rich in a short amount of time. While standard exchanges (like the New York Stock Market) are open for specific periods of time, the global forex exchange is hopping with activity around the clock.
This makes trading available to most people who have to work a full-time job and juggle other responsibilities. Trades can be made at the crack of dawn, during lunch and even in the midnight hour. How's that for flexibility?
Foreign currency exchange trading has attracted this kind of buzz, because of all those stories making the rounds about people literally becoming wealthy after making a few lucky trades. I mean, the thought of having thousands of dollars flooding into your bank account is enough to make anybody giddy.
Can the average person really make this kind of money in forex?
Sure, you can absolutely make a bundle.
You can do this by learning how to study the currency market and pick out winners. However, you won't make a dime without some serious study on how this market works, or before getting lots of practice in making trades.
Was that a buzz kill?
Hope not. I'm just splashing a little cold water in your face to keep you from getting overly excited. Listen, the truth is that online forex trading can be compared to gambling in Vegas. Picture having that cash just burning in your hot little hands. You're sitting at your computer admiring all those graphs and charts for various currencies: dollar, yen, euro, etc.
Even though you just recently learned what forex is, you're practically jumping out of your chair looking to make a trade on that hot tip you got from a forex insider. Yeah, that money is just burning in your pocket, and you figure the rent and bills can wait for now, because you've got a sure winner - you're gonna make big moolah!
Okay, this is where excited new traders bet the rent money and then . . . lose every single penny.
Ouch. That's gotta hurt.
Meanwhile, experienced traders are happily counting the profits they made on that hot tip. The new traders are big losers because they didn't take the time to learn how to make wise trades in this very complex market. Yes, forex is exciting, but you can easily lose your life savings with too many bad trades.
A common mistake that many newbies make is that they invest for emotional reasons - fun, excitement, greed, desperation or even revenge. One thing you need to learn right now before you go any further is that you should NEVER make one single trade based on pure emotion. If you do, you might as well be sitting at the slot machine, endlessly popping in money, hoping that you'll hit that elusive jackpot.
The best traders are cool as a cucumber when making decisions on what to put their money on.
So, of course, forex online trading is going to be very profitable for those who learn how to study the market and make smart and informed decisions based on good analysis and judgment. This will get you a lot further than throwing good money away on a hunch. You also need to use common sense. There are plenty of stories about people who have lost their life savings because they made bad decisions and bad trades.
Most successful forex traders risk no more than 2-3% of their trading account - even on a good tip. You see the way to get rich in forex is to learn how to make good trades, learn when to get out and take your profits, then use those profits to make more trades, and so on and so on. This way, you are building wealth the smart way and you won't be gambling with money you need for rent, food and expenses.
Aha!
That's how they do it. A good forex training course will teach you how to make successful trades the slow and easy way. The learning curve is steep in currency trading and you don't need to rush. In fact, it's highly recommended that you use a demo trading account while you are learning forex so that you can see exactly what you are doing right when you make money, as well as, what you are doing wrong when you lose money - without risking a dime.
This learning experience will be invaluable to you, because when you do start using real money to make trades, you'll know what you're doing and will have a cool head and steady hand. If you choose to follow the example of the 10% of successful forex investors, you will soon find yourself basking in the glow of a new lifestyle.
Forex Killer review. Forex Killer is not scam.
Forex Killer review. Forex Killer is not scam.
by Marlon Jobs
I am one of those people who purchased Forex Killer and decided to write a few words about it. I hope you will enjoy my review.
I have been trading Forex for nearly 13 months. I can't say that I am really good at it because in total I lost something about 10k.
I was one of those who found out about Forex last year and started trading with no preparation.
I just opened an account and I was losing money on a regular basis. I didn't know anything about stop loss an take profit options.
I was an absolute newbie.
Then I found out about Forex Killer software. I was skeptic from the beginning but I wanted to try something new and I finally decided to purchase it.
There was many internet reviews around on Forex Killer.
I remember specific one that helped me decide to make up my mind. It was forexkiller.wordpress.com
And now something about my results with Forex Killer.
I have made 78 pips in my first week, 121 in second week.
Now I am in third week and I have already make 134 pips.
So my opinion is that Forex Killer is not scam
I would recommend it to anybody who wants to make money on Forex. It is as easy as it is described on Forex Killer website.
by Marlon Jobs
I am one of those people who purchased Forex Killer and decided to write a few words about it. I hope you will enjoy my review.
I have been trading Forex for nearly 13 months. I can't say that I am really good at it because in total I lost something about 10k.
I was one of those who found out about Forex last year and started trading with no preparation.
I just opened an account and I was losing money on a regular basis. I didn't know anything about stop loss an take profit options.
I was an absolute newbie.
Then I found out about Forex Killer software. I was skeptic from the beginning but I wanted to try something new and I finally decided to purchase it.
There was many internet reviews around on Forex Killer.
I remember specific one that helped me decide to make up my mind. It was forexkiller.wordpress.com
And now something about my results with Forex Killer.
I have made 78 pips in my first week, 121 in second week.
Now I am in third week and I have already make 134 pips.
So my opinion is that Forex Killer is not scam
I would recommend it to anybody who wants to make money on Forex. It is as easy as it is described on Forex Killer website.
Trading the Forex Market
Trading the Forex Market
by Alan Johnson
It's been said that between 90% and 95% of all Forex traders lose while only 5% to 10% win. Most people think that winning traders are winning traders because they have come up with a winning Forex trading system. Although a winning trading plan is important it is certainly NOT why some traders win. It's possible to have a losing trading system and still win money as long as the trades are managed properly. It's possible to lose 3 out of every 4 trades and still win money consistently by keeping the losses small and allowing the winners to get big.
You might be surprised when I tell you that a winning Forex strategy is really not that difficult to come up with, and that in actuality there are many winning trading systems. And if what I say is true, that it's easy to come up with a winning trading plan, then why do 90% or more of the traders lose? Two words: mental weakness.
Even after you find a winning system you still have to trade it and that's where it can get tough. If you could enter a trade and then have the market immediately move a large amount in your favor trading the forex would be easy. But it doesn't work that way.
The typical inexperienced trader will get stopped out on the losing trades, taking a loss, and then exit too early on the winning trades, not getting the full possible profit. The key to winning consistently in the Forex market is to come up with a winning trading system and follow it, no matter how difficult it is. A winning trader with a winning trading plan knows that he will win 2 out of every 3 trades, or 3 out of every 4 trades, or 4 out of every 5 trades, but he sticks with his plan all the way on every trade, win or lose. He may have 3 losing trades in a row, but on the 4th trade he continues to follow the plan exactly. He doesn't deviate from the plan because he's had a bad streak. He doesn't exit a trade until his plan tells him to.
Sticking with a predetermined plan, and not deviating from it, is the key to successful trading. Some traders can win 3 out of every 4 trades and still end up losing money. Why? Because they exit winning trades too early, turning potential big winners into small winners or even losses. The only way to become a successful trader is to let ALL of the trades play out according to a successful predetermined plan.
Another important element of trading is money management. Improper money management is without a doubt the biggest reason traders lose. If a trader has too much money at risk on any one trade they will have a much greater tendency to exit trades too early. It's very important that you know how much money to risk on any one trade, how to manage the trade, how to protect your profits, and how to exit a trade. These elements must be learned if you want to become a winning trader. Learning these important rules can help you become a successful trader.
by Alan Johnson
It's been said that between 90% and 95% of all Forex traders lose while only 5% to 10% win. Most people think that winning traders are winning traders because they have come up with a winning Forex trading system. Although a winning trading plan is important it is certainly NOT why some traders win. It's possible to have a losing trading system and still win money as long as the trades are managed properly. It's possible to lose 3 out of every 4 trades and still win money consistently by keeping the losses small and allowing the winners to get big.
You might be surprised when I tell you that a winning Forex strategy is really not that difficult to come up with, and that in actuality there are many winning trading systems. And if what I say is true, that it's easy to come up with a winning trading plan, then why do 90% or more of the traders lose? Two words: mental weakness.
Even after you find a winning system you still have to trade it and that's where it can get tough. If you could enter a trade and then have the market immediately move a large amount in your favor trading the forex would be easy. But it doesn't work that way.
The typical inexperienced trader will get stopped out on the losing trades, taking a loss, and then exit too early on the winning trades, not getting the full possible profit. The key to winning consistently in the Forex market is to come up with a winning trading system and follow it, no matter how difficult it is. A winning trader with a winning trading plan knows that he will win 2 out of every 3 trades, or 3 out of every 4 trades, or 4 out of every 5 trades, but he sticks with his plan all the way on every trade, win or lose. He may have 3 losing trades in a row, but on the 4th trade he continues to follow the plan exactly. He doesn't deviate from the plan because he's had a bad streak. He doesn't exit a trade until his plan tells him to.
Sticking with a predetermined plan, and not deviating from it, is the key to successful trading. Some traders can win 3 out of every 4 trades and still end up losing money. Why? Because they exit winning trades too early, turning potential big winners into small winners or even losses. The only way to become a successful trader is to let ALL of the trades play out according to a successful predetermined plan.
Another important element of trading is money management. Improper money management is without a doubt the biggest reason traders lose. If a trader has too much money at risk on any one trade they will have a much greater tendency to exit trades too early. It's very important that you know how much money to risk on any one trade, how to manage the trade, how to protect your profits, and how to exit a trade. These elements must be learned if you want to become a winning trader. Learning these important rules can help you become a successful trader.
Why The Rich Have Forex Trading Success
Why The Rich Have Forex Trading Success
by Jimmy MacDonald
Having forex trading success is much easier than many people think. The rich and successful traders don't have some secret phone number they call to know when and where the EURO is going to be in the next 24 hours.
It doesn't take mass amounts of intelligence to be a successful forex trader. You don't have to be some Harvard graduate with a doctorate in finance or economics. As a matter of fact, many of the most successful traders out there aren't the brightest bulb in the Christmas tree.
But they do have something that separates them with the 98% of forex traders who fail: They can see the market as a genuine entity. Its not a bunch of colored pixels on a computer screen to them. To them, it represents energy.
When an average trader looks at a chart, chances are it is covered with a bunch of different indicators. It'll have moving averages, RSI, stochastics, and every other irrelevant indicator. Wipe that off the screen! There is no indicator that is stronger than your eyes. Your eyes don't lie. All they have to do is relay the information to your brain.
When you see a chart on a currency notice how it goes up and down. REALLY study it. Don't force yourself into seeing something thats not there. Just look at it from a natural, curious state. The chart will start speaking to you. You'll start to notice that markets have energy. All of these traders buying and selling billions of dollars everyday will be shown on that screen.
A simple bar chart shows all of this. The market has signs of strength and weakness every second of the day and if you know what you're looking for, it starts to become painfully obvious. Give it a try next time you've got your charting software up.
by Jimmy MacDonald
Having forex trading success is much easier than many people think. The rich and successful traders don't have some secret phone number they call to know when and where the EURO is going to be in the next 24 hours.
It doesn't take mass amounts of intelligence to be a successful forex trader. You don't have to be some Harvard graduate with a doctorate in finance or economics. As a matter of fact, many of the most successful traders out there aren't the brightest bulb in the Christmas tree.
But they do have something that separates them with the 98% of forex traders who fail: They can see the market as a genuine entity. Its not a bunch of colored pixels on a computer screen to them. To them, it represents energy.
When an average trader looks at a chart, chances are it is covered with a bunch of different indicators. It'll have moving averages, RSI, stochastics, and every other irrelevant indicator. Wipe that off the screen! There is no indicator that is stronger than your eyes. Your eyes don't lie. All they have to do is relay the information to your brain.
When you see a chart on a currency notice how it goes up and down. REALLY study it. Don't force yourself into seeing something thats not there. Just look at it from a natural, curious state. The chart will start speaking to you. You'll start to notice that markets have energy. All of these traders buying and selling billions of dollars everyday will be shown on that screen.
A simple bar chart shows all of this. The market has signs of strength and weakness every second of the day and if you know what you're looking for, it starts to become painfully obvious. Give it a try next time you've got your charting software up.
วันอาทิตย์ที่ 17 กุมภาพันธ์ พ.ศ. 2551
This Forex Tips Could Be Worth Its Weight In Gold or more
This Forex Tips Could Be Worth Its Weight In Gold or more!
by Scott Fromherz
There is no fixed forex forum for the Forex (the foreign exchange) but before you get started trading on the Forex you should try to find a trusted Forex trading forum that includes a number of online traders who can share successful trading strategies with you.
Getting into Forex trading without forex forum tips can be a rocky road. We have gone out to various forums and written down some starter tips for you. Here are three strategies on Forex trading that are recommended by a forex forum online trader and which you should address:
First forex forum tip: know your forex trading market
Educate yourself about the currencies that you trade. The more you know about the country whose currency you're trading in the Forex market, the more accurately you'll be able to predict which way the money will move.
Second forex forum tip: pick a Forex trading system - and stick with it.
Savvy Forex traders will tell you that system is everything. Forex trading by system lets you automate your trades based on history, following the traditional peaks and valleys. Set up a system and live with it to make the most of your Forex trading.
Third forex forum online tip: practice makes perfect - but it's not the real world.
Practice Forex trading accounts are great for learning how a particular trading account works - but they're not the real world. Many experienced traders recommend starting off with a mini forex account to minimize your losses while you get acclimated.
The forex forum is meant to be the place where traders from around the globe can relay information and ideas. Their purpose is to generate trading strategies.
Here are some other things you should know about most forex forums:
*To protect the privacy of participants on a forex forum, posting email addresses is usually not permitted.
*There is usually an intermediary company that passes messages between contributors.
*Profanity or disruptive behavior on the forums is also not permitted.
*Personal attacks on individual participants are not permitted.
*Readers of a forex forum are encouraged to respect the ideas of those who have been kind enough to contribute to the forum and treat one another with civility and respect.
by Scott Fromherz
There is no fixed forex forum for the Forex (the foreign exchange) but before you get started trading on the Forex you should try to find a trusted Forex trading forum that includes a number of online traders who can share successful trading strategies with you.
Getting into Forex trading without forex forum tips can be a rocky road. We have gone out to various forums and written down some starter tips for you. Here are three strategies on Forex trading that are recommended by a forex forum online trader and which you should address:
First forex forum tip: know your forex trading market
Educate yourself about the currencies that you trade. The more you know about the country whose currency you're trading in the Forex market, the more accurately you'll be able to predict which way the money will move.
Second forex forum tip: pick a Forex trading system - and stick with it.
Savvy Forex traders will tell you that system is everything. Forex trading by system lets you automate your trades based on history, following the traditional peaks and valleys. Set up a system and live with it to make the most of your Forex trading.
Third forex forum online tip: practice makes perfect - but it's not the real world.
Practice Forex trading accounts are great for learning how a particular trading account works - but they're not the real world. Many experienced traders recommend starting off with a mini forex account to minimize your losses while you get acclimated.
The forex forum is meant to be the place where traders from around the globe can relay information and ideas. Their purpose is to generate trading strategies.
Here are some other things you should know about most forex forums:
*To protect the privacy of participants on a forex forum, posting email addresses is usually not permitted.
*There is usually an intermediary company that passes messages between contributors.
*Profanity or disruptive behavior on the forums is also not permitted.
*Personal attacks on individual participants are not permitted.
*Readers of a forex forum are encouraged to respect the ideas of those who have been kind enough to contribute to the forum and treat one another with civility and respect.
Real Money Making Fact in FOREX
Real Money Making Fact in FOREX
When you open your FOREX browser, you will soon know that you will have exactly two choices: Open a position NOW or open a position LATER.
Open a position NOW choice will again create three possibilities for you: PLUS, MINUS, and UNDETERMINED. Of course each of these three possibilities will yield another two possibilities, which is either you hold the position or close the position.
Open a position LATER choice will mostly yield two possibilities: Look around for more clues and open a position NOW. There could be the third possibilities which usually insignificant and related closely to the looking around for more clues jobs.
Now, there will be a lot of person and so called super FOREX expert will tell you that opening a position LATER is always the best choice. But too bad while it is not 100% wrong, it is not even 51% true.
Opening a position NOW or LATER will always give you 20% chance that you will make money during your FOREX browsing time; 20% chance that you will loose money during your FOREX browsing time; 10% chance that you will hold a position with no clear result until you stop your FOREX browsing time; 25% chance that you do nothing; the rest of 25% will consists of everything else that is actually has the close meaning of "looking around for more more more clues", such as asking around whether or not you open a position today, etc.
Still do not get it? Okay, let's try to be simpler: Whatever you are, before you read about this article, there is actually 60% chance that you do not make money at all when you open your FOREX browser. If we are going to include the chance that you will loose your money, there is actually 80% chance that you would rather not looking at your FOREX browser at all than loosing your money or making no money at all!
Now the question stays: What should you do then? Of course we would not tell you to just quit FOREX. In fact, most (90%+) business owners face the same trouble like you, when they open their business the chance to loose money is always bigger than the chance to make money; that's why a lot of people in the world choose to work with someone rather than making their own business.
While the basically the chance of to loose money in other business and FOREX are basically the same, the way to reduce it is actually pretty different! Make sure you keep your eyes on http://4xu.net for all of the unique (yet controversial) answers to solve this problem!
When you open your FOREX browser, you will soon know that you will have exactly two choices: Open a position NOW or open a position LATER.
Open a position NOW choice will again create three possibilities for you: PLUS, MINUS, and UNDETERMINED. Of course each of these three possibilities will yield another two possibilities, which is either you hold the position or close the position.
Open a position LATER choice will mostly yield two possibilities: Look around for more clues and open a position NOW. There could be the third possibilities which usually insignificant and related closely to the looking around for more clues jobs.
Now, there will be a lot of person and so called super FOREX expert will tell you that opening a position LATER is always the best choice. But too bad while it is not 100% wrong, it is not even 51% true.
Opening a position NOW or LATER will always give you 20% chance that you will make money during your FOREX browsing time; 20% chance that you will loose money during your FOREX browsing time; 10% chance that you will hold a position with no clear result until you stop your FOREX browsing time; 25% chance that you do nothing; the rest of 25% will consists of everything else that is actually has the close meaning of "looking around for more more more clues", such as asking around whether or not you open a position today, etc.
Still do not get it? Okay, let's try to be simpler: Whatever you are, before you read about this article, there is actually 60% chance that you do not make money at all when you open your FOREX browser. If we are going to include the chance that you will loose your money, there is actually 80% chance that you would rather not looking at your FOREX browser at all than loosing your money or making no money at all!
Now the question stays: What should you do then? Of course we would not tell you to just quit FOREX. In fact, most (90%+) business owners face the same trouble like you, when they open their business the chance to loose money is always bigger than the chance to make money; that's why a lot of people in the world choose to work with someone rather than making their own business.
While the basically the chance of to loose money in other business and FOREX are basically the same, the way to reduce it is actually pretty different! Make sure you keep your eyes on http://4xu.net for all of the unique (yet controversial) answers to solve this problem!
Forex Trading System Training Strategies
Forex Trading System Training Strategies
by Gregory DeVictor
The foreign exchange market, or Forex market, is an around-the-clock cash market where the currencies of nations are bought and sold. Forex trading is always done in currency pairs. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. The value of your Forex investment increases or decreases because of changes in the currency exchange rate or Forex rate. These changes can occur at any time, and often result from economic and political events. The purpose of this article is to discuss various Forex trading system strategies.
Neutralize Susceptibility: According to Mark Douglas, If a trader hasn't neutralized his susceptibility to give his winnings back to the market, then he is not what I define as a successful trader.
Correct Market Attitudes: According to Howard Abell, True Trading Mastery derives from understanding the relatively small role technical analytical factors play in the overall trading process and the inestimatably important role that correct market attitudes and beliefs exert in facilitating a consistently profitable result.
The Farmer's Shadow: According to Bob Koppel, True Trading Mastery derives from understanding the relatively small role technical analytical factors play in the overall trading process and the inestimatably important role that correct market attitudes and beliefs exert in facilitating a consistently profitable result.
Transaction Costs: According to Van K. Tharp, I seldom see a system that over a number of years produces profits that are much bigger than the transaction costs it generates - that is, if a system generates a million dollars in net profits, then it probably generates more than a million dollars in transaction costs.
Do Not Overlook Information: According to Van K. Tharp, We typically trade our beliefs about the market and once we've made up our minds about those beliefs, we're not likely to change them. And when we play the markets, we assume that we are considering all of the available information. Instead, our beliefs, through selective perception, may have eliminated the most useful information.
Understand the Concept: According to Tom Basso, The more you understand the concept you are trading, how it might behave under all sorts of market conditions, the less historical testing you need to do.
Losses: According to William O'Neil, My philosophy is that all stocks are bad. There are no good stocks unless they go up in price. If they go down instead, you have to cut your losses fast. Letting losses run is the most serious mistake made by most investors.
Deal with Randomness: According to Larry Sanders, As humans we do not come equipped to deal with the variety of randomness that is around us every day. Many professions deal with making processes and things work reliably. We are taught to strive for perfection, for high scores in school and in sports. This can be a handicap to traders. There is no perfection in trading. Instead traders must put probability in their favor.
Trading Paradox: According to Mark Douglas, I know it may sound strange to many readers, but there is an inverse relationship between analysis and trading results. More analysis or being able to make distinctions in the market's behavior will not produce better trading results. There are many traders who find themselves caught in this exasperating loop, thinking that more or better analysis is going to give them the confidence they need to do what needs to be done to achieve success. It's what I call a trading paradox that most traders find difficult, if not impossible to reconcile, until they realise you can't use analysis to overcome fear of being wrong or losing money. It just doesn't work!
Trading Forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
by Gregory DeVictor
The foreign exchange market, or Forex market, is an around-the-clock cash market where the currencies of nations are bought and sold. Forex trading is always done in currency pairs. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. The value of your Forex investment increases or decreases because of changes in the currency exchange rate or Forex rate. These changes can occur at any time, and often result from economic and political events. The purpose of this article is to discuss various Forex trading system strategies.
Neutralize Susceptibility: According to Mark Douglas, If a trader hasn't neutralized his susceptibility to give his winnings back to the market, then he is not what I define as a successful trader.
Correct Market Attitudes: According to Howard Abell, True Trading Mastery derives from understanding the relatively small role technical analytical factors play in the overall trading process and the inestimatably important role that correct market attitudes and beliefs exert in facilitating a consistently profitable result.
The Farmer's Shadow: According to Bob Koppel, True Trading Mastery derives from understanding the relatively small role technical analytical factors play in the overall trading process and the inestimatably important role that correct market attitudes and beliefs exert in facilitating a consistently profitable result.
Transaction Costs: According to Van K. Tharp, I seldom see a system that over a number of years produces profits that are much bigger than the transaction costs it generates - that is, if a system generates a million dollars in net profits, then it probably generates more than a million dollars in transaction costs.
Do Not Overlook Information: According to Van K. Tharp, We typically trade our beliefs about the market and once we've made up our minds about those beliefs, we're not likely to change them. And when we play the markets, we assume that we are considering all of the available information. Instead, our beliefs, through selective perception, may have eliminated the most useful information.
Understand the Concept: According to Tom Basso, The more you understand the concept you are trading, how it might behave under all sorts of market conditions, the less historical testing you need to do.
Losses: According to William O'Neil, My philosophy is that all stocks are bad. There are no good stocks unless they go up in price. If they go down instead, you have to cut your losses fast. Letting losses run is the most serious mistake made by most investors.
Deal with Randomness: According to Larry Sanders, As humans we do not come equipped to deal with the variety of randomness that is around us every day. Many professions deal with making processes and things work reliably. We are taught to strive for perfection, for high scores in school and in sports. This can be a handicap to traders. There is no perfection in trading. Instead traders must put probability in their favor.
Trading Paradox: According to Mark Douglas, I know it may sound strange to many readers, but there is an inverse relationship between analysis and trading results. More analysis or being able to make distinctions in the market's behavior will not produce better trading results. There are many traders who find themselves caught in this exasperating loop, thinking that more or better analysis is going to give them the confidence they need to do what needs to be done to achieve success. It's what I call a trading paradox that most traders find difficult, if not impossible to reconcile, until they realise you can't use analysis to overcome fear of being wrong or losing money. It just doesn't work!
Trading Forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
วันอาทิตย์ที่ 10 กุมภาพันธ์ พ.ศ. 2551
Forex Traders - What's Your Timeframe?
Forex Traders - What's Your Timeframe?
by Harold Hsu
Have you ever asked yourself what kind of trader you want to be? If you haven't, it's important that you take your time to decide which timeframe you're most comfortable with trading in. Yes: the timeframe you like to trade in will determine the type of trader you'll be. Here are 4 of the most popular types of traders: scalper, day trader, swing trader or position trader. Let's go into a little more detail about them in this article.
Are You A Scalper?
Scalpers trade in very short time frames using minute charts and sometimes hourly charts. They look for small profits of about 5 to 15 pips in each trade that they take. As such, scalpers typically enter into more than one or two trades a day. They are constantly entering and exiting their trade positions in search of every small opportunity for a profit. A scalping trade can be over in as short as 20 minutes.
Are You A Day Trader?
Like scalpers, day traders typically use minute and hourly charts to trade with. Also similarly with scalpers, day traders don't hold any of their trade positions overnight. They always exit their trades by the end of each trading day.
However unlike scalpers, day traders usually hold their trade positions for at least few hours. As a result, their gains and losses are also larger than that of scalpers per trade.
Are You A Swing Trader?
Swing traders trade in intermediate timeframes that can last from a few days to a few weeks. They look to ride along an entire up- or down-swing in order to profit the most out of each major price fluctuation wave. As you can guess, they normally use hourly, daily and weekly charts to trade with.
Are You A Position Trader?
Position traders usually hold their positions for more than two weeks, and are typically fundamental traders. They aren't too interested in the everyday price fluctuations of the market, and prefer to look at the big picture of where a currency pair might be headed. They use mostly daily, weekly and monthly charts.
by Harold Hsu
Have you ever asked yourself what kind of trader you want to be? If you haven't, it's important that you take your time to decide which timeframe you're most comfortable with trading in. Yes: the timeframe you like to trade in will determine the type of trader you'll be. Here are 4 of the most popular types of traders: scalper, day trader, swing trader or position trader. Let's go into a little more detail about them in this article.
Are You A Scalper?
Scalpers trade in very short time frames using minute charts and sometimes hourly charts. They look for small profits of about 5 to 15 pips in each trade that they take. As such, scalpers typically enter into more than one or two trades a day. They are constantly entering and exiting their trade positions in search of every small opportunity for a profit. A scalping trade can be over in as short as 20 minutes.
Are You A Day Trader?
Like scalpers, day traders typically use minute and hourly charts to trade with. Also similarly with scalpers, day traders don't hold any of their trade positions overnight. They always exit their trades by the end of each trading day.
However unlike scalpers, day traders usually hold their trade positions for at least few hours. As a result, their gains and losses are also larger than that of scalpers per trade.
Are You A Swing Trader?
Swing traders trade in intermediate timeframes that can last from a few days to a few weeks. They look to ride along an entire up- or down-swing in order to profit the most out of each major price fluctuation wave. As you can guess, they normally use hourly, daily and weekly charts to trade with.
Are You A Position Trader?
Position traders usually hold their positions for more than two weeks, and are typically fundamental traders. They aren't too interested in the everyday price fluctuations of the market, and prefer to look at the big picture of where a currency pair might be headed. They use mostly daily, weekly and monthly charts.
วันเสาร์ที่ 9 กุมภาพันธ์ พ.ศ. 2551
Killer Forex Strategy: Three Ways to Profit From the Forex Markets
Killer Forex Strategy: Three Ways to Profit From the Forex Markets
by Rob Best
Can you imagine having a killer forex strategy that allows you to extract cash from the biggest market in the world at any time you choose, day or night? You could trade at any time, and from anywhere. You could be sitting trading currency in Dubai or in Denver, making forex profits in the Maldives or in Malta - all with a few clicks of your mouse!
Sadly, for most people, it's really not that easy.
Here's a frightening fact: nearly 50% of foreign exchange traders lose money to the point where they have to stop trading altogether, and go and do something less risky instead.
If you're trading currencies right now, or you're thinking about starting, then you have a 1-in-2 chance of losing your trading pot.
They're not very good odds, are they?
I've been trading currencies for over twenty years, on and off, and mostly without great success. When I heard that nearly half of all traders lose their money in the forex markets, I seriously considered giving up myself!
The one thing that kept me going through the dark days was knowing that the foreign exchange trading software, now available to the individual trader for a modest investment, or even for no investment at all, are all much better than the software that professional City forex firms were paying many thousands a year for only a decade ago.
I reckoned that the quality of the trading software tools available to us would continue to go up over time, and prices would continue to come down. And one day, we'd have access to some of the best foreign exchange software at silly prices!
I believe that day has now dawned.
As 'amateur' forex traders, we now have the choice of three directions to take that will allow us to play with the "Big Boys" - and win.
Option 1 - Pay For Trade Signals There are plenty of companies and 'expert' individuals out there who will deliver trade signals to you by phone, SMS or email. I've used a couple of them myself, and they can be pretty good.
Just so we're all clear, trade signals basically come from the market. They are either fundamental (good farm payroll numbers, an interest rate change and so on) or they are technical, from patterns forming on the charts, or a combination of the two.
There are literally hundreds of different signals to choose from, and a service should pass on to you only those they think have the highest probability of creating a profit. By the time you get a trade signal, though, it will simply tell you the currency pair, whether it's a Buy or a Sell, and some idea of stop-loss and profit-take levels.
The problem in this system lies in the information being delivered at the right time, and you being on hand to act upon it. The other problem is cost - some of the better ones will charge you several hundred dollars a month for their service. Of course, this adds to the pressure on your trading account, as you have to make the cost of the FX signal service back before you start to make any money for yourself.
Option 2 - A Managed Forex Account Here, you hand over your trading capital to a professional forex trading company who will trade for you in the markets.
There are several advantages to this route... * You are hiring a team of full-time professionals to trade on your behalf * No matter how good your trading software might be, theirs will be even better! * You need spend no time at all staring at screens and analysing charts * If you find a good team, it can work out very profitable for you.
However, there are fees to be taken into consideration. Generally, you will be charged a yearly management fee of between 1% and 3% of your trading capital, and a performance fee (usually charged quarterly) of between 10% and 35% of any profit made.
(If the performance fee seems high to you, think of it this way. Your team of foreign currency traders are trading currencies for a living, and you are benefiting from their expertise. Plus, if they charge you 25% of profits, you're still getting 75% of a sum that would not otherwise have been made. And, last but not least, a performance fee will motivate the team to do well for you - and that's what you want!)
The downside, for me at least, is the lack of control. I get a real buzz from trading, and I don't want to lose that by handing over my trading capital to a professional team.
You'll also need at least $10,000, probably nearer $50,000, in order to get started with a managed account.
Option 3 - Generate Your Own Trade Signals Years ago, this meant pouring over yesterday's paper charts (for which you had to pay a small fortune to get!) with pencil, ruler, and a stack of charts going back several months.
Nowadays, all that can be done with a good paid charting service such as eSignal, or even for free with BigCharts.
However, it still takes time, and you still need to know what you're looking for, and it takes further time to build up a skill and an affinity with charts before you start making consistent, profitable trades. (And that's if you're in the lucky 50% of traders!)
Recently, a new solution came onto the market that takes away the potentially expensive learning curve, and all this time-consuming analysis, and basically does it all for you.
This is the option I like! Here's how it works.
Step 1 - you simply download a piece of stand-alone software. This is what will generate the trade signals for you.
Step 2 - you feed it the latest data from the market you want to trade. All you need to do is take data from your online trading platform (and it doesn't matter which one you use) and feed it into the software.
Step 3 - if it brings back a trade signal, you trade it (or 'paper trade' it if you want to test it first)
Step 4 - your profit-taking limit is hit, and you bank the profits!
Does this sound a bit too good to be true? Well, let me give you a bit of background.
First off, the guy behind this incredible trade signal generator is a very successful trader in his own right, who used to work for a major international bank, and who now makes thousands of dollars a day using this self-same software. This trading tool was developed with the help of a mathematics professor and a behavioral psychologist.
Second, last year he took $100,000 and turned it into $641,147 in just two months, using his forex trade signal generator! Don't see this as typical, of course, but it serves as a fine demonstration of what is possible using these trading signals.
Happily, you don't need $100,000 to get started! You can open a forex trading account with as little as $500 but, realistically, you'd want to start with between $2,000 and $5,000 of trading capital.
You also don't need experience. The software is easy to use for anyone from a complete novice to a seasoned trader. It comes with full support, an accompanying manual, plus a lifetime of free upgrades, as and when they happen.
Any one of these three methods, or indeed a combination of two or more of them, should significantly boost your forex profits. The quality of paid-for signals varies enormously, depending on the skills and abilities of the person or group supplying them. If you get a good management team in place, they should be looking to deliver around 5% per MONTH on your money (though you must understand the accompanying risks, too).
Using the software in Option 3 - well, you've seen the results the creator had over a 2-month period. No one can guarantee you'll see the same, of course, but it is an extremely fine track record! If you were able to get results that are even half as good, wouldn't you be delighted?
by Rob Best
Can you imagine having a killer forex strategy that allows you to extract cash from the biggest market in the world at any time you choose, day or night? You could trade at any time, and from anywhere. You could be sitting trading currency in Dubai or in Denver, making forex profits in the Maldives or in Malta - all with a few clicks of your mouse!
Sadly, for most people, it's really not that easy.
Here's a frightening fact: nearly 50% of foreign exchange traders lose money to the point where they have to stop trading altogether, and go and do something less risky instead.
If you're trading currencies right now, or you're thinking about starting, then you have a 1-in-2 chance of losing your trading pot.
They're not very good odds, are they?
I've been trading currencies for over twenty years, on and off, and mostly without great success. When I heard that nearly half of all traders lose their money in the forex markets, I seriously considered giving up myself!
The one thing that kept me going through the dark days was knowing that the foreign exchange trading software, now available to the individual trader for a modest investment, or even for no investment at all, are all much better than the software that professional City forex firms were paying many thousands a year for only a decade ago.
I reckoned that the quality of the trading software tools available to us would continue to go up over time, and prices would continue to come down. And one day, we'd have access to some of the best foreign exchange software at silly prices!
I believe that day has now dawned.
As 'amateur' forex traders, we now have the choice of three directions to take that will allow us to play with the "Big Boys" - and win.
Option 1 - Pay For Trade Signals There are plenty of companies and 'expert' individuals out there who will deliver trade signals to you by phone, SMS or email. I've used a couple of them myself, and they can be pretty good.
Just so we're all clear, trade signals basically come from the market. They are either fundamental (good farm payroll numbers, an interest rate change and so on) or they are technical, from patterns forming on the charts, or a combination of the two.
There are literally hundreds of different signals to choose from, and a service should pass on to you only those they think have the highest probability of creating a profit. By the time you get a trade signal, though, it will simply tell you the currency pair, whether it's a Buy or a Sell, and some idea of stop-loss and profit-take levels.
The problem in this system lies in the information being delivered at the right time, and you being on hand to act upon it. The other problem is cost - some of the better ones will charge you several hundred dollars a month for their service. Of course, this adds to the pressure on your trading account, as you have to make the cost of the FX signal service back before you start to make any money for yourself.
Option 2 - A Managed Forex Account Here, you hand over your trading capital to a professional forex trading company who will trade for you in the markets.
There are several advantages to this route... * You are hiring a team of full-time professionals to trade on your behalf * No matter how good your trading software might be, theirs will be even better! * You need spend no time at all staring at screens and analysing charts * If you find a good team, it can work out very profitable for you.
However, there are fees to be taken into consideration. Generally, you will be charged a yearly management fee of between 1% and 3% of your trading capital, and a performance fee (usually charged quarterly) of between 10% and 35% of any profit made.
(If the performance fee seems high to you, think of it this way. Your team of foreign currency traders are trading currencies for a living, and you are benefiting from their expertise. Plus, if they charge you 25% of profits, you're still getting 75% of a sum that would not otherwise have been made. And, last but not least, a performance fee will motivate the team to do well for you - and that's what you want!)
The downside, for me at least, is the lack of control. I get a real buzz from trading, and I don't want to lose that by handing over my trading capital to a professional team.
You'll also need at least $10,000, probably nearer $50,000, in order to get started with a managed account.
Option 3 - Generate Your Own Trade Signals Years ago, this meant pouring over yesterday's paper charts (for which you had to pay a small fortune to get!) with pencil, ruler, and a stack of charts going back several months.
Nowadays, all that can be done with a good paid charting service such as eSignal, or even for free with BigCharts.
However, it still takes time, and you still need to know what you're looking for, and it takes further time to build up a skill and an affinity with charts before you start making consistent, profitable trades. (And that's if you're in the lucky 50% of traders!)
Recently, a new solution came onto the market that takes away the potentially expensive learning curve, and all this time-consuming analysis, and basically does it all for you.
This is the option I like! Here's how it works.
Step 1 - you simply download a piece of stand-alone software. This is what will generate the trade signals for you.
Step 2 - you feed it the latest data from the market you want to trade. All you need to do is take data from your online trading platform (and it doesn't matter which one you use) and feed it into the software.
Step 3 - if it brings back a trade signal, you trade it (or 'paper trade' it if you want to test it first)
Step 4 - your profit-taking limit is hit, and you bank the profits!
Does this sound a bit too good to be true? Well, let me give you a bit of background.
First off, the guy behind this incredible trade signal generator is a very successful trader in his own right, who used to work for a major international bank, and who now makes thousands of dollars a day using this self-same software. This trading tool was developed with the help of a mathematics professor and a behavioral psychologist.
Second, last year he took $100,000 and turned it into $641,147 in just two months, using his forex trade signal generator! Don't see this as typical, of course, but it serves as a fine demonstration of what is possible using these trading signals.
Happily, you don't need $100,000 to get started! You can open a forex trading account with as little as $500 but, realistically, you'd want to start with between $2,000 and $5,000 of trading capital.
You also don't need experience. The software is easy to use for anyone from a complete novice to a seasoned trader. It comes with full support, an accompanying manual, plus a lifetime of free upgrades, as and when they happen.
Any one of these three methods, or indeed a combination of two or more of them, should significantly boost your forex profits. The quality of paid-for signals varies enormously, depending on the skills and abilities of the person or group supplying them. If you get a good management team in place, they should be looking to deliver around 5% per MONTH on your money (though you must understand the accompanying risks, too).
Using the software in Option 3 - well, you've seen the results the creator had over a 2-month period. No one can guarantee you'll see the same, of course, but it is an extremely fine track record! If you were able to get results that are even half as good, wouldn't you be delighted?
Forex Managed Account, managed forex account
Forex Managed Account, managed forex account
Managed Forex accounts are best suited for those who wish to tap into the Forex world's fast moving turnover but don't have all it takes to do so. A managed Forex account is a type of trading account that is handled by a company trading representative. This presents an arrangement for a novice investor who is inexperienced and has no time to study the Forex market dynamics. A lot of people are interested in the Forex market due to its' high liquidity, 24 hour trading, low start up costs, and other attractive reasons. However not all traders are able to sufficiently learn or trade currency due to conflicting time schedules or perhaps due to other job delegation. A managed Forex account is a live Forex account absolutely funded by an investor, and traded by a company or professional. This allows the individual a reasonable profit margin as s/he does not have to trade on their own.
In a managed Forex account the company or individual one hires would take up the sole responsibility of watching the marketing activities and making recommendations as to which denominations one is to buy or sell. Hundreds of companies and investment firms make up the Forex market arena where an investor's money is put to qualitative use via an established managed Forex account. Some of these organizations have profound specialty in managing Forex accounts, providing an all near one hundred percent value for their service in the currency exchange. This landmark results gives the potential investor much confidence in their service offering. Managed Forex account when being handled by a professional currency representative, gives a better chance of realizing a steady monthly or yearly percentage of return.
Organizations and professionals charge management fees on the managed Forex account irrespective of whether the account is in profit or not. Opting for a managed Forex account for a beginner trader who cannot put his trust on his experience and judgment of the market is a very convenient and wise decision with a proviso of dealing only with a reputable company. By so doing, s/he can rely on the expertise and years of experience of that organization in making sound business decisions. Such companies handling managed Forex accounts usually have important insider information because of close interaction with many financial institutions. In other words, they provide access to currency exchange rates and market changes that one can use to turn in a nice profit.
There are obviously many advantages of a managed Forex account. Some allows the individual to achieve a steady rate of growth without having to go through the rigorous hassles of expending energy and time to trade the money personally. Part of the monthly or annual accruable revenue goes to the investing firm or company that provides the managed Forex account. The flexibility of withdrawing funds from the managed Forex account is another upside of this scheme. This is due to the very liquid nature of the Forex market which allows for potential in both rising and falling markets, giving the experienced money manager more opportunities to grow the investor's account.
Managed Forex accounts are best suited for those who wish to tap into the Forex world's fast moving turnover but don't have all it takes to do so. A managed Forex account is a type of trading account that is handled by a company trading representative. This presents an arrangement for a novice investor who is inexperienced and has no time to study the Forex market dynamics. A lot of people are interested in the Forex market due to its' high liquidity, 24 hour trading, low start up costs, and other attractive reasons. However not all traders are able to sufficiently learn or trade currency due to conflicting time schedules or perhaps due to other job delegation. A managed Forex account is a live Forex account absolutely funded by an investor, and traded by a company or professional. This allows the individual a reasonable profit margin as s/he does not have to trade on their own.
In a managed Forex account the company or individual one hires would take up the sole responsibility of watching the marketing activities and making recommendations as to which denominations one is to buy or sell. Hundreds of companies and investment firms make up the Forex market arena where an investor's money is put to qualitative use via an established managed Forex account. Some of these organizations have profound specialty in managing Forex accounts, providing an all near one hundred percent value for their service in the currency exchange. This landmark results gives the potential investor much confidence in their service offering. Managed Forex account when being handled by a professional currency representative, gives a better chance of realizing a steady monthly or yearly percentage of return.
Organizations and professionals charge management fees on the managed Forex account irrespective of whether the account is in profit or not. Opting for a managed Forex account for a beginner trader who cannot put his trust on his experience and judgment of the market is a very convenient and wise decision with a proviso of dealing only with a reputable company. By so doing, s/he can rely on the expertise and years of experience of that organization in making sound business decisions. Such companies handling managed Forex accounts usually have important insider information because of close interaction with many financial institutions. In other words, they provide access to currency exchange rates and market changes that one can use to turn in a nice profit.
There are obviously many advantages of a managed Forex account. Some allows the individual to achieve a steady rate of growth without having to go through the rigorous hassles of expending energy and time to trade the money personally. Part of the monthly or annual accruable revenue goes to the investing firm or company that provides the managed Forex account. The flexibility of withdrawing funds from the managed Forex account is another upside of this scheme. This is due to the very liquid nature of the Forex market which allows for potential in both rising and falling markets, giving the experienced money manager more opportunities to grow the investor's account.
วันศุกร์ที่ 8 กุมภาพันธ์ พ.ศ. 2551
Forex Trading - These Traders Made $100 Million Quickly How?
Forex Trading - These Traders Made $100 Million Quickly How?
by Monica Hendrix
In a famous experiment a group of traders had 14 days forex training and made $100 million in four years and went on to become some of the most famous traders of all time. If you want to trade forex then their story should be an essential part of your forex education.
The group were nicknamed "the turtles" and they were trained by legendary trader Richard Dennis. He set out to prove that anyone could learn currency trading, if they had the right education and mindset.
The group were of all ages, men and women, of various educational backgrounds and the only thing they had in common was - none of them had any trading experience.
The method they were taught was a long term trend following system which was based on breakout methodology and it was extremely simple; so simple in fact that anyone could learn it.
Now you may ask, if it's that simple to trade and learn a system, why do 95% of traders lose money?
Dennis knew the answer to this.
Rather than just teach them blindly to follow a system, he taught them how and why it worked, so they could have the confidence and discipline to follow it, through a string of losing trades.
The method had more losers than winners - but Dennis taught them to stay with the system, take the losses with strict money management and hold the big profitable trades.
So could you become as rich as "the turtles"?
Maybe not, life isn't like that but the opportunity is there for all.
There is nothing to stop you or anyone else, learning a similar method and enjoying currency trading success over the longer term.
All you need to do is get a simple system, understand it, have confidence in it and the vital element of discipline to apply it.
Discipline is the key, because if you don't have the discipline to follow your trading system, you don't have one!
Discipline is not easy to acquire but it's a learned skill. If you want to be disciplined trader you can be - it's as simple as that.
The turtles should be an inspiration to any trader and it shows what can be achieved and by anyone. I read about the story in 1983 and it inspired me to trade and I hope that it does the same for you.
Forex trading can offer a life changing income - sure it's a challenge but if you like a challenge, then you could be on the road to a life changing income.
by Monica Hendrix
In a famous experiment a group of traders had 14 days forex training and made $100 million in four years and went on to become some of the most famous traders of all time. If you want to trade forex then their story should be an essential part of your forex education.
The group were nicknamed "the turtles" and they were trained by legendary trader Richard Dennis. He set out to prove that anyone could learn currency trading, if they had the right education and mindset.
The group were of all ages, men and women, of various educational backgrounds and the only thing they had in common was - none of them had any trading experience.
The method they were taught was a long term trend following system which was based on breakout methodology and it was extremely simple; so simple in fact that anyone could learn it.
Now you may ask, if it's that simple to trade and learn a system, why do 95% of traders lose money?
Dennis knew the answer to this.
Rather than just teach them blindly to follow a system, he taught them how and why it worked, so they could have the confidence and discipline to follow it, through a string of losing trades.
The method had more losers than winners - but Dennis taught them to stay with the system, take the losses with strict money management and hold the big profitable trades.
So could you become as rich as "the turtles"?
Maybe not, life isn't like that but the opportunity is there for all.
There is nothing to stop you or anyone else, learning a similar method and enjoying currency trading success over the longer term.
All you need to do is get a simple system, understand it, have confidence in it and the vital element of discipline to apply it.
Discipline is the key, because if you don't have the discipline to follow your trading system, you don't have one!
Discipline is not easy to acquire but it's a learned skill. If you want to be disciplined trader you can be - it's as simple as that.
The turtles should be an inspiration to any trader and it shows what can be achieved and by anyone. I read about the story in 1983 and it inspired me to trade and I hope that it does the same for you.
Forex trading can offer a life changing income - sure it's a challenge but if you like a challenge, then you could be on the road to a life changing income.
Currency Trading Systems - Check This Key Point If You Want Big Profits
Currency Trading Systems - Check This Key Point If You Want Big Profits!
by Monica Hendrix
If you are looking at buying a currency trading system then you need to be careful 99% are junk and won't make you money to find the elite systems that can make you profits you need to check one key point.
The first point you need to check is the track record real or made up?
Check for the disclaimer below and if you see it avoid buying the system - here it is read very carefully:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
The fact is most of the systems you see on the net carry this disclaimer and it means the track record is not worth the paper it's written on. Anyone can simulate profits in hindsight, knowing the closing prices - but alas currency trading is not that simple.
When buying a currency trading system always insist on a real track record and audited statements from a broker. I saw one system where the vendor simply shows copies of his bank statement and that's his system sales, not trading profits!
You have to say to yourself if the vendor doesn't have the confidence to trade his or her own system why should you?
Once you have a real time track record you have at least some proof the system has worked. The key point with any system is applying it with discipline so check the drawdown (worst peak to valley) and recovery time. Finally, check you're happy with it and then trade it assuming this will happen again.
It's also a good idea to learn the logic of the system as it's easier to follow a system when you know how and why it will work longer term.
Another Way
Is not to buy a system but get a free one. A great one which is simple and works is.
Richard Donchian's 4 Week Rule
Look it up in our other articles its one parameter and it will beat 99% of the currency trading systems you see on the net.
The other way is to simply build a trading system yourself - it's a lot easier to do than many forex traders think and in the next article in this series, we will look at how to build your own successful currency trading system in under a week.
by Monica Hendrix
If you are looking at buying a currency trading system then you need to be careful 99% are junk and won't make you money to find the elite systems that can make you profits you need to check one key point.
The first point you need to check is the track record real or made up?
Check for the disclaimer below and if you see it avoid buying the system - here it is read very carefully:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
The fact is most of the systems you see on the net carry this disclaimer and it means the track record is not worth the paper it's written on. Anyone can simulate profits in hindsight, knowing the closing prices - but alas currency trading is not that simple.
When buying a currency trading system always insist on a real track record and audited statements from a broker. I saw one system where the vendor simply shows copies of his bank statement and that's his system sales, not trading profits!
You have to say to yourself if the vendor doesn't have the confidence to trade his or her own system why should you?
Once you have a real time track record you have at least some proof the system has worked. The key point with any system is applying it with discipline so check the drawdown (worst peak to valley) and recovery time. Finally, check you're happy with it and then trade it assuming this will happen again.
It's also a good idea to learn the logic of the system as it's easier to follow a system when you know how and why it will work longer term.
Another Way
Is not to buy a system but get a free one. A great one which is simple and works is.
Richard Donchian's 4 Week Rule
Look it up in our other articles its one parameter and it will beat 99% of the currency trading systems you see on the net.
The other way is to simply build a trading system yourself - it's a lot easier to do than many forex traders think and in the next article in this series, we will look at how to build your own successful currency trading system in under a week.
วันพฤหัสบดีที่ 7 กุมภาพันธ์ พ.ศ. 2551
Forex Price Movement - Learn How This Important Factor Works or Lose
Forex Price Movement - Learn How This Important Factor Works or Lose
by kelly Price
Many forex traders think they need to study news stories and the fundamentals to win on the other hand, forex chartists think that charts move to some hocus pocus theory that predicts the future but the most important variable is much simpler and learn how to gauge it and you can enjoy currency trading success.
First lets look at the benefits and flaws of both forex techncial and fundamental analysis.
Let's start with a simple equation.
Fundamentals (Supply and demand) + Investor Perception = Price
Nice and simple that's the way any investment market moves and it's obvious that the most important variable is investor perception or sentiment.
The person who simply acts on news has no chance of winning, as it's discounted immediately and he is playing catch up. For evidence of this look at every major bull move and bear move and you will find that the fundamentals are almost always at their most bullish at an important market top and most bearish at an important market bottom.
The person who uses forex technical analysis will argue that as the fundamentals are immediately discounted in the price, so all you need to do is follow price action and this is by far the better way of trading - but it has one flaw.
You can't see how far a move will go as greed and fear take hold of investor's. Sure price spikes never last - but when are they going to end?
This is where you look at the fundamentals for clues to warn of technical tops i.e the sentiment.
You can do this by watching the news.
For example recently it was said the euro would gain on the dollar and make new highs because the US had cut interest rates - what happened?
The euro tried to get through an important resistance price and failed (we pointed this out in an article last week and the euro has plunged since) what was going on?
The news was discounted and bullish euro news didn't push it higher.
This meant the sentiment was at a bullish extreme and prices recoiled back.
If ever you see bullish news that doesn't push a market higher and bearish news that doesn't push a market lower, combined with a price spike on the charts, chances are you are going to get a move the other way.
There is a famous saying:
"If you can hold your head when all around you everyone is losing theirs you probably haven't heard the news"
In forex terms you have but you are drawing different conclusions - while the lemmings are blinded by greed and fear and never see a move ending, you are looking for a contrary trend.
If you look for price spikes and then look at the contrary view, then you can get some trading opportunities.
Are there any concrete indicators for judging investor sentiment?
Yes there are two great ones - % bullish and the Net Traders Positions report and we will look at these in the next article in this series.
If you want to maximize your profits and enjoy currency trading success you need to use market sentiment to anticipate forex price movement.
by kelly Price
Many forex traders think they need to study news stories and the fundamentals to win on the other hand, forex chartists think that charts move to some hocus pocus theory that predicts the future but the most important variable is much simpler and learn how to gauge it and you can enjoy currency trading success.
First lets look at the benefits and flaws of both forex techncial and fundamental analysis.
Let's start with a simple equation.
Fundamentals (Supply and demand) + Investor Perception = Price
Nice and simple that's the way any investment market moves and it's obvious that the most important variable is investor perception or sentiment.
The person who simply acts on news has no chance of winning, as it's discounted immediately and he is playing catch up. For evidence of this look at every major bull move and bear move and you will find that the fundamentals are almost always at their most bullish at an important market top and most bearish at an important market bottom.
The person who uses forex technical analysis will argue that as the fundamentals are immediately discounted in the price, so all you need to do is follow price action and this is by far the better way of trading - but it has one flaw.
You can't see how far a move will go as greed and fear take hold of investor's. Sure price spikes never last - but when are they going to end?
This is where you look at the fundamentals for clues to warn of technical tops i.e the sentiment.
You can do this by watching the news.
For example recently it was said the euro would gain on the dollar and make new highs because the US had cut interest rates - what happened?
The euro tried to get through an important resistance price and failed (we pointed this out in an article last week and the euro has plunged since) what was going on?
The news was discounted and bullish euro news didn't push it higher.
This meant the sentiment was at a bullish extreme and prices recoiled back.
If ever you see bullish news that doesn't push a market higher and bearish news that doesn't push a market lower, combined with a price spike on the charts, chances are you are going to get a move the other way.
There is a famous saying:
"If you can hold your head when all around you everyone is losing theirs you probably haven't heard the news"
In forex terms you have but you are drawing different conclusions - while the lemmings are blinded by greed and fear and never see a move ending, you are looking for a contrary trend.
If you look for price spikes and then look at the contrary view, then you can get some trading opportunities.
Are there any concrete indicators for judging investor sentiment?
Yes there are two great ones - % bullish and the Net Traders Positions report and we will look at these in the next article in this series.
If you want to maximize your profits and enjoy currency trading success you need to use market sentiment to anticipate forex price movement.
วันพุธที่ 6 กุมภาพันธ์ พ.ศ. 2551
What is Forex trading?
What is Forex trading?
by Murtaza Khan
The term Forex is derived from the foreign exchange with the trading of the foreign currencies popularly known as Forex trading and the place where the forex trading is done is known as the Forex market.
The currency of any country commands its own price with reference to the currency of any other nation. The difference between the values of these two currencies is taken into account during the Forex trading.
The Forex market is a 24 hour, 5 days a week cash market where currencies of different nations are traded through global Forex dealers. Foreign currencies are continuously bought and sold across local and international Forex markets and the value of a particular currency may change against other international currencies from time to time. The goal of Forex trading is to earn profit from foreign currency value movements. Forex trading is always done in a pair of currencies like the EURO/USD or AUD/USD.
With Forex trading, usually it is desirable to trade only when it is expected that the currency you are buying is likely to increase in value relative to the currency you are selling. However, the Forex market is mostly speculative. Forex Trading is the largest financial trading market in the world. In Forex trading, when you buy the currency of a particular country, you are investing your money in the economy of that particular country. If the economy of that particular country is healthy, then the value of your investment will increase, and you will make a profit and if the economy of that county is in bad shape then the value of your investment may decrease and you may end up in a loss. Usually the Forex market is considered as the most volatile market in the world.
The Forex market came into existence way back in the year 1971. Till recently the requirement for the start of Forex trading required a huge investment and only individuals and companies with tens of millions of dollars could afford to trade in the Forex market. But the scenario has changed now completely and you can get started with an investment of as little as $50. Most of the trade in the Forex market includes U.S. Dollars (USD), Euros (EUR), Japanese Yen (JPY), UK Pounds (GBP), Swiss Francs (CHF), Canadian Dollars (CAD) and Australian Dollars (AUD) and these currencies are considered as the most popular currencies in the Forex trade. Since the Forex market is open 24 hours, you can trade in the Forex market any time that suits you best.
When you opt in to trade in the Forex market it is desirable that you buy a foreign currency at one price, wait until it has increased in value, and then sell your holding of foreign currency. But it may require a considerable amount of time and it tests the patience you have but it will mean than you have a better chance to actually register the significant profit from the trading. There is considerable risk involved in the Forex trading, supposing the foreign currency that you expect to increase in value, falls in value instead and then you make a loss on the trade straight way. This is the condition portrayed for the long term investments but in the real terms in a Forex market nobody is going to hold on to their foreign currency for months or years. Most of the Forex trade transactions are completed within seven days at the most and Forex trading involves very small short-term changes in currency values. These short-term changes take place within a few hours in any day. This gives you the scope of not loosing a big amount of your investment from any particular deal but it also does not guarantee you a significant gain from the deal.
by Murtaza Khan
The term Forex is derived from the foreign exchange with the trading of the foreign currencies popularly known as Forex trading and the place where the forex trading is done is known as the Forex market.
The currency of any country commands its own price with reference to the currency of any other nation. The difference between the values of these two currencies is taken into account during the Forex trading.
The Forex market is a 24 hour, 5 days a week cash market where currencies of different nations are traded through global Forex dealers. Foreign currencies are continuously bought and sold across local and international Forex markets and the value of a particular currency may change against other international currencies from time to time. The goal of Forex trading is to earn profit from foreign currency value movements. Forex trading is always done in a pair of currencies like the EURO/USD or AUD/USD.
With Forex trading, usually it is desirable to trade only when it is expected that the currency you are buying is likely to increase in value relative to the currency you are selling. However, the Forex market is mostly speculative. Forex Trading is the largest financial trading market in the world. In Forex trading, when you buy the currency of a particular country, you are investing your money in the economy of that particular country. If the economy of that particular country is healthy, then the value of your investment will increase, and you will make a profit and if the economy of that county is in bad shape then the value of your investment may decrease and you may end up in a loss. Usually the Forex market is considered as the most volatile market in the world.
The Forex market came into existence way back in the year 1971. Till recently the requirement for the start of Forex trading required a huge investment and only individuals and companies with tens of millions of dollars could afford to trade in the Forex market. But the scenario has changed now completely and you can get started with an investment of as little as $50. Most of the trade in the Forex market includes U.S. Dollars (USD), Euros (EUR), Japanese Yen (JPY), UK Pounds (GBP), Swiss Francs (CHF), Canadian Dollars (CAD) and Australian Dollars (AUD) and these currencies are considered as the most popular currencies in the Forex trade. Since the Forex market is open 24 hours, you can trade in the Forex market any time that suits you best.
When you opt in to trade in the Forex market it is desirable that you buy a foreign currency at one price, wait until it has increased in value, and then sell your holding of foreign currency. But it may require a considerable amount of time and it tests the patience you have but it will mean than you have a better chance to actually register the significant profit from the trading. There is considerable risk involved in the Forex trading, supposing the foreign currency that you expect to increase in value, falls in value instead and then you make a loss on the trade straight way. This is the condition portrayed for the long term investments but in the real terms in a Forex market nobody is going to hold on to their foreign currency for months or years. Most of the Forex trade transactions are completed within seven days at the most and Forex trading involves very small short-term changes in currency values. These short-term changes take place within a few hours in any day. This gives you the scope of not loosing a big amount of your investment from any particular deal but it also does not guarantee you a significant gain from the deal.
Forex Managed Account
Forex Managed Account
by Brian Tewes
Investing in the Forex market is a great opportunity to diversify and benefit from the liquidity that global foreign exchange provides. A good way to leap into Forex trading is through Forex managed accounts while receiving professional training and learning how to trade by oneself. Ultimately, good trader's fine tunes their own trading system and learns how the market reacts to specific news and patterns. The big players in Forex trading are primarily central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Huge investments in form of deposits are required in Forex trading hence previously small investors were unable to trade in the Forex market. However until recent years, with the continuing growth of the internet and competition, small investors can now open a Forex account with as little as $250.
There are a few factors as to why Forex is starting to attract more small investors. For one, Forex can be traded 24 hours a day 5 days a week. Before now, trades used to be made through phone, but these days, the internet now offers traders the opportunity to keep an eye on their trading accounts from anywhere in the world and also execute market trades in real time with the click of a mouse button. Managed account accommodates those investors who wish to allocate part of their initial investment capital to the Forex market but are either unable to watch the markets 24 hours a day or prefer to have their risk capital managed by professionals. Managed Forex trading depends on certain strategies which may be known to the investors or exclusively to the fun managers.
It is not enough for one to simply invest money without knowing the basics of what s/he is into. Even if a Forex fund manager does not know the technicalities involved in trading, it makes a lot of sense for such a person to know what goes up and comes down or stays there as it concerns the trading activities. Having a Forex managed account can be compared to an investment with a mutual fund related to the buying and selling of foreign currencies, but with one notable difference being that with a managed Forex account you can be in control of your account. A modest managed account whether it is traded by another person or an automated robot can earn up to 20% per month or more depending on how good the system is. There have been stories of managed accounts earning 20 times the amount they started within a year.
However, finding an automated system that is consistently profitable is a difficult challenge and most accounts are on the slower side of about 5% to 10% per month. Searching for a good managed Forex account is not an easy task. Some trading systems take too many trades causing the trader to margin out too soon or give poor signals all together. Clients are advised to be sure of trading system that is able to back up its data with proven results and back tests their system in real-time. Choosing an automated trading system with the highest monthly returns isn't always the best choice. Depending on the broker that is managing your account and their ability to pay out is what counts the most. There are hundreds of Forex brokers and not every broker is able to fill positions on trades.
by Brian Tewes
Investing in the Forex market is a great opportunity to diversify and benefit from the liquidity that global foreign exchange provides. A good way to leap into Forex trading is through Forex managed accounts while receiving professional training and learning how to trade by oneself. Ultimately, good trader's fine tunes their own trading system and learns how the market reacts to specific news and patterns. The big players in Forex trading are primarily central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Huge investments in form of deposits are required in Forex trading hence previously small investors were unable to trade in the Forex market. However until recent years, with the continuing growth of the internet and competition, small investors can now open a Forex account with as little as $250.
There are a few factors as to why Forex is starting to attract more small investors. For one, Forex can be traded 24 hours a day 5 days a week. Before now, trades used to be made through phone, but these days, the internet now offers traders the opportunity to keep an eye on their trading accounts from anywhere in the world and also execute market trades in real time with the click of a mouse button. Managed account accommodates those investors who wish to allocate part of their initial investment capital to the Forex market but are either unable to watch the markets 24 hours a day or prefer to have their risk capital managed by professionals. Managed Forex trading depends on certain strategies which may be known to the investors or exclusively to the fun managers.
It is not enough for one to simply invest money without knowing the basics of what s/he is into. Even if a Forex fund manager does not know the technicalities involved in trading, it makes a lot of sense for such a person to know what goes up and comes down or stays there as it concerns the trading activities. Having a Forex managed account can be compared to an investment with a mutual fund related to the buying and selling of foreign currencies, but with one notable difference being that with a managed Forex account you can be in control of your account. A modest managed account whether it is traded by another person or an automated robot can earn up to 20% per month or more depending on how good the system is. There have been stories of managed accounts earning 20 times the amount they started within a year.
However, finding an automated system that is consistently profitable is a difficult challenge and most accounts are on the slower side of about 5% to 10% per month. Searching for a good managed Forex account is not an easy task. Some trading systems take too many trades causing the trader to margin out too soon or give poor signals all together. Clients are advised to be sure of trading system that is able to back up its data with proven results and back tests their system in real-time. Choosing an automated trading system with the highest monthly returns isn't always the best choice. Depending on the broker that is managing your account and their ability to pay out is what counts the most. There are hundreds of Forex brokers and not every broker is able to fill positions on trades.
Investing in Forex
Investing in Forex
by Murtaza Khan
Forex trading made its debut in the year 1997 and presently it is considered as one of the world's leading trading operations. Investment in the forex trade is relatively a recent trend in the international investment market. The Forex market is a highly volatile, liquid and risk prone market and lot of people do not know about it. Forex is the most lucrative investment market that exists in the world at present. The forex trading is spread across over 100 countries using its 24 hour market access. It is one of the highest levels of customer service available in the trading industry. The forex brokers have direct access to pricing for more than 60 pairs of currency and expert analytical services from the renowned experts of the field. At present the forex trading platform is available for both beginners and professionals. There are several factors included in the forex trade that makes the forex traders to earn realistic profits every month. Compared to some of the better known investment markets such high return on investment is unheard. It's advisable that if you are desirous of investing in the forex must, without fail; make it a point to learn the detailed strategies and information surrounding the forex market. This makes the actual difference between successful forex traders and other traders.
The forex trading market is open 24 hours a day and it is only close for the weekends. For the current time it is the most liquid market present in the world. Forex trading is commission free and trading is usually done for more than 60 currency pairs simultaneously worldwide. One of the great advantages the forex trade offers is that being an international trade in nature so you can enjoy your profit opportunities not depending over the market conditions. With generally available leverage strategy in the forex market you can use 100 to 1 leverage which in turn reduces the need for large amounts of capital to be invested. The amount of capital required to begin investing in the forex trade depends upon your choice of the dealer it may range from $50 to $300 and that is an amount with which you can take the risk. The forex market creates several up and down trends in a single day trading but the earning of the profits make it stand head and shoulders above other existing markets.
The forex trading strategies are available for you and they provide for compounded profits. For the beginners and the novices free demo accounts are available within the industry of forex trading one of such available at the FX solutions (http://www.fxsol.com/) that allows you to have the experience of the forex market and the sharpening of your trading skills without the risk of losing any capital from your pocket. Forex trading requires approximately ten to fifteen hours each week earning a full time income. This also makes this trade lucrative and handsome enough. The forex market offers you the most lucrative, time liberating, and easy to enter by far market to harvest great profits. Previously it was being assumed by most of the people that forex trading was only available for large investors, it was quite true but, now smaller transactions are also available that allows all traders irrespective of the investment size to take part in the international forex trade giving everyone the opportunity to profit from forex trading. The investment in the forex market is actually investing your money into a true method of making your money work harder for you. Does the information tempt you to invest in the forex market right now or do you want to wait for a better proposition than forex?
by Murtaza Khan
Forex trading made its debut in the year 1997 and presently it is considered as one of the world's leading trading operations. Investment in the forex trade is relatively a recent trend in the international investment market. The Forex market is a highly volatile, liquid and risk prone market and lot of people do not know about it. Forex is the most lucrative investment market that exists in the world at present. The forex trading is spread across over 100 countries using its 24 hour market access. It is one of the highest levels of customer service available in the trading industry. The forex brokers have direct access to pricing for more than 60 pairs of currency and expert analytical services from the renowned experts of the field. At present the forex trading platform is available for both beginners and professionals. There are several factors included in the forex trade that makes the forex traders to earn realistic profits every month. Compared to some of the better known investment markets such high return on investment is unheard. It's advisable that if you are desirous of investing in the forex must, without fail; make it a point to learn the detailed strategies and information surrounding the forex market. This makes the actual difference between successful forex traders and other traders.
The forex trading market is open 24 hours a day and it is only close for the weekends. For the current time it is the most liquid market present in the world. Forex trading is commission free and trading is usually done for more than 60 currency pairs simultaneously worldwide. One of the great advantages the forex trade offers is that being an international trade in nature so you can enjoy your profit opportunities not depending over the market conditions. With generally available leverage strategy in the forex market you can use 100 to 1 leverage which in turn reduces the need for large amounts of capital to be invested. The amount of capital required to begin investing in the forex trade depends upon your choice of the dealer it may range from $50 to $300 and that is an amount with which you can take the risk. The forex market creates several up and down trends in a single day trading but the earning of the profits make it stand head and shoulders above other existing markets.
The forex trading strategies are available for you and they provide for compounded profits. For the beginners and the novices free demo accounts are available within the industry of forex trading one of such available at the FX solutions (http://www.fxsol.com/) that allows you to have the experience of the forex market and the sharpening of your trading skills without the risk of losing any capital from your pocket. Forex trading requires approximately ten to fifteen hours each week earning a full time income. This also makes this trade lucrative and handsome enough. The forex market offers you the most lucrative, time liberating, and easy to enter by far market to harvest great profits. Previously it was being assumed by most of the people that forex trading was only available for large investors, it was quite true but, now smaller transactions are also available that allows all traders irrespective of the investment size to take part in the international forex trade giving everyone the opportunity to profit from forex trading. The investment in the forex market is actually investing your money into a true method of making your money work harder for you. Does the information tempt you to invest in the forex market right now or do you want to wait for a better proposition than forex?
The Cost of Forex Trading
The Cost of Forex Trading
by Murtaza Khan
The forex trade is going to be the buzzword for the future and it holds enormous opportunities for the investors in the forex trade. In the earlier days of the forex market the requirement of the capital for the investment was quite big most of the times running into millions of dollars. The size of the investment kept the common investor out of the forex market for quite long. After the internet boom forex market also went through lot of changes and the requirement of the minimum investment to participate in the forex trade dropped considerably, making it a feasible area for the small investors. At present the scenario is as such that, if you want to work at home with a great earning potential you should seriously think about learning the ins and outs of forex trading, one of the most profitable activities anyone can enter into due to its generous characteristics that set it apart from other capital markets at the present time.
Forex markets are very active markets in nature which are open 24-hrs a day except the weekends. It's a global market so you can trade from any where in the world round the clock and you will always find profitable trades that will make your earnings grow in a stable manner. You have the US market then the European and then the Asian forex markets. Each one of them appears on the forex trade zone one after another. One of the great times to trade is during the over lapping periods. The USA and European forex markets overlap between 5am and 9am EST and the European and Asian forex markets between 11pm and 1am EST. The overlap periods are usually the busiest and best time to trade in the forex market. After the opening up of the forex market for the small investors you can open a forex trading account with a forex broker for as low as $300.
In order to be successful in forex trading you need to learn the tricks of the trade. Forex trading is a very complicated and speculative market and for better understanding you need to have a good knowledge of how markets behave and what influences this behavior to be able to use it in your favor to earn handsomely. The worst thing you can do is to enter the world of forex trading without proper knowledge and this can cost you a lot of money in bad trades. In the worst case scenario you could lose what's in you account. But you would have to do something really stupid for that also. To help you out from the difficult scenarios lots and lots of expert advice is available on the net. To prepare you to cope up with the actual trading scenario many sites are there on the net that provide you with the demo or the free practice account. By using these accounts you can really prepare yourself to earn some profits in the real forex markets.
There are many factors that contribute to the price fluctuation in the currencies and if you are vigilant enough you would be able to sail over the problem period quite nicely and would be able to log in a nice amount of profit. The forex trade is getting popular among the small investors due to the requirement of very small capital and barring the risk factors of the market, the ability of the forex market to provide ample scope of earning sizeable profit by the investors. There is no need to be afraid of the forex market, only thing required is the proper knowledge about the forex market.
by Murtaza Khan
The forex trade is going to be the buzzword for the future and it holds enormous opportunities for the investors in the forex trade. In the earlier days of the forex market the requirement of the capital for the investment was quite big most of the times running into millions of dollars. The size of the investment kept the common investor out of the forex market for quite long. After the internet boom forex market also went through lot of changes and the requirement of the minimum investment to participate in the forex trade dropped considerably, making it a feasible area for the small investors. At present the scenario is as such that, if you want to work at home with a great earning potential you should seriously think about learning the ins and outs of forex trading, one of the most profitable activities anyone can enter into due to its generous characteristics that set it apart from other capital markets at the present time.
Forex markets are very active markets in nature which are open 24-hrs a day except the weekends. It's a global market so you can trade from any where in the world round the clock and you will always find profitable trades that will make your earnings grow in a stable manner. You have the US market then the European and then the Asian forex markets. Each one of them appears on the forex trade zone one after another. One of the great times to trade is during the over lapping periods. The USA and European forex markets overlap between 5am and 9am EST and the European and Asian forex markets between 11pm and 1am EST. The overlap periods are usually the busiest and best time to trade in the forex market. After the opening up of the forex market for the small investors you can open a forex trading account with a forex broker for as low as $300.
In order to be successful in forex trading you need to learn the tricks of the trade. Forex trading is a very complicated and speculative market and for better understanding you need to have a good knowledge of how markets behave and what influences this behavior to be able to use it in your favor to earn handsomely. The worst thing you can do is to enter the world of forex trading without proper knowledge and this can cost you a lot of money in bad trades. In the worst case scenario you could lose what's in you account. But you would have to do something really stupid for that also. To help you out from the difficult scenarios lots and lots of expert advice is available on the net. To prepare you to cope up with the actual trading scenario many sites are there on the net that provide you with the demo or the free practice account. By using these accounts you can really prepare yourself to earn some profits in the real forex markets.
There are many factors that contribute to the price fluctuation in the currencies and if you are vigilant enough you would be able to sail over the problem period quite nicely and would be able to log in a nice amount of profit. The forex trade is getting popular among the small investors due to the requirement of very small capital and barring the risk factors of the market, the ability of the forex market to provide ample scope of earning sizeable profit by the investors. There is no need to be afraid of the forex market, only thing required is the proper knowledge about the forex market.
วันอังคารที่ 5 กุมภาพันธ์ พ.ศ. 2551
Let Forex Professional To Take Care
Let Forex Professional To Take Care
by Varon Sanornoi
For the people who are in financial market, I am pretty sure that no one never hard about Forex trading. It is one of the most financial investments that gain market share to total investment in the world. Many people are interested in this business because it requires almost nothing to do. Forex investment is basically about trading money between currencies. For example, if you plan to trade between USD and EUR, you will have to learn about exchange rate in order to get accurate different rate that could give you profit. However, the most difficult part seem to be the situation that you have to consider about the period that exchange rate can give you profit and many investors are also struggling with this.
According to this reason, some investors have realized that they should hire some one who come to manage their account. This is the fact that many of investors sometimes have money to invest but very lack of knowledge of this business. Therefore, it is likely for them to hire professional to take care and manage of their account. The most distinct benefit of having professional to manage your account is that the client do not have to worry about market situation and what to do with them, the whole process will be proposed by account manager and the client only make decision and they will take care the rest. Therefore, Forex money manager seems to be suitable for investors who do not have much time to keep an eye on every single moment financial market situation.
However, even though there are a lot of distinct benefits of having someone to take care of your money account, but to find an ideal one is much more difficult. You can find this kind of professionals from both offline and online resource. But today, it seems that there are millions of classified, freelance, or company's website who are offering account manager and financial report service, but may be still hard for the investor because they just lack of criteria how to choose professional to help them on this matter. As financial market condition is always changing, especially for Forex trading, it is obvious that no matter you are going to invest in short term or long term project, the profit that you will get from Forex trading will be not much different, because of the market situation which has direct impact to currency exchange rate.
So what to consider if you want someone to effectively manage your account?
According to the fact that, in point of view of investor, they just want to do what ever that can give them profits. Therefore, they may find that it does not necessary to hire professional from the company that has great reputation. Instead, you can find individual freelance who has great portfolio and ensure that he has experience to work and effectively advise according to the market situation. However, hire professional from the famous company may be another option but you may have to spend much more money if you want to hire professional from these companies.
by Varon Sanornoi
For the people who are in financial market, I am pretty sure that no one never hard about Forex trading. It is one of the most financial investments that gain market share to total investment in the world. Many people are interested in this business because it requires almost nothing to do. Forex investment is basically about trading money between currencies. For example, if you plan to trade between USD and EUR, you will have to learn about exchange rate in order to get accurate different rate that could give you profit. However, the most difficult part seem to be the situation that you have to consider about the period that exchange rate can give you profit and many investors are also struggling with this.
According to this reason, some investors have realized that they should hire some one who come to manage their account. This is the fact that many of investors sometimes have money to invest but very lack of knowledge of this business. Therefore, it is likely for them to hire professional to take care and manage of their account. The most distinct benefit of having professional to manage your account is that the client do not have to worry about market situation and what to do with them, the whole process will be proposed by account manager and the client only make decision and they will take care the rest. Therefore, Forex money manager seems to be suitable for investors who do not have much time to keep an eye on every single moment financial market situation.
However, even though there are a lot of distinct benefits of having someone to take care of your money account, but to find an ideal one is much more difficult. You can find this kind of professionals from both offline and online resource. But today, it seems that there are millions of classified, freelance, or company's website who are offering account manager and financial report service, but may be still hard for the investor because they just lack of criteria how to choose professional to help them on this matter. As financial market condition is always changing, especially for Forex trading, it is obvious that no matter you are going to invest in short term or long term project, the profit that you will get from Forex trading will be not much different, because of the market situation which has direct impact to currency exchange rate.
So what to consider if you want someone to effectively manage your account?
According to the fact that, in point of view of investor, they just want to do what ever that can give them profits. Therefore, they may find that it does not necessary to hire professional from the company that has great reputation. Instead, you can find individual freelance who has great portfolio and ensure that he has experience to work and effectively advise according to the market situation. However, hire professional from the famous company may be another option but you may have to spend much more money if you want to hire professional from these companies.
วันจันทร์ที่ 4 กุมภาพันธ์ พ.ศ. 2551
Forex Pivot Points - What is the Forex Pivot Points?
Forex Pivot Points - What is the Forex Pivot Points?
by Simon Aridej
Pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa. They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known to every trader that the pivot point is an important measure of strength and weakness of any market.
Floor traders love pivot points. They act as magnet for price movements. If you observe how price move during any trading session, you'll notice that price often stalls or stops at pivot points before resuming its movement. To calculate daily pivot points you need High, Low, and Close Price of the previous day.
Here are the formula for calculating daily pivot points:
Central Pivot Point (P) = (High + Low + Close)/3 Resistance Level 1 (R1) = 2xP - Low Resistance Level 2 (R2) = P + (R1 - S1) Resistance Level 3 (R3) = High + 2x(P - Low) Support Level 1 (S1) = 2xP - High Support Level 2 (S2) = P - (R1 - S1) Support Level 3 (S3) = Low - 2x(High - P)
To calculate weekly pivot points, apply the same formula, but using High, Low, and Close Price of the previous week instead of the previous day.
As you can see from the above formula, just by having the previous days high, low and close you eventually finish up with 7 points, 3 resistance levels, 3 support levels and the actual pivot point. If the market opens above the pivot point then the bias for the day is long trades. If the market opens below the pivot point then the bias for the day is for short trades. The three most important pivot points are R1, S1 and the actual pivot point. The general idea behind trading pivot points are to look for a reversal or break of R1 or S1. By the time the market reaches R2,R3 or S2,S3 the market will already be overbought or oversold and these levels should be used for exits rather than entries. A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2. You would enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and target R3 with the remainder of your position. Pivot points are one of the key tools traders use to determine where price is likely to go and where it is likely to stall. However, you should use the pivot points formulas above to create your own pivot point and then apply them with your own forex trading system.
by Simon Aridej
Pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa. They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known to every trader that the pivot point is an important measure of strength and weakness of any market.
Floor traders love pivot points. They act as magnet for price movements. If you observe how price move during any trading session, you'll notice that price often stalls or stops at pivot points before resuming its movement. To calculate daily pivot points you need High, Low, and Close Price of the previous day.
Here are the formula for calculating daily pivot points:
Central Pivot Point (P) = (High + Low + Close)/3 Resistance Level 1 (R1) = 2xP - Low Resistance Level 2 (R2) = P + (R1 - S1) Resistance Level 3 (R3) = High + 2x(P - Low) Support Level 1 (S1) = 2xP - High Support Level 2 (S2) = P - (R1 - S1) Support Level 3 (S3) = Low - 2x(High - P)
To calculate weekly pivot points, apply the same formula, but using High, Low, and Close Price of the previous week instead of the previous day.
As you can see from the above formula, just by having the previous days high, low and close you eventually finish up with 7 points, 3 resistance levels, 3 support levels and the actual pivot point. If the market opens above the pivot point then the bias for the day is long trades. If the market opens below the pivot point then the bias for the day is for short trades. The three most important pivot points are R1, S1 and the actual pivot point. The general idea behind trading pivot points are to look for a reversal or break of R1 or S1. By the time the market reaches R2,R3 or S2,S3 the market will already be overbought or oversold and these levels should be used for exits rather than entries. A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2. You would enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and target R3 with the remainder of your position. Pivot points are one of the key tools traders use to determine where price is likely to go and where it is likely to stall. However, you should use the pivot points formulas above to create your own pivot point and then apply them with your own forex trading system.
Forex Trading Strategies
Forex Trading Strategies
by Andrew Daigle
The Forex market incorporates two primary types of Forex trading strategies. One such Forex strategy is based on a fundamental analysis and the other is based on a technical analysis. As a trader, you will likely have to incorporate both types of Forex strategies in your overall Forex trading strategy. Fundamental analyses are based on economic factors while technical analyses are based on price. There is a general consensus among market participants that the most highly traded currency pairs in the Forex market tend to be technical and the more exotic currency pairs tend to be more fundamental.
While both types of analysis are necessary for successful and profitable trades, most traders tend to rely more on one type than the other. When your Forex trading strategy incorporates technical analysis, you must be prepared to deal with the mathematical concepts necessary to manipulate pricing data. Likewise, when you incorporate fundamental analysis in your trading strategy, you must be prepared to handle the multitude of economic factors necessary to base your trades. In the end, the variety of economic data must be converted into price predictions and many traders resort to technical analysis because it is thought to have a built in mechanism for completing the conversion. However, incorporating a purely technical Forex trading strategy without regard for the fundamental aspects of the market is much like trading on luck. Sometimes you win, sometimes not.
Other factors that will influence your Forex trading strategy are your ability to manage money and to handle the psychological implications of participating in the Forex market. While many people have profited from their Forex trading strategies, losses are all but guaranteed with Forex trading systems. One of the nuances of Forex trading is that it involves calculated risks. If your financial situation or emotional circumstance is such that you cannot afford to sustain losses, you will likely loose more than your investment dollars, particularly if your losses are easily converted to physical illness.
It is important to develop a Forex trading strategy that complements your lifestyle and temperament. You need to understand the investment, the risks and the impact that your choices will have on your investment dollars and your lifestyle. In Forex trading, it is quite possible for a loss to multiple itself as market conditions vary and change. Your Forex trading strategy must include a plan of action in the case of a loss as well as a win. Another consequence of Forex trading is overconfidence. Overconfidence has caused many traders to engage other more costly and more risky trades following a win or series of wins. You will have to be responsible to dedicate the time necessary to track and analyze the trades that you engage. It only makes since that you engage a number a trades that you are reasonably able to manage during a given trading session. Forex trading can also become addictive for certain personalities. Your Forex trading strategy should include indicators that alert you when it is time to enter or exit trading. You cannot become overconfident about a win or series of wins. Likewise you cannot become too depressed over a loss or series of losses. FOREX trading systems are based on calculated risks and the wrong calculation leads to more risk and the potential for more loss.
by Andrew Daigle
The Forex market incorporates two primary types of Forex trading strategies. One such Forex strategy is based on a fundamental analysis and the other is based on a technical analysis. As a trader, you will likely have to incorporate both types of Forex strategies in your overall Forex trading strategy. Fundamental analyses are based on economic factors while technical analyses are based on price. There is a general consensus among market participants that the most highly traded currency pairs in the Forex market tend to be technical and the more exotic currency pairs tend to be more fundamental.
While both types of analysis are necessary for successful and profitable trades, most traders tend to rely more on one type than the other. When your Forex trading strategy incorporates technical analysis, you must be prepared to deal with the mathematical concepts necessary to manipulate pricing data. Likewise, when you incorporate fundamental analysis in your trading strategy, you must be prepared to handle the multitude of economic factors necessary to base your trades. In the end, the variety of economic data must be converted into price predictions and many traders resort to technical analysis because it is thought to have a built in mechanism for completing the conversion. However, incorporating a purely technical Forex trading strategy without regard for the fundamental aspects of the market is much like trading on luck. Sometimes you win, sometimes not.
Other factors that will influence your Forex trading strategy are your ability to manage money and to handle the psychological implications of participating in the Forex market. While many people have profited from their Forex trading strategies, losses are all but guaranteed with Forex trading systems. One of the nuances of Forex trading is that it involves calculated risks. If your financial situation or emotional circumstance is such that you cannot afford to sustain losses, you will likely loose more than your investment dollars, particularly if your losses are easily converted to physical illness.
It is important to develop a Forex trading strategy that complements your lifestyle and temperament. You need to understand the investment, the risks and the impact that your choices will have on your investment dollars and your lifestyle. In Forex trading, it is quite possible for a loss to multiple itself as market conditions vary and change. Your Forex trading strategy must include a plan of action in the case of a loss as well as a win. Another consequence of Forex trading is overconfidence. Overconfidence has caused many traders to engage other more costly and more risky trades following a win or series of wins. You will have to be responsible to dedicate the time necessary to track and analyze the trades that you engage. It only makes since that you engage a number a trades that you are reasonably able to manage during a given trading session. Forex trading can also become addictive for certain personalities. Your Forex trading strategy should include indicators that alert you when it is time to enter or exit trading. You cannot become overconfident about a win or series of wins. Likewise you cannot become too depressed over a loss or series of losses. FOREX trading systems are based on calculated risks and the wrong calculation leads to more risk and the potential for more loss.
วันอาทิตย์ที่ 3 กุมภาพันธ์ พ.ศ. 2551
Forex Starter Pathway. 3 Ways to Avoid Failure
Forex Starter Pathway. 3 Ways to Avoid Failure
by Cas Jones
Do you like to learn about new and interesting things? If so, then this article will be right up your alley!
Is a well-known reality that most of the beginners give up their forex trading and lose their trading capital completely during the first year of forex trading. After that interval 9 of 10 novices quit forex as a traders eternally. So if you don't want to be among them (and I hope you don't) it'll be helpful for you to learn on their mistakes.
So what are that pitfalls and on the forex trader's way? I'll put 3 of them in this article.
First is: beginners regularly try to oversmart the forex market. As you might know already, forex market is massive - about 3 trillion worth of dollars a day is exchanged on it! From here on out, we will give you tips on what can make this subject a little more helpful to you.
Also try to see the trend. Don't trade against it! "Trend is your friend" - remember that. I'll explain in detail. If you do day trading, it's weekly or 2-3 week trend. If you trade mid-term, it's monthly and/or quarterly (and sometimes annual) trend. If you trade long term, it's yearly trend. You got the idea. Just identify it and then stay with it.
Fack: a lot of forex starters try to be profitable every day. But reality is - there are a lot of 'bad days' on forex market for every forex trading system be it intra-day, middle-term or long-term trading. There are even bad months for every tactic. That's natural. That's part and parcel of forex trading process, and I mean not only forex trading but stocks, futures, spreads trading etc.
So please do not try to set a goal like "$100 a day at any cost". It won't work. You'll just jump in the bad market again and again, exhaust all your previous profits and then - drain your deposit. Instead don't let that bad day, week or month stop you. Don't give up when bad deals come in a row, but please do not try to recoup them immediately, by any means on any market. Instead wait for a good day, week or month, learn to see it when it comes and use it profitably.
Third stumbling-block of most traders is... their fear and greed. If you let your emotions come into your forex trading game - you're guaranteed to lose your money long-term. Discipline is one of the must-have traits in such thing as trading, and forex trading isn't an exclusion. So develop your forex trading system, set exact set of rules and then adhere to them. That's crucial for your trading, your money and your success.
And also, if you're a classic forex starter with no trading experience at all or little experience, I strongly recommend you not to make massive deposits. Just open a mini-forex account (as for me, $500-2000 will be quite enough) and try it for the first 2-3 months. If you're profitable on it, then move on.
For the conclusion, I persuade you to use at least some of these forex starter recommendations to avoid the core mistakes of all novices. I wish You good luck with your trading! Hope this article helps you.
by Cas Jones
Do you like to learn about new and interesting things? If so, then this article will be right up your alley!
Is a well-known reality that most of the beginners give up their forex trading and lose their trading capital completely during the first year of forex trading. After that interval 9 of 10 novices quit forex as a traders eternally. So if you don't want to be among them (and I hope you don't) it'll be helpful for you to learn on their mistakes.
So what are that pitfalls and on the forex trader's way? I'll put 3 of them in this article.
First is: beginners regularly try to oversmart the forex market. As you might know already, forex market is massive - about 3 trillion worth of dollars a day is exchanged on it! From here on out, we will give you tips on what can make this subject a little more helpful to you.
Also try to see the trend. Don't trade against it! "Trend is your friend" - remember that. I'll explain in detail. If you do day trading, it's weekly or 2-3 week trend. If you trade mid-term, it's monthly and/or quarterly (and sometimes annual) trend. If you trade long term, it's yearly trend. You got the idea. Just identify it and then stay with it.
Fack: a lot of forex starters try to be profitable every day. But reality is - there are a lot of 'bad days' on forex market for every forex trading system be it intra-day, middle-term or long-term trading. There are even bad months for every tactic. That's natural. That's part and parcel of forex trading process, and I mean not only forex trading but stocks, futures, spreads trading etc.
So please do not try to set a goal like "$100 a day at any cost". It won't work. You'll just jump in the bad market again and again, exhaust all your previous profits and then - drain your deposit. Instead don't let that bad day, week or month stop you. Don't give up when bad deals come in a row, but please do not try to recoup them immediately, by any means on any market. Instead wait for a good day, week or month, learn to see it when it comes and use it profitably.
Third stumbling-block of most traders is... their fear and greed. If you let your emotions come into your forex trading game - you're guaranteed to lose your money long-term. Discipline is one of the must-have traits in such thing as trading, and forex trading isn't an exclusion. So develop your forex trading system, set exact set of rules and then adhere to them. That's crucial for your trading, your money and your success.
And also, if you're a classic forex starter with no trading experience at all or little experience, I strongly recommend you not to make massive deposits. Just open a mini-forex account (as for me, $500-2000 will be quite enough) and try it for the first 2-3 months. If you're profitable on it, then move on.
For the conclusion, I persuade you to use at least some of these forex starter recommendations to avoid the core mistakes of all novices. I wish You good luck with your trading! Hope this article helps you.
วันเสาร์ที่ 2 กุมภาพันธ์ พ.ศ. 2551
Introduction to forex
Introduction to forex
by Michael Nessim
Forex..What a strange word for those who first hear about it..The funny thing is that forex is not indexed in the normal dictionary scanning many paragraphs..Even the one scanning the blogger we are writing in now. So,What is forex? and why is it that famous? My first meeting with forex i felt it is hard and strange and I will not be able to deal with or understand..And with further reading,I realized I was a bit wrong,and i enjoyed every minute I pass dealing with forex. Well..First thing to know,Forex stands for (foreign currency exchange trading) in forex you simply trade,which means you buy and sell,when you buy at a price and sell at a higher price you simply earn,but when you sell at a lower price you lose ( I think that rule is simple ) and It applies in forex because forex is simply trading. We said in forex we trade with foreign currencies.Not with ordinary goods..So what's the difference,and how do we trade with currencies? Is it true that i can simply do it? Well..Answers are available..and lets start with answering the last question..YES you can simple trade with foreign currencies (trade in forex) through firms that are called forex brokerage firms( we will review them later) They simplify the work for you and you will understand everything later. The next question we will answer is..Why trading with foreign currencies? The forex market is the largest market on earth and it has many advantages:
1-The most profitable as it is the world's largest marketplace..Forex accounts for 3.2 trillion dollars of trading per day,imagine how big this number is,and if you can not imagine let me tell you that the New York stock market( the biggest stock market on earth) accounts for 16 billion dollar per day ( Forex is 75 times higher) and London stock market accounts for 11 billion dollars per day.. From these information,you can imagine how much profit you can make out of forex Per day.
2-No need for a centralized location..traditional trading brings buyers and sellers in a centralized location ( called the trading floor) this was a great burden with those working in stock markets as they have to work full time..In forex,You simply work online,you just need good connection and go..You can work part time besides your normal career and your life will never get affected.Another advantage about that is the ability to access forex anywhere using your cell phone..It is open to everyone anytime
3-It is the world's most powerful and persistent market..regardless of the negative economic indicators. Currencies have some macro economic nature..Which gives them a great vice,They trend better than every other market..Which means,Other goods and commodities are easily affected and their prices and fundamentals change overnight without warning ( as what happened after September 11) but currencies as they are always and consistently needed they trend better and their market( which is called Forex) is much more stable and less random ( you can notice how interest rates change gradually and in small increments to understand what i mean..You can not wake up to find interest rates increased by 5 % suddenly)
From what we see above..Forex is the best market you can start to work with,This really supplies all what a small or large trader needs,profitable with minimum dangers that can be easily controlled.
But When did forex start to exist? Well..Forex started to emerge in 1978..Forex emerged when worldwide currencies were allowed to float according to supply and demand..And this explains the fundamentals of forex and what we are doing in it. In forex we are participating in the profitable fluctuations in world currencies..Everyday currencies rates and prices change a lot. and this makes forex a continuous source of ongoing transactions which would never stop( We need currencies to buy everything,So It will never happen that currencies won't get sold and bought everyday.And this makes our profits)
7 years after the gold standard was abandoned till 1995,forex trading was limited to banks and large multinational corporations. After 1995,and thanks to the technology revolution and the high speed internet connections that became nearly everywhere..Forex was available to everyone everywhere.
Because of risk manageability and the absence of geographic boundaries made forex the world's best market..It is open to everyone and you can start making money as soon as you understand its fundamentals and techniques..
by Michael Nessim
Forex..What a strange word for those who first hear about it..The funny thing is that forex is not indexed in the normal dictionary scanning many paragraphs..Even the one scanning the blogger we are writing in now. So,What is forex? and why is it that famous? My first meeting with forex i felt it is hard and strange and I will not be able to deal with or understand..And with further reading,I realized I was a bit wrong,and i enjoyed every minute I pass dealing with forex. Well..First thing to know,Forex stands for (foreign currency exchange trading) in forex you simply trade,which means you buy and sell,when you buy at a price and sell at a higher price you simply earn,but when you sell at a lower price you lose ( I think that rule is simple ) and It applies in forex because forex is simply trading. We said in forex we trade with foreign currencies.Not with ordinary goods..So what's the difference,and how do we trade with currencies? Is it true that i can simply do it? Well..Answers are available..and lets start with answering the last question..YES you can simple trade with foreign currencies (trade in forex) through firms that are called forex brokerage firms( we will review them later) They simplify the work for you and you will understand everything later. The next question we will answer is..Why trading with foreign currencies? The forex market is the largest market on earth and it has many advantages:
1-The most profitable as it is the world's largest marketplace..Forex accounts for 3.2 trillion dollars of trading per day,imagine how big this number is,and if you can not imagine let me tell you that the New York stock market( the biggest stock market on earth) accounts for 16 billion dollar per day ( Forex is 75 times higher) and London stock market accounts for 11 billion dollars per day.. From these information,you can imagine how much profit you can make out of forex Per day.
2-No need for a centralized location..traditional trading brings buyers and sellers in a centralized location ( called the trading floor) this was a great burden with those working in stock markets as they have to work full time..In forex,You simply work online,you just need good connection and go..You can work part time besides your normal career and your life will never get affected.Another advantage about that is the ability to access forex anywhere using your cell phone..It is open to everyone anytime
3-It is the world's most powerful and persistent market..regardless of the negative economic indicators. Currencies have some macro economic nature..Which gives them a great vice,They trend better than every other market..Which means,Other goods and commodities are easily affected and their prices and fundamentals change overnight without warning ( as what happened after September 11) but currencies as they are always and consistently needed they trend better and their market( which is called Forex) is much more stable and less random ( you can notice how interest rates change gradually and in small increments to understand what i mean..You can not wake up to find interest rates increased by 5 % suddenly)
From what we see above..Forex is the best market you can start to work with,This really supplies all what a small or large trader needs,profitable with minimum dangers that can be easily controlled.
But When did forex start to exist? Well..Forex started to emerge in 1978..Forex emerged when worldwide currencies were allowed to float according to supply and demand..And this explains the fundamentals of forex and what we are doing in it. In forex we are participating in the profitable fluctuations in world currencies..Everyday currencies rates and prices change a lot. and this makes forex a continuous source of ongoing transactions which would never stop( We need currencies to buy everything,So It will never happen that currencies won't get sold and bought everyday.And this makes our profits)
7 years after the gold standard was abandoned till 1995,forex trading was limited to banks and large multinational corporations. After 1995,and thanks to the technology revolution and the high speed internet connections that became nearly everywhere..Forex was available to everyone everywhere.
Because of risk manageability and the absence of geographic boundaries made forex the world's best market..It is open to everyone and you can start making money as soon as you understand its fundamentals and techniques..
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