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Auto forex system trading is the perfect strategy for investors or brokers who either do not have time to watch the market closely or trying to diversify the portfolio. It is like having a professional to trade your account for you, taking care of your profits.
Automated forex trading systems replace the need for manually buying or selling the currencies. With auto forex system trading, you can continue to focus on your own trading strategies and can take benefits of other strategies as well.
Auto forex system trading can be of different types. The systems are based on software and algorithms to generate trading signals. Different automated trading platforms use varied software to generate the trading signals. You can run the system from your own desktop or can leave the trading completely to professionals through your managed accounts.
Auto forex system trading platform is configured to automatically open and close positions at specified parameters. As the forex markets in different countries operate in different time zones, the trading practically continues round the clock. With a managed account in your auto forex system trading, whenever a trade signal is generated, your order will be placed into your account while you are away working or sleeping.
Auto forex system trading is free of the traders’ emotion. As the operations are strictly software driven, you need to concentrate on the strategic decisions, which will be executed automatically. As the automated trading platforms have proper risk management features, your trades will be secured and safe.
Many online brokers offer auto forex system trading platforms for free. You can download the system in your desktop. For a subscription or with the spread, the online broker can manage your investment.
If you purchase an automated forex trading system, the vendor may offer you free trading alert services when you can receive signals whenever a trade is identified. In many trading platforms, your order can be placed automatically, whenever a signal is generated and, therefore, you never miss a trading opportunity and save your time as well.
To take the maximum advantage of the auto forex trading system, you need planning and self-preparation. Always determine beforehand how much of your trading capital you will risk. Work on a demo account for few months before choosing the automated trading platform.
You must also monitor how your accounts are doing on a regular basis. A successful auto forex trading system should be based on low leverage and multiple entry. Always ask for the history and record of past performance of the auto forex system trading platform. The trading platform should be simple enough for you to operate
Tuesday, May 18, 2010
Forex Traders Need To Know About Crossing Currency
Why did the currency cross the road? No this has nothing to do with the term crossing currency
Crossing currency on the Forex is one of the most profitable ways to earn money for many investors. The Forex is unlike any other type of market in the world. The foreign exchange market is extremely liquid and involves over two trillion dollars everyday. The top three currencies that are most traded on the Forex are the US dollar, the Japanese yen and the Euro. All of these currencies are traded the most out of all other forms of currency.
With the foreign exchange currency being so large, it is very liquid. Crossing currency using the Forex allows a large amount of flexibility for the trader and investor. The Forex gives the trade the ability to buy and sell currency quickly so that they are never stuck in any investment. When investors use online trading as their form of crossing currency, the trading platform can be pre-set to the preferences of the trader. If the trade is not going as expected, the platform can be set to stop the trade, allowing the trader to lose less money while using the Forex.
Learning to trade on the foreign exchange, also called the Forex, market can be both exciting and profitable. In order to trade successfully on the Forex it is essential to understand the way the market works, the terminology and the trends. Brokers and financial institutions are often the best way for traders to learn how to use the Forex for profit.
When an investor or individual wants to trade one type of currency for another, it is called exchanging currency, or crossing currency. Currency crossing is the main goal of trading on the Forex. For example, if a business or investor has US dollars and needs to trade those into Japanese yens, a broker would do this on the Forex. Many investors trade currency to make a profit. When a certain type of currency is bought at a low exchange rate, the currency can be sold once the rate increases to turn a profit.
Learning to cross currency in the Forex can be complicated. The biggest factor in trading on the Forex is having knowledge about the Forex and how it works. In addition, there are many benefits of using the Forex for trading. Crossing currency gives traders the leverage to make large profits while keeping the risk of losing capital to a minimum. In ideal conditions, an investor that puts in $500 could potentially make over $100,000.
Crossing currency also allows traders and investors to profit in rising and falling markets. This is another difference between the stock market and the foreign exchange market. With the stock market, an investor can only make money when the shares are on the rise. When there is a falling "bear" market or the stocks decline, investors cannot make money on the stock market. When crossing currency in the Forex, this is not true. This is one appealing factor of trading on the Forex. Investors can make large amounts of profits when a currency pair is either up or down. Crossing currency in the right direction can always make profits.
Another benefit of using the Forex for currency crossing, or trading is that the Forex is always open. When investing the in the stock market, the trading is limited to when the market is open. It has a definite closing time during the business week. This is not true of the foreign exchange currency. The Forex is open all the time and does not close. Traders benefit from the ability to trade twenty-four hours a day using the Internet.
Learning to trade on the Forex can be easy when new investors go through an experienced broker or financial institution. Also, there are many ways to learn how to trade on the Forex using free demo accounts available on the Internet. These websites offer valuable resources and free ways for the new investor to practice using the Forex. This is very important for those who want to learn the ins and outs of crossing currency before opening an actual account. Mini Forex accounts are also a good way for the new investor to trade currency without having the risk of a regular account. A mini account allows traders to use a smaller amount of money as their initial investment.
Crossing currency on the Forex is one of the most profitable ways to earn money for many investors. The Forex is unlike any other type of market in the world. The foreign exchange market is extremely liquid and involves over two trillion dollars everyday. The top three currencies that are most traded on the Forex are the US dollar, the Japanese yen and the Euro. All of these currencies are traded the most out of all other forms of currency.
With the foreign exchange currency being so large, it is very liquid. Crossing currency using the Forex allows a large amount of flexibility for the trader and investor. The Forex gives the trade the ability to buy and sell currency quickly so that they are never stuck in any investment. When investors use online trading as their form of crossing currency, the trading platform can be pre-set to the preferences of the trader. If the trade is not going as expected, the platform can be set to stop the trade, allowing the trader to lose less money while using the Forex.
Learning to trade on the foreign exchange, also called the Forex, market can be both exciting and profitable. In order to trade successfully on the Forex it is essential to understand the way the market works, the terminology and the trends. Brokers and financial institutions are often the best way for traders to learn how to use the Forex for profit.
When an investor or individual wants to trade one type of currency for another, it is called exchanging currency, or crossing currency. Currency crossing is the main goal of trading on the Forex. For example, if a business or investor has US dollars and needs to trade those into Japanese yens, a broker would do this on the Forex. Many investors trade currency to make a profit. When a certain type of currency is bought at a low exchange rate, the currency can be sold once the rate increases to turn a profit.
Learning to cross currency in the Forex can be complicated. The biggest factor in trading on the Forex is having knowledge about the Forex and how it works. In addition, there are many benefits of using the Forex for trading. Crossing currency gives traders the leverage to make large profits while keeping the risk of losing capital to a minimum. In ideal conditions, an investor that puts in $500 could potentially make over $100,000.
Crossing currency also allows traders and investors to profit in rising and falling markets. This is another difference between the stock market and the foreign exchange market. With the stock market, an investor can only make money when the shares are on the rise. When there is a falling "bear" market or the stocks decline, investors cannot make money on the stock market. When crossing currency in the Forex, this is not true. This is one appealing factor of trading on the Forex. Investors can make large amounts of profits when a currency pair is either up or down. Crossing currency in the right direction can always make profits.
Another benefit of using the Forex for currency crossing, or trading is that the Forex is always open. When investing the in the stock market, the trading is limited to when the market is open. It has a definite closing time during the business week. This is not true of the foreign exchange currency. The Forex is open all the time and does not close. Traders benefit from the ability to trade twenty-four hours a day using the Internet.
Learning to trade on the Forex can be easy when new investors go through an experienced broker or financial institution. Also, there are many ways to learn how to trade on the Forex using free demo accounts available on the Internet. These websites offer valuable resources and free ways for the new investor to practice using the Forex. This is very important for those who want to learn the ins and outs of crossing currency before opening an actual account. Mini Forex accounts are also a good way for the new investor to trade currency without having the risk of a regular account. A mini account allows traders to use a smaller amount of money as their initial investment.
A Look Back At Forex Trading
Cable continued its climb today with solid movement. Last nights trading gives me an opportunity to discuss another key factor in our strategy. When we got up this morning we had already closed our smaller trade for 40 pips and had a mild pullback, we closed our second bigger trA Look Back At Forex Trading - 4/19/06
Autor: eddie0816 :: Views: 117 :: Send to Your Friends :: View PDF :: Print View
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Cable continued its climb today with solid movement. Last nights trading gives me an opportunity to discuss another key factor in our strategy. When we got up this morning we had already closed our smaller trade for 40 pips and had a mild pullback, we closed our second bigger trade at 1.7720 for only 35 pips at 8:00AM.
Had we stayed in our trade we would have closed it for 85 Pips @ 1.7770. This looks like we lost out on 50 pips, but you can't lose what you never had. We have strict rules about certain news, and those rules told us we had to close our trades before the release of the PPI and housing starts at 8:30 AM.
The reason we have this rule is simple, in our years of trading experience we have seen 35 pip positive trade become a 40 negative stop loss in mere minutes. After witnessing this again and again, we decided it was much better to take the sure 35 pips off the table and bank them, and not risk them with the unpredictable move of a significant piece of.
Last night netted us 70 pips, not too bad, and with Cable heading into a more trending market, we are poised to make more.
Tonight we are trading around 1.7810. We are again looking for a buy. There is some support around the big number 1.7800, and even more around 1.7870. The first resistance is going to be around 1.7900. All indicators appear to be signaling that cable will continue up and test the resistance at 1.7909.
The most important thing you can do is get educated. Learn about investing and all the aspects involved. Don't trust your finances to anyone else no matter how lofty their promises.
Be confident in yourself and your abilities and I think you'll be pleasantly surprised with the results that you will see.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with a Forex trading education consisting of a Forex Trading Course or Forex Seminar. ade at 1.7720 for only 35 pips at 8:00AM.
Had we stayed in our trade we would have closed it for 85 Pips @ 1.7770. This looks like we lost out on 50 pips, but you can't lose what you never had. We have strict rules about certain news, and those rules told us we had to close our trades before the release of the PPI and housing starts at 8:30 AM.
The reason we have this rule is simple, in our years of trading experience we have seen 35 pip positive trade become a 40 negative stop loss in mere minutes. After witnessing this again and again, we decided it was much better to take the sure 35 pips off the table and bank them, and not risk them with the unpredictable move of a significant piece of.
Last night netted us 70 pips, not too bad, and with Cable heading into a more trending market, we are poised to make more.
Tonight we are trading around 1.7810. We are again looking for a buy. There is some support around the big number 1.7800, and even more around 1.7870. The first resistance is going to be around 1.7900. All indicators appear to be signaling that cable will continue up and test the resistance at 1.7909.
The most important thing you can do is get educated. Learn about investing and all the aspects involved. Don't trust your finances to anyone else no matter how lofty their promises.
Be confident in yourself and your abilities and I think you'll be pleasantly surprised with the results that you will see.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with a Forex trading education consisting of a Forex Trading Course or Forex Seminar.
Autor: eddie0816 :: Views: 117 :: Send to Your Friends :: View PDF :: Print View
Social Bookmarking
Cable continued its climb today with solid movement. Last nights trading gives me an opportunity to discuss another key factor in our strategy. When we got up this morning we had already closed our smaller trade for 40 pips and had a mild pullback, we closed our second bigger trade at 1.7720 for only 35 pips at 8:00AM.
Had we stayed in our trade we would have closed it for 85 Pips @ 1.7770. This looks like we lost out on 50 pips, but you can't lose what you never had. We have strict rules about certain news, and those rules told us we had to close our trades before the release of the PPI and housing starts at 8:30 AM.
The reason we have this rule is simple, in our years of trading experience we have seen 35 pip positive trade become a 40 negative stop loss in mere minutes. After witnessing this again and again, we decided it was much better to take the sure 35 pips off the table and bank them, and not risk them with the unpredictable move of a significant piece of.
Last night netted us 70 pips, not too bad, and with Cable heading into a more trending market, we are poised to make more.
Tonight we are trading around 1.7810. We are again looking for a buy. There is some support around the big number 1.7800, and even more around 1.7870. The first resistance is going to be around 1.7900. All indicators appear to be signaling that cable will continue up and test the resistance at 1.7909.
The most important thing you can do is get educated. Learn about investing and all the aspects involved. Don't trust your finances to anyone else no matter how lofty their promises.
Be confident in yourself and your abilities and I think you'll be pleasantly surprised with the results that you will see.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with a Forex trading education consisting of a Forex Trading Course or Forex Seminar. ade at 1.7720 for only 35 pips at 8:00AM.
Had we stayed in our trade we would have closed it for 85 Pips @ 1.7770. This looks like we lost out on 50 pips, but you can't lose what you never had. We have strict rules about certain news, and those rules told us we had to close our trades before the release of the PPI and housing starts at 8:30 AM.
The reason we have this rule is simple, in our years of trading experience we have seen 35 pip positive trade become a 40 negative stop loss in mere minutes. After witnessing this again and again, we decided it was much better to take the sure 35 pips off the table and bank them, and not risk them with the unpredictable move of a significant piece of.
Last night netted us 70 pips, not too bad, and with Cable heading into a more trending market, we are poised to make more.
Tonight we are trading around 1.7810. We are again looking for a buy. There is some support around the big number 1.7800, and even more around 1.7870. The first resistance is going to be around 1.7900. All indicators appear to be signaling that cable will continue up and test the resistance at 1.7909.
The most important thing you can do is get educated. Learn about investing and all the aspects involved. Don't trust your finances to anyone else no matter how lofty their promises.
Be confident in yourself and your abilities and I think you'll be pleasantly surprised with the results that you will see.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with a Forex trading education consisting of a Forex Trading Course or Forex Seminar.
Trading In Black And White Forex Trading Newsletter - 5/9/06
When is a night that you don't get into a trade a good trading night? Well the obvious answer is when the market goes against you, but since you did not get to your entry price you did not lose any money.
Last night gave us an example of what I believe is an even better no trade night. We missed our entry by one pip plus the spread. Cable dropped to 1.8581 and our entry was 1.8580.
Most of you ask how frustrating it is to miss a 160-pip profit night by one pip, that's right we hit both of our targets. My answer is it's not frustrating at all. I can honestly answer this way because number one, and I alluded to this a little in last nights news letter, the market is completely random, so why should I feel frustrated by missing a trade by one pip, to the contrary I am glad to been that close to the entry.
And number two every trader needs a little luck, to have a trade go in there favor. We have had six out of the last seven nights go in our favor for well over 700 pips. I feel fortunate that I have had more than my share of luck.
It appears Cable is sliding into some sideways consolidation trading. We do not feel this will last long. This has been a fairly quiet week so far, with no significant news. That all changes Wednesday with the FOMC Interest Rate Statement.
With that said we expect the rise to continue towards the 1.9549 previous high. We must also watch the 4 hour charts as the MACD is in divergence.
Last night we set our entries at 1.8580. We had profit targets of 1.8640 and 1.8680, we miss the entry by one pips but the target were perfect.
Tonight we are trading around 1.8550. We will be looking to go long again, and we will continue cautiously watching for an unexpected reversal.
To learn more about how we find these trading levels and dominate the Forex market, you must get a Forex trading education. Whether it be a Forex trading course of Forex seminar.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course or Forex Seminar.
Last night gave us an example of what I believe is an even better no trade night. We missed our entry by one pip plus the spread. Cable dropped to 1.8581 and our entry was 1.8580.
Most of you ask how frustrating it is to miss a 160-pip profit night by one pip, that's right we hit both of our targets. My answer is it's not frustrating at all. I can honestly answer this way because number one, and I alluded to this a little in last nights news letter, the market is completely random, so why should I feel frustrated by missing a trade by one pip, to the contrary I am glad to been that close to the entry.
And number two every trader needs a little luck, to have a trade go in there favor. We have had six out of the last seven nights go in our favor for well over 700 pips. I feel fortunate that I have had more than my share of luck.
It appears Cable is sliding into some sideways consolidation trading. We do not feel this will last long. This has been a fairly quiet week so far, with no significant news. That all changes Wednesday with the FOMC Interest Rate Statement.
With that said we expect the rise to continue towards the 1.9549 previous high. We must also watch the 4 hour charts as the MACD is in divergence.
Last night we set our entries at 1.8580. We had profit targets of 1.8640 and 1.8680, we miss the entry by one pips but the target were perfect.
Tonight we are trading around 1.8550. We will be looking to go long again, and we will continue cautiously watching for an unexpected reversal.
To learn more about how we find these trading levels and dominate the Forex market, you must get a Forex trading education. Whether it be a Forex trading course of Forex seminar.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course or Forex Seminar.
A Look Back At Forex Trading - 4/18/06
Cable final broke through the super resistance at 1.7600 yesterday. Even though we had a losing trade last night, I have to say I am glad to see that tight range behind us. Maybe now we will see a few prolonged and definable trends.
If this is the case it will make it much easier to make a good profitable trade. On the other hand Cable could just as easily slide right back into a consolidation sideway market. Only time will tell.
We we lick our wound from last night and bid farewell to the 1.7600 resistance level. It served us well over the past few months holding on at least a half a dozen occasions. Lets take a look at last night and see what it took to break that resistance. Was it a 20, 40 or 60 pip move, no way? It took a lot more than that to break through, it was a 150 pip move that did the job. Only a move of this magnitude would have the momentum to break and hold above the established resistance.
Last weeks trades were not bad, but last night was not so much. We now have a possible trending market to play for the first time since the first of February.
Tonight we are trading around 1.7710. We are looking for a buy for the first time in months, and some of our traders are going to play both a buy and a sell at opposite end of the expected range.
There is some support around 1.7706, and even more around 1.7680. The first resistance is going to be around 1.7750. We do like to caution traders on making too aggressive of an entry, the 1 hour MACD is still on the sell side of the signal line, although there appears to be some divergence on this chart recently. To learn more about how we teach traders to successfully trade the forex market, be sure to get yourself a top quality forex trading education. One that includes either a forex seminar or a forex trading course.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course.or Forex Seminar
If this is the case it will make it much easier to make a good profitable trade. On the other hand Cable could just as easily slide right back into a consolidation sideway market. Only time will tell.
We we lick our wound from last night and bid farewell to the 1.7600 resistance level. It served us well over the past few months holding on at least a half a dozen occasions. Lets take a look at last night and see what it took to break that resistance. Was it a 20, 40 or 60 pip move, no way? It took a lot more than that to break through, it was a 150 pip move that did the job. Only a move of this magnitude would have the momentum to break and hold above the established resistance.
Last weeks trades were not bad, but last night was not so much. We now have a possible trending market to play for the first time since the first of February.
Tonight we are trading around 1.7710. We are looking for a buy for the first time in months, and some of our traders are going to play both a buy and a sell at opposite end of the expected range.
There is some support around 1.7706, and even more around 1.7680. The first resistance is going to be around 1.7750. We do like to caution traders on making too aggressive of an entry, the 1 hour MACD is still on the sell side of the signal line, although there appears to be some divergence on this chart recently. To learn more about how we teach traders to successfully trade the forex market, be sure to get yourself a top quality forex trading education. One that includes either a forex seminar or a forex trading course.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course.or Forex Seminar
Sunday, May 16, 2010
This Forex Tip Could Be Worth Its Weight In Gold
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.
*Also when posting a message, you need to include your location (initials are optional) and usually only one identity is permitted per forum.
So before you start forex trading, go out and find a good forex forum. The strategies you could learn and the relationships you could develop, could be worth their weight in gold.
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.
*Also when posting a message, you need to include your location (initials are optional) and usually only one identity is permitted per forum.
So before you start forex trading, go out and find a good forex forum. The strategies you could learn and the relationships you could develop, could be worth their weight in gold.
Hot Tips for Successful Online Forex Trading - Part One
There is no one-size-fits all solution for online forex trading. You will do your most successful online forex trading with a system that is customized to fit your needs, your style of trading and your risk comfort level. Then you need the discipline to follow your system, capital to work with and a willingness to approach each trade with energy and enthusiasm.
That being said, there are always a few things you can watch for with your online forex trading career. A few pointers that will help you steer clear of mistakes and keep you on the path to success. I`ve gathered some of these useful tips in this article. Keep them in mind for when you`re uncertain what to do, and incorporate them into your system. They will make a difference in your trades.
Online Forex Trading Tip #1 - Never add to a position that is losing. This is one of the few trade rules that you should never break. If you`re losing money on a position exit the trade, don`t add to it. This is how small losses become large losses, which leads to traders no longer trading.
Online Forex Trading Tip #2 - Always set your stop losses and decide when you will take profits before you enter a trade. Place stops that are based on market information, and not your account balance. If a "proper" stop is too expensive for you, don`t make the trade. Be sure to decide when you are going to take your profits and follow through on it. Successful traders are successful because they keep their losses small, and they take their profits often.
Online Forex Trading Tip #3 - Pay attention to the market. Exit and enter trades based on market information. Don`t wait for a price you think the currency should hit when the market has changed direction on you.
Online Forex Trading Tip #4 - There are times when, due to a lack of liquidity or excessive volatility, you should not trade at all. On a similar note, never trade when you are sick. You can`t count on yourself to be alert to the shifts of the markets, and make good decisions.
Online Forex Trading Tip #5 - Trading systems that work in an up market may not work in a down market, and a system that works for trending markets, or for range bound markets may not work in other markets. Have a system for each type of market.
Online Forex Trading Tip #6 - Up market and down market patterns are ALWAYS there, but you have to look for the dominant trends. Always select trades that move with the trends
Online Forex Trading Tip #7 - During the blow-out stage of the market, either up or down, the risk managers are usually issuing margin call position liquidation orders. They don't generally check the screen to see what`s overbought or oversold; they just keep issuing liquidation orders. Make sure you stay out of their way.
Online Forex Trading Tip #8 - Trust your instincts. If something feels wrong about a trade, don`t make it. It`s better to be superstitious than to loose money.
Online Forex Trading Tip #9 - Rumour is king. Buy when you hear the rumour, sell when you hear the news.
Online Forex Trading Tip #10 - The first and last tick are always the most expensive. Get in the market late, and out early. And never trade in the direction of a gap, either opening or closing.
Online Forex Trading Tip #11 - When everyone else is in, it's time for you to get out. If a stock or currency is overbought, it`s time to exit your position.
That being said, there are always a few things you can watch for with your online forex trading career. A few pointers that will help you steer clear of mistakes and keep you on the path to success. I`ve gathered some of these useful tips in this article. Keep them in mind for when you`re uncertain what to do, and incorporate them into your system. They will make a difference in your trades.
Online Forex Trading Tip #1 - Never add to a position that is losing. This is one of the few trade rules that you should never break. If you`re losing money on a position exit the trade, don`t add to it. This is how small losses become large losses, which leads to traders no longer trading.
Online Forex Trading Tip #2 - Always set your stop losses and decide when you will take profits before you enter a trade. Place stops that are based on market information, and not your account balance. If a "proper" stop is too expensive for you, don`t make the trade. Be sure to decide when you are going to take your profits and follow through on it. Successful traders are successful because they keep their losses small, and they take their profits often.
Online Forex Trading Tip #3 - Pay attention to the market. Exit and enter trades based on market information. Don`t wait for a price you think the currency should hit when the market has changed direction on you.
Online Forex Trading Tip #4 - There are times when, due to a lack of liquidity or excessive volatility, you should not trade at all. On a similar note, never trade when you are sick. You can`t count on yourself to be alert to the shifts of the markets, and make good decisions.
Online Forex Trading Tip #5 - Trading systems that work in an up market may not work in a down market, and a system that works for trending markets, or for range bound markets may not work in other markets. Have a system for each type of market.
Online Forex Trading Tip #6 - Up market and down market patterns are ALWAYS there, but you have to look for the dominant trends. Always select trades that move with the trends
Online Forex Trading Tip #7 - During the blow-out stage of the market, either up or down, the risk managers are usually issuing margin call position liquidation orders. They don't generally check the screen to see what`s overbought or oversold; they just keep issuing liquidation orders. Make sure you stay out of their way.
Online Forex Trading Tip #8 - Trust your instincts. If something feels wrong about a trade, don`t make it. It`s better to be superstitious than to loose money.
Online Forex Trading Tip #9 - Rumour is king. Buy when you hear the rumour, sell when you hear the news.
Online Forex Trading Tip #10 - The first and last tick are always the most expensive. Get in the market late, and out early. And never trade in the direction of a gap, either opening or closing.
Online Forex Trading Tip #11 - When everyone else is in, it's time for you to get out. If a stock or currency is overbought, it`s time to exit your position.
A Look Back At Forex Trading - 4/27/06
Cable continues trading in a tight range from1.7935 to 1.7800. We will continue to play these levels for support and resistance, until on of them is broken with a strong move. With the current situation, and the knee jerk reactions we are seeing, you should stay out of the way when news is being released.
Tomorrow Mr. Bernanke will testify before the Joint Economic Committee of Congress on the U.S. economic outlook, in Washington. The fundamental traders are reacting drastically to minor news, so, when the fed chairman testifies which usually produces significant volatility, we could see huge moves.
Last night we set our entries at 1.7900, we closed our first trade for 40 pips and our second for 60 pips. Some of our traders also took a long position at 1.7800, and they closed their first trade for 60 pips and their second for 100 pips.
I personally only trade with the trend I one direction, but this is a viable, and not to mention a very profitable position. The greatest asset we have in our trading system, is that we encourage our traders to become independent traders with their own personal style and rules.
Tonight we are trading around 1.7856, which is a little lower than we were last night. We will be watching the resistance level around 1.7935 closely to see if it holds once again.
If it does play the range down to the support around 1,7800.
Remember to play it safe, its better to have a safe entry and not get into your trade than to have an over aggressive entry and get sopped out of your trade for a loss. And it has never been more important than now to watch the news, remember the best way to deal with news is to get out of it's way.
To learn more about how we teach traders to successfully trade the forex market, it is imperative to get a quality currency trading education. The foreign exchange is a great tool to trade, but you must be prepared. Either through a Forex Trading Course, or Forex Seminar.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with a Forex Trading Education.
Tomorrow Mr. Bernanke will testify before the Joint Economic Committee of Congress on the U.S. economic outlook, in Washington. The fundamental traders are reacting drastically to minor news, so, when the fed chairman testifies which usually produces significant volatility, we could see huge moves.
Last night we set our entries at 1.7900, we closed our first trade for 40 pips and our second for 60 pips. Some of our traders also took a long position at 1.7800, and they closed their first trade for 60 pips and their second for 100 pips.
I personally only trade with the trend I one direction, but this is a viable, and not to mention a very profitable position. The greatest asset we have in our trading system, is that we encourage our traders to become independent traders with their own personal style and rules.
Tonight we are trading around 1.7856, which is a little lower than we were last night. We will be watching the resistance level around 1.7935 closely to see if it holds once again.
If it does play the range down to the support around 1,7800.
Remember to play it safe, its better to have a safe entry and not get into your trade than to have an over aggressive entry and get sopped out of your trade for a loss. And it has never been more important than now to watch the news, remember the best way to deal with news is to get out of it's way.
To learn more about how we teach traders to successfully trade the forex market, it is imperative to get a quality currency trading education. The foreign exchange is a great tool to trade, but you must be prepared. Either through a Forex Trading Course, or Forex Seminar.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with a Forex Trading Education.
The Number One Reason that Most People Fail in the Forex Market
95% percent of Forex Traders lose their shirts. What is it that successful traders have that the rest don't?
They have a system.
Unsuccessful traders trade with their emotions. Successful traders have a system and stick with it.
1) So your first step is to choose a system.
2) Your next step is to decide how much money you can risk in your portfolio.
3) You then need to decide what percentage of your portfolio you are willing to risk per trade.
4) Then you need to look at the pairs of currencies that you are trading and determine the historical correlation for success. Some currencies naturally trade parallel to each other.
5) Then you need to decide your buys and stop losses, ahead of time. This is one of the most important steps. Know when to pull the trigger before you have to and set it up to happen automatically.
Trading via the Forex trading system is not an easy task. The knowledge required to trade efficiently may take years to obtain. It is essentially a practice makes perfect situation. To avoid potential loss, you must do one of two things: hire a trading professional to handle trading for you, or spend thousands of dollars and possibly years learning the market yourself. Studies have shown that when new investors attempt to trade in the Forex market by themselves, there is about a 95% chance of failure.
We have tested several Forex systems online and have stumbled across one that seems to be the easiest for beginners and advanced trader - the FreedomRocks online trading system. FreedomRocks is a fully automated online trading system that actually does most of the work for you. The trading system works on statistics and numbers rather then human emotion, which is the most common reason why new investors fail. Of course the ultimate decision of how much of your portfolio to risk and whether you want to get into a trade is your decision. With all the other work done for you, all you have to do is buy and sell when the program tells you too. It is truly the easiest way to make money online.
Remember emotion can be the death of your forex trading. Choose a system that takes as much of the emotional component out of your trading, as possible. Go for small gains, instead of waiting for that "big score." Consistant small gains can make you wealthy.
Have patience and stick to your system.
They have a system.
Unsuccessful traders trade with their emotions. Successful traders have a system and stick with it.
1) So your first step is to choose a system.
2) Your next step is to decide how much money you can risk in your portfolio.
3) You then need to decide what percentage of your portfolio you are willing to risk per trade.
4) Then you need to look at the pairs of currencies that you are trading and determine the historical correlation for success. Some currencies naturally trade parallel to each other.
5) Then you need to decide your buys and stop losses, ahead of time. This is one of the most important steps. Know when to pull the trigger before you have to and set it up to happen automatically.
Trading via the Forex trading system is not an easy task. The knowledge required to trade efficiently may take years to obtain. It is essentially a practice makes perfect situation. To avoid potential loss, you must do one of two things: hire a trading professional to handle trading for you, or spend thousands of dollars and possibly years learning the market yourself. Studies have shown that when new investors attempt to trade in the Forex market by themselves, there is about a 95% chance of failure.
We have tested several Forex systems online and have stumbled across one that seems to be the easiest for beginners and advanced trader - the FreedomRocks online trading system. FreedomRocks is a fully automated online trading system that actually does most of the work for you. The trading system works on statistics and numbers rather then human emotion, which is the most common reason why new investors fail. Of course the ultimate decision of how much of your portfolio to risk and whether you want to get into a trade is your decision. With all the other work done for you, all you have to do is buy and sell when the program tells you too. It is truly the easiest way to make money online.
Remember emotion can be the death of your forex trading. Choose a system that takes as much of the emotional component out of your trading, as possible. Go for small gains, instead of waiting for that "big score." Consistant small gains can make you wealthy.
Have patience and stick to your system.
Trading In Black And White Forex Trading Newsletter
Cable continues it's range trading, as we approach what should be the ceiling, and if the pattern holds, we should start yet another march down towards 1.7230. Keeping in mind that the last trip down stalled and reversed at around 1.7375.
This range has been in place for months, and until we break 1.7650 on the high side or 1.7200 on the low side, cable will continue to bounce in the range.
On Wednesday night our trade was excellent and yet we did not make our entry price, thus we did not make our trade. You might ask why we feel our trade was excellent, well here is why.
We resisted the temptation to make an aggressive trade and increase our risk of being stopped out. There were several reasons we could have used to try to justify a more aggressive trade, but in our system we teach our trader to stay with the safer trades, it's much more important not to lose profit than it is to gain additional profit.
Our money management and compounding are optimal when utilizing this technique.
Tonight we are trading around 1.7570. We have the super resistance level around 1.7600, that has held earlier in the night. Now is the perfect time to interject another important part of our trading strategies.
If you have missed your optimum entry point because you weren't watching the market DO NOT fall to the temptation of making a bad entry point just because the market has come down off your resistance level.
Set your entry and if the market does not get back to it then so be it, as we have said many many times already, not making a trade is a valid position.
On the support side, we are looking at a range from 1.7480 to 1.7500. To learn more about how we teach traders to successfully trade the forex market it is important to take the time and learn about a forex trading course or other form of forex trading education.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with an Elite Forex Trading Course or Forex Seminar.
This range has been in place for months, and until we break 1.7650 on the high side or 1.7200 on the low side, cable will continue to bounce in the range.
On Wednesday night our trade was excellent and yet we did not make our entry price, thus we did not make our trade. You might ask why we feel our trade was excellent, well here is why.
We resisted the temptation to make an aggressive trade and increase our risk of being stopped out. There were several reasons we could have used to try to justify a more aggressive trade, but in our system we teach our trader to stay with the safer trades, it's much more important not to lose profit than it is to gain additional profit.
Our money management and compounding are optimal when utilizing this technique.
Tonight we are trading around 1.7570. We have the super resistance level around 1.7600, that has held earlier in the night. Now is the perfect time to interject another important part of our trading strategies.
If you have missed your optimum entry point because you weren't watching the market DO NOT fall to the temptation of making a bad entry point just because the market has come down off your resistance level.
Set your entry and if the market does not get back to it then so be it, as we have said many many times already, not making a trade is a valid position.
On the support side, we are looking at a range from 1.7480 to 1.7500. To learn more about how we teach traders to successfully trade the forex market it is important to take the time and learn about a forex trading course or other form of forex trading education.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with an Elite Forex Trading Course or Forex Seminar.
Forex Trading Machines
Forex trading presents a real opportunity to achieve huge financial profits. All that you need is to tread in the market sensibly and use the tools available. Forex trading machine is one such tool. They are automated trading platforms through which you can trade into the market without having in-depth knowledge on forex.
Day by day, forex trading is becoming the most popular alternative career for people from every walk of life. Forex trading machines or the automated trading platforms are making life easier for them. To them it is the dream machine to trade forex that helps them to take each and every decision for their trading.
For veteran traders, forex trading machines are a place for experimenting different trading strategies. According to seasoned forex traders price driven forex trading or PDFT is one such strategy that works like a forex trading machine, churning out profits from every trade.
PDFT is a method free of technical indicators or any other trading tool. Therefore, according to experienced traders, this system works like a forex trading machine which is perfectly mechanical. Anyone will be able to trade following simple instructions given by the automated system.
But this exceedingly powerful forex trading machine can be exploited to its fullest potential with little innovation and understanding. If you learn the tricks of the trade, you will be able to use the ‘machine’ even better. You must try to learn the essential basics of the forex trade before you actually start the trading.
An e-book by Avi Frister titled “Forex Trading Machine” introduces the readers to the forex market without bothering them with technical and fundamental indicators. The book is easy to understand and use. “Forex Trading Machine” will not teach you pivots, chart patterns, MA's or other techniques that demands your experience or judgment.
Instead, it focuses on strict entry and exit rules on basis of price action that eliminates subjectivity from trading. The author claims that after going through the steps, you would be able to trade like a ‘robot’ with guaranteed profits.
Introductory chapters of “Forex Trading Machine” informs the reader about basics of the forex including explanation of currency quotes, pips, margins, daily ranges, technical and fundamental analysis etc. The book also describes how one can develop a disciplined trading strategy, control over emotion like fear and greed, watch the market for assessing the trends etc.
The book “Forex Trading Machine” outlines specific strategies following which you can develop a disciplined trading practice. These strategies are supported with risk management measures, which prevent you from incurring losses.
The main Forex trading strategy described in the book is ‘Cash Cow’ which is perfect for a person who does not have time to analyze the forex market and forex charts or to sit in front of the terminal throughout the trading hours. Advanced traders, who are capable of employing more than one strategies will be immensely helped with the book in understanding technical or fundamental indicators.
Day by day, forex trading is becoming the most popular alternative career for people from every walk of life. Forex trading machines or the automated trading platforms are making life easier for them. To them it is the dream machine to trade forex that helps them to take each and every decision for their trading.
For veteran traders, forex trading machines are a place for experimenting different trading strategies. According to seasoned forex traders price driven forex trading or PDFT is one such strategy that works like a forex trading machine, churning out profits from every trade.
PDFT is a method free of technical indicators or any other trading tool. Therefore, according to experienced traders, this system works like a forex trading machine which is perfectly mechanical. Anyone will be able to trade following simple instructions given by the automated system.
But this exceedingly powerful forex trading machine can be exploited to its fullest potential with little innovation and understanding. If you learn the tricks of the trade, you will be able to use the ‘machine’ even better. You must try to learn the essential basics of the forex trade before you actually start the trading.
An e-book by Avi Frister titled “Forex Trading Machine” introduces the readers to the forex market without bothering them with technical and fundamental indicators. The book is easy to understand and use. “Forex Trading Machine” will not teach you pivots, chart patterns, MA's or other techniques that demands your experience or judgment.
Instead, it focuses on strict entry and exit rules on basis of price action that eliminates subjectivity from trading. The author claims that after going through the steps, you would be able to trade like a ‘robot’ with guaranteed profits.
Introductory chapters of “Forex Trading Machine” informs the reader about basics of the forex including explanation of currency quotes, pips, margins, daily ranges, technical and fundamental analysis etc. The book also describes how one can develop a disciplined trading strategy, control over emotion like fear and greed, watch the market for assessing the trends etc.
The book “Forex Trading Machine” outlines specific strategies following which you can develop a disciplined trading practice. These strategies are supported with risk management measures, which prevent you from incurring losses.
The main Forex trading strategy described in the book is ‘Cash Cow’ which is perfect for a person who does not have time to analyze the forex market and forex charts or to sit in front of the terminal throughout the trading hours. Advanced traders, who are capable of employing more than one strategies will be immensely helped with the book in understanding technical or fundamental indicators.
A Look Back At Forex Trading
ALast night is what we call a good no trade night. Remember taking no trade is taking a position, and often the safest position. We had several good reasons to take a short position around 1.7360.
Unfortunately the market just dropped, all night, never taking the bounce up we look for our entry. In the morning in was obvious Cable was not going to give us our trade, we had news coming out ( ISM) at 10:00 AM, it was time to get out of the way, and in doing so we prevent a loss of from 30 to 40 Pips.
The ISM news produced a 130 pip spike. Today we have several of the Fed presidents speaking, although none of them appear significant, you need to watch any trades you might be in
Tonight we are trading around 1.7380, our first region of resistance is in the 1,7420 range, and a second region around 1.7450. The strong support From 1.7310 to 1.7280 levels was violated firmly last night. For the next support level we will look around 1.7230.
For those of you who are fans of the candlestick patterns, we had a perfect double bottom form on both the 4 hour and the 1 hour charts yesterday, right before the spike up, I hope you saw it and were able to get in a long position.
Anywhere from 100 to 150 pips could have been had on the move. The double bottom formed in the first couple of hour of the London market, those of you who actively trade the London market were the beneficiary's of a classic pattern that worked to perfection.
I on the other hand missed this as I was studying the backs of my eye lids and not the charts at 3:00 AM EST. That is the beauty of how we teach forex trading in our forex-trading course.
There are a limitless number of ways you can choose to trade the forex, and you develop the style of trading that is right for you.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style by getting a Forex trading education. Whether it's a Forex trading course or a Forex seminar.
Unfortunately the market just dropped, all night, never taking the bounce up we look for our entry. In the morning in was obvious Cable was not going to give us our trade, we had news coming out ( ISM) at 10:00 AM, it was time to get out of the way, and in doing so we prevent a loss of from 30 to 40 Pips.
The ISM news produced a 130 pip spike. Today we have several of the Fed presidents speaking, although none of them appear significant, you need to watch any trades you might be in
Tonight we are trading around 1.7380, our first region of resistance is in the 1,7420 range, and a second region around 1.7450. The strong support From 1.7310 to 1.7280 levels was violated firmly last night. For the next support level we will look around 1.7230.
For those of you who are fans of the candlestick patterns, we had a perfect double bottom form on both the 4 hour and the 1 hour charts yesterday, right before the spike up, I hope you saw it and were able to get in a long position.
Anywhere from 100 to 150 pips could have been had on the move. The double bottom formed in the first couple of hour of the London market, those of you who actively trade the London market were the beneficiary's of a classic pattern that worked to perfection.
I on the other hand missed this as I was studying the backs of my eye lids and not the charts at 3:00 AM EST. That is the beauty of how we teach forex trading in our forex-trading course.
There are a limitless number of ways you can choose to trade the forex, and you develop the style of trading that is right for you.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style by getting a Forex trading education. Whether it's a Forex trading course or a Forex seminar.
Tips For Profitable FOREX Trading
FOREX trading appeals to many traders for several reasons other than its potential for profitable trading:
1. FOREX trading offers a 24-hour market so that any trader can take advantage of profitable market conditions at any time.
2. The FOREX market is the most liquid market in the world so that traders can enter or exit the market whenever they want with minimal execution barriers or risk and no daily trading limit.
3. The FOREX market is always a good market. FOREX trading involves selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies.
4. The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time.
To be successful in FOREX trading you need experience, capital and a solid trading system. Keeping things simple can also help you better focus on your trading. Here are some tips that can help you during FOREX trading:
1. The first and last ticks are always the most expensive. Get in late and out early.
2. Never add money when you are losing.
3. When everyone else is in, then it is time for you to get out.
4. Always determine a stop and a profit objective before you enter a trade. Place stops that are based on market information, and not your account balance.
5. It is always easier to enter a losing trade.
6. News is only important when the market doesn't react in the direction of the news.
7. In a bull market, you never want to sell a dull market, in a bear market, you should certainly never buy a dull market.
8. There are times, due to a lack of liquidity, or excessive volatility, when you should not trade at all.
9. It helps to read yesterday's paper each day to learn from what the market did.
10. There are at least three types of markets such as up trending, range bound, and down trading, and you should have a different trading strategy for each.
11. Up market and down market patterns are always there, with one always been more dominant. Select trades that move along with the trend.
1. FOREX trading offers a 24-hour market so that any trader can take advantage of profitable market conditions at any time.
2. The FOREX market is the most liquid market in the world so that traders can enter or exit the market whenever they want with minimal execution barriers or risk and no daily trading limit.
3. The FOREX market is always a good market. FOREX trading involves selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies.
4. The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time.
To be successful in FOREX trading you need experience, capital and a solid trading system. Keeping things simple can also help you better focus on your trading. Here are some tips that can help you during FOREX trading:
1. The first and last ticks are always the most expensive. Get in late and out early.
2. Never add money when you are losing.
3. When everyone else is in, then it is time for you to get out.
4. Always determine a stop and a profit objective before you enter a trade. Place stops that are based on market information, and not your account balance.
5. It is always easier to enter a losing trade.
6. News is only important when the market doesn't react in the direction of the news.
7. In a bull market, you never want to sell a dull market, in a bear market, you should certainly never buy a dull market.
8. There are times, due to a lack of liquidity, or excessive volatility, when you should not trade at all.
9. It helps to read yesterday's paper each day to learn from what the market did.
10. There are at least three types of markets such as up trending, range bound, and down trading, and you should have a different trading strategy for each.
11. Up market and down market patterns are always there, with one always been more dominant. Select trades that move along with the trend.
The Sneaky Way To Managing Losses In Your Forex Trading
The basic rule of the Forex trading is maintaining the losses to the minimal as possible. With the small Forex trading failures you can survive those situations where you have faced losses in the market and be well-equipped for the time to come.
To project a major loss prior to enter the Forex trading is the most preferred method to keep the minimal losses. Setting up your major loss as a small percentage for the Forex trading even if you are going through a series of losses if won’t stop you from trading. The major amount of money is lost because most of the Forex traders don’t apply appropriate money organization guidelines in Forex trading. If there is a suitable money management system then the success rate will be more.
Even if you are facing a series of losses will not be of much matter if you have set up a major loss of the Forex trading. The major amount of money is lost because most of the Forex traders don’t apply appropriate money administration and follow the guidelines of Forex trading method and with this method you can achieve success.
It is illustrated with an example that how the situation would turn out if you have not fixed a major amount of loss. Let us say that your float of the Forex trading is 00 and you start you initial trade with 0 and if you come across a series of losses then it should not be of much surprise. And this would result in the reduction of 0 in the Forex trading. Those dealers would say that I have already lost three times consecutively it is my turn to face a win.
Thinking of probably they will win they make up their mind to make a bet of 0 for their next trade. Thinking that they will win the dealer makes a choice to invest 0 for the next trade but contrary to this their money will experience a decrease of 0, and as a result of this loss their winning opportunities decreases. If they had prior set up a major loss and followed that method they would not have landed in this situation and now in this situation they have to earn an extra amount to make up their loss.
Let us try to justify why people lose their capital in the Forex trading market? A dealer begins has 00 float and starts off his trade with 0. And after three consecutive losses he losses 0 and his money slashes out to 0. Now only three hundred percent is required for the next trade and will assist in making the situation equal.
In both the cases that we have discussed above one thing remained common that the dealer have not used a suitable organization of the capital and put a large amount of money in jeopardy. The main aim is to keep the losses at the lowest and assuring to begin at a decent position so that you can make the most of the turnover. With the help of the capital management method in the Forex trading you can always make use of it.
To project a major loss prior to enter the Forex trading is the most preferred method to keep the minimal losses. Setting up your major loss as a small percentage for the Forex trading even if you are going through a series of losses if won’t stop you from trading. The major amount of money is lost because most of the Forex traders don’t apply appropriate money organization guidelines in Forex trading. If there is a suitable money management system then the success rate will be more.
Even if you are facing a series of losses will not be of much matter if you have set up a major loss of the Forex trading. The major amount of money is lost because most of the Forex traders don’t apply appropriate money administration and follow the guidelines of Forex trading method and with this method you can achieve success.
It is illustrated with an example that how the situation would turn out if you have not fixed a major amount of loss. Let us say that your float of the Forex trading is 00 and you start you initial trade with 0 and if you come across a series of losses then it should not be of much surprise. And this would result in the reduction of 0 in the Forex trading. Those dealers would say that I have already lost three times consecutively it is my turn to face a win.
Thinking of probably they will win they make up their mind to make a bet of 0 for their next trade. Thinking that they will win the dealer makes a choice to invest 0 for the next trade but contrary to this their money will experience a decrease of 0, and as a result of this loss their winning opportunities decreases. If they had prior set up a major loss and followed that method they would not have landed in this situation and now in this situation they have to earn an extra amount to make up their loss.
Let us try to justify why people lose their capital in the Forex trading market? A dealer begins has 00 float and starts off his trade with 0. And after three consecutive losses he losses 0 and his money slashes out to 0. Now only three hundred percent is required for the next trade and will assist in making the situation equal.
In both the cases that we have discussed above one thing remained common that the dealer have not used a suitable organization of the capital and put a large amount of money in jeopardy. The main aim is to keep the losses at the lowest and assuring to begin at a decent position so that you can make the most of the turnover. With the help of the capital management method in the Forex trading you can always make use of it.
Forex Online Trading
Gain Profits with the Right Forex Trading Systems
Forex trading is all about currencies exchange from one person to another with a certain price. When investing in Forex, the game is about gaining profit through selling of currencies at higher price and buying currency at a lower price thus earning profit. So far, there are many investors involved in Forex trading as Forex has one of the biggest financial markets worldwide. With the availability of the internet, Forex has gained so much popularity as it provides accessibility to many investors in the convenience of time and place. Most investors planning to be involved in Forex trading is more involved in Forex Online trading.
One of the advantages of Forex trading is that you can access to it anytime and anywhere. This is made possible through Forex Online trading. As long as you have a laptop and have internet connection, you can do Forex online trading. This can be very beneficial especially that Forex trading does not have a day’s closure. You can access to the market at 24 hours a day – no pause, no offs.
When doing Forex online trading, you can trade foreign currencies in the convenience of time and place. But what you need most is a system that would help you strategize on prices to maximize profit. This way, you would need a Forex Trading system to guide you on the trade. This will also help you in developing strategies and making steps for you to be profitable in the Forex online trading. Without these strategies you will continue to see yourself fail in Forex online Trading.
There are many sites that offer Forex Trading systems. They usually provide valuable tools to be profitable in Forex trading. Supposed to be, the system will guide you for profitability in Forex trading, but most of the time, it doesn’t guarantee an overtime profit. There is a lot of decision making on your part to get the right results in Forex trading. As the common adage says, “Try and try until you succeed.” This is even true in using any Forex Trading Systems.
Forex Trading Systems have entry set-ups and indicators for pricing which you can accept or offer to get profit. There are no limits in the systems that you can use for profitability. As much as possible, you need to have basically as many Forex Trading Systems so that you can take advantage of the tools offered in every Forex Trading Systems available. The strategies and tools are generally available to help you make the right decision or make necessary entries and exits. So all combined strategies may help you make the right decisions. This is even true especially if you are a beginner in Forex trading. However, there is no guarantee of immediate results. Being profitable in Forex online trading takes the right Forex Trading systems, perseverance, mastery of the right strategies, and constant work.
You can start getting the system of Smart Forex Live for your Forex Trading systems. They offer a lot of Forex Trading products. The latest of which is the Forex killer, a Forex Trading system that provides tools for beginners to make it to the world of Forex traders. There are many more Foreign Trading systems but you can try this out first. All you need to do is make the right entries and analysis to get the right price.
Forex trading is all about currencies exchange from one person to another with a certain price. When investing in Forex, the game is about gaining profit through selling of currencies at higher price and buying currency at a lower price thus earning profit. So far, there are many investors involved in Forex trading as Forex has one of the biggest financial markets worldwide. With the availability of the internet, Forex has gained so much popularity as it provides accessibility to many investors in the convenience of time and place. Most investors planning to be involved in Forex trading is more involved in Forex Online trading.
One of the advantages of Forex trading is that you can access to it anytime and anywhere. This is made possible through Forex Online trading. As long as you have a laptop and have internet connection, you can do Forex online trading. This can be very beneficial especially that Forex trading does not have a day’s closure. You can access to the market at 24 hours a day – no pause, no offs.
When doing Forex online trading, you can trade foreign currencies in the convenience of time and place. But what you need most is a system that would help you strategize on prices to maximize profit. This way, you would need a Forex Trading system to guide you on the trade. This will also help you in developing strategies and making steps for you to be profitable in the Forex online trading. Without these strategies you will continue to see yourself fail in Forex online Trading.
There are many sites that offer Forex Trading systems. They usually provide valuable tools to be profitable in Forex trading. Supposed to be, the system will guide you for profitability in Forex trading, but most of the time, it doesn’t guarantee an overtime profit. There is a lot of decision making on your part to get the right results in Forex trading. As the common adage says, “Try and try until you succeed.” This is even true in using any Forex Trading Systems.
Forex Trading Systems have entry set-ups and indicators for pricing which you can accept or offer to get profit. There are no limits in the systems that you can use for profitability. As much as possible, you need to have basically as many Forex Trading Systems so that you can take advantage of the tools offered in every Forex Trading Systems available. The strategies and tools are generally available to help you make the right decision or make necessary entries and exits. So all combined strategies may help you make the right decisions. This is even true especially if you are a beginner in Forex trading. However, there is no guarantee of immediate results. Being profitable in Forex online trading takes the right Forex Trading systems, perseverance, mastery of the right strategies, and constant work.
You can start getting the system of Smart Forex Live for your Forex Trading systems. They offer a lot of Forex Trading products. The latest of which is the Forex killer, a Forex Trading system that provides tools for beginners to make it to the world of Forex traders. There are many more Foreign Trading systems but you can try this out first. All you need to do is make the right entries and analysis to get the right price.
Forex Trading System - How To Choose The Perfect One
Trading in the stock market is extremely intense at times. Within minutes, you could triple your money or loose it all. Forex trading is the best type of trading that has been developed because you can trade on your own time whether it is in the middle of the night or the middle of the day.
When you first decide to take the risk and trade in Forex, you need to take it slow and start out small until you get the hang of trading. Do not jump in until you know what your are doing. It is possible to lose everything you have worked for.
If you are a new at trading it is important to remember that forex trading is definitely not like traditional trading. Forex trading is made up of telephone lines and computers all over the world; conducted through international banks. There is not a central office to walk into.
The international banks process every transaction whether it is for a large company or an individual person. They process the transaction with professional courtesy. These banks are so professional, that their accuracy of these banks has never been questioned.
When a trader becomes active in the forex market it is because of the great benefits that it offers; the biggest being liquidity. A forex account can be closed within twenty-four hours with no questions asked.
The volume of trading that occurs everyday in forex trading is astounding. There can be no comparison to any other markets. Another reason that people choose forex trading is that unlike the stock market, the forex market does not close. It is running twenty-four seven, unlike your broker who needs to close at 6pm sharp. And stay closed all weekend.
Unlike many of the other markets, the forex market is more liquid. This feature allows your broker to stop automatically, giving the trader the time that he or she needs to decide how much risk he or she is willing to take, or if they will pass.
The biggest advantage of forex trading is that the trader is able to do it online. The advantage is that you do not need a broker, which can reduce or eliminate any transaction fees.
When you trade online and eliminate the broker, you cannot claim there was a misunderstanding if you do not like the outcome of a trade. You get an immediate confirmation
It is important that you understand that forex trading comes with a lot of risks. You cannot expect to sit back and watch your money multiply. It is hands on trading and you need to be aware at all times. This can make it tough when you have to sleep.
When you first decide to take the risk and trade in Forex, you need to take it slow and start out small until you get the hang of trading. Do not jump in until you know what your are doing. It is possible to lose everything you have worked for.
If you are a new at trading it is important to remember that forex trading is definitely not like traditional trading. Forex trading is made up of telephone lines and computers all over the world; conducted through international banks. There is not a central office to walk into.
The international banks process every transaction whether it is for a large company or an individual person. They process the transaction with professional courtesy. These banks are so professional, that their accuracy of these banks has never been questioned.
When a trader becomes active in the forex market it is because of the great benefits that it offers; the biggest being liquidity. A forex account can be closed within twenty-four hours with no questions asked.
The volume of trading that occurs everyday in forex trading is astounding. There can be no comparison to any other markets. Another reason that people choose forex trading is that unlike the stock market, the forex market does not close. It is running twenty-four seven, unlike your broker who needs to close at 6pm sharp. And stay closed all weekend.
Unlike many of the other markets, the forex market is more liquid. This feature allows your broker to stop automatically, giving the trader the time that he or she needs to decide how much risk he or she is willing to take, or if they will pass.
The biggest advantage of forex trading is that the trader is able to do it online. The advantage is that you do not need a broker, which can reduce or eliminate any transaction fees.
When you trade online and eliminate the broker, you cannot claim there was a misunderstanding if you do not like the outcome of a trade. You get an immediate confirmation
It is important that you understand that forex trading comes with a lot of risks. You cannot expect to sit back and watch your money multiply. It is hands on trading and you need to be aware at all times. This can make it tough when you have to sleep.
A Look Back At Forex Trading - 5/8/06
I truly hope that all of you have been following our outlooks on the Forex market. Last week, alone, we netted over 500 pips in profit.
Now, granted, that is a GREAT week of trading, but they do come often enough. But, how are you supposed to know when they are coming?
You aren't. What you are supposed to do, is be ready for anything and everything the forex markets throw at you.
The only way to do that is by getting a quality Forex trading education.
Sorry about that, I got a little sidetracked. Let's get to the outlook for the Pound/Dollar.
Alright, one more tangent. We only discuss our opinions for the Pound in these outlooks. But, you can use the skills you learn to trade any currency pair.
Now, really, let's get to the trading.
Cable continues its climb, and there is no end in sight, which means we should watch for a reversal...ha ha. The most enlightening fact I ever learned about the forex market is that it is completely random.
We can predict, usually with great accuracy support and resistance levels using retracements levels and pivot points just to name a few, but the market can and will change direction when you least expect it to.
So our word to all our traders is caution. Be diligent in assessing your risk when you make your trades. With that said we expect the rise to continue towards the 1.9549 previous high
.
For Friday we set our entries at 1.8500. We had profit targets of 1.8540 and 1.8590, we were able to close our first trade for 40 pips and our second trade was closed for a 90 pip profit.
Tonight we are trading around 1.8610. We will be looking to go long again, and we will continue cautiously watching for an unexpected reversal.
Remember, in order to analyze and trade the markets on your own, you must get a top notch forex trading education. Whether it be an at home forex trading course or a live forex seminar, take the time to get educated.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course or Forex Seminar.
Now, granted, that is a GREAT week of trading, but they do come often enough. But, how are you supposed to know when they are coming?
You aren't. What you are supposed to do, is be ready for anything and everything the forex markets throw at you.
The only way to do that is by getting a quality Forex trading education.
Sorry about that, I got a little sidetracked. Let's get to the outlook for the Pound/Dollar.
Alright, one more tangent. We only discuss our opinions for the Pound in these outlooks. But, you can use the skills you learn to trade any currency pair.
Now, really, let's get to the trading.
Cable continues its climb, and there is no end in sight, which means we should watch for a reversal...ha ha. The most enlightening fact I ever learned about the forex market is that it is completely random.
We can predict, usually with great accuracy support and resistance levels using retracements levels and pivot points just to name a few, but the market can and will change direction when you least expect it to.
So our word to all our traders is caution. Be diligent in assessing your risk when you make your trades. With that said we expect the rise to continue towards the 1.9549 previous high
.
For Friday we set our entries at 1.8500. We had profit targets of 1.8540 and 1.8590, we were able to close our first trade for 40 pips and our second trade was closed for a 90 pip profit.
Tonight we are trading around 1.8610. We will be looking to go long again, and we will continue cautiously watching for an unexpected reversal.
Remember, in order to analyze and trade the markets on your own, you must get a top notch forex trading education. Whether it be an at home forex trading course or a live forex seminar, take the time to get educated.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course or Forex Seminar.
Avoiding Common Pitfalls in A Forex Trading Strategy
The Forex Trading Strategy to Avoid Common Pitfalls
Currencies are traded similar to stocks and bonds in the complex international marketplace of the foreign exchange currency market. The Forex market, or Forex, is highly difficult as every currencies' economic situations are complex. A flexible trading platform and system is a requirement when studying Forex.
Some Forex trading systems have strategies based on market indicators, making them perfect for the changing market. In Forex trading strategy, being aware of what to search for in the diverse world economies can be a complicated undertaking. Since trends are ever changing, they would be outdated by the time you've done your research. Using market indicators - a group of proven guidelines and signals - lets somebody trading in Forex to look for trends and signals in all currencies.
Some basic principles for Forex trading strategy that can assist anybody trying to study Forex trading are:
- Make it a point to use the correct stop-loss orders. You can define cut-offs to minimize risks and losses. Forex trading strategy experts also apply stop-losses to maintain profits.
- You can allow your profits to run and cut your losses short. Let a pair that is earning high run. If your pair brings you a loss and is heading in that trend still, cut your losses. Do not continue and think that the pair will improve and turn profitable.
- There are always up market trends and down market trends present. Market trends are often changing across different pairs. At times it requires a bit of studying the market differentlyin a different way.
- Know when to step aside. Sometimes it's profitable not to have a pair or to trade.
- Trade with the trends rather than attempting to choose tops and bottoms. You can trade based on tested market indicators.
These strategies are just a few of numerous. You have the adaptability to trade in the complex Forex market with a dependable Forex trading system. With plenty of economies involved in the Forex market, it is good practice and more convenient to use a Forex trading system relying on indicators than trying to study and be on top of all of the economies involved.
Currencies are traded similar to stocks and bonds in the complex international marketplace of the foreign exchange currency market. The Forex market, or Forex, is highly difficult as every currencies' economic situations are complex. A flexible trading platform and system is a requirement when studying Forex.
Some Forex trading systems have strategies based on market indicators, making them perfect for the changing market. In Forex trading strategy, being aware of what to search for in the diverse world economies can be a complicated undertaking. Since trends are ever changing, they would be outdated by the time you've done your research. Using market indicators - a group of proven guidelines and signals - lets somebody trading in Forex to look for trends and signals in all currencies.
Some basic principles for Forex trading strategy that can assist anybody trying to study Forex trading are:
- Make it a point to use the correct stop-loss orders. You can define cut-offs to minimize risks and losses. Forex trading strategy experts also apply stop-losses to maintain profits.
- You can allow your profits to run and cut your losses short. Let a pair that is earning high run. If your pair brings you a loss and is heading in that trend still, cut your losses. Do not continue and think that the pair will improve and turn profitable.
- There are always up market trends and down market trends present. Market trends are often changing across different pairs. At times it requires a bit of studying the market differentlyin a different way.
- Know when to step aside. Sometimes it's profitable not to have a pair or to trade.
- Trade with the trends rather than attempting to choose tops and bottoms. You can trade based on tested market indicators.
These strategies are just a few of numerous. You have the adaptability to trade in the complex Forex market with a dependable Forex trading system. With plenty of economies involved in the Forex market, it is good practice and more convenient to use a Forex trading system relying on indicators than trying to study and be on top of all of the economies involved.
Forex Investing At The Right Time And The 10 AM Rule And How It Works
Sometimes it`s wise not to be the early bird when investing in forex, instead wait and see what the day will bring before you take action. The 10 A.M. rule is a great example of this concept, and is an example that protects your capital. Let`s say you want to buy a forex stock, for whatever reason; a trend play, or a market rally that you think a currently hot sector will participate in. You know that a great time to buy would be on a gap down, but the market is in rally mode and instead of gapping down, the forex stock gaps up. But buying the gap up is a bad trade. Now what do you do?
You use the 10 A.M. rule, and wait until after 10 A.M. for the right forex stock investing time to buy the stock. If the forex stock makes a new high for the day after 10 A.M., then, and only then, should you trade the stock. Of course, you will use stops to protect yourself, like you would on any trade.
Anyone who`s followed the market knows that a forex stock will often gap up early in the morning, only to suddenly sell off and reverse into negative territory. By following the 10 A.M. rule, you avoid the risk of this sudden reversal. If the forex stock does make it to a new high after 10 A.M., there is still trader interest in the forex stock, and it stands a good chance of gaining momentum and heading even higher.
Here is an example of the 10 A.M. rule on a gap up: A forex stock closes the day at $145. After hours, the company announces a two for one forex stock split. The next morning the forex stocks gaps up to open at $161. It trades as high as $166 before 10 A.M. For two hours after 10 A.M. it trades lower and doesn`t reach $166. At 2 P.M., it hits $166.50. The forex stock is now safe to buy, using the 10 A.M. rule.
Using a version of the 10 A.M. rule, you could watch for a hot sector to appear in the morning and follow the forex stocks in the sector that are up for the day. If the forex stocks are still making new highs at midday, they stand a good chance of finishing the day near their ultimate highs for the day, and could be good trading opportunities. This also applies in a down market and to stocks in forex that gap down, opening at prices lower than where they closed the previous day. In this situation, you should not short a forex stock that has gapped down unless and until it makes a new low for the day after 10 A.M.
Using the 10 A.M. rule ensures that you will never end up chasing and buying a forex stock when your chances of making a profitable trade are low. Remember, trading is all about probabilities. The more forex stock investing trades you make with a high probability of success, the more successful you will be. The 10 A.M. rule is a valuable addition to your trading plan, giving you a straightforward way to avoid making costly mistakes and to increase your number of profitable stock investing trades in forex.
You use the 10 A.M. rule, and wait until after 10 A.M. for the right forex stock investing time to buy the stock. If the forex stock makes a new high for the day after 10 A.M., then, and only then, should you trade the stock. Of course, you will use stops to protect yourself, like you would on any trade.
Anyone who`s followed the market knows that a forex stock will often gap up early in the morning, only to suddenly sell off and reverse into negative territory. By following the 10 A.M. rule, you avoid the risk of this sudden reversal. If the forex stock does make it to a new high after 10 A.M., there is still trader interest in the forex stock, and it stands a good chance of gaining momentum and heading even higher.
Here is an example of the 10 A.M. rule on a gap up: A forex stock closes the day at $145. After hours, the company announces a two for one forex stock split. The next morning the forex stocks gaps up to open at $161. It trades as high as $166 before 10 A.M. For two hours after 10 A.M. it trades lower and doesn`t reach $166. At 2 P.M., it hits $166.50. The forex stock is now safe to buy, using the 10 A.M. rule.
Using a version of the 10 A.M. rule, you could watch for a hot sector to appear in the morning and follow the forex stocks in the sector that are up for the day. If the forex stocks are still making new highs at midday, they stand a good chance of finishing the day near their ultimate highs for the day, and could be good trading opportunities. This also applies in a down market and to stocks in forex that gap down, opening at prices lower than where they closed the previous day. In this situation, you should not short a forex stock that has gapped down unless and until it makes a new low for the day after 10 A.M.
Using the 10 A.M. rule ensures that you will never end up chasing and buying a forex stock when your chances of making a profitable trade are low. Remember, trading is all about probabilities. The more forex stock investing trades you make with a high probability of success, the more successful you will be. The 10 A.M. rule is a valuable addition to your trading plan, giving you a straightforward way to avoid making costly mistakes and to increase your number of profitable stock investing trades in forex.
Forex Trading on the Internet
Many traders have considered to trade forex at one point of their careers, this is because forex is the biggest, fastest, most liquid financial market in the world. Unlike other markets, forex has no physical location or actual market floor. It is done via telecommunication systems through banks and financial institutions. Since trades in forex include countries around the world, it is a 24 hour market. Forex trading begins everyday in Sydney and moves around the globe ending in New York. This market is ideal for active traders.
To successfully trade in the forex market, you need more than tips from forex traders. You need experience. Remember that forex trading is a risky business; it can mean making money or go broke. Keep in mind that you need to follow one rule before trading, this rule is followed by all successful traders, and this rule is: Do not trade what you cannot afford to lose.
Since forex has no actual market floor to trade. You can use the internet to trade forex. Trading forex online is called e-forex; there are many benefits for trading forex this way, here are some of them:
The internet is a secure and user-friendly environment. You can trade whenever you're online by visiting websites of forex trading companies.
The internet allows you to do forex trading in real time. This means it is kept updated so you can know whenever you want about the market changes.
You can make reports of your progress and loses as you trade; therefore filing documents is easier and much more convenient.
You can also download software in the internet that simulates the market and gives you simulated money to improve your strategies. Forex trading online can give you so many other benefits.
Here are some guidelines that you can use when trading forex online so you can minimize loses and maximize profits.
? If you're just a beginner or a novice in trading forex, try to trade with the trend. This increases your odds on winning and can ensure you a profit.
? It is wise to have two forex accounts. Use one for demo account to train and learn new strategies in the forex market and use the other for real accounts. This is beneficial from a novice forex trader to seasoned forex trader. Remember that forex trading is a continuing education, even after you finished taking a course on forex trading, you will still be learning on the real market.
? There are many software out there that claims that it can predict the outcome of the forex market. This is not true. Do not depend on this software when trading forex, instead use them as guides. Keep in mind that the forex market is unpredictable and besides, if the software works, companies wouldn't be sharing the secret.
? If you're a beginner, it is wise that you should hire a forex broker. Forex brokers works much like real estate brokers. They do not necessarily execute the trade but advises you on when to trade, what to trade and how to trade. Hire a forex broker that has a good reputation and one that you can trust.
? Always look on the big currency pairs, euro to dollar, dollar to yen, Swiss franc to dollar, euro to yen and pound to dollar. These currency pairs are one of the most popular currency pairs traded.
Follow these guides and you can minimize loses and maximize profits. There are other strategies forex trader's uses and you can find them in the internet. It is a good idea to observe how seasoned traders work and learn from them.
To successfully trade in the forex market, you need more than tips from forex traders. You need experience. Remember that forex trading is a risky business; it can mean making money or go broke. Keep in mind that you need to follow one rule before trading, this rule is followed by all successful traders, and this rule is: Do not trade what you cannot afford to lose.
Since forex has no actual market floor to trade. You can use the internet to trade forex. Trading forex online is called e-forex; there are many benefits for trading forex this way, here are some of them:
The internet is a secure and user-friendly environment. You can trade whenever you're online by visiting websites of forex trading companies.
The internet allows you to do forex trading in real time. This means it is kept updated so you can know whenever you want about the market changes.
You can make reports of your progress and loses as you trade; therefore filing documents is easier and much more convenient.
You can also download software in the internet that simulates the market and gives you simulated money to improve your strategies. Forex trading online can give you so many other benefits.
Here are some guidelines that you can use when trading forex online so you can minimize loses and maximize profits.
? If you're just a beginner or a novice in trading forex, try to trade with the trend. This increases your odds on winning and can ensure you a profit.
? It is wise to have two forex accounts. Use one for demo account to train and learn new strategies in the forex market and use the other for real accounts. This is beneficial from a novice forex trader to seasoned forex trader. Remember that forex trading is a continuing education, even after you finished taking a course on forex trading, you will still be learning on the real market.
? There are many software out there that claims that it can predict the outcome of the forex market. This is not true. Do not depend on this software when trading forex, instead use them as guides. Keep in mind that the forex market is unpredictable and besides, if the software works, companies wouldn't be sharing the secret.
? If you're a beginner, it is wise that you should hire a forex broker. Forex brokers works much like real estate brokers. They do not necessarily execute the trade but advises you on when to trade, what to trade and how to trade. Hire a forex broker that has a good reputation and one that you can trust.
? Always look on the big currency pairs, euro to dollar, dollar to yen, Swiss franc to dollar, euro to yen and pound to dollar. These currency pairs are one of the most popular currency pairs traded.
Follow these guides and you can minimize loses and maximize profits. There are other strategies forex trader's uses and you can find them in the internet. It is a good idea to observe how seasoned traders work and learn from them.
Forex Trading on the Internet
Many traders have considered to trade forex at one point of their careers, this is because forex is the biggest, fastest, most liquid financial market in the world. Unlike other markets, forex has no physical location or actual market floor. It is done via telecommunication systems through banks and financial institutions. Since trades in forex include countries around the world, it is a 24 hour market. Forex trading begins everyday in Sydney and moves around the globe ending in New York. This market is ideal for active traders.
To successfully trade in the forex market, you need more than tips from forex traders. You need experience. Remember that forex trading is a risky business; it can mean making money or go broke. Keep in mind that you need to follow one rule before trading, this rule is followed by all successful traders, and this rule is: Do not trade what you cannot afford to lose.
Since forex has no actual market floor to trade. You can use the internet to trade forex. Trading forex online is called e-forex; there are many benefits for trading forex this way, here are some of them:
The internet is a secure and user-friendly environment. You can trade whenever you're online by visiting websites of forex trading companies.
The internet allows you to do forex trading in real time. This means it is kept updated so you can know whenever you want about the market changes.
You can make reports of your progress and loses as you trade; therefore filing documents is easier and much more convenient.
You can also download software in the internet that simulates the market and gives you simulated money to improve your strategies. Forex trading online can give you so many other benefits.
Here are some guidelines that you can use when trading forex online so you can minimize loses and maximize profits.
? If you're just a beginner or a novice in trading forex, try to trade with the trend. This increases your odds on winning and can ensure you a profit.
? It is wise to have two forex accounts. Use one for demo account to train and learn new strategies in the forex market and use the other for real accounts. This is beneficial from a novice forex trader to seasoned forex trader. Remember that forex trading is a continuing education, even after you finished taking a course on forex trading, you will still be learning on the real market.
? There are many software out there that claims that it can predict the outcome of the forex market. This is not true. Do not depend on this software when trading forex, instead use them as guides. Keep in mind that the forex market is unpredictable and besides, if the software works, companies wouldn't be sharing the secret.
? If you're a beginner, it is wise that you should hire a forex broker. Forex brokers works much like real estate brokers. They do not necessarily execute the trade but advises you on when to trade, what to trade and how to trade. Hire a forex broker that has a good reputation and one that you can trust.
? Always look on the big currency pairs, euro to dollar, dollar to yen, Swiss franc to dollar, euro to yen and pound to dollar. These currency pairs are one of the most popular currency pairs traded.
Follow these guides and you can minimize loses and maximize profits. There are other strategies forex trader's uses and you can find them in the internet. It is a good idea to observe how seasoned traders work and learn from them.
To successfully trade in the forex market, you need more than tips from forex traders. You need experience. Remember that forex trading is a risky business; it can mean making money or go broke. Keep in mind that you need to follow one rule before trading, this rule is followed by all successful traders, and this rule is: Do not trade what you cannot afford to lose.
Since forex has no actual market floor to trade. You can use the internet to trade forex. Trading forex online is called e-forex; there are many benefits for trading forex this way, here are some of them:
The internet is a secure and user-friendly environment. You can trade whenever you're online by visiting websites of forex trading companies.
The internet allows you to do forex trading in real time. This means it is kept updated so you can know whenever you want about the market changes.
You can make reports of your progress and loses as you trade; therefore filing documents is easier and much more convenient.
You can also download software in the internet that simulates the market and gives you simulated money to improve your strategies. Forex trading online can give you so many other benefits.
Here are some guidelines that you can use when trading forex online so you can minimize loses and maximize profits.
? If you're just a beginner or a novice in trading forex, try to trade with the trend. This increases your odds on winning and can ensure you a profit.
? It is wise to have two forex accounts. Use one for demo account to train and learn new strategies in the forex market and use the other for real accounts. This is beneficial from a novice forex trader to seasoned forex trader. Remember that forex trading is a continuing education, even after you finished taking a course on forex trading, you will still be learning on the real market.
? There are many software out there that claims that it can predict the outcome of the forex market. This is not true. Do not depend on this software when trading forex, instead use them as guides. Keep in mind that the forex market is unpredictable and besides, if the software works, companies wouldn't be sharing the secret.
? If you're a beginner, it is wise that you should hire a forex broker. Forex brokers works much like real estate brokers. They do not necessarily execute the trade but advises you on when to trade, what to trade and how to trade. Hire a forex broker that has a good reputation and one that you can trust.
? Always look on the big currency pairs, euro to dollar, dollar to yen, Swiss franc to dollar, euro to yen and pound to dollar. These currency pairs are one of the most popular currency pairs traded.
Follow these guides and you can minimize loses and maximize profits. There are other strategies forex trader's uses and you can find them in the internet. It is a good idea to observe how seasoned traders work and learn from them.
Forex broker involvement optional
To trade on the forex market, the largest financial market on the planet, one must use a forex broker. Not unlike a stock broker, a forex broker can also makes suggestions about which moves to make when exchanging foreign currency. Some forex brokers even supply technical analysis to some of their clients and offer tips on research to improve their success as forex traders.
Typically in the forex market a forex broker is a banking institution who may buy up large amounts of a certain currency. For years, banks were the only ones who had access to the forex markets. But today with the Internet, any forex trader, who subscribes with a forex broker, can access the market 24 hours a day.
Today, as with stock brokers, the brick and mortar institutions, such as banks, are less of an option for the individual forex trader who works from home, monitoring the news and gaining insight into certain technical information to help with his or her trading decisions.
Choosing a forex broker may depend on your needs. If you are new to the field, there are houses, or online forex brokers who may cater to your needs, providing in-depth research, ample time to demo their product and so on. Other forex brokers are geared toward the experienced online forex trader. They too offer advice, but may be less likely to offer instructional help with the information, assuming that you may already know how it may or may not benefit you when you read it. It is advisable to read about and even run a demo on several different online forex brokers before going with one.
Typically in the forex market a forex broker is a banking institution who may buy up large amounts of a certain currency. For years, banks were the only ones who had access to the forex markets. But today with the Internet, any forex trader, who subscribes with a forex broker, can access the market 24 hours a day.
Today, as with stock brokers, the brick and mortar institutions, such as banks, are less of an option for the individual forex trader who works from home, monitoring the news and gaining insight into certain technical information to help with his or her trading decisions.
Choosing a forex broker may depend on your needs. If you are new to the field, there are houses, or online forex brokers who may cater to your needs, providing in-depth research, ample time to demo their product and so on. Other forex brokers are geared toward the experienced online forex trader. They too offer advice, but may be less likely to offer instructional help with the information, assuming that you may already know how it may or may not benefit you when you read it. It is advisable to read about and even run a demo on several different online forex brokers before going with one.
Online Forex Trading is Quickly Becoming a Booming Business
Online Forex trading is more popular now that most everyone has access to a computer and internet. Unlike the stock exchange, the Forex does not have a particular place for trading to take place. While trading takes place all over the world, online Forex trading makes this process more convenient than ever.
Transactions in the Forex are traded very rapidly. The Forex is open around the clock on every business day of the year. Trading begins every morning in Sydney, Australia and as the business day in each country begins, the Forex online trading opens around the world. Online Forex trading allows banks, financial institutions, brokers and speculators to trade their currency rapidly and with ease. Online Forex trading is also a popular way to change foreign currency because it happens in real time with no delay.
Because online Forex trading makes exchanging foreign currency so easy and accessible to millions of people, many are trying to learn the ins and outs of the Forex. Brokers and financial institutions can offer advice on investing in the Forex. Brokers will also do the actual trading for the consumer. However, many are willing to learn to trade on the Forex on their own. When learning about online Forex trading it is imperative to understand everything there is to know about the Forex. Many online websites can offer potential traders tutorials and demos on how to get started in online Forex trading. Practicing on the demos helps speculators learn the basics of online Forex trading.
Also, another tip to learning online Forex trading is to study the news, including international news and news relating to politics, economics and finances. Inflation, changes in government and taxes just to name a few all affect the Forex on a daily basis. It is crucial to understand how these changes affect trading and the value of currency.
Transactions in the Forex are traded very rapidly. The Forex is open around the clock on every business day of the year. Trading begins every morning in Sydney, Australia and as the business day in each country begins, the Forex online trading opens around the world. Online Forex trading allows banks, financial institutions, brokers and speculators to trade their currency rapidly and with ease. Online Forex trading is also a popular way to change foreign currency because it happens in real time with no delay.
Because online Forex trading makes exchanging foreign currency so easy and accessible to millions of people, many are trying to learn the ins and outs of the Forex. Brokers and financial institutions can offer advice on investing in the Forex. Brokers will also do the actual trading for the consumer. However, many are willing to learn to trade on the Forex on their own. When learning about online Forex trading it is imperative to understand everything there is to know about the Forex. Many online websites can offer potential traders tutorials and demos on how to get started in online Forex trading. Practicing on the demos helps speculators learn the basics of online Forex trading.
Also, another tip to learning online Forex trading is to study the news, including international news and news relating to politics, economics and finances. Inflation, changes in government and taxes just to name a few all affect the Forex on a daily basis. It is crucial to understand how these changes affect trading and the value of currency.
What You Should Know Before You Start To Forex Trade
The forex trade is something that millions of people are beginning to investigate as one of many streams of income. Many people still have not considered this option when choosing investment options, as they feel it is too risky. Well to be frank, the forex trade is a risky business, but if you know the techniques and strategies involved, you can significantly decrease your risk and start making money from forex trading.
To get started in the forex trade, the first thing you need to do is get yourself motivated, because you will spend a fair amount of time reading, learning and understanding new concepts. However, there are so many places online these days where you can get tons of information via seminars, ebooks, forums, and special offer packages.
The main part of the forex trade is to accurately guess the next exchange rate trend and then choose whether or not you can make money off of it by buying or selling. Obviously, there is much more detail involved, like how to read and analyze charts, and how to study the patterns that they produce.
With the forex trade becoming so common, it is now possible for anyone to learn the strategies and techniques, and make money. There are specific margins that you have to understand and other technical financial jargon. If you are not up for this, then you could always get a forex broker to do your investing for you. The downside of using a broker, obviously, is that you have to trust the decisions of your broker.
It is also important to understand that the methods designed to succeed in the forex trade are not fool proof. As with any investment vehicle, it is an inconsistent business where anything can happen: you might win some one day, and lose some the next. Remember no strategy or software is perfect, nor can they always predict the exact market fluctuations all of the time.
Luckily, the forex trade is so popular now that there are many resources available where you can study and improve your chances of making a successful investment. Many online sites offer free advice, and Forex themselves offer a full study guide that is great for learning at your own pace, on your own time. Every last detail of Forex is explained, as they want to make sure that new forex investors are fully educated.
The Forex trade is definitely a viable new avenue for creating a stream of income. If you are interested, make sure you research it properly before jumping right in. With all of the information out there to help you, why not make use of it to improve your chances for success?
Source: Free Articles
To get started in the forex trade, the first thing you need to do is get yourself motivated, because you will spend a fair amount of time reading, learning and understanding new concepts. However, there are so many places online these days where you can get tons of information via seminars, ebooks, forums, and special offer packages.
The main part of the forex trade is to accurately guess the next exchange rate trend and then choose whether or not you can make money off of it by buying or selling. Obviously, there is much more detail involved, like how to read and analyze charts, and how to study the patterns that they produce.
With the forex trade becoming so common, it is now possible for anyone to learn the strategies and techniques, and make money. There are specific margins that you have to understand and other technical financial jargon. If you are not up for this, then you could always get a forex broker to do your investing for you. The downside of using a broker, obviously, is that you have to trust the decisions of your broker.
It is also important to understand that the methods designed to succeed in the forex trade are not fool proof. As with any investment vehicle, it is an inconsistent business where anything can happen: you might win some one day, and lose some the next. Remember no strategy or software is perfect, nor can they always predict the exact market fluctuations all of the time.
Luckily, the forex trade is so popular now that there are many resources available where you can study and improve your chances of making a successful investment. Many online sites offer free advice, and Forex themselves offer a full study guide that is great for learning at your own pace, on your own time. Every last detail of Forex is explained, as they want to make sure that new forex investors are fully educated.
The Forex trade is definitely a viable new avenue for creating a stream of income. If you are interested, make sure you research it properly before jumping right in. With all of the information out there to help you, why not make use of it to improve your chances for success?
Source: Free Articles
Auto Trading with Mini Forex Accounts
Autor: Guest :: Views: 152 :: Send to Your Friends :: View PDF :: Print View
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An auto trade mini forex account uses the same trading platform as any other regular automated forex trading account. The only major difference is the account size, which is much small than a standard account. You can open up a mini forex trading account with as low as $50. Auto trade mini forex account can be a great option for you if you are a new investor in the forex trading market. Internet based auto trading has revolutionized and intensified the advantages of operating a mini forex account by many fold.
The steps you need to follow for opening an auto trade mini forex account are quite simple. First you have to select a brokerage firm that is offering their services to open an auto trade mini forex account. Fill in some personal details like your name, address, contact number, e-mail address, and the specific type of account you like to open. After filling in this online query form, you can directly open your mini account. Many agencies now accept $50 to open an auto trade forex mini account, but in an extremely volatile market as forex and because of high leverage, it is better to invest at least $2000.
There are quite a few advantages of an auto trade mini forex account. The mini accounts are perfectly suited for those who are new to the forex market. The mini accounts trade in smaller contract sizes, which gives the traders the opportunity to trade with less risk or exposure to the market. This smaller trade size also helps the trader to build confidence. As the trading is completely automated, you can experiment with the features of the trading platform and judge the efficiency of the system.
As the pip value on any mini account is just $1 per pip, you can develop a disciplined trading strategy while handling an auto mini forex account. Moreover, you learn to overcome your tendency of emotional trading, which, at times, leads to irrational trading decisions. You also learn to limit losses and decide your entry and exit points.
Auto trade mini forex account gives you more staying power in the market. This enables you to take advantages of multiple opportunities without over-leveraging your account. Most of the auto mini forex account provides user-friendly trading software. It has all the interactive and useful features of a standard rapid execution from live, streaming prices.
In some currency pairs like EUR/USD etc., a one-pip movement in the exchange rate is equal to a one dollar gain or loss in the account value per lot. Usually the auto trade mini forex account offers a spread of 3 or 5 pips on most currencies. So, open an auto mini forex account to master the art of trading before venturing into the market with high volume of investment.
Source: Free Articles
Social Bookmarking
An auto trade mini forex account uses the same trading platform as any other regular automated forex trading account. The only major difference is the account size, which is much small than a standard account. You can open up a mini forex trading account with as low as $50. Auto trade mini forex account can be a great option for you if you are a new investor in the forex trading market. Internet based auto trading has revolutionized and intensified the advantages of operating a mini forex account by many fold.
The steps you need to follow for opening an auto trade mini forex account are quite simple. First you have to select a brokerage firm that is offering their services to open an auto trade mini forex account. Fill in some personal details like your name, address, contact number, e-mail address, and the specific type of account you like to open. After filling in this online query form, you can directly open your mini account. Many agencies now accept $50 to open an auto trade forex mini account, but in an extremely volatile market as forex and because of high leverage, it is better to invest at least $2000.
There are quite a few advantages of an auto trade mini forex account. The mini accounts are perfectly suited for those who are new to the forex market. The mini accounts trade in smaller contract sizes, which gives the traders the opportunity to trade with less risk or exposure to the market. This smaller trade size also helps the trader to build confidence. As the trading is completely automated, you can experiment with the features of the trading platform and judge the efficiency of the system.
As the pip value on any mini account is just $1 per pip, you can develop a disciplined trading strategy while handling an auto mini forex account. Moreover, you learn to overcome your tendency of emotional trading, which, at times, leads to irrational trading decisions. You also learn to limit losses and decide your entry and exit points.
Auto trade mini forex account gives you more staying power in the market. This enables you to take advantages of multiple opportunities without over-leveraging your account. Most of the auto mini forex account provides user-friendly trading software. It has all the interactive and useful features of a standard rapid execution from live, streaming prices.
In some currency pairs like EUR/USD etc., a one-pip movement in the exchange rate is equal to a one dollar gain or loss in the account value per lot. Usually the auto trade mini forex account offers a spread of 3 or 5 pips on most currencies. So, open an auto mini forex account to master the art of trading before venturing into the market with high volume of investment.
Source: Free Articles
Where to Get Forex Training
Autor: fsegura :: Views: 2524 :: Send to Your Friends :: View PDF :: Print View
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For those of you who are interested in forex trading, you may want to start off by getting some good forex training. Forex training is a necessity for anyone with this interest. This is because a lot of money is involved in forex trading. If you don't get some forex training, you are bound to lose a lot of money.
Some of you may not even know what forex trading is. If you don't know this, you defiantly need some forex training. Forex stands for foreign exchange. Forex trading is basically the exchange of one countries currency for another countries currency. This is done simultaneously in hopes of gaining a profit.
You can get forex training from several different places. The first place you should get forex training from is online. There are many websites that offer free forex training. The forex training these websites offer is both reliable and accurate. The forex training on these websites often offers a free demo account to teach you how to trade without actually using any real money.
A second place to get Forex training is at your local college campus. Forex training courses at college are usually inexpensive and very thorough. The forex training courses offered should also include hands on experience with trading, to help you get the edge. You can also get some books on forex training or research forex training at your local library. The best place to get forex training is from someone who is already involved in forex trading. The forex training these individuals provide will be more realistic for you and give you different aspects of the forex trading game.
The forex training you get should first start with learning how the foreign trade market works. The trade market is always changing, so you need to understand it first. The second part of your forex training should be about risk control. You never want to invest more than you can afford. The right forex training should teach you how to cut your losses and have less risks of failure. Next, your forex training should teach you how to open and manage a forex trading account. But this should be done with a demo account. All forex training should be done this way first, before you try the real thing.
With all of this in mind, you should be able to find some good forex training. Learn the ropes of forex trading and take the time to learn it well. Be sure to try a demo forex trading account before you start a real account. With the right forex training, you will soon be on your way to a profitable way to supplement your income.
Social Bookmarking
For those of you who are interested in forex trading, you may want to start off by getting some good forex training. Forex training is a necessity for anyone with this interest. This is because a lot of money is involved in forex trading. If you don't get some forex training, you are bound to lose a lot of money.
Some of you may not even know what forex trading is. If you don't know this, you defiantly need some forex training. Forex stands for foreign exchange. Forex trading is basically the exchange of one countries currency for another countries currency. This is done simultaneously in hopes of gaining a profit.
You can get forex training from several different places. The first place you should get forex training from is online. There are many websites that offer free forex training. The forex training these websites offer is both reliable and accurate. The forex training on these websites often offers a free demo account to teach you how to trade without actually using any real money.
A second place to get Forex training is at your local college campus. Forex training courses at college are usually inexpensive and very thorough. The forex training courses offered should also include hands on experience with trading, to help you get the edge. You can also get some books on forex training or research forex training at your local library. The best place to get forex training is from someone who is already involved in forex trading. The forex training these individuals provide will be more realistic for you and give you different aspects of the forex trading game.
The forex training you get should first start with learning how the foreign trade market works. The trade market is always changing, so you need to understand it first. The second part of your forex training should be about risk control. You never want to invest more than you can afford. The right forex training should teach you how to cut your losses and have less risks of failure. Next, your forex training should teach you how to open and manage a forex trading account. But this should be done with a demo account. All forex training should be done this way first, before you try the real thing.
With all of this in mind, you should be able to find some good forex training. Learn the ropes of forex trading and take the time to learn it well. Be sure to try a demo forex trading account before you start a real account. With the right forex training, you will soon be on your way to a profitable way to supplement your income.
Saturday, May 15, 2010
Forex Trading on the Internet
Autor: asupport :: Views: 118 :: Send to Your Friends :: View PDF :: Print View
Many traders have considered to trade forex at one point of their careers, this is because forex is the biggest, fastest, most liquid financial market in the world. Unlike other markets, forex has no physical location or actual market floor. It is done via telecommunication systems through banks and financial institutions. Since trades in forex include countries around the world, it is a 24 hour market. Forex trading begins everyday in Sydney and moves around the globe ending in New York. This market is ideal for active traders.
To successfully trade in the forex market, you need more than tips from forex traders. You need experience. Remember that forex trading is a risky business; it can mean making money or go broke. Keep in mind that you need to follow one rule before trading, this rule is followed by all successful traders, and this rule is: Do not trade what you cannot afford to lose.
Since forex has no actual market floor to trade. You can use the internet to trade forex. Trading forex online is called e-forex; there are many benefits for trading forex this way, here are some of them:
The internet is a secure and user-friendly environment. You can trade whenever you're online by visiting websites of forex trading companies.
The internet allows you to do forex trading in real time. This means it is kept updated so you can know whenever you want about the market changes.
You can make reports of your progress and loses as you trade; therefore filing documents is easier and much more convenient.
You can also download software in the internet that simulates the market and gives you simulated money to improve your strategies. Forex trading online can give you so many other benefits.
Here are some guidelines that you can use when trading forex online so you can minimize loses and maximize profits.
? If you're just a beginner or a novice in trading forex, try to trade with the trend. This increases your odds on winning and can ensure you a profit.
? It is wise to have two forex accounts. Use one for demo account to train and learn new strategies in the forex market and use the other for real accounts. This is beneficial from a novice forex trader to seasoned forex trader. Remember that forex trading is a continuing education, even after you finished taking a course on forex trading, you will still be learning on the real market.
? There are many software out there that claims that it can predict the outcome of the forex market. This is not true. Do not depend on this software when trading forex, instead use them as guides. Keep in mind that the forex market is unpredictable and besides, if the software works, companies wouldn't be sharing the secret.
? If you're a beginner, it is wise that you should hire a forex broker. Forex brokers works much like real estate brokers. They do not necessarily execute the trade but advises you on when to trade, what to trade and how to trade. Hire a forex broker that has a good reputation and one that you can trust.
? Always look on the big currency pairs, euro to dollar, dollar to yen, Swiss franc to dollar, euro to yen and pound to dollar. These currency pairs are one of the most popular currency pairs traded.
Follow these guides and you can minimize loses and maximize profits. There are other strategies forex trader's uses and you can find them in the internet. It is a good idea to observe how seasoned traders work and learn from them.
Many traders have considered to trade forex at one point of their careers, this is because forex is the biggest, fastest, most liquid financial market in the world. Unlike other markets, forex has no physical location or actual market floor. It is done via telecommunication systems through banks and financial institutions. Since trades in forex include countries around the world, it is a 24 hour market. Forex trading begins everyday in Sydney and moves around the globe ending in New York. This market is ideal for active traders.
To successfully trade in the forex market, you need more than tips from forex traders. You need experience. Remember that forex trading is a risky business; it can mean making money or go broke. Keep in mind that you need to follow one rule before trading, this rule is followed by all successful traders, and this rule is: Do not trade what you cannot afford to lose.
Since forex has no actual market floor to trade. You can use the internet to trade forex. Trading forex online is called e-forex; there are many benefits for trading forex this way, here are some of them:
The internet is a secure and user-friendly environment. You can trade whenever you're online by visiting websites of forex trading companies.
The internet allows you to do forex trading in real time. This means it is kept updated so you can know whenever you want about the market changes.
You can make reports of your progress and loses as you trade; therefore filing documents is easier and much more convenient.
You can also download software in the internet that simulates the market and gives you simulated money to improve your strategies. Forex trading online can give you so many other benefits.
Here are some guidelines that you can use when trading forex online so you can minimize loses and maximize profits.
? If you're just a beginner or a novice in trading forex, try to trade with the trend. This increases your odds on winning and can ensure you a profit.
? It is wise to have two forex accounts. Use one for demo account to train and learn new strategies in the forex market and use the other for real accounts. This is beneficial from a novice forex trader to seasoned forex trader. Remember that forex trading is a continuing education, even after you finished taking a course on forex trading, you will still be learning on the real market.
? There are many software out there that claims that it can predict the outcome of the forex market. This is not true. Do not depend on this software when trading forex, instead use them as guides. Keep in mind that the forex market is unpredictable and besides, if the software works, companies wouldn't be sharing the secret.
? If you're a beginner, it is wise that you should hire a forex broker. Forex brokers works much like real estate brokers. They do not necessarily execute the trade but advises you on when to trade, what to trade and how to trade. Hire a forex broker that has a good reputation and one that you can trust.
? Always look on the big currency pairs, euro to dollar, dollar to yen, Swiss franc to dollar, euro to yen and pound to dollar. These currency pairs are one of the most popular currency pairs traded.
Follow these guides and you can minimize loses and maximize profits. There are other strategies forex trader's uses and you can find them in the internet. It is a good idea to observe how seasoned traders work and learn from them.
Forex Trading Alerts
Forex trading alert software continuously monitor the market for high-probability real-time buy and sell opportunities. Based on approach algorithm the alert tool make precise trade entry and exit signals and automated trailing stop-losses. If you have subscribed to one such forex trading alert software services, it will send you an alert or notification by email or SMS in your cell phone. Forex trading alert software, in many cases are offered as a free service to the customers of an automated forex trade execution platform.
Forex trading alert software prepares real-time alert to buy or sell a specific currency pair. Depending on a buy or sell alerts and either email or SMS notification you can make your trading decisions.
The alert may also include a stop-loss and limit information. So you can avoid continuous monitoring of the market as the auto trading platform would execute your trades which you have already set. These alerts often come at the very beginning of a currencies movement or when key support or resistance levels are broken and tested.
Some forex trading alert software needs installation in your system. Once installed, this software automatically monitors the parent network and notifies you of any new report. These alerts are generated after detailed research, application of different technical analysis, like Fibonacci or Elliot waves, and after obtaining feedbacks from other market indicators.
Forex Trading Alerts
Forex trading alert software should have systems for fast notifications, auto-update, and instant access to market reports and information. The alert software, in many cases, prepares targeted information bulletin for longer term, positional trader, day traders, and average traders.
Before major economic announcements, which may influence the market, the forex trading alert software should ideally send you a pop-up message reminding you of the release.
Forex trading alert software can be customized to receive trade alerts for the currency pairs of your choice. You can enable or disable entry points to your mobile phone.
Many forex trading alert software allows you to add more than one email id or mobile phone numbers and you can receive the notifications in all of them. You can turn the alerts on or off at any time. Forex trading alert software may come with light flashes which are easy to follow and execute. Stop what you are doing RIGHT NOW and get your Life Changing Forex Trading Alerts Program. It'll change your Life Forever!
(ArticlesBase SC #1790547)
Forex trading alert software prepares real-time alert to buy or sell a specific currency pair. Depending on a buy or sell alerts and either email or SMS notification you can make your trading decisions.
The alert may also include a stop-loss and limit information. So you can avoid continuous monitoring of the market as the auto trading platform would execute your trades which you have already set. These alerts often come at the very beginning of a currencies movement or when key support or resistance levels are broken and tested.
Some forex trading alert software needs installation in your system. Once installed, this software automatically monitors the parent network and notifies you of any new report. These alerts are generated after detailed research, application of different technical analysis, like Fibonacci or Elliot waves, and after obtaining feedbacks from other market indicators.
Forex Trading Alerts
Forex trading alert software should have systems for fast notifications, auto-update, and instant access to market reports and information. The alert software, in many cases, prepares targeted information bulletin for longer term, positional trader, day traders, and average traders.
Before major economic announcements, which may influence the market, the forex trading alert software should ideally send you a pop-up message reminding you of the release.
Forex trading alert software can be customized to receive trade alerts for the currency pairs of your choice. You can enable or disable entry points to your mobile phone.
Many forex trading alert software allows you to add more than one email id or mobile phone numbers and you can receive the notifications in all of them. You can turn the alerts on or off at any time. Forex trading alert software may come with light flashes which are easy to follow and execute. Stop what you are doing RIGHT NOW and get your Life Changing Forex Trading Alerts Program. It'll change your Life Forever!
(ArticlesBase SC #1790547)
Friday, May 14, 2010
CRAPPY CONNECTION. RANGING PERIOD
Sorry for the long period of no update on this blog.
It seems that internet connection is really bad.
At the office I am using Streamyx. Connection is crappy as usual.
At home I am using Celcom 3G. Its better but its slow.
Maybe my home is not well covered by the 3G network.
As for forex, EurUsd, GbpUsd, AudUsd,
EurJpy and GbpJpy is heading up now but not to worry,
there is still time. On the long term only EurUsd looks good for a long trade.
I am currently holding long EurUsd @ 1.2640 with a stop loss of 50 pip.
This is a long term trade, hopefully the move upwards will take a long time
and lots of pips on the way.
As for the other pairs, it is heading up but its not an uptrend yet.
They will be entering the ranging period now.
So there will be plenty of chances for entry.
If all these pairs maintained their direction we will see
a change in trend in the longer term trades.
I will list key levels for guidelines.
These key levels are good for both sell and buy position.
Treat them as guidelines for entry in either direction.
EurUsd : 1.2670
GbpUsd : 1.5050
AudUsd : 1.6450
EurJpy : 119.20
GbpJpy : 141.50
These key levels are always changing.
Since most of these pairs are entering the ranging zone so
you can use these key level for this whole week.
As for me I will be looking for a long trade from these levels
that is if the current direction stays.
Good things are simple things. If you have a system,
make sure it is simple. With simple indication you can make clear decision.
It seems that internet connection is really bad.
At the office I am using Streamyx. Connection is crappy as usual.
At home I am using Celcom 3G. Its better but its slow.
Maybe my home is not well covered by the 3G network.
As for forex, EurUsd, GbpUsd, AudUsd,
EurJpy and GbpJpy is heading up now but not to worry,
there is still time. On the long term only EurUsd looks good for a long trade.
I am currently holding long EurUsd @ 1.2640 with a stop loss of 50 pip.
This is a long term trade, hopefully the move upwards will take a long time
and lots of pips on the way.
As for the other pairs, it is heading up but its not an uptrend yet.
They will be entering the ranging period now.
So there will be plenty of chances for entry.
If all these pairs maintained their direction we will see
a change in trend in the longer term trades.
I will list key levels for guidelines.
These key levels are good for both sell and buy position.
Treat them as guidelines for entry in either direction.
EurUsd : 1.2670
GbpUsd : 1.5050
AudUsd : 1.6450
EurJpy : 119.20
GbpJpy : 141.50
These key levels are always changing.
Since most of these pairs are entering the ranging zone so
you can use these key level for this whole week.
As for me I will be looking for a long trade from these levels
that is if the current direction stays.
Good things are simple things. If you have a system,
make sure it is simple. With simple indication you can make clear decision.
A UNIQUE CONDITION
At the time of writing EU is in a unique condition. 30M = 4H = D1.
They are all pointing up but a bit heavy on the downside.
This type of condition is very dangerous. It is all based on market sentiment.
At the moment the market is still trying to push EU down but EU has aligned
itself for a shoot up.
Just be carefull where you are standing when the big dogs enter the arena.
They are all pointing up but a bit heavy on the downside.
This type of condition is very dangerous. It is all based on market sentiment.
At the moment the market is still trying to push EU down but EU has aligned
itself for a shoot up.
Just be carefull where you are standing when the big dogs enter the arena.
RANGING PERIOD
Its ranging period again and its driving me nuts.
My SL for EU got hit after 3 days.
Got a few chance of closing it in profit but I refuse.
Talk about being greedy now I am down by 50 pips.
This time around, big move belongs to GBP pairs.
Steady move belongs to AUD pairs.
Take your pick. You want big and risky, or small but safer.
Safe here refer to your insurance in forex called Stop Loss.
At the moment GBP pairs has hit a brick wall on its way up.
Most probably it wont break it or drop down again.
Either way, a drop down again is unavoidable.
That is where i plan to take my entry.
Long position is looking good now but only after one more correction.
My SL for EU got hit after 3 days.
Got a few chance of closing it in profit but I refuse.
Talk about being greedy now I am down by 50 pips.
This time around, big move belongs to GBP pairs.
Steady move belongs to AUD pairs.
Take your pick. You want big and risky, or small but safer.
Safe here refer to your insurance in forex called Stop Loss.
At the moment GBP pairs has hit a brick wall on its way up.
Most probably it wont break it or drop down again.
Either way, a drop down again is unavoidable.
That is where i plan to take my entry.
Long position is looking good now but only after one more correction.
THESE ARE HARD TIMES.
The Market is now moving with unexpected turns. These are hard times. News traders have long gone. These kind of market isnt moving with the news. The only ones left are fundamental long term traders and technical traders. These are the traders who will survive in these kind of situation.
I have heard of quiet a numbers of blown accounts now. For these people dont feel bad. The world is not againts you. Just have to wait for a better time to enter the market.
I for myself have taken the long term trades only. Short term trades is out of the question now. Those sharp and sudden turns will kill any short term traders. It took me a while to realize, fortunately my loss is small and I manage to change tactics in a short period of time. At the moment I only take long position because that is what the daily chart is saying. All managed accounts is currently on hold. No more live trades for managed accounts. The risk is not very healthy right now.
These are hard times. The market is ever changing but at the moment the changes is greater than before. You need to be on your feet and react accordingly to changes of the market. Survive this and you will survive a long time in the market.
I have heard of quiet a numbers of blown accounts now. For these people dont feel bad. The world is not againts you. Just have to wait for a better time to enter the market.
I for myself have taken the long term trades only. Short term trades is out of the question now. Those sharp and sudden turns will kill any short term traders. It took me a while to realize, fortunately my loss is small and I manage to change tactics in a short period of time. At the moment I only take long position because that is what the daily chart is saying. All managed accounts is currently on hold. No more live trades for managed accounts. The risk is not very healthy right now.
These are hard times. The market is ever changing but at the moment the changes is greater than before. You need to be on your feet and react accordingly to changes of the market. Survive this and you will survive a long time in the market.
NOW I KNOW WHY PEOPLE USE APPLE MAC
I was doing some graphic editing these days. Just as a hobby.
It seems that everytime I try to render in Photoshop, my pc will shutdown.
It just switch off the power and everything is blank.
So I decided to investigate on the cause of the shutdown.
After monitoring the temperature while doing some Photoshop rendering.
My CPU temperature climbed up to 94C and my north bridge chipset is at 124C and the system will shutdown.
Imagine the component of your PC is reaching 124C. That is higher than point of boiling for water.
It is scary sometimes thinking that the pc is under my table, just beside my leg and it is burning hot.
Hopefully nothing will ever explode and take my leg with it. Im typing this with one leg on the chair just in case.
If you are using a pc, there is nothing to worry about. Under normal usage,
the cpu is always below 40C. Mine is sleeping at 33C now.
Its just that when you do some heavy calculation stuff that everything turns up red hot.
So you can just surf the net, play some 3d games, watch dvd etc.
Those normal usage do not require heavy calculation and your PC is half awake.
Btw, 3d games is not a heavy usage. My pc can run Quake Wars with everything turned to max for hours.
No problem there.
I will not use photoshop again on this pc. This is my power pc and it is running hot.
I am using my 2nd pc to render all my photoshop graphic.
Its been an hour and my 2nd pc still not finish rendering a 14Mega Pixel picture.
This pc however can do it in 10 minutes. Talk about difference in power.
Next I am going to buy an Apple Mac for all my rendering needs.
So my house will be full of computers. Btw I have 3 desktop and a laptop now working in the house.
So if I add another Mac, I can turn my house into a cyber cafe.
As for Forex, its going up but at the moment the direction is down.
So be on the look out for a sell but keep in mind, the long term trade is a buy.
Forex is not a straight road and I feel like Yoda speaking right now.
How can I say sell but at the time look for buy. You know it when its there. I assure you.
It seems that everytime I try to render in Photoshop, my pc will shutdown.
It just switch off the power and everything is blank.
So I decided to investigate on the cause of the shutdown.
After monitoring the temperature while doing some Photoshop rendering.
My CPU temperature climbed up to 94C and my north bridge chipset is at 124C and the system will shutdown.
Imagine the component of your PC is reaching 124C. That is higher than point of boiling for water.
It is scary sometimes thinking that the pc is under my table, just beside my leg and it is burning hot.
Hopefully nothing will ever explode and take my leg with it. Im typing this with one leg on the chair just in case.
If you are using a pc, there is nothing to worry about. Under normal usage,
the cpu is always below 40C. Mine is sleeping at 33C now.
Its just that when you do some heavy calculation stuff that everything turns up red hot.
So you can just surf the net, play some 3d games, watch dvd etc.
Those normal usage do not require heavy calculation and your PC is half awake.
Btw, 3d games is not a heavy usage. My pc can run Quake Wars with everything turned to max for hours.
No problem there.
I will not use photoshop again on this pc. This is my power pc and it is running hot.
I am using my 2nd pc to render all my photoshop graphic.
Its been an hour and my 2nd pc still not finish rendering a 14Mega Pixel picture.
This pc however can do it in 10 minutes. Talk about difference in power.
Next I am going to buy an Apple Mac for all my rendering needs.
So my house will be full of computers. Btw I have 3 desktop and a laptop now working in the house.
So if I add another Mac, I can turn my house into a cyber cafe.
As for Forex, its going up but at the moment the direction is down.
So be on the look out for a sell but keep in mind, the long term trade is a buy.
Forex is not a straight road and I feel like Yoda speaking right now.
How can I say sell but at the time look for buy. You know it when its there. I assure you.
INTERNET PROBLEM
Having trouble log in into blogger account lately.
Today GU nearly hit my stop order. I am still waiting
Posted by GreenGo at 10:18 PM
1 comments:
Best Forex trading System said...
hi GreenGo,
I live in india. Here the connection problem is more.
I've lost many trades because of this. Dont know wat to do :( 12:11 AM)
Forex is not going anyway at the moment.
Up and down it is still at the same level.
Currently I am watching for a certain level in GbpUsd. 1.4650 is the level I am waiting for. Believe it or not, I have not traded this week.Today GU nearly hit my stop order. I am still waiting
Posted by GreenGo at 10:18 PM
1 comments:
Best Forex trading System said...
hi GreenGo,
I live in india. Here the connection problem is more.
I've lost many trades because of this. Dont know wat to do :( 12:11 AM)
Thursday, May 13, 2010
WHY CHAOS THEORY IS SO IMPORTANT.
“The organisation of the Universe demands that matters abandon itself to the games of
chance.”
H. Reeves - Atoms of Science
The theory of chaos is not a theory to help you make investment decisions, its usefulness lies
in the greater understanding it gives us of the trading environment and how we should cope
with it.
1. It shows us how human psychology influences price movement, why trends occur, and
how they can end up being understood in terms of probability. The herd mentality is fully
explained in our Special Situations Report available from the office. Human psychology has
remained constant over time, and it is this fact that helps us predict the probability of price
movement via technical analysis.
2. It disproves Random Walk theory; although market movements may appear random, under
statistical tests they are not.
3. If it disproves that the markets are random, it also shows why the quest for the “Holy
Grail” computerised or mechanical trading system is doomed to failure. It also confronts
those disciples of such analysts as Gann and Elliott who believe the Universe is ruled by law.
4. It helps us to operate in an unstructured environment by giving us a greater understanding
of it. The best you can do is understand the original conditions that give rise to probable
future events, and act accordingly. This may sound disheartening, it is not. By understanding
chaos, you will be able to keep the odds firmly in your favour. If you can do that, you will
end up making a lot of money from your trading, year in year out.
chance.”
H. Reeves - Atoms of Science
The theory of chaos is not a theory to help you make investment decisions, its usefulness lies
in the greater understanding it gives us of the trading environment and how we should cope
with it.
1. It shows us how human psychology influences price movement, why trends occur, and
how they can end up being understood in terms of probability. The herd mentality is fully
explained in our Special Situations Report available from the office. Human psychology has
remained constant over time, and it is this fact that helps us predict the probability of price
movement via technical analysis.
2. It disproves Random Walk theory; although market movements may appear random, under
statistical tests they are not.
3. If it disproves that the markets are random, it also shows why the quest for the “Holy
Grail” computerised or mechanical trading system is doomed to failure. It also confronts
those disciples of such analysts as Gann and Elliott who believe the Universe is ruled by law.
4. It helps us to operate in an unstructured environment by giving us a greater understanding
of it. The best you can do is understand the original conditions that give rise to probable
future events, and act accordingly. This may sound disheartening, it is not. By understanding
chaos, you will be able to keep the odds firmly in your favour. If you can do that, you will
end up making a lot of money from your trading, year in year out.
HOW THE MARKETS REALLY WORK
“It is remarkable that a science which began with the consideration of games of chance
should become the most important object of human knowledge ... the most important
questions of life are for the most part only problems of probability.”
Pierre Simon De La Place
Theorie Analystique Des Probabilities 1812
Take a coin and toss it into the air. As the coin spins in the air you have no idea and cannot
predict which way it is going to fall. Yet over many tosses the outcome can reasonably be
predicted. Just as we can predict the toprobabilities to predict market direction. When you
trade you need to trade with the probabilities and odds in your favour.
In recent years many academics have scoffed at the idea that markets can be predicted and
they point to the theory of Random Walk. The theory is based on the assumption that markets
are efficient. The market is one where a large number of equally well informed people
actively compete to try and maximise profits. In such a market, at any time, the price will
reflect all available information as well as all events expected to occur in the foreseeable
future. The theory holds that as all current and future events are discounted, the individual’s
chances of over performing or under performing the market as a whole are even, i.e. you can
never put the odds in your favour, and therefore will not be able to earn consistent profits. If
the theory is correct, our rules and all our trading efforts will count for nothing.
It is amazing this theory has become so widespread and so many people believe it. It is,
however, completely incorrect as it assumes that the decision-making process conforms to
scientific theory. It quite clearly does not; the facts are there for all to see. However, we all
make personal subjective judgements based upon our knowledge, understanding and
emotions. Given the same information, we do not all reach the same conclusions.
If we discount the Random Walk theory and say that human behaviour is unpredictable, then
how can we put the odds in our favour? The answer lies in probabilities discussed earlier. To
trade the markets you need to trade to minimise risk, and maximise gains. The way to do this
is to catch the trend. Take any chart over a period of time and you will notice trends and
recurring patterns. If all humans think differently, how and why do these patterns emerge?
The answer can be found in the theory of “chaos”, which postulates that certain types of
natural activity are chaotic except in terms of probability. To give an example, the heartbeat
of a person can be charted but given certain conditions, a heart will go into random
fibrillation during which time the heartbeat cannot be predicted or modelled. Mathematically,
weather forecasting is another area where chaos theory applies. The unpredictability of
weather forecasting comes from what is called sensitivity to initial conditions. Mathematical
models fail in forecasting because the slightest divergence between simulated and actual
conditions multiplies in a complex chain of cause and effect relationships, giving rise to
results in the model totally different than in nature. The best meteorologists can do is to
forecast weather within the limits of probability.
While admitting that certain events in nature don’t follow a perfect mathematical order, chaos
theory says that they can still be understood, predicted and controlled. It directly challenges
Random Walk that there is no way of predicting market movement. There are no certain
predictions but there is order to the chaos, and forecasts can be made on the basis of
probability. To understand probability in financial markets, we need to look at the
psychology of the participants.sses of a coin with probability, so too can we use.
should become the most important object of human knowledge ... the most important
questions of life are for the most part only problems of probability.”
Pierre Simon De La Place
Theorie Analystique Des Probabilities 1812
Take a coin and toss it into the air. As the coin spins in the air you have no idea and cannot
predict which way it is going to fall. Yet over many tosses the outcome can reasonably be
predicted. Just as we can predict the toprobabilities to predict market direction. When you
trade you need to trade with the probabilities and odds in your favour.
In recent years many academics have scoffed at the idea that markets can be predicted and
they point to the theory of Random Walk. The theory is based on the assumption that markets
are efficient. The market is one where a large number of equally well informed people
actively compete to try and maximise profits. In such a market, at any time, the price will
reflect all available information as well as all events expected to occur in the foreseeable
future. The theory holds that as all current and future events are discounted, the individual’s
chances of over performing or under performing the market as a whole are even, i.e. you can
never put the odds in your favour, and therefore will not be able to earn consistent profits. If
the theory is correct, our rules and all our trading efforts will count for nothing.
It is amazing this theory has become so widespread and so many people believe it. It is,
however, completely incorrect as it assumes that the decision-making process conforms to
scientific theory. It quite clearly does not; the facts are there for all to see. However, we all
make personal subjective judgements based upon our knowledge, understanding and
emotions. Given the same information, we do not all reach the same conclusions.
If we discount the Random Walk theory and say that human behaviour is unpredictable, then
how can we put the odds in our favour? The answer lies in probabilities discussed earlier. To
trade the markets you need to trade to minimise risk, and maximise gains. The way to do this
is to catch the trend. Take any chart over a period of time and you will notice trends and
recurring patterns. If all humans think differently, how and why do these patterns emerge?
The answer can be found in the theory of “chaos”, which postulates that certain types of
natural activity are chaotic except in terms of probability. To give an example, the heartbeat
of a person can be charted but given certain conditions, a heart will go into random
fibrillation during which time the heartbeat cannot be predicted or modelled. Mathematically,
weather forecasting is another area where chaos theory applies. The unpredictability of
weather forecasting comes from what is called sensitivity to initial conditions. Mathematical
models fail in forecasting because the slightest divergence between simulated and actual
conditions multiplies in a complex chain of cause and effect relationships, giving rise to
results in the model totally different than in nature. The best meteorologists can do is to
forecast weather within the limits of probability.
While admitting that certain events in nature don’t follow a perfect mathematical order, chaos
theory says that they can still be understood, predicted and controlled. It directly challenges
Random Walk that there is no way of predicting market movement. There are no certain
predictions but there is order to the chaos, and forecasts can be made on the basis of
probability. To understand probability in financial markets, we need to look at the
psychology of the participants.sses of a coin with probability, so too can we use.
THE TOP WINNING HAND
THREE CLUBS AND TWO DIAMONDS CONSTITUTE A GAMBONI, THE TOP
WINNING HAND IN THIS ESTABLISHMENT.
everything, and on the final round of betting with the same leather- faced farmer, he has to
throw in his solid gold Rolex to make the call. The farmer turns over his cards, a queen-high
spade flush. Joe turns over his Gamboni and starts to rake in the pot.
“Hold it there, fella,” says the farmer, his grin cutting deep lines in his cheeks.
“But I got a Gamboni!” cries an exasperated Joe.
“Sure ‘enough, but look at the sign over there,” and he points over Joe’s left shoulder.
WINNING HAND IN THIS ESTABLISHMENT.
Joe is really angry, but after all, rules are rules, so he continues to play with what is left of his
everything, and on the final round of betting with the same leather- faced farmer, he has to
throw in his solid gold Rolex to make the call. The farmer turns over his cards, a queen-high
spade flush. Joe turns over his Gamboni and starts to rake in the pot.
“Hold it there, fella,” says the farmer, his grin cutting deep lines in his cheeks.
“But I got a Gamboni!” cries an exasperated Joe.
“Sure ‘enough, but look at the sign over there,” and he points over Joe’s left shoulder.
Joe looks:
ONLY ONE GAMBONI WILL BE PERMITTED PER NIGHT IN THIS
ESTABLISHMENT.
Joe, broke but thankful for the invention of credit cards, leaves the barn with dung on his
shoes, and the leather-faced farmer drives his tractor home feeling the weight of a solid gold
Rolex on his wrist.
So the secret of the Gamboni is this: if you want to win, you’ve got to know the rules; and
also, you can’t win if you’re not at the table.”
Reprinted by permission of J. Wiley & Sons.
Excerpts from Trader Vic - Methods of a Wall Street Master. See enclosed reading list.
Any gambler will tell you that to make money you need to keep the odds in your favour, and
the same is true in trading, there are no certainties, only probabilities. To win, you need to
speculate when the odds are in your favour, so succeed you need to accurately predict and
play the odds. You need to know how to place your bets to maximise your profits and keep
your losses small. To do this you need a disciplined trading plan. The following rules, if
followed, will help you keep the odds in your favour, know and follow the rules and you will
succeed. If you break any of the rules you will end up losing money.
“Luck, continued the gambler reflectively, is a might queer thing. All you know about it is
it’s bound to change, and it’s finding out when it’s going to change that makes you.”
Berte Harte - The Outcasts Of Poker Flat
We stated earlier that when we trade we confront an unstructured environment and, to operate
effectively, we need to create a structure for ourselves. The reason we need rules is we need
to combat the destructive emotions referred to earlier and give us discipline. Assuming you
have educated yourself and developed a trading method, you will now need to execute it with
confidence, entering and exiting trades in a consistent manner. Without rules your emotions
will dictate your decisions and lead you to financial disaster.
THE SECRET OF THE GAMBONI
The secret of the Gamboni is the secret of how to survive in the financial markets.
Understand it ... really understand it ... and you are on your way to success as a trader,
speculator, or investor. So, here it is.
Joe was a card player, a good one. He was so good, in fact, that he had to move from city to
city and find games where he wasn’t known in order to play for high stakes. One afternoon,
in a bar in the suburbs of Chicago, he’s shooting the breeze with the bartender and asks,
“Say, where can I find a good card game around here?”
“What kind of stakes are you talking about?”
“Big,” Joe says, “the biggest game you know about.”
“Well now, I hear there’s a game out in the farm country. It’s a bit of a drive, but these
particular farmers play for big money. Let me make a call and see if it’s OK.”
So the bartender makes the call, and then gives Joe directions to the game. That evening, after
a long drive, Joe pulls up to this barn in the middle of nowhere. Tentatively, he walks inside,
tiptoeing around the fetid piles on the floor. At the back of the barn, he spots a partially open
door, with light and smoke pouring through the opening. The familiar rush of anticipation
and energy sweeps through him as he enters the room and introduces himself.
Farmers in overalls sit around the table, chewing cigars and puffing their pipes. In a quick
glance, Joe estimates the current pot to be about $40,000 - perfect. So he sits down. “Ante
up,”
says the farmer holding the deck of cards. And Joe begins to play.
About an hour later, Joe is holding is own. He is about even when he draws three aces and
two queens - a full house. With a large pot already on the table, he raises $15,000. The next
two guys fold, but the leather-faced farmer across the table calls him and raises another
$15,000, without so much as batting an eye. Joe, certain that the guy us bluffing, calls the bet
and lays down his aces-high full house. The farmer lays down junk: three clubs and two
diamonds of mixed numbered cards. Joe, suppressing a smile, starts to rake in the pot.
“Wait just a darn minute,” says the farmer, a stern and reprimanding tone in his voice.
“Whattaya mean, wait a minute,” says Joe, “you got nothin.”
“Take a look at the sign over your right shoulder,” smiles the farmer.
Joe looks:
Understand it ... really understand it ... and you are on your way to success as a trader,
speculator, or investor. So, here it is.
Joe was a card player, a good one. He was so good, in fact, that he had to move from city to
city and find games where he wasn’t known in order to play for high stakes. One afternoon,
in a bar in the suburbs of Chicago, he’s shooting the breeze with the bartender and asks,
“Say, where can I find a good card game around here?”
“What kind of stakes are you talking about?”
“Big,” Joe says, “the biggest game you know about.”
“Well now, I hear there’s a game out in the farm country. It’s a bit of a drive, but these
particular farmers play for big money. Let me make a call and see if it’s OK.”
So the bartender makes the call, and then gives Joe directions to the game. That evening, after
a long drive, Joe pulls up to this barn in the middle of nowhere. Tentatively, he walks inside,
tiptoeing around the fetid piles on the floor. At the back of the barn, he spots a partially open
door, with light and smoke pouring through the opening. The familiar rush of anticipation
and energy sweeps through him as he enters the room and introduces himself.
Farmers in overalls sit around the table, chewing cigars and puffing their pipes. In a quick
glance, Joe estimates the current pot to be about $40,000 - perfect. So he sits down. “Ante
up,”
says the farmer holding the deck of cards. And Joe begins to play.
About an hour later, Joe is holding is own. He is about even when he draws three aces and
two queens - a full house. With a large pot already on the table, he raises $15,000. The next
two guys fold, but the leather-faced farmer across the table calls him and raises another
$15,000, without so much as batting an eye. Joe, certain that the guy us bluffing, calls the bet
and lays down his aces-high full house. The farmer lays down junk: three clubs and two
diamonds of mixed numbered cards. Joe, suppressing a smile, starts to rake in the pot.
“Wait just a darn minute,” says the farmer, a stern and reprimanding tone in his voice.
“Whattaya mean, wait a minute,” says Joe, “you got nothin.”
“Take a look at the sign over your right shoulder,” smiles the farmer.
Joe looks:
Pride
“Pride of opinion has been responsible for the downfall of more men on Wall Street than any
other factor.”
Charles Dow
Pride of opinion is a characteristic of losing traders that have not been able to see their inner
selves; they do not know their own strengths and weaknesses. They do not understand
themselves and their emotions. Pride is simply stubbornness and the inability to admit a
mistake. Any trader who insists on holding a viewpoint in total contradiction to what is
actually going on around him for no other reason that he cannot admit he is wrong, will meet
the financial disaster. Price can be a direct reflection of the preceding emotions.
The market is all-powerful, it moves regardless of any man. You can do nothing to influence
where it is going and you cannot control its behaviour. When you compete in the market only
you can be wrong, and it can never be the other way around. Although the market is a harsh
environment and does not care about your welfare, it is not, as many losing traders think, out
to punish you.
Consider an analogy with the sea. A sailor cannot control the sea but he can control himself,
and in doing so he can earn a reward. A skilled mariner knows that the ocean needs to be
respected, but he does not fear it. He develops skills and discipline to help him benefit from
it. By using his acquired skills, no matter what the weather, the sailor is confident of getting
into port without harm, and earning his living. An ocean is like the markets, it can make a
man money or he can drown in it, the choice is there for each individual.
Just as mariners follow rules to navigate from A to B, so must a trader follow rules to keep
him from being sidetracked. The rules that I will outline are not new and they are not
original. They will, however, help you reach your goal of consistent profits. If you do not
have rules and guideline you will fall victim to outside influences and be influenced by your
emotions, your objectivity will be lost and so too will your money.
other factor.”
Charles Dow
Pride of opinion is a characteristic of losing traders that have not been able to see their inner
selves; they do not know their own strengths and weaknesses. They do not understand
themselves and their emotions. Pride is simply stubbornness and the inability to admit a
mistake. Any trader who insists on holding a viewpoint in total contradiction to what is
actually going on around him for no other reason that he cannot admit he is wrong, will meet
the financial disaster. Price can be a direct reflection of the preceding emotions.
The market is all-powerful, it moves regardless of any man. You can do nothing to influence
where it is going and you cannot control its behaviour. When you compete in the market only
you can be wrong, and it can never be the other way around. Although the market is a harsh
environment and does not care about your welfare, it is not, as many losing traders think, out
to punish you.
Consider an analogy with the sea. A sailor cannot control the sea but he can control himself,
and in doing so he can earn a reward. A skilled mariner knows that the ocean needs to be
respected, but he does not fear it. He develops skills and discipline to help him benefit from
it. By using his acquired skills, no matter what the weather, the sailor is confident of getting
into port without harm, and earning his living. An ocean is like the markets, it can make a
man money or he can drown in it, the choice is there for each individual.
Just as mariners follow rules to navigate from A to B, so must a trader follow rules to keep
him from being sidetracked. The rules that I will outline are not new and they are not
original. They will, however, help you reach your goal of consistent profits. If you do not
have rules and guideline you will fall victim to outside influences and be influenced by your
emotions, your objectivity will be lost and so too will your money.
DESTRUCTIVE EMOTIONS
There are four that are really important in investing: greed, fear, hope and pride.
short period of time. They want big profits and they want them now. The desire to make
money, however, is in many instances unrealistic. If, for example, I gave you a small
vegetable patch and told you to feed your family from it, you would probably think about it
logically and deduce that you had insufficient resources at your disposal to achieve the aim.
Contrast this with the amount of people I speak to who want to invest $5,000 in a commodity
account, and earn a living from it and retire from their job. The chance of achieving their
desire is almost nil, but over confidence and desire overcome logic and objective thinking.
stimulates more fear. Fear then spreads; a fearful man’s psychology is contagious. If people
around us are fearful, so are we. If we have suffered fear in the past, we retain all our past
experiences in our subconscious mind. Finally we have the fear of losing. Also, if we see
other people making money, we want to be in on the action as well.
making should not be based purely on desire, but on a rational assessment of the facts. When
Greed
short period of time. They want big profits and they want them now. The desire to make
money, however, is in many instances unrealistic. If, for example, I gave you a small
vegetable patch and told you to feed your family from it, you would probably think about it
logically and deduce that you had insufficient resources at your disposal to achieve the aim.
Contrast this with the amount of people I speak to who want to invest $5,000 in a commodity
account, and earn a living from it and retire from their job. The chance of achieving their
desire is almost nil, but over confidence and desire overcome logic and objective thinking.
Fear
stimulates more fear. Fear then spreads; a fearful man’s psychology is contagious. If people
around us are fearful, so are we. If we have suffered fear in the past, we retain all our past
experiences in our subconscious mind. Finally we have the fear of losing. Also, if we see
other people making money, we want to be in on the action as well.
Hope
making should not be based purely on desire, but on a rational assessment of the facts. When
a trader loses he hopes that things will get better when he really should be being objective.
If you read the great traders, you will constantly see them refer to Hope and Fear and their
destructive power.
“Hope and fear: I have written about this often in my books, and I feel I cannot repeat it too
often. The average man or woman buys commodities because they hope they will go up or
because somebody advises them they will go up. This is the most dangerous thing to do, never
trade on hope. Hope wrecks more people than anything else. Face the facts and when you
trade, trade on facts, eliminating hope.”
“Fear causes many losses. People sell out because they fear commodities are going lower,
but they often wait until the decline has run its course and sell near the bottom ... never make
a trade on fear.”
W.D. Gann
“The successful trader has to fight ... two deep-seated instincts, instead of hoping he must
fear, instead of fearing he must hope. He must fear that his loss may develop into a much
bigger loss, and hope that his profit may become a big profit. It is absolutely wrong to
gamble in stocks the way the average man does.”
“The speculator’s chief enemies are always boring from within. It is inseparable from human
nature to hope and to fear.”
Jesse Livermore
After greed the average speculator, to achieve his desire, falls victim to both hope and fear
and ultimately loses his money.
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