Get Rich With Forex

7 World Greatest Investors

2010-02-25T13:29:00.002Z

Do you all know who are the 7 greatest investors in our human history?

Let's look at the exciting story about each of them.

#1: Warren Buffett

~ Known as "Oracle of Omaha", top of the world's greatest investor list.

~ Follows principles of value investing (Benjamin Graham), he becomes the 1st or 2nd richest man in the world

~ If you invested $10,000 in his company Berkshire Hathaway, today you have above $50 million.

~ He donated most of his wealth to Bill & Melinda Gates Foundation

#2: John C Bogle

~ Founder & Retired CEO of Vanguard Group mutual fund

~ Pioneered no-load mutual fund & low-cost index investing

~ named "Investment Giants" of the 20th century by Fortune Magazine

#3: Peter Lynch

~ One of the best stock-pickers in the world

~ Managed the fastest growing fund Fidelity Magellan Fund from 1977 to 1990

~ His fund grew from $20 million to $14 billion

~ Author of world best selling investment book "One Up On Wall Street", "Beating The Street" & "Learn to Earn"

4. Julian Robertson

~ Had the best Hedge Fund record throughout 1980s & 1990s

~ His hedge fund is world famous, Tiger Management

~ Compound rate of return was 32%

~ Named as "Wizard of Wall Street"

#5. Michael Steinhardt

~ 24% compound average annual returns over a 28-year period

~ Investor of wide range of instruments, including stocks, bonds, long & short options, currencies.

#6. George Soros

~ Legendary currency speculator

~ Shorted $10 billion on British pound & generated profit of $1 billion in a single day

~ Known as "the man who broke the Bank of England"

~ Also famously known as someone who "trigger" the Asian financial crisis in 1997

#7. John Templeton

~ He is a Billionaire

~ Pioneer of globally diversified mutual funds, Templeton World Fund

~ Before him, no one had heard of investing overseas

Success Always with You,

P.S. ***Hot***

Number 1 Top Rated Forex Trading Automation Software >>

Rating 9.6 out of 10

Free Forex Signals - 15.12.2009

2009-12-15T06:44:00.005Z

SET PENDING ORDER(Buy Stop or Sell Stop).

GBP/USD

SELL @1.6355 SL @1.6385 TP @1.6325/6275
BUY @1.6190 SL @1.6160 TP @1.6220/6270

USD/JPY

SELL @88.40 SL @88.70 TP @88.20/87.90
BUY @89.15 SL @88.85 TP @89.35/70

** Always beware from Forex news revision. Check here for latest news..

Free Forex Signals - 10.12.2009

2009-12-10T12:43:00.001Z

SET PENDING ORDER(Buy Stop or Sell Stop).

GBP/USD

SELL @1.6190 SL @1.6230 TP @1.6160
BUY @1.6360 SL @1.6330 TP @1.6400

** Always beware from Forex news revision. Check here for latest news..

How To Use Pivot Points in Forex Trading?

2009-12-08T14:32:00.003Z

Pivot points strategy has been around for a long time and is very important for forex traders. Pivot points show us the levels at which the direction of price movement may change. With couple of simple calculations forex traders are able to have a general idea where the price movement is heading to during the day.

How to Calculate Pivot Points

Pivot points are calculated using couple of mathematical formulas and data from the previous day or from the last trading session, which includes high, low and close. The sequence of points resulting from the calculations is important support and resistance levels.

Below is the formula of pivot point calculation:

Pivot point (PvPt) = (High + Low + Close) divided by 3

Once we know the pivot point, it is easy to obtain support and resistance levels by:

First level support and resistance:

First support (Sup1) = (2 multiply by PvPt) – High
First resistance (Res1) = (2 multiply by PvPt) – Low

Second level of support and resistance:

Second support (Sup2) = PvPt – (High – Low)
Second resistance (Res2) = PvPt + (High - Low)

Obviously, your forex broker has thought about the inconvenience of calculating pivot points yourself, and therefore your trading platform performs the calculations automatically and shows it on the chart. All you have to do is to understand the meaning of the pivot points and the use.

How To Use Pivot Points?

First of all, you have to always remember that pivot points are short-term term indicators and therefore are useful only for one day, after which you will have to calculate the whole thing all over again.

Once you have pivot points on your hands, you actually have the primary support/resistance level. Meaning that, a major price change is probably going to take place at this level.

Pivot points can predict two things:

# General market trend: in case pivot point price is headed upward, the market is bullish; in case pivot point price is headed downward, the market is bearish.
# Enter and exit levels of the market: As a forex trader you might put a limit order whenever the price goes over the resistance level. On the other hand, you can set stop-loss in case the support level is breached.

Support and resistance levels may be stronger from one another. The strength is calculated by the amount of times the price jumps off the pivot level. The level is considered the strongest whenever the currency pair reaches the pivot level then reverses many times.

What Should You Do?

Whenever the currency pair is reaching up for the top resistance level, you most probably should sell the pair and place a stop right above the resistance level.

Whenever the currency pair is reaching down the lower support lever, you most probably should buy the pair and place a stop right below the support level.

Things To Remember

Below are some trading tips you might want to memorize:

# When price is at Pivot Point – expect a move back to Resistance Level 1 or Support Level 1.
# When price is at Resistance Level 1 - expect a move to Resistance Level 2 or back to Pivot Point.
# When price is at Support Level 1 – expect a move to Support Level 2 or back to Pivot Point.
# When price is at Resistance Level 2 – expect a move to Resistance Level 3 or back to Resistance Level 1.
# When price is at Support Level 2 – expect a move to Support Level 3 or back to Support 1.

Disappointment With Pivot Points

Pivot points sound like a perfect indicator to predict market trend without a single mistake and make tones of money! Well, the reality isn’t quite so. We have to disappoint you right here and there – pivot points, like many other things in life, don’t work all the time. Sometimes the price just sort of gets stuck around pivot lines which make it extremely difficult to predict what will be the next price movement. In other case, the price doesn’t even reach the pivot line and reverse. And it is also possible to witness how a pivot line is strong support level and you go long, but then the price decides to fall and you freak out and stop… but then, against all odds, the price reverses back your way. The pivot point trading strategy is up to you and it is your responsibility to follow it.

Final Word

The FOREX market is a huge market with lots of activity and potential, but when you're day trading, or trading any kind of volatile market, make sure you use extreme caution and risk control. The best traders are like the best boxers; if two boxers are evenly matched but one has better defense than the other, then that is the one who will tend to win in the long run. So it is with day trading the FOREX, in that the best traders are the ones who have the best methods of risk control and money management that act as their defense.

Free Forex Signals - 07.12.2009

2009-12-07T10:35:00.002Z

SET PENDING ORDER(Buy Stop or Sell Stop).

GBP/USD

SELL @1.6410 SL @1.6690 TP @1.6170
BUY @1.6684 SL @1.6410 TP @1.6970

EUR/USD

SELL @1.4820 SL @1.5080 TP @1.4570
BUY @1.5080 SL @1.4820 TP @1.5350

*Please set your own pips(profit) target.

** Always beware from Forex news revision. Check here for latest news..

Free Forex Signals - 03.12.2009

2009-12-03T02:33:00.007Z

SET PENDING ORDER(Buy Stop or Sell Stop).

GBP/USD

SELL @1.6622 SL @1.6702 TP @1.6562
BUY @1.6492 SL @1.6428 TP @1.6581

EUR/USD

SELL @1.5028 SL @1.5113 TP @1.4953
BUY @1.5113 SL @1.5028 TP @1.5208

*Please set your own pips(profit) target.

** Always beware from Forex news revision. Check here for latest news..

Free Forex Signals - 01.12.2009

2009-12-01T05:02:00.002Z

EUR/USD

Waiting for news today. Likely to go down to around 1.4940, and after that, have potentially to go up to around 1.5050.

(Current Price: 1.4985)

GBP/USD

Waiting for news today. It's likely to go down to around 1.64 area and after that have potentially to go up to around 1.65 or higher.

(Current Price: 1.6412)

USD/JPY

More likely to ranging between 85 and 86.

(Current Price: 87.43)

AUD/USD

More likely to go up to around 0.92, and after that, it might have potentially to go down to around 0.91.

(Current Price: 0.9110)

USD/CHF

More likely to go up to around 1.0070, and after that, it might have potentially to go down below 1.00.

(Current Price: 1.0074)

** Always beware from Forex news revision. Check here for latest news..

Free Forex Signals - 25.11.2009

2009-11-25T06:28:00.002Z

EUR/USD

Likely to go up to around 1.5, and after that, it might have potentially to go down to around 1.4950.

(Current Price: 1.4994)

GBP/USD

It's likely to go up to around 1.6660 and after that have potentially to go down to around 1.6560.

(Current Price: 1.6627)

USD/JPY

Zig Zag. Likely to go up to around 89.

(Current Price: 88.31)

** Always beware from Forex news revision. Check here for latest news..

Free Forex Signals - 23.11.2009

2009-11-23T06:20:00.001Z

SELL GBP/USD 1.6530

Take Profit 1.6485. Stop Loss 1.6560

SIGNAL VALID FROM 0.00 GMT - 17.00 GMT

(Current Price: 1.6544)

** Always beware from Forex news revision. Check here for latest news..

Forex FAQ

2009-11-09T07:14:00.002Z

What is Forex?

The system of global trading in foreign currency is known as the Foreign Exchange Market, Forex, or just FX. Over the last three decades the foreign exchange market has become the world's largest financial market, it trades over $1.5 trillion USD daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Forex is part of the bank to bank currency market known as the 24-hour Interbank market.

Why Forex trading?

Forex trading is attractive because it offers unparalleled freedoms. A Forex trader can live almost anywhere as long as he/she is within reach of the internet. A Forex trader can work from home or office, and in some cases, even trade while traveling! A Forex trader can usually choose his/her own hours to work since the global foreign exchange market is open 24 hours a day. A Forex trader avoids many common headaches associated with running a business because there is NO inventory, NO shipping, NO billing, NO collections, NO employees, NO commuting and NO dress code. And finally, since Forex traders can potentially earn a very high income, they enjoy the possibility of never, ever working for someone else again!

How high are the risks in FOREX trading?

The risks can be high but also controllable. Forex traders around the world are competing against other forex traders, banks, and institutional traders who are seeking the same potential rewards from their own trading activities. Money management, discipline, talent, and a lack of emotion are traits you will want to develop in FOREX trading. But remember, FOREX Trading is speculative and any capital used should be risk capital. In fact, we recommend that you trade on a demo account until you have shown profit for at least three consecutive months before trading real money.

What are "long" or "short" positions?

A long position is one in which you buy a currency at one price, with the expectation of selling it later on at a higher price. Obviously, you anticipate that the market will rise. A short position is one in which you sell a currency with the expectation of buying it back at a lower price. Here, you expect the market to fall. Every FX position you take automatically entails going long in one currency, and short the other. If you buy one, by default you are shorting the other.

What is a Pip?

A pip is a term used in the currency market to represent the smallest incremental move an exchange rate can make. Depending on context normally one basis point is 0.0001, as is the case of EUR/USD, GBP/USD, USD/CHF. In example if the EUR/USD moves from 1.2561 to 1.2562 it is one pip.

How much a pip worth?

If you trade the full contract (100k of currency) the EUR/USD and GBP/USD are worth approximate $10. In other words if you have a trade with 50 pips in profit, it means the gain is $500. ($10 per pip x50 pips). If you trade a mini account is 1/10th of the size, 50 pips will worth $50.

Free Forex Signals - 5.11.2009

2009-11-05T06:24:00.002Z

EUR/USD

Likely to go down to around 1.48 or may be 1.4760, and after that, it might have potentially to go up to around 1.49.

(Current Price: 1.4848)

GBP/USD

It's likely to go down to around 1.6460 and after that have potentially to go up to around 1.66.

(Current Price: 1.6518)

USD/JPY

Likely to go down to around 90 or lower and have potentially to go up.

(Current Price: 90.47)

** Always beware from Forex news revision. Check here for latest news..

Free Forex Signals - 4.11.2009

2009-11-04T05:14:00.004Z

EUR/USD

Waiting the FOMC announcement. But if you still want to place an order, may be it can go up higher than 1.4780 or even 1.48.

(Current Price: 1.4728)

GBP/USD

It's likely to go down to around 1.63 or lower and after that have potentially to go up to around 1.64-1.65.

(Current Price: 1.6429)

USD/JPY

Likely to go down to around 89.50 and after that have potentially to go up to around 90 or higer.

(Current Price: 90.28)

** Always beware from Forex news revision. Check here for latest news..

Forex Signal Indicator - RSI Signal

2009-11-03T05:44:00.005Z

The Only FOREX Indicator that won 127,912$ in 2009!

RSI Signal is an indicator that generates signals when Relative Strength Index crosses the overbought and oversold levels, and plots the signals on the chart.
It generates highly accurate reversal signals.
Automatic alert when a signal is present

Download RSI Signal Indicator

Download RSI Signal for MetaTrader 4

Free Forex Signals - 3.11.2009

2009-11-03T05:28:00.002Z

EUR/USD

It is complicated. Buy if it reaches 1.4860, and Sell if it reaches 1.4750.

(Current Price: 1.4783)

GBP/USD

It's likely to go down to around 1.6240 and after that have potentially to go up to around 1.6460.

(Current Price: 1.6370)

USD/JPY

Likely to go up to around 90.90 or higher and after that, have potentially to go down to around 89.

(Current Price: 90.22)

Free Forex Signals - 2.11.2009

2009-11-02T03:22:00.002Z

EUR/USD

Likely to go up to area 1.48. After that, it might have potentially to go down to 1.47.

(Current Price: 1.4753)

GBP/USD

It is more likely to go up to around 1.65 or may be higher, and after that, it might have potentially to go down.

(Current Price: 1.6440)

** Always beware from Forex news revision. Check here for latest news..

Free Forex Signals - 30.10.2009

2009-10-30T05:53:00.003Z

EUR/USD

Likely to go up to around 1.49. After that, it might have potentially to go down.

(Current Price: 1.4832)

GBP/USD

It is more likely to go up to around 1.66 or may be higher, and after that, it might have potentially to go down to around 1.65.

(Current Price: 1.6541)

USD/JPY

Likely to go down to around 90.50.

(Current Price: 91.00)

USD/CHF

Likely to go down to around 1.0140 or lower, after that it might have potentially to go up to around 1.02.

(Current Price: 1.0182)

** Always beware from Forex news revision. Check here for latest news..

Free Forex Signals - 29.10.2009

2009-10-29T04:04:00.001Z

EUR/USD

Likely to go up to around 1.48. But maybe it goes down to around 1.4640 before enter Buy.

(Current Price: 1.4719)

GBP/USD

More likely to go up to around 1.64 before go down to around 1.6320.

(Current Price: 1.6371)

Free Forex Signals - 28.10.2009

2009-10-28T04:33:00.002Z

EUR/USD

Likely to go down to around 1.4730. After that, it might have potentially to go up to around 1.4870 or even 1.49.

(Current Price: 1.4806)

GBP/USD

Wait and looking for the best price to enter Buy, may be after it goes down at around 1.6340 before go up to around 1.64 or may be higher

(Current Price: 1.6353)

USD/JPY

Will go down around 91.00 after that it might have potentially to go up.

(Current Price: 91.08)

USD/CHF

Will go down to around 1.0130 or may be lower.

(Current Price: 1.0212)

Free Forex Signals - 27.10.2009

2009-10-27T03:23:00.001Z

EUR/USD

Likely to go up to around 1.49 and maybe 1.50. Find the best price first to enter Buy.

(Current Price: 1.5028)

Free Forex Signals - 26.10.2009

2009-10-26T06:36:00.002Z

EUR/USD

Likely to go down to around 1.50 or lower. After that, it might have potentially to go up to around 1.5060 and then goes down again.

(Current Price: 1.5028)

GBP/USD

It's likely to go down to around 1.620 and after that have potentially to go up to around 1.630.

(Current Price: 1.6285)

USD/JPY

Complicated. Likely to go up to around 92.

(Current Price: 91.86)

USD/CHF

Likely to go up to around 1.01 and then goes down.

(Current Price: 1.0075)

User guide for eToro forex trading platform

2009-10-24T22:37:00.005+01:00

The eToro ForEx software is the simplest ForEx trading software which can be used by anybody. Even if you have the least knowledge about ForEx trading, its graphical user interface is easy to understand and the tutorial is designed to help you and sharpen you with ForEx trading skills. Using quality software as this, you can trade like a pro within a short span. Its professional tools are designed to provide accuracy and reliability. It provides its users with an approach which is professional yet fun.

How it all started

Located in Cyprus and founded in 2006, its clear strategy attracted a wide number of people. It’s one of the most sought after online trading program people look for. One of the pioneers in online ForEx trading and still the first choice of a vast majority of traders, eToro continues to aim at making this software available to even beginners without any complexities. It is still the first-choice software for all the expert and experienced ForEx traders.

What is eToro?

It’s an online trading tool for real time transactions. It’s about buying a currency and selling another. It allows its users to determine the value of a currency by the end of a certain period. Rules are simple: buy at lesser values and sell at more. Though it may sound a bit complicated, it’s not that complex at all. eToro makes it so simple that even a beginner starts doing ForEx trading like a pro right from the first time. It has earned its reputation in a very short time and is continually increasing its popularity amongst traders worldwide. Its live demo, free trading, tutorials, glossary and step-by-step elaboration is a boon in trading industry. It has made trading so simple for laymen. What’s more? You don’t have pay any commission to eToro. Everything you trade is all yours! Furthermore, its completely legal and with some practise you can earn a lot.

Advantages of using eToro

eToro is a user friendly software which provides a self-explanatory platform to its users. It provides its users with different tools which are easy to use and with its guide and glossary it makes it easier for even a beginner to understand and play like a professional. Though there are many other software available in the market to compete with it, it’s is still the preferred choice by a majority. Its chat feature is an awesome one wherein you can chat with other traders, take tips and discuss any trading point you have. Its customer service is one of the reasons why eToro is popular as it provides support even on weekends. Its graphical interface is not complex at all. It merges all the information and shows it in the simplest form as to be understood by anybody. If you don’t want to spend any money, this software is available for free download and you can use it completely without any obligation. You can learn the tricks and when you are ready to use the software, you may deposit the amount you want to start trading with and then trade for real.

Minimum system requirements

Windows operating system: windows 2000, Windows NT, Microsoft windows Xp or Microsoft windows Vista.

“How to’s” for new users

Once downloaded and installed on your computer, the application will run by itself and show you two modes: ‘Trade for Real’ and ‘Practice Trading’. If you want to practice a little before using the software for real, you may go through ‘practice trading’ which is aimed at honing the skills of a beginner and self-explanatory.

Once you are ready for the real thing, you must click on trade for Real. After clicking on it, it will give you a screen to enter your existing user name or open a new account. As you are new to it, you must click on “Open new account.” Then you will be prompted to fill a form which includes your personal information like your name, date of birth, email, address, phone etc. After entering all the information, submit the details by clicking on Submit button. Once submitted, you will see a screen containing your chosen username and password. It will also tell you that an email has been sent to the email you filled in the form containing these details, in case you need it later.

Click on Login to start trading. It will give you two options: ‘Visual’ and ‘expert’ modes. If you are an expert, you may choose expert mode otherwise it’s advisable to choose visual mode which is made to make things easier for novice. To start trading, you need to deposit money in your account. Minimum amount you can deposit is $50 and minimum trades are of $25. Once you deposit this amount, your account is opened with one of the two ForEx brokers: Retail Fx or IFX markets.

How to deposit money in your account

Once you are logged in to your account, go to deposit option in account balance. There are many ways through which you can deposit money to your account. You can use your credit card, wire transfer, though paypal, transfer through Western Union, Moneygram, Webmoney or Neteller.

Additional features of eToro software

Trading Log: Whenever you want to see the history of your activities, you may go to trading log and click on “history.” You may also click on “active trade” to see your active traders. You can also close a trade from here.

Championship: Championships are organized in etoro trading community monthly and offer great earning potential. To take participation in the championship, you may go to “community” tab and then click on “championship.”

Forums: This software also includes a chat and forum feature so that you can chat with other users and discuss anything you want. To chat with other traders you may simply click on “community” tab and select “chat.”

Deposit Bonus: Users get a deposit bonus depending upon their own deposit. When they deposit money for the first time, they get a bonus on their deposit which can be as much as up to 50% of their total deposit. So if you make more deposit, you will get more bonuses with a maximum limit of $200.

Overall, if you are looking for good trading software which can provide you with a platform where you can learn and earn, eToro ForEx trading software should be your first choice. It’s easy to use features and help tutorial are class apart and don’t leave you wondering what’s next. It can also be learnt in a way as if you are playing a game which makes it more interesting and keep you attached with it. Not only does it give you a liberty to use this software as per your discretion but also allow you to discuss with online users anything trade related thing you have in your mind. It provides an easy to reach customer service which takes cares of all your questions and queries in a professional manner leaving no scope for any confusion.

The developers’ extensive research and the resultant programming panel make sure that you get an awesome competitive service wherein you are not only satisfied initially but also for a long term so that the trust you gain with them does not fade away with time. It provides you with the tools which are not just at the cutting-edge but also provide you with the feasibility of various options to choose from. Still being the most selling online trading software, it has kept its reputation intact and is one of the most preferred choices for any trader. So it’s time that you download it and try it for free.

Free Forex Signals - 23.10.2009

2009-10-23T09:22:00.002+01:00

EUR/USD

Likely to go down to around 1.4980 - 1.50. After that, it might have potentially to go up to around 1.5060 and then goes down again.

(Current Price: 1.5011)

GBP/USD

It's likely to go down to around 1.6600 or lower and after that have potentially to go up to around 1.67.

(Current Price: 1.6626)

USD/JPY

Around 91.90 and then goes down to around 91.

(Current Price: 91.87)

USD/CHF

Likely to go up to around 1.0090 - 1.01 and then goes down.

(Current Price: 1.0071)

Free Forex Signals - 16.10.2009

2009-10-16T06:23:00.002+01:00

EUR/USD

Likely to go up to around 1.50. After that, it might have potentially to go down to around 1.49.

(Current Price: 1.4920)

GBP/USD

It's likely to go up to around 1.64 and after that have potentially to go down to around 1.63.

(Current Price: 1.6326)

USD/CHF

Likely to go down to around 1.01 and after that have potentially to go up to around 1.02.

(Current Price: 1.0162)

Free Forex Signals - 15.10.2009

2009-10-15T06:28:00.011+01:00

EUR/USD

Likely to go up to around 1.50. After that, it might have potentially to go down to around 1.49.

(Current Price: 1.4957)

USD/JPY

It's likely to go down to around 88.60.

(Current Price: 89.47)

GBP/USD

It's likely to go up to around 1.61 and after that have potentially to go down to around 1.59.

(Current Price: 1.6068)

USD/CHF

Likely to go down to around 1.01 and after that have potentially to go up to around 1.02.

(Current Price: 1.0126)

Free Forex Signals - 14.10.2009

2009-10-14T08:38:00.013+01:00

EUR/USD

Sell around 1.49, and potential to go down to around 1.4750.

(Current Price: 1.4890)

USD/JPY

Sell around 90,and potential to go down to around 89.

(Current Price: 89.20)

GBP/USD

Breakout strategy. Buy if it reaches 1.5990, and Sell if it reaches 1.5890.

(Current Price: 1.5940)

Make Money Online

2008-08-27T21:59:00.006+01:00

Do you worry about how to pay your bills on time? Are you stuck in a job you despise? Do you dream of cars, vacations and houses you can't afford? Are you tired of running out of money before the bills run out? Does all that overtime still get you nowhere? Are you seeking a way to make more money and still spend more time with your family?

Imagine using all your time to do what you love. Eat incridible food. Drive new cars. Vacation with your kids. Relax by the ocean. And imagine that you've even got more free time to savor it all. No Boss. No deadlines. No overtime. No overdue bills. No clogged voicemail boxes. Just you making more money than you ever thought possible.

What is online forex trading?
How can you get rich and powerful from online forex trading?
Who can do online forex trading?
Can you do online forex trading from any country of the world?

If you search on the internet you’ll find millions of investment programs such as real estate, stock trading, bond trading, mutual funds, CDs, auction programs and various internet programs. Perhaps you know about only stock trading or bond trading which are common, but not online forex trading.

Online forex trading is the best kept "Secret" of the rich and powerful, international bankers, the money elite, who own and control all the banks, companies, corporations and foundations in the world. Until six years ago, when the United States Congress passed a law and made it possible for the small investors and average citizen to participate in this online forex trading, only large banks, financial institutions, millionaires and billionaires were doing forex trading.

Online Forex trading is when you buy and sell the foreign currencies of different countries online. Through online forex trading, you can put your money to work for you like millionaires and billionaires do, instead of you working for your money. There is no large investment, hard work, technical training or big "risk".

Online forex trading investment enables you to use $1 to control an investment worth $200, and $500 to control $100,000 and $1000 to control $200,000 and $5000 to control $1,000,000 worth of investment. Online forex trading is the most profitable and attractive internet investing opportunity because you can do it from home or office and from any country in the world.

In online forex trading;
~You don’t need to do any marketing or selling or internet promotion to succeed.
~You don’t need to spend thousands of dollars to do any internet promotion.
~You don’t need any stocks or warehousing.

All that you’ve to do is open an account as little as $1.00. Then follow simple instructions to buy and sell the currencies. When the price of the currency is low, you buy. In a few seconds or minutes, the price may go up, and you may sell it and make a profit. By doing so, in a day, you can easily make $500-$1000 by just buying, selling and trading these foreign currencies for about 3 or 4 hrs!

And get this:

You don’t even have to be stuck sitting behind your computer buying and selling these foreign currencies. You can enter all your buy trades and specify the sell prices you desire and then log off. You can put it into an auto-pilot and forget it, and it will keep generating fast easy cash for you daily, 365 days in the year like an "ATM" machine.

You can do online forex trading and at the same time keep your day job, because in online forex trading, there is no work to do. In the future when you have made hundreds of thousands of dollars, you may then quit your job and just keep doing online forex trading forever and go on permanent vacation!

To understand the beauty of online forex trading, picture this:
In the morning, you get up from sleep at 6 am. You go to your bathroom and have your shower. At 7am, you hurry and eat your breakfast. At 7.20 am, you login into your online forex trading account on the internet and spend 10 minutes to buy about 3 or 4 different currencies, [for example British Pound, Euro, CHF (Swiss Currency) and Yen (Japanese currency).] You can specify the price that you wish to sell each currency.

Then you can log off.

By 9 am, you’re at work in your office or business place. You do your job as usual and by 5 pm, you’re finished and heading home. When you get back home around 6.30 pm, you login into your online forex trading account to see how much money you’ve made. Holy Molly, there in your account it says you have made $750! "Is this for real?", you wonder…

Yes, it is. (Your eyes are not deceiving you…). $750.00 in a day for just clicking your mouse twice and doing no work?. (Where as at your job, you work 8 hrs, but make only probably $150.00!). This is how easy it is to make money from online forex trading.

In online forex trading, you can choose how much money to invest, how much money to make and when to make it. You may make money daily, 365 days all year from online forex trading. Your computer can be transformed into an "ATM" machine that cranks out cash for you daily (without large investment or hassles) from online forex trading.

In online forex trading, you can choose what type of risk you can manage, when to invest and when not to invest. In online forex trading, you’re the boss. You may do as you please. When online forex trading is compared to other investment programs such as stock trading, bond trading, mutual funds, real estate and regular business, it is evident that online forex trading is the fastest and greatest way to make money in the world.

Online Forex trading is a 1.4 trillion dollars daily business and it is larger than all the stock trading in the world combined. These are some of the reasons why I believe that online forex trading is the best online investing opportunity. Perhaps from reading this article you’ll now come to know why online forex trading is the secret behind the greatest wealth on earth and why it has been kept hidden from the average people of the world and therefore little known to the masses.

No matter who you are, be it a salesmen, doctors, office clerks, accountants, carpenters, actors, stockbrokers, small business owners, policemen, firemen, musicians, soldiers, housewives, technicians, attorneys, nurses, students, traders, cab drivers, engineers, you can get rich from online forex trading.

No matter which country that you come from, such as USA, Canada, Belgium, Denmark, Sweden, Finland, Germany, France, United Kingdom, Switzerland, Norway, Italy, Greece, Spain, Mexico, Peru, Venezuela, Ghana, South Africa, Kenya, Egypt, Israel, Turkey, China, India, Japan, Australia, New Zealand... you can create true personal wealth and success from doing online forex trading. Creating personal wealth on the internet from your home or office has never been this sinfully easy.

May these online forex trading insights open your eyes to the possibility of infinite wealth and success that can be yours from online forex trading. Start Trading Forex With as Little as $1.00! It's easy, takes only 5 minutes, and you even earn $5 cash reward!

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Enjoy trading and wish you the best of luck!

Forex Trading Articles

2008-08-26T23:53:00.002+01:00

Being Right and Making Money Are Not Equivalent

Why Psychiatrists Make Better Traders Than Expert Economists?

How To Spot Forex Scams A Mile Away

Overnight Interest/Rollover is Automatically Paid To a Client's Account

Major Fundamental Factors That Can Affect Currency Prices

How Ordinary People Became Millionaire Traders After 2 Weeks

Trading Forex on Autopilot is Great Idea in Theory

The Mrs. Robinson Trading System

Forex Fundamentals: Good News for the Dollar

Bollinger Bands - Guide For Traders When to Trade and When to Fade Forex

What Is The Best Forex Trading Indicator for Swing Trading

Forex Trading Tip - Learn 80 - 20 Rule

Forex Trends - Volatility within the Main Trend and How to Follow Them for Bigger Profits

Forex Trading Robots - Vital Tips You Need to Know For Long Term Profits

FOREX Real-Time Providers: Learn What Is Best For You

Succeeding With FOREX

FOREX Trading Strategy - The Secret of Timing

How To Find A Forex Broker That Won't Rob You Blind

A Short Introduction To Fibonacci Forex Trading

Why it is Impossible to Predict Forex Prices

Can Anyone Success in Forex Trading?

How to Choose the Right Forex Trading Broker

Consistent Profits in Forex Trading

Steps to Creating Your Own For Big Profits

How Physics Can Make You A Lot Of Money

How To Win Short Term In Forex Trading?

Increase Your Trading Profit Using Forex Trading Signals

A Great Forex Trading Indicator

5 Minute Pin Day Trading System

Forex Trading Signal and How To Find Them

The Engine of Trading

Beware of Curve Fitting or Lose!

No Need To Be Accurate To Make Huge Gains

Building One For Big Profits in Simple Steps

Simple Tip For Huge Profits

Correctly or Lose

Forex - Game of Odds?

Signup Liberty Reserve Free Account

2008-08-26T13:18:00.000+01:00

Liberty Reserve is an online payment system and provider of digital gold currency (LR-gold). They are an offshore company incorporated in Costa Rica, launching their USD backed digital currency (LR-USD) in 2002 and they also have a Euro backed digital currency (LR-EUR). Their gold backed digital currency was launched in 2005. Liberty Reserve is a member of the Global Digital Currency Association (GDCA), a voluntary regulatory body in the industry.

Signup Free Liberty Reserve Account Here..

E-bullion Owner Under FBI Investigation

2008-08-26T12:39:00.003+01:00

FBI examining firm of woman fatally slashed in Century City garage.

Detectives investigating the stabbing death of a woman in a Century City high-rise parking garage earlier this week are looking for possible links to an ongoing FBI fraud inquiry of the international gold trading company that she and her estranged husband owned, law enforcement officials said.

The FBI examination of Goldfinger Coin & Bullion Sales and an associated Internet firm, e-Bullion, was underway before the killing, according to officials who spoke on the condition of anonymity because the murder investigation was ongoing. On Monday evening, a man with a knife killed 45-year-old Camarillo resident Pamela Fayed in the garage of the high-rise where she had been visiting a lawyer, investigators said.

The Los Angeles Police Department "is going to be working with the FBI" on the murder case, said Lt. Natalie Williams, who declined to discuss the investigation in any detail and added that it was too early to have developed a theory of the case. "Our detectives are out there pursuing a number of leads," Williams said.

Officials have not named any suspects.

Among Goldfinger's customers was a man later accused of funding terrorist organizations and defrauding investors, according to court documents.

Abdul Tawala ibn Ali Alishtari was indicted last year in New York and is awaiting trial on charges of funneling money through a Goldfinger account in Los Angeles several years ago as part of the fraud scheme, according to federal prosecutors and securities regulators. Alishtari has denied the allegations.

Goldfinger was not implicated in the alleged transactions.

In 2003, Alishtari, a Brooklyn, N.Y.-born entrepreneur, accused Goldfinger in a lawsuit of improperly freezing funds he deposited in an online bullion account, according to court records and attorneys. Goldfinger said in court papers that after its own investigation, it blocked transactions it considered suspicious.

The lawsuit was settled, lawyers for both parties said, after the firm agreed to release the funds.

It was not known what caused the FBI to focus on the Fayeds' companies.

After James Fayed filed for divorce in October 2007, he and his wife started fighting bitterly over their jointly owned businesses, according to documents filed in the case.

Divorce records show that James Fayed sought a restraining order to keep Pamela away from Goldfinger's Camarillo office and to restrict her access to company records. A court commissioner ruled that the couple did not have to produce or make public documents relating to "Alishtari (and subsequent FBI investigation)."

Pamela Fayed asked the court to "join" the businesses to the divorce, which would have removed them from James Fayed's control as the divorce case proceeded. A hearing on the request was set for July 29, the day after Pamela Fayed was killed.

"Jim is distraught over the loss of his wife and is concerned about his safety and that of his . . . daughter," said James Fayed's attorney, Mark Werksman. He declined to elaborate on why the husband and daughter might be in danger.

Pamela Fayed was slashed and stabbed repeatedly about 6:30 p.m. Monday, police said. Witnesses heard her screams and described the killer as a slender man in his 20s who was wearing a black hooded sweat shirt and fled in a red SUV, according to investigators.

The Fayeds' firms function as wholesalers of precious metals and provide trading services to individuals who wish to invest in gold and silver without dealing with the costs of storing, insuring and transporting bullion.

Goldfinger and e-Bullion say they maintain their own bullion vaults in Los Angeles, Delaware, Switzerland and Australia.

The companies say they allow account holders to access their funds through wire transfers and even a debit card that can be used at an ATM to "convert gold to cash," as an e-Bullion executive put it in a 2002 press release. Such arrangements typically appeal to people harboring strong doubts about the stability of the international monetary system and who believe they are insulating their wealth from a global collapse by tying it to the value of gold.

In the divorce papers, Pamela Fayed said that the couple had bank accounts worth $12 million, plus stores of gold and silver kept in vaults.

Rick Copelan, president of Better Business Bureau for Santa Barbara, Ventura and San Luis Obispo counties, said the organization has given e-Bullion an F rating because of 16 unanswered complaints from customers over the last three years.

Copelan said he spoke to Pamela Fayed about the complaints, which included one from a customer who claimed to have lost $51,000 with the company. "They seem to have a pretty good pattern of problems," Copelan said.

Meanwhile, court documents show that Pamela Fayed sought to obtain a restraining order in 2003 against Anthony Fayed, her brother-in-law, but her request was denied because of "insufficient facts." She contended in court papers that he had harassed her and made "hateful racist remarks" after being fired from the family business.

In the court documents, James Fayed alleged that his wife "has a history of making false accusations." He said that when he contemplated divorce in 2002, his wife threatened to retaliate by falsely claiming that he had assaulted her and had sexually assaulted one of their two daughters.

Source: http://www.latimes.com/news

Signup Free Liberty Reserve E-Currency Account Here..

E-BULLION WARNING

2008-07-05T10:24:00.000+01:00

Due to numerous unanswered complaints, the Global Digital Currencies Association would like consumers and merchants to be aware that E-bullion.com closes and/or freezes accounts without any court order or reasonable justification, sometimes freezing customer funds forever.

This unscrupulous policy makes E-bullion an unfavorable system for online commerce and for the safe and secure storage and transfer of funds. Read More Here..

Being Right and Making Money Are Not Equivalent

2008-06-16T14:59:00.000+01:00

At investment conferences, the hottest speakers are those who provide information about high probability entry techniques. If you say, "Trade with the odds on your side" and show someone a technique that is right 75% of the time, you’ll get a large audience. Yet most techniques of this nature usually have big losers and may not even have a positive expectancy. Nevertheless, being right 75% of the time is all is takes to get people to trade them.

How important is it for you to be right? Let’s say I could guarantee that you would make money by the end of the year—lots of money—but you would probably lose money on 90% of your trades. Would you like that? Could you tolerate that? Would you accept that? Most people would probably answer "no" to all three questions. And if that is you, you probably are denying yourself the opportunity to make money simply because being right is more important than making money.

Some of you might be saying, "How could you be wrong 90% of the time and still make money?" The solution goes back to the golden rule of trading, "Cut your losses short and let your profits run." Let’s say that 90% of your trades lose money and that your average loss is $100. On the year you make 100 trades so you end up losing 90 of them for a total loss of $9,000. However, let’s also say that your average winning trade is a big R-multiple. It’s an R-multiple of 100 or a $10,000 winner. You have ten of those in a year, so you end up making $100,000 on your winning trades. If you subtract your winnings from your losses, you’d end up with a profit of $91,000 at the end of the year. You make $91,000, yet 90% of your trades are losers.

My guess is that 99% of the trading population could not trade a system that would produce those kind of results. The reason is because they don’t get to be right enough. They have too many losing streaks. They have losing streaks that are longer than five in a row. Most people cannot tolerate long losing streaks. When they occur, they totally abandon what they are doing. In such a system you could easily have 25 consecutive losses. At that point you become certain that your system is broken, and you try something else.

Let’s look at the opposite end. Suppose you got to be right 90% of the time. Suppose your average win was $100 and that your average loss was $2,000. This means that you’d have a total of $9,000 in winnings and $20,000 in losses. You would lose $11,000. Would people trade that system? Yes, they would. They would probably trade it for a number of years until they went bankrupt. Why? Because they get to be right most of the time and that is very rewarding.

You might be saying, but how could people possibly tolerate losses of $11,000 after 100 trades? It is easy; they turn the losing trade into a long-term investment in their mind and say, "it’s only a paper loss." For example, I’ve had workshop attendees who were probably way above average in terms of sophistication. However, I asked them to raise their hands if they had an investment in their portfolio that was only worth 50% or less of what they paid for it. Eleven people raised their hands—over a fourth of the class. And my guess is that among the overall population of investors, most people are sitting on a number of big losers, hoping they will come back. Why? Because they cannot stand to be wrong on an investment and they are waiting to be right on those losing trades.

What is the cost of having losing investments in your portfolio? It’s major. First, you are using valuable capital up with nonproductive investments. Second, you are missing many good opportunities.

Why Being Right Seems So Important

There are two primary reasons why we focus on being right. First, we are conditioned to be right by the school system. Second, everyone in the trading industry gives people what they want—ways to be right—which tends to perpetuate the myth. Let’s take a closer look at these two reasons.

First, we are conditioned by the school system to the importance of being right. In school you are taught that there are right answers and wrong answers. What is a right answer? If you learned how to survive in the system, you learned that a "right" answer is whatever the teacher wanted.

Your performance is measured periodically through tests in which you are asked to pick the right answer. If you cannot get more than 70% right on the test, you are labeled a failure and ostracized. Your humiliation might even be in public in front on all your friends. And if your humiliation isn’t public, it certainly is semipublic. Your "poor" performance goes home in the form of a grade with a comment that "Johnny is a little slow or Johnny is bright, but he just doesn’t try." Usually, at this point, the most important people in your young life get involved—your parents.

Even if you understand the system and work hard to know the right answers, you still might be taught that your performance is not good enough. It usually takes 94% right to get an excellent grade. But how many children go home and show their 94% test to dad only to get the response, "Why didn’t you get 100%?"

Thus, it is no wonder that traders want to be right all the time. And being right usually costs them dearly in terms of profits. Whether you’ve been through 20 years of schooling and have a graduate degree or less than 10 years of schooling, you still have the same conditioning about being right.

The second reason people want to be right is that service providers for traders and investors feed the bias to be right. First, software vendors tend to provide systems that can be highly optimized. Once you’ve optimized your trading, you can lay a line over the prices and see exactly where you should have bought and sold. It seems obvious. However, the same optimized system does very poorly when applied to the real world.

Technical Trading Important Rules

2008-06-16T14:55:00.001+01:00

1. Map the Trends

Study long-term charts. Begin a chart analysis with monthly and weekly charts spanning several years. A larger scale "map of the market" provides more visibility and a better long-term perspective on a market. Once the long-term has been established, then consult daily and intra-day charts. A short-term market view alone can often be deceptive. Even if you only trade the very short term, you will do better if you're trading in the same direction as the intermediate and longer term trends.

2. Spot the Trend and Go With It

Determine the trend and follow it. Market trends come in many sizes -- long-term, intermediate-term and short-term. First, determine which one you're going to trade and use the appropriate chart. Make sure you trade in the direction of that trend. Buy dips if the trend is up. Sell rallies if the trend is down. If you're trading the intermediate trend, use daily and weekly charts. If you're day trading, use daily and intra-day charts. But in each case, let the longer range chart determine the trend, and then use the shorter term chart for timing.

3. Find the Low and High of It

Find support and resistance levels. The best place to buy a market is near support levels. That support is usually a previous reaction low. The best place to sell a market is near resistance levels. Resistance is usually a previous peak. After a resistance peak has been broken, it will usually provide support on subsequent pullbacks. In other words, the old "high" becomes the new "low." In the same way, when a support level has been broken, it will usually produce selling on subsequent rallies -- the old "low" can become the new "high."

4. Know How Far to Backtrack

Measure percentage retracements. Market corrections up or down usually retrace a significant portion of the previous trend. You can measure the corrections in an existing trend in simple percentages. A fifty percent retracement of a prior trend is most common. A minimum retracement is usually one-third of the prior trend. The maximum retracement is usually two-thirds. Fibonacci retracements of 38% and 62% are also worth watching. During a pullback in an uptrend, therefore, initial buy points are in the 33-38% retracement area.

5. Draw the Line

Draw trend lines. Trend lines are one of the simplest and most effective charting tools. All you need is a straight edge and two points on the chart. Up trend lines are drawn along two successive lows. Down trend lines are drawn along two successive peaks. Prices will often pull back to trend lines before resuming their trend. The breaking of trend lines usually signals a change in trend. A valid trend line should be touched at least three times. The longer a trend line has been in effect, and the more times it has been tested, the more important it becomes.

6. Follow that Average

Follow moving averages. Moving averages provide objective buy and sell signals. They tell you if existing trend is still in motion and help confirm a trend change. Moving averages do not tell you in advance, however, that a trend change is imminent. A combination chart of two moving averages is the most popular way of finding trading signals. Some popular futures combinations are 4- and 9-day moving averages, 9- and 18-day, 5- and 20-day. Signals are given when the shorter average line crosses the longer. Price crossings above and below a 40-day moving average also provide good trading signals. Since moving average chart lines are trend-following indicators, they work best in a trending market.

7. Learn the Turns

Track oscillators. Oscillators help identify overbought and oversold markets. While moving averages offer confirmation of a market trend change, oscillators often help warn us in advance that a market has rallied or fallen too far and will soon turn. Two of the most popular are the Relative Strength Index (RSI) and Stochastics. They both work on a scale of 0 to 100. With the RSI, readings over 70 are overbought while readings below 30 are oversold. The overbought and oversold values for Stochastics are 80 and 20. Most traders use 14-days or weeks for stochastics and either 9 or 14 days or weeks for RSI. Oscillator divergences often warn of market turns. These tools work best in a trading market range. Weekly signals can be used as filters on daily signals. Daily signals can be used as filters for intra-day charts.

8. Know the Warning Signs

Trade MACD. The Moving Average Convergence Divergence (MACD) indicator (developed by Gerald Appel) combines a moving average crossover system with the overbought/oversold elements of an oscillator. A buy signal occurs when the faster line crosses above the slower and both lines are below zero. A sell signal takes place when the faster line crosses below the slower from above the zero line. Weekly signals take precedence over daily signals. An MACD histogram plots the difference between the two lines and gives even earlier warnings of trend changes. It's called a "histogram" because vertical bars are used to show the difference between the two lines on the chart.

9. Trend or Not a Trend

Use ADX. The Average Directional Movement Index (ADX) line helps determine whether a market is in a trending or a trading phase. It measures the degree of trend or direction in the market. A rising ADX line suggests the presence of a strong trend. A falling ADX line suggests the presence of a trading market and the absence of a trend. A rising ADX line favors moving averages; a falling ADX favors oscillators. By plotting the direction of the ADX line, the trader is able to determine which trading style and which set of indicators are most suitable for the current market environment.

10. Know the Confirming Signs

Include volume and open interest. Volume and open interest are important confirming indicators in futures markets. Volume precedes price. It's important to ensure that heavier volume is taking place in the direction of the prevailing trend. In an uptrend, heavier volume should be seen on up days. Rising open interest confirms that new money is supporting the prevailing trend. Declining open interest is often a warning that the trend is near completion. A solid price uptrend should be accompanied by rising volume and rising open interest.

Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.

How Does an Oil Crisis Impact the Forex Market

2008-06-16T14:41:00.002+01:00

How Does an Oil Crisis Impact the US Dollar?

Oil prices are rising and the US dollar is falling, but is this the natural relationship between these two assets? Taking a look back at the two prominent oil shocks of the past four decades (1973 and 1979), we see that this is not necessarily the case.

1973 Oil Crisis: Initially Dollar Bullish, Eventually Dollar Bearish

In 1973, oil prices jumped 134% when the members of the OAPEC, which is OPEC plus Egypt and Syria, announced that they were no longer shipping oil to nations that supported Israel in its conflict with Syria and Egypt. This effectively shut down exports to the US, Western Europe and Japan. As a result, prices rose significantly to account for the sharp reduction in supply. At the same time, Saudi Arabia, Iran, Iraq, Abu Dhabi, Kuwait, and Qatar unilaterally raised prices by 17 percent and announced production cuts after negotiations with major oil companies.

In response to this oil shock, the trade weighted US dollar index* as measured against the major currencies first strengthened alongside oil and then sold off immediately. At that time, the Federal Reserve was combating inflationary pressures by raising interest rates. The jump in crude exacerbated the need for further rate hikes, forcing the central bank to bring the Fed Funds target rate from 7.5 percent in May 1973 to a high of 13 percent by the summer of 1974. The focus on inflation was initially dollar bullish but once the rate hikes started to have a serious impact on US growth, the trend turned dollar bearish. Between the third quarter of 1973 and the first quarter of 1975, GDP growth contracted five out of the seven quarters and in response to the deterioration in growth, the US dollar erased all of its gains.

*Data on the Dollar Index and Oil Prices are from the St Louis Federal Reserve

1979 Oil Crisis: Initially Dollar Bullish, Eventually Dollar Bearish

The US' second oil crisis in 1979 was triggered by the Iranian revolution and exacerbated by a gasoline shortage. OPEC raised prices by 14.5 percent on April 1st and the US Department of Energy announced phased oil price decontrols which involved the gradual increased of old oil price ceilings. Shortly thereafter, OEC raised prices a second time by 15 percent, the US halted imports from Iran, while Kuwait, Iran and Libya cut production. Saudi Arabia also eventually raised their market crude prices to $24 per barrel and because of all of these factors, crude oil prices increased 118 percent between January 1979 and December 1979.

The price action of the US dollar during that time was very similar to the price action of the greenback in 1973; it first rallied and then sold off. At that time, the Federal Reserve was also hiking interest rates to combat inflationary pressures and the oil price spike exacerbated their degree of rate hikes. Between January 1979 and December 1979, rates where taken from 10 percent to 14 percent and by March of 1980, the Fed Funds rate hit a high of 20 percent. Quarterly GDP growth dropped 7.8 percent in the second quarter of 1980, triggering the dollar's demise.

1990 Oil Price Spike: Persistent Dollar Weakness

Between June and October of 1990, oil prices also jumped 113 percent as a result of the first Gulf War. Interestingly enough, the US dollar behaved very differently for two reasons. The first was the short-lived nature of the oil spike; prices started falling 6 months after the initial rise and the second was the Fed's monetary policy cycle. Unlike the oil crisis of 1973 or 1979, the Federal Reserve started cutting interest rates before the spike and continued to reduce rates throughout 1990 and into 1991 and the dollar was already in a downtrend due to the loosening of monetary policy. The weakness continued as growth slowed with GDP remaining stagnant in third quarter of 1990, and then falling 3 and 2 percent respectively over the next two quarters.

2007 to 2008 Oil Rise

The characteristics surrounding the latest oil rise is more similar to the oil spike in 1990 than the shocks of 1973 and 1979. Therefore it is easy to understand why the US dollar has continued to weaken despite growing inflationary pressures. The Federal Reserve has been consistently cutting interest and these rate cuts have played a far more dominant role in the price action of the dollar than the rise in oil. The market basically doesn't believe that the Fed will start raising interest rates – and they have good reason to feel this way because based upon the last 3 oil shocks, growth in coming quarters should contract. Back in the 1990s, the Fed took a break from cutting rates like they are expected to do in June, but they quickly resurrected their rate cuts as the economy slowed. Of course, interest rates were much higher then than they are now, but if growth does not pick up, more rate cuts may be right around the corner.

Why Psychiatrists Make Better Traders Than Expert Economists?

2008-05-08T12:16:00.000+01:00

It should be noted that millionaire traders, Elder, Williams and some others are in fact professional psychiatrists. And it is not accidental that not the economists are the leaders and most successful traders, but professional psychiatrists and psychotherapists. Think about it. You will become a successful trader when you understand why it happens with Forex. You will understand what your Forex mistakes are, and why you are making them. And when you correct these mistakes you will become a trader who has no psychological barriers and obstacles on his way to better earnings in the Forex market.

So, why do the psychiatrists make better traders than economists who, as one would think, have the Forex market at their finger tips?

The economists are confused by:

- the fact that exchange rates are not always related directly to the economic circumstances in the countries. Well, do you know any economist who would be bidding for low fx rates when the economic situation is getting better and better? Or the one who admits that technical analysis of currency pairs is more important for Forex trading than the fundamental one? Any economist is confident that this can never happen because he knows all the economic dogmas. But it happens in the Forex. After all, how can a trader lose with the currencies moving up and down by the economic rules? The currency will surely react to the economic changes in the country, but who knows when and how? Here is a tip: there is the Elliott fifth way to teach a lesson to the ones who believe that fundamental knowledge is enough (before the trend turns, the currency spurts absurdly by the old trend), to confuse and draw the newbies into the game, while the experts wait for the trend to turn back.

- the lack of psychological knowledge that helps to understand the behavior of the crowd. And that is self-evident.

Are there any methods to overcome this fear?

It seems that every Forex book, every article offers efficient solutions for psychological difficulties experienced by the traders.

IN FACT NEITHER OF THESE BOOKS CONTAINS METHODS TO OVERCOME THE FEAR EXPERIENCED BY A FOREX TRADER!

But what do these books offer instead?

Almost every book of this kind consists of two unequal parts:

- the bigger part of the book narrates about traders’ problem that interfere with their Forex work and make it unsuccessful (nervousness, doubts, worries, fear, sleep deprivation, etc.). As if the traders do not know their own problems.

- the considerably lesser part contains conclusions and recommendations to the traders who are to solve their problems and overcome their fears to become successful.

The conclusions are disappointing:

Many psychiatrists realize that the new field opens before their eyes – now they may treat traders whose number amounts to millions all over the world and is growing with every day. And since most traders have a dream to become as successful as George Soros and other famous traders, this new field promises to be rather lucrative.

One thing is bad though: the overwhelming majority of these new-sprung trader brain specialists do not even know what the Forex is all about.

How To Spot Forex Scams A Mile Away

2008-05-08T12:13:00.002+01:00

In recent years, investors have witnessed increased number of investment opportunities and offerings. While the complexity and success of these investment products vary, technological innovation has made the Forex market one of the fastest growth areas. Many of the leading Forex brokers reported up to 500% rise in the number of new retail customers. However, the growth of the Forex market has been accompanied by a sharp rise in foreign currency trading scams.

Many of these Forex scams are promoted on the radio, television, newspapers and the Internet. Investors who fall victim to these schemes, often lose all of their money. As an illustration, let’s examine the facts of a recent case involving Forex fraud and its consequences. W learned of a foreign currency trading opportunity through an infomercial on the radio. K, the owner of a Forex asset management firm, spoke during the infomercial, promising viewers significant profits with minimum risk. After seeing the infomercial, W contacted K, and later attended a seminar presented by K and his firm. The seminar was so convincing that W wrote a check to K for $100,000.

Several months later, W received statements (which were false) from K’s firm reflecting significant returns on his initial $100,000 investment. Thereafter, W attended another seminar and decided to invest more money. W took a loan and invested another $800,000 in K’s Forex trading operation. Short while after W’s second investment, the Securities and Exchange Commission filed a complaint against K and his firm for engaging in a scheme to defraud investors. K’s firm’s assets were frozen, including the $900,000 invested by W. A receiver was appointed to distribute the remaining assets of K’s firm to defrauded investors. The assets were distributed on pro-rata basis with no legal preference given to any of the victims. Since K’s firm’s assets were not enough to satisfy all of the defrauded investor’s claims, W received only about $22,000 of the $900,000 he invested.

Since a whole book can be written on the various tactics and methods used by Forex scam artists, in this article, I will focus on the major warning signs that one needs to identify to avoid falling victim to Forex swindlers.

1. Promises of Little or No Risk

If you encounter a Forex firm that claims to have developed a foreign currency trading strategy that carries very little or no risk, stay away. The reason Forex trading can be very profitable is because it also carries a very high risk of loss. The Forex market is very volatile, and, without good money management, an investor can lose most if not all her capital within few days. Thus, individuals and firms who make claims that are far from market realities, as is riskless Forex trading, are really after your money.

2. Guarantees of Large Profits

Beware of firms that guarantee large profits in Forex trading. These so called “guarantees” are mere ploys to entice investors and make them believe that their money is safe and that they will definitely make large profits. Such claims are simply untrue, because even the best professional traders cannot guarantee that they will make a profit any given day. The Forex market, as most financial markets, is very unpredictable. Hence, be suspicious of such claims and those who make them.

3. Employment Ads For Forex Traders

Many Forex trading firms use employment ads to attract individuals with capital to trade using their systems. The employment ads, which often appear in newspapers and on the Internet, state that a foreign currency trading firm is looking for individuals to teach them how to trade the foreign currency market using firm capital. Those who reply to the ad are convinced by the firm that they will make a fortune trading currencies if they participate in the firm’s training program. During the training process, which often occurs on a demo system, the novice traders are encouraged and told that their demo trading records show that have made significant profits, that they are ready to make real money and would very successful. Despite the firm’s assessment of the novice trader as a brilliant newcomer, no firm capital is provided to the trader, instead the excited novice is told to use her own capital to trade using the firm’s platform. In addition to various fees imposed on traders using the firm’s platform, the Forex firm makes money as an introducing broker. Each time the novice trader trades through the firm’s system, a good part of the spread charged by the broker is shared and goes into the firm’s coffers. After few months, the novice trader loses all of her capital and leaves. The Forex firm, having made money during the novice trader’s short stint, moves on to new traders eager to become rich trading foreign currencies.

4. Is the Forex Firm a CFTC or NFA Member?

Before you sign a check and give your capital to a Forex company, make sure you investigate the entity. Check to see whether the Forex firm, with which you want to do business, is registered with the United States Commodity Futures Trading Commission or the National Futures Association. Many scam artists falsely claim that their firms are registered with the CFTC or the NFA to gain a perspective investor’s trust. Do not trust anyone, research the firm and the background of the individuals involved before parting with your hard earned money.

The Internet has paved the way for many new opportunities for retail investors. The Forex market is both exciting and fast paced. Investor’s who are careful and diligent are likely to avoid the perils of this market, and will profit from the growth and opportunities of foreign currency trading.

Overnight Interest/Rollover is automatically paid to a client's account

2008-05-08T12:01:00.001+01:00

In the spot forex market, all trades must be settled in two business days. A rollover refers to the process of closing open position for today's value date and the opening of the same position for the next day's value date at a price reflecting the difference in interest rates between the two currencies.

In accordance with international banking practices, Forex brokers automatically rolls over all open positions to the next date at 5 PM EST for settlement.

Rollover involves exchanging the position being held for a position expiring the following settlement date. For example, for trades executed on Monday, the value date is Wednesday.

However, if a position is opened on Monday and held overnight, the value date is now Thursday. The exception is a position opened and held overnight on Wednesday. The normal value date would be Saturday; because banks are closed on Saturday the value date is actually the following Monday. Due to the weekend, positions held overnight on Wednesday incur or earn an extra two days of interest.

Trades with a value date that falls on a holiday will also incur or earn additional interest. Forex Traders can earn interest on rollovers, depending on the direction of their positions and interest rate differential between the two currencies involved.

For instance, the primary interest rates in Great Britain are much higher than in Japan, so if a trader buys GBP, he/she will earn interest at 5 PM EST time. on the other hand, if he/she sells GBP in this currency pair, he/she will pay interest at 5 PM EST time.

Overnight Interest/Rollover is automatically paid to a client's account after buying a currency with greater Interest Rate in its country, and charged to a client's account if the country issuing this currency has smaller Primary Interest Rates.

Major Fundamental Factors That Can Affect Currency Prices

2008-05-01T10:40:00.001+01:00

Aside from technical analysis, another primary approach to analyzing currency market fluctuations is called fundamental analysis. Fundamental analysis is the examination of economic indicators, asset markets and political considerations when evaluating a nation's currency in terms of another. The key to fundamental analysis is to gather and interpret this information and act before the information is incorporated into the currency price. The lag time between an event and its resulting market response presents a trading opportunity for the fundamentalist.

Here some major fundamental factors that can affect currency prices:

1. Decisions on interest rates made by central banks such as the US Federal Reserve or the European Central bank (ECB) monthly.

2. Quarterly GDP figures. Only preliminary national GDP figures generally have the effect of changing market sentiment.

3. Market sentiment data. Market expectations are formed from one week to two days before the event. Participants become well positioned based on expectations. If the figures are not a surprise, profit taking is often the only result.

4. Political Events. National elections, the September 11th attacks, and the war in Iraq are examples of events that have affected currency values.

5. Major indices. Inflation indices, Institute of Supply Management (ISM) in the US and the Purchasing Management Index (PMI) in Europe are also carefully followed by traders.

6. National industrial production figures.

7. US nonfarm payrolls (indicating new jobs created), Michigan sentiment figures in the US, the western German business climate or IFO index, and the Tankan quarterly survey in Japan.

There are times that governments through their Central Banks stand in the way of market forces impacting their currencies, and hence, intervene to keep currencies from deviating markedly from undesired levels. Currency interventions have a notable and oftentimes temporary impact on FX markets. A central bank could undertake unilateral purchases/sales of its currency against another currency; or engage in concerted intervention in which it collaborates with other central banks for a much more pronounced effect. Alternatively, some countries can manage to move their currencies, merely by hinting, or threatening to intervene.

How Ordinary People Became Millionaire Traders After 2 Weeks

2008-04-22T16:29:00.000+01:00

In the late eighties I was reading the excellent book "Market Wizards" by Jack Shwager and was fascinated by a story of how ordinary people were taught to trade in just 14 days and went on to make hundreds of millions of dollars. How was it possible? Let's take a look at the legendary story of the turtles.

Trading legend Richard Dennis was having a debate with his business partner and was trying to convince him anyone could be taught to trade, providing they had the right mindset and education. His partner disagreed and felt trading was a god given gift - Dennis set out to prove him wrong.

He gathered a diverse group of people together, from all walks of life who only had one thing in common - they had never traded before. They were a very diverse group and ranged from a security guard, to a female auditor to a boy just finishing high school.

He then taught them to trade. After 14 days, they were all given trading accounts and real money and the rest is history. This group went on to make hundreds of millions of dollars and become trading legends.

So what can you learn from the story?

The first point is - trading success is open to anyone and all the basics of trading success can be learned. Sure, you may not become as rich as this group but there is a big difference between something being impossible and something that can be achieved.

I personally found the story an inspiration and it was one of the major reasons I opened a trading account.

The other point from the turtle story is that simple trading systems work.

The system taught was very simple (a basic long term following breakout method) and of course all the students learned it in just 14 days. So complex systems, you can forget - keep it simple!

The reason Simple systems work is, they are more robust in the brutal real world of trading than complex ones, whose numerous elements snap under the pressure of volatility.

Dennis of course knew that having a simple trading system was all well and good - but you have to follow it with discipline and employ strict money management criteria to win and this point was rammed home to his pupils.

The problem for most traders is learning methods is easy, applying them is hard, very, hard and if you think its easy you are not a trader.

The Problem is you need to keep applying a system with discipline, even when its taking loss after loss and the market is making you look stupid. This is tough furthermore, and just as important, you have to hold your winners as open equity continually eats your open profit - again this is hard.

If you have confidence in your system and know why it works long term you can acquire discipline like the turtles were, just be prepared for some mental turmoil.

The story should be required reading for any budding trader and in addition to the information in Market Wizards, check out the book - Way Of The Turtle by Curtis Faith, the most successful turtle of all. He gives you all the info on the experiment, the system and his experience, so you have a great view from the inside.

Like I said earlier, you probably wont make as much money as the turtles - but maybe, just maybe, with the right forex education and a burning desire to succeed you could do very well and remember:

Everything about trading can be learned.

Do you have the desire to succeed and a willingness to get the right forex education?

Then try forex trading and see, currency trading success could be within your grasp

Good luck!

Trading Forex on Autopilot is Great Idea in Theory

2008-04-22T16:27:00.001+01:00

There are numerous systems that will tell you that you can follow the signals they generate and make similar gains to the track records they show. There is a problem with most of them and that's curve fitting which, means most forex robots lose - lets take a look at it.

Curve fitting is when a vendor simply runs system rules across back data and bends the rules to make a profit.

It's of course easy to make a profit in hindsight, as you know what happened and we can all make money if we know the prices in advance however, it's much harder going forward not knowing them!

Most systems worth their salt, will have been traded and have a real time track record presented with them. This doesn't mean the system will win in future, as past performance never guarantees future results - but it at least it gives you confidence the system is on soundly based logic.

If you see any forex robot that has track record that looks good, look for the disclaimer below and if you see it pass it by - it's unlikely to make you money and about 99% you see will have it - here it is:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Many traders simply don't bother reading the above, or ignore it totally.

Keep in mind if you are putting your equity in the hands of a forex robot or automated trading system, surely it's a good idea to at least make sure someone has traded it?

The problem is most vendors who sell these robots curve fit them and as no two portions of data ever replicate themselves exactly, there doomed to lose in the real brutal world of trading.

Forget hyped copy and simulated track records and look for one with a real time track record.

Once you have found one, make sure you know how it works and that you have confidence in its ability to make money. If you don't know how it works and have confidence, you won't have the discipline to follow your chosen forex trading system with discipline and without the discipline to follow your system, you don't have one!

There are some good systems out there will real time track records (or at least independently tracked ones) which can and do make money. You're probably looking in the price range of $1 - $10,000 for a decent one and they will pay for themselves many times over if you do your homework on them.

Trading forex on autopilot is great idea in theory - but beware of the curve fitted, simulated track record ones that are cheap with track records that look to good to be true - they are. Be realistic, be sensible and take your time choosing the right forex robot for you.

The Mrs. Robinson Trading System

2008-04-22T16:26:00.001+01:00

Some traders are content with a trading method that only takes one type of strategy, but this doesn't make sense if you want to make the most of the Forex market - or any market, for that matter. If the market isn't always going in one direction, why have a system that only trades one direction?

The Forex Triad trading system was developed by Jason Fielder through what he termed as observations, combined knowledge from investing, and common sense. This system was formed with a common sense question: how can you make money off a system that isn't applicable (or is wrong for the market) literally 2/3 of the time?

Basically, the market is always doing one of three things, and only one of three things. The market is either:
1. Trending
2. Counter-trending
3. Breaking out

That's it. Those are the only three patterns that the Forex market can be in, and the market will always be in one of these three states. So how can a breakout method be profitable when the market wasn't usually breaking out? Same for trend and counter-trend. Jason Fielder wasn't the only one who thought this, as several Forex trading systems try to be "adaptable," having various technical trading strategies set up so that when the market goes a certain way you know what to do.

There are several different Forex trading systems that now have multiple strategies for trading, all based on how the market is moving. The Triad Trading Formula was the system developed by Jason Fielder to adapt to the market.

A portfolio is something every trader and investor knows about. Spread the eggs around so the collapse of one market (see Enron) doesn't wipe you out. So if that is commonly held as wise practice, why was everyone trying to find a single way to trade the Forex? Part of the reason for this might be that it's easier to teach a trading strategy that only has to deal with one part of the market. Unfortunately, that's not practical in a real life situation.

The Triad Formula of trading is a portfolio of strategies that gives a trader the tools to always be making money in the market, whether the market is trending, counter-trending, or entering a breakout.

This way, no matter what the market is doing, there's a strategy that can be used to profit. In theory, this will allow you the steady and impressive profits that you've been yearning for all along, with as much security as can be found in the Forex market.

Forex Fundamentals: Good News for the Dollar

2008-04-22T16:24:00.000+01:00

Over the past six months it seems like almost every major finance magazine has published an article related to the weakness of the dollar. If you are a currency trader like I am then this topic is particularly relevant to you because you need to know what the long-term trends of each currency are so that you can make profitable trades.

What you probably have not been reading about in the news are some of the events that have been happening behind the scenes or that will be happening in the near future, and why the American economy will ultimately regain its strength.

The single most significant factor affecting the American dollar is the trade balance, and the biggest portion of this problem is related to our war in the Middle East that should never have been authorized, yet is still costing us billions of dollars every single day. I will not spend a lot of time talking about the horrendous actions of the Bush administration (namely that they defrauded their way into office in order to wage a cultural genocide for the sake of gaining control over oil), but there are truly good things that have been happening behind the scenes and that will be happening in the near future.

You will not hear about many of these things in the mass media news outlets in America such as CNN and ABC, and there is an exceedingly simple reason why these manipulated news networks try to convince the American people that there is a threat of danger when really none exists at all: War is profitable. There are powerful groups in our world today whose agendas are motivated by greed and control, and these people engage in heartless wartime profiteering so that they may satisfy their lust for power. But it is not all bad: I will discuss some of the wondrous events that are causing these groups to rapidly lose their power, and what all of this information means for the currency markets.

The Bush Administration has dropped to single-digit approval ratings, and millions of Americans have gone to websites such as Impeach Bush and spoken out about their opinions of why this man is no longer our leader. Dennis Kucinich, a representative from my home state of Ohio that I have had the pleasure of meeting, is leading the way for the eventual impeachment and forcible removal from office of Bush and his war-mongering cronies.

The Bush Administration has inadvertently caused a global recession with their desire to wage a heartless war, and the signs are strong that the global community has finally come together and told these warmongers "Enough!" They are rapidly losing power as people are becoming more conscious and aware of the fact that they have been lied to by the controlled mass media outlets.

If you are looking for really good forex trading opportunities, I would be willing to bet that when the news releases come out stating things such as Bush's impeachment or other things that peace-loving people the world over are working to create, there will be a large jump in the value of the dollar in the window of a day or two.

The really good news for the dollar and for the American people is coming from Japan. The Japanese are the largest holders of foreign dollar reserves (around $5 trillion dollars), and they have openly declared that they will no longer fund the American war effort.

The reason why I remain optimistic about the future of the American economy is because of the two main presidential candidates that have come forward to lead our country. In my mind (and in accordance with recent political data), the two main candidates in the 2008 presidential election will be Barack Obama and Ron Paul. Both of these men are benevolent leaders and are sufficiently equipped to rectify the errors of the Bush Administration, and Ron Paul has openly stated that he will abolish the Federal Reserve and the IRS to create a more prosperous America.

In the last paragraph, notice that I said the "American economy" and not the dollar. This is an important point, because many benevolent and powerful leaders are discussing new potential monetary systems for the United States that can lead to greater prosperity. The Federal Reserve system is based upon perpetual debt, and it is not sustainable because it steals wealth from the American people and puts it into the pockets of a few. This is all very good news, and so you may be wondering how this plays into your forex trading.

The dollar will continue to go down so long as our war is not stopped, and so for the next few months until the Bush Administration is forcibly removed from office or until they simply fade away to be replaced by a new leader, there will still be a downwards trend for the USD.

After our war ends due to internal political pressure from our benevolent leaders as well as financial pressure from the Japanese, many Japanese leaders are discussing the possibility of using their foreign dollar reserves to create a global humanitarian mission where they can bring knowledge and modern telecommunications access to countries that have not been able to provide it for themselves.

As this happens the American economy will regain strength because our trade balance will become much more sustainable. So ultimately for your forex trading, the downwards trend for the dollar will continue until these big benevolent changes occur, afterwards the American economy (as well as the global economy as a whole) will regain its stability.

Bollinger Bands - Guide For Traders When to Trade and When to Fade Forex

2008-04-22T16:20:00.002+01:00

Bollinger Bands are techniques that are created in the 1980s by John Bollinger. They are plotted lines that represent an upper and lower trading range for a particular market price. It is a guide for traders to see how the future market would go. Each of the line is the predictable range of the moving average. So, the currency pair is expected to trade within these limitations.

Bollinger Bands are used to determine when to buy or sell the market share. For example, buy a market share between the upper line and the lower line, which is unexpected, may not be a good deal. Normally the price will trade within the expectations (below the upper line and above the lower line). The directional trend is still useful to the traders even though a price is out of those limitations as those lines will widen accordingly.

Key features of Bollinger Bands:

1. A move starts when a line tends to reach the other line.
2. When the price is unstable, a sharp move will easily happen when the lines meet at an average level. Remember, the longer the unstable price takes, the higher the possibility a breakout may happens.
3. The current trend is usually maintained although there is a breakout as those lines will widen accordingly.
4. The top or a bottom (no matter inside or outside the lines) indicates the trend of market changing.

Configuration and Confirmations

To have a better result, withdraw two standard deviations from 20 periods simple moving average. However, there can be a variety of periods and standard deviations. A correct selection will provides a better and correct estimation.
See the chart of the EUR/USD pairing at Learn Forex Charts. Most of the prices are remain within the lines. However, there are some breakouts, especially in a narrower range. Even though breakouts do happen, some breakout tends to restore within the lines range in a short while. If those breakouts represent a real market shift, the Bollinger bands will automatically widen accordingly.

Most of the time, Bollinger Bands are used with the Average Directional Index (ADX), RSI and Stochastic indicator.

What Is The Best Forex Trading Indicator for Swing Trading

2008-04-22T16:11:00.002+01:00

Here we will look at the best forex trading indicator for swing trading this is for trading into overbought / oversold areas within the major trend. Here we will look at how to do this, with the stochastic indicator and show you a simple powerful method for big profits.

Swing trading is easy to do, logical and easy to understand and can be very effective. The stochastic indicator combined with valid support and resistance gives you a robust simple strategy you can learn quickly than can be highly effective in making big forex profits so here it is.

An Introduction

George Lane developed the stochastic indicator which was based on the premise that in an up-trend, prices tend to close near their highs and of course in a down-trend the reverse occurs, prices tend to close near their lows.

This simple logic is the basis of the stochastic indicator but despite its simplicity it's a powerful tool.

The stochastic should our view be used in association with areas of support and resistance and be used to enter positions when price momentum wanes in an uptrend below resistance and strengthens in a down trend above resistance.

The Mathematics

If you are technically minded, the stochastic calculation is outlined below. If you are not don't worry, as most major chart services plot the stochastic and you can simply see the set ups visually - here it is:

The stochastic is plotted as two lines %K, a fast line and %D, a slow line.

The %K line is more sensitive than %D

The %D line is a moving average of %K.

The %D line then triggers the trading signals.

The lines are plotted on a scale of 1 to 100.

"Trigger" lines can be drawn on stochastic charts at the 80% (overbought) and 20% (oversold) levels. A signal is then generated when the stochastic lines cross.

The Stochastic can help you enter trading signals in a number of ways and here we have outlined the 3 major ways you can use it in a swing trading strategy.

As an Overbought Oversold

When the 20% and 80% trigger lines are crossed look to do the following in terms of initiating your trading signal. Take a long position and buy when the stochastic moves below 20% and then rises above this level. On the other hand take a short position and sell, when the stochastic rises above 80% and then comes back below this level.

Stochastic Crossovers Against the Trend

This is a highly reliable signal

You can buy when the %K line rises above the %D line and sell when the %K line falls below the %D line.
The most reliable or high odds crossovers occur when the %K line intersects after the peak of the %D line.

Stochastic Divergences

Divergences between the stochastic and the underlying price trend warn that a potential price change is on the way and are a great leading indicator for your trading signals.

For example, if prices are making a series of new highs and trending upwards and the stochastic moves lower or crosses to the downside then price momentum and velocity is weakening and the reverse occurs of course in a bear market.

Why It Works

The reason it works and we consider it the best forex technical indicator for swing trading is based upon human psychology.

A long term price trend does not just go in a straight line - there are peaks and troughs along the way. Forex traders will push prices to far too quickly and prices then return back to fair value. It is these moves within long term trends, that swing traders want to catch - so by combining the stochastic with simple support and resistance is very effective.

If you are new to forex trading then swing trading with the stochastic gives you a simple method which works and the stochastic is the best forex technical indicator to use and while there are others, using the stochastic wisely, with support and resistance lines, can make big consistent profits.

Forex Trading Tip - Learn 80 - 20 Rule

2008-04-22T16:05:00.001+01:00

The 80 / 20 rule will help you make money in forex trading and if you are new to forex trading or trading already and not making enough money this forex trading tip is for you.

The 80 / 20 rule is simple.

It simply states that:

80% of your success comes from 20% of your efforts.

Let's take a simple example of a sales organization.

It's well known that 80% of the income normally comes from 20% of the clients.

In trading terms therefore: 80% of your profits come from 20% of your trades and the rest (80%) give you just 20% of your profits.

If you think about the 80 / 20 rule, you can apply it to many areas of life and try applying it to your forex trading and you will see it makes sense.

So what should you do?

Cut your trading frequency!

It's a well known fact that most forex traders try to hard, they think they need to trade a lot or always be in the market to win.

What happens?

They take low odds trades and lose. Keep these two points in mind:

- Unlike most activities you don't get paid for effort in forex trading you get paid for being right with your trading signal and that's it.

- The amount of trades is NOT In any way related to your profit potential.

To give you an example - I know traders who trade less than once a month yet make 100% + annualized gains!

The fact is most short term volatility in forex trading is random. This means you can't get the odds on your side and you won't win. Ever wonder why you never see a winning day trader or forex scalper?

Well, the reason is they trade to much and trade low odds or trades and this means an erosion and eventual wipeout of equity.

If you trade longer term, your chances of success with your forex trading system will be more because you are focusing on high odds trades.

If you really want to win, use the 80 / 20 rule and get the odds in your favor.

Try trading long term high odds trades and trade valid breakouts to new highs and lows (most major moves start from them), be selective and follow the market action and lock into these big breaks and follow the big trends that develop.

The 80 / 20 rule is logical in life and in the forex market and if you understand it, you can make big gains.

Many people like trading frequently - but their just playing a game and not interested in making money, it's a thrill seeking exercise - personally I would rather go Scuba Diving!

If you believe forex trading is all about making money and NOTHING else, then you will see how you can use the 80 / 20 rule to your advantage.

Think about the above and using it in your forex trading strategy and you maybe glad you did!

Forex Trends - Volatility within the Main Trend and How to Follow Them for Bigger Profits

2008-04-22T16:02:00.001+01:00

When you look back at a forex chart forex trends that last for weeks or months are easy to see but there much harder to hold in real time trading. There are huge profits to be made if you can milk the longer term trends but you must be aware of two main problems you will encounter.

Volatility within the Main Trend

When your are forex trend following you get constant pullbacks in price and you have to decide whether they are a trend change or a pullback and this is not so easy when money is on the line.

The dilemma you face is:
Where should you put your stop so that you can stay with the trend but get at least a good chunk of profit should the trend turn.

For this you should have an understanding of standard deviation of price - if you don't know what it is - make it an essential part of your forex education.

Our view is to use trend line support and moving averages pullbacks to the 18 - 25 day moving average are normal and pullbacks to the 40 day moving average indicate a trend that might turn.

Once the trend is in motion, use the 40 day and trend line support as your stop.

Of course when the trend turns you give back a bit of profit but that's ok - if you caught 50% of every major trend, you would be very rich.

Don't ever try and predict when a trend might end or impose your view on the market let the market action tell you when you are wrong.

You Have to Accept Short Term Dips to Make Long Term Gains!

Many traders get excited when they get a profit and the bigger it becomes, the more excited they get - Every dip in open equity causes them emotional turmoil and they simply want to get the profit in the bank, before it gets away.

They end up snatching their profit and banking a marginal one - what happens next?

The trend continues and makes $5 10 or 15,000 and their not in yet, that's where they thought the price was going anyway!

They just didn't have the discipline to stay with them.

The fact is you must be disciplined and be prepared to take open equity dips - sometimes of thousands at a time, once a big trend is in motion.

This requires confidence and discipline in your forex trading strategy, an understanding of volatility and a mindset to put up with it, to seek a longer term gain.

Take a look at a forex charts and you won't just see trends at present that yield a few hundred pips in motion, you will see ones that could give you thousands or tens of thousands and you can get these trends with the right attitude.

If you have the discipline and the mindset to succeed you can make a lot of money from long term trends - you don't have to be perfect and you and you don't have to be clever, just have the patience to stay with the trend, until the chart tells you that your wrong.

Forex Trading Robots - Vital Tips You Need to Know For Long Term Profits

2008-04-22T15:58:00.001+01:00

Forex trading robots are popular, the theory is you can simply plug and go then sit back make money and let the trading system do the work for you. It's a great idea and you can make money but you need to consider the vital points below to win.

Most forex trading robots have one vital flaw - they have never been tested real time and never actually made any profits! Forget the clever enticing advertising copy these systems will wipe your equity quickly. Look for the disclaimer below (or similar one) and you will see what I mean.

Look for This disclaimer and ignore the System!

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading....Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Of course after reading this you will see why they don't work and the odds are stacked against you. Would you trust a driving instructor who couldn't drive? Well thousands of forex traders trust vendors who have never traded. These forex trading systems have all been tested knowing the past price history and the track record is simply a simulation on paper and I wouldn't trust it and neither should you.

Find one With a Real Time Track Record and ...

Make sure you understand how and why it works and you are confident in its ability to deliver forex trading profits longer term. If you don't, you won't have the discipline to follow it through periods of losses and stick with it through these periods of drawdown to make longer term gains. Keep in mind that if you don't have the discipline to follow your currency trading system - you may as well not have one!

If you want one with a great record of success long term check out Richard Donchians 4 Week Rule, we have written on this frequently and its Keep in mind the above system is free and you can use it as you wish and it has been the basis for many a successful trading system.

A Forex trading system with a real time track record doesn't come cheap and you're looking to pay in the region of at least $1 - 2,000 upwards in price, so the 4 Week Rule which will out perform most sold robots anyway and is a great place to start and of course it's free.

Tip 3 - Robots are programmed by Humans!

There is this image that a robot works on its own but it can only work within the limitations of the programmer.

Humans think robots can think for themselves like some robot from Star Trek (but this is rubbish the markets have to many variables) and a forex trading system can only react not think independently. While they are programmed by humans, this doesn't mean they can't be successful they can - but there not perfect.

ALL Forex trading robots will lose for periods of time that's life but this doesn't mean to say they can't make profits over the long term, they can but you must be patient and disciplined.

The right forex trading robot can and will make you money. Just keep in mind there not perfect and you will need to have confidence in the logic of them, to follow them to long term currency trading success.

Get the right one and follow it with discipline though and you could make a lot of money.

FOREX Real-Time Providers: Learn What Is Best For You

2008-03-30T13:29:00.002+01:00

Many articles have been written on the subject of FOREX trading. The vast majority of them have detailed analysis advice as well as investing tips. What just few of them found interesting enough is the subject of selecting the right real-time data provider. Simply stated, this is the software platform used to deliver quotes and charts, together with various technical indicators for each currency pair.

While real time FOREX quotes are available free of charge from many sources, as Bloomberg and Reuters, and various FOREX brokerage houses, the real need is for a comprehensive charting package.

As FOREX trading is essentially an intensive short-term speculation, the Technical Analysis approach is what a professional operator needs. This must be delivered through a stable and reliable real-time charting platform.

Even if the advertisements may be appealing for most of them, some key characteristics must be checked, in order to make sure you get the best price/content ratio. Ranging from free to several hundred dollars a month, they offer various levels of proficiency, regarding the number of currencies pairs, frequency of their updates, number of contributors and technical analysis capabilities.

There is a huge difference between a provider that offers updates from just one stream every minute and another one feeding your platform 10 times a second from 50 interbank players.

With the first one, you will obtain a valid quote but you will not feel markets rhythms, which are of utmost importance in gauging various games people play when speculating. This is particularly important immediately following news announcements, as key players implement their trading strategies.

While simple platforms will exhibit a jump in the price from one minute to the next, the professional ones will clearly show the tension and fight for each PIP in the arena.

Usually, brokerage houses offer some basic packages free of charge and use their own data feed to update the programs, but you will have just limited understanding on what is really going on.

Thanks to more than 10 years in the market, I believe you will be better off with a subscription to an independent real-time

data provider. Even if the cost is higher, the performance is far superior.

As this is their primary business, they tend to allocate important resources to you as a customer and of course, they update and improve their platform on a regular basis.

Because I will avoid advertising any company names on this article, I will just invite you to consider asking the following questions before deciding.

Web-based or desktop-based platform. While the first one is more mobile, the second one tends to have more features.

Number of regularly updated currencies pairs. The key is to have at least the majors regularly updated (EUR/USD, GBP/USD, USD/JPY, USD/CHF), but of course, the more pairs the better.

Number of real-time data contributors. The bigger the better, as this will offer larger exposure to the trading community.

Number of updates per minute. The bigger the better (strongly influenced by your internet connection), as this will help you feel the market.

Number of technical indicators and analysis instruments (trend lines, time intervals, Fibonacci Levels, printing, colours, etc). The bigger the better, as your analysis potential is increased.

Technical support available at least during market hours. It is of paramount importance to make sure you have a comprehensive technical support, in case something goes wrong during your trading activity. Also, ask if the service is free of charge or fee based.

While there can be more to look for, if you follow the above rules, chances are you will end up with a better, more reliable and finally highly competitive real-time FOREX data provider.

Succeeding With FOREX

2008-03-30T13:24:00.002+01:00

Forex trading has changed dramatically in the last 10 years thanks to the technological advancements of the internet era. With real-time streaming technology and faster and more efficient computer systems, almost anything, from roses to FX trading, is available at the click of a button. It would be interesting to go over a few of the benefits of online FOREX trading.

If you are new to the world of technology, internet or online FOREX trading, it would be recommendable that you considered taking an online FOREX trading class. Many traders recommend to take the course by Peter Bain if you are a beginner and want to start with solid steps towards a profitable trading career, this is a very complete and understandable course. But, of course, there are a wide variety of options out there if you are looking for a quick and easy way to improve your trading skills.

Before you spend any money on an online FOREX trading program or subscription, ask about free trial offers or free reports. Many companies will allow potential customers to try out their software and tools before making an investment, and you won't even need your own money to start paper trading if you want to have some practice before real money is on the line. This is a quick and easy way to begin trading immediately. There will no doubt be a learning curve, all traders have passed through this that's why you want to make sure that you don't have a large investment waiting to be recovered while you are on that learning curve. If you have a friend or family member that is in the online Forex trading business, find out what program or system they use. They may be willing to walk you through a trade and give you their opinion on the program.

Always remember that practice makes the master. One of the best ways to get a feel for the market is to paper trade. No one wants to experiment with their own money; so many brokers have come up with an innovative way to take all the risk from trying out forex trading. It's called simulation trading or paper trading as mentioned above, and the premise is simple. The program is an exact copy of the broker or trading systems real-time trading program. The main difference is that they allow you to "play" the market just as you would if you were actually investing. You can do a simulation with a set amount of money, usually around $50,000 dollars. You can practice setting bid and ask prices, and using their various analysis tools, which are all free.

The benefits of such a system are two-fold. First, you get a feel for the trading software itself, so that you can determine if it is right for your needs and skill level. Second, you get to practice trading in the market, under real conditions. You can practice using the various tools and research available to you to make good trading decisions.

The amount of time needed to understand the system will vary depending on your level of experience and knowledge materials available. But the paper trading experience in Forex is always recommended, you will never regret you invested some time into this.

Ping - Send Your Fresh Content Instant To Search Engines and Web Indexing Sites

2008-03-09T14:05:00.005Z

Ping those search engines. A “ping” a handshake between one computer or web site to another. Search engines and other blog indexing internet sites love fresh information and are constantly sending out little internet programs sometimes called “crawlers” or “robots” (shortened to bots) that search through your site to index keywords it finds there. But you might have to wait for some time before they find your blog. You can provoke a “ping” from all the major search engines and web indexing sites using ping sites that exist exclusively for this purpose (more will be discussed later). Some of those include.

o http://pingomatic.com
o http://www.pingoat.com
o http://www.blogexplosion.com
o http://www.rss-feeds-directory.com/blog_lists.html

Why Marketiva New Account Has Been Disabled or Suspended

2008-03-02T19:00:00.007Z

Open your new account and please contact live support after that..

Signup here..

Why Marketiva New Account Has Been Disabled or Suspended?

After registered your new account, please do not use the Streamster software before your documents get verified; otherwise your account will be disabled.

You need to contact Marketiva staff on the Live Support channel accessible through their web site, so they can verify your uploaded documents.

To verify you account, you need to scan your identity card and utility bill to get verified.

The Secret of Timing

2008-03-02T17:50:00.003Z

Once you've identified a trading opportunity, the next step is to decide EXACTLY when to buy - and this is where many traders go wrong.

Here we explain how to incorporate better market timing into your FOREX strategy - so that you can make bigger profits.

Most traders time their entry levels incorrectly, so here's the right way to do it:

Using Support and Resistance Correctly

A basic wisdom of market timing is buy low, sell high - well, the reality is, if you try this in FOREX trading, you'll end up losing money. First, lets define what support and resistance means

A support level is a historical price that traders come in, and buy to support the market and the more times its tested, the more valid the support will be.

Conversely, a resistance level is a level on the charts that resisted prices from moving higher- again the more times it's tested, the more significant it becomes.

Why Buy Low and Sell High doesn't Work

Buy low, sell high is accepted wisdom by the majority of traders - but this logic is fundamentally flawed - use it in FOREX trading, and you're asking for trouble. Why? - If you wait for a pullback, you're going to miss some of the biggest moves.

Think about it - what if a currency starts to trend and doesn't pullback? (How often have you seen this?) If you're waiting for a pullback that never comes, you'll never get in on the trade and you'll miss a major opportunity.

You Need to Feel Uncomfortable

When Trading in the FOREX market, you should usually feel uncomfortable (and that's why most traders don't make these trades) - as no one likes to buy or sell after the market has started trending - but doing this will make you money.

The fact is, the more comfortable you feel when entering a trade at support, the less likely the trade will be a big winner.

During any given year, most of the big moves in currencies, take place from new MARKET HIGHS with NO pullback.

If you base your FOREX Trading strategy around waiting for a warm comfy entry, at key support, you're going to miss the biggest and most profitable trades so step away from the losing majority of traders.

Your FOREX trading strategy should give you a different mindset - most traders buy low and sell high - so you should buy high and sell higher i.e. you should be doing the opposite of what the crowd are doing.

Don't worry - most traders lose money, and their FOREX Trading strategy is based on the flawed logic we have just discussed - so not doing what they do makes total sense. Therefore, look for breakouts through support and resistance - and sell and buy respectively.

Its Tough Mentally - But it Makes Money!

Sure, it's hard to do - the majority don't agree with you - and no one likes to go against the majority. However, it's the right thing to do, to make your FOREX trading successful. Think about what we've just said, and you'll see it makes logical sense.

Has this Happened to You?

How many times do traders buy into support, and the market breaks support, stops them out and continues to decline. On the other hand, another common scenario is, price never get to support - it simply goes higher - and the trader misses the chance to get in on the trend.

This type of trading is tough mentally - that's why 90% of traders dont do it - they want to be comfortable - well being comfortable is great, but you'll lose money.

Breakouts work, and if you use them in your FOREX Trading strategy, you wont be comfortable on entry - but you'll make money - and that will more than compensate.

The way to succeed in FOREX trading is to do what the losing majority don't do - then you can join the elite 10% of traders who make the big profits - try it and see!

How To Find A Good Forex Broker

2008-03-02T17:41:00.003Z

It's not always easy to know what to look for in a forex broker, especially in any market, much less a market as complex as currency. But, if you want to trade in the market you need a good firm to work with. While it might be tempting to simply ask the brokers what they can do for you, you can't always depend on them to give you a straight answer. So instead, I've put together a few things to consider when choosing your forex broker. You will want a forex broker that has low spreads. The spread, which is calculated in pips, is the difference between the price at which a currency can be bought and the price at which it can be sold at any specific point in time. Since forex brokers don't charge a commission, this difference is how they make money. Low spreads will save you money.

Along with this, you should be looking for a forex broker attached to a reputable institution. Unlike equity brokers, they are usually attached to large banks or lending institutions. The firm should also be registered with the Futures Commission Merchant (FCM) as well as regulated by the Commodity Futures Trading Commission (CFTC).

Once you've narrowed your choices down to brokers that won't cost you too much, and that are reputable, consider the trading tools that they are offering you. Forex brokers have many different trading platforms for their clients, just like brokers in other markets. These often show real time charts, technical analysis tools, real time news and data, and may even offer support for the various trading systems.

Before you commit to any one company, request free trials of their tools. Brokers generally provide technical as well as fundamental commentaries, economic calendars, and other research to help you make good trades. Shop around until you find a forex broker who will give you everything that you need to succeed.

The next item that you will need to evaluate carefully is the number of leverage options your potential partner has. Leverage is a necessity in forex trading because the price deviations in the currencies are set at fractions of a cent. Leverage is expressed as a ratio between the total capital that is available to be traded and your actual capital. For example, when you have a ratio of 100:1, your forex broker will lend you $100 for every $1 of actual capital you have. Many brokerage firms will offer you as much as 250:1. If you have low levels of capital you will need a brokerage with high levels of leverage to make reasonable profits.

If capital is not a problem, any forex broker that has a wide variety of leverage options would be a good choice for you. A variety of options will let you vary the amount of risk you choose to take. For example, less leverage (and therefore less risk) may be preferable if you are dealing with highly volatile (exotic) currency pairs.

Along with different levels of leverage, look for brokers that offer different types of accounts. Many brokers will offer you two or more types. The smallest account is known as a mini account and it requires you to trade with a minimum of around $300. The mini account also generally offers a high amount of leverage.

The standard account allows you to trade at a variety of different leverages, but it requires minimum initial capital of $2,000. And finally, there are premium accounts, which often require significant amounts of capital. They also generally have different levels of leverage available to the traders who use them, and often offer additional tools and services. You will need to make sure that the partner you choose has the right leverage, tools, and services for the amount of capital that you are able to work with.

A brokerage firm that meets all of these needs should be a good forex broker for you, but you still need to be certain that they are honest. Dishonest brokers can be prone to prematurely buying or selling near preset points (commonly referred to as sniping and hunting) or may indulge in other habits that will cost you money.

Obviously, no brokerage firm admits to doing things like these, but there are ways to know if they have. The best ways to find out more about your potential forex broker is to talk to fellow traders. There is no list or organization that reports dishonest activity, but a visit to online discussion forums, or a simple conversation will often reveal who is an honest forex broker.

You should also watch to see if a brokerage firm has strict margin rules. Since you are trading with borrowed money, your forex broker has a say in how much risk you are able to take. You agree to this when you sign a margin agreement for your account. This means your firm can buy or sell at his discretion, to cover the brokerage firm's interests, which could have repercussions for you.

Say you have a margin account, and your position takes a headlong nosedive before it begins to rebound to all time highs. Even if you have enough cash to cover it, some brokers will liquidate your position on a margin call at that low point. This action on their part can cost you dearly. You can only find out whether the firm is prone to this kind of activity by talking to other traders. Being informed on all aspects of a forex broker before you make the decision to trade with them will allow you to start trading the forex market with confidence.

What Is Fibonacci

2008-03-02T17:16:00.003Z

Fibonacci forex trading is the basis of many successful forex trading systems that are used by a great number of professional forex traders around the world. Trading systems based on this numbers sequence are so successful that billions of dollars are earned every year by traders following its rules.

Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that its formed by a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13 ...But in the case of currency trading what is more important for the forex trader is the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc.

Forex traders can greatly benefit from this mathematical proportions due to the fact that the oscillations observed in forex charts, where prices are visibly changing in an oscillatory pattern, are known to follow Fibonacci ratios very closely as indicators of resistance and support levels; maybe not to the last cent, but so close as to be really amazing.

Additionaly, one important thing to remember is that Fibonacci analysis is a leading indicator. What this means is that by learning the correct Fibonacci trading tactics and techniques you will know how to determine the most probable turning points in the market before the price gets there. Yes, you can know what the forex market will do in advance!

For example, one of the widely used Fibonacci ratios is the 0.382 ratio. As it can be easily seen on any forex chart, the currency prices are continually changing and they follow an oscillatory pattern with peaks and valleys. The limit of the peak is usually called a resistance level while the valley is usually called a support.

In order to find the 0.382 ratio level what you do is, first; measure the size of the drop or rise over your time of interest. Once you have that value you multiply this by 0.382. Now depending on what you are looking at, a rise or a drop on the price of the particular currency pairs you are trading, you will add the last value you calculated to the total drop or subtract the value from the total rise.

Once you have the value you can then start planning the strategy you will follow in order to make a high probability profit from this valuable information. For the 0.382 ratio level calculated for a recent rise in the currency pair exchange price, your calculated level will be a highly probable support and for the case of a level calculated for a recent drop of the prices your level will be a highly probable resistance.

Many people tries to make this analysis overly complicated scaring away many new forex traders that are just beginning to understand how the forex market works and how to make a profit in it. But this is not how it has to be. I cant say its a simple concept but it is quite understandable for any trader once he or she has grasped the basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will help you to improve the accuracy of the entry and exit point for every particular trade.

Why it is Impossible to Predict Forex Prices

2008-01-27T16:50:00.000Z

One of the most important points in your forex education should be that if you try and predict forex prices you are 100% guaranteed to lose. The reason is obvious yet more novice traders make this mistake than any other - yet you don't have to predict to win let me explain why ...

Predicting is simply another word for hoping or guessing and that will not make you money in any venture in life and certainly not currency trading.

Let's first dispel the myth of prediction and then explain what you really have to do to win.

Why Predicting Forex is as Accurate as Your Horoscope

There is a huge industry in guru's who tell you they can predict market tops and bottoms and that markets move to a scientific repetitive pattern and pedal ridiculous theories based upon Gann, Elliot wave or Fibonacci numbers.

They all lose and its again common sense why markets don't move to a scientific law.

Why Dont they?

Because if they did, we would all know the price in advance and there would be no market - a market by its very nature moves on uncertainty.

Also if their was a scientific theory that applied to forex trading whoever had it, would not need to sell it to you, as they would be making to much money!

How to Win

The way to enjoy currency trading success is not to attempt to predict - but to act on the reality of the price change.

Let me give you an example that will make this clearer.

Let's say you see a currency coming into test major support and you think it's going to hold.

You do not simply execute a trading signal into the level of support - you wait.

You wait for support to hold and prices to turn away from the level - supported by price momentum.

Using Momentum

If you don't know anything about momentum indicators, then make them an essential part of your forex education.

These momentum oscillators will help you confirm changes in price momentum and allow you to see visually when price is

strengthening away from support. You may say I will miss the turn and sure you will - but you don't know its going to turn in advance!

There is an old saying:

"A bottom picker becomes a cotton picker"

And its right, try and predict market lows or highs and you will end up losing your trading account equity.

Great momentum indicators to use are:

The Stochastic, RSI, ADX etc - we don't have time to cover them here, just look them up in our other articles.

They are excellent indicators and will get the odds in your favour.

This is what forex trading is a game of odds - not certainties.

Don't let that worry you though if you can trade the odds you can make a lot of money.

If You Want To Win

Trading is not about trying to be clever and catching the exact turn, know one can do that - so don't try.

Trading has one aim making money and don't worry if you could catch just 60% of all the major trends you would be very rich.

If you learn forex trading the right way and get the right forex education you will now know you need to to act on the reality of price change, use momentum indicators to get the odds in your favour and if you do, your currency trading profits will soar.

Can Anyone Success in Forex Trading?

2008-01-27T16:46:00.000Z

Can anyone succeed in forex trading? Absolutely - as long as that person has the ability to accurately predict market swings and trend, and act upon them precisely for minimum risk and maximum gain. Forex trading uses currency form a large variety of countries and forms a trading marketplace where trillions of dollars are exchanged every day. It is important to understand the different parts of the market, in order to accurately interpret it.

The majority of money traded on the forex marketplace takes place between governments, banks and large financial institutions. International banks make up 50% of the forex market.

The reason being they have millions of dollars of their customer's money to invest and profit from.

More recently commercial financial companies such as UBS, Deutsche bank, and Citigroup and HSBC have done extremely well on the forex market. In fact a large portion of their revenue is created through trading their investors money.

To get back to the initial question, yes anyone can succeed, but it is recommended to trade via a forex broker. The reason for this is that an individual will be able to achieve more leverage if trading through a broker- they will be able to accumulatively invest larger amounts and therefore achieve greater profits for their clients.

Savvy individual traders also achieve significant success on the currency trading marketplace. The key to success as an individual is minimizing risk (as most individuals will have a set amount to invest, and fall back upon) and conducting medium term trades where profit potential is at its highest. The key to most individual currency trader's success is forex trading software. Software such as the Forex Killer System allows trader's to accurately predict market trends, and exploit them for profit. The beauty of such systems is they usually have a 'demo feature', which allows the capabilities to be tested without having to invest any real money.

Conclusion

Anyone can succeed in forex trading provided they have access to as much data and trends as possible, know how and when to act upon these trends, and can consistently achieve profitable trades- no matter how small they are. The idea is to have consistent small profits, rather than large profits and large losses.

How to Choose The Right Forex Trading Broker

2008-01-27T16:39:00.000Z

Picking the right forex trading broker can be a tedious exercise for most traders. There are more than a hundred online brokers today and more are coming on board. Since the foreign exchange market is worth trillions of dollars, it offers lucrative opportunities for brokers to set up their firm online. The challenge is with too many choices, it is hard to decide which is best for you. This piece of information would provide you with the necessary tips to pick an ideal forex trading broker.

Since the foreign exchange market is decentralized, it can be hard to identify fraudulent practices by unscrupulous brokers. When finding a broker, do make sure to follow the following pointers and your chances of finding an honest and reliable forex trading broker are dramatically increased!

1. Always request for references that you can speak with.

2. Do a check with the local regulatory agencies and make sure that the forex trading broker is registered. For US-based brokers, see if they are registered as Futures Commission Merchants (FCM) with the Commodity Futures Trading Commission (CFTC) and registered with National Futures Association (NFA).

3. Compare the account details such as the minimum deposit required, leverage, spreads and so on. Ask them specifically are there any commissions chargeable, lot fees, etc. This is to ensure you do not incur hidden costs. Some sneaky traders deliberately give you an impression that they are the cheapest to use but in actual fact load you on hidden charges.

4. The trading platform needs to be user-friendly. Many traders especially first-timers find it challenging to navigate around the site just to make sense of the charts and currency prices. If there are demo accounts, try them.

5. REQUOTING. This is a big pitfall that many traders fell into before realizing. Low spreads and commissions do not mean much if the forex trading broker decides to "trick" you with requoting. Basically, what it means is that when you transact with a buy/sell call for a currency pair at a certain price, the broker requotes and charge you on the requoted price rather than what you see.

The difference in transacted prices can be as much as 9 pips and beyond. Be wary of those dealers that keep requoting when you are making huge gains! It is common to have occasional ones but when it happens way too often, you should smell a rat. Always choose one that have a "no requoting" policy.

Well, now you are in a better position to find an ideal broker to work with. Be adventurous and start your search now. While forex trading carries risks, it is also a place where people make their riches.

Consistent Profits in Forex Trading

2008-01-27T16:37:00.000Z

One of the most amazing thing I have found out is that, most amateur Forex traders believe that the results of the Forex market is not random, yet they can't seems to produce consistent profits. Shouldn't a nonrandom market produce inconsistent results and a random market produce consistent results?

What those new Forex traders fail to understand is; Events with probable outcomes can produce consistent results. Experience traders treat trading like a numbers game, which is similar to the way casinos and professional gamblers approach gambling.

To give you an example, let's take a look at the game of poker. In poker, the casinos have approximately a 4.5% edge over the player. This means that, over a large sample size, the casinos will generate net profits of $0.45 on every dollar wagered on the game.

You may find that 4.5% might not sound like a lot, but if suppose a total of $100million dollars is wagered collectively in the casino over the course of a year. The casino will net 4.5million profit! Every professional Forex traders understand that every individual trade is a unique even, where the outcome is random relative to the last trade or the next trade. New Forex traders must know that in each individual trade, there will be a random, unpredictable distribution between winning and losing. But on a collective basis just the opposite is true. If a large number of trades are executed, patterns will emerge that produce a consistent, predictable, and reliable outcome.

Now, let us get into deeper psychology into how new Forex traders can succeed in producing consistent results by applying the following simple beliefs. Firstly, they need to know that it requires 2 levels of beliefs to be aligned in order to produce consistent results in a random situation.

At the first level, they must believe in the uncertainty and unpredictability of the outcome of each individual trade. On the next level, they must believe that the outcome over a series of trades executed is relatively certain and predictable. The degree of certainty is a function of how good their edge is.

It is the ability to believe in the unpredictability of the Forex market and simultaneously believe in the certainty of the outcome when a series of trades are executed that makes an individual Forex trader successful.

The belief in the uniqueness of each trade prevents experience traders from engaging in the pointless endeavor of trying to predict the outcome of each individual trade. Experience traders have learned and completely understand the fact that they don't know what is going to happen next. Most importantly, they don't need to know in order to make money consistently.

When you don't have to know what's going to happen next in Forex trading, you don't place and special emotions on each trades. In other words, your egos involved will not get in your way of trading effectively.

Steps to Creating Your Own For Big Profits

2008-01-10T17:03:00.001Z

If you want to trade currencies you need to create a currency trading system and you can do this yourself it's a lot easier than most traders think and here we will give you 4 steps to create a currency trading system that can make big gains.

Here we are going to look at getting a long term trend following currency trading system together.

Spotting Opportunities

The first step in any currency trading system is spotting opportunities and here you need to look at the concept of support and resistance - it's easy enough to learn and if you don't understand why it's important there is plenty of free information on the net.

To keep the odds in your favour be selective in trades.

You don't get paid for trading more you get paid for being right and you need to make sure support and resistance are valid - at least 3 tests and the more the better. The wider the tests are apart the better too.

The next bit is the hard bit - will support or resistance, hold or break?

Next we are going to cover how to avoid the major errors that causes most traders to lose with their currency trading systems -make the error to and you will lose.

The first error, is trying to predict where the market will go. If you try and predict you will lose, as its simply another word for hoping and guessing and that wont get you anywhere in life, particularly currency trading.

Forget predicting and people who tell you it works - it doesn't.

The second error is trying to "buy low and sell high" which is actually related to the above point.

You learn it at school and it would be great if it worked in practise - but the fact is its again hoping or guessing, as in most instances, when you try and buy a low price momentum is moving against you and levels break more often than they hold.

This leads on to our next point.

1. Confirm the Move

For example, if prices move to support don't just jump in and buy WAIT For price momentum to turn around and go the other way - this is the reality that price is moving your way.

Sure, you have missed the bottom but as you can't judge where prices will bottom in advance that's not a problem. Catch 60 - 70% of a trend and you will pile up a lot of money over time.

So, you have support and resistance to watch and now you need to judge momentum. You can do this with a variety of momentum oscillators and two of the best are the stochastic and the Relative Strength Index (RSI) look them up.

2. Don't Forget Breakouts

You can trade into support and resistance but if they are new highs or lows they are breakouts and the fact is these are the best trends of all and you need to go with them.

Don't wait for the pullback to get in at a lower price - enter your trading signal and go with the break. These are the trades with the best odds and most people wait and remember most people lose!

3. Keep It Simple

You don't get paid for being clever or working hard in currency trading, you get paid for being right - that's it.

If you think that the harder you work on your forex trading strategy, the more money you will make then you are mistaken.

Simple trading systems work best as they are simple to understand, apply and are more robust in the face of brutal market conditions.

4. Stops and Targets

Stop levels are obvious, when you enter a trading signal and are dictated by support and resistance. The problem most traders have is they move them to quickly - do this and you will get clipped out by normal market volatility - if you are trend following keep them well back and trail them up slowly.

You may have to take dips in your open equity but that's simply the way it is so get used to it and keep your eyes on the bigger prize.

The above are the basics to consider when devising a currency trading system and its easy enough to do - the hard part is following a system with discipline but you can if you follow the points above.

Why?

Because you will have created it and understand how and why it works - this leads to confidence and discipline follows as a result.

Good luck with building your currency trading system - you can do it with a little time and effort and make some great forex profits simply have confidence in yourself and follow the above points.

How Physics Can Make You A Lot Of Money

2008-01-10T16:59:00.000Z

Physics. That haunt of the nerd and the may be occasional weirdo?

Well, have I got news for you! If you are a trader, physics could make you a lot of money and you do not have to study black holes and string theory to reach your goal.

Just think Time and Gravity.

Let these be your friend. Study these two and you are home free. What does time and gravity have to do with trading you say? Have you ever heard of "the trend is your friend until it ends"? To use physics, you have to then apply one of Newton's Law of Motion - the one that says, an object remains in motion until it is stopped by a greater opposing force.

Then if the trend is up, you have to keep buying until you can no longer buy. And if the trend is down, you have to keep on selling until you can no longer sell. To be successful at trading forex, you have to then know the trend and trade accordingly. When you trade with the trend, Time then becomes your ally. You can enter at a crappy price and time will probably bail you out and make you profitable if you understood how it works.

First of all, many traders jump in the market regardless of the conditions. They enter a dead market with no volatility and enter a volatile market against the trend; big mistake!

A bigger mistake is that they often set tight stops that are sure to be taken out!

This is the lesson to take out of this article. Be slow to take profits when you trade with the trend and be fast to take profits when you trade against the trend.

The reason? Time.

The passage of time is favorable to the trend trader and a killer to the counter-trend trader.

Take the following steps:

1. Plot a Simple Moving average 49 on your chart

2. When price crosses it to the upside, trend is up and to the downside, down

3. Buy when the trend is up. No sells

4. Sell when the trend is down. No buys

5. Attempt counter-trend trades only after price has made a considerable run away from the 49 MA.

In the GBP/USD I wait for about 100-120 pips before attempting a counter-trend trade.

The 49 MA is a special MA with a peculiar behavior that you can learn to exploit.

How To Win Short Term In Forex Trading?

2008-01-10T16:55:00.000Z

Short term Forex trading can get pretty scary sometimes and good traders are always looking for a way to reduce the risk and increase the profits.

Do you have a short term forex trading style? If so, you need to be aware every day of the data releases, prominent speakers, and other potential big market moving events in the day ahead.

Do not forget that the economic data calendar for the forex market is all encompassing. On any given day it's possible for items coming from several different countries to have an impact on price action. Consider the following example, this is an indicator that moves the market.

CCI - Consumer Confidence Index

The Conference Board; Last Tuesday of each month, 10:00am EST, covers current month's data. The CCI is a survey based on a sample of 5,000 U.S. households and is considered one of the most accurate indicators of confidence. The idea behind consumer confidence is that when the economy warrants more jobs, increased wages, and lower interest rates, it increases our confidence and spending power. The respondents answer questions about their income, the market condition as they see it, and the chances to see increase in their income. Confidence is looked at closely by the Federal Reserve when determining interest rates. It is considered to be a big market mover as private consumption is two thirds of the American economy. If you are looking for an effective forex currency trading system, then using this report can make it even better.

Obviously, long-term traders don't have to be keenly aware of the upcoming data and influential speakers. However, they should, be alert to the happenings in markets which influence forex. Those include interest rates, commodities, and perhaps stocks at times.

If you really want to improve your trading then be sure to click on the link below, you will be glad you did. Good luck trading.

Increase Your Trading Profit Using Forex Trading Signals

2008-01-10T16:50:00.000Z

Forex trading can be a volatile form of investing. Many people have lost a significant amount of money buying and selling foreign currencies. While hoping to time their trades perfectly to take advantage of market dynamics and trends, most Forex traders begin by losing money before they start making any profit. Fortunately, there is a way to stack the Forex deck in your favour. Here we will discuss using Forex trading signals and whether doing so can help make your Forex trading more profitable.

What Are Forex Trading Signals?

Trading currencies effectively requires that you know when to buy and sell. However, unlike stocks which are largely based on the financial reports of a company, currencies are usually impacted by many other factors. Professional traders watch a variety of indicators to determine when they should buy or sell. In addition, they watch the trends that may affect the currencies they trade. These indicators and trends comprise the majority of Forex trading signals that experienced traders use.

Where Can You Get Forex Trading Signals?

The small currency trader rarely has access to the trading systems and software programs available to full-time researchers and traders. Also, most small Forex traders are unable to spend more than a few hours a day researching the currency markets (professionals often spend up to 16-hours per day looking at data and placing educated trades). This puts the small trader at a distinct disadvantage.

However there are some solutions, many currency brokers offer to supply small Forex traders with the Forex trading signals that their investment firm compiles but remember this type of service is only as good as the firm that is producing the signals. Access to these signals usually requires a subscription. If you're currently looking for a Forex broker to work with, consider asking whether they can offer Forex trading signals for a fee.

Should You Rely On Forex Trading Signals provided by Forex Brokers?

There are two schools of thought here. Some traders wonder why Forex brokers offer these signals to the casual Forex trader. After all, if the signals truly do identify trends that can be leveraged for profit in the Forex market, why offer those signals to other traders? In a volatile market where knowledge is power, the distribution of valuable information would limit the potential of early movers (in this case, those offering the Forex trading signals).

On the other hand, other traders realize that their time and resources are severely limited. Many have full-time jobs and cannot devote 16 hours a day to studying the trends and other signals in the currency markets. Similarly, they don't have access to the powerful software programs that major investment firms use to extract and compile data about those markets. So, they see value in a subscription services for Forex trading signals.

An alternative is to have your own software that generates Forex trading signals to help you enter and exit the market at the best time to maximise you trading profit. This type of software used to be too expensive for most traders but now there are several very good reasonably packages available on the internet.

In the end, Forex trading is volatile. In order to do well with Forex, you need timely information about the currency markets in which you trade. Understanding what kind of information you need and whether you have access to a timely source can mean the difference between profits and loss in your trading account.

Get Your Forex Signal Today >> Amazing Forex Signal

A Great Forex Trading Indicator

2008-01-10T16:26:00.000Z

Forex trading can be tough if you do not know what you are doing. That is why I have provided the following simple yet helpful forex trading strategy. The Simple Moving Average (SMA) is an extension of the trend line concept. The SMA is plotted on a graph by the charting program of the forex market data. The SMA takes the average of the close price of a given number of the last few periods. Any number of periods can be selected. You can have a SMA 5 or an SMA 20. An SMA 5 will take an average of the previous 5 close prices on the chart and will plot it on the chart along side the other price data. Each bar will use the previous 5 bars worth of data to calculate a point and plot it on the graph.

If the SMA is generated using a large number of periods (like an SMA 50 or SMA 75), you could interpret it similarly to the trend line. But if you select "faster" SMA's (like SMA5 or SMA20), you need to use a different strategy.

I am about to give you a strategy using the SMA. It is called the SMA Crossover Method. The SMA is one of the most commonly used indicators and can be found on almost any charting package. When you plot the SMA, you will be able to slect a line color to plot it. Make sure to use a different color than the actual prices on the chart.

Step 1: Plot an EMA5 using blue (or any color you like).

Step 2: Plot an EMA20 using red (or any color that is different than step one's color).

You now have two SMAs plotted on the chart. You also have two signals.

Buy Signal: When the SMA5 Crosses the SMA20 moving upward.

Sell Signal: When the SMA5 Crosses the SMA20 moving downward.

The beauty of this method is that the price of the currency pair cannot go up significantly without triggering the buy signal.

This was a very simple and practical indicator that should really improve your trading results as you implement the strategy outlined above. Good luck trading.

5 Minute Pin Day Trading System

2008-01-10T16:23:00.000Z

This simple system is simply great if you are the kind of day trader who just wants to make a few of pips every day. After all that is all we need to change our lives.

This system uses a candlestick formation fore entry trigger and nothing more. I must stress that you can not really trade this system if you do not have a spread of 1 pip of less. I have .9 pip on the EURUSD which is offered by a couple of large well known brokers.

Open a 5 minute candlestick chart.

Wait for a pin bark formation. This formation happens when price opens then moves up or down by at least 5 pips before returning back to almost the open price. This creates a candlestick that looks like a pin bar.

We are going to take trades in the opposite direction of the pin bar, for example if the pin is pointing down we are looking to trade long and if the pin is pointing up we are looking to trade short.

Use a 10 pip stop but remember this is an emergency stop only in case you cannot close the trade for some reason.

Once a pin bar is formed take a trade on the break of the pin bar, do not let the trade go against you by more than 5 pips.

Once you are in profit by 2 pips never let it go back into a loss.

These setups are good from 2-8 pips maximum, you will not get big moves, I like to take 2-3 pips out at a time.

Forex Trading Signal and How To Find Them

2008-01-10T16:05:00.000Z

Forex trading signals are communications sent by the firms involved in currency trading. They include forex trade brokers and independent analysts of the currency trading market. Communications are sent by these agencies to their subscribers with an intention make them aware of the changes in the market. The subscriber can positively use these signs to buy and sell currencies. These signs are also known as entry and exit signals among those who are involved in currency trading. They adopt different media such as computer, email, mobile or pager alerts to communicate these to the subscriber.

Before sending signals these analysts and brokers are expected to conduct an in depth research about the existing market conditions. It is only after arriving at a solid conclusion by himself that an analyst or a broker is to send an alert to the customer. They will normally be active only for a short period of time due to the highly fluctuating nature of currency trading.

A number of forex signal service providers are there in the currency trading market now. Majority of them are providing service only for a few popular currency pairs such as EUR/USD, GBP/USD, USD/CHF etc by charging a huge subscription from the subscribers of the signals.

The only positive aspect of subscribing for currency trading signals is that the subscriber will be to save his time by leaving the market analysing part to these indication providers. Most of the subscribers are using this service to substitute their ignorance of currency trading market.

Many still doubt the authenticity of the indications from various sign service providers. According to them a vast majority of these signal providers are not dependable for investing in the currency market.

A number of forex signal soft wares are also now available in the market to help the investors of currency market. They have now become an essential part of a currency trader's kit.

By using sign software a trader will be able to get the up-to-date alerts about currency market to make wise investments in currency. It will also help them to know the entry and exit value of the currencies through the indicator alerts.

The most attractive feature of this software is the real market time analysis from this software. An investor will get up to minute information from the currency trading market to make the investment in currencies a lot more profitable.

Amazing Forex Signal

The Engine of Trading

2008-01-10T16:03:00.000Z

Lets imagine that you have a car but without engine, its obvious that unless you had some magical powers to whisk you away where ever you wanted you could not be going very far any time soon. The engine is the heart of the car. The engine in forex markets represents the mass amounts of forex online trading systems created every day.

As a guide, Forex online trading systems make their mark behind your trading. Rules, ideas, philosophies all fall into either your own personal system or someone else's system. Since the Internet is the home base to most forex transactions. Many developments of online trading systems have become a common practice with most forex traders. All people are out to find what they call the "Holy Grail", a system that leads them to the most profits and least risk. If you believe there is such thing, that is on you.

Forex online trading systems are always readily available on the Internet. Most of them you can find for free on others web pages, forums, or with a basic search in the search engines. Others may charge you for there system since they believe that is a very profitable set of rules that could make you beyond wealthy from the forex market.

It is a common perception that to be able to truly become wealthy through trading the FX , one needs to have a proven trading system. That's why so many traders spend more of their time testing new systems than actually trading the markets. It is the brain behind your investment and once you build that brain with your knowledge and techniques, it does the rest of the work for you.

FX trading systems are more popular now that almost everyone has access to a computer and internet. Unlike the stock exchange, the FX does not have a particular place for trading to take place. While trading takes place all over the world, online trading makes this process more convenient than ever.

Transactions in the FX are traded very rapidly, plus it 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 trading opens around the world. Online trading allows banks, financial institutions, brokers and speculators to trade their currency rapidly and with ease. FX online trading system is also a popular way to change foreign currency because it happens in real time with no delay.

Also, another tip to learning to trade 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.

Because Forex 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 their own. When learning about online 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 trading. Practicing on the demos helps speculators learn the basics of Forex trading.

Beware of Curve Fitting or Lose!

2008-01-10T16:01:00.000Z

Forex scalping systems are more popular than ever and they all come with great track records, which have unbelievable gains and their very tempting for novice traders but what they need to be aware of is - curve fitting which ensures that most scalping systems lose money.

Curve fitting is when a vendor bends his system to fit the data.

When the vendor can't get the system to work, he keeps adding more rules and parameters in until it does, by bending the system to fit the data or curve fitting. He then has a track record he is satisfied with or more to the point gives him a great track record he can sell.

What happens next?

No two periods of data are going to exactly replicate themselves and the system simply collapses and loses in real time trading.

LOOK FOR THIS DISCLAIMER!

The buyer scratches his head and wonders why - but if he looked for this on the track record he can find out if its curve fitted. Look for the disclaimer below (or similar) on any system you buy - this is standard CFTC one.

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

If you are looking at buying a forex scalping system from a vendor, beware there all curve fitted.

You will NEVER find one with a real time track record, as forex scalping simply doesn't work by the very nature of the logic its based upon.

The time period is simply to short.

All volatility in daily or hourly time frames is random - support and resistance is meaningless and prices can and do go anywhere in a day. It's impossible to get the odds in your favor and forex day traders always lose long term.

Of course it makes a good story and naïve and greedy traders buy it and vendors know this.

They simply tell the story add a simulated track record and appeal to their greed - it's a big industry.

If you want to trade forget forex, forget scalping systems or day trading and trade longer time periods, where you can get the odds in your favor.

Leave forex scalping systems to the dreamers and greedy traders, get the right forex education and enjoy currency trading success by using longer time frames and valid data.

No Need to Be Accurate To Make Huge Gains

2008-01-09T15:48:00.000Z

If you want to win at trading currencies correct forex market timing is needed but if you try and be too precise you will lose. This may sound strange at first but if you look at how forex prices move it will become clearer.

1. When novice traders think of market timing they are dominated by two major thoughts:

Predicting market tops and bottoms

It's very tempting to do this as you want to be in at the best possible price with your forex trading strategy but you cannot predict in advance why?

Because if you then you are simply hoping and guessing a level will hold and that wont get you anywhere in life and certainly wont give you currency trading success. Let me give you an example:

A forex trader sees prices moving to a support level and buys just above it hoping it will hold - but instead the price carries on towards support, goes through the level and stops him out.

What he should have done is confirmed that the level was going to hold (we will go through how to do this in a minute) but first lets look at another commonly held belief related to the above.

2. Buy low sell high

You will have heard this is the way to make money in investing - but it's again relying on hoping and guessing which we know will not help us win and also means you will miss the major forex trends and not get in with your forex trading signal - Why?

It's a fact that most new trends (and the strongest) develop from new market highs o and you can check this on any forex chart. Traders who wait hoping to get into the market at a better price, simply see the trend disappear over the horizon and they don't make any profits from it.

The Solution

Is to base your forex trading strategy on confirming if level will hold or break with momentum oscillators. If you don't know what they are its time to learn.

We don't have time to cover them here - but they are covered in our other articles and will give you advance warning of changes in velocity of price.

If a price is dropping to support - wait for a turn to be confirmed by these indicators.

You will miss the exact turn but you can't see that in advance anyway, so there is no point in trying and if you trade with momentum on your side the odds are in your favour.

The same technique is used when a market breakout to new highs or lows - if momentum supports the move execute your trading signal and go with the break.

Trading the Odds

In both of the above examples you have not got in at the lowest or best price but what you have done is, got in at the lowest or best price with the odds on your side and traded the reality.

Perfection and perfect timing is a myth, no one can do it and the best way is to trade the reality when you use a forex trading system and that means confirming ALL moves are going your way before trading.

Keep in mind if you get just 50% of every major trend you would be very rich. If you want to learn currency exchange the right way you will realise perfection is impossible.

Forex trading is about making money not trying to be clever and it's about trading high odds moves and then means waiting for confirmation.

Building One For Big Profits in Simple Steps

2008-01-09T15:36:00.000Z

Most novice traders think building their own trading currency trading system is hard but it's a lot easier than you think and here we will look at how to put one together that will win in 3 simple steps.

Most novice traders make the mistake of buying a currency trading system from a vendor which is normally an equation that has a simulated track record and lose.

Lets face it most systems sold online are junk but there are a few good ones and traders still manage to lose with these.

Why?

Because they are following someone else and don't have confidence to follow the system through periods of drawdown to longer term currency trading success - this is precisely why you should develop your own.

This is the equation for market success:

Logical Robust Method + Discipline to Apply = Forex Trading Success

If you learn and understand your system you will have confidence in it and will be able to follow it with discipline. Discipline comes from understanding and confidence and that's why you should take time to build your own.

When building a forex trading system there are a few points you need to keep in mind:

Simple Systems are Best

Simple systems are easier to understand, easier to apply and more robust in the face of brutal ever changing market conditions.

Trade Longer Term

Never day trade you will lose as all volatility is random choose currency swing trading if you lack patience or long term trend following if you are more patient.

Three Key Elements To Understand

The easiest way to trade for a novice is to use a breakout system.

It's a fact that most major moves start from new market highs so you need to be prepared to buy them.

Most traders simply cannot do this and that's precisely why it works. While you take the break they wait for the pullback that never comes.

Trading breakouts are when the odds are at their best and if the breakout is of an important resistance level a mega trend can often follow which accelerates away and doesn't pull back and it's a great feeling when you are on board and the losing herd are not.

Trading breakouts is simple to understand and easy to apply you only need two other elements that you need to understand.

Support and resistance and its validity

The more times a level has been tested the more valid it is and if these tests take place in time frames that are wide apart even better.

And

Confirming the move with 2 or 3 momentum indicators to execute your trading signal. These are simply leading indicators that you can use in forex technical analysis and apply on your forex charts to give an idea of shifts in price momentum and see if velocity of price supports your view.

In part of this article we are going to show you how to put this forex trading strategy and apply it for profits - will it work? The answer is yes and more importantly, as you will understand it you can apply it with discipline for currency trading success.

Forex - Simple Tip for Huge Profits

2008-01-09T15:33:00.000Z

Here I am going to give you a simple tip that can make huge gains. It's simple to understand easy to use and easy to apply and can and does make big profits.

To show how effective this tip is I have demonstrated it live by predicting the euro would go no higher than 1.50 (it fell from this level) said it would have a target of 1.44 (it traded below this level) and then indicated a rally to 1.48 was on the cards and its trading just below this level.

Does that make me a guru or an expert? Of course not all I am doing is using the news to indicate overbought / oversold areas and anyone can do it

I am writing this on Thursday Dec 3rd and now looking for the euro to fall again.

This may seem odd if you read the news - most are turning bearish on the dollar based upon:

A run of poor U.S. data, including Wednesday's contraction in the manufacturing sector for December. To add to the dollars woes we have crude oil up at $100 a barrel.

This has seen dealers to fully price in a 25 basis point cut in the Federal Reserve's benchmark interest rate at the end of the month, and a one-in-five chance of a bigger 50 basis point move.

So the dollar is a banker to crash out of sight then - No and for the reason why you need to understand this equation:

Supply and demand + Investor perception of them = Price

The supply and demand fundamentals are there for all to see but we all as humans draw conclusions based upon our own view. Humans tend to push prices to far away from fair value and when they do this and you can spot it you can look for a contrary trade.

Will the fed cut by 25bps maybe but that's priced in, by 50bps? Unlikely, as they have already made their views clear on inflation. Is the US heading for recession as many think? Not yet, GDP is robust and the recent data indicates a sluggish economy not one in recession so prices look like they have run ahead of the fundamentals and the dollar could rally.

It's a fact that the majority of traders lose, so being in the minority is not a bad place to be.

All the above is priced in and while the price may run a bit higher a selling opportunity is coming in the euro against the dollar.

This doesn't happen just in currencies check out crude oil 15% in a short space of time is this anything to do with supply and demand its investor psychology at work and crude cannot hold these levels based upon supply and demand.

Of course humans are unpredictable and you never know how far they can drive prices and this is where you need to look at your forex charts momentum is waning in both crude and the euro and its time to watch for a turn.

The important point is to wait for confirmation and when a top is confirmed shorts can go in but you need to be patient.

Our view is the euro will probably top around here and crude oil is the same tomorrow could be the day it happens. Wait on the sidelines and wait if the signals don't come don't jump, if they do then you can hit some nice contrary trades.

There's an old saying:

"If you can hold your head when everyone else is losing theirs you probably haven't heard the news"

In this case you have and you're holding your head and seeing an opportunity for a profit.

Forex - Correctly or Lose

2008-01-09T15:32:00.000Z

So you want to win at forex trading? Well here is one simple question you must answer correctly with no hesitation - if you can you could be a winner if not forget forex trading. Here is your question:

My trading edge (the reason I will win when 95% of traders lose) is then define it:

Now a trading edge is essential and it's something you MUST have, understand what and why it gives you an edge, so you have confidence in it, to lead you to success.

Trading edges come from within and their personal and their based upon this:

Understanding = Confidence = Discipline = Forex success

A TRADING EDGE IS NOT

- Following expert news stories
- Day trading or scalping
- Following a system from a vendor blindly
- Buying low and selling high
- Predicting price moves in advance
- Believing markets move to a scientific theory
- Believing forex trading is easy
- The more knowledge you have the better
- The more complicated your forex trading system the better

If you think any of the above will lead you to currency trading success - your wrong and need to continue your fore education. The above are common myths there are many more but the above are believed by the bulk of losers and their the majority 95%

Consider the figure 95% it's a lot!

So how do you win?

There are no secrets to forex trading and anyone can learn currency exchange for profit but it involves seeing through the myths and working smart and seeing the reality.

The reality is that you need a simple method you understand can have confidence in and can apply with discipline.

Forex trading is actually quite simple when you understand what you need to do but most traders fail to get past first base of getting a logical method and more fail at the nest hurdles which is having confidence and few ever have the discipline to follow their forex trading strategy to success.

If you want to win at forex trading keep in mind it's based upon applying a method with discipline for that you need confidence and if you don't have these traits you won't have discipline and end up falling prey to your emotions and losing

The Good News Is:

For those traders prepared to work smart and do their homework a life changing income can be had and anyone can do it - but its up to you.

If you understand the above you will realize that forex trading requires certain skills and you need to learn and apply them and they are not what most forex traders think they are.

Learn the above, digest it get a trading edge and then you can enjoy currency trading success.

Forex - Game Of Odds?

2008-01-09T15:29:00.000Z

Nobody knows the future. It's as simple as that. We can make assumptions about the future, but they are assumptions, no matter how rational they may seem to be. Theoretically, every economist should be a billionaire. After all economists are the ones who are supposed to understand how the flow of resources move through society. They are supposed to know the factors of supply and demand, the two forces that drive every free market economy. It's what they study for years on end.

But even the most talented economists are confronted with the duality of every economic situation. For example, when the dollar declines in value, it effectively reduces the spending power of every American consumer, making imports much more expensive. On the other hand a lower dollar means cheaper American goods and therefore better exports, which in turn means more revenue for American companies, which in turns boosts the American economy.

Bring this all back to trading and we find a rational reason for someone to sell the dollar and a rational reason for someone to buy the dollar. Those who sell the dollar believe that the dollar will continue to weaken because of a weakening economy, whereas those who buy the dollar believe that cheaper goods and assets will attract foreigners to buy the dollar and therefore bet on a future strengthening. Who dominates in the buying and selling depends on perspectives. Traders know that there are certain levels at which the perspectives of the sellers will overrule the perspectives of the buyers, and therefore there will be a greater supply than demand. This is also true in the converse.

So what is a trader to do? He or she should calculate the odds by stacking the various factors that modify perspectives. For example, the recent sell off of the US Dollar against the Canadian Dollar, to a level of $0.91 cents, provoked the following reasoning. How can the Canadians continue to export their commodities when their currency has reached the highest value in recent history? Technically the charts showed this level as being at an extreme level. At some point there would have to be be a retracement of the move or a reversal of the sentiment. These kind of odds should put a trader on alert to watch the currency pair for signs of a change in sentiment.

So a low risk opportunity sets up for intra day traders looking for a bounce and for swing traders observant of the fact that a profit taking opportunity will cause the sale of the Canadian Dollar. This contrary to the trend trade offers the possibility of great rewards, even though the window of opportunity may be short. These trades do not stack up every day but an alert trader should always be on the lookout for them.

The consequence of this potential trade was a move from .91c to .98c in a matter of a week or so. This is a move of over 800 pips. Very profitable if the trade was sized properly.

Terms Every Forex Trader Should Know

2007-11-01T17:09:00.000Z

Before jumping into the forex market, you need to arm yourself with some terminology that will be used in any course or software on this subject. The following set of terms were put together with the idea of providing the novice forex trader with the fundamental concepts of the forex trading business. While they sound technical, most are easy to understand and apply.

Let us begin with the instruments that are traded in the forex markets. Currencies are traded in pairs so the instrument will always be in this double denomination. The reason for this is simple; the basis of forex currency trading is to exchange one currency for another. So if the pair is the Euro and the US Dollar, and the forex trader is taking a long position or buying the Euro in hopes that it will appreciate, effectively the trader is also selling US Dollars to buy the Euros. The most widely traded pairs are the Great Britain Pound and the US Dollar (indicated as GBP/USD), the Euro and the US Dollar (the EUR/USD pair), the Aussie Dollar and the US Dollar (AUD/USD pair), the USD and the Japanese Yen (USD/JPY pair), and the Canadian Dollar and the USD (USD/CAD pair). These pairs account for well over 80% of the total volume of the trading in the forex market. The advantage to trading in these currency pairs is that they are highly liquid and allow the investor to convert their portfolio to cash very quickly to realize a profit.

In every pair, the first currency is called the base currency, over which the second one is countered to imply the price of the pair, or commonly referred to as the "cross currency". The second is therefore called the quote currency and the pair price is recorded in terms of the units of the quote currency required to buy one unit of the base currency. Thus, assuming the price of the GBP/USD pair is 1.5, this implies that 1.5 USD will buy 1 GBP.

Every pair is quoted in terms of a bid ask spread. The bid price is the rate at which your forex broker bids to buy the currency at, while the ask price is the rate the forex broker is asking to sell the currency to the forex trader. The bid price will always be less than the ask price and the forex trader will buy at the ask price and sell at the bid price. The bid ask price will be quoted as: GBP/USD 1.532/5, meaning the bid price is 1.532 and the ask price is 1.535.

A pip price interest point), as it is commonly called, is the smallest incremental change a currency pair will experience, for instance, a change in the GBP/USD price from 1.532 to 1.542 is a change of 10 pips. A trading margin is a deposit which is a minimum amount or a small percentage of your traded amount that you have to put up. The remaining amount is supplied by your broker. This amount can vary from 1% to 0.25%, also referred to as 100:1 and 400:1. Most often, forex brokers will offer 100:1 or 200:1 to most clients. This is risky but enables the trader to leverage a large amount that he or she would not otherwise have access to.

Finally, a margin call can happen when the forex trader allows the balance in the trading account to go below the margin deposit percentage agreed upon with the forex broker. The broker will automatically sell your long positions or buy your short positions and clear the entire trading account, returning the margin amount to the trader to protect the trader from losing more money than they have.

Forex: Simple Stupid Guide

2007-11-01T17:02:00.000Z

A wonderful way to diversify your investment portfolio is to learn forex trading. Many new investors have discovered the world of foreign exchange trading to be an exciting new challenge. One that is filled with rewards that are beyond what they were achieving as stock traders. Currency forex trading is a great way to branch out into new investments. Experience a completely new world of investing by stepping outside of the chaotic domestic economy.

The unique thing about the forex market is that it never closes, if you feel like trading at 2am it's not a problem. Unlike with other markets, such as the stock exchange, you can continue dealing with the currency trading market without worries over it closing at the end of the day. Websites give you 24-hour access to monitor what has been happening in the world currency markets at anytime. Through these sites you are able to learn all the basics about the market.

The websites will include tools and tips to guide you through the beginning steps of trading. This is a clear advantage because you can hone your trading skills before laying down your own money in the market.

When you think of it, the forex firms are training you to become skilled at trading for free by providing guidance, demos and news at no additonal cost. In a short while you will start feeling confident in trading and investing in forex. It only takes about $300 to start getting some good returns.

Learning forex does not require that you have a degree in economics or that you study the markets for years. The forex trading websites have made it easier for you to become successful. Forex brokers will give you access to the market for your currency trading.

Just like stock brokers, they can provide you accurate information and advice on how to deal with Forex trading strategies. Advice includes all the aspects of the Forex trading market which extends to research approaches and technical analysis to improve the member�s trading performance. Naturally, because this market has apparently been providing a great return on investment, large financial institutions have been proactively monopolizing the market.

However, with the trading firms, small-time individuals also have the opportunity to earn money through Forex trading brokers. As I mentioned earlier, the online firms have been providing powerful website tools to become familiar with the whole idea of the currency market.

Your choice of Forex trading broker will largely depend on your need in the trading market. Many brokerage sites will provide trading simulators and expert advice as well as research and analysis designed for first time traders. Furthermore, these websites typically provide experienced online Forex traders who offer in-depth advice to forex traders of all levels. All of these tools are available to beginners to try out.

You really can earn money by taking the time to learn forex trading. The availability of investment simulators and 24-hour customer support enables new investors to learn quickly. Not only can you be trading in no time, you will also be showing a tidy profit. Start researching forex trading. You might be shocked to see how many large companies are involved.

Trading System Articles

2007-10-27T16:25:00.002+01:00

Focus On Loonie - USD/CAD

Setting Stop Losses Secret

Novice Traders Mistakes And How To Correct Them

Why Choose Forex Trading Over Stocks

Swing Trading

50 Day Sma - Monitoring Trend

Which Are The Best Currencies To Trade

How To Profit Trading Forex

Forex - Lose Your Money Quickly

Biggest Enemy To Most Forex Traders

Useful Links

Paying Affiliate Programs

The Best of Forex Signals

Setting Stop Losses Secret

2007-10-27T16:21:00.000+01:00

When traders first begin considering their stop losses, keep in mind this comment from Tom Baldwin, a leading day-trader. He said, “The best traders have no ego.”

Successful traders are faced with losses constantly, and they swallow their pride and get out of the position when they have to. This allows traders to survive in the market long enough to be successful. Traders set their stop losses, and then stick to the plan.

How do traders go about setting stop losses? There are several different ways. Traders could base a stop loss on a percentage retracement, where the allowed share prices retrace a certain percentage of the entry price before the exit. Different indicators can be used to identify where the stop loss is going to be set. Traders could also use support and resistance stops to set the level at which exit is made. The key is to simply have a stop loss in place.

Personally, I find these options too subjective. I prefer having a mechanical way to calculate my stop losses, so I use a volatility based stop. The reason I use this type of stop is because volatility generally represents a measurement of how quickly the stock either rises or falls (market noise). Consequently, if I measure the stocks volatility, and take a multiple of that value, I’m probably going to have set my stop loss beyond the immediate noise of the market. This ensures I am not stopped out of a position too often.

Traders can measure volatility by using the Average True Range (ATR) of a stock. This value can be found with most charting packages. Basically, the Average True Range (ATR) indicates how much a stock will move on average over a certain period. For example, if traders had a one dollar stock that moved up five cents on average over the last 20 days, that doesn’t tell traders whether the stock is moving up or down. It just tells traders on average how much the particular stock moves. The average true range is a great tool and that can be utilized in the traders trading plan for more than setting stops. If traders are not familiar with setting stops, I recommend traders to do research. One place for excellent article sources is at the System Trading Blog .

Traders use indicators in calculating the stop loss by subtracting a multiple of the Average True Range (ATR) from the entry price. For instance, I could take two times the ATR and subtract it from my entry price. If we look at the example, I just touched on, with a one dollar stock, an ATR value of five cents and a multiple of two the amount is ten cents. Which, subtracted from our entry price of one dollar gives a stop loss value of 90 cents.

Before traders even enter a position, they should know where the selling point of the stock should be. If the share price doesn’t move in the traders favoured direction, but moves against them, traders will know when to sell. Emotions are removed from the equation, and they simply follow what the stop loss dictates.

This is how most successful traders limit their losses. They know when they’re going to sell before they begin trading. Although their methods of calculating this stop loss may vary, all traders have a stop loss in place. The stop loss is a crucial part of the traders trading system. Without it, even the best designed trading system can’t deliver profits.

Novice Traders Mistakes and How to Correct Them

2007-10-27T16:18:00.000+01:00

We learnt the following the hard way! If any of these things applies to you, don't worry – there is an easy solution!

Lack of Knowledge and No Plan

It amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course.

The stock market is not the place for the ill informed. But learning what you need is straightforward – you just need someone to show you the way.

The opposite extreme of this is those traders who spend their life looking for the Holy Grail of trading! Been there, done that!

The truth is, there is no Holy Grail. But the good news is that you don't need it. Our trading system is highly successful, easy to learn and low risk.

Unrealistic Expectations

Many novice traders expect to make a gazillion dollars by next Thursday. Or they start to write out their resignation letter before they have even placed their first trade!

Now, don't get us wrong. The stock market can be a great way to replace your current income and for creating wealth but it does require time. Not a lot, but some.

So don't tell your boss where to put his job, just yet!

Other beginners think that trading can be 100% accurate all the time. Of course this is unrealistic. But the best thing is that with our methods you only need to get 50-60% of your trades "right" to be successful and highly profitable.

Listening to Others

When traders first start out they often feel like they know nothing and that everyone else has the answers. So they listen to all the news reports and so called "experts" and get totally confused.

And they take "tips" from their buddy, who got it from some cab driver…

We will show you how you can get to know everything you need to know and so never have to listen to anyone else, ever again!

Getting in the Way

By this we mean letting your ego or your emotions get in the way of doing what you know you need to do.

When you first start to trade it is very difficult to control your emotions. Fear and greed can be overwhelming. Lack of discipline; lack of patience and over confidence are just some of the other problems that we all face.

It is critical you understand how to control this side of trading. There is also one other key that almost no one seems to talk about. But more on this another time!

Poor Money Management

It never ceases to amaze us how many traders don't understand the critical nature of money management and the related area of risk management.

This is a critical aspect of trading. If you don't get this right you not only won't be successful, you won't survive!

Fortunately, it is not complex to address and the simple steps we can show you will ensure that you don't "blow up" and that you get to keep your profits.

Only Trading Market in One Direction

Most new traders only learn how to trade a rising market. And very few traders know really good strategies for trading in a falling market.

If you don't learn to trade "both" sides of the market, you are drastically limiting the number of trades you can take. And this limits the amount of money you can make.

We can show you a simple strategy that allows you to profit when stocks fall.

Overtrading

Most traders new to trading feel they have to be in the market all the time to make any real money. And they see trading opportunities when they're not even there (we’ve been there too).

We can show you simple techniques that ensure you only "pull the trigger" when you should. And how trading less can actually make you more!

Why Choose Forex Trading Over Stocks Trading

2007-10-27T16:16:00.000+01:00

Forex trading holds significant differences to stocks trading. Understanding these differences will aid a trader in deciding the right market to enter. Forex trading itself has several advantages over stocks trading and is ideal for the beginner and individual small investors.

1. Low Transaction Costs for Forex Trading.

There are no hidden fees for forex brokers as they are not paid by the traditional commission based fees. The fee paid to the forex broker is calculated directly from the trade in the form of the bid ask spread. In forex trading, the spread is the difference in how much you pay for a currency and how much you sell it for. This spread is commonly expressed in "pips" or points.

2. Forex Trading is a 24 Hour Market.

Forex trading can be done anytime of the day, the forex market is open for business twenty-four hours a day. This is considered a huge advantage for individual small investors who are just starting out forex trading in their spare time. This allows forex traders to juggle their schedule around their trading opportunities; they can schedule their forex trading when it is convenient for them.

For those of you who are night owls and prefer to trade at 1am, then forex trading is just right for you. Depending on where you stay, there are banks opposite the globe open for you to trade.

3. Fast Trade Execution and High Liquidity in Forex Trading

Trading forex means that you are trading in cash. No other form of investment has more liquidity than cash and as such, trades are executed almost instantly. There is no lag time in forex trading.

4. Having Leverage and Margin in Forex Trading

One of the significant advantages that forex traders have is the ability to trade on margin. This gives them a huge leverage in their trading and presents the potential for extraordinary profits with relative small investments. Let’s take for example; with a forex broker that allows a margin of 100:1, you can buy $100,000 in currency with only a small $1,000 deposit. A word of caution for the uninitiated, leverage can go both ways and may lead to large losses if you are not careful.

5. Forex Trading Requires Only a Small Sample to Study.

Stocks trading present thousands upon thousands of stocks to trade. Small and large companies, international companies, newly issued IPOs etc. It is highly impossible to follow them all.

Forex trading, on the other hand, presents only seven major currencies to follow so that you can devote more time to each of them. Many successful forex traders do not even trade in all seven major currencies; they just choose three or four and master them to achieve success in forex trading.

6. No Bear Markets in Forex Trading.

In forex trading, since you can trade either short or long, you will be able to make money whether the prices go up or down, that is if your predictions are accurate of course.

7. Forex Market is Not Easily Influenced.

The forex market is so amazingly huge that no one individual, bank, fund or government body can influence it for a long period of time. Forex trading is the opposite of stocks trading where one negative television appraisal of a company's stock could possibly send it into a tailspin.

Based on the above advantages, forex trading is a clear winner for the beginner and individual small investors. If you are deciding on a form of trading to enter and master, then forex trading is the choice for you.

Swing Trading

2007-10-27T16:14:00.000+01:00

Swing trading systems capitalize on the oscillations experienced in the stock prices. In this style of trading, the returns on a stock can be gained in few days or within a week or two. Traders employing this style can leverage on the short term stock movements without fearing any stiff competition from the big players in the market.

Swing trading systems are best suited for the at-home or part time traders. These traders do not have enough time for constantly monitoring the stock prices like the day traders. They can only afford to watch over the market progress once in a day or week. They have to rely on the services of broker firms, who notify them about the price changes using email alerts and newsletters.

Large trading firms or agencies cannot trade their stocks at a rapid pace, owing to the bulk size of the holdings. They therefore do not adopt swing trading systems as their mainstay. Instead they utilize the trading system occasionally to earn small amounts of profit.

Day traders also shy away from this style of trading because of their tendency of not holding onto a stock for more than a day. They trade their stocks within minutes or hours. The part time traders and the newcomers in the market mostly prefer swing-trading systems. The low risks and quick returns form an attractive combination for these traders.

Swing trading systems are best employed in a stable market. Here, the stock prices show a general pattern of variation, most of which can be predicted. Often these small variations are ignored by the day trader and the long term investors.

A swing trader on the other hand sees loads of opportunities. He/she trades on stocks having minor fluctuations. In case of a bullish or bearish market, the stock prices tend to move in a single direction- either up or down. They do not fluctuate.

Swing trading systems therefore cannot be employed in such markets. In the stable market, the best bet for the swing trader is the blue-chip stocks. These are the stocks that are actively traded in most exchanges. Stocks of big companies normally show major variations, which translate into greater profits for the swing trader.

50 Day SMA: Monitoring the Trend

2007-10-27T16:09:00.001+01:00

The price chart offers us the gift of hindsight; we can all see where the price has been so we can all see overall trend. However this gift of hindsight can be a misleading one. It is all too easy to recognise what you would have done now that you have seen where the price has ended up. If hindsight is somewhat misleading then foresight would be invaluable. Unfortunately we don’t have the gift of foresight when trading the hard right edge of the chart (if anyone does they keep it extremely quiet) so we need to find a way of identifying what the market is doing at this precise moment in time. This can give us a good indication of what is to come and an opportunity to position ourselves appropriately.

Practical Context

Let us put this article into the practical context of swing trading US equities. For a swing trader, his or her goal is to trade predominantly in the same direction as the market wide trend. This means identifying the trend on the DJIA, S&P 500 and the NASDAQ Composite and 100 depending upon which stocks you wish to trade. Once the trend has been identified a swing trading method can be applied and trade opportunities ascertained.

Why Identify the Trend in the First Place?

You have probably heard the phrase ‘the trend is your friend…. until it bends’. Let us first deal with ‘the trend is your friend’. This is based on the principle that a trend is a very powerful mover of prices. During a trend the vast majority of market participants have the same outlook and this demand (in a bull trend), or lack of it (in a bear trend), drives the market in the same direction for long periods of time. The presence of a trend attracts those participants that are currently on the sidelines and they jump in pushing the market further. The fact that the majority hold the same opinion and sentiment points so strongly in one direction means that swings with the trend generally last longer and move further than swings against. Therefore you are increasing your odds of success on every trade you take that coincides with the prevailing trend. The second part of the phrase ‘until it bends’ is just as important. Given that sentiment is pointing so strongly in one direction it becomes very important to know when this shows signs of waning or altering completely. When this happens prices become stagnant, choppy and begin to form pullbacks and ranges. When this happens the success ratio of your trades is likely to fall if you are still trend following and the direction you place your trades may need to be reviewed. In essence trading with the trend increases your odds of success while it is trending but not while it is bending.

Finding the Trend on the Hard Right Edge

So we have established that identifying a trend as it currently stands is very important, but how exactly can we do this? When trading it is important to keep things simple and the method that we are going to explain is no exception. In fact it is based on a simple moving average (SMA). Many traders tend to use two or more separate MA’s that range from short to long-term periods. These are plotted on the price chart and signals are generated as the MA’s cross each other. As the short term MA crosses above the long term MA it indicates that the trend is up and a buy signal is generated. Once the short-term MA crosses below the long-term MA the opposite signal is generated. The problem with trading a moving average cross system is that moving averages are lagging indicators. The chances are that a substantial move has already occurred by the time the moving averages cross which removes a great deal of potential from a trade. There is also the issue of the excessive false signals that are generated when the market is in consolidation mode. At times like this the MA’s are very close to each other and become entwined, crossing regularly. In order to successfully trade an MA cross during consolidation periods it is useful to add a momentum or volume indicator to the chart. If there is an MA cross with high volume/ momentum after a consolidation it can be a very nice signal but we’ll save that for another article. So, for our MA to act as an effective measure of trend health and direction we need to remove as much of the lag effect as we possibly can. To do this we will only use the one simple moving average so there will be no need to wait for a cross. But if there is no cross how do we get our signal? At this point it is useful to remember that the SMA isn’t a system, it is helping our existing swing strategy. It will not be able to give you an entry or exit point; this is down to your swing trading rules. However it will be able to help you select which potential set-ups have the greatest profit potential. We are interested in the direction that our SMA is currently pointing. This will be either up, down or flat (side ways).

What do you do When the Trend Bends?

During a trend, pullback or a consolidation of the major market indices a good swing trading method will identify longs, shorts and a host of ‘no potential entry’ trades on individual stocks. Using the SMA to determine whether the market is in up, down or flat mode helps you to decide what to do with these potential trades. For example:

Your SMA is pointing steadily north and climbing consistently.

In addition to this your swing method is indicating several potential longs and one of two shorts on the horizon. This is a good opportunity to position yourself with the trend by opening several longs and possibly one or two shorts to hedge yourself should the market suddenly take a nose dive. During every up trend there will be some stocks that lose value. This is because individual company fundamentals outweigh market sentiment.

Your SMA has been dropping steadily over the past few months indicating a strong down trend.

However in recent days the SMA has flattened out indicating a consolidation period. In addition to this your swing method has been identifying very few opportunities and signals are mixed between long and short. This is an excellent opportunity to adapt your method. If you are used to risking 2% per trade you may wish to drop that down to 0.5% and tighten up on stops and targets. This will help preserve your capital during a time of uncertainty and choppy price action in the market.

Your SMA has been trending steadily upwards for some time.

Recently you observed that a consolidation period was in effect and now your SMA has begun to point lower indicating the first leg of a potential pullback. The overall trend is still long but right now prices are taking a breather and making a natural, corrective move lower. This is not the time to trade with the long-term trend and go long. Provided your swing trading method is indicating some potential shorts it is wise to follow them. These are likely to be relatively short-term moves until you have evidence that the trend has changed direction completely. Therefore targets should be modest in order to account for this.

Every Trend is Different.

Trends are like snowflakes; from a distance they all look very similar (if not completely the same) and they share the same characteristics but when examined closely each one is slightly different. We have covered the reasons for this in ‘Technical Analysis: What You Need to Know Before You Look at a Chart’. Therefore your ability to adapt and remain flexible is vital to your trading success and you should always trade what your charts are showing you and not what you think. There may be occasions in a raging trend that your trading method does not show any good entries at all. In this instance it is common for traders to forget their rules and jump in headfirst only to be hurt by a sudden market correction. A strong trend does not guarantee potential entry points and many potential entry points do not necessarily indicate a strong trend.

Final Thoughts.

The use of a 50 period SMA is an excellent example of simply identifying current market direction. It can be valuable in helping the decision making process when it comes to trade size and the number of positions to have open at any one time. We think that this method proves that simple can be effective. Of course as a trader becomes more experienced he or she will be able to use price action alone but the SMA is a visual indicator that keeps things easy on the eye and the brain.

Which Are The Best Currencies To Trade

2007-10-27T16:06:00.000+01:00

Are certain currencies better to trade than others? The answer is yes and there are several points to consider when choosing the best currencies to trade.

Perhaps the most important consideration is the volume and liquidity of the currency traded.

The reason this is so important is so that you will be able to exit positions quickly to lock in profits and just as importantly, cut losing trades quickly and keep losses to a minimum.

The most actively traded currencies against the dollar are:

· The Euro
· British Pound
· Swiss Franc
· Japanese Yen

All traders should consider these four currencies.

If you are a long term trend follower, a day trader, make your own trades or use a currency trading system all of these offer great liquidity, good trends (for long term position holders) and short term price spikes for day traders.

While many traders simply focus on the big three currencies there are many other currencies that offer good diversification from the majors.

When trading a basket of currencies, they offer the opportunity for traders to reduce risk and increase capital gains by spreading the risk, two good currencies for this are:

The Australian and Canadian Dollar

Short term or day traders should not consider these currencies, as they are not as liquid as the big three, but they to offer profits that traders can lock into, from some great long-term trends.

Personality Traits

While anything can happen in the future, we have tried to give a brief personality of each currency and the advantages of trading it, based upon past performance:

British Pound

Thinner volume than the Euro or Japanese yen, means that short term trading should be done selectively, but this market is more suited to long term trend following. Thin volumes and low open interest can lead to exaggerated intraday moves and price spikes.

Euro

Any trader trading currencies should trade the euro. Good volume, high open interest and great long term trends, in addition good volatility is present for day traders and its recent status as a safe haven currency, means it is suitable for all traders.

Japanese Yen

The Yen offers fantastic long-term trends and offers some excellent volatility for day traders. Its slightly more erratic short-term price spikes than the euro, make it a currency that can produce more “false” signals than the euro, but generally, it is a great currency to trade. Like the euro volume and open interest is high.

Swiss Franc

In recent years the Swiss economy has become more integrated with Europe’s and the currency has a higher correlation to the euro, but it still represents a currency with great long term trends making it suitable for long term position traders. Like the British pound, volumes are not as high as the euro or yen and day trading conditions are not so good.

Australian Dollar

Quite thin volumes and large price spikes occur in Australian dollar, but it does offer good long-term trends and a diversification away from the major currencies.

Canadian Dollar

The Canadian Dollar is very similar to the Australian dollar. It offers good long-term trends and a diversification away from the major currencies; again, it is suitable for long-term trend followers and not day traders.

There is no best currency to trade, as the best currency is subjective and depends on method used to trade and investors risk tolerance etc.

We have really based our view of best currencies to trade on volume, liquidity and trending nature and we would say the following:

The Best Currency to Trade:

All traders should consider the Yen and Euro. If we had to pick just one, we would be in favor of the euro.

You should always consider the Swiss Franc and British Pound - if you are trading a basket of currencies, but you should also consider the Australian and Canadian dollar.

While traders often neglect the Australian and Canadian dollar, they offer an important advantage in terms of diversification.

Diversification enable currency traders to spread risk and this can increase overall capital gains and help reduce risk and volatility.

So, with regard to best currencies start with euro and yen and add other currencies in for diversification and reduction of risk.

How To Profit Trading Forex

2007-10-27T16:05:00.000+01:00

If anyone has ever told you it’s easy to make money in Forex they are misleading you. Successful traders have discipline, the ability to manage their money and understand the psychology of the market. Trading is not done by guessing which way the market will move, but by using either fundamental analysis or technical analysis.

To make any kind of money in this world, you need a definite plan to follow in order to get from point A to B. The same holds true when trading in Forex. Many traders are able to follow a set of rules. How often you break this set of rules will have an effect on how much money you can actually make in the Forex market. The real challenge presents itself when a trader follows their rules and the rules fail to make any money at all. Sticking to your trading rules at all costs even while losing money will eventually yield a profitable trading system.

Sticking to a set of rules is not enough to become a profitable trader. Managing your money is extremely important. Many beginning traders over-leverage themselves and eventually lose their entire account. A good money management system to follow is always look to win twice as much as you lose on each trade. This way you only have to be right 50% of the time and you can still profit. Good money management will beat out a great trading system any day.

The most challenging aspect to over come in the Forex market is going to be your psychology. Being a trader, you need to learn to accept losses. Losses are going to happen in this market and it’s impossible to avoid them. The key is to keep your losses minimal and let your profits run. Every trader will face a psychological battle with themselves whether they are in profit or losing money. It’s important to refer back to a set of rules and discipline yourself to follow these rules when you begin to question yourself on a trade. Too many times traders have lost money and begin revenge trading to make their money back. Again, too many times traders have stopped themselves out of a profitable trade too early because the market goes against them initially, only to reverse in their favor.

In order to make money in Forex, a trader needs to educate themselves and learn all there is to know about the market. In the end, the successful trader ends up using a very simple system to profit. There are many online courses that will help anyone learn how trade Forex. Even successful traders are continuously learning and educating themselves on foreign exchange market.

Forex - Lose Your Money Quickly!

2007-10-27T15:49:00.000+01:00

Day trading is a mugs game - in FOREX currency markets, traders who make day trades instead of following the long-term trends, are making a serious mistake - risk/reward is terrible by comparison.

The Internet is full of brokers and vendors encouraging traders to day trade - and offering “sure fire” day trading systems - which is no surprise, as they mostly have a vested interest - they are making more commission!

Don’t get sucked in by the hype surrounding currency day trading.

You make the big money from the big trends – it’s the big trends that yield the big profits.

There are several day trading FOREX myths, and here are the most common ones:

1. You can keep losses small

Sure you can - but on the other hand you won’t have enough winning trades to compensate for your losses, and you will end up losing in the long run - you simply won’t be in the move long enough to cover your inevitable losses.

2. Spreads and commissions impact

Commissions and slippage add up in FOREX day trading, and impact on your profits and losses even further.

Lets say, you win 50% of your trades and lose the others, (a highly respectable hit rate) - this means the profits in the day are going to need to be at least 2 to 3 times as big as your losses, to make meaningful gains - and this is extremely difficult to achieve.

A long term trend following system can make money, based upon a far lower hit rate than 50 – 50, as the profits will (if the system is soundly based) be far bigger than the losses.

3. FOREX day trading systems can and do put the odds in your favour No they don’t! - The fact that people think that they can predict market movement in such a small time frame shows a lack of knowledge.

Any currency price has a basis on the following:

Supply and Demand + Human Psychology = Market Price

The supply and demand, and human psychology equation needs to be measured over the long term - and cannot be accurately predicted in short time frames such as a day.

Why? Quite simply there is not enough information to base your trading on, in short time spans.

Currency markets are all about probability, and it can be measured more accurately by looking at the long term, as there is a greater quantity of reliable data to look at.

Currencies trend longer term, and the amount of data, and reliability of trends in this period make long term trend following the way to make money, and has several advantages:

1. You have a greater quantity of reliable data, and can calculate probability better.

2. The winning trades by their nature will be far bigger than in day trading.

3. Commission and slippage will not impact as greatly on your profits.

FOREX Day Traders don’t make as much as Long Term Trend Followers

Fact is, the odds are in favour of the long term trend followers, who target the big profits from the big moves - NOT Day traders looking for profits (that by their nature tend to be small) - as the profits are being chased in a severely limited time window, which leads to losses over time and high transaction costs.

FOREX Day trading is a mugs game - don’t fall for the hype - the reality is losses.

The Biggest Enemy To Most Forex Traders

2007-10-27T15:42:00.000+01:00

The biggest enemy to most forex traders is not the market or their trading system but the use of leverage. When using too much of it, most of times it will take your account serious down, even with one single trade.

Last week, a new forex trader showed us his account statement and asked what he was doing wrong.

After taking a look into his account statement, we did notice the following:

Start balance: $25000
End balance: $2300
Numbers of trades: 7

How did he manage his account down so fast?

Again, leverage! First couple of days, this trader could manage his account up to 27K using 1 standard lot.

After that, things went wrong. What has happened, too much confidence? Probably, yes.

This trader went trading at a serious leverage taking 15 standard lots at the time. Wow, but very wrong! Why?

First do the math.

15 standard lots for the EUR/USD pair equals $150/pip you win or lose.

His first trade went completely wrong and was closed for a 130 pip loss which equals -$19500. In fact this trader was getting a margin call from the broker to prevent him from further losses. A margin call will occur in this case when trader’s balance is falling below $7500 in equity.

As a result of this trade, only $7500 was left in his account.

Next couple of trades where traded also on max. leverage which could be used, only to win couple of pips and losing a lot of pips.

The result was an account balance worth $2.3K after 2 weeks trading FX.

Conclusion :

When trading at big leverage, only couple of pips (winning or losing) can affect your account dramatically. Regarding our trader, only 10 winning or losing pips traded at 15 standard lots equals $1500 which is 6% of his start balance.

Trading at high leverages, a trader will close the trade if he win couple of pips because of the big positive %gain on his account balance.

Going into the negative, trader will hold on the trade and hoping it will come back, most of times, this will result in a very big loss.

How to avoid this:

As a general rule, only take 1 mini lot for every $1000 in account. For a standard account, only take 1 standard lot for every $10K in account.

Please note: Most fund managers are not even allowed to trade at these leverages, for example, some of them only take 1 standard lot for every 50K in account.

Marketiva Drops E-gold Completely

2007-10-01T16:08:00.000+01:00

Important! Marketiva Drops E-gold Completely

Announcement from Marketiva:

Due to potential issues with E-Gold digital currency system, Marketiva Corporation will not accepted deposits and withdrawals by E-Gold from today to control related financial risks. In order to check payment methods available please visit Payment Options on Marketiva.

But you can still make deposits and withdrawls using payment methods below;

Wire Transfer
Wire transfer is a cost-effective way to transfer a larger amount of funds from any country in the world. To transfer funds using the wire transfer method, you need to submit our online wire transfer form and get instruction how to fill out a wire transfer form you can obtain from your bank. When we receive the funds wire-transferred from your bank we will credit your account.

E-bullion.com
E-Bullion system provides a quick and a secure way to transfer money to other consumers or businesses. To transfer funds to your account through E-Bullion, you need to specify the account number of the recipient, amount of funds you wish to transfer to your account, and the funds will be immediately available for your use.

WebMoney.com
WebMoney system provides secure money transfers between its users. To transfer funds to your account using WebMoney, you need to specify purse of the recipient and the amount of funds you wish to transfer to your account, and the funds will be immediately available for your use.

Libertyreserve.com
Liberty Reserve payment system enables quick money transfers between its users. To transfer funds to your account through Liberty Reserve, you need to specify the account number of the recipient and amount of funds you wish to transfer to your account, and the funds will be immediately available for your use.

E-dinar.com
E-Dinar digital currency system provides consumers or businesses to transfer money to each other. To transfer funds to your account through E-Dinar, you need to specify your username and password, currency units and amount of funds you wish to transfer to your account, and the funds will be immediately available for your use.

Other Internet Payment Processor

Pecunix.com
Pecunix is a gold based currency and payment solution that allows people on opposite sides of the world to make and receive payments instantly via the Internet.

Because gold has an internationally agreed value, Pecunix is a system that is perfectly suited to the specific demands of e-commerce.

Pecunix is an extraordinarily safe system to use because it is 100% underwritten by gold at all times. In other words, every currency unit in the Pecunix system is supported at all times by an equivalent amount of gold, which itself is stored in an independently monitored, internationally approved storage vault.

Interested In Picking Up Forex?

2007-10-01T14:30:00.000+01:00

The era of finding a passive program for generating high returns for a living on the Internet is ALMOST over, it seem. Whatever you’re seeing that guarantees you 2% to exorbitant and absurd returns, you can even stop looking at it and just treat them like your normal spam mails and thrash them (that’s a HYIP tip for you)

What we are actually looking at now, not exactly only passive, but lucrative legitimate businesses that we can go into, pick up something as a skill set and learn to grow your own money exponentially.

I have heard about Forex scams and Forex investments since long time ago, now let us take a look on whether how true it is and whether learning or trading Forex is the thing for you.

What is Forex?

Forex? An almost 24 hour high liquidity market that evolves around foreign currencies that we use ranging especially from the majors like US Dollar, British Pound, Japanese Yen, Canadian dollar and more. Since it allows you to leverage your money on the ratio and lots, its highly recommended for anyone who has different kind of risk appetite when it comes to trading. Let’s give an example.

Usually we will see a pair of currency denominating in the markets. An example would be GBPUSD, Whatever that is the front pair is usually the stronger pair (GBP in this case). You can always buy or sell the pair depending on whether the Pound will gain against the Dollar or fall. Should you buy the pair and if the pound gains, you make money; should it go the other direction, you lose. Alternatively, should you sell the pair and if the pound loses against the dollar, you make money (This is short lament term explanation, there’s really more to it).

Is it Easy to Pick Up Forex?

Its not really that hard at all! I started learning with a cliche of friends who was already in, and they recommended nice forex resources that are useful. Note, there are so many free resources around on forex that you can learn something from and you don’t have to pay for some forex package if you don’t mind studying on your own.

A good place to start will definitely be Babypips.com, from the way on how they present their forex curriculum.

Clear your doubts in forex forums like Babypip’s and get answers from experienced traders.

Risk Appetite and Discipline is the Question

Any forms of financial tools require immense discipline when it comes to growing your money. In this case, we are talking about learning a skill set to work on growing your money and not any kind of passive deposits where it grows your money exponentially.

You will have to decide on the risk level you can accept and go with the adjustments of your trading account before even embarking on the journey. Blowing forex demo accounts or virtual money is pretty much common, according to the Video Game mentality that tianx has brought up before.

Learning to trade monopoly money and treat it as if your own is definitely a requirement here before risking your own money. The question is, do you have the discipline to stick with your risk appetite and not risking more at any point of time?

In summary, the requirements of trading Forex:

- Good mindset
- Discipline
- Willing to Learn
- More Discipline

Forex Trading Versus HYIPs

Forex hands down, anything beats your regular in-the-mill HYIP games when you have full control of your money. The risk that you face is blowing out your own account.

Unless you’re able to prove that the investment program that is raising funds is legitimate and has a good business plan to grow your money, which is increasingly difficult to find since more and more swindlers come online just to raise money for their own pockets instead of presenting a possible opportunity to grow your money. There are still a few gems around with variable returns on investment (ie, not fixed %), but cases and chances of finding these HYIPs now are really rare.

So, Still interested in picking up Forex?

Here, you can start off with Babypips and signup Free Forex Account and you even earn $5 cash reward!

Happy Trading!

Overcoming Market Panic

2007-09-13T07:16:00.000+01:00

By Brett N. Steenbarger, Ph.D.

When I was a beginning trader, I naively believed that a 100-share trade was no different from a 10,000 share one, since both could be executed with the same entries, exits, and money management. What I failed to appreciate is that the risk of any trade or investment affects our ability to evaluate it calmly, rationally, and objectively. A head of a brokerage firm, which offered free simulated trading to new traders, once told me that 80% of the traders made money in the (very realistic) simulations, but only 20% were successful once they traded real money. The difference, he observed, was the emotional impact of having actual money on the line.

In this same vein, a reader asks the Doc:

When I was younger and fitter I played soccer. My skills were okay, but I tended to panic when I possessed the ball and heard the opposition hurtling towards me.

Unfortunately I've carried this kink in my think over into my share trading.

I love trading. I've been learning and applying in earnest for the past year and have managed to overcome several barriers. However, three times I have panicked during a broad market sell off and sold out as I watched my paper profits disappear.

The latest example was yesterday. I'd struck a purple patch recently and the paper profits were looking very healthy. However, my positions began retracing without hitting my stops and those paper profits disappeared like sand slipping through my fingers.

When the market dropped yesterday, I found this too much to handle and I sold out at just above break even!

I know I won't be a good trader until I learn a few strategies to conquer this these panic attacks.

I have a few observations and suggestions for our earnest and motivated trader. But first, let me ask you—the reader—to review what he wrote and identify what you think is the most important thing he said. One way of doing that is to figure out what you would first ask him if you were counseling him directly. Would you inquire about:

The soccer experience
His emotional reaction to sell-offs
Yesterday’s market incident
His desire to be a good trader
Or something else?

My first question to our trader would be “something else”. I would say to him, “That’s interesting; you say you’ve managed to overcome several barriers. Could you tell me about those barriers and how you overcame them?”

Why would I ask this? Simple: Whatever he did to overcome his earlier barriers may hold the kernel of a solution for his current dilemma. Those solutions reflect the genuine and unique strengths of each individual. Instead of focusing on the problem and unwittingly reinforcing the notion that he is the problem—Note how easily he jumps from the issue of handling sell-offs to the larger, personalized problem of “I know I won’t be a good trader”—it makes sense to apply his known strengths to the challenge at hand. This reinforces the important message that even very good traders face huge hurdles to success.

This approach is known as solution-focused brief therapy, and it is particularly effective as a change strategy for those of us facing normal life dilemmas. Let’s say you come to me with a trading issue and I find out that you recently worked out a marital problem. You and your spouse learned to be better listeners by not taking disagreements personally and, instead, using them to identify each other’s needs and desires. Right away, we might then take a look at how you’ve been able to listen to your spouse and how you became able to not take differences personally. Perhaps this same strategy could work when it comes to listening to the market and not allowing your self-esteem to ride the market’s ups and downs!

The working assumption of the solution-focused therapist is that somewhere, at some time, each of us has successfully dealt with situations that are similar to the present dilemma. Depressed people aren’t always depressed, so how about finding out what they’re doing when they’re feeling better about themselves? Couples with problems don’t always argue; what are they doing right when they’re getting along? And our trader is not always panicking in the market, even when markets don’t always move his way. It would be worth identifying what he’s doing during those times: the kernels of solutions are often hidden in exceptions to problem patterns.

As it happens, I faced a dilemma much like our trader’s early in my trading career. I became panicky whenever I increased my size, as even normal movements against my position felt too risky. I overcame that problem when I examined how I handled risk in other areas of my life. For example, whenever I tackled a new project as a psychologist, such as writing a journal article, I always made sure that there was a guaranteed home for the article before I had finished it. I did this by consulting with editors ahead of the writing. My logic was that, by securing my publication, I could free myself to focus on the process of writing.

Similarly with trading, I learned to take guaranteed profits when positions went my way. Once a trade moved in my favor by the amount I was willing to risk on the trade, I immediately created a trailing stop on the position that guaranteed a profit. As a result, a winning trade could never become a loser. As the position moved in my favor, the stop moved with it, locking in an increasing profit. The security of knowing, “This trade will be a winner, no matter what” provided the reassurance I needed to counteract fears of risk. In my work with high frequency traders, I’ve used the same rationale to create trailing stops on daily profit/loss, so that, once the trader is up by a certain amount of money during the day, the stop point for the trading session is moved to a level of assured profitability.

My solution may not be yours; the beauty of solution-focused counseling is that it allows each person to craft solutions based on their experience—not the abstract advice of a guru. If you can identify the occasions when you’re already a good trader, the chances are good that an analysis of those occasions will start you on the road toward solving the next market challenge.

Trader Self-Evaluation

2007-09-13T07:00:00.000+01:00

What are seven key psychological areas that you need to work on or are currently working on?

Don’t say “none” because that answer really suggests that you are totally unaware of what is going on with you.

We basically live in a society in which we are programmed to feel separate and alone from everyone else, programmed to follow the rules of the games that others invent for us to play. The net result is most people do the exact opposite of what is necessary for success. As you become aware of this, you’ll also become aware of all your patterns, beliefs, and emotions that you need to work on or clear out to become more successful as a trader.

Here are some examples that might fit some of you:

I really have a fear problem that enters into my trading. I want to make trades but I’m afraid to pull the trigger. And that fear seems to come up in other areas too; I guess I’m really afraid of failure.
I have some internal conflict when it comes to working on myself. On one hand I want to, but on the other hand, I’d rather do other things. Working on myself feels like having a tooth pulled. For some reason, I just don’t want to do it.
I don’t have any discipline. Sometimes I just decide to trade. I make almost random trades or take recommendations that I’ve been given, but just certain select ones appeal to me. And the net result is that those trades never seem to work out. (Note: this is also an incomplete answer. What is the selection process? What happens to those trades? Do you cut losses and let profits run? Are you compelled by some emotion to trade?)
My mother continually criticizes me. My mother gave me everything when I was growing up, and I’m very grateful to her. But she’s always telling me what I do wrong. In fact, it upsets me to be around her. Yet at the same time, I feel that I must support her. I need to find out why her criticism bothers me so much and what I can do about it.
I really don’t like to be alone. When I do all of things that are important to trading success, like psychological work, I have to go inside and search and that really disturbs me. Also when I try to meditate, things come up that cause me to be afraid. (And, of course, if you had this response, I’d want you to at least find out what’s trying to come up that is causing this).

Those five statements are just examples of what might come up for you. But whatever you find…look thoroughly. What’s really going on? What are the emotions you don’t want to feel? What are the hidden beliefs? What is the internal conflict where part of you wants certain things and another part wants something else?

What are your key beliefs about the markets?

It is important for you to remember that you can only trade your beliefs about the market. So what are the key beliefs that are guiding you?

To really understand what’s guiding your trading, you should list at least fifty beliefs. However, at least ten is a good starting point.

To help you get started, I’ve listed twelve of my most important beliefs about the market. Some of these are core principles that I teach everyone and some of them are just things that fit me. Also I just came up with these twelve off the top of my head. Like I mentioned, you’ll probably need to discover at least fifty beliefs to thoroughly cover the key principles that guide your trading.

Cut your losses short and let your profits run!
Risk, as it relates to how much you can lose in a trade, is much more important than risk as it related to how much volatility you can have. Both are related though.
You must understand the R-multiple distribution of your trading system and the average R it produces (expectancy) and the variability of that distribution (i.e., how volatile it is).
You must know the objectives you wish to accomplish. What would you like to accomplish and what can you tolerate in terms of drawdowns? In my case, I’d like to make 10% per month in my trading.
To achieve your objectives, you must understand and use position sizing to your advantage.
Fill your portfolio with a core position that you might adjust weekly or monthly. However, then find efficient stocks and use leverage with those stocks to achieve peak performance. (Again, remember that these are my beliefs and they might not fit you.)
When I have a large down day, thoroughly investigate what happened and how I might have caused it or made any mistakes.
Keep a trading diary on every trade.
Follow the ten tasks of trading.
When I cannot be actively trading, remove all speculative positions.
Understand the risk reward of each trade before you enter it. For example, your potential reward should be at least three times your potential risk.
Keep stop loss levels with my core positions and actively monitor the market for my speculative positions. (Again, this one is my personal preference.)

I want to caution you again that these 12 beliefs are my personal beliefs. Your beliefs might be different. However, certain beliefs are universal for good trading. These include beliefs 1- 4 (knowing your objectives), and 8-11. These are just ideas to get you going.

So be honest with yourself, and start to look at what you truly believe about the markets. You may surprise yourself.

The Flow Of The Markets

2007-09-13T06:46:00.000+01:00

Imagine yourself flowing down a river, only you don't know that you are. You do, however, notice that when you move in one direction, with the flow of the river, you move rapidly. When you move in another direction, against the river, you move slowly or not at all. In fact, when you go in that direction, you seem to put out a lot more effort just to stay in place. Your life becomes a struggle. It just seems to push you in another direction. Feeling miserable, you fight against it. But it doesn't help. You still seem to move only in one direction—with the flow of the river.

Most people prefer to struggle against the river. They try everything they can think of to go upstream. All solutions like this—going against the flow—have the same result: frustration. If you were in the river, what could you do to make your life easier? One solution would be to get out of the river. But that would be giving up. There is only one easy solution—to acknowledge or accept that the problem has nothing to do with the river. The river just is. And it moves downstream and nothing you do can change that. When you realize that the problem stems from you, then the solution becomes obvious - just relax and flow with the river.

Buy High, Sell Low?

One of the oldest adages in market psychology is "Don't be afraid to buy high and sell low." Let's analyze what that means. If the market price is high, then the market is moving up. Those who are afraid to buy because the market is too high are fighting the flow of the river. It is possible the river may change direction, but you cannot predict if it will by determining how long it has been flowing in a particular direction. It may continue in the same direction for an unspecified length of time. Then again, if the market price is down, it also indicates the direction of the flow of the river. Those who are afraid to sell, once again, are fighting the flow.

Whether you go with the flow of the market or struggle against it, the market will continue to flow, taking you with it one way or another.

Why do traders resist the flow of the markets? They do so because they play psychological games with the market. The most common game involves not being willing to give up what you perceive to be control, the need to be right, although you have no control over the market flow.

When you are struggling with the market, the struggle becomes all consuming. You don't realize that you are struggling with the market. Instead, you find yourself always looking for some solution to overcome the struggle. The struggle obscures the obvious solution: Letting go.

For example, suppose you have a tendency to be in a perpetual market bear, always expecting the market to go down. For you, every little turn in the market is evidence that the market is turning. As a result, you always go short and consequently, take a beating. You repeat the process, over and over, until the market actually turns down. With each transaction the struggle against the flow of the market intensifies for you.

Even worse is the trader who refuses to accept the inevitability of eventual loss. The market moves against each position the trader takes, but he refuses to go with the flow and refuses to accept the loss, no matter how small. It is an affront to the trader's ego. As a result, he refuses to accept it and the loss becomes larger. The bigger loss is even harder to take and the trader again refuses to accept it. The struggle continues until the loss becomes so overwhelmingly large that the trader has no choice but to take the loss.

The solution to the problem of resisting market flow is to realize that the problem has nothing to do with the market. The problem stems from you, the trader. The market is not going against you personally. The market is simply moving. Whether you go with the flow of the market or struggle against it, the market will continue to flow, taking you with it one way or another. Market flow is bigger than any individual trader. The question is whether you realize how you are creating your struggle against the market. When you push against the market, the market seems to push back. But the market is not the problem.

The trader's struggle with the market is the problem.

How To Open E-Bullion Account

2007-09-09T15:00:00.000+01:00

WHAT IS E-BULLION?

e-Bullion.com is a registered legal corporate entity of the Republic of Panama in Central America.

e-Bullion® hardware and servers are located at various locations worldwide. This allows superior built-in system redundancy and immediate backup services should any one server fail.

For ease of use and to provide the ultimate in convenience for our customers, we have engaged the services of the following:

FUNDING/WITHDRAWAL SERVICES

Primary Funding and Withdrawal Services (Market-Making) are provided by Goldfinger Coin & Bullion Inc. ("GFCB"). All national currency converted to e-Bullion® and e-Bullion® to national currency is processed by Goldfinger Coin & Bullion Inc.

RESERVE BULLION ADMINISTRATOR

Goldfinger Bullion Reserve Corporation ("GBRC") is the registered legal corporate entity located in the State of Delaware (USA) responsible for the management of bullion reserve services for e-Bullion® Company.

GBRC is under exclusive contract to provide allocated and segregated storage, acquisition and transfer of precious metals (specifically: Gold AU, Platinum PT and Silver AG) as well as perform administrative duties relating to acquisition, insurance and liquidation of the reserves backing e-Bullion® accounts.

GBRC is managed by professionals in the Precious Metals trade with over 40 years of combined experience in trading Gold, Silver, Platinum and Palladium. GBRC maintains wholly owned, or leased, Treasury grade bullion storage vaults in Los Angeles, Delaware, Zurich and Australia for the allocated storage of the bullion backing e-Bullion®.

All reserve bullion backing the e-Bullion.com system is allocated and remains the property of the e-Bullion® Company and e-Bullion® account holders.

Buy Forex Signal Using E-Gold or PayPal

2007-09-09T14:25:00.000+01:00

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Guide To The Most Popular Crosses

2007-09-04T15:58:00.000+01:00

Trading currency crosses opens a whole new side of the currency markets, as different crosses possess different qualities that can suit any style of trading. Some crosses move fast and are extremely volatile with daily ranges that may exceed over 100 pips. While other crosses move relatively slow and exhibit low volatility, which is more suited for novice traders.

Another added dimension to trading crosses is the ability to collect substantial amounts of interest (i.e. GBP/JPY, NZD/JPY and other high yielding crosses) as the positive carry created by the interest rate differentials can add to a trader's bottom line P/L. Discover the world beyond the majors where traders can expand their trading horizons.

All About the Crosses: [EUR/JPY] [EUR/CHF] [GBP/CHF] [GBP/JPY] [AUD/JPY]

All About the Crosses: EUR/JPY

AUD/JPY provides opportunities for traders of all time frames, and offers opportunities to traders who love volatility as well as range trading. Because it is held as a carry trade, it is highly sensitive to interest rate outlook changes in both Australia and Japan.

When the Australian interest rate outlook is bullish, the pair tends to trend. When the outlook turns neutral, the pair consolidates into a range. During times of range trading, traders can use slow stochastics, and real support and resistance levels (available in the Market News & Charts section) to spot their entry and exit points.

AUD/JPY is actively traded during Asian banking hours, when Japanese and Australian banks are open. Since it is most active after US equity markets are closed, the AUD/JPY is an ideal pair for people who want to trade outside of US business hours.

AUD/JPY is a great pair to trade after US equity markets are closed!
Average daily range: 80 pips
Strong trends interspersed with periods of rangebound trading
Good for: trading in all time frames
Analyst Says: This is a great pair for people who want to catch short-term moves during evening hours in the US! When the pair is ranging, it is easy to pick entry and exit levels using support and resistance.

HOT Buttons: What moves AUD/JPY?

Gold Prices Since Australia exports gold, the value of the AUD is correlated with the price of gold.

Oil Prices The Japanese economy is very dependant on imported oil, so changes in the price of oil can affect the value of the Yen.

Australian Economic data AUD/JPY is very sensitive to Australian fundamental data.

Royal Bank of Australia and Bank of Japan Monetary Policy changes Since the AUD/JPY is a hot carry trade, changes in the interest rate outlook can cause sharp movements in the pair.

Fundamentals to Watch

Australian Employment Data Measure of employment in Australia. Employment is an important gauge of the health of an economy.

Australian GDP Gross Domestic Product. A measure of Australian economic growth. Steady, stable growth levels are ideal for developed nations.

Australian CPI Consumer Price Index. A measure of inflation in Australia. Too much or too little inflation could have implications for Australian monetary policy.

Australian Retail Sales A measure of health in the retail sector of the economy.

Australian Trade Balance Australia is a net exporter, meaning that Australia exports more goods than it imports. Changes in the trade balance can affect the price of Australia's currency.

RBA Rate Decision Royal Bank of Australia's decision on the interest rate level. Interest rate changes can have implications for the desirability of the AUDJPY as a carry trade.

Japanese Inflation A measure of inflation in Japan. Problematic when it is too low as this indicates little growth in the economy.

Japanese Consumer Spending A measure of how much Japanese consumers are spending. The Japanese economy is driven primarily by its export sector, but consumer spending is an important gauge of economic activity and prosperity.

BoJ Monetary Policy Meeting When Japanese bank officials meet to determine monetary policy. Has direct implications for currency traders since they often hint at whether or not they intend to intervene to protect the Yen from becoming too expensive—hence making their exports more expensive.

Japanese Trade Balance Japanese imports vs. exports – the Japanese economy is highly dependent on exports; a drastic change in this number can have implications on the value of the Yen.

Japanese Industrial Production A measure of activity in the Japanese manufacturing sector. This acts as a gauge for the level of production and growth in the economy.

Tankan Survey A quarterly business survey assessing Japanese business conditions. The headline number shows the difference between the proportion of optimistic businesses and the proportion of pessimistic businesses. A large positive number means that optimism pervades.

Guide To The Most Popular Crosses

2007-09-04T15:48:00.000+01:00

Trading currency crosses opens a whole new side of the currency markets, as different crosses possess different qualities that can suit any style of trading. Some crosses move fast and are extremely volatile with daily ranges that may exceed over 100 pips. While other crosses move relatively slow and exhibit low volatility, which is more suited for novice traders.

Another added dimension to trading crosses is the ability to collect substantial amounts of interest (i.e. GBP/JPY, NZD/JPY and other high yielding crosses) as the positive carry created by the interest rate differentials can add to a trader's bottom line P/L. Discover the world beyond the majors where traders can expand their trading horizons.

All About the Crosses: [EUR/JPY] [EUR/CHF] [GBP/CHF] [GBP/JPY] [AUD/JPY]

All About the Crosses: GBP/JPY

Long the most popular carry trade in the market, high volatility in the GBP/JPY makes it an excellent medium-term range trade as well! Highly sensitive to interest rate outlook changes and change in the economy of the UK and Japan, the GBP/JPY can make powerful, sweeping moves.

Overall, the pair tends to trade in a range, especially when the UK interest rate outlook is neutral. Movements within these ranges are substantial. The RSI indicator and real support/resistance levels (available in the Market News & Charts section ) are two excellent ways for traders to identify entry and exit points at the tops and bottoms of these ranges.

With an average daily range of 172 pips, GBP/JPY offers plenty of opportunitties for traders of all time frames, whether in the short, medium or long-term!

GBP/JPY tends to be quiet during Japan's lunch hour: 10 PM to 11 PM EST.
Average daily range: 172 pips
Extended ranges; breakouts can be explosive
Good for: medium and long-term range trades; long term carry trades
Analyst Says: Personally my favorite pair, it trades wonderfully on technical indicators and makes dramatic (almost epic) moves! If you catch a move upward late in the game, the interest will ensure that you make up for it quickly.

HOT Buttons: What moves GBP/JPY?

Shifts in UK interest rate outlook Since this pair is saturated with carry trades, it is hypersensitive to any potential change in interest rates.

Bank of Japan intervention Hints that the BoJ will defend their currency from getting too strong will impact the price.

UK and Japanese economic data Changes in the strength of these economies relative to each other will have an effect on the price of their currency.

Fundamentals to Watch

BoE Meeting Policy statements from the Bank of England. Changes in interest rates will affect this pair since it is a carry trading pair.

UK Unemployment Amid fears of a "jobless recovery," the market has become very sensitive to this indicator, which measures new jobs created in the UK.

UK Retail Sales Measure of the level of consumer interest in the UK. Consumer spending is one way to measure robustness and growth in the economy.

UK Inflation Inflation is closely watched since it can affect Bank of England interest rate policy.

UK Housing Prices The UK interest rate outlook is closely tied to how the housing market is doing; if growth is too little or too great it can affect monetary policy.

Japanese Inflation A measure of inflation in Japan. Closely monitored because when too high or too low, it can prompt a change in the interest rate outlook of a country.

Japanese Consumer Spending A measure of how much Japanese consumers are spending. The Japanese economy is driven primarily by its export sector, but consumer spending is an important gauge of economic activity and prosperity.

BoJ Monetary Policy Meeting When Japanese bank officials meet to determine monetary policy. Has direct implications for currency traders since they often hint at whether or not they intend to intervene to protect the Yen from becoming too expensive—hence making their exports more expensive.

Japanese Trade Balance Japanese imports vs. exports – the Japanese economy is highly dependent on exports; a drastic change in this number can have implications on the value of the Yen.

Japanese Industrial Production A measure of activity in the Japanese manufacturing sector. This acts as a gauge for the level of production and growth in the economy.

Tankan Survey A quarterly business survey assessing Japanese business conditions. The headline number shows the difference between the proportion of optimistic businesses and the proportion of pessimistic businesses. A large positive number means that optimism pervades.

Guide To The Most Popular Crosses

2007-09-04T15:40:00.000+01:00

Trading currency crosses opens a whole new side of the currency markets, as different crosses possess different qualities that can suit any style of trading. Some crosses move fast and are extremely volatile with daily ranges that may exceed over 100 pips. While other crosses move relatively slow and exhibit low volatility, which is more suited for novice traders.

Another added dimension to trading crosses is the ability to collect substantial amounts of interest (i.e. GBP/JPY, NZD/JPY and other high yielding crosses) as the positive carry created by the interest rate differentials can add to a trader's bottom line P/L. Discover the world beyond the majors where traders can expand their trading horizons.

All About the Crosses: [EUR/JPY] [EUR/CHF] [GBP/CHF] [GBP/JPY] [AUD/JPY]

All About the Crosses: GBP/CHF

GBP/CHF experiences a high degree of volatility, and is perfect for traders who like to catch big moves in the market! It is the most popular carry trade in the FX market aside from GBP/JPY.

For a pair with high volatility like the GBP/CHF, Fibonacci lines are an excellent way to identify price levels to which the pair will retrace after a big move. Slow stochastics can also reveal potential reversal points – ideal places to enter and exit the market when it is not trending. This pair also tends to hesitate near its 100-day simple moving average.

The best time for active traders to trade GBP/CHF is when the US and European sessions overlap, from 8:00 AM EST to 11:00 AM EST; however, moves in this volatile pair can be substantial even intra-day.

GBP/CHF is very volatile- so set your stops wide!
Average daily range: 161 pips
Highly volatile with sweeping ranges
Good for: medium and long-term trades
Analyst Says: Personally my favorite pair, it trades wonderfully on technical indicators and makes dramatic (almost epic) moves! If you catch a move upward late in the game, the interest will ensure that you make up for it quickly.

HOT Buttons: What moves GBP/CHF?

Comments from the Bank of England Since GBP/CHF is a very popular carry trade, changes in the interest rate outlook can significantly affect the value.

UK inflation data The Bank of England tightens interest to control inflation, so the market watches inflation data to anticipate upcoming changes.

UK growth Growth in the UK is carefully monitored for any signs of a downturn or upturn. Growth can affect inflation, which in turn can affect interest rates.

Fundamentals to Watch

BoE Meeting Policy statements from the Bank of England. Changes in interest rates will affect this pair since it is a carry trading pair.

UK Unemployment Amid fears of a "jobless recovery," the market has become very sensitive to this indicator, which measures new jobs created in the UK.

UK Retail Sales Measure of the level of consumer interest in the UK. Consumer spending is one way to measure robustness and growth in the economy.

UK Inflation Inflation is closely watched since it can affect Bank of England interest rate policy.

UK Housing Prices The UK interest rate outlook is closely tied to how the housing market is doing; if growth is too little or too great it can affect monetary policy.

Swiss KoF Leading Indicators A composite of business surveys from various sectors of the economy (industry, retail and wholesale). It is combined to form a leading indicator that aims to project GDP growth approximately 8 months into the future.

Swiss CPI Consumer Price Index. A measure of inflation in Switzerland; a significant change may have implications for interest rate policy in Switzerland.

Comments from Swiss officials Watched for any indications of change in Swiss monetary policy.

Swiss GDP Gross Domestic Product. A measure of growth and productivity in the Swiss economy.

SNB Rate Decisions Any changes in the interest rate by the Swiss National Bank has implications for the pair as a carry trade.

Guide To The Most Popular Crosses

2007-09-04T14:53:00.000+01:00

Trading currency crosses opens a whole new side of the currency markets, as different crosses possess different qualities that can suit any style of trading. Some crosses move fast and are extremely volatile with daily ranges that may exceed over 100 pips. While other crosses move relatively slow and exhibit low volatility, which is more suited for novice traders.

Another added dimension to trading crosses is the ability to collect substantial amounts of interest (i.e. GBP/JPY, NZD/JPY and other high yielding crosses) as the positive carry created by the interest rate differentials can add to a trader's bottom line P/L. Discover the world beyond the majors where traders can expand their trading horizons.

All About the Crosses: [EUR/JPY] [EUR/CHF] [GBP/CHF] [GBP/JPY] [AUD/JPY]

All About the Crosses: EUR/CHF

EUR/CHF has far surpassed USD/CHF bin terms in liquidity. EUR/CHF is probably one of the safest currencies pairs to trade because its moves are so orderly. It enjoys high volume, but trades in relatively predictable ranges since the Swiss and Euro zone economies are so closely linked.

Since EUR/CHF is primarily a range bound pair, traders can use real support and resistance (available in the Market News & Charts section) to find entry and exit points for their trades. Because the pair tends to range across all time frames, using support and resistance is an effective trading strategy for short and long term traders alike!

The pair moves independently only during times of geopolitical tension or risk, when there is an inflow of capital into the Swiss franc, a safe haven currency. Breakouts like this are temporary and generally last 1-2 months.

You can find action in EUR/CHF when USD/CHF liquidity dries up (2 PM EST until London open)
Average daily range: 55 pips
Low volatility and tight daily ranges with occasional breakouts
Good for: short and medium-term range trades
Analyst Says: A solid, reliable pair, EUR/CHF is perfect for range traders and busy people who can only look in on their trades once or twice a day!

HOT Buttons: What moves EUR/CHF?

Gold Since the Swiss franc is partly tied to the value of gold, movements in gold prices will be reflected in this pair.

Swiss Economic data Swiss economic data is reflected better in EUR/CHF than in USD/CHF.

Geopolitical Event Risks When there is geopolitical tension, buying in the Swiss franc increases since it is a “safe haven” currency, thus pushing the price up.

Fundamentals to Watch

Swiss KoF Leading Indicators A composite of business surveys from various sectors of the economy (industry, retail and wholesale) that is combined to form a leading indicator that aims to project GDP growth approximately 8 months into the future.

Swiss CPI Consumer Price Index. A measure of inflation in Switzerland; a significant change may have implications for interest rate policy in Switzerland.

Comments from Swiss officials Watched for any indications of change in Swiss monetary policy.

Swiss GDP Gross Domestic Product. A measure of growth and productivity in the Swiss economy.

SNB Rate Decisions Any changes in the interest rate by the Swiss National Bank has implications for the pair as a carry trade.

European GDP Gross domestic product. A measurement of output, and more importantly, growth in an economy.

European Trade Balance A measure of how much Europe is importing versus how much it exports. Too many imports mean that the currency will get weaker because more Euros are being sold to purchase foreign goods.

European CPI Consumer price index, a measure of inflation in Europe. Inflation that is too high or too low may prompt Europe's central bank to raise or lower interest rates.

ECB rate decision Refers to the European Central Bank's monetary policy. If inflation is too high, the ECB will raise interest rates to slow borrowing and spending. If economic growth is sluggish, lowering interest rates will help boost activity. High interest rates make a currency more attractive.

Guide To The Most Popular Crosses

2007-09-04T14:19:00.000+01:00

Trading currency crosses opens a whole new side of the currency markets, as different crosses possess different qualities that can suit any style of trading. Some crosses move fast and are extremely volatile with daily ranges that may exceed over 100 pips. While other crosses move relatively slow and exhibit low volatility, which is more suited for novice traders.

Another added dimension to trading crosses is the ability to collect substantial amounts of interest (i.e. GBP/JPY, NZD/JPY and other high yielding crosses) as the positive carry created by the interest rate differentials can add to a trader's bottom line P/L. Discover the world beyond the majors where traders can expand their trading horizons.

All About the Crosses: [EUR/JPY] [EUR/CHF] [GBP/CHF] [GBP/JPY] [AUD/JPY]

All About the Crosses: EUR/JPY

Actively traded 24-hours a day, the EUR/JPY is so popular that it has been called the fifth major! The EUR/JPY mostly trades in wide ranges, providing excellent opportunities for position (medium-term) traders.

EUR/JPY generally trades in a range, but when breakouts do happen, Fibonacci levels provide a good estimate of where support/resistance will probably occur. Stochastics are excellent for spotting exit and entry points in a rangebound market. Real support and resistance figures, published daily in the Market News & Charts section, can also be used to pick entry and exit points.

EUR/JPY is an excellent gauge for the health of the Japanesse economy versus the European economy. When data comes out that changes the prevailing outlook for either country, the result is usually a dramatic movement in the pair.

EUR/JPY is more sensitive to Japanese data than European data.
Average daily range: 112 pips
Wide long-term ranges
Good for medium-term traders
Analyst Says: This is an excellent cross for position traders. The moves are significant, and advantageous entry and exit points are easy to spot using technical analysis.

HOT Buttons: What moves EUR/JPY?

European and Japanese economic data This pair often integrates fundamental economic information better than the majors!

Bank of Japan intervention The BOJ prevents the Yen from becoming too strong against the dollar. If there is intervention in the USD/JPY, it will create movement for EUR/JPY too.

Oil prices Japan is very dependent on exported oil, so a spike in oil prices can cause a marked dip in the Yen.

Talk of Japanese reserve diversification The Bank of Japan holds dollar reserves. If reserves are diversified into euros, EUR/JPY could explode as new demand for the euro drives the price up!
Fundamentals to Watch

European GDP Gross domestic product. A measurement of output, and more importantly, growth in an economy.

European trade balance A measure of how much Europe is importing versus how much it exports. Too many imports mean that the currency will get weaker because more Euros are being sold to purchase foreign goods.

European CPI Refers to the European Central Bank's monetary policy. If inflation is too high, the ECB will raise interest rates to slow borrowing and spending. If economic growth is sluggish, lowering interest rates will help boost activity. High interest rates make a currency more attractive.

ECB rate decision Refers to the European Central Bank's monetary policy. If inflation is too high, the ECB will raise interest rates to slow borrowing and spending. If economic growth is sluggish, lowering interest rates will help boost activity. High interest rates make a currency more attractive.

Japanese Inflation A measure of inflation in Japan. Closely monitored because when too high or too low, it can prompt a change in the interest rate outlook of a country.

Japanese Consumer Spending A measure of how much Japanese consumers are spending. The Japanese economy is driven primarily by its export sector, but consumer spending is an important gauge of economic activity and prosperity.

BoJ Monetary Policy Meeting When Japanese bank officials meet to determine monetary policy. Has direct implications for currency traders since they often hint at whether or not they intend to intervene to protect the Yen from becoming too expensive—hence making their exports more expensive.

Japanese Trade Balance Japanese imports vs. exports – the Japanese economy is highly dependent on exports; a drastic change in this number can have implications on the value of the Yen.

Japanese Industrial Production A measure of activity in the Japanese manufacturing sector. This acts as a gauge for the level of production and growth in the economy.

Tankan Survey A quarterly business survey gives a detailed assessment of Japanese business conditions. The headline number shows the difference between the proportion of optimistic businesses and the proportion of pessimistic businesses. A large positive number means that optimism pervades.

Focus On The Loonie

2007-09-04T14:14:00.001+01:00

While most Forex traders concentrate on the big 4 Major, which include theEUR/USD, USD/CHF, GBP/USD, and USD/JPY, the opportunities presented by other currency pairs should not be overlooked. An emerging example is the USD/CAD.

The "loonie" as it is called, is a classic case where a currency pair reflects theunderlying fundamentals of the economy of that currency. In particular, the recentincrease in prices in the crude oil and the general upward trend in commodity prices has contributed to a strengthening of the Canadian economy. In fact, the Canadian currency is known as a commodity currency, which means it is greatly correlated with commodity prices. This also means that a Forex trader needs to be aware of key commodity price action which are driving factors in determining the direction in MANY currency pairs. It is not an accident that the CRB index has had a strong year and year to date has made a new high 33 times! Commodities, as a sector, are on the rise and this helps the Canadian currency. The current fundamental situation is a classic example of how important fundamentals are to a currency direction. Let's take a closer look.

Recent economic data show that Canada is growing as a result of its role as an exporter of resources and, in fact, a net exporter of oil. Recent estimates on the tar sand oil reserve capabilities project an amount of recoverable oil greater than Saudi Arabia. As crude oil prices increase, the ability to tap these reserves in a cost-effective way will increase. It is logical therefore to see Canada as benefiting from this new era in oil prices. Canada's GDP is reflecting these fundamentals as well. The July Canadian GDP report provides a snapshot of the Canadian economy. The Canadian GDP advanced 0.2% in July following a 0.3% increase in June. The growth in the GDP was concentrated in mining, oil and gas. However, the manufacturing, wholesale trade, and utilities industries declined. It is significant that the key province of Alberta, has experienced labor shortages. In effect, Canada has two economies, a growing western economy based on resources and an older manufacturing and service oriented economy that has less potential for growth.

What does this mean for the Forex trader? The Forex trader, as a result of these fundamental conditions, will be able to see an increase in trading opportunities in the USD/CAD pair. Those traders wanting to play the strength of the Canadian economy should look for selling opportunities and signals. Realizing that prices don't just move in straight lines, there will be periods of retracement where the loonie suffers in value as sentiment for the dollar goes up, and when oil prices sell off.

The recent charts tell the story. We see the USD/CAD pair testing 13 year support, and then retracement, as short term sentiment changes. A technical analysis of the price patterns shows a significant downward channel in this pair. The retracements in this weekly chart correlate with key Fibonacci retracement levels.

This kind of pattern provides ample trading opportunity for buyers and sellers. Let's zoom down to the 4 hour chart.

FUNDAMENTAL TIP:

Keep track of key Canadian developments at the Bank of Canada site. http://www.bankofcanada.ca/en/

OCTOBER 18th- INTEREST RATE DECISION BY BANK OF CANADA

The 4 hour chart below shows a wide 250 PIP range.

The upcoming period of time is when Forex traders should carefully watch the USD/CAD pair to locate optimal places to trade. Buyers of this pair are playing a countertrend move and have a nearly 100 pip target to 1.1850. Sellers, on the other hand, have a much wider profit target to the historic levels of 1.1600 which happened this last week. This is the kind of patterns in Forex that experienced traders wait for. The strategy of letting the market come to you and not chasing the action applies in the case of the USD/CAD.

Major U.S. Economic Indicators

2007-08-26T19:55:00.000+01:00

Among the hundreds of economic reports released by the U.S. government or its agencies, some have more importance than others, as far as the trader is concerned. Following is a sampling of some reports that tend to have the most effect on financial markets, keeping in mind that this list could change as other reports gain more attention:

Gross Domestic Product (GDP) – The sum of all goods and services produced either by domestic or foreign companies. GDP indicates the pace at which a country's economy is growing (or shrinking) and is considered the broadest indicator of economic output and growth.

Industrial Production – Chain-weighted indicator measuring the change in production of the nation's factories, mines and utilities. Usually associated with capacity utilization, a measure of industrial capacity and how many available resources among factories, utilities and mines are being used. The manufacturing sector accounts for one-quarter of the U.S. economy. The capacity utilization rate provides an estimate of how much factory capacity is in use.

Purchasing Managers Index (PMI) – The Institute of Supply Management, formerly called the National Association of Purchasing Managers (NAPM), releases a monthly composite index of national manufacturing conditions, constructed from data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export orders and import orders. It is divided into manufacturing and non-manufacturing sub-indices.

Producer Price Index (PPI) – A measure of price changes in the manufacturing sector. PPI measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture and electric utility industries for their output. PPI figures most often used for economic analysis are those for finished goods, intermediate goods and crude goods.

Consumer Price Index (CPI) – A measure of the average price level paid by urban consumers (80% of population) for a fixed basket of goods and services. CPI reports price changes in more than 200 categories. It also includes various user fees and taxes directly associated with the prices of specific goods and services.

Durable Goods Orders – Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. A durable good is defined as a good that lasts an extended period of time (more than three years) during which its services are extended.

Non-farm payrolls – A feature report released on Friday of the first week of each month that indicates the number of new jobs generated by the economy during the previous month and the percentage of workers seeking employment that remain unemployed.

Employment Cost Index (ECI) – Payroll employment is a measure of the number of jobs in more than 500 industries in all states and 255 metropolitan areas. The employment estimates are based on a survey of larger businesses and counts the number of paid employees working part-time or full-time in the nation's business and government establishments.

Retail Sales – A measure of the total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. It is the timeliest indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays and trading-day differences. Retail sales include durable and nondurable merchandise sold and services and excise taxes incidental to the sale of merchandise. Excluded are sales taxes collected directly from the customer.

Housing Starts – Measures the number of residential units on which construction is begun each month. A start in construction is defined as the beginning of excavation of the foundation for the building and is comprised primarily of residential housing. Housing is very interest rate sensitive and is one of the first sectors to react to changes in interest rates. Significant reaction of start/permits to changing interest rates signals interest rates are nearing a trough or peak. To analyze, focus on the percentage change in levels from the previous month. The report is released around the middle of the following month. Existing home sales and new home sales are other significant reports that reflect how the housing market is doing, one of the most important aspects of the economy.

Fundamentals Tutorial

Moving Targets

‘Cash’ Markets and ‘Basis’ Levels

Economic Reports

Major U.S. Economic Indicators

Economic Reports

2007-08-26T19:53:00.000+01:00

Governments gather and tabulate mountains of statistics and release dozens of economic reports every day. Sometimes the task is not so much getting fundamental information but sorting out that which is relevant to prices.

Economic statistics are made public on a regularly scheduled basis and help market observers monitor the pulse of the economy. Because they are so closely followed by almost everyone in the financial markets and frequently draw a market reaction, the first thing you should know about these fundamental snippets of information is exactly when they will be released. Most brokerage firms produce economic calendars, or you can get the date information on the internet. Knowing when a key report such as U.S. employment is due to be released may help to explain some market moves.

You may not be a fundamental analyst, but you should have some sense of what the economic data is revealing about the economy. You should know which indicators measure the growth of the economy (Gross Domestic Product) and which measure the inflation rate (Producer Price Index and Consumer Price Index). You don’t have to be an economist, but after a while, you should become familiar with shifts in the major economic indicators. Some are much more important to traders than others, and that importance may change over time as the markets key on different reports at different times.

Remember the admonition earlier in this tutorial: The actual numbers often are not as important as traders’ expectations and whether the data falls within the boundaries of what the market is anticipating. A couple of other caveats should be mentioned about economic reports if you use them in your fundamental analysis:

What is mentioned in the media headlines often may not be what is really important in the data. Don’t just jump on the headline figures to make a trading decision.

Statistics are frequently revised. A current number that appears to be a big surprise may just have resulted from a previous figure that was revised, giving a misleading impression about the size of any change in the new data. Look beyond the current report to see what was done to previous reports and see how the latest figure compares historically.

Economic indicators published for other countries may not mean the same thing as a U.S. indicator does. If you are going to trade currencies, for example, you should know what is covered in economic reports from another country and how that might differ from the same type of statistic in the United States or in Germany.

Fundamentals Tutorial

Moving Targets

‘Cash’ Markets and ‘Basis’ Levels

Economic Reports

Major U.S. Economic Indicators