Foreign exchange market (shortly forex) is a certain place for trading different currencies. As it is one of the most liquid financial markets available to an average investor it offers a possibility of earning huge profits daily! And it is reasonable due to forex market apparent turnover of 3 trillion dollars a day. One might think that the list of its advantages ends here but one could not be more wrong.
As stated above forex market is tremendously liquid. It means that one can buy and sell currencies more easily and with lesser slippage contrary to stock markets, for instant. Speaking of which, forex market is much larger than the world bonds, stock, and futures markets combined together and for that reason currency prices in the forex market are relatively objective because they are based on current supply and demand and cannot be easily manipulated by greater traders like central banks.
Forex trading can be profitable in every market aspect. For example, if the market is in the upward trend, investor naturally takes long positions (buy) but there is a gain in the market fall as well if investor takes short positions (sell). In other words, constant profits are possible even if the market is in a downward trend.
In the forex market one can trade 24 hours a day! As there is no central marketplace (all trades are electronically conducted over the internet), currencies are traded throughout the time zones in the major financial centers, such as Tokyo, London, and New York. For instant, when Tokyo finishes its trading day, forex trading begins after a short time in London and after London in New York. And this trading cycle takes place for five days in a week.
Another advantage of the forex market is that there is no size limitation for trading. One can decide by him/herself how large amounts they wish to trade with. Moreover, some brokers let people trade with even $1! And that is exceptionally good opportunity for making the first steps in forex trading.
Despite the great advantages of forex one must be careful when trading currencies. It is absolutely vital to learn trading on the forex market due to its riskiness. Even though there is a saying that the safest way to trade is not to trade at all, it is not completely true if one wants to earn money with trading. Mainly there are two major ways of learning forex. The first one is to read different handbooks and get the vital knowledge from there and the second option is trading itself. It is possible to open demo accounts with virtual money and through it start trading and learning! The last option is considered as the most effective one because people tend to learn better from their own mistakes.
To sum it up, forex is risky but at the same time it has great advantages over any financial market. It is important to realize the need of learning the forex market and when it's done all doors are opened for profitable trading.
Wednesday, April 22, 2009
Saturday, April 18, 2009
7 More Reasons to Trade Forex
In my first article “Why I Trade Forex and You Should Too,” I listed six reasons why the Forex market has great potential for traders. In case In case you weren’t convinced, here’s seven more reasons I trade Forex and you should too:
* • Although volatile, currencies tend to show strong trending characteristics which lend themselves to successful short- to medium-term trading
* • Great way to make money in down markets
* • Currencies not connected to stock market. Thus they may go up while stocks go down
* • Can play both up and downtrends
* • Faster profit potential than is often possible in options
* • Currency market immune to the kind of market manipulation that can occur in the stock market
* • Overall, more accurate analytic tools available and better risk management possible
So there ya have it – Seven more reasons to trade Forex. Wanna know more? Click on the free ebook in the sidebar for a free Guide to Forex Basics. Then, open a paper account, practice for a while, and see what ya think.
* • Although volatile, currencies tend to show strong trending characteristics which lend themselves to successful short- to medium-term trading
* • Great way to make money in down markets
* • Currencies not connected to stock market. Thus they may go up while stocks go down
* • Can play both up and downtrends
* • Faster profit potential than is often possible in options
* • Currency market immune to the kind of market manipulation that can occur in the stock market
* • Overall, more accurate analytic tools available and better risk management possible
So there ya have it – Seven more reasons to trade Forex. Wanna know more? Click on the free ebook in the sidebar for a free Guide to Forex Basics. Then, open a paper account, practice for a while, and see what ya think.
Forex Trading Psychology
Why do 90% of forex traders lose money then? Well, the answer to that is poor risk management which leads to poor mind set and vice versa. Numerous books have been written about trading psychology and many consultants exist. Psychology is an extremely important point to focus on when trading.
Books on trading often talk about the mental problems encountered and Mark Douglas’ book Trading In The Zone. But the problem with some of these books is that they often tell you don’t think like this, or sit there and take losses during whipsaw periods. If a person was brought up thinking one thing it will be very difficult, even with coaching, to change the person’s inherent reactions. And on top of this, trading is extremely counter intuitive. It basically goes against what most people consider common sense. A phrase that a lot of trading experts use is “do the opposite�. A good analogy would be the advice given “when approached by a bear do not run.� It is the right thing to do and most people are taught to do it, however I can imagine there would be a very strong impulse to run if one has an encounter.
In the next section we will go through a common list of problems, describe how they occur, proceed and follow one another and then provide practical approaches that do not involve mind manipulation to avoid these problems. You should read books on this topic and seek counselling with experts about trader’s psychology. However, since it’s a long process to change your cognitive mindset we will discuss somepractical ways to avoid the issues so you can trade meanwhile.
The Vicious CycleThe major part of this book instructs the readers on what to do. This section will talk about what not to do so that the reader can see the key psychological elements of trading and what patterns not to get caught on.The vicious cycle begins with a new trader studying the market for a bit, learning technical and fundamental analysis and getting excited about it since it does indeed work a lot of the time and in hindsight even looks easy. The trader may realize that all that is needed is an edge that will be right 51% of the time on trades that win and lose the same amount of money. That cannot be very hard he may think, some patterns out there are effective 60%-80% of the time. Finally the trader will see the edge that they like and begin to trade it live.Most of the time because of enthusiasm and an unbiased eye to the market the trader will have success in the beginning. Initial perception of the market is undistorted by negative emotions because there have been no losing trades. The trader will begin to experience a so-called state of euphoria and will feel like they are on top of the world, financial problems of the future are solved and they will start to act arrogant. The big mistake most will make is to start increasing position size. The attitude may be “I will not lose so I should increase my profits by taking bigger positions.� At some point the trader will take a devastating loss. There is no question about it because no pattern or edge works 100% of the time. The pain will be immense and now the trader is going to try to win back the money that was lost on the trade to get back to even so he can feel like the trade never happened. The primary motive for this usually will not be for profit but for peace of mind. He will not be as selective as before on finding the right trade and may enter on an even bigger position size to wipe out the loss. Now if the trader wins he will get even more confident and eventually lose on a second trade. After he loses big twice in a row he may consider making and even bigger trade to catch up. He will be so eager to wipe out the feeling of the negative trades and get his ego back that he will consider taking an even bigger position size. The trader will rationalize every wrong move made to make it right, justify his actions and never take responsibility for his losses. A classic example of this is poker players complaining about bad bets and others playing dumb. If surrounded by bad players a great poker player should adjust his style and take into account that the player will play bad cards, not cry about it after they lose. The losses and negative emotions will start piling on like a snow ball until the trader realizes that they have to stop. They will probably be down a substantial portion of the account, if not flat busted by this point. Now the trader will be more than humbled. He will feel like he can do no right in the market and will start saying that you can not make money trading or that his platform is rigged, someone manipulated his stop, the spread is too high and on and on. The trader may either walk away from trading all together or do an over extensive amount of education. Both approaches are bad since, even if he reads up a lot and comes back, the trader’s mindset will be drastically distorted by negative emotions.
Practical Ways to Deal with Negative EmotionsYou may have noticed that the above description contained many of the key negative emotions that come into play when trading. These include: Greed, Fear, Hope, Rationalization, and Cockiness. In this section we discuss how we can decrease these negative emotions during trading by taking practical steps.
GreedGreed occurs on many occasions during trading. Some examples and practical solutions include:1) When you are in a trade and you hold it for too long when you know you should exit.Solutions:i) Have set exit points that you back-tested your system with that you will follow.ii) Take partial profit on positions. Possibly place this in your systems rules.
2) When you start trading too big because of positive performancei) Determine the set maximum % of account that you will lose on any trade and do not exceed it under any circumstances.ii) Count the amount of losing trades that your system had when back-tested and understand that they may come in the future.
ConfidenceCockiness is the feeling of euphoria that you have after making numerous successful trades. This feeling can cause recklessness if not handled properly.1) You may start trading too big for your own good:i) Determine the set maximum % of account that you will lose on any trade and do not exceed it under any circumstances.ii) Count the amount of losing trades that your system had when back-tested and understand that they may come in the future.
2) You may make ineffective decisions because you have a feeling of not being able to lose:i) Have a checklist of everything that needs to be taken into account before entering a trade.ii) Have a checklist and a specific procedure of how your system needs to be followed, when it needs to be reevaluated, and exact entry and exit instructions.iii) Always increase the amount of work you do after you are successful.
Fear1) Fear may arise after you had a few unsuccessful trades and are now afraid to make a trade:i) Have a specific cutoff point before you start trading your system. Know the maximum drawdown you are willing to sustain and the maximum amount of losing trades you can handle prior to beginning to trade a system.ii) Don’t stop trading after a poor performance if your financial situation allows.iii) Start trading small to decrease the emotional level and concentrate on market and system analysis.iv) Create a profile of your trading psychology and determine what type of systems you will be trading. Can you handle a big drawdown? What type of profits are you looking for?
2) Fear may cause traders to get out of trades early and leave profit on the table.i) Have set exit points that you back-tested your system with that you will follow.ii) Take partial profit on positions. Possibly place this in your systems rules.iii) Don’t sit and watch every tick of the trade just follow your signals.
Hope and RationalizationHope and rationalization may cause traders to try to justify their decisions, blame others for their performance, and stay in trades that they should be out of because of hope that the market will move in their direction. This is a dangerous emotion and can turn trading into a gambling problem. It is very important to keep in mind that this emotion exists and make a good effort to control it.1) Hope and Rationalization may cause traders to enter trades that they should not be in because of hope that they will catch a break and make money.i) Control position size so that you are not trading to make or lose money but are trading to make the right decision.ii) Have set entry and exit points that you back-tested your system with that you will follow.iii) Take partial profit on positions. Possibly place this in your systems rules.
2) Hope and rationalization may cause traders to stay in trades longer than they should because of hope that the trade will go their way.i) Control position size so that you are not trading to make or lose money but are trading to make the right decision.ii) Have set exit points that you back-tested your system with that you will follow.iii) Take partial profit on positions. Possibly place this in your systems rules.
Books on trading often talk about the mental problems encountered and Mark Douglas’ book Trading In The Zone. But the problem with some of these books is that they often tell you don’t think like this, or sit there and take losses during whipsaw periods. If a person was brought up thinking one thing it will be very difficult, even with coaching, to change the person’s inherent reactions. And on top of this, trading is extremely counter intuitive. It basically goes against what most people consider common sense. A phrase that a lot of trading experts use is “do the opposite�. A good analogy would be the advice given “when approached by a bear do not run.� It is the right thing to do and most people are taught to do it, however I can imagine there would be a very strong impulse to run if one has an encounter.
In the next section we will go through a common list of problems, describe how they occur, proceed and follow one another and then provide practical approaches that do not involve mind manipulation to avoid these problems. You should read books on this topic and seek counselling with experts about trader’s psychology. However, since it’s a long process to change your cognitive mindset we will discuss somepractical ways to avoid the issues so you can trade meanwhile.
The Vicious CycleThe major part of this book instructs the readers on what to do. This section will talk about what not to do so that the reader can see the key psychological elements of trading and what patterns not to get caught on.The vicious cycle begins with a new trader studying the market for a bit, learning technical and fundamental analysis and getting excited about it since it does indeed work a lot of the time and in hindsight even looks easy. The trader may realize that all that is needed is an edge that will be right 51% of the time on trades that win and lose the same amount of money. That cannot be very hard he may think, some patterns out there are effective 60%-80% of the time. Finally the trader will see the edge that they like and begin to trade it live.Most of the time because of enthusiasm and an unbiased eye to the market the trader will have success in the beginning. Initial perception of the market is undistorted by negative emotions because there have been no losing trades. The trader will begin to experience a so-called state of euphoria and will feel like they are on top of the world, financial problems of the future are solved and they will start to act arrogant. The big mistake most will make is to start increasing position size. The attitude may be “I will not lose so I should increase my profits by taking bigger positions.� At some point the trader will take a devastating loss. There is no question about it because no pattern or edge works 100% of the time. The pain will be immense and now the trader is going to try to win back the money that was lost on the trade to get back to even so he can feel like the trade never happened. The primary motive for this usually will not be for profit but for peace of mind. He will not be as selective as before on finding the right trade and may enter on an even bigger position size to wipe out the loss. Now if the trader wins he will get even more confident and eventually lose on a second trade. After he loses big twice in a row he may consider making and even bigger trade to catch up. He will be so eager to wipe out the feeling of the negative trades and get his ego back that he will consider taking an even bigger position size. The trader will rationalize every wrong move made to make it right, justify his actions and never take responsibility for his losses. A classic example of this is poker players complaining about bad bets and others playing dumb. If surrounded by bad players a great poker player should adjust his style and take into account that the player will play bad cards, not cry about it after they lose. The losses and negative emotions will start piling on like a snow ball until the trader realizes that they have to stop. They will probably be down a substantial portion of the account, if not flat busted by this point. Now the trader will be more than humbled. He will feel like he can do no right in the market and will start saying that you can not make money trading or that his platform is rigged, someone manipulated his stop, the spread is too high and on and on. The trader may either walk away from trading all together or do an over extensive amount of education. Both approaches are bad since, even if he reads up a lot and comes back, the trader’s mindset will be drastically distorted by negative emotions.
Practical Ways to Deal with Negative EmotionsYou may have noticed that the above description contained many of the key negative emotions that come into play when trading. These include: Greed, Fear, Hope, Rationalization, and Cockiness. In this section we discuss how we can decrease these negative emotions during trading by taking practical steps.
GreedGreed occurs on many occasions during trading. Some examples and practical solutions include:1) When you are in a trade and you hold it for too long when you know you should exit.Solutions:i) Have set exit points that you back-tested your system with that you will follow.ii) Take partial profit on positions. Possibly place this in your systems rules.
2) When you start trading too big because of positive performancei) Determine the set maximum % of account that you will lose on any trade and do not exceed it under any circumstances.ii) Count the amount of losing trades that your system had when back-tested and understand that they may come in the future.
ConfidenceCockiness is the feeling of euphoria that you have after making numerous successful trades. This feeling can cause recklessness if not handled properly.1) You may start trading too big for your own good:i) Determine the set maximum % of account that you will lose on any trade and do not exceed it under any circumstances.ii) Count the amount of losing trades that your system had when back-tested and understand that they may come in the future.
2) You may make ineffective decisions because you have a feeling of not being able to lose:i) Have a checklist of everything that needs to be taken into account before entering a trade.ii) Have a checklist and a specific procedure of how your system needs to be followed, when it needs to be reevaluated, and exact entry and exit instructions.iii) Always increase the amount of work you do after you are successful.
Fear1) Fear may arise after you had a few unsuccessful trades and are now afraid to make a trade:i) Have a specific cutoff point before you start trading your system. Know the maximum drawdown you are willing to sustain and the maximum amount of losing trades you can handle prior to beginning to trade a system.ii) Don’t stop trading after a poor performance if your financial situation allows.iii) Start trading small to decrease the emotional level and concentrate on market and system analysis.iv) Create a profile of your trading psychology and determine what type of systems you will be trading. Can you handle a big drawdown? What type of profits are you looking for?
2) Fear may cause traders to get out of trades early and leave profit on the table.i) Have set exit points that you back-tested your system with that you will follow.ii) Take partial profit on positions. Possibly place this in your systems rules.iii) Don’t sit and watch every tick of the trade just follow your signals.
Hope and RationalizationHope and rationalization may cause traders to try to justify their decisions, blame others for their performance, and stay in trades that they should be out of because of hope that the market will move in their direction. This is a dangerous emotion and can turn trading into a gambling problem. It is very important to keep in mind that this emotion exists and make a good effort to control it.1) Hope and Rationalization may cause traders to enter trades that they should not be in because of hope that they will catch a break and make money.i) Control position size so that you are not trading to make or lose money but are trading to make the right decision.ii) Have set entry and exit points that you back-tested your system with that you will follow.iii) Take partial profit on positions. Possibly place this in your systems rules.
2) Hope and rationalization may cause traders to stay in trades longer than they should because of hope that the trade will go their way.i) Control position size so that you are not trading to make or lose money but are trading to make the right decision.ii) Have set exit points that you back-tested your system with that you will follow.iii) Take partial profit on positions. Possibly place this in your systems rules.
Sunday, April 12, 2009
European Stocks
One of the most remarkable things about the Elliott Wave Principle is its ability to forecast the market's path. Not just the final destination, but how it will get there.
That's an important distinction. It's one thing to forecast a market gain or loss -- conventional analysts on TV and in print media do it all day long. It's quite another to outline the actual twists and turns the market will take to achieve your price targets; a rare forecaster can do that.
Prices never move in a straight line. You may be expecting your investment (or trade) to double, but on its way there, it'll have enough intermediate peaks and valleys to cause plenty of heartburn. Knowing the market's projected path greatly reduces the stress of your investment decisions. While others are guessing whether to stay in or get out, with Elliott wave you know the answer long before they do. While others are jumping ship, you know to stay calm and stay in. When they stay in, you know to get out.
What makes this possible is that the Wave Principle looks for specific patterns in market charts. Once you've identified what part of the pattern you are in, you can have a reasonable expectation for what comes next. This diagram shows the idealized Elliott wave path in a bull market. (Flip it upside down for a bear market.)
Why am I writing about this today? I was re-reading the April issue20 of our European Financial Forecast (EFF) and on page 5 saw a remarkable chart. It's a long-term chart of the UK Financial Times All-Share Index going back to the 1960s -- with the label "You Are Here" on it and a diagram of its projected path. In the words of the EFF21 editor Brian Whitmer,
Asian Markets: A Phoenix Rising
There's a strong historical precedent for Asian markets to climb when the U.S. falls. Consider the 1966-1982 bear market in the U.S., which saw the DJIA drop 14%. During that same period, Japan's Nikkei 225 gained 389% and India's stock market gained 233% while several smaller markets made even larger gains. This chart tells the tale
How can this be? The APFF reminds us that "The only factors you need to consider when forecasting the direction of an index are its own long-term and short-term wave patterns." In other words, while the U.S. is currently riding a long-term bearish wave, several Asian markets are beginning powerful bullish waves.
Remember that stock market indexes reflect the valuation of a society's productive enterprise, its social mood. The U.S. and other nations are mired in deep bear markets while others soar because "individual indexes follow their own wave paths because each society generates its own mood internally."
The bearish social mood and "global financial crisis" may slow down the U.S. and other world markets, yet there's always a phoenix rising somewhere; and in fact, the April Asian-Pacific Financial Forecast outlines the case for four new bull markets in Asia. These markets have "completed only three waves down from their respective highs, which makes them strong candidates to rally back to at least near their all-time highs – if not beyond."
Consider the evidence for yourself in the just-published, April 3 Asian-Pacific Financial Forecast. You'll also receive the March 23 APFF Interim report that describes the urgent investment opportunities in Indian stocks
EUR/USD: Don't Get Distracted by News
U.S. Dollar Generally Weaker As Equities Remain Modestly Higher
Thu Apr 9, 2009 07:34am (CEP News) - The U.S. dollar is weaker against most major currencies on Thursday as global equity markets continue to move higher. The greenback's limpness can also be attributed to the aftermath of a larger than expected Japanese stimulus package, and some potentially upbeat results on the stress tests for U.S. banks.
It all sounded good: Stocks were up, the dollar was lower, and central banks were in control. And yet shortly after, the USD took the upper hand and by lunch time on Thursday strongly gained on the euro, pushing the EUR/USD 200 pips lower. (That's despite the fact that the DJIA was up 200 points Thursday morning -- aren't U.S. stocks and the dollar supposed to diverge?)
How can that be? As we've said on these pages before, what matters to the trend is not the news -- it's how forex traders react to it. News can be a catalyst, but the direction of the move is always going to be determined by how traders collectively feel about it. If they are bullish, they'll use the news -- any news -- as an excuse to buy, and vice versa if they are bearish.
That's why the real key to the forex market is knowing the collective mental state of its participants. And that's exactly what Elliott wave analysis tells you. On Wednesday evening, Elliott Wave International's intensive Currency Specialty Service13 posted this forecast:
EURUSD
Update for: Thursday
Posted On: Wed, 09 Apr 2009 04:00:34 EDT
[Topping, lower] While not by much, EUR$ traded lower for a third straight day. Add to that the rebound we did see is, so far, in a corrective three waves to resistance in the 1.3300 area. There is no reason to alter the larger bearish outlook.
The Forex Educational Roadmap
The roadmap to successful forex trading is, in many ways, a parallel road to success in life in general. To balance one’s life also requires a balance of often overlooked skills. These skills include mental, physical and spiritual balance and renewal. In forex trading seminar, after seminar, the so-called “soft-skills” gets mentioned only after slugging it out for 8 hours hearing discussion around ascending triangles and FOMC monetary policy. In the end, one can overcome the technical and fundamental challenges greeting new traders with time, patience and dedication. Unless one also commits to self-mastery over the mental side of trading and develops strategies to gain mental control, long-term success will be unlikely no matter what financial vehicle you chose to trade.
To Roadmap to Successful Forex Training is broken down into 4 sequential destinations:
1. Education
Education is the key to understanding the forex market and mastery of the necessary skills to become successful. There is no substitute for hard work and dedication here and no short cuts as well. The best site by far is FX Trainer25. I have found no other organziation that can so effectively grow and continue to provide igh quality training as you grow as a forex trader. Their community of traders are unmatched. You get to meet traders from all levels and gain from their experiences. That is an asset no trader should be without!
2. Personal Self-Mastery
Personal mastery is bringing balance into all aspects of your life to achieve the necessary harmony which will heighten your education and bring a razor sharp mental focus to all your trading activities. Personal mastery will go a long way in developing your FX trading psychology and philosophy. Two books are must reads in this category; Think and Grow Rich and The Power of Full Engagement!
3. Forex Systems and Tools
One could be the best ditch digger, but if you only had a spoon to dig with your ditch would not be nearly as successful as another one with a back-hoe. Developing a comprehensive trading plan and philosophy will be a critical step on this portion of your journey.
4. Live Forex Trading
Demo accounts and simulated trading is good, but nothing is a substitute for live trading. It is only through live trading that you can accurately assess your skill and balance in mastery of your previous roadmap destinations. Remember, there is no such thing as failure, there is only feedback! This is a personal preference. Open as manay demo accounts as possible and go witht the broker you feel most comfortable with. Just make sure the broker is regulated by CFTC and NFA.
5. Continuous Education and Training
In forex trading, as in many aspects of life, many individuals quite before achieving their desired level of success. It has been said that, like a flower, if an individual stops growing and learning, the dying process has begun. Having a true thirst for knowledge is a guarantee formula for success.
To Roadmap to Successful Forex Training is broken down into 4 sequential destinations:
1. Education
Education is the key to understanding the forex market and mastery of the necessary skills to become successful. There is no substitute for hard work and dedication here and no short cuts as well. The best site by far is FX Trainer25. I have found no other organziation that can so effectively grow and continue to provide igh quality training as you grow as a forex trader. Their community of traders are unmatched. You get to meet traders from all levels and gain from their experiences. That is an asset no trader should be without!
2. Personal Self-Mastery
Personal mastery is bringing balance into all aspects of your life to achieve the necessary harmony which will heighten your education and bring a razor sharp mental focus to all your trading activities. Personal mastery will go a long way in developing your FX trading psychology and philosophy. Two books are must reads in this category; Think and Grow Rich and The Power of Full Engagement!
3. Forex Systems and Tools
One could be the best ditch digger, but if you only had a spoon to dig with your ditch would not be nearly as successful as another one with a back-hoe. Developing a comprehensive trading plan and philosophy will be a critical step on this portion of your journey.
4. Live Forex Trading
Demo accounts and simulated trading is good, but nothing is a substitute for live trading. It is only through live trading that you can accurately assess your skill and balance in mastery of your previous roadmap destinations. Remember, there is no such thing as failure, there is only feedback! This is a personal preference. Open as manay demo accounts as possible and go witht the broker you feel most comfortable with. Just make sure the broker is regulated by CFTC and NFA.
5. Continuous Education and Training
In forex trading, as in many aspects of life, many individuals quite before achieving their desired level of success. It has been said that, like a flower, if an individual stops growing and learning, the dying process has begun. Having a true thirst for knowledge is a guarantee formula for success.
Forex Trading as a Business
We all have our personality quirks. My quirk is collecting quotes. I have quotes in my trading log, in my success notebook (I will discuss this in another post) and even in my golf bag. One of my favorite quotes is “Act as if!” Act as if means that while you are in training to be a successful currency trader (my definition is one that makes consistent profits no matter the lots size being traded) you have to act as if you were already a successful forex trader.
So I began following and speaking with successful retail spot currency traders to gleam some insight into the characteristics of successful forex trading. Unlike those dentist commercial were 9 out of 10 recommends a product, 100% of all the forex traders I have spoken with said treating their forex trading as if it were a business was a key component of there success formula. In addition to merely treating their activities as a business, that their trading was done through a legal business structure. Businesses have plans, projections, profits target and capital spending; and so should your trading. All the FX traders I emulate trade through corporate entities, and now so do I!. If that is the path to success, then I am going down that road also and TRADE as if I were a business with all the planning aspects and legal framework associated with that action.
The tax code in the United States is generally established to collect tax from the employees of businesses and not the business themselves. Case in point, we as individual tax payers pay our taxes THEN expenses with after tax dollars. The business pays for expenses and THEN is taxed on the remaining amount (if any). Forex trading through a business entity makes sense from a tax standpoint; after all it is my business!
I am not a legal or tax professional, but I discovered that of the many structures to becoming a legal entity that there was one that fit the bill of turning my forex trading into a business perfectly; the Limited Liability Company, as a matter of fact I trade with my broker and educational company, FX TRAINER23, as an LLC.
There are essentially 4 main business frameworks:
Sole Proprietorship
Partnerships (General and Limited)
Corporations (C- and S-Corporation)
Limited Liability Companies (LLC)
LLCs offer many advantages including:
# Flexibility in structuring
# Pass-through taxation
# May distribute profits and loses in any manner that is desired without regard to each member’s ownership in the business
# Different classes of ownership and may own 80% or more of another corporation
# Avoids most legal complexities and rules found in corporations
# Participation in management affairs does not result in loss of liability protection as it does in partnerships
# No double taxation unless members opt for corporate taxation rules
No lists of advantages are complete without a corresponding list of disadvantages including:
# LLC are relatively new so there is very little legal precedence available.
# Tax liabilities pass to members even if there is no distribution.
# Different states have different laws regarding the continuity of LLCs.
All in all, there is never any substitution for seeking professional legal and tax advice in forming a business entity. There are many factors associated with developing a sound business framework such as; location, estate planning and other assets, but one thing is for sure, forming a business plan and trading currencies as a business is another directional sign on the road to successful forex trading.
So I began following and speaking with successful retail spot currency traders to gleam some insight into the characteristics of successful forex trading. Unlike those dentist commercial were 9 out of 10 recommends a product, 100% of all the forex traders I have spoken with said treating their forex trading as if it were a business was a key component of there success formula. In addition to merely treating their activities as a business, that their trading was done through a legal business structure. Businesses have plans, projections, profits target and capital spending; and so should your trading. All the FX traders I emulate trade through corporate entities, and now so do I!. If that is the path to success, then I am going down that road also and TRADE as if I were a business with all the planning aspects and legal framework associated with that action.
The tax code in the United States is generally established to collect tax from the employees of businesses and not the business themselves. Case in point, we as individual tax payers pay our taxes THEN expenses with after tax dollars. The business pays for expenses and THEN is taxed on the remaining amount (if any). Forex trading through a business entity makes sense from a tax standpoint; after all it is my business!
I am not a legal or tax professional, but I discovered that of the many structures to becoming a legal entity that there was one that fit the bill of turning my forex trading into a business perfectly; the Limited Liability Company, as a matter of fact I trade with my broker and educational company, FX TRAINER23, as an LLC.
There are essentially 4 main business frameworks:
Sole Proprietorship
Partnerships (General and Limited)
Corporations (C- and S-Corporation)
Limited Liability Companies (LLC)
LLCs offer many advantages including:
# Flexibility in structuring
# Pass-through taxation
# May distribute profits and loses in any manner that is desired without regard to each member’s ownership in the business
# Different classes of ownership and may own 80% or more of another corporation
# Avoids most legal complexities and rules found in corporations
# Participation in management affairs does not result in loss of liability protection as it does in partnerships
# No double taxation unless members opt for corporate taxation rules
No lists of advantages are complete without a corresponding list of disadvantages including:
# LLC are relatively new so there is very little legal precedence available.
# Tax liabilities pass to members even if there is no distribution.
# Different states have different laws regarding the continuity of LLCs.
All in all, there is never any substitution for seeking professional legal and tax advice in forming a business entity. There are many factors associated with developing a sound business framework such as; location, estate planning and other assets, but one thing is for sure, forming a business plan and trading currencies as a business is another directional sign on the road to successful forex trading.
Do You Have What It Takes To Become A Successful Forex Trader?
Forex trading, or any trading for that matter, is an occupation that requires experience and the accumulation of proficiency not unlike any other highly skilled profession. Whether you are a leading executive at a major publically traded company, a professional golfer or trading from your kitchen table, there are 5 key ingredients that one must possess in order to become successful.
1. You must be Passionate about what you do.
As Forex traders we all face one unique set of circumstances that does not exist in any other profession. We get rewarded for when we succeed and equally punished when we don't! Could you image a corporate worker one quarter receiving a significant accomplishment bonus and the next quarter actually getting money taken from their paycheck for missing performance targets?
Not on your life! We do as Forex traders and that is why passion for what you do will carry you through the tough times that are part of your trading business. Asked yourself why you trade currencies and would you still do it if Forex were not potentially lucrative? Your answers will be quite revealing. You've got to feel your passion for trading!
2. You have to Apply Yourself and work hard at it.
I talk to so many people that enter into Forex trading with the aspiration of getting rich quick. Without putting the time and energy into really getting good at trading I see them jump from strategy to strategy looking for the goose that will lay the golden egg and eventually quitting while blaming everything else, except the true cause. I got news for you - you are the goose and your Forex education is the golden egg.
The magic has always resided with the magician and not some strategy. Work hard at trading and the rewards will eventually come your way. Remember what Tiger Woods said, "Funny, the harder I work the luckier I get." Apply yourself as a trader and it will be no accident when your account begins to blossom.
3. You must Focus to really get good at what you do.
Now here is the hurdle most Forex traders struggle to get over. You have the passion and you are applying yourself to your trade, now focus and really get good at just at what you are doing. Be the expert to the experts at just that one thing. Become the master of a strategy or risk management methodologies. Really focus on getting good at it. Stop jumping around or getting pulled from the last "latest and greatest" into the next "latest and greatest" and focus on one aspect of Forex trading and know it inside out. Know it strengths and weakness. Set your sights on becoming expert on just one aspect of trading and watch it spill over in all other aspects for your currency trading. This is the time to fail forward fast, use every setback as a learning opportunity that will propel you 3-steps ahead!
4. You must Push Yourself beyond the point everyone else might have quite.
In Forex Trading this is simple. Assume there is someone on the other side of your trade that is pushing themselves and sharpening their edge. To be successful you must you must do the same thing. Now is the time to examine your mental edge. Do you know the single most critical factor in any currency trade? It is you, the trader!
Sharpening you mental edge is the most difficult aspect of trading, but also the most rewarding. Start with your Forex education and gain the self-awareness necessary to maximize your strengths and suppress your weaknesses. Any expert will tell you that trading is 80% mental. It's time to sharpen your trading to the razor's edge and you do this through Forex education. A constant and never ending process that will become the cornerstone of your Forex experience.
5. You must, without wavering, be Determined and Persist to your objective.
You will fail. I can state that emphatically. However, you will not be defeated unless you allow your failures to control your trading. It is the old adage; failure is not falling of your horse, failure is refusing to get back on. Your success depends on your ability to dismiss the criticism, rejection, self-doubt and pressures associated with Forex trading. Defining what is a winning trade, losing trade and bad trade will go a long way into developing you as a successful trader. Without the determination and persistence in all aspects of your trading life, obstacle will definitely appear closer and larger than they actually are.
Take a moment and assess yourself and your trading. Do you have the key elements to succeed? Which areas are presents development opportunities? When conducting a self-evaluation it is critical to be totally upfront and honest with yourself. After all, you will only be dishonest with yourself. One of the most interesting observations you can make is that all key success factors are interwoven. One factor supports the other. This is why your Forex education is a continuous journey of forex strategy, money management and self-mastery. Set these factors as your Forex education goals and take your currency trading to new heights.
1. You must be Passionate about what you do.
As Forex traders we all face one unique set of circumstances that does not exist in any other profession. We get rewarded for when we succeed and equally punished when we don't! Could you image a corporate worker one quarter receiving a significant accomplishment bonus and the next quarter actually getting money taken from their paycheck for missing performance targets?
Not on your life! We do as Forex traders and that is why passion for what you do will carry you through the tough times that are part of your trading business. Asked yourself why you trade currencies and would you still do it if Forex were not potentially lucrative? Your answers will be quite revealing. You've got to feel your passion for trading!
2. You have to Apply Yourself and work hard at it.
I talk to so many people that enter into Forex trading with the aspiration of getting rich quick. Without putting the time and energy into really getting good at trading I see them jump from strategy to strategy looking for the goose that will lay the golden egg and eventually quitting while blaming everything else, except the true cause. I got news for you - you are the goose and your Forex education is the golden egg.
The magic has always resided with the magician and not some strategy. Work hard at trading and the rewards will eventually come your way. Remember what Tiger Woods said, "Funny, the harder I work the luckier I get." Apply yourself as a trader and it will be no accident when your account begins to blossom.
3. You must Focus to really get good at what you do.
Now here is the hurdle most Forex traders struggle to get over. You have the passion and you are applying yourself to your trade, now focus and really get good at just at what you are doing. Be the expert to the experts at just that one thing. Become the master of a strategy or risk management methodologies. Really focus on getting good at it. Stop jumping around or getting pulled from the last "latest and greatest" into the next "latest and greatest" and focus on one aspect of Forex trading and know it inside out. Know it strengths and weakness. Set your sights on becoming expert on just one aspect of trading and watch it spill over in all other aspects for your currency trading. This is the time to fail forward fast, use every setback as a learning opportunity that will propel you 3-steps ahead!
4. You must Push Yourself beyond the point everyone else might have quite.
In Forex Trading this is simple. Assume there is someone on the other side of your trade that is pushing themselves and sharpening their edge. To be successful you must you must do the same thing. Now is the time to examine your mental edge. Do you know the single most critical factor in any currency trade? It is you, the trader!
Sharpening you mental edge is the most difficult aspect of trading, but also the most rewarding. Start with your Forex education and gain the self-awareness necessary to maximize your strengths and suppress your weaknesses. Any expert will tell you that trading is 80% mental. It's time to sharpen your trading to the razor's edge and you do this through Forex education. A constant and never ending process that will become the cornerstone of your Forex experience.
5. You must, without wavering, be Determined and Persist to your objective.
You will fail. I can state that emphatically. However, you will not be defeated unless you allow your failures to control your trading. It is the old adage; failure is not falling of your horse, failure is refusing to get back on. Your success depends on your ability to dismiss the criticism, rejection, self-doubt and pressures associated with Forex trading. Defining what is a winning trade, losing trade and bad trade will go a long way into developing you as a successful trader. Without the determination and persistence in all aspects of your trading life, obstacle will definitely appear closer and larger than they actually are.
Take a moment and assess yourself and your trading. Do you have the key elements to succeed? Which areas are presents development opportunities? When conducting a self-evaluation it is critical to be totally upfront and honest with yourself. After all, you will only be dishonest with yourself. One of the most interesting observations you can make is that all key success factors are interwoven. One factor supports the other. This is why your Forex education is a continuous journey of forex strategy, money management and self-mastery. Set these factors as your Forex education goals and take your currency trading to new heights.
Online Currency Trading - Making A Profit By Trading the Forex Market
Can anyone really make a business out of trading the Forex market? Or, shall we say, can one make enough of a profit to make a living trading the Forex market? Many would not attempt to answer that question, and realistically, there is no real easy answer. Some people do, in fact, make a living as traders, not only in Forex, but in the stock market, futures market, or other types of investment instrument markets. However, it’s important to understand that making a profit in the Forex market, or any other kind of liquid financial market, takes time and effort. It’s not something that you can suddenly make a decision to do and expect to become successful without Forex education, mentoring and most important your personal desire, dedication and perseverance.
Making a profit in Forex trading requires knowledge of which economic and geo-political news events moves a currency pair and its seasonal fluctuations. You need to know what affects the spot price and how to adjust your trades accordingly. In other words, you need to understand the fundamentals, as well as the technicals.
In order to learn the important things about the Forex market, you need to have experience; it is not something you can learn from simply reading a Forex dummies book, surf currency trading sites on the web and following the global currency trends. The key to making a profit trading the Forex market or any trading in any other market for that matter, is knowing when and how to trade, and equally important, when not to trade, and that comes not from reading the newspapers or a book but from gaining the experience. Trading with a mentor can accelerate the process.
If you are limited on the amount of funds in your Forex trading account, you might want to consider utilizing a mini account or super mini account and compound that account to profit. The Forex trading process, once learned, will have typical deviations built into the methodology. Adjusting to the nuances of currency trading will become inherent and you will learn to process a $5,000 account applying the same principals as you would manage a $500,000 account. The power is truly in the Forex trading process.
Choosing currency pairs that are less volatile (read more liquid) gives you a better chance of making a profit during your early trading transactions. The experience will allow you to gain insight into how the Forex market works and teach you the best way to conduct Forex trading business. Once you gain the experience that you need, you are in a better position to consider some of the more volatile currency pairs since you will be better educated with the knowledge of how certain events affect the price of most currencies.
The most important thing is to remember that not to rush into anything. Do all of your research first so that you will make the right choices in your swing trading activities. Choose a Forex education course and mentor that specializes in swing trading. In the end, you are only in competition with yourself, so there is no need to think you need to make a decision right away on any currency pairs you need to trade. Your goal should be first getting comfortable with the strategic concepts. Second, master money management techniques and finally, learn to trade from your personality.
Making a profit in Forex trading requires knowledge of which economic and geo-political news events moves a currency pair and its seasonal fluctuations. You need to know what affects the spot price and how to adjust your trades accordingly. In other words, you need to understand the fundamentals, as well as the technicals.
In order to learn the important things about the Forex market, you need to have experience; it is not something you can learn from simply reading a Forex dummies book, surf currency trading sites on the web and following the global currency trends. The key to making a profit trading the Forex market or any trading in any other market for that matter, is knowing when and how to trade, and equally important, when not to trade, and that comes not from reading the newspapers or a book but from gaining the experience. Trading with a mentor can accelerate the process.
If you are limited on the amount of funds in your Forex trading account, you might want to consider utilizing a mini account or super mini account and compound that account to profit. The Forex trading process, once learned, will have typical deviations built into the methodology. Adjusting to the nuances of currency trading will become inherent and you will learn to process a $5,000 account applying the same principals as you would manage a $500,000 account. The power is truly in the Forex trading process.
Choosing currency pairs that are less volatile (read more liquid) gives you a better chance of making a profit during your early trading transactions. The experience will allow you to gain insight into how the Forex market works and teach you the best way to conduct Forex trading business. Once you gain the experience that you need, you are in a better position to consider some of the more volatile currency pairs since you will be better educated with the knowledge of how certain events affect the price of most currencies.
The most important thing is to remember that not to rush into anything. Do all of your research first so that you will make the right choices in your swing trading activities. Choose a Forex education course and mentor that specializes in swing trading. In the end, you are only in competition with yourself, so there is no need to think you need to make a decision right away on any currency pairs you need to trade. Your goal should be first getting comfortable with the strategic concepts. Second, master money management techniques and finally, learn to trade from your personality.
Forex Trading Education Tip - Mind Power for Success
Are you ready for the ultimate tip in succeeding at the game of Forex? Are you ready for the “Holy Grail” of Forex Trading Education? Here it is! It’s you!
You are the ultimate trading machine and your mind dictates whether you will find lasting success or join the vast numbers of traders who could not master themselves as Forex traders. Trading Forex online is a performance-orientated game. This is why so many draw analogies to professional athletes. Athletes have coaches and mentors. Athletes study their craft with fervor. Athletes train their mind so that peak performance at the most critical times are assured. Like athletes, Forex traders must play the game to win.
Here are 3 simple tips for keeping your mind over your money and driving success to your Forex trading activities:
1. Believe
Mastering your mind and removing obstacles starts in believing that you can actually do it. Everyone has the capability to become a successful Forex trader, if they first believe they can be. Most mentors would tell you to trade with no emotion. We are emotional beings and cannot exclude emotions from the equation. We can leverage our emotions to drive favorable Forex trading characteristics into our trading routines through our belief in ourselves and develop strategies for monitoring our less desirable characteristics.
Write down 5 powerful affirmations about yourself and repeat it first thing in the morning and right before going to bed in the evening. This will change your life forever!
2. Act As If
You must hone your skills as a trader through Forex education, trading, more Forex education and more trading. Trading is a process. Those searching for the path to quick riches are often the first to loss their trading accounts. You must practice to compete against the best traders in the world, because often they are the ones on the other side of your trade. You must put this undying belief into practice, by acting and trading as if you are already a great trader.
When you face a moment of indecision ask yourself; “If I was a great Forex trader what would I do?” You will be surprised at the maturity of the answer that will follow.
3. There Is No Failure Only Feedback
You must have an unending commitment to excellence. You must also recognize that in the business of Forex trading losing trades are a part of doing business. Bad trades, they will put you out of business! Take the time to plan your trades and trade according to your plan.
Journal the details of your currency trade, from execution to physical energy to emotional reactions in both winning and losing moments, to gain insight into your trading persona. You personal trading journal will light to path to success.
Remember, awareness allow us to acknowledge a challenge and develop strategies to turn our personality into profit.
You must believe in yourself and your judgment if you expect to succeed at this game. The keys to success in the Forex market lie within each and every trader. Knowing the strategy is not enough, you must also know yourself and believe in yourself. If you don’t, the Forex market is an expensive place to find out. Mind power training, coupled with Forex education and money management will provide your source for success.
You are the ultimate trading machine and your mind dictates whether you will find lasting success or join the vast numbers of traders who could not master themselves as Forex traders. Trading Forex online is a performance-orientated game. This is why so many draw analogies to professional athletes. Athletes have coaches and mentors. Athletes study their craft with fervor. Athletes train their mind so that peak performance at the most critical times are assured. Like athletes, Forex traders must play the game to win.
Here are 3 simple tips for keeping your mind over your money and driving success to your Forex trading activities:
1. Believe
Mastering your mind and removing obstacles starts in believing that you can actually do it. Everyone has the capability to become a successful Forex trader, if they first believe they can be. Most mentors would tell you to trade with no emotion. We are emotional beings and cannot exclude emotions from the equation. We can leverage our emotions to drive favorable Forex trading characteristics into our trading routines through our belief in ourselves and develop strategies for monitoring our less desirable characteristics.
Write down 5 powerful affirmations about yourself and repeat it first thing in the morning and right before going to bed in the evening. This will change your life forever!
2. Act As If
You must hone your skills as a trader through Forex education, trading, more Forex education and more trading. Trading is a process. Those searching for the path to quick riches are often the first to loss their trading accounts. You must practice to compete against the best traders in the world, because often they are the ones on the other side of your trade. You must put this undying belief into practice, by acting and trading as if you are already a great trader.
When you face a moment of indecision ask yourself; “If I was a great Forex trader what would I do?” You will be surprised at the maturity of the answer that will follow.
3. There Is No Failure Only Feedback
You must have an unending commitment to excellence. You must also recognize that in the business of Forex trading losing trades are a part of doing business. Bad trades, they will put you out of business! Take the time to plan your trades and trade according to your plan.
Journal the details of your currency trade, from execution to physical energy to emotional reactions in both winning and losing moments, to gain insight into your trading persona. You personal trading journal will light to path to success.
Remember, awareness allow us to acknowledge a challenge and develop strategies to turn our personality into profit.
You must believe in yourself and your judgment if you expect to succeed at this game. The keys to success in the Forex market lie within each and every trader. Knowing the strategy is not enough, you must also know yourself and believe in yourself. If you don’t, the Forex market is an expensive place to find out. Mind power training, coupled with Forex education and money management will provide your source for success.
Learn Forex Trading - Which Forex Strategy Is Right For Me?
Learning to trade Forex is not an easy task, but by no means is it difficult either. Learning to trade Forex does not require a great intellect or a college degree. Doctors have failed as traders and construction workers have become millionaires. Trading is all about discipline, determination and perseverance.
The key is to understand who you are as a trader and trade to your strength. Leveraging your strength can be magnified by deploying the appropriate Forex trading strategy.
There are hundreds, if not thousands of Forex trading strategies out there. Logic will tell us that there is a currency strategy out there which leverages our strengths. It is not a one-size-fits-all world. To immediately cut to the chase and take away the magic, it all comes down to two basic Forex strategies; trend-following and range-bound. All Forex trading strategies use a variety of indicators and combinations, MACD, Moving Averages, Stochastic, Chart Patterns, Candlesticks, Pivot Points, Fibonacci ratios, Elliott Wave analysis, Bollinger Bands and the list goes on and on. Let’s take away the magic again. These indicators and studies are merely measuring support and resistance and trend in the Forex market.
But which strategy really works? This is the age old question?
First, we must understand who we are as traders. Does our personality fit the pip sniper mode or does our disposition attract us more towards swing trading. Finding your trading personality will mean studying and experiencing the different time frames and associated Forex trading strategies. Over time you will notice a higher level of success and/or comfort trading one style over others. Pay attention! The market is telling you where your skill is more capable of extract consistent profits for the market. This is why journaling is so important to your Forex trading routine.
Secondly, if you are using someone else’s strategy, a most of us are, deploy this strategy without change until you fully and completely understand all aspect of the strategy through back-testing and actual experience. As I was told; dance the dance you have been taught until you learn a dance of your own!
Don’t fall into the trap of jumping from strategy to strategy or combining different strategies when the one you are using doesn’t yield immediate success. This is only a recipe for disaster. Take the time to really understand the trading strategy. Study the components individually so a deeper understanding of the strategic mechanisms is mastered.
Above all, know when and when not to deploy this strategy. You will not find consistent success implementing a trend following system in a range-bound currency market.
So what’s the right strategy for you? It is simple, the one that works. It doesn’t matter if it is complicated or simple, trend-following or range-bound, uses Fibonacci studies, pivot points or both. If you understand the components, internalize its use, and drive consistent profits into your trading account, then you have your Forex trading strategy.
It doesn’t matter what the experts say, your account balance is the ultimate judge and jury for your Forex trading strategy.
The key is to understand who you are as a trader and trade to your strength. Leveraging your strength can be magnified by deploying the appropriate Forex trading strategy.
There are hundreds, if not thousands of Forex trading strategies out there. Logic will tell us that there is a currency strategy out there which leverages our strengths. It is not a one-size-fits-all world. To immediately cut to the chase and take away the magic, it all comes down to two basic Forex strategies; trend-following and range-bound. All Forex trading strategies use a variety of indicators and combinations, MACD, Moving Averages, Stochastic, Chart Patterns, Candlesticks, Pivot Points, Fibonacci ratios, Elliott Wave analysis, Bollinger Bands and the list goes on and on. Let’s take away the magic again. These indicators and studies are merely measuring support and resistance and trend in the Forex market.
But which strategy really works? This is the age old question?
First, we must understand who we are as traders. Does our personality fit the pip sniper mode or does our disposition attract us more towards swing trading. Finding your trading personality will mean studying and experiencing the different time frames and associated Forex trading strategies. Over time you will notice a higher level of success and/or comfort trading one style over others. Pay attention! The market is telling you where your skill is more capable of extract consistent profits for the market. This is why journaling is so important to your Forex trading routine.
Secondly, if you are using someone else’s strategy, a most of us are, deploy this strategy without change until you fully and completely understand all aspect of the strategy through back-testing and actual experience. As I was told; dance the dance you have been taught until you learn a dance of your own!
Don’t fall into the trap of jumping from strategy to strategy or combining different strategies when the one you are using doesn’t yield immediate success. This is only a recipe for disaster. Take the time to really understand the trading strategy. Study the components individually so a deeper understanding of the strategic mechanisms is mastered.
Above all, know when and when not to deploy this strategy. You will not find consistent success implementing a trend following system in a range-bound currency market.
So what’s the right strategy for you? It is simple, the one that works. It doesn’t matter if it is complicated or simple, trend-following or range-bound, uses Fibonacci studies, pivot points or both. If you understand the components, internalize its use, and drive consistent profits into your trading account, then you have your Forex trading strategy.
It doesn’t matter what the experts say, your account balance is the ultimate judge and jury for your Forex trading strategy.
Learn Forex Trading - 3 Simple Tips for Setting the Stage
You know what they say; trading Forex is 80% mental and that
only 5% of all currency traders make money consistently. If
this is so, then we are all in an extremely competitive
environment. This means that when we trade, we must always
be on our "A" game, our peak performance period.
Here are 3 simple tips to prepare you each day for the
competitive playing field that is the Forex market:
1. REST
Before we turn on the computer and look at the currency
pairs, it is imperative that we have had adequate rest.
Proper sleep allows us to recharge our batteries and extend
our period of maximum focus. Sometimes we all wake up and
things are just not in balance. Issues outside of our
trading environment or our physical conditions, or lack
thereof, are ruling the roost. This is when all successful
online Forex traders pull out their Ultimate Weapon of
Successful Currency Trading.
We simple don't trade the Forex!
Use this time to review, read or play golf! It's all about
probabilities, and the probability of success in Forex
trading multiplies when we are at our best.
2. PLAN and REVIEW
Forex Trading is a business and should be treated
accordingly. In the business of trading currencies we all
should have a plan, a business trading plan. This plan
should consist of 2 components: A Mission Statement which
should explain your personal "Why?" Why are you trading
Forex? Your mission statement must be compelling enough to
overcome the inevitable challenges all online Forex traders
face.
The second component is your Forex trading plan. The
component of the overall plan covers the execution of Forex
trading. Your Forex plan should cover the what, how, when
and risk components of your currency trading. Before each
Forex trading session review your entire plan and trade it!
Make this a habit. Another trick of successful Forex
traders is after losing some focus during the trading
period, take a break and before returning refocus by
reviewing your plan.
3. RELAX
You must sharpen your mental saw before each and every Forex
trading session. There are a variety of methods for helping
you relax and focus. You can listen to your favorite music,
meditate in a quiet place, recite positive wealth building
affirmations, or listening to a Confidence for Traders CD.
When it comes to developing a mental edge, play every ace.
The correct method is the one that works for you!
After all of your preparation you still find yourself not on
top of your game you can once again consider the ultimate
weapon of great online Forex traders.
Walk away! You do not have to trade the Forex today.
Preparing for your trading session is all about placing
yourself is the best position possible to take advantage of
the myriad of opportunities that makes the Forex market
great. When you incorporate mental preparations into your
daily Forex trading ritual you have set the stage for
handling whatever the currency market can throw at you with
confidence, determination and clarity. Remember, above all
the hype, strategies and methodologies lies common sense.
Use it and you too will find success, because it's always
the little things that make all the difference in the world!
only 5% of all currency traders make money consistently. If
this is so, then we are all in an extremely competitive
environment. This means that when we trade, we must always
be on our "A" game, our peak performance period.
Here are 3 simple tips to prepare you each day for the
competitive playing field that is the Forex market:
1. REST
Before we turn on the computer and look at the currency
pairs, it is imperative that we have had adequate rest.
Proper sleep allows us to recharge our batteries and extend
our period of maximum focus. Sometimes we all wake up and
things are just not in balance. Issues outside of our
trading environment or our physical conditions, or lack
thereof, are ruling the roost. This is when all successful
online Forex traders pull out their Ultimate Weapon of
Successful Currency Trading.
We simple don't trade the Forex!
Use this time to review, read or play golf! It's all about
probabilities, and the probability of success in Forex
trading multiplies when we are at our best.
2. PLAN and REVIEW
Forex Trading is a business and should be treated
accordingly. In the business of trading currencies we all
should have a plan, a business trading plan. This plan
should consist of 2 components: A Mission Statement which
should explain your personal "Why?" Why are you trading
Forex? Your mission statement must be compelling enough to
overcome the inevitable challenges all online Forex traders
face.
The second component is your Forex trading plan. The
component of the overall plan covers the execution of Forex
trading. Your Forex plan should cover the what, how, when
and risk components of your currency trading. Before each
Forex trading session review your entire plan and trade it!
Make this a habit. Another trick of successful Forex
traders is after losing some focus during the trading
period, take a break and before returning refocus by
reviewing your plan.
3. RELAX
You must sharpen your mental saw before each and every Forex
trading session. There are a variety of methods for helping
you relax and focus. You can listen to your favorite music,
meditate in a quiet place, recite positive wealth building
affirmations, or listening to a Confidence for Traders CD.
When it comes to developing a mental edge, play every ace.
The correct method is the one that works for you!
After all of your preparation you still find yourself not on
top of your game you can once again consider the ultimate
weapon of great online Forex traders.
Walk away! You do not have to trade the Forex today.
Preparing for your trading session is all about placing
yourself is the best position possible to take advantage of
the myriad of opportunities that makes the Forex market
great. When you incorporate mental preparations into your
daily Forex trading ritual you have set the stage for
handling whatever the currency market can throw at you with
confidence, determination and clarity. Remember, above all
the hype, strategies and methodologies lies common sense.
Use it and you too will find success, because it's always
the little things that make all the difference in the world!
Forex Education Is The Best Teacher
If you want to become successful as a Forex trader, you have to educate yourself continually on the markets and trends. Your motto should read constant and never ending improvement through continuous Forex education. It isn't enough to simply read Forex books, or the business section of a newspaper for currency price fluctuations. Learning to trade Forex is a participation activity. Most business newspapers and TV business channels only report the spot price, the price of a currency pair at an exact and static moment in time. You have to dig a little deeper in order to fully understand the reasons behind the current prices and the factors that are contributing to the increase or decrease in value of the currency. Even more important, you need to know the factors that may have a potential effect on the price of currency pair and upcoming scheduled economic news releases before you pull the trigger on that trade.
If you think that only economic issues influence the price of currencies, you are quite uneducated in the workings of the Forex market. Although everything is tied to an economic cycle with its unique data points, some things that are not directly monetary in nature may have an effect on the price of currencies. For example, global geo-political events can have volatile actions and any and all currencies. On May 29, 2005, voters in France rejected in a binding referendum the European Constitution. This event occurred on a Sunday in France and the Asian Forex trading session saw a massive devaluation of the Euro against all the major currencies. Another example is the impact the war in Iraq had on the U.S. Dollar/Swiss Franc currency pair at the beginning of the conflict. Forex Education is the currency trader's guide.
Other non-economic factors that may affect the currency price include sentiments, country specific laws that impact capital flows (Sarbanes -Oxley), natural disasters and the cyclical processes in other financial markets, especially for those commodity currencies. Traders have a tendency to be fickle, and they do not wish to invest in a country's whose currency does not offer value (think interest rates) and stability.
A successful Forex trader must be fully aware of all of the different factors that may affect spot price, so that if issues arise that will likely affect price on a downturn or upturn; they will now which side of the trade to take for profit. Some incidents may turn a technical Forex trader into a fundamental trader because the trader knows the economic factors that will cause volatility in the price of the currency, and wants to profit from a subsequent movement. For instance, cutting of interest rates by a country's Central Bank. The decision could have been a surprise, which would result in volatility, but the announcement was a scheduled event. Being informed prevents you from taking the loss that changes in the market create and furthermore, being able to profit from such events.
Forex education is the key to bringing it all together. It is the foundation for which your Forex trading business will stand. If built with knowledge it can withstand the events that test all Forex traders.
If you think that only economic issues influence the price of currencies, you are quite uneducated in the workings of the Forex market. Although everything is tied to an economic cycle with its unique data points, some things that are not directly monetary in nature may have an effect on the price of currencies. For example, global geo-political events can have volatile actions and any and all currencies. On May 29, 2005, voters in France rejected in a binding referendum the European Constitution. This event occurred on a Sunday in France and the Asian Forex trading session saw a massive devaluation of the Euro against all the major currencies. Another example is the impact the war in Iraq had on the U.S. Dollar/Swiss Franc currency pair at the beginning of the conflict. Forex Education is the currency trader's guide.
Other non-economic factors that may affect the currency price include sentiments, country specific laws that impact capital flows (Sarbanes -Oxley), natural disasters and the cyclical processes in other financial markets, especially for those commodity currencies. Traders have a tendency to be fickle, and they do not wish to invest in a country's whose currency does not offer value (think interest rates) and stability.
A successful Forex trader must be fully aware of all of the different factors that may affect spot price, so that if issues arise that will likely affect price on a downturn or upturn; they will now which side of the trade to take for profit. Some incidents may turn a technical Forex trader into a fundamental trader because the trader knows the economic factors that will cause volatility in the price of the currency, and wants to profit from a subsequent movement. For instance, cutting of interest rates by a country's Central Bank. The decision could have been a surprise, which would result in volatility, but the announcement was a scheduled event. Being informed prevents you from taking the loss that changes in the market create and furthermore, being able to profit from such events.
Forex education is the key to bringing it all together. It is the foundation for which your Forex trading business will stand. If built with knowledge it can withstand the events that test all Forex traders.
Forex Education Tips - 5 Steps to Successful Forex Trading
Close to 95% of all Forex traders will lose money. We're not just talking about novices, either. Whether you trade Forex for a living, as a hobby or just for fun, odds are against your success. That's a simply astonishing fact. However, the remaining 5% of Forex traders somehow manage to break even and there are those lucky few that actually make money in the currency market – consistently!
Like the TV show says … “How’d they do that, anyway?”
That's the million dollar questions, isn’t it? Countless books, seminars and expos have been hosted to answer this very question. That sad fact is that thousands of books have been written and countless seminars and interviews have been conducted in an attempt to answer the magic questions. The reality of the situation is that there is no magic formula; no one single Holy Grail of Forex trading.
So what do the successful traders do that the rest of us have simple not comprehended. They have mastered a process of winning where they combine and customize several factor to produce consistent results. They have mastered the Process of Trading.
The Process of Trading is:
Strategy > Money Management > Self-Mastery
Here are some simple Forex Education tips to help you master the process of forex trading:
Success Tip #1 – You’ve Got To Have a Plan
You must have a written business plan that will detail all aspects of your trading. When are you going to trade, how much to risk, strategies for entries and exits are just o name a few. To become a consistent (profitable) Forex trader you have to plan your trade sand trade your plan.
Simplicity rules! Don’t make this plan too complicated. One sheet of paper for you mission statement and another for your trading plan should suffice. Anything more is probably too complicated.
Success Tip #2 – Focus on Your Personal Psychology
Knowing yourself will allow you to master the discipline necessary to execute high quality trades with solid money management techniques. Lack of discipline is fatal in Forex trading. Go on a personal journey to identify you attitudes towards risk and money. Get intimate with your strengths and weaknesses as a trader and build in to your trading plan strategies to minimize those weaknesses and maximize your strengths.
Different personalities lend to different trading styles. Get familiar with all the different styles and over time you will begin to gravitate towards one particular style. Don’t fight the urge like I did. I insisted I was a day trader, but had only limited results. I found my winning percentages were much higher when I entered swing trades. Guess what’s my bread and butter strategy now!
Success Tip #3 – Be Realistic About Your Expectations
This is a hard one, I know! I am on the internet every day and the amount of advertising is staggering. Brokers are offering free education (fox in the hen house if you ask me), forums of all different trading styles and points of view. Gurus pushing their system as “the one” that will make you the big bucks. How do you get through all that noise?
Let me tell you loud and clear right now – everyone is right and everyone is wrong. You have to make a personal commitment to become a successful trader, find a trading style that works for you and expect a slow and steady approach to wealth building through Forex.
What works for me may not work for you. Expect to go through an exploratory period where you are learning and at the same time exploring yourself as a trader. Keep an open mind and don’t pay attention to all the noise out there.
Success Tip #4 – Exercise Patience
Rome was not built in a day and neither will your trading account. In fact, I tell all of my students that while they are studying to become successful Forex traders they should not look solely at their account balance as an indication of success or failure.
By tracking and increasing your percentage of high quality trades you execute is a far better barometer of your progress than your account balance. Cause and effect rule here. Over time when you increase your probabilities through the execution of high quality trades your account balance will respond accordingly.
Keep the focus on the process and with time your results will blow your mind.
Success Tip #5 - Money Management Is Top Priority
I would rather have a shaky strategy and excellent money management techniques than the other way around. This topic warrants its own blog post to do it justice. Limited your exposure (read “risk”) allows for you to stay in the game and allow the laws of probability to work.
Let’s take a casino for example. They need gamblers to frequent their slot machines to make money. Why? They have a game that has a greater than 50% chance of making money for the house. The more people that play the slots, the greater the casino’s profits.
The casino controls risk by payout tables (always favoring the house!) and increases their probabilities by keeping gamblers at the slot machines (read “free drinks”). As a trader you must limit your risk by committing only 1% - 3% of available capital to a single trade. When you execute enough trades with a high probability strategy you too can clean up like the casinos – but only by staying in the game long term.
In conclusion, Forex trading is not easy. It’s hard work and will test the limits of your patience and perseverance. If anyone tells you otherwise .., buyers beware! It can be a very rewarding and profitable venture if done correctly. In the end it is a profession that requires a learning curve and practical experience, no different than an airline pilot or engineer. Understanding how to approach and learn this game will allow you to reap all the benefits advertised. It is your Forex Education that you will master the Process of Forex Trading.
Like the TV show says … “How’d they do that, anyway?”
That's the million dollar questions, isn’t it? Countless books, seminars and expos have been hosted to answer this very question. That sad fact is that thousands of books have been written and countless seminars and interviews have been conducted in an attempt to answer the magic questions. The reality of the situation is that there is no magic formula; no one single Holy Grail of Forex trading.
So what do the successful traders do that the rest of us have simple not comprehended. They have mastered a process of winning where they combine and customize several factor to produce consistent results. They have mastered the Process of Trading.
The Process of Trading is:
Strategy > Money Management > Self-Mastery
Here are some simple Forex Education tips to help you master the process of forex trading:
Success Tip #1 – You’ve Got To Have a Plan
You must have a written business plan that will detail all aspects of your trading. When are you going to trade, how much to risk, strategies for entries and exits are just o name a few. To become a consistent (profitable) Forex trader you have to plan your trade sand trade your plan.
Simplicity rules! Don’t make this plan too complicated. One sheet of paper for you mission statement and another for your trading plan should suffice. Anything more is probably too complicated.
Success Tip #2 – Focus on Your Personal Psychology
Knowing yourself will allow you to master the discipline necessary to execute high quality trades with solid money management techniques. Lack of discipline is fatal in Forex trading. Go on a personal journey to identify you attitudes towards risk and money. Get intimate with your strengths and weaknesses as a trader and build in to your trading plan strategies to minimize those weaknesses and maximize your strengths.
Different personalities lend to different trading styles. Get familiar with all the different styles and over time you will begin to gravitate towards one particular style. Don’t fight the urge like I did. I insisted I was a day trader, but had only limited results. I found my winning percentages were much higher when I entered swing trades. Guess what’s my bread and butter strategy now!
Success Tip #3 – Be Realistic About Your Expectations
This is a hard one, I know! I am on the internet every day and the amount of advertising is staggering. Brokers are offering free education (fox in the hen house if you ask me), forums of all different trading styles and points of view. Gurus pushing their system as “the one” that will make you the big bucks. How do you get through all that noise?
Let me tell you loud and clear right now – everyone is right and everyone is wrong. You have to make a personal commitment to become a successful trader, find a trading style that works for you and expect a slow and steady approach to wealth building through Forex.
What works for me may not work for you. Expect to go through an exploratory period where you are learning and at the same time exploring yourself as a trader. Keep an open mind and don’t pay attention to all the noise out there.
Success Tip #4 – Exercise Patience
Rome was not built in a day and neither will your trading account. In fact, I tell all of my students that while they are studying to become successful Forex traders they should not look solely at their account balance as an indication of success or failure.
By tracking and increasing your percentage of high quality trades you execute is a far better barometer of your progress than your account balance. Cause and effect rule here. Over time when you increase your probabilities through the execution of high quality trades your account balance will respond accordingly.
Keep the focus on the process and with time your results will blow your mind.
Success Tip #5 - Money Management Is Top Priority
I would rather have a shaky strategy and excellent money management techniques than the other way around. This topic warrants its own blog post to do it justice. Limited your exposure (read “risk”) allows for you to stay in the game and allow the laws of probability to work.
Let’s take a casino for example. They need gamblers to frequent their slot machines to make money. Why? They have a game that has a greater than 50% chance of making money for the house. The more people that play the slots, the greater the casino’s profits.
The casino controls risk by payout tables (always favoring the house!) and increases their probabilities by keeping gamblers at the slot machines (read “free drinks”). As a trader you must limit your risk by committing only 1% - 3% of available capital to a single trade. When you execute enough trades with a high probability strategy you too can clean up like the casinos – but only by staying in the game long term.
In conclusion, Forex trading is not easy. It’s hard work and will test the limits of your patience and perseverance. If anyone tells you otherwise .., buyers beware! It can be a very rewarding and profitable venture if done correctly. In the end it is a profession that requires a learning curve and practical experience, no different than an airline pilot or engineer. Understanding how to approach and learn this game will allow you to reap all the benefits advertised. It is your Forex Education that you will master the Process of Forex Trading.
Forex can make you financially
The Most Lucrative Part-time Job or Home Based Business Ever
The Forex market is relatively new when compared to the traditional
stock market. The Forex or Foreign Exchange Currency Market was open to the public in 1998. In a year it will be a decade old. This is one
of the major reasons most people do not know about the Forex.
The first reason why you should take a closer look at the
opportunities in the forex market is because of its liquidity
estimated at $2 trillion daily. The other reason is that it is
traded 24 hours of the day and 6 days in a week and participation is
open to all, from individuals like you and me to very large financial
institutions.
With the economic situation of our day worldwide, where there are no
more job guarantees it is not unusual to wake up one morning and find
oneself jobless. In such times, there is an increasing need for a lucrative part-time job or home based business. This is something that you can had absolute control over.
There are of course a multitude of money making opportunities out
there, but to be factual, it is very difficult to find a real
opportunity which will allow you to make a living from your home
computer. Even when you do, you would have to spend hours
doing market research and invest large sums of money to bring it to
fruition. That is if you have not gotten involved in a scam project.
Most of the opportunities on the web today, even if you make big
profits, may be held by someone else. In other words, when you
participate in those turnkey businesses, you do not have control.
In addition to all the "fire your boss today" opportunities, there is
a program on CNBC called Mad Money that seems to begetting to the
masses and unknowing students to invest in the stock market. In
reality this is a very expensive experiment especially for student
that do not have a lot of capital. Buying a Goggle stock for $400.00
a piece is very expensive given that your capital can be wiped out if
the stock goes against you by 100 points. That money could be better
invested in the Forex positions (trades).
The forex market which is also called FX is not really as difficult
as it seems. There is not that much technical vocabulary to learn,
and the risk is considerably low, if you compare it to the other
markets. If we assume that you have 40% loosing trades, you still
have 10 trades left to bring you profit.
The fact that part time job and home businesses seekers should really
consider is that you can choose when to trade, how much to trade and
where you want to trade; all you need is an Internet connection, and
you are ready to tap in the biggest market of the world with $ 2
trillion activity everyday in the same way banks and large corporation do.
Contrary to the trading of stocks, you do not have to start with a
$1000.00 capital. You can start with as little as $250.00.
When you trade a mini lot (10,000 units) of e.g. GBPUSD currency pair
your entry ticket costs $28.00. So when the pair goes your way 1
point, you are $1.00 in profit and vice versa.
You can also trade lesser trading units and you can trade for as
little as $1.00. It is therefore possible to turn a $28.00 investment
to a profit of $100.00 in 24 hours if the currency moves in your
direction 103 points. Imagine been able to do this 2 times a week. In
a good week, this pair moves an average of 400 points.
The Forex market is not a get rich quick scheme it is easy to learn
and understand. It is also easy to make money in the forex if you let
someone dedicated to your success teach you.
Mercedes made more money with FOREX trading than with car manufacturing this year. It is a good way to make $100(0) a day.
Trade without money for 3-6 months on paper, than when you learn
start trading real money. Dont be greedy. 10-20 pips a day is enough.
Start with $250 and build it up to thousands slowly. When you
become a successful trader, you can live anywhere on the planet,
and never have to be dependent on a JOB (Just Over Broke).
1.
Download Metatrader 4 from:
http://www.interbankfx.com/
WHEN YOU FOLLOW THE RULES, YOU WILL MAKE MONEY !
YOU CAN QUIT YOUR JOB NEXT YEAR ...
90 % OF NEWCOMERS FAIL BECAUSE OF GREED, SAME AS IN LAS VEGAS ...
Read and study the whole thread.
20 pips = $20 a day
20 pips = $200 a day
20 pips = $2000 a day
George Soros from Hungary come to this country and made billions on Forex. In one single day he made 1 billion ... really the sky is the limit ...
2.
Here is the thread:
http://fxovereasy.50webs.com/Home.html
Let me known your results. This is my gift for you all.
Some traders searched for years unsuccessfully for this gift.
You can learn this on your own in few days.
I am artist and a philosopher with no talent for numbers. But you
dont need any talent for this, just follow the rules.
Dalibor
http://www.myspace.com/dalibor777
++++++++++++++++++++++++++++++++++++++++++
Here is the detailed description of how to install this system
in to your Metatrader:
First down load Metatrader 4 or Strategybuilder FX MT4 (there is a downloads link at the top of the page on this forum. My understanding is that the Metatrader 4 and Strategybuilderfx 4 are the identical. Once it is downloaded then double click to open it and make sure it is operational...then close it down.
Now go to http://fxovereasy.50webs.com/Home.html click on "Indicator downloads" which will open up the list of indicators.
If you left click on the top one (SHI Channels) you will probably get text. So right click on it and you'll get a drop down window...click on "Save target as..." (I found that sometimes when I did the right click first I would not get the window that contained "Save target as" so I found that I had to left click first...then click back and then right click), now you will see a "Save as" window.
In the "Save in" window at the top you want it to read "Local Disk (C). Here is how you can get it to say that without typing it in... click on the arrow at the right side of the upper box. You will now see a drop down window...in it you will see "Local Disk (C)". Click or double click on it and it should then open up it the "Save In" box at the top. Now in the contents below you will see "Program Files". Click or double on it and "Program Files will now be in the "Save in" box (Ifound that if I clicked on the little file folder to the left of the text, it opened easier). Below you'll find "Strategybuilderfx 4 or Metrader 4". Click or double click on it and "Strategybuilderfx4 or Metatrador 4 will now be in the "Save in" box above with it's contents showing below. Find "experts" below, click or double click on it and "experts with appear in the "Save in" box above. Now you will find "indicators", on which you will click or double click and "indicators" will now appear in the "Save in" box above with nothing in the large area below.
Down at the bottom right corner click on "Save"...now you are finished downloading that indicator.
Now go back to the ForexOvereasy indicator download page and download the next indicator. You should find that when you click on "Save target as" it will take you directly to the last step, with "Indicators" already in the "Save in" box, so all you have to do is click on "Save" and its finished and you're ready to download the next indicator. Don't forget to go back to the home page and download the "New Stuff".
Now that your indicators are all downloaded, go ahead and open your "Strategybuilderfx4/ Metratrader 4.
On the left side under "Navigator" click on the + next to "Custom Indicators" which should open up and show you lots of indicators which include the ones you just downloaded. Right click on an indicator and then click on "Attach to chart". Do the same with all the indicators that you want to add...and you should be ready to go.
You can switch the chart over to candlestick by clicking on the candlestick indicator at the top just to the right of center. I suggest you do this first.
I find this tradestation a little difficult to use but that may be because I'm not used to it. It has lots of features.
If you find that you want to delete an indicator, just right click on it and click on the "Delete indicator" line. (Some of the charts may already have some indicators installed that you may not want.)
I have some charts where the candles are very close together and some that are just right...and I haven't figured out the remedy.
Here is the chat thread, but dont complicate a great system, which cant be automated:
http://www.strategybuilderfx.com/showthread.php?t=15112
On this one page you have it all. If you follow the rules, and control your greed, you will become independently wealthy with this system. You are extremely blessed to read this page, as millions of new traders gave up from a lack of a good system. Many professional trader millionaires said, that this is the best system and if you cant work with this system, FOREX is not for you!
See this chart how I made 50 pips (it could be $50 at start, $500 or $5000 every day) :
http://img389.imageshack.us/img389/4428/usdchfii1.jpg
*************************************************
I see most people trying to make a system that should generate 1000 pips or 2000 pips per month, and try to enter every possible move. But the fact is, if you want to make $18 million in 5 years, all you need is discipline and 100 pips per month. Don't believe me? Read on....
Assuming that there are 20 trading days a month, 100 pips would be an average of 5 pips per day. It doesnt matter if you do day trading or positional, if you do 1 trade or 100 trades, all you need is a system that can consistently make 100 pips for you every month.
RULES:
1) You need a system that can make 100 pips consistently every month per lot.
2) Opening balance would be $500
3) Trade is done only in mini lots
4) 0.1 lot is allowed for every $500 balance. So if you have $1000 you can trade 0.2 lots and if you have $5000 you can trade 1.0 lots and so on.
5) Emotions like greed, fear and hope have to be barred out.
6) Once you made 100 pips in a particular month, you do not have to trade till the month is over. So if you make 100 pips in 2 days, you can quit for the entire month.
RESULTS:
After 12 months you will have $3,100
After 24 months you will have $26,000
After 36 months you will have $230,100
After 48 months you will have $2,050,300
After 60 months you will have $18,278,700
Suprised ?
So maybe you'd say no system can make 100 pips consistenly per month. OK, lets say if you were right. Would you agree with me that its comparatively easier to make 10 pips per month? Even if you target 10 pips per month, you would yet end up with $1.8m in 5 years using the same methodology.
Trading is like painting a canvas, you should step back and try to look at the bigger picture than a trade or a single day alone. It is so true.
So get rid of your greed and trade with nothing but common sense. Plz see the attachment for the break up of gains per month.
The Forex market is relatively new when compared to the traditional
stock market. The Forex or Foreign Exchange Currency Market was open to the public in 1998. In a year it will be a decade old. This is one
of the major reasons most people do not know about the Forex.
The first reason why you should take a closer look at the
opportunities in the forex market is because of its liquidity
estimated at $2 trillion daily. The other reason is that it is
traded 24 hours of the day and 6 days in a week and participation is
open to all, from individuals like you and me to very large financial
institutions.
With the economic situation of our day worldwide, where there are no
more job guarantees it is not unusual to wake up one morning and find
oneself jobless. In such times, there is an increasing need for a lucrative part-time job or home based business. This is something that you can had absolute control over.
There are of course a multitude of money making opportunities out
there, but to be factual, it is very difficult to find a real
opportunity which will allow you to make a living from your home
computer. Even when you do, you would have to spend hours
doing market research and invest large sums of money to bring it to
fruition. That is if you have not gotten involved in a scam project.
Most of the opportunities on the web today, even if you make big
profits, may be held by someone else. In other words, when you
participate in those turnkey businesses, you do not have control.
In addition to all the "fire your boss today" opportunities, there is
a program on CNBC called Mad Money that seems to begetting to the
masses and unknowing students to invest in the stock market. In
reality this is a very expensive experiment especially for student
that do not have a lot of capital. Buying a Goggle stock for $400.00
a piece is very expensive given that your capital can be wiped out if
the stock goes against you by 100 points. That money could be better
invested in the Forex positions (trades).
The forex market which is also called FX is not really as difficult
as it seems. There is not that much technical vocabulary to learn,
and the risk is considerably low, if you compare it to the other
markets. If we assume that you have 40% loosing trades, you still
have 10 trades left to bring you profit.
The fact that part time job and home businesses seekers should really
consider is that you can choose when to trade, how much to trade and
where you want to trade; all you need is an Internet connection, and
you are ready to tap in the biggest market of the world with $ 2
trillion activity everyday in the same way banks and large corporation do.
Contrary to the trading of stocks, you do not have to start with a
$1000.00 capital. You can start with as little as $250.00.
When you trade a mini lot (10,000 units) of e.g. GBPUSD currency pair
your entry ticket costs $28.00. So when the pair goes your way 1
point, you are $1.00 in profit and vice versa.
You can also trade lesser trading units and you can trade for as
little as $1.00. It is therefore possible to turn a $28.00 investment
to a profit of $100.00 in 24 hours if the currency moves in your
direction 103 points. Imagine been able to do this 2 times a week. In
a good week, this pair moves an average of 400 points.
The Forex market is not a get rich quick scheme it is easy to learn
and understand. It is also easy to make money in the forex if you let
someone dedicated to your success teach you.
Mercedes made more money with FOREX trading than with car manufacturing this year. It is a good way to make $100(0) a day.
Trade without money for 3-6 months on paper, than when you learn
start trading real money. Dont be greedy. 10-20 pips a day is enough.
Start with $250 and build it up to thousands slowly. When you
become a successful trader, you can live anywhere on the planet,
and never have to be dependent on a JOB (Just Over Broke).
1.
Download Metatrader 4 from:
http://www.interbankfx.com/
WHEN YOU FOLLOW THE RULES, YOU WILL MAKE MONEY !
YOU CAN QUIT YOUR JOB NEXT YEAR ...
90 % OF NEWCOMERS FAIL BECAUSE OF GREED, SAME AS IN LAS VEGAS ...
Read and study the whole thread.
20 pips = $20 a day
20 pips = $200 a day
20 pips = $2000 a day
George Soros from Hungary come to this country and made billions on Forex. In one single day he made 1 billion ... really the sky is the limit ...
2.
Here is the thread:
http://fxovereasy.50webs.com/Home.html
Let me known your results. This is my gift for you all.
Some traders searched for years unsuccessfully for this gift.
You can learn this on your own in few days.
I am artist and a philosopher with no talent for numbers. But you
dont need any talent for this, just follow the rules.
Dalibor
http://www.myspace.com/dalibor777
++++++++++++++++++++++++++++++++++++++++++
Here is the detailed description of how to install this system
in to your Metatrader:
First down load Metatrader 4 or Strategybuilder FX MT4 (there is a downloads link at the top of the page on this forum. My understanding is that the Metatrader 4 and Strategybuilderfx 4 are the identical. Once it is downloaded then double click to open it and make sure it is operational...then close it down.
Now go to http://fxovereasy.50webs.com/Home.html click on "Indicator downloads" which will open up the list of indicators.
If you left click on the top one (SHI Channels) you will probably get text. So right click on it and you'll get a drop down window...click on "Save target as..." (I found that sometimes when I did the right click first I would not get the window that contained "Save target as" so I found that I had to left click first...then click back and then right click), now you will see a "Save as" window.
In the "Save in" window at the top you want it to read "Local Disk (C). Here is how you can get it to say that without typing it in... click on the arrow at the right side of the upper box. You will now see a drop down window...in it you will see "Local Disk (C)". Click or double click on it and it should then open up it the "Save In" box at the top. Now in the contents below you will see "Program Files". Click or double on it and "Program Files will now be in the "Save in" box (Ifound that if I clicked on the little file folder to the left of the text, it opened easier). Below you'll find "Strategybuilderfx 4 or Metrader 4". Click or double click on it and "Strategybuilderfx4 or Metatrador 4 will now be in the "Save in" box above with it's contents showing below. Find "experts" below, click or double click on it and "experts with appear in the "Save in" box above. Now you will find "indicators", on which you will click or double click and "indicators" will now appear in the "Save in" box above with nothing in the large area below.
Down at the bottom right corner click on "Save"...now you are finished downloading that indicator.
Now go back to the ForexOvereasy indicator download page and download the next indicator. You should find that when you click on "Save target as" it will take you directly to the last step, with "Indicators" already in the "Save in" box, so all you have to do is click on "Save" and its finished and you're ready to download the next indicator. Don't forget to go back to the home page and download the "New Stuff".
Now that your indicators are all downloaded, go ahead and open your "Strategybuilderfx4/ Metratrader 4.
On the left side under "Navigator" click on the + next to "Custom Indicators" which should open up and show you lots of indicators which include the ones you just downloaded. Right click on an indicator and then click on "Attach to chart". Do the same with all the indicators that you want to add...and you should be ready to go.
You can switch the chart over to candlestick by clicking on the candlestick indicator at the top just to the right of center. I suggest you do this first.
I find this tradestation a little difficult to use but that may be because I'm not used to it. It has lots of features.
If you find that you want to delete an indicator, just right click on it and click on the "Delete indicator" line. (Some of the charts may already have some indicators installed that you may not want.)
I have some charts where the candles are very close together and some that are just right...and I haven't figured out the remedy.
Here is the chat thread, but dont complicate a great system, which cant be automated:
http://www.strategybuilderfx.com/showthread.php?t=15112
On this one page you have it all. If you follow the rules, and control your greed, you will become independently wealthy with this system. You are extremely blessed to read this page, as millions of new traders gave up from a lack of a good system. Many professional trader millionaires said, that this is the best system and if you cant work with this system, FOREX is not for you!
See this chart how I made 50 pips (it could be $50 at start, $500 or $5000 every day) :
http://img389.imageshack.us/img389/4428/usdchfii1.jpg
*************************************************
I see most people trying to make a system that should generate 1000 pips or 2000 pips per month, and try to enter every possible move. But the fact is, if you want to make $18 million in 5 years, all you need is discipline and 100 pips per month. Don't believe me? Read on....
Assuming that there are 20 trading days a month, 100 pips would be an average of 5 pips per day. It doesnt matter if you do day trading or positional, if you do 1 trade or 100 trades, all you need is a system that can consistently make 100 pips for you every month.
RULES:
1) You need a system that can make 100 pips consistently every month per lot.
2) Opening balance would be $500
3) Trade is done only in mini lots
4) 0.1 lot is allowed for every $500 balance. So if you have $1000 you can trade 0.2 lots and if you have $5000 you can trade 1.0 lots and so on.
5) Emotions like greed, fear and hope have to be barred out.
6) Once you made 100 pips in a particular month, you do not have to trade till the month is over. So if you make 100 pips in 2 days, you can quit for the entire month.
RESULTS:
After 12 months you will have $3,100
After 24 months you will have $26,000
After 36 months you will have $230,100
After 48 months you will have $2,050,300
After 60 months you will have $18,278,700
Suprised ?
So maybe you'd say no system can make 100 pips consistenly per month. OK, lets say if you were right. Would you agree with me that its comparatively easier to make 10 pips per month? Even if you target 10 pips per month, you would yet end up with $1.8m in 5 years using the same methodology.
Trading is like painting a canvas, you should step back and try to look at the bigger picture than a trade or a single day alone. It is so true.
So get rid of your greed and trade with nothing but common sense. Plz see the attachment for the break up of gains per month.
FX Rates at 12/4/2009
Contract Bid Ask Time (GMT) Change
EUR/USD 1.3182 1.3192 20:59:50 -0.55%
GBP/USD 1.4674 1.4677 20:59:45 -0.16%
USD/JPY 100.19 100.30 20:59:50 0.57%
USD/CHF 1.1535 1.1555 20:59:52 0.74%
USD/CAD 1.2248 1.2266 20:59:45 -0.75%
AUD/USD 0.7187 0.7200 20:59:45 1.49%
NZD/USD 0.5814 0.5852 20:59:53 1.13%
EUR/CHF 1.5209 1.5244 20:59:52 0.19%
EUR/GBP 0.8983 0.8995 20:59:50 -0.29%
EUR/JPY 132.10 132.33 20:59:50 0.03%
GBP/JPY 146.98 147.20 20:59:50 0.40%
GBP/CHF 1.6926 1.6954 20:59:52 0.54%
CHF/JPY 86.730 86.935 20:59:50 0.04%
EUR/USD 1.3182 1.3192 20:59:50 -0.55%
GBP/USD 1.4674 1.4677 20:59:45 -0.16%
USD/JPY 100.19 100.30 20:59:50 0.57%
USD/CHF 1.1535 1.1555 20:59:52 0.74%
USD/CAD 1.2248 1.2266 20:59:45 -0.75%
AUD/USD 0.7187 0.7200 20:59:45 1.49%
NZD/USD 0.5814 0.5852 20:59:53 1.13%
EUR/CHF 1.5209 1.5244 20:59:52 0.19%
EUR/GBP 0.8983 0.8995 20:59:50 -0.29%
EUR/JPY 132.10 132.33 20:59:50 0.03%
GBP/JPY 146.98 147.20 20:59:50 0.40%
GBP/CHF 1.6926 1.6954 20:59:52 0.54%
CHF/JPY 86.730 86.935 20:59:50 0.04%
Monday, March 16, 2009
How to Make Some Forex Money Quickly
Unlike other markets the foreign exchange does not have a physical, centralized location for activity; instead trading is done directly between banks, foreign currency dealers and foreign investors. Because of this, foreign exchange trades are considered over the counter. Trading takes place through the use of computer terminals, telephones and broker desks.
The foreign exchange market is the largest and most liquid in the world. Its trades total $2 trillion every day. However, up until recently the transaction sizes and financial requirements kept this market out of the hand of small individual speculators. Currently the market requires a minimal amount of capital, making the foreign exchange market available to just about all investors. New traders are realizing that the forex is an easy way to make quick money.
Most foreign exchange trading is done online. The growing use of the Internet to facilitate investing is playing a big role in the rapid growth of the forex. Online trading makes investing possible 24 hours a day from any where in the world. This convenience factor is one of the primary reason traders are flocking to the forex to make quick money.
In comparison to the stock market, the forex is a much quicker way to make money. This is due to the rapid and random variations seen in the foreign exchange market. Within minutes or even seconds traders can see their first profits.
Many online signal services make earning profits in the forex even easier. A signal service will monitor the market for you. It will send any pertinent findings to your computer, cell phone or pager. This allows you the freedom to do other things without the fear of missing out on important market changes.
Most signals are based on a technical analysis of the market using several key indicators. The analysis uses a combination of factors to identify market trends and potential exit and entry points. The information is the forwarded to subscribers of the signal service. Traders with up to the minute information can then make efficient trade decisions.
In addition, traders can learn how to trade on the forex by using free tutorials available on many websites. This benefit can be used as another tool for potential forex traders to make money quickly. The Internet is a great way to get trading practice using the complimentary demonstrations available online. It is a good idea to take advantage of these free services before actually opening an account and making a trade. Mini accounts are also available. These allow you to get your feet wet with smaller initial investments than a regular account would.
Though there are many options available to traders to assist the in making quick money in the foreign exchange market, it is important to be cautious of forex scams. There are numerous scams popping up where companies offer to do your trading for you, these are the ones you should avoid. You should develop your forex methods with an expert and only make trades on your own or through a licensed broker. Never allow someone else to do your trading for you.
There is no doubt that the foreign exchange market can be a fast place for traders to make quick money. The main reasons that making money on the forex is considered easier than other markets are the high accessibility of the market because it never closes, and its superior liquidity in comparison to other markets. The availability of online broker services, free tutorials and demonstrations, as well as helpful signal services all contribute to traders being able to make money quickly with little or no real qualifications.
The foreign exchange market is the largest and most liquid in the world. Its trades total $2 trillion every day. However, up until recently the transaction sizes and financial requirements kept this market out of the hand of small individual speculators. Currently the market requires a minimal amount of capital, making the foreign exchange market available to just about all investors. New traders are realizing that the forex is an easy way to make quick money.
Most foreign exchange trading is done online. The growing use of the Internet to facilitate investing is playing a big role in the rapid growth of the forex. Online trading makes investing possible 24 hours a day from any where in the world. This convenience factor is one of the primary reason traders are flocking to the forex to make quick money.
In comparison to the stock market, the forex is a much quicker way to make money. This is due to the rapid and random variations seen in the foreign exchange market. Within minutes or even seconds traders can see their first profits.
Many online signal services make earning profits in the forex even easier. A signal service will monitor the market for you. It will send any pertinent findings to your computer, cell phone or pager. This allows you the freedom to do other things without the fear of missing out on important market changes.
Most signals are based on a technical analysis of the market using several key indicators. The analysis uses a combination of factors to identify market trends and potential exit and entry points. The information is the forwarded to subscribers of the signal service. Traders with up to the minute information can then make efficient trade decisions.
In addition, traders can learn how to trade on the forex by using free tutorials available on many websites. This benefit can be used as another tool for potential forex traders to make money quickly. The Internet is a great way to get trading practice using the complimentary demonstrations available online. It is a good idea to take advantage of these free services before actually opening an account and making a trade. Mini accounts are also available. These allow you to get your feet wet with smaller initial investments than a regular account would.
Though there are many options available to traders to assist the in making quick money in the foreign exchange market, it is important to be cautious of forex scams. There are numerous scams popping up where companies offer to do your trading for you, these are the ones you should avoid. You should develop your forex methods with an expert and only make trades on your own or through a licensed broker. Never allow someone else to do your trading for you.
There is no doubt that the foreign exchange market can be a fast place for traders to make quick money. The main reasons that making money on the forex is considered easier than other markets are the high accessibility of the market because it never closes, and its superior liquidity in comparison to other markets. The availability of online broker services, free tutorials and demonstrations, as well as helpful signal services all contribute to traders being able to make money quickly with little or no real qualifications.
Forex Achieves New Prominence
The credit crisis has resulted in a collapse in prices for nearly every type of investable asset class (i.e. stocks, bonds, commodities, real estate)- with the notable exception of one: currencies. Of course, this is an inherent quality of forex: a rise in one currency must necessarily be offset by a fall in another currency. While you are probably rolling your eye at the obviousness of this observation, it is still worthwhile to make because it implies that there is always a bull market in forex. Accordingly, capital from both institutions and retail investors continues to pour in to the forex markets, causing daily turnover to surge by 41% (according to one survey), which would imply a total of $4.5 Trillion per day!
Investment banks, especially, are trying to increase their forex business in order to compensate for a decline in other divisions. Said one representative: ”We have probably made more of an aggressive leapfrog in growing our revenue base, which has virtually doubled in 2008 versus 2007. With the situation that has been developing over the past six months, where banks are clearly re-embarking on a new role leading back to basics, foreign exchange has to be one of the products that tops that list.”
Based on New York data, which generally reflects global forex activity, transactions between the Dollar, Euro, and Yen (i.e. not involving outside currencies) now account for more than half of the total.
New Zealand Dollar (NZD) Benefits from “Deflation Trade”
2007 was the year of the carry trade. 2008 was the year of the safe haven trade. 2009, meanwhile, is shaping up to be the year of the deflation trade. In other words, traders have completed an about-face in their collective approach to forex, such that those currencies with the lowest rates are now favored, because they are perceived to best hedge against deflation.
The New Zealand Dollar illustrates this trend perfectly. For most of 2008, it collapsed as investors pulled money from risky, high-yielding currencies, in favor of a capital preservation strategy: accepting limited or zero return in exchange for security. Beginning at the tail-end of last year, however, it stabilized around the psychological level of .5 USD/NZD, failing to breach the important technical level of .4915.
While such technical factors undoubtedly have played a role in the reversal of fortune, the NZD has benefited by the aggressive interest rate cuts effected by the Bank of New Zealand, which today cut its benchmark rate yet again by 50 basis points, to 3%. While it’s too early to speculate whether the Central Bank will cut rates again at its next meeting, all signs point to further cuts. The economy is in a paltry state, having contracted for five consecutive quarters. Chinese demand for commodities is abating quickly, and the most recent numbers suggest it will continue to erode.
Central Banks Maintain Holdings of US Treasury Securities, but For How Long?
Yesterday, Chinese Premier Wen Jiabao aired his country’s growing concerns about continuing to lend money to the US. Within the context of the US economic stimulus plan and other related US spending initiatives, Mr. Wen is understandably anxious about China’s vast holdings of US Treasury securities:
President Obama and his new government have adopted a series of measures to deal with the financial crisis. We have expectations as to the effects of these measures. We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.
While the announcement represented political posturing (to an increasingly restless, domestic Chinese audience), it should nonetheless be heeded as a warning, that the US cannot expect China (and other foreign Central Banks) to fund US budget deficits indefinitely.
Let’s put aside the rhetoric for a moment, and examine the data. This week witnessed strong demand for Treasury securities, which were auctioned by the Treasury Department on consecutive days. Despite historically low yields (see chart), investors continue to snap up Treasury Bonds, mainly for the sake of risk aversion. The newly-revived issuance of 30-year bonds also went off without a hitch, and were more than 2x oversubscribed. Most relevant to this discussion is the fact the foreign Central Banks accounted for as much as 46% of demand!
Learn Forex Trading / Currency Trading Tips
> What Is The Foreign Exchange (FOREX) Market?
The forex market is not situated in one particular place. Practically every country is involved so there is a possibility of trading currencies in most countries. Because of this, the market runs 24 hours a day, five days a week. more...
> What Is Currency Trading (FOREX Market)?
When people talk about forex (foreign exchange) trading or currency trading on the forex market, they generally mean something very different. In this case traders are constantly exchanging one currency for another (buying currencies and selling others) with the aim of making a profit when the exchange rates change. more...
> Forex, Foreign Exchange & Currency Trading Tutorials
There are more and more people pouring into the forex trading sector every day. There is always money to be made and this is certain to attract large numbers. At the same time, the market is not likely to become saturated. There are so many possible trades to make between all the different currencies and banks and private individuals will always need to make currency exchanges. more...
> What To Look For In A Forex Book
There are new books on forex being published almost every week, so it is useful to know what to look for and how to pick out the best. Just as with any other market where money is involved, you need to know how to identify and stay clear of any scams that you might come across. more...
> How Much Forex Trading Training Do I Need?
But there are many kinds of training available these days and it may be hard to judge what is the best. With so many websites, blogs, articles and ebooks available on the internet, often low priced or even free, it is tempting to think that we may be able to pick up all we need to know for dirt cheap. more...
> If You Are New To Forex, Choose Mini Forex Trading
If you are new to forex or have only a small amount of capital available right now, mini forex trading could be the way to go for you. It allows you to trade with real money while limiting your risk to a relatively small amount. Generally the lot size of trades for a mini account is only one-tenth of the lot size for a standard account with the same broker. more...
The forex market is not situated in one particular place. Practically every country is involved so there is a possibility of trading currencies in most countries. Because of this, the market runs 24 hours a day, five days a week. more...
> What Is Currency Trading (FOREX Market)?
When people talk about forex (foreign exchange) trading or currency trading on the forex market, they generally mean something very different. In this case traders are constantly exchanging one currency for another (buying currencies and selling others) with the aim of making a profit when the exchange rates change. more...
> Forex, Foreign Exchange & Currency Trading Tutorials
There are more and more people pouring into the forex trading sector every day. There is always money to be made and this is certain to attract large numbers. At the same time, the market is not likely to become saturated. There are so many possible trades to make between all the different currencies and banks and private individuals will always need to make currency exchanges. more...
> What To Look For In A Forex Book
There are new books on forex being published almost every week, so it is useful to know what to look for and how to pick out the best. Just as with any other market where money is involved, you need to know how to identify and stay clear of any scams that you might come across. more...
> How Much Forex Trading Training Do I Need?
But there are many kinds of training available these days and it may be hard to judge what is the best. With so many websites, blogs, articles and ebooks available on the internet, often low priced or even free, it is tempting to think that we may be able to pick up all we need to know for dirt cheap. more...
> If You Are New To Forex, Choose Mini Forex Trading
If you are new to forex or have only a small amount of capital available right now, mini forex trading could be the way to go for you. It allows you to trade with real money while limiting your risk to a relatively small amount. Generally the lot size of trades for a mini account is only one-tenth of the lot size for a standard account with the same broker. more...
Using Article Marketing to Increase or Boost Website Traffic
Using article marketing can be a great method for boosting or increasing website internet traffic. It has been a tried and true method for generating traffic to websites. It's been used since the early days of the internet and it's
still as effective as ever.
Using this proven marketing campaign will bring you a flood of valuable links, sales, customers and a steady stream of website visitors for years to come.
How can you harnass the power of article marketing?
Put simply, you write articles for other websites in exchange for a link back to your own site. You should use different articles than the ones already posted to your own website in other to avoid duplicate content.
The more unique, quality written articles you can post
to other websites, the better. You'll get more backlinks and traffic, and you'll build your reputation as an expert in your field. It's possible other websites may start seeking
you out for your opinion or for interviews.
How do I start my article marketing campaign?
First, write some articles (or pay someone to write them for you) of around 300 to 600 words. Don't write ads in disguise. Offer genuinely useful information and tips.
You wouldn't want to publish someone else's garbage on your site, so don't expect them to publish your leftovers. Write separate articles specifically for your article marketing. You should also do the same keyword research you would do for your own website. Also spend some time proofreading for typos and grammatical errors.
The next step is to find places to submit your articles.
Building one-on-one relationships with other website owners in your niche can be beneficial, but it's time-consuming.
Fortunately, there are many article directories which
allow you to post your articles for free. Other websites
can then publish your articles on their own sites.
There are literally thousands of such sites to choose
from, but here is a short list of some of the most
popular article directories:
ezinearticles.com
goarticles.com
articlealley.com
articledashboard.com
searchwarp.com
buzzle.com
Or you can use a service such as iSnare, which will
distribute your article to many different directories
for a small fee.
Hot tip - Your author's bio is vital to the success
of your article marketing campaign. You definitely
need to spend some time crafting the perfect message.
You should keep it short and simple, but always include
the following:
1. Your name
2. Your url as http://yourdomain.com (this ensures your
link will be click able.
3. A short comment that encourage readers to visit your site. Offer a free report, freebies or something else of value to get them to click on your link.
Top of Page
still as effective as ever.
Using this proven marketing campaign will bring you a flood of valuable links, sales, customers and a steady stream of website visitors for years to come.
How can you harnass the power of article marketing?
Put simply, you write articles for other websites in exchange for a link back to your own site. You should use different articles than the ones already posted to your own website in other to avoid duplicate content.
The more unique, quality written articles you can post
to other websites, the better. You'll get more backlinks and traffic, and you'll build your reputation as an expert in your field. It's possible other websites may start seeking
you out for your opinion or for interviews.
How do I start my article marketing campaign?
First, write some articles (or pay someone to write them for you) of around 300 to 600 words. Don't write ads in disguise. Offer genuinely useful information and tips.
You wouldn't want to publish someone else's garbage on your site, so don't expect them to publish your leftovers. Write separate articles specifically for your article marketing. You should also do the same keyword research you would do for your own website. Also spend some time proofreading for typos and grammatical errors.
The next step is to find places to submit your articles.
Building one-on-one relationships with other website owners in your niche can be beneficial, but it's time-consuming.
Fortunately, there are many article directories which
allow you to post your articles for free. Other websites
can then publish your articles on their own sites.
There are literally thousands of such sites to choose
from, but here is a short list of some of the most
popular article directories:
ezinearticles.com
goarticles.com
articlealley.com
articledashboard.com
searchwarp.com
buzzle.com
Or you can use a service such as iSnare, which will
distribute your article to many different directories
for a small fee.
Hot tip - Your author's bio is vital to the success
of your article marketing campaign. You definitely
need to spend some time crafting the perfect message.
You should keep it short and simple, but always include
the following:
1. Your name
2. Your url as http://yourdomain.com (this ensures your
link will be click able.
3. A short comment that encourage readers to visit your site. Offer a free report, freebies or something else of value to get them to click on your link.
Top of Page
Forex Trading Tips By Ezilon.com
Forex Trading Tips
Forex trading is buying and selling the foreign currencies of different countries. It has a similarity with stock trading in that the foreign currencies behave like shares of the currency institutions of the countries. Like stock prices, these also move up and down with time-dependent volatility.
It is possible to buy a currency low, buy long and sell short another high currency. It needs meticulous pursuit of the exchange rates of currencies you want to trade. One needs to keep up a continuous scrutiny of the trajectory every particular currency vis-à-vis the other currencies, pair-wise.
It often has leverage enough to induce highly profitable arbitrage and hedging. Each internationally accepted currency has a market and the Forex market is the superset of all these markets taken together. Traders make their own basket or inventory of Forex and trade according to their anticipation of movements.
For example, the primary Forex statistics for the euro in relation to the German mark prior to 1999 reveals a lot of interesting features and profit potential of dollar or German Mark in relation the euro.
From the evidence it appears somewhat surprisingly that the euro lost ground against the US dollar in Forex spot trading, and in quite a few dimensions did not match the international transaction role of the German mark.
The euro changed the structure of the Forex market and increased market transparency through currency elimination. This exposed the dealers to higher inventory risks as their respective inventory imbalances became exposed easily to other dealers.
The increased inventory costs were recovered by the dealers in the euro markets through higher spreads. This made the euro a less attractive transaction medium than the German mark. This shows how trading in Forex involves both risk and profit potentials.
Earlier, the fore market was the trading ground of millionaires and billionaires only. Now with the introduction of online Forex trading, the average person is able to create amazingly large amounts of wealth from safe online investments in foreign currencies. Online forex trading is nothing but Forex trading transacted through internet links and email through a competent broker.
No technical know how, big “risk”, or large investment, hard work is needed. Online forex trading investment lets you use your dollar to control an investment two hundred times as high, $1 to control an investment worth $200, $1000 to control $200,000 and so on and on worth of investment.
Through online forex trading, you are now able to invest your money to fetch more money for you like the millionaires and billionaires, instead of you laboring hard for your money.
Online Forex trading is real fun. It is often the most striking and profitable internet investing opportunity because you can do it from your PC or connected laptop from any place in any country in the world.
You don’t need any stocks or big inventory in this trading. In online Forex trading, all you do is, just open an account with one of the brokers with as little as $300 or so. Of course, the larger your initial investment, the faster you stand to gain wealth.
Then you simply have to follow simple instructions to purchase and sell the currencies. You buy when the price of the currency is low. Within a few seconds or minutes, the price may go up, and you may sell it and make a profit. This way, by just buying, selling and trading these foreign currencies for about 3 or 4 hrs in a day, you can easily make $500-$1000!
Forex trading is easy money. Especially with the introduction of online trading, it is virtually a continuous upward money spiral for any alert person with a competent broker.
Top of Page
Forex trading is buying and selling the foreign currencies of different countries. It has a similarity with stock trading in that the foreign currencies behave like shares of the currency institutions of the countries. Like stock prices, these also move up and down with time-dependent volatility.
It is possible to buy a currency low, buy long and sell short another high currency. It needs meticulous pursuit of the exchange rates of currencies you want to trade. One needs to keep up a continuous scrutiny of the trajectory every particular currency vis-à-vis the other currencies, pair-wise.
It often has leverage enough to induce highly profitable arbitrage and hedging. Each internationally accepted currency has a market and the Forex market is the superset of all these markets taken together. Traders make their own basket or inventory of Forex and trade according to their anticipation of movements.
For example, the primary Forex statistics for the euro in relation to the German mark prior to 1999 reveals a lot of interesting features and profit potential of dollar or German Mark in relation the euro.
From the evidence it appears somewhat surprisingly that the euro lost ground against the US dollar in Forex spot trading, and in quite a few dimensions did not match the international transaction role of the German mark.
The euro changed the structure of the Forex market and increased market transparency through currency elimination. This exposed the dealers to higher inventory risks as their respective inventory imbalances became exposed easily to other dealers.
The increased inventory costs were recovered by the dealers in the euro markets through higher spreads. This made the euro a less attractive transaction medium than the German mark. This shows how trading in Forex involves both risk and profit potentials.
Earlier, the fore market was the trading ground of millionaires and billionaires only. Now with the introduction of online Forex trading, the average person is able to create amazingly large amounts of wealth from safe online investments in foreign currencies. Online forex trading is nothing but Forex trading transacted through internet links and email through a competent broker.
No technical know how, big “risk”, or large investment, hard work is needed. Online forex trading investment lets you use your dollar to control an investment two hundred times as high, $1 to control an investment worth $200, $1000 to control $200,000 and so on and on worth of investment.
Through online forex trading, you are now able to invest your money to fetch more money for you like the millionaires and billionaires, instead of you laboring hard for your money.
Online Forex trading is real fun. It is often the most striking and profitable internet investing opportunity because you can do it from your PC or connected laptop from any place in any country in the world.
You don’t need any stocks or big inventory in this trading. In online Forex trading, all you do is, just open an account with one of the brokers with as little as $300 or so. Of course, the larger your initial investment, the faster you stand to gain wealth.
Then you simply have to follow simple instructions to purchase and sell the currencies. You buy when the price of the currency is low. Within a few seconds or minutes, the price may go up, and you may sell it and make a profit. This way, by just buying, selling and trading these foreign currencies for about 3 or 4 hrs in a day, you can easily make $500-$1000!
Forex trading is easy money. Especially with the introduction of online trading, it is virtually a continuous upward money spiral for any alert person with a competent broker.
Top of Page
Master the Big 3 of profitable forex trading and there's simply no way to fail!
| |||
| Monday, March 16, 2009 | |||
| Dear Forex Trader, | |||
| The problem that most would be currency traders encounter is a lack of appropriate literature. Most of the books on the subject deal with macro economic theories. If you want to study economics you are better off enrolling in a university class. In the real world with such knowledge and 10 dollars you can buy yourself a lunch. The real world is inhabited with real people. And real people eat little geeks for breakfast. Welcome to the world of currency trading. | |||
| Let's have a look at the figure below. | |||
Sunday, March 8, 2009
Forex News and Events:
The US equity markets closed higher yesterday, on the back of better than expected Chinese PMI data and speculation that China will unveil another fiscal stimulus package. This positive reaction highlights the expected pull China has over the global economy. However, this morning there are no indications of any new measures and the market is discouraged by the mixed messages by Chinese Premier Wen Jiabao. Premier Wen stated that China will increase investment in 2009 to CNY 950bn, but also indicated that he didn't see any pressing need to enlarge the CNY 4tr economic stimulus package. He did say that China needs to "reverse the economic slide as soon as possible" and that China will strive to meet the 8% economic growth target. We expect the optimism in the equity market to be short lived, as all sectors except financials rallied. Energy sector following crude higher lead stock, as speculation that OPEC might opt for a production cut at their next meeting increased. Overall, without a meaningful rally in banking stocks we doubt markets risk appetite will increase and see equities to head lower. From an FX perspective, we expect the USD to be the main beneficiary of risk aversion trade and will be watching CEE4 currencies carefully for further signs of stress. EURUSD was able to rally off 1.2460 to 1.2664 but we expect another attempt on 1.2424 near term. As USDJPY approaches the psychological 100 level, we expect YEN selling frenzy to increase and long term players start entering the trade. Yesterday, Gold rallied off the $900oz support and anticipate a near term test of $925.31oz resistance. On a final note, the US data was unsurprisingly weak. US Non-manufacturing ISM decreased from 42.9 to 41..6 and ADP employment change was -697k vs. -630k exp, which is in line for Friday's nonfarm payrolls. And the tone of Fed's Beige Book was predictably weak, as the economy worsen further and a meaningful pickup is not expected until late 2009. Today will be dominated by Central Bank policy announcements from the BoE and ECB. Both central banks are expected to ease interest rates by 50bps, to 0.5% and 1.5% respectively. For the BoE more importantly than the rate announcement (which is fully priced in), markets will be looking closely for mention of quantitative easing. The BoE is expect to receive the all clear to begin QE from the Treasury shortly, so details regarding limits and execution would be of great interest to the market. In regards to the ECB, we expect Trichet to highlight the fact that growth risks in the Eurozone have increase significantly. In the preceding press conference the issue of quantitative easing will most likely be asked and any evidence that this approach is seriously being considered will weigh heavily on the Eur.
The Risk Today:
EurUsd Momentum indictors are warning of a reversal to the upside however event risk will keep selling pressure on the Eur. Watch for rangebound trading between 1.2678 and 1.2548. Engulfing top in the USD Index yesterday will keep USD bulls on edge but consolidation under 1.2700 will not squeeze shorts.
GbpUsd Traders are pointing to a Morning Star candle pattern and bullish slow stochastic (combined with early formation of inverse head & shoulders) as risk to the upside. We expect events of the day to dominate leaning toward sterling weakness and expect a retest of horizontal base support at 1.3958 (mar 2nd lows) then down to 1.3500. Upside close above1.4160 will target 1.4290.
UsdJpy Short term correction of bull trend was short lived with good momentum piercing 99.50 resistance. Weekly momentum indictors are still bullish. Anticipate a test of 100.0 psychological resistance. Support stands a 98.00.
UsdChf Failure to reach 1.1885 key reversal level implies downside risk. Intra day support stand at 1.1665 21d ma. Mid term consolidation between 1.1885 and 1.1463 favors continuation of uptrend.
UK, EU Central Banks Follow the Federal Reserve
Yesterday, both the European Central Bank (ECB) and the Bank of the UK cut their benchmark interest rates to record lows. This is especially incredible in the case of the UK, whose Central Bank over 300 years old! You can see from the following chart that both Central Banks have more than made up for their respectively slow starts in easing monetary policy by effecting several dramatic rate cuts, following the example of the Federal Reserve. The baseline UK rate now stands at .5%, only slightly higher than the Federal Funds rate, and slightly lower than the 1.5% ECB rate.
Given that they have essentially reached the terminus of their monetary policy options, all three Central Banks are exploring further options aimed at pumping money into their respective economies. The Fed has already “announced a program to buy $100 billion in the direct obligations of housing related government sponsored enterprises (GSEs) — Fannie Mae, Freddie Mac and the Federal Home Loan banks — and $500 billion in mortgage-based securities backed by Fannie Mae, Freddie Mac and Ginnie Mae.” As I wrote in a related article, “this was quickly followed by repurchase programs, lending facilities, investments in money market funds, and option agreements, all of which were designed to supplement its ‘traditional open market operations and securities lending to primary dealers.’ The Fed’s efforts also worked to ease the liquidity shortage in credit markets abroad by entering into swap agreements with several foreign Central Banks suffering from acute Dollar shortages.”
In conjunction with the rate cut, the Bank of the UK, meanwhile, will pump £150bn directly into UK credit markets through liquidity support, buying public and private debt, and asset purchases. “The main purpose of quantitative easing is not to send the money supply into orbit but to stop it from crashing…the broad money held by households has risen at a worryingly slow rate over the past year, and holdings by private non-financial firms have actually been dropping.” In contrast to the monetary programs of the UK and US, the ECB has thus far refrained from the kind of liquidity support that would necessitate printing new money. Instead, “the central bank will continue offering euro-zone banks unlimited loans at the central bank’s policy rate until at least the end of this year.”
The interest rate cuts were announced simultaneously with a spate of macroeconomic data, which collectively paint a bleak picture. Eurozone growth is projected at -2.7% for 2009 and 0% for 2010. The current unemployment rate at 8.2% and climbing. The thorn in the side of the EU is represented by eastern Europe, where growth is falling at an alarming pace, dragging the EU down with it. While EU member states have pledged to intervene if one of their own falls into bankruptcy, it’s unlikely that they would intervene similarly if a non-EU member state went bust. The UK economy is similarly desperate, having contracted at an annualized rate of 5.8% in the most recent quarter. The wild cards are the real estate and financial sectors, the fortunes of which are increasingly intertwined.
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