Posted 1 year, 3 months ago at 6:39 pm. 0 comments
The forex trading tips enclosed can turn a mediocre forex trading strategy in to a winner and anyone thinking of trading should consider incorporating them because they work - here they are…
1. Leverage Stops and Risk
Most traders get 200:1 leverage from their broker and want to use it but this is a huge mistake - a trader should use leverage wisely and 10 20: 1, is enough. This allows you to risk more to your stop and this is vital to success.
Most traders put stops so close they are guaranteed to get stopped out by normal volatility. They get the direction right, see their stop hit and then see prices reverse back the other way and make thousands and their not in!
If you want to win, your stop must be far enough back so you don’t get hit by random price moves in the trend. This isn’t being rash this is sensible investment strategy.
2. Risk More Per Trade
In line with the above forget all the rubbish you read about risking 2% per trade.
On a small account its so little risk it guarantees you will get stopped out.
Sure if you have 100k you can do this - but not on a small account.
Many traders try to restrict and control risk so much they create it and lose. To make meaningful gains, you need to risk 10 - 20% on a small account.
3. Learn Patience
Most traders think the more they trade the more profits they are going to pile up - dead wrong.
You don’t get rewarded for your trading frequency; you get rewarded for being right!
The high odds trades only come around a few times a month in each currency - hit these and hit them hard.
Hitting the high odds trades and hitting them hard can make you a lot of money. I know lots of forex traders, who only trade a few times a month and still pile up big triple digit annual gains, because they are hitting good risk to reward trades and hitting them hard.
4. Forget Diversification
OK on a 100k account there is an argument for doing it but not on a small account.
If you have a great trade, why potentially dilute its profit potential by taking trades for the sake of trading? It doesn’t make sense and will dilute your potential profits.
Hit the high odds trade you like and focus on it.
Keep in mind:
You Don’t Get Rewarded for Effort in forex trading.
Many traders make this mistake.
They want to trade and force profits but this is not possible. They spend a lot of effort looking for trades that it blinds them to the fact most are dogs and should be passed by.
In forex trading your success is determined by the accuracy of your trading signals and your market timing and the money you put in your pocket - that’s it.
So the forex trading tips here mean you need to be patient, hit high odds trades, hit them hard and take meaningful, calculated risks so, you can make a triple digit annual income.
The above is really common sense and these forex trading tips, should be the cornerstone of your forex trading strategy and if you use them wisely and have a good forex trading system then you can enjoy the currency trading success you desire.
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For free 2 x trading Pdf’s, with essential info and an exclusive Currency Trading Course visit our website at: http://www.learncurrencytradingonline.com
Posted 1 year, 3 months ago at 11:32 pm. 0 comments
There are not many people involved in the currency market that do not use some automation to assist in trading. In fact, I would go as far as to say that you cannot successfully trade without using technical analysis with reliable Forex software program. So, how do we determine what the best Forex software program is? Let’s take a closer look at the subject:
1. Reliability. If a program is not reliable then nothing else matters. If you are looking for the bet Forex software program then it HAS to be reliable - point blank! How do we find out if a program is reliable? Look at the track record and testimonials. That should tell you all you need to know.
2. Price. There are a share of software programs that actually charge in the thousands. Do not get me wrong, if it provides reliable and winning trade signals then it is well worth it for any serious currency market trader. However, the best programs that i am aware of charge nothing close to that. The main point here is to be wise when making a purchase and do not spend too much money when you do not have to.
3. Money back guarantee. Does the system give a money back guarantee that is truly unconditional. If not then you have to wonder why. I would not trade with a program that did not give a 4 -8 week guarantee. I need to know if it is going to do what it purports to.
I have provided an objective review of the best Forex software programs on the market in the link below.
An Objective Review of the Best Forex Software is the place to visit
Make a Killing Trading Forex! Scalping Forex is the place to visit.
Posted 1 year, 3 months ago at 8:17 pm. 0 comments
Trading online is now so much easier and far cheaper than using a broker, that is why there are some many people electing to trade online rather than having to go through the hassle of phoning a broker directly every time they want to place a trade.
However the major draw back of trading online is that you are trading on your own. And as any seasoned trader, whether they are trading online or offline will tell you the biggest challenge is having a reliable trading system that you can use in your online trading.
An online trading system means you enter into a trading position when all the trading signals are met through your online trading system using a check list.
The only way you are going to be able to succeed as an online trader is if you have a strict set of guidelines you can follow in a trading system and having the discipline to stick to them
Having and using a predetermined system of trading will enable you to take the emotion out of the trading decisions you make thereby greatly increasing your chances of success in trading online.
There are many online trading systems available on the internet and in book stores, and most of them do work to a certain degree. But picking an online trading systems depends on your style of trading, which is possibly hard to do if you have not been trading for any considerable length of time.
All you can do when you find an online trading system that you think may be profitable is to back test it. What is back testing? It is simply taking the chart of a stock currency or indices and going back in time and then advancing the chart bar by bar and making a decision on what you would do…(either go long or go short) with the information you have at hand.
To do this back testing properly for online trading you have to make sure you do not cheat by seeing what happens further on in the chart. What I do is put my cursor on the slide button on the chart, shut my eyes and basically go back in time. That way your decisions can not be coloured by what you have seen prior on the chart.
To find out about a trading system that uses the time and price concept visit: http://www.tradingslingshot.com
Hil Smith is the author of http://www.tradingslingshot.com which is a website with free educational material for online trading.
Posted 1 year, 3 months ago at 7:21 pm. 0 comments
Would you like to have a side income that gives you a few thousand dollars each month? I certainly won’t mind. In fact I liked it so much that I made it into a full time career! That’s just me though (and several thousand people in the world) we like what we do so much because we don’t have to answer to a boss, or have time-tables or office politics or work stress. The way forward is to trade Forex, not any other market but the forex market.
The world’s largest market is the Forex market; at last count it trades a whooping 3 trillion dollars a day! Can you make just a couple of thousand with 3 trillion dollars floating around? Of course you can!
To achieve that you will need an education into the world of currency trading or more commonly known as Forex. There is a lot of information floating on the internet to help you along your way. Almost every broker also comes equipped with a short tutorial about the wonders of Forex.
Have I scared you enough yet? It sounds too good to be true isn’t it? The truth is it is too good to be true; Forex trading is not about making easy money. Having a side income of a couple of thousand of dollars is highly probable. But to get there you got to equip yourself with the necessary tools. As mentioned a lot of information can be got for free. What cannot be taught is experience, and that is one of the most important aspects of trading.
When you really get down to it, getting a side income is not difficult or complicated. Here are some tips to help you on your way:
1. Read up on the market you want to invest in, it is usually a good idea to read up before investing a single cent.
2. Get a good broker; with the advent of technology every thing becomes automated. This makes it so convenient for you to trade. In the past your broker had to be human that means you could trade only during working hours. With internet trading, you can trade anytime, anywhere, not anyhow though. A good broker will ensure that the orders you give gets filled immediately. Also a good broker will always honor your profits, so you never have to worry about your money.
3. Take action, remember fortune favors the bold! A lot of folks take the knowledge they receive and bury it deep. Why? It’s not like the knowledge is going to give you an income! You got to take action, use the knowledge you acquired and get cracking. Every moment you lose, means more of YOUR money is going into someone else’s pocket.
4. Be positive and believe. Not talking about religious ecstasies here, what is important is that you focus on the emotion of happiness. Yes you read correct, you concentrate on being happy and the positive feelings will set in. When you have that believe that you will succeed then you have just written your own paycheck!
The above tips are just a general guide for you if you want to invest in any market. Investing is the only way to grow your money. Working a day job will give to you a stable income. To shorten the time require for you to build a fortune and retire rich, you have to learn investment. So chest out stomach in, and get cracking!
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book “Money Management” for a limited time only!
Posted 1 year, 3 months ago at 6:54 pm. 0 comments
There was a time when online forex trading was limited mostly to banks and big financial institutions and they were the ones benefiting from it. But times changed and the availability of internet and online forex trading made it accessible to thousands of individuals, brokers, brokerage firms, banks and governments. Now, the benefit is for anyone to reap who deals in it.
This mind boggling increase in online forex trading was brought by a lot of factors. One can trade round the clock irrespective of geographical location and that has been the single most important factor contributing to its exponential growth. Estimates claim that the daily transactions have scaled almost two-trillion dollars! In addition to this, there are a number of other factors.
A trader is gets to trade in different currencies in different markets all at once. It is all because of web based Forex trading. What has this done is that it has allowed the infusion of a lot of liquidity and flexibility in online forex trading. What is more, a trader can easily access quotes and make trades in real time with online Forex transactions.
The biggest benefit of online forex trading is that it has done away with bulls and bears. So, this is the only market without any bulls and bears. Value or ratio of value of the currency or the direction of its movement has relatively no overall impact on the world of online Forex trading. To make it more simple; any trader can buy and sell at the same time in different currencies without any problems.
Another defining feature of online forex trading is its transparency. Nothing is hidden. It is comparatively easier to spot trends and decide the best time to sell or purchase. This is possible because all the information is there in real time from all over the globe.
Everything is out there for anyone and everyone to look at. Online forex trading involves no hidden costs, no exchange fees, no commission and nothing like that. All of this has made online forex trading very easy.
Another remarkable feature of online forex trading is the speed with which everything happens. There is nothing like delays here. You need virtually seconds to execute any trade and to fill and confirm it. All the information is provided by brokers and trading companies in real time and that is really crucial for making important decisions.
I would like to end this discussion by giving a look at the flip side of online forex trading. It might seem the best way to put your money but not everyone who invested money in online forex trading made money. There are reasons behind it.
Online forex trading is in reality risky where split second decisions are needed which could make or mar your investment. It is therefore essential for anyone who is interested in this field to understand it well before making any decision.
Paul Bryant is a successful and experienced Forex trader and also the webmaster for http://www.investawise.com, bringing you all the latest Forex news, reviews and advice.
Posted 1 year, 3 months ago at 9:42 am. 0 comments
Newcomers to trading the foreign exchange currency markets do well to accept the observation of experienced seasoned traders that the idea of a perfect Forex trading tool is an illusion.
While no perfect Forex trading tool exists, using a combination of tools to identify a converging of favorable market factors can yield a majority of high probability trades over a period of time.
Trendlines certainly deserve close consideration and many successful traders add them to their collection of Forex trading tools.
It should be stated at the outset that trendlines by themselves do not provide a strong enough signal to warrant making a trade. They are a useful addition and provide confirmation of signals from other tools. (See resource box for a visual example of using a trendline as a trade entry point)
The Three Trendline Strategy
Consider these three main types of trendlines you need to know and use if you are going to make any sense of trendlines.
Trendlines are lines drawn across significant lows in an uptrend, and significant highs in a downtrend. The more candles to the left and right of the lowest candle in an uptrend or the highest candle in a downtrend make the low or high point more significant.
1. Short Term Trendlines
Draw these lines across the most recent two lows (for an uptrend) or highs (for a downtrend). These are best observed on a smaller time frame such as a 15 minute or 30 minute chart.
2. Medium Term Trendlines
These are best observed on a higher time frame such as a 60 minute chart. Again connect the nearest significant low to current price action to the previous significant low in an uptrend or the nearest significant high to current price action to the previous significant high in a downtrend.
3. Long Term Trendlines
Use higher time frames such as the 4 hour chart or the daily chart to draw long term trendlines using the same method described for Medium Term Trendlines.
The long term trendline can be a powerful Forex trading tool. Keep in mind that the daily chart is used prominently by traders of big institutions. Such traders probably do not engage in small moves on an intra day level. They are more concerned about taking a position on a currency pair.
The daily chart is consulted by them when making decisions. So by drawing a trendline on a daily chart you can present to yourself graphically just where price is and where it is likely to either possibly bounce and retrace or continue with the current momentum.
Using Trendlines As An Effective Forex Trading Tool
Trendlines on the short time frame merely give you a defined picture of current price action. These trendlines are broken often during the course of a day. It is probably not a good idea to enter trades based on trendline breaks from a small time frame chart. Their main use is to give you a clear, instantly recognizable graphical representation of current price behavior.
However, here is where trendlines can prove to be a useful Forex trading tool:
If you notice price coming back to test a trendline on the higher time frames, (anything over 30 minutes), look at other factors. For example:
- Draw in horizontal lines to mark key support and resistance using previous highs and lows.
- Draw Fibonacci retracement and extension levels.
- Calculate the daily pivot points and put them on your chart.
- Have the 200 EMA (Exponential Moving Average) shown on your charts.
Now, if price were to bounce or touch the trendline on the medium to higher time frames, that is, on the 60 minute, 4 hour, or even daily charts, does that price point also coincide with or match up with one of the other indicators mentioned above?
If for example the trendline intersects with a pivot point which is also a Fibonacci 50% or 62% retracement, or 127% or 162% extension, then you have a convergence of factors. If you entered a trade at that point there is a high probability you will catch at least 10 to 20 pips on the first move on the bounce.
Looking for such opportunities takes patience. They don’t come up so often but when they do you can be ALMOST guaranteed a successful trade if you keep your first profit target to a reasonable level.
If trading multiple lots, then be sure to take your first profit at the 10 to 20 pip level and let one or two other lots run if price continues in the direction you anticipate. At the same time of course you would move up your stop to break even point after taking first profit so your trade can now run without risk.
Employ trendlines as a Forex trading tool with caution and discretion. Covering your charts with every trendline possible will only result in confusion and blurry analysis.
One or two trendlines at key or significant swing points, (price highs and lows) can give you a defined, clear picture of price action, which, when coupled with your other Forex trading tools, can result in profitable trades.
See how to use trendlines to get an optimum trade entry point:
http://www.vitalstop.com/Forex/trendline.html
How do you trade the non-farm payroll report? Read this:
http://www.vitalstop.com/Forex/Advisor/forex-strategy-non-farm-payroll.htm
For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:
http://www.vitalstop.com/Forex/tools.html
Posted 1 year, 3 months ago at 11:26 pm. 0 comments
There has been a lot of debate over the years as to whether or not gold is worth investing your money in. Some make the claim that it makes an excellent hedge against inflation; others might say that you can use it as a quick fix for some extra cash. And then there are some that invest in it when the economy is bad because they feel if everything crashes, at least their gold will still carry some value.
So what is it? Is gold a good investment?
Well- let’s define “investment” first; really, it should be categorized into a couple of different perspectives. We either invest with a long term approach, or we invest with a short term, turn a quick profit approach. In this article, we’ll explore both the short term and long term approaches to using gold as an investment.
Before we consider the above, let’s look at how gold has been performing throughout the years and use that data to consider the question.
First, if we were to take all of the years that gold’s worth has been calculated up to the present, we would find that gold has improved in value at about 2% annually. In the last 50 years, things have been a little bit better, as gold has been increasing at about 4% annually. So would it be a good long term investment? Doubt it… most good index funds (something that might follow the S&P 500, for example) have been increasing on average at 12% annually in those same years. Do your research- you’ll find the same data.
Here’s another interesting thing: if you would have bought a bunch of gold back in 1983, you would have purchased it for roughly $510 per ounce. Thinking that it might be “a good hedge against inflation,” you hold that investment for the next 20 years or so. By the end of 2005, if you were to have attempted to sell that same gold, you would have made literally NOTHING! That’s right- in December of 2005, gold was being sold at $515 per ounce!
If you take inflation running at about 3% into account, you’d have found that gold would have lost you a substantial amount of money.
Is good a good investment? Considering the numbers, it wouldn’t be good long term.
How about gold as a short term investment? Currently, gold is being traded for roughly $875 per ounce! In the last several years, it’s been increasing at an astounding rate! So now would be a good time to buy, right? Absolutely not! It’s only been in the last few years that it’s really gained any ground; if you look into history, anytime gold begins to look up, it ends up taking a hard fall. If you would have bought gold in the last couple of years, now might be a good time to sell it!
But what about now? Should you buy it? Well… you decide. Typically, I like to buy low and sell high; don’t we all? So… with gold being as high as it is, the worst decision you could make would be to buy it. Don’t touch it!
So, in short, is gold a good investment? Absolutely NOT! Stay away from it.
Trever Shipp, the author, works as an online business consultant, student, husband, and business owner. Follow his personal finance blog and see how he and his family take finances by the horns and steer them to success.
Posted 1 year, 3 months ago at 8:58 pm. 0 comments
For the past five years my sole source of income has been profits made from trading on the forex market. Over that time period, many people, perhaps somewhat envious of my ability to earn money from home without having to report to a boss, have asked me what it takes to trade for a living. How can one arrive at a point where one feels confident enough to leave ones regular employment, strike off on ones own with no guarantee of a regular paycheck, and put what might conceivably be ones entire savings up to that point at risk in the markets?
While I unfortunately cant actually give you confidence in your ability to make it on your own, nor the stomach to risk your hard earned savings, I can tell you the practical steps that I took to get where I am today. These steps do not include the obvious ¨learn of the existence of the forex market¨, as presumably you already know something about forex trading, or you wouldnt be reading this article.
Furthermore, while these steps have been applicable to trading the forex market in my case, one could easily apply the same principles to becoming a professional trader in the equities markets, derivative markets, etc.
Step 1) Start saving your money.
To trade professionally you need a bankroll, and one that is large enough to withstand the ups and downs that are a natural part of trading. For me, this was easy. I had been putting money aside ever since I started working. Those like me that have been raised to understand and appreciate the value of saving, will accomplish this quite naturally. However, if you are a habitual spender and are accustomed to living paycheck to paycheck without putting anything extra aside, be prepared to expend some serious effort curbing your habits and learning to save instead of spend. How much money will you need? Unfortunately I cant answer that specifically because it will depend on the trading strategy that you use, the amount of leverage you plan on trading with, and the amount of money that you need to take out in profits. You should count on having a bare minimum though, of a full six months salary saved up before beginning full time trading. One years salary would be still better. Keep in mind that the larger your bankroll, the more money you can earn without risking an unnecessarily large percentage of your bankroll.
Step 2) Get an education.
You cant start trading before you know something about the market you are trading in. This education does not have to be formal (as in University classes), and you do not have to understand economic forces as well as Alan Greenspan prior to getting started. You should, however, have a basic understanding of why the market that you are trading in exists, how buying and selling on that market works, and the strategy that you are going to employ to take your profits out of the market. There are a lot of totally free resources on the internet that are worth your time to read (and there are a lot of opinions and ideas that are NOT worth your time, but reading some of those that are not worthwhile is part of the process of developing
discernment about what is and is not a good resource).
There are also some inexpensive trading courses on the internet that are useful. Part of the education process is coming up with a trading strategy that you are comfortable with, as well as a money management strategy to ensure the long term viability of the trading strategy. There are many good trading strategies out there, but regardless of which one you choose, you must understand that the traders that are successful cut their losses early and let their winning trades run. This can be somewhat more difficult than it sounds, but is really the key to making money trading.
Step 3) Sign up for a demo trading account and start practicing while you are not at your regular job (or, if you have free time and internet access at your job, WHILE you are at your regular job).
We list some good forex brokers at forex-rates, so if you are planning to trade currencies, be sure and sign up for a demo account with one of the listed brokers. In order to get a real feel for the trading strategy that you have chosen, you will have to do a lot of practice, so take your time with this step. Dont start trading with real money until you have an actual
history of successful demo trading
Step 4) If you are making money trading on paper and are comfortable with your trading strategy, go ahead and get started trading for real on a part time basis. Don’t include all of your savings as part of your trading bankroll yet. Start slowly and gain a comfort level. As your confidence builds, move money from your savings to increase the size of your bankroll.
Step 5) When you can estimate that your average gains from real trading (from step 4) are at a level where, if you were to trade full time using your current bankroll, you would be making profits that slightly exceed your current employment salary, you are ready to quit your job and trade full time. Remember, you want your trading profits to exceed your present salary. This will give you the opportunity to maintain your current financial level, but at the same time continue to increase your trading bankroll, which will enable you to earn more and more money as the size of your available funds grows larger.
It is important to have patience with yourself at each of the steps mentioned. Maintain emotional equanimity and understand that fear and greed are a traders most dangerous nemesis. If you can keep these emotions under control and maintain the discipline established while following these steps, you can look forward to making it as a professional trader.
Samuel Garcia is a full time forex trader based in San Jose, Costa Rica. He considers that being a successful trader is 90% due to proper money management and emotional discipline, rather than the trading strategy employed. Visit http://www.forex-rates.biz
Posted 1 year, 3 months ago at 10:59 am. 0 comments
Start saving money often and regularly. And keep your eye on that million-dollar prize! Starting later when you are already in your thirties, may still make you a millionaire under the right conditions and choices even if you are allocating less than 10%. On the other hand a late start at the age of 40 can be compensated by an allocation of a higher percent per year to lead you the millionaires club at the age of your retirement.
Wealthy people think like only rich people know how to think and because of that, they keep getting richer, whether the economy is up or down, good or bad Like most people, YOU probably wasted so much energy and time trying to make money on ebay, your own business, your own web site, maybe even investment and real estate. Riches, wealth and mega-bucks flow to those who have learned how to magnetize and attract them. Fact is, there are a number of “rich” people who are terrified of losing what they have.
Creating extra streams of income, thereby increasing your overall cash flow is one way to improve your situation and enable you to put away some savings each month. To be honest probably the hardest part of becoming a millionaire is getting to the point where you have a positive monthly cash flow because you have become disciplined enough to spend less than you make. Creating a company that addresses such markets often requires a certain amount of luck. However, there are a number of businesses that can be started that will make you successful and rich that aren’t of this size.
Millionaires have firmly set goals. Millionaires are being created faster than any other time in history. A recent world wealth report revealed that the millionaire virus epidemic is increasing every year at the rate of approximately 17,000+ new millionaires. Millionaires buy stocks and buildings, they invest in assets that will make them rich, and that are hard to spend on a whim!
Millionaires make decisions, focus their time and enjoy a lifestyle that supports their success. Start acting as-if you are a millionaire thinker now and attract more of that kind of success instantly. Millionaire businessman knows the selling techniques. They earn their millions by selling, buying, trading you name it, the possibilities are endless, so it’s time for You to go start making your millions to become the next millionaire.
Author: Gregory Wadel
Find Out How You Can Become The Next Millionaire.
http://sixfigureyearlyprogram.blogspot.com
Posted 1 year, 3 months ago at 8:30 pm. 0 comments
The concept of trading has taken a diversified meaning, especially in the present world in which trading is the basic work culture. Traditional trading is no more in the market. The world wide web has taken over everything that matters a lot, and we are completely in the hands of potential websites. The most effective consequence made by the internet invasion is the prevailing online trading community. If you become a member of a trade related website then you can be known as a community member of trading website. In the present times, we can find many traders getting engage in a Day Trading Community.
Nowadays, we have traders who do buying and selling of stocks or any monetary products within the same day. Here, bartering starts in the morning and ends completely in the evening. There is nothing left over consequence for the next day. Such kind of trading which happens within the same day through the internet services are generally termed as a Day Trading Community or simply known as an Online Community. There is huge traffic in such communities as more and more people are joining them.
If your personal computer is connected to world wide web service then you can also become a day trader. For this, you will have to become a member of day trading community. When you have become a member of it then start reading so as to gain sufficient knowledge on day trading. In such communities you can solve all your various trade related queries with the help of some blog and chatting tools. There are many financial experts and people who are already doing businesses successfully. Some of the instances of such day trading communities are stock, forex, mutual funds day trading etc.
Hence, we have come to know how day trading community is making progress day by day.
This article written by David Jose is on Day Trading Community. David Jose has been a avert writer on various online trading communities. His work has been published in several places across the web. At present David Jose is contributing towards making MTP a well known and popular online trading community.