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Sunday, July 27, 2008

Make Money Fast - An Opportunity to Build Wealth in a Trillion Pound Industry

By Kelly Price

If you want to make money fast and build wealth, there is a business open to you that anyone can learn, start with small stakes and use a proven vehicle to make money quickly. If you have the mindset to succeed read on...

The business is becoming a forex trader from home. Before you say I couldn't do that you can and people with no experience are learning currency trading with no previous experience investing small amounts and making money fast.

Check the advantages first and then we will show you how to make money fast

- You can get started with a few hundred dollars
- You only need a PC and to be online
- You don't need to advertise, you don't need stock and you don't need staff.
- You can do this business from anywhere
- It will take you a few weeks to learn and about 3o minutes a day to run
- There is never a recession
- There are opportunities to trade for profit daily
- You can invest 200 times your deposit and leverage your gains

That's a lot of advantages and the key one to making money quickly, is the fact you can leverage your deposit 200 times.

Put down $500 and you can trade $100,000! This of course increases reward but also risk however if you can manage risk and run profits you can make spectacular gains.

A good way to learn to trade forex is simply to follow price action on a graph and trade the trends that emerge and re merge as currencies are a reflection of trader psychology that never changes. If you can spot repetitive price patterns, you can make money at forex trading and this learned skill will take you about 2 weeks of study.

The rewards for this study though can be life changing.

The fact is most traders lose about 95%.

This is mostly down to discipline and money management - you simply must keep your losses small.

The game of forex trading means taking small losses regularly and then when you hit a home run on a big trend, milking it for all its worth.

Forex trading is not easy and you wouldn't expect it would be with the rewards that are on offer however, if you approach it as a business and get the right education, obtain confidence and discipline, you could be on your way to a lucrative second or even a life changing income, in the worlds biggest and most exciting business which gives you the opportunity to make money fast and build wealth.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info and a Beginners Forex Course visit our website at: http://www.learncurrencytradingonline.com

Forex Trading Strategy - If Yours Doesn't Have This in it You Are Guaranteed to Lose!

By Kelly Price

Regardless of the forex trading strategy you use, it must contain the key element enclosed yet, most traders never even consider it and when asked what it is get it wrong! If you don't want to join the majority of losers, make sure your strategy has it and get in the winning minority...

The key to success in forex markets is:

A trading edge which you can define and which you have confidence in can help you NOT join the losing majority or the 95% of traders who burn their money.

Obvious?

Yes it is - but most traders think the statements below are trading edges and they are not! If you think they are, you will soon see your account wiped out.

Agree with any of the following statements and you are odds on to lose

- I have a forex robot with a simulated track record in hindsight and think it will make me money
- Forex day trading and scalping are a great way to trade
- I like to trade breaking news stories and react quickly
- I like to predict forex prices in advance.
- I believe in a scientific method of trading and science is the answer
- I am clever so am bound to succeed
- I work hard and will get there in the end
- Knowledge is power and I will learn everything I can about forex

There are many more - but show me anyone who agrees with the above and I Will show you a loser.

The problem is most forex traders just don't understand what an edge is and the above are either myths, thinking forex trading is a walk in the park, or they can follow other people.

Forex trading is hard and that's why the rewards are so big for the small minority who can get a trading edge.

The good news is anyone can learn to trade and get an edge with the right education.

A trading edge is personal but it is the key factor which will give you confidence and allow you to follow your chosen forex trading strategy through periods of losses (and don't believe anyone who says losing periods don't last - they can last for many weeks and this happens to even the worlds top traders) and stay on course with discipline until you hit a home run.

In forex trading its dealing with the losses that is the hard part and if you think it's easy to stay disciplined when the market makes you look a fool time after time, you have never traded.

In forex trading you must love your losses and see them as part of being successful.

A trading edge has nothing to do with being clever or working hard or having a complicated strategy.

It's a fact that simple systems work best and always will, as they have fewer elements to break. Furthermore, your strategy on its own even if its logically based still needs to be applied for this you need confidence and this will lead to discipline.

Lack of discipline is the key reason most traders fail because, if you can't follow your trading system with discipline you don't have one.

To win at forex trading you need to work smart not hard; you can learn forex trading in a few weeks, gain confidence, get discipline and then start trading and get on the road to currency trading success.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info on Successful Currency Trading visit our website at: http://www.learncurrencytradingonline.com

Forex Swing Trading - The Best Methodology For Novices For Seeking Big Gains Quickly

By Kelly Price

If you want to get started as a forex trader, forex swing trading is the perfect place to start and is one of the easiest methodologies for novices to start with. You can soon put together a system and be making big profits in just 30 minutes a day...

The reason it's so good for novices is, it requires less patience and discipline than long term trend following, as you get plenty of action and profits and losses come quickly.

Many novice traders try forex scalping or day trading - but these short term methods of trading don't work, as all volatility is random. Swing trading is the only short term method you should consider, as the time period is long enough to get the odds on your side.

The Aim of Swing Trading

Swing trading typically catches moves that last from a couple of days to a week and is designed to swing trade into overbought and oversold levels. To swing trade you first need to understand support and resistance, then target levels where prices are becoming overbought or oversold and get ready to trade. To do this, you should also understand volatility and using the Bollinger Band to measure overbought and oversold levels is an essential tool.

Once you have spotted a potential overbought or oversold scenario, with prices coming into resistance or dipping to support, its time to look to execute your trading signal.

Confirming Trading Signals

Never buy into support or sell into resistance and hope levels hold, wait until they have so you are not predicting, you wont win if you predict, as this is really hoping or guessing.

For this you need to become familiar with momentum oscillators and there are many to choose from. We like the stochastic and the Relative Strength Index (RSI(, both are visual indicators and you can learn them in 30 minutes or less.

They will give you clues to changes of momentum and then when they do, you can use them to time your entry into the market.

Stops

Stops are easy once you are in the trend, you can simply place your stop behind the resistance or support you are trading into.

Taking Profits

With swing trading profits can disappear quickly, so you need to take them early.

Take them before the next level of resistance or support is tested. By getting out early, you avoid the problem of a counter trend which can eat into your profit.

Forex swing trading is an excellent method for novice traders and simply requires an understanding of volatility, support and resistance and momentum. This does not take long to learn furthermore, you get plenty of action and never have to sit on a big open profit and all the discipline this entails.

Swing trading is simple, fun and can be very profitable. It's simple to understand and easy to build a robust forex swing trading system.

If you are new to forex trading consider swing trading, it's a great way to get started in the exciting world of forex trading.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info on Forex Swing Trading visit our website at: http://www.learncurrencytradingonline.com.

Forex Myths - Common Myths Which If You Believe Them Can Destroy Your Equity!

By Kelly Price

Here are 5 common myths that most new forex traders make and end up losing all their money quickly. If you fall for any of them, you will end up a loser. Let's look at them.

Myth 1

You Can Follow a Forex Robot with a Simulated Track Record and Win

Many traders are just na๏ve or stupid and believe if they invest 100 dollars in a forex robot they will get a guaranteed income what they end up getting is a guaranteed loss. Quite simply, these traders don't look and see the robots come with paper simulated track records and gains NOT real ones!

There simply made up knowing the past we can all do that but trading without knowing the price closes is vastly different.

Myth 2

Buy Low Sell High is the Aim of Successful Forex Speculation

It's a well worn phrase and its dead wrong if you try and buy low and sell high, you will miss most of the big moves which actually start and accelerate from new market highs and lows.

All the best trends come from these breakouts and if you don't trade them, you will miss the best opportunities.

Myth 3

You Need to Predict to Win

This really goes with the above myth. Traders get obsessed with predicting tops and bottoms but of course if you are predicting, you are hoping and guessing and that won't get you very far in life let alone forex trading. Trade the reality of price change and never predict if you want to win.

Myth 4

Intelligence and Hard Work Bring Success

Not at all, you don't need to be intelligent to win and clever people who think they deserve success end up disappointed. Furthermore, hard work doesn't guarantee success. The only criteria you are judged on is how much money your trading signal makes and it doesn't matter if you took 5 minutes over it, or 5 hours it's the result that counts.

Myth 5

Forex Trading is Easy

Many vendors of robots, day trading systems and forex signal services promote this myth because it's in their interest but of course it's not easy, if it were 95% of traders wouldn't lose. Only 5% win and make really good money from forex trading and if you think trading is a "walk in the park" the market will hand you a lesson in respect.

The rewards are so high because it's not easy, forex success is achievable but you need a strong forex education and the mindset to succeed.

The above 5 myths are not the only forex myths traders' fall for - but there very common and if you believe them your trading account won't last long.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info on Successful Currency Trading visit our website at: http://www.learncurrencytradingonline.com

Using Technical Analysis in Forex Trading

By Jonathan Gibson

Forex trading is the trading of foreign exchange on the global markets. The technical aspects of forex are mainly concerned with the happenings of the forex market rather than what can actually happen. A technical analysts studies the price and the volume movements of the market and with the help of such data that are derived from the various actions of the market players, creates charts and graphs. These are later used as the primary tool of Forex trading analysts. The technical analysts are not much concerned about larger aspect of the market but rather concentrate on the different activities of the concerned instrument's market.

The main principles on which the technical analysis is based upon are as follows:

- Market action discounts everything: the phrase means that the exchange price of the currency is actually the reflection of all the things that are known to the market and also all the factors that can affect the market as a whole. There are various factors that affect the market as a whole - the factor of supply and demand, market sentiments and other political factors. Technical analysts are mainly concerned with the price movements and do not deal with the reasons behind the changes.

- Prices move in trends: in the case of forex trading, the technical analysis is used for the identification of the patterns of the market behavior. This is a significant method of knowing the behavior of the market. For most of the given patterns, there is a high probability that the method will yield the expected results. However, there are also some recognized patterns that repeat themselves on a fixed basis.

- History repeat itself: the chart patterns are categorized and recognized for years and the patterns repeat themselves after a fixed interval of time.

According to the experts, the list of categories of technical analysis theory consists of the following examples; Indicators (oscillators), Number theory (Fibonacci numbers, Gann numbers), Waves, Gaps (high-low), trends (following the moving average), chart formations (channels, head and shoulders and triangles).

There are also various indicators that are used for the forex trading. Some of the important indicators are as follows:

a) Technical indicators; there are a number of ways for the execution of the technical trading systems. The technical indicators that exist in the forex market either are used in isolation or are used in combination with the others.

b) Trend indicators; it is used for the information about the persistence of price movements in a single direction. The common method to spot the trend indicators are via "trend lines", "drawn below price lows" and "above price highs".

Other forms of indicators are - support or resistance indicators, volatility indicators, sentiment indicators, momentum indicators and the cycle indicators.

To read more about forex trading, click here: Forex Profit Accelerator Course. Jonathan Gibson makes his money from home and has an extensive experience in market trading. To get 4 Free ebooks on trading from a 30+ year trader veteran, click here: Free Forex Course.

Choosing the Best Forex Trading Broker

By Jonathan Gibson

In the past, Forex was supposedly off limits for individual investors; Forex was something to be exploited only by large multinationals, banks, and private hedge funds. However the online trading revolution has brought Forex trading within the reach of retail traders, and individual investors. A lot of interest has been generated in internet based currency trading, and new investors are spending their money in the currency exchange markets and building their Forex portfolio.

For the first time investor, it is wise to look around for the most suitable Forex brokerage that will comply with the personal needs of that particular investor. Forex brokerage firms offering online Forex trading platforms might look inviting at first, but make sure that you are aware of your limitations in terms of capital outlay and spot trading capacity. Choosing a Forex brokerage that offers low spreads, and high leverage levels is vital. As a first time investor, you should avoid brokers with strict margin rules and who take a large chunk of the spread. When you are offered low spreads, a spread being the difference between the ask and bid prices, you stand a chance of gaining high profits, as opposed to the broker making profits off the spread.

It is of paramount importance that you try trading via a demo account, if the brokerage does not offer this do not choose it for your trading. There is something called the Easy Forex, which allows people to start trading with small position amounts, as low as USD 25, and where stop losses are standard. In selecting the right trading brokerage firm, make sure that you are aware of the pips spread, and the trailing stops and the guaranteed stops that are available for use. Look for margin provided, which should usually fall between 1-4%, amount required to open an account, spreads for the currency pair you want to trade in, and total fees that you have to pay to the brokerage for the transactions you make via your broker.

It is wise to opt for a broker that does not decide how much risk to take automatically, without your referral. When you are trading with money that is borrowed, this might cause possible losses for you. Even if you have enough cash to liquidate, the broker should not buy or sell at their discretion. You might look at Forex Yard to see the pips spread, and Forex Web Trader in case you want a mobile trading platform. Ultimately, choosing the trading platform will depend on your individual needs, but taking the aforementioned steps will get you the most suitable brokerage services.

To read more about how to rake in big forex profits, click here: Bill Poulos's Forex Training. Jonathan Gibson makes his money from home and has an extensive experience in market trading. To get 4 Free ebooks on trading from a 30+ year trader veteran, click here: Free Forex Course.

Forex Currency Trading Beginner's Tips

By Joel Gardner

Forex or also referred to as the Foreign Exchange Market, is the largest financial market in the world. With Trading volume up to $2 trillion a day, it is three times the total amount of stocks and futures markets combined.

How does Forex Currency Trading works?

Like any trading, the purpose of forex currency trading is to buy low and sell high. And in forex, the goods traded are rates of currencies of different countries.

Your task as a forex currency trader is to determine the trend, to buy a currency cheap and sell it expensive later.

Here are 3 Forex Currency Trading Beginner's Tips to help you get started with forex trading.

1. To begin trading online, you need to have a computer with a high speed internet connection. Profits are made and lost in the instance, a high speed Internet connection is absolutely necessary.

2. Understanding the forex currency trading terms thoroughly. For example, the term pip refers to the smallest unit of price for any currency. A good grasp of the technical terms early would be helpful as you learn to trade.

3. Get a demo trading account. Begin by opening a 'demo' account with a forex currency trading broker. Such an account would have all the functions of a 'real' account except that you won't be trading with any real money. Take this period to hone your forex currency trading skills with zero risk.

While it's possible to trade with little risk through the mini and micro accounts and make money, don't expect to be a millionaire overnight. Forex currency trading requires lots of training, experience, planning and effective money management skills in order to be make money from it.

Hence, it is important that you are financially secured and have set aside ample resouces and finances before becoming a part time or full time forex currency trader.

Losing money is common when you first start to trade. Honestly, I've lost $13,983 during my first 2 months of Forex Trading. I felt like a complete failure... and I would be if I've given up then. As the saying goes, "It is on our failures that we base a new and different and better success."

I researched and read heavily after my dramatic 'failure' and found several systems and softwares that work for me. You can find those specific systems at Forex Trading Systems Insider. I recommend you take a look at this Forex Trading Softwares and see what actually works for me!

Understanding the Forex Market

By Jo Jude

If you read about investing, you've seen the word Forex trading. Historical roots of the Forex currency trade from the days of the gold exchange, through the Bretton Woods Agreement. The Bretton Woods Agreement, established in 1944, fixed national currencies against the dollar, and set the dollar at a rate of USD 35 per ounce of gold. The Forex market as we know it today was actually established in 1971.

Today, the Forex market handles about $1.9 trillion in transactions every day, and it runs 24 hours a day, five days a week. The most traded currencies are the U.S. dollar, the Euro, Japanese yen, British pound, Swiss franc and Australian dollar. As recently as ten years ago, currency trading had high barriers to entry, so only large banking and institutional firms had access to the tools and systems required to play in the Forex trading game. The advent of internet technology is what made Forex trading grow considerably popular as well as accessible with various types of investors.

Forex market basics

Forex markets are the most liquid and accessible markets in the world. The Forex market is overwhelmingly dominated by international banks, government banks, investment banks, corporations, and hedge funds. Individual traders account for only about 2 percent of the market. Forex trading must always be considered high risk, but with good Forex risk management it is possible to generate some excellent returns on your investment.

Forex is the simultaneous buying of one currency and selling of another as forex is traded in what is known as "cross pairs" for example GBP/USD or EUR/USD. Forex, also known as foreign exchange, has many advantages over stocks and futures for both day trading and swing trading. Forex is all about investing money in foreign currencies, just gain profit by selling at a higher price, the one you hold, just to buy another one at a lower price. You buy one currency and sell another one. The idea is to make a trade when you believe the currency you're buying is going to go up in value compared to the one you're selling. Then, if it turns out that your prediction was correct, you do another trade in the reverse direction. Sell the currency you originally bought and buying the one you sold and collect the profits.

Summary

The Forex market is vast and daunting and mostly inhabited by giant organizations. Forex trading is a serious business and it is vitally important that you are properly educated and informed before committing your hard-earned money to the markets.

But it can be navigated by individuals who have studied the finer points and who want to take a risk on something potential profitable. And since the whole world uses money, the trading of currency is always going to be a major force in the financial world.

Jo Jude
http://how-to-learn-forex-market.blogspot.com/
Jo Jude is a notable author of many articles related to finance, credit and insurance
Read Jo Jude's blog to find much more in depth information about Forex and currency trading. Go to http://how-to-learn-forex-market.blogspot.com/

Forex Trading - A Rare Time in History is Upon Us

By Bob Perry

We live in an interesting time in the history of the world. Never before has there been so many ways to make money and never before has the average person been within reach of the ability to literally make millions. And you can do it from home. There are plenty of ways to make money on the internet nowadays, but they usually require you to have your own product and website, which involves a lot of your time and energy and which is not even guaranteed to make you money.

Currently the United States Dollar is at an all time low versus the Euro and at times the Canadian Dollar and the Australian Dollar. If you don't follow such things don't be embarrassed that you don't know this, you probably wouldn't even have it come to your attention unless you are planning a trip to Europe. But this is important to you even if you don't realize it. Trade with other Nations depends on the currency value of each country. Currently the U.S. Dollar being so low is playing a part in why we are paying $4.25/gallon for gasoline.

But with every storm there comes a silver lining, or at least history would say so. You see, with the U.S. Dollar being so low and knowing at some time it MUST come back up you can get into this opportunity for as little as $100, although $5000.00 is usually the safer amount due to the quick fluctuations. This is by far one of the most interesting investment vehicles out there. If you are new to this type of investment you should start reading up on it and also look into the program Forex Trading.

Trading on the forex market is one of the most exciting investments you can make. You can make thousands and thousands per month. You won't believe how fast this market moves compared to stocks. Literally in a matter of minutes you can be up thousands of dollars, but you must get out because it can change direction in a heartbeat. I'm not talking about hours or days, I'm talking in minutes. The world banks are playing in this game so there are major moves when certain events happen monthly. You need a program to shuffle through all of this information.

There are several Forex Trading Programs available that will run on your PC. Most systems run on the Meta trading platform, which is the most famous trading platform in the forex world. You can literally see the markets moving. There are charting websites you can view this happening without actually being a player, such as dailyfx.com/charts/, pick Powercharts and set the time to 1 minute intervals on EUR/USD and USD/CHF and you will see a mirror image a lot of the time. Watching is really amazing especially if you watch just before and during a News Release.

Check the web for the current months Economic Calendar (dailyfx.com/calendar) and you will see specific days that usually move the currency markets at a specific time. It is one of the coolest things I have ever seen in the investment world. United States Unemployment information always seems to move the markets. Quite a few websites will let you try out their software platform and give you a demo account of $50,000 if you want to try your hand at this. I've tried it many times and have tried several different systems and never made a profit. Thats why I think it would be best to have a software program do the buying and selling. Stop loss is a must in this type of investment, because if you don't it can blow your money in a manner of seconds.

With a decent software program you can expect to make around 5-25% return per month. But you probably won't be in a trade everyday due to the volatility, but it all depends on your trading capital. I suggest that for all types of investment vehicles, don't trust programs or experts 100% until you have seen them run for a while. Risk is always involved when you are investing.

The reason that I said that this is a historical time in our lives is that when the U.S. Dollar comes back up it will move probably over 1000 pips (each pip is worth $10.00, you can own more than one pip so this could be a Million Dollar Move) over the next year or so. So realistically $100 can turn into $1,000,000.

Now tell me, when has that ever been possible in the history of the world?

Profitable Forex Trading Strategies

By Andrew Daigle

As you know, the only way to make money in the forex currency exchange market is to have profitable forex trading strategies and good money management. Without these two skills, you will certainly fail as a trader and if you master these, you will be a very profitable forex trader.

It sounds so easy, doesn't it? Two simple rules to follow and you will be profitable in this business. The problem with this however, is that most people can't follow these rules. They let their emotions get in the way of their trading and make bad decisions. They may not take any trades at all because they're afraid they'll lose money. They may be in a profitable trade and decide to close it early to lock in their small profits. They may decide to let their losers run longer than they should because they "know" the currency is about to reverse and go in their direction. There are many reasons why people fail in this business and these are just a few of the examples.

Before you start trading, you need to learn about this business. You not only need to learn how and when to trade forex, but you also need to know when "not to trade". This is just as important. You also need to know how much "risk" you should take on any given trade. If you over leverage your account, you will lose money very quickly and you could actually blow your entire trading account.

Once you learn how to trade, the next step would be to open a forex demo trading account. This is the trading platform you would use from the forex broker of your choice to make trades in the market. Most forex brokers have all the charts and tools you need and the platform on which to execute your trades. Demo accounts allow new forex traders to trade fake money while trading the live market. You get to trade on a live trading platform but you risk absolutely no money. There aren't any businesses I know of where you can learn everything you need without costing you a dime.

Demo accounts are a great way for new traders to get a feel for trading the forex market without risking any money. But be careful. When you trade a forex demo account, and you know in your mind that you have no money at risk, you can start making stupid trading decisions. You may use poor money management skills and risk far too much money on each trade. You may double up on trades to make up for losing trades. These are bad habits, and the last thing you want to do in this business is treat it like a game. It's not a game. It's a real business and should be treated as such.

Before getting into trades, you should also know exactly what price you're getting in to the market and also know what your stop loss and take profit targets should be. If you don't know these three things, do not trade. Every profitable forex trading strategy you learn will have the rules for determining these entry and exit points. Also know that a profitable forex trading strategy does not have to be complicated. Most of the best forex trading strategies are very simple to learn and use.

If you follow the simple rules we mentioned above, you will see how profitable this business can be. It's no wonder why trading forex is becoming one of the fastest growing home businesses today. You get to work from your home using your personal computer and an internet connection. Pick up a great forex trading strategy and open up a forex trading account with a broker and you have everything you need to start trading.

Andrew Daigle is the owner and author of many successful websites including ForexBoost, a free Forex educational site to learn Forex trading strategies and a website for learning profitable online home business opportunities

8 Tips on How to Make Money With Forex

By Tony Matos

Here I would like to discuss what are the 8 tips to help you make money with Forex.

1. First issue is tying to trade when there are news announcements without proper knowledge you will lose but that doesn't mean that you can't learn. Once you learn you will succeed.

2. Trying to trade without doing your homework because trading forex you cannot just jump in.

3. Using a demo account. This tool you can use it to actually get a real idea, without having to risk your money. Learning your trading platform, and testing your strategies. When testing your strategy your gain more confident enough to use your real money.

4. You need to learn how to control your emotions: If you don't you could lose some great trades so learning how to control them you could be very successful.

5. You need to learn how to gain confidence in trading and develop that into a strong level that would make your trading decisions successful.

6. A strong knowledge of different indicators and to learn from them and which ones would be helpful towards your trading career.

7. Knowing when to enter into a trade and not too. Very important.

8. Acknowledging when you need help even; top traders are always learning different methods of forex trading; and that's why they succeed.

One of the most important things in trading is to develop a daily routine and a trading style that will come in time. Also note that learning to trade is to recognize the skills you need to develop and then stay focused on that development and maintain a positive outlook on your trading.

So why not start your forex trading career, here you could find more tips at http://www.squidoo.com/successfulwithforextrading

Basic Stop-Loss Forex Techniques

By Paul Henderson

Stops are an unfortunate necessity of trading life. Forex markets move so quickly that you must enter stops when you enter your trade. Most trading platforms today offer this capability, including scaling stops, and the technique is easy to learn and manage.

The type of stop-loss orders varies from one broker-dealer to another. It is important to remember what standing orders you have in the market at all times. Most trade stations show you a record of all your open orders in the market. Stop-losses may be entered in one of three ways:

  1. As a function of price alone. This is the simplest for new traders. Use your trader profile ratios to set a stop-loss as a function of your profit objective.
  2. According to the tenets of your technical trading method(s).
  3. Above or below support and resistance points.

If you use the third method, remember that many traders use some form of support and resistance analysis. Despite the variety of support and resistance methods, most of them cluster in very similar price areas. Professional traders often use those areas to make contrarian trades-they are buying and selling when your stops are being hit.

No one enjoys having stops sitting in the market, just waiting to be hit by a market whipsaw. It happens, and to everyone. If it happens too often, you will need to make adjustments somewhere in your ratios. Perhaps your stop is too close, in relationship to either your trade profile or the volatility of the market. If a market is moving 20 pips in five minutes, a 5-pip stop may be unrealistic.

Traders easily panic when stops get hit too frequently; that's when emotions can take control of your trading. That may be the time to walk away from trading for a while.

Traders tend to be more objective when entering a market than when exiting. Exiting means your money is on the line and your emotions are more likely to want a say in your decision.

The market is always attempting to get us to second-guess ourselves. If you catch yourself second-guessing too often, stop trading. The market has you where it wants you and is ready to pluck you clean. Your emotions are running the show, and that spells L-O-S-E.

Allocate your trading capital over a series of campaigns, each containing a fixed number of trade opportunities. Give yourself a chance to win. This, too, needs to be realistic and in conformity with your trading profile. Don't expect to have 30 opportunities to make 100-pip profits with a $300 mini account.

If the math and ratio calculations are confusing at this point but you are itching to trade, don't panic. You can allocate your capital in advance in fixed proportions and at least not hurt yourself too badly. Allocate your capital into two or three campaigns of 10 trades each.

  • If you are a guerilla, set a 2:1 profit objective to stop-loss.
  • If you are a scalper, set a 3:1 profit objective to stop-loss.
  • If you are a day trader, set a 5:1 objective to stop-loss.

Paul Henderson is an author, teacher and CEO of a growing network of international companies focused on helping investors from all walks of life learn how to diversify their portfolios and practice good money management. Paul Henderson has been trading for more than 13 years through many different market conditions. See him at http://forex-trading-tutorial.com

Trading Forex - Buying and Selling Round Numbers

By Mike Kulej

There is a lot of ways to trade Forex market. Some people are attracted to participate in it because of its long lasting primary trends. Others like large leverage available. Others still might like 24 hour nature of this markets, while yet another another group might appreciate the unprecedented volume. There is little surprise, that for a large segment of traders, active intraday trading is a way to go.

Very short term traders tend to concentrate on price action trading methodologies, rather than indicator and oscillator based systems. An example is trying to exploit previous highs or lows. Congestion zones are other areas of interest. So are simple chart patterns, like triangles, pennants and wedges. Even something a little more complex, head and shoulders with its variations known as "crowns" are price action set ups. They don't require any other input but the price data itself.

Past high and lows are viewed as supports and resistances. When trading intraday, it is impossible to look for bounces off of every one of those levels and expect to be profitable. The key to successful intraday trading requires that we be more selective and enter only at those levels where a reaction is more likely. For example, one could look for areas where there is a confluence of these trading zones. A high, or low, visible on both 15M and 5M charts is certainly more important that one apparent only on 5M graph.

Then there are psychologically important levels. These areas might not have a clear representation as most recent support or resistance zones, but have importance because of other reasons. Probably best known of these are round numbers, also known as "the figures". Example of round number is 1.5600 in EUR-USD, or 107.00 in USD-JPY. Fractional even numbers like 1.5640 or 107.70 are too common and not really of much importance. On the other hand "full" or "triple zeros", like 1.5000 in EUR-USD, are extremely important but don't happen often enough and, for the purpose of this article, are treated as any other round number.

Why are those areas psychologically important levels? Market participants as a whole tend to put conditional orders near or around the same levels. While stop-loss orders are usually placed just beyond the round numbers, traders will group their take-profit order at the round number. As a result, take-profit orders have a very high tendency of being placed at full "figure" level. Since the FX market is a nonstop continuous market, speculators also use stop and limit orders much more frequently than in other markets. Unlike other financial markets, an average trader doesn't have access to the order book and can judge for himself the order flow. Round offer a relative predictability of order placement.

It is believed that large banks with access to conditional order flow, like stops and limits, actively seek to exploit these zones. So, strategy of fading round numbers attempts to put traders on the same side as market makers or the "smart money". Here are rules for a simple, contra-trend, trading strategy.

For a buy set up, identify a currency pair that has already moved 30-50 pips and is approaching round number. Once the figure is breached, enter a position a few pips below the level, but no more than 10-12 pips away. Place stop/loss 15-25 pips from your entry. Look to take profit at minimum twice the amount you risked. For a sell trade, revers the rules.

Strategy is very simple, but should be practiced for a while, just like any other one. Also, some currency pairs with large spread, are not necessarily best candidates for using it. GBP-JPY comes to mind. On the other hand, most of the major crosses lend themselves handsomely for this set up. They have small spreads and, collectively, touch round numbers often enough throughout the day, to make it a viable trading method.

Mike P. Kulej is a Chief Forex Strategist for Spectrum Forex LLC. He specializes in mechanical trading systems as explained on http://www.spectrumforex.com - Spectrum Forex LLC offers numerous services to individual traders. With questions and comments e-mail him at kulej@spectrumforex.com

Forex Training - The Training These Traders Had Saw Them Make Millions After 2 Weeks!

By Kelly Price

If you are considering forex training you can learn a lot from the story enclosed which saw a group of people with no experience receive an education that would see them become super traders after just two weeks these traders were on their way to making $100 million. If you learn from this story you can enjoy currency trading success - let's look at it...

The experiment was devised by legendary trader Richard Dennis who set out that anyone could learn to be a trader, if they had the right mindset and the right education.

The group was diverse and consisted of an actor, a security guard, a kid who had just left school and a female auditor to name just a few of them. Dennis set about teaching them to be traders and they then got accounts and traded and the rest is history, they made $100 million in 4 years and went down in trading history.

The question you might be asking yourself after reading the above is how do it and what did they learn which was so vital when 95% of traders lose?

The answer is Dennis focused on three main areas.

A Simple System

The trading system was essentially a long term breakout system - nothing complicated and it was easy to understand and of course it's a fact - simple systems work better than complex ones as there are fewer elements to break.

Money Management

He taught his traders to play great defence first (this is something most traders never learn) and protect there equity with a rigorous set of money management rules. These had to applied rigorously, as by its nature a long term breakout system will have long periods of losses (all systems do) and you need to stay on course until you hit a home run

Discipline

Dennis knew that most traders don't fail because they can't learn trading - they fail because they cannot take losses and execute trading signals in a disciplined fashion.

Discipline can only ever be achieved if it's based on how and why the trading system works so you have the confidence to keep applying it even in losing periods. Discipline is not easy but you can obtain it if you know what you're doing and why you will succeed.

The majority of traders never get discipline, as they think they can follow someone else or a junk robot and see forex as a walk in the park and its not - its hard, that's why the traders who get the right knowledge and education win big.

Keep in mind forex success, has nothing to do with working hard, its to do with working smart and focusing on the basics, getting a simple system you have confidence in and can apply with discipline.

Sure you may not become as rich as the above group but the opportunity is there and you know you can achieve success which can be a great second income or even a life changing one.

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Forex Money Management - The Zurich Axioms and How to Use Them For Triple Digit Gains

By Kelly Price

If you want to get rich, no matter how inexperienced you are in investment, then one of the best places to start is with the book the Zurich Axioms and here we will look at some that you can apply to forex trading to supercharge your gains...

In this article we are just going to focus on the risk element of the Zurich Axioms and how it relates to forex trading although the book gives you loss more great investment advice and is one of the greatest books on speculation ever written.

Love Risk!

The 12 major and 16 minor Zurich Axioms contained in the book are a set of principles providing you with realistic management of risk, which can be followed successfully by anyone, not merely 'experts'. When dealing with risk, you have to see it as opportunity manage it and love it, as its your route to trading success

The book teaches you to take risks and meaningful ones at the right time which is what you have to do to make money in forex. You have to manage risk and the Axioms, will show you how.

Several of the Axioms do not conform to traditional wisdom but don't let that worry you, most forex traders lose, yet the Swiss speculators who devised them became rich and the proof as they say is in the results.

Let's look at the major Axiom on risk and how its view is very different to what most so called experts teach.

Axiom 1: On Risk

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough. Put your money at risk. Don't be afraid to get hurt a little... Worry is the hot and tart sauce of life. Once you get used to it, you enjoy it".

Most people are so afraid of risk they actually create it in forex trading. They end up having stops so close their bound to get stopped out or think they can make a regular income etc and then they get the reality check.

Related to the above Major Axiom are two minor ones which most forex traders would be wise to learn
Minor Axiom I

"Always play for meaningful stakes".

How many times do you hear experts tell you to risk 2% of your equity? All the time but for a forex trader with a small account the reward isn't going to be much say you have $1,000 and risk 2% that's $20 bucks!

If your stop is that close. Then you are going to lose quickly.

My own view has always been look to risk 10 - 20% of your equity. If the opportunity looks good hit it hard and go for a meaningful gain. This isn't being rash it's how to win and if you don't like doing this then forex may not be for you.

Minor Axiom II

"Resist the allure of diversification"

Diversification is another word for diluting your gains and if you diversify on a small account you will end of getting no where. Why on earth, would you want to simply diversify when you have a great high odds trade?

All you will do will see your great trade diluted by one that's probably an also ran. Forget diversifying and hit the high odds trades with all you have and concentrate your effort on that trade. You don't need to trade often be patient and wait for the high odds trades.

Sure most experts don't agree with the above and it's not conventional wisdom but how many traders are so frightened of risk they never take enough risk and get stopped out by volatility, or listen by so called experts, who tell them forex trading isn't risky, when of course it is by its very nature.

The truth is forex trading is risky and if you learn to love risk, play for meaningful stakes and hit the high odds trades hard, you can win and make triple digit profits.

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How to Calculate Pip Values

By John J. Drummond

In Forex trading the concept of pip values is important. A pip is the value that indicates the movement of price of one currency against another. Pip values are of foremost importance to investors, as these indicate the profit margins that will be gained through the currency trades. Pip values are in a constant state of flux; inevitably so because of the fluid nature of the Forex market. A pip is generally calculated in units of 0.0001 or 0.01%, so if a currency moves from the value of 1.2440 to 1.2355, it is said to have moved by 5 pips.

When looking at currency pairs, calculating pip values is easier from the quote currency point of view. Taking a look at currency pairs of JPY/USD, CHF/USD, or GBP/USD, where the US Dollar is the quote currency, we can find out the pip value quite easily, which will be $10, according to current exchange rates. This is done by looking at the quote of the pair. For example, if you look at GBP/USD, the quote is 1.9730, which means 1 UK pound is worth 1.9730 US dollars. In currency trading, there are standard lot sizes, which are usually 100,000. So, 100,000 UK pounds will be worth 197,300 US dollars. Now if the pip value moves up by 1, to make the GBP/USD 1.9731 and the 100,000 UK pounds will be equivalent to 197,310 US dollars. So if you are trading for JPY/USD and the market moves by 10 pips in your favor, you will make a profit of 100 US dollars.

If the US dollar is the base currency in a pair, in the quote of USD/GBP of 0.6439, the value of 1 US dollar is worth 0.6439 UK pounds, which means that 100,000 US dollars is worth 64,390 UK pounds. Now if the price moves up by 1 pip, then USD/GBP will be 0.6440, indicating that 100,000 US dollars would equal 64,400 UK pounds now. In this trading scenario, a progression of 1 pip would equal a movement of 10 UK pounds, which when converted to US dollars results in a pip value of 15.53 US dollars, found by 10/0.6440.

We have used the standard trading lot with the USD as the quote currency with a pip value of $10 in our calculations when the USD is the base currency, the pip value will change according to the current market quote price.

To read more about this software, click here: Forex Killer Review
John Drummond works from home. He writes often on business, trading, and finances.
There is more than one forex trading software. To read John Drummond's review of the 2 best ones, click here: Automatic Forex Trading Software

How to Choose a Forex Trading Broker?

By Joel Gardner

Forex trading brokers are everywhere on the internet today. And since it is so easy to put up an ad, chances of you running into a scam or an amazing good trader are equally high.

A Forex trading broker is an individual or company that holds your money to buy and sell based on your decisions. And unless you want to lose your hard earned money in a heartbeat, you want to do some research before deciding on a Forex trading broker.

Here are 3 tips to aid in your research and decide on your Forex trading broker.

1. Is the Forex broker regulated?

Just because a broker is available does not mean they are regulated. If your Forex trading broker is based in the United States, he should be registered as a Futures Commission Merchant with the Commodity Futures Trading Commission and a National Futures Association member. To verify the credentials of a particular broker, simply phone NFA at (800) 621-3570.

2. Company Customer Service

Trading happens 24/7, hence you need a Forex trading broker that provides a 24-hour support help desk. Try contacting the broker through phone, email or live chat with any questions. The broker should be knowledgeable and able to respond quickly to all of your questions. A good Forex broker should provide you with speedy and satisfactory answers to all your questions. For any reason, if he fails to do so, move on to the next Forex broker on your list.

3. Trading options

Services provided differ from each Forex trading broker. Does the broker offer the minimum 7 major currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD). Are their operating hours align with the hours of operation of the global Forex market? Does the broker take a commission and a spread? Make sure the spread is small enough to compensate for the commission. What is the minimum size trading offered by your Forex trading broker?

Your last final tip is to have a list of Forex trading brokers and run them through a checklist of criteria you deem as a must. This would allow you to narrow down and find your ideal or at least second best Forex trading broker.

Losing money is common when you first start to trade. Honestly, I've lost $13,983 during my first 2 months of Forex Trading. I felt like a complete failure... and I would be if I've given up then. As the saying goes, "It is on our failures that we base a new and different and better success."

I researched and read heavily after my dramatic 'failure' and found several systems and softwares that work for me. You can find those specific systems at Forex Trading Systems Insider. I recommend you take a look at this Forex Trading Softwares and see what actually works for me!

What's the Best Forex Trading Method?

By Jim Buhs

I can't really speak for most, but the best forex trading method I've ever used was price action. I was just like everybody else who jumped from the latest system that involved stochastics and MACD until I figured out all I needed was right in front of me.

What I came to find out is that all the indicator driven systems rely on lagging indicators. When it comes to lagging indicators you find out you should have bought or sold after the move happened.

Take a look. Back test any of these supposed "best" forex trading systems that you see in forex forums. You know, the ones with 20 moving averages on your screen and a few oscillators below it. When you back test it, doesn't it look absolutely phenomenal? This is basically false advertising.

Do yourself a favor and test it in real time conditions. You'll notice something very interesting. Whenever you see a big move happen, it always takes these indicators a few bars to catch up to the move. So if you are just taking a quick glance at it in hindsight, it looks like an amazing trade. But when traded in real time, you basically missed most of the move.

The great thing about trading price action and why I consider it the best forex trading method, is that it you can forecast with it. It predicts future movement. You can spot patterns that get repeated over and over again. Once you spot them, you'll never believe how many times you missed them. They were happening right under your nose.

If you're still struggling to learn how to trade forex, make sure to check out my squidoo lens.

Electronic Currency Trading Versus Bull Fighting

By Brian McAboy

Live bull fighting and Electronic Currency Trading share a lot in common. Some of the parallels are:

* They're both pretty straightforward.

* Both involve a high degree of risk

* There's only you and a very large antagonist (the bull or the markets).

* In fighting the bull, it's just stand there, wait, get out of the way. Simple.

* Just like Electronic Currency Trading, it's just buy low, sell high. Simple.

* Either endeavor demands great emotional intelligence.

* If you lose your cool and make bad decisions with either, you'll suffer injury or possible death (of course in Electronic Currency Trading, it's the proverbial "Financial Death").

Trying to be a self-trained trader (without proper training) is like trying to become a self-trained bull fighter. You could read up on how to do it, figure things out for yourself, and maybe even create your own method. Keep in mind though, by yourself alone with the bull after you enter the arena, it's a completely different situation. You are required to prepare for when the bull is going to charge, if he is going to come full speed or slow down, move left or right or maybe even stop, then you have to react with the right moves and the right timing. What happens if you get scared or lose your discipline, and then hesitate?

OUCH! You'll get reminded by the bull!

You'll be stomped and gouged any time you lose your cool and make a mistake.

Sooner or later, you get forced to figure out what you're doing wrong and how to keep your cool. The bull certainly won't tell you what to do to keep from repeating it. The gouging will just continue. You'll have plenty of scars to show for it if you do survive long enough to actually make it as a bull fighter. Unfortunately, most of the mistakes you'd make as a bull fighter would come from the same source as the mistakes that a trader makes: lack of patience, discipline, confidence, timely action.

Until you learn how to keep your cool and do the right things when you know you're supposed to, you'll keep on taking a beating from the bull.

The same is true with the markets and Electronic Currency Trading.

If your emotions cause you to mess up your timing or your decision-making, OUCH! Here comes another gouging! You absolutely have to survive the learning curve in Electronic Currency Trading. Without emotional intelligence as a trader, you can have a true "Holy Grail" system and you're most likely to hand your money to the markets rather than profit.

If you've been trading for a while or if you're brand new to it, to avoid getting repeatedly gouged by the markets, focus on your emotional intelligence so that you can survive.

Are you a self-trained bull-fighter (trader)? When you're in the arena with the bull, do your emotions flair up? Do you want to avoid getting gouged by the markets? Go to InsideOutTrading.com for training that will boost your emotional intelligence in Electronic Currency Trading

Making Sense of Forex

By Ryan Kerns

The foreign exchange (Forex) market is the most dynamic and largest financial market on earth and exists where currency is traded. This applies to large private banks, central/federal banks, currency speculators, large corporation and governments. The average daily trade in the global forex market is just over US$ 3 trillion. You don't have to be a rocket scientist to understand the fundamentals of forex and how the market works. The goal is to research the currency exchange rates and buy and sell currencies at prices that will make you a profit. While profit margins are low on a per-unit basis, the potential for large gains comes when trading large amounts of currencies. Let's take a look why the forex market is special.

Forex is unique, in that, the overall trading volume and the extreme liquidity of the market makes it very possible to reap huge rewards that can change your life. Keep in mind, however, that you can also lose a lot too. It really depends on your research and sources of information that you rely on to make an informed decision. Another unique aspect of the forex market is that it's a 24-hour market, with the exceptions of weekends and holidays. This can result in more opportunities and time to adjust to market conditions. According to BIS, the average turnover in forex is estimated at $3.21 trillion. Unlike the stock exchanges, forex is an OTC (Over-The-Counter) market whereby brokers negotiate directly with each other.

There are several factors that influence the forex markets. The first being economic factors for any particular government. It could be economic policy, economic conditions and indicators, budgets deficits or surpluses and trade deficits. These factors have an astronomical effect on the value of a currency. The second factor is political conditions of the country that the currency is used in. Instability in the region and its relationship with neighboring countries also have an effect on the value of the currency.
There are several types of financial tools that is used in forex. These are more or less terms that are used to identify a particular investment.

-Spot: A spot transaction is a "direct exchange" of two currencies. This option has the shortest time frame and involves actual cash rather than contracts. Spot trading is the largest by volume in forex among other tools.

-Forward: This is simply where a seller/buyer agree on a future date and exchange currency, regardless, of market conditions.

-Future: Future trading can best be described as buying a certain amount of currency for today's price under the speculation that the currency will increase in value within the contract time (typically three months)

-Swap: The most common exchange on the forex market. This is where two parties exchange currencies for a length of time and then swap back at a later date.

-Option: This is when the owner of a currency has the right to exchange money from one currency to another currency at a pre-agreed exchange rate on a specific date. This is a good option if you think that the price of a currency is going to increase, therefore, producing a more valuable currency than what you exchanged for it.

I hope this has given you some insight into the world of forex trading. I want to stress that it is not an easy thing to do and its certainly not a get-rich-quick scheme. If you put in the time and effort and educate yourself about the forex world, you can make great amounts of money over time. For more information about forex exchange trading, feel free to visit my website (listed below).

Home Business Which Makes Money Fast on Small Stakes and Anyone Can Learn

By Monica Hendrix

The business enclose takes around 2 weeks to learn 30 minutes a day to run, only requires a small amount to start and is a business which anyone - young, old, male or female can do and make money fast. Let's look at it.

Before we look at the opportunity, lets just check out all the advantages and there are lots of them!

- Anyone can learn the business in around 2 weeks

- It takes less than an hour a day in terms of work

- You only need a small amount of money $500.00 +

- You only need a computer and an online connection and your all set

- No staff stock or hard work required

- There are profit opportunities every day

- There is never a recession in this business

- If you have $500 you can borrow another 95,000 to invest with no credit checks

So what is this business?

It's becoming a currency trader from home - before you say I couldn't do that! You can, anyone can.

People all around the world are trading currencies online and making money.

Currencies constantly fluctuate up and down and trend for a sustained period, up or down ( trends) and your aim is to buy strong currencies, against weak ones and you have one other huge advantage which is leverage.

Your broker will give you leverage of 200:1, meaning any amount you have in your account, can be leveraged by 200 x so, put down $500 and you can trade $100,000.

How to Trade

If you can lock into and hold trends and use leverage wisely, you can make stellar gains.

Of course leverage creates risk and it's your job to manage it.

The best way to trade is to use forex charts and simply spot repetitive price patterns.

Currency movements reflect human nature which is constant and show up in patterns that repeat.

With a little practice you can spot these patterns, trade them and follow trends and the ones that don't work out, you cut your losses quickly.

Sure you will have losses (there your overhead) but keep them small and run the big profits, with leverage on your side and you can make money fast and build wealth.

The real key to this business is money management.

If you can keep your losses small and run the big trends, you will make money but you must understand to win you have to take losses, there part of trading and you must keep them small.

Anyone can learn currency trading and anyone can win - but most traders lose because they lack discipline. If you have a simple robust method based on charting and discipline you can win.

Currency trading is a simple business to learn and if you have the right attitude, you can not only make a nice second income, you could make a life changing one.

Sure it's a challenge, but its one that you can take on and one you can win. Discover the exciting and lucrative world of currency trading online and you could soon be making money fast - are you ready?

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Day Trade Forex Successfully

By Dave Atkinson

Set your rules out first

An Overview

So, you want to make big bucks trading the markets? We've heard all the stories of how fortunes were made in the time it takes to say, "where's the keys to my Porsche?" But can it be done? Well - maybe. And you want a piece of the action, yes? And I don't blame you. Trading for a living, for me, is the best occupation there is. No boss, no overheads to speak of, work when you want, anywhere you want, freedom; just you, the computer, and your plan. Plan? What plan?

Of course, 'plan'. Anything in life worth doing must have a plan of sorts. Trading is no different. In fact trading without a plan is asking for trouble of the most serious kind, financially speaking. You must have a plan. Read on.

The content of this very modest document has been the subject of many books, has been studied in depth by the very best of us, and will be debated for years to come. My aim here is to plant a seed that hopefully will steer you in the right direction thus saving you countless dollars, not to mention heartache and ruin.

Before you start to lay your hard-earned money on the line, there are many, MANY, things that need to be taken into consideration. The very first lesson to learn quickly is that the guys and gals who trade the markets for a living, the professionals, are not going to think twice about taking that money from you. They know all the tricks in the book, and a few more to boot. The idea is to act and think like those professionals and eventually become one. The profits will then begin to flow.

If you have no idea what you are doing, then you may as well just mail a cheque to those above-mentioned professionals and leave it at that, saving a lot of time.

On the other hand, after losing 'quite a bit' in the markets, I copied them and you could do the same. Learn their tricks. In short, study, study some more, then continue studying. As they say, 'knowledge is a powerful thing'.

Everything will then fall into place.

Where do I start?

Trading is very, very easy. Making a consistent profit is not - unless you have the plan we talked about earlier; a master plan. You need to learn, and sustain, some good habits. The primary weapon in your arsenal in fighting your opponents is getting the odds in your favour. Gaining an EDGE. Just like the casinos. Take a look at the house edge in the casino and how small it is. Something like 2.5%, this is enough to make them a fortune over time! It's just the same with trading the forex markets, get yourself an 'edge'.

Let's stay with the casino example for a moment. They often have losing days when a punter will win big, but at the final reckoning; those boys will be in the money. And that is because of the 'edge'. Your edge starts here. It's not one item to concentrate on but your whole approach to trading. Sound complicated? Not really, when you break it down into its component parts. We'll do this now with headings and sub-headings. There really is no point in doing this exercise if you only pay lip service to it. You must follow your rules because they will get you into the money, no argument.

Rules

There's no point in having trading rules if you don't follow them, which very nicely brings us to our only golden rule.

FOLLOW YOUR DEFINED RULES RIGIDLY

This rule may sound silly but think about it, how often do you break minor rules in some other pursuit such as driving, sport, work? Sometimes it can be costly, in forex it can be very expensive indeed, account-wise.

My forex rules are split into three sections, you may wish to do the same:

a) General - similar to laws

b) Trading - similar to regulations

c) System - well, rules when actually trading your system

Remember, this is a very short article on the ways that I have tackled the problem of gaining an edge in my trading, and in trying to emulate the professionals. This is by no means the only way, so you will need to address your trading traits in a similar manner to extract those profits from the market that we all aspire to. Let's look at the general rules.

The reason you are reading this is because you want to make money. I have been in your shoes doing exactly the same thing, but at the wrong end of an ฃ8,000 account. Yes, all gone! It wasn't the first account that I had delivered to 'the professionals' so something HAD to be done. I made rules and divided them into sections, analysing them yet further. Here are my general rules that you may want to consider:

a) General rules

ท Work/study hard continuously, knowledge is essential, but

ท Strike a balance, have a life. Trading at all times will make you stale

ท Take responsibility for every decision that affects your trading

ท Self-belief in your aim, in what you are trying to achieve

ท Do you want to trade full time or part time, how many hours per day?

ท What IS your aim, what do you want to get out of it, know yourself?

ท The only place where success comes before work is in the dictionary

ท Treat trading as a business and organise it as such

A whole book could be devoted to just the above section, this article cannot delve too deeply into what only you can answer for yourself. Please take the time to write down your rules and how you will address them. Your trading will evolve for the better I assure you.

b) Trading rules

ท What type of trader am I, do I want action, stress etc?

ท Have a system that fits your trading style

ท Become good at one style, tweak it to suit you

ท Keep an open mind for each and every trade

ท Do not form opinions on the market, let it tell you where it's going

ท Do not listen to the opinions of others

ท The words 'hope' and 'wish' are not in your trading vocabulary

ท Trade with money that is not indispensable, can you afford to lose it?

ท Learn to take losses as part of the business, learn from them

ท Take regular breaks from trading

ท Don't over commit yourself, not too many open positions

ท Stand aside if you are not sure about a trade

ท Do not add to losing positions

ท Keep the dollar signs away, try to score points

ท Without fail, have a trading plan and trade that plan

That last point in the list brings us to our final section in honing our trading skills, and making a living from trading the currency markets.

c) System rules

Most aspiring traders hope to win on every trade. This is just not possible and there will be losing trades. It is a fact of trading life. It should not be taken as a failing of your rules or system when these occur. Rather, it highlights how good your rules are in dealing with those losses. The aim is to win more than you lose by utilizing the 'edge' described in the previous paragraphs. This 'edge' is gained by following your rules religiously, coupled with a trading system that suits your style. I have managed to do this after almost ten years of trading and using many differing systems, styles, and techniques. We will add to your edge in this section. As a minimum your system should include:

ท What time frame you will be trading

ท The times not to trade

ท Clear and unambiguous means of entry into the trade

ท The reasons for entering and exiting the trade

ท What your means of exiting the trade will be

ท What size your stop loss should be

ท Will you use trailing stops

ท What position size will you use

ท Dealing with news announcements?

ท Will you scale out of the position etc. etc.

Each system has its own merits (or lack of) on dealing with the problems presented by the markets on a daily basis. Another example that I will mention is my own unwritten rule that I never trade on the first Friday of every month, this is when the NFP report is released and the markets tend to be a little too volatile for me. This is a lesson that I have learned the hard way (and I've paid for that lesson handsomely).

You can see, then, that your rules can evolve as your trading experience grows. You will also see that you will become more confident in your trading as you add rules to your overall trading system. Sometimes though these rules will be added after experiencing some drawback, or even a minor disaster, but this is all part of the learning process. You can bet your bottom dollar that the top traders amongst us have suffered a disaster or two along the way. The idea is to learn from those mistakes.

The trouble is that it's difficult to learn a lesson by the written word alone. Some form of interaction is best in order to firmly plant that lesson in our brain. This is where experience comes in. But, I firmly believe that these pages will get you started on the right path. My own system has very clear rules on the items mentioned above, plus many more, keeping me out of trouble when my money is on the line. Before I even pulled up a chart onto my computer, I started by asking myself what I actually wanted my new system to address by making a list. I already had most of the General, and Trading rules in place, in fact I have added to them fairly recently, but I wanted a whole new set of System rules. These are the items on my list that enabled me to build a new, easy to use, profitable system:

ท First and foremost it must trade with the trend

ท Must be good for all currency pairs

ท Must be good for all time frames

ท Must try to get me into the big moves of the day

ท Must be user friendly

ท Must be simple

ท Must utilize more than one of my strategies on the same chart

ท Must keep losses to a minimum

ท Must enable decision-making at a glance

ท I must be able to use aggressive/non-aggressive tactics

ท Must have a higher time frame and trend confirmation

ท Must have clear and unambiguous accurate entry signals

ท Must also give clear re-entry signals into trends

ท Must tell me when to exit

ท Must have multi-timeframe trading on one chart

ท Must give an audio alarm when signals are generated (important)

ท Must stop me from overtrading (important)

ท Must stop me from fishing for tops and bottoms (important)

Don't take any part of this set-up lightly, as it will definitely pay dividends at a later stage of the whole process. The last two items on the list had cost me dearly in the past. The audio alarm is to call me to the computer when a trade presents itself, this way I do not need to stare at the screen all day. No more missed opportunities. Perfect.

The biggest task was to convert those 'must haves' into a working system that enabled me to trade for a (profitable) living. This has been achieved after no small amount of work, blood, sweat, and tears! In some small way, I hope that I have given you a base on which to build your own trading strategy.

The Black Dog Trading Strategy goes from strength to strength. I wish you all the luck in your trading endeavors.

If you prefer to by-pass that final stage and use a system that has been created from the points listed above, then please drop by my website to view for yourself.
http://blackdogsystem.co.uk

The website has plenty of free downloads. Don't miss out.

Dave Atkinson May 2008

Dave has been trading US stocks, UK stocks, e-minis and forex for almost 11 years and has finally found time to start his own site at http://blackdogsystem.co.uk
The Black Dog is currently slaying the markets, see the Black Dog System for high-probability trades.

Ultimate Forex Trading System

By Dane Bergen

Forex trading is finding a large number of takers these days. The Forex market which is the largest and most happening market in the world, offers lots of opportunities for people to make money. Forex trading is something that comes only with experience. You may not for instance be able to build the ultimate Forex trading system suited to you in a single day. This is so because there are many sectors involved in the field of currency exchange. Typically these include entities such as multinational corporations, banks and individuals. In many cases the governments too step in, particular when there are wide fluctuations in a particular nation's currency.

You will need to have at least the basic understanding of the market before you begin to trade in currencies. You can gradually go about building the ultimate Forex trading system with experience. Experienced professionals in the market always advise beginners to initially open small accounts and later on graduate to bigger accounts. This is the best possible way to make money in the currency trading market. Building your own system is much simpler than what you may actually think.

Whenever you are building the ultimate Forex trading system you should first of all answer the question of as to what type of trader you really are. A realistic assessment will enable you to answer this question. This is so because there are various types of traders. For instance there are the patient ones while there are also the ones who seek more action and are impulsive traders by nature. An honest assessment of your nature will enable you to build the right system for you. A long term trend for instance will suit a patient trader better. Similarly those are impulsive by nature can go in for what is termed as swing trading. Then there are others who can also think of day trading which incidentally is considered the most risky proposition.

Being flexible and able to predict market conditions is the key to building the ultimate Forex trading system. Most times systems fail only because they cannot predict the fluctuations in price. You will also need to be patient during certain situations. You should not in any circumstance jump the gun and execute any trade signal before getting the confirmation. You should always be prepared to handle the volatility of the market in a calm and calculated manner. A careful analysis of all these factors will help you building the system best suited to your needs.

To get your complimentary Forex Trading Systems course, or for my personal Forex Trading advice, visit my website by clicking the links.

Forex Scalper

By Dane Bergen

A scalper is a person who attempts to make money by holding a position for a very short period. Scalpers normally are not those persons who want to invest in market and wait for a long time to get the profit from their investments. What they are actually doing in business like this is a sort of gambling. They aim to make a lot from a small investment and the element of risk will normally be higher in these types of deals when compared to that of a normal business. Horse racing is known as the best business place for the scalpers to play with.

Scalpers are now commonly seen in stock exchanges and international money market where foreign currencies are traded by the financial institutions like banks and individuals.

An attempt to be a scalper in international money market may not be as easy as you do scalping works at a stock exchange. A person attempting to earn a lot within a short span of time or within hours at a stock exchange will have to get the space and opportunity to be at the office of the trade centre and observe the changes. Lack of a common platform in forex trade makes it difficult for a forex scalper to perform well in this field.

If you want to be a successful forex scalper you will have to be an expert in understanding incidents that may lead to forex market fluctuations. To understand the market fluctuations, you must get a good training in trade forex.

If you want to be good forex scalper, you will have to do same day trading. It will enable you to understand the pulses of the money market. It will work the best when the market moves slowly. Normally the people who expect immediate profits from their tiny investments will not dare to play with the big sharks in the market. They may enter and exit from the market in lightening speed. To do so you should be in a position to feel the changes and act accordingly. If you stay there a moment you may lose your money.

A forex scalper should have an account that would allow him to trade with multiple currencies. Normally a person who acts as a forex scalper should have the ability to take a firm decision for each day. It will help him to enter into a number of transactions a single day.

To get your complimentary Forex Trading Systems course, or for my personal Forex Trading advice, visit my website by clicking the links.

Forex Market

By Dane Bergen

Forex or foreign exchange market is the largest of all the financial markets that now exist in the world. A large number of multinational corporations, banks, central banks, currency speculators and other financial markets are involved in this sale of international currencies. These participants cannot directly involve in the sale of currencies. They can participate in the trade only through brokers or banks functioning in this wing of international trade.

When compared to other market, forex market possesses some unique features. It include its extreme liquidity, size, geographical dispersion, long trading hours and the variety of factors that influence the exchange rate of the currencies involved in the trade.

This international currency trading platform is utilized by the institutions like companies, fund mangers and banks to purchase and sell out international currencies. Capital flows that arise from deal in goods and services and cross border investments are the main motivating factors behind international currency trade. The sums involved in this trade will normally be very huge and most of the time a single deal in forex market will come between 3 million to 10 million US dollars.

There will be three types of participants in forex market; customers, bank and brokers. Commercial banks are the most active participants in the forex market. A large bank may trade millions of dollars a day on behalf of its customers. They are also involved in large amounts speculative trade every day by dominating the market. Until recently, a large volume of speculative trade was handled by the brokers who work in this field. With the introduction of electronic forex trading systems, much of the business has moved to these devices that work twenty four hours a day without break.

The international companies which require foreign currencies for making payments for their transactions constitute an important part of this market. They normally deal with small sums of money when compared with deals of banks and other financial speculators.

National central banks also play a crucial role in this market of currency. They often attempt to make use of foreign exchange reserves in their country to stabilize the money trade market. Mere rumor of intervention from the part of a central bank might be enough to stabilize currency.

Investment management firms who handle large accounts such as pension funds and endowments on behalf of their customers also make use of forex market to facilitate their transactions in foreign securities.

To get your complimentary Forex Trading Systems course, or for my personal Forex Trading advice, visit my website by clicking the links.

Forex Brokers

By Dane Bergen

The forex market is the largest market in the world. It is also one of the most dynamic and complex markets that you can find anywhere in the world. Billions of dollars are transacted during trade each day in the currency trading business. The hugeness of the market is what makes this market a complex place to trade to some extent. Then there is the factor of various currencies that needs to be taken care off. Beginners may feel intimated with all these aspects whenever they are starting out on forex trading for these reasons. This is where they can seek the help of forex brokers, who can trade on their behalf. They act as an intermediary between the two parties involved, the buyer and the seller.

Forex brokers could be a firm or an individual, who can help you with forex trading. They are professionals in the area of foreign exchange with vast knowledge about the trading practices that are prevalent in this market. Although their working mechanism, as such is similar to that of stock brokers, there is a slight difference between them though. In this case they do not charge a commission, which is so typical of equity brokers. They instead take a certain percentage of the profits earned from trading as their fees.

Most of the forex brokers are tied to large financial institutions or banks. They are also required to hold a license and also register themselves with bodies such as the Futures Commission Merchant or FCM which is in turn regulated by another governing body the Commodity Futures Trading Commission or CFTC. With the advent of the internet you can also find forex brokers having their own online trading facilities. A simple online search can put you across a number of such online trading facilities. This way they offer you an inexpensive, as well as quick way of trading right from the comforts of your home, day or night.

Most of the online sources of forex brokers also come with trial or demo accounts. You can use them to sharpen your trading skills. These demo accounts help you get a hang of the market. This way you can also get acquainted with the various trade practices and terms that are involved in currency trading. A currency trading broker can help you guide through the various trading options that could yield the maximum profit to you, in this highly lucrative market. All these reasons make their services invaluable when it comes to the currency trading business.

To get your complimentary Forex Trading Systems course, or for my personal Forex Trading advice, visit my website by clicking the links.

How to Trade Currencies With Less Risk

By Arkaitz Arteaga

Testing out currency pairs is the cornerstone of forex trading. To do this a plan must first be kept in place. The use of the plan allows the trader to examine which currency pair reacts the best and allows for higher profits. For example, if USD/CHF, GBP/USD and EUR/USD were tested using the plan, and the results showed that USD/CHF had reacted positively, this currency pair is concentrated on more than the others.

The first rule of trading currencies is to never enter into a trade without researching on it. The forex market is based around researching the market and analyzing the different currency pairs available to exchange. It is recommended that each trader have a plan in place before entering the forex market. However, each plan must be tested before entering the market. This can be done through demo accounts.

Another rule when it comes to trading currencies is to never trade a currency pair which the trader does not know about. Trading involves many risks. As well as that, it is understandable that there are many currency pairs available to trade with that it may be overwhelming. However, it is not advised that a trader just pick any currency pair to trade with. High amounts of money can be lost through this form of thinking. By pre-testing currency pairs, it allows the trader to have a fair idea of how each one works. Thus, going for predictable currency pairs is always the best option.

Each currency pair reacts differently to outside influences. For example, some currency pairs can be effected by government deficits or surpluses, whilst others won't be greatly effected by it. Fundamental analysis allows a trader to determine which currency pairs are effected and which one's aren't. Each pair is unpredictable in their own way. Thus, by using the information found through fundamental analysis and testing out currency pairs in demo accounts, a trader can get a fair idea of each pair reacts in certain situations.

Technical analysis is also a major key to testing out each currency pair. It has been shown, through vast amounts of research, that some currency pairs differences can be found more easily then others through technical analysis. For example, through moving averages, money flow index's and relative strength index's. However, finding these differences through technical analysis is not an easy thing to do. Only experiences traders are able to find the little differences.

Since each currency pair is different, it is up to the trader to find the one that suits them best. The currency pair that is chosen, should allow them to meet their goals when it comes to the forex market. As well as that, it should suit their personality and the situation that they are in. For example, a trader that only does trading as a side-job. This would limit the amount of time they can spend on the forex market. Thus, they would need a low-risk currency pair, which doesn't need constant surveillance and is fairly predictable. The use of a mentor can also help a trader. The mentor can examine a trader and their personality and based on their years of experience and judgment skills, can give educated advice to the trader.

This article has shown the importance of developing a plan when it comes to trading currencies. As well as that, ways in which each currency is different and how they can be effected by outside influences.

Arkaitz Arteaga - MarketStock.net

For more information about Forex visit Forex - MarketStock.net

 

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