The use of currency trading tips has been a very useful guide in the comprehension and application of strategies and decisions in the currency business environment. The currency trading tips has based its information on meticulous research and assessment of the economic factors surrounding the market. This is very important considering the fact that failure and success in the currency trading market is separated by a very think line.
This means that one wrong move could easily lead to failure due to the level of competition and the very fast paced and complex environment. That is why the currency trading tips carefully covers all the necessary topics that will guide traders
and marketers to find the best solutions in the easiest way and most risk free way possible. But the main principle used by the forex trading tips and guide is that money is a very liquid investment.
This means that the value of money is unstable and could go up and down depending on the economical condition of the country which is certainly influenced by the political and social aspects within their territory. Many companies who establish their own currency trading tips assesses and observes the country and currency by considering all the variables involved. Once there has been a crisis, it would surely lead to economic deterioration and ultimately, less value for the money. Many currency traders have adopted this method of consideration which has tremendously helped them to understand and comprehend the situation. The forex trading tips has thought people that knowledge and information is the best weapon in the forex trading market. Download your Forex ebook @
href="http://tinyurl.com/n3ukqo">http://tinyurl.com/n3ukqo now.
Author: Candy
This article is free for republishing
Source: http://www.articlealley.com/article_973681_19.html
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Showing posts with label Forex. Show all posts
Showing posts with label Forex. Show all posts
FOREX, trading foreign currency
FOREX trading is all about trading foreign currency, stocks, and like type of products. The currency of one nation is weighed versus the currency of a different nation to determine importance. The price of that foreign currency is taken into consideration when trading stocks on the FOREX markets. The majority countries have control over the price of that countries price, relating the currency, or money. Those who are often involved in the FOREX markets include banks, great businesses, governments, and financial institutions.
What makes the FOREX market poles apart from the stock market?
A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the nation the money is being invested in. The majority all transactions taking place in the FOREX market are going to take place through a adviser, such as a bank.
What really makes up the FOREX markets?
The foreign exchange market is made up of a variety of transactions and countries. Those involved in the FOREX market are trading in copious volumes, generous amounts of money. Those who are involved in the FOREX market are commonly involved in cash businesses, or in the trade of very liquid assets that you can get rid of and purchase fast. The marketplace isgenerouse, very generous. You could consider the FOREX marketplace to be much better than the stock market in any one nation overall. Those involved in the FOREX market are trading day after day twenty-four hours a day and now and again trading is concluded on the weekend, but not all weekends.
You might be surprised at the amount of citizens that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an usual day after day trading volume. This is a enormous quantity for thequantityr of day after day transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!
The FOREX marketplace is not something novel, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more folks and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from state to state, but as the popularity in this market continues to grow so could that number.
Author: wbdoyle
This article is free for republishing
Source: http://www.articlealley.com/article_978706_19.html
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What makes the FOREX market poles apart from the stock market?
A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the nation the money is being invested in. The majority all transactions taking place in the FOREX market are going to take place through a adviser, such as a bank.
What really makes up the FOREX markets?
The foreign exchange market is made up of a variety of transactions and countries. Those involved in the FOREX market are trading in copious volumes, generous amounts of money. Those who are involved in the FOREX market are commonly involved in cash businesses, or in the trade of very liquid assets that you can get rid of and purchase fast. The marketplace isgenerouse, very generous. You could consider the FOREX marketplace to be much better than the stock market in any one nation overall. Those involved in the FOREX market are trading day after day twenty-four hours a day and now and again trading is concluded on the weekend, but not all weekends.
You might be surprised at the amount of citizens that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an usual day after day trading volume. This is a enormous quantity for thequantityr of day after day transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!
The FOREX marketplace is not something novel, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more folks and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from state to state, but as the popularity in this market continues to grow so could that number.
Author: wbdoyle
This article is free for republishing
Source: http://www.articlealley.com/article_978706_19.html
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Judge the best forex software
The pre-requisite that any trader would want to have before trading in the online forex market is the best forex software. Though, it is not tough to find the best yet as a trader you have to make sure that it is really good and just not ‘best in nominal terms’.
The best forex trading software would guarantee performance and would come with an ability to escalate profit. It would also come with qualities of being user-friendly, its mechanization capabilities and the manner in which it fits to the requirement of a particular trader. Yet the end is to aim for software that yields maximum returns.
Forex software ought to prove itself as a good trading tool and should be able to prove its potential. It is solely a trader’s decision on which program to go for depending on what he expects form the program as regards the profits or outcome so to say. And surely he has a lot to pick from.
Ideally a trader goes for automated forex trading
software that works on its own without putting the trader through a stressful time. Here also he can choose from fully-automated or semi-automated system. The automated program makes the trading process simpler and minting money faster. But other non-automated tools are also equally capable of generating good amount of profit and the trader should consider them too. The trader can easily decide up on what to choose based on the reports posted on websites about particular software.
Forex trading has developed with advancement in technology and is helping traders make good money with the assistance of software that are again renewing day by day. A trader has own requirements of the software before the actual purchase of it, and these may vary from profit generating capacity, it’s type and the manner of working and so on. The trader has to make sure that the software he has decided to buy fulfills all his requirements and fits best into his working style.
Trader can also download forex trading software that fits to his necessities. Any kind of software is easily available online and the trader can match it to his requisites before initiating with the buying decision. The buying of forex trading software is also eased by the reviews posted on the net by other users or professionals.
An alternative comes in the form of cheap forex trading software which again can be either bought or downloaded. It being cheap does not mean that the efficiency is doubtful. Even a cheap software can do the needful aptly thus producing maximum revenue for the trader.
forex trading requires you to be a risk taker. And with online forex trading coming up you need to be an expert in forex trading software. Online agencies provide you with forex software reviews which come handy.
Author: stevenz zed
This article is free for republishing
Source: http://www.articlealley.com/article_981480_15.html
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The best forex trading software would guarantee performance and would come with an ability to escalate profit. It would also come with qualities of being user-friendly, its mechanization capabilities and the manner in which it fits to the requirement of a particular trader. Yet the end is to aim for software that yields maximum returns.
Forex software ought to prove itself as a good trading tool and should be able to prove its potential. It is solely a trader’s decision on which program to go for depending on what he expects form the program as regards the profits or outcome so to say. And surely he has a lot to pick from.
Ideally a trader goes for automated forex trading
software that works on its own without putting the trader through a stressful time. Here also he can choose from fully-automated or semi-automated system. The automated program makes the trading process simpler and minting money faster. But other non-automated tools are also equally capable of generating good amount of profit and the trader should consider them too. The trader can easily decide up on what to choose based on the reports posted on websites about particular software.
Forex trading has developed with advancement in technology and is helping traders make good money with the assistance of software that are again renewing day by day. A trader has own requirements of the software before the actual purchase of it, and these may vary from profit generating capacity, it’s type and the manner of working and so on. The trader has to make sure that the software he has decided to buy fulfills all his requirements and fits best into his working style.
Trader can also download forex trading software that fits to his necessities. Any kind of software is easily available online and the trader can match it to his requisites before initiating with the buying decision. The buying of forex trading software is also eased by the reviews posted on the net by other users or professionals.
An alternative comes in the form of cheap forex trading software which again can be either bought or downloaded. It being cheap does not mean that the efficiency is doubtful. Even a cheap software can do the needful aptly thus producing maximum revenue for the trader.
forex trading requires you to be a risk taker. And with online forex trading coming up you need to be an expert in forex trading software. Online agencies provide you with forex software reviews which come handy.
Author: stevenz zed
This article is free for republishing
Source: http://www.articlealley.com/article_981480_15.html
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Five Stages of Competency
Monday, March 2, 2009
When we decide to want something and decide to go for it. The first question that comes into our mind is that "Can I do it?" Right, this happens to everybody. In this article, we will bring you to the five steps to competency. We will see the development how human can change from not be able to do what we want into be able to do without even think about it.
Before we go into those stages, let's talk about why we need to understand this. In order to be more successful, people need more skills. No matter they are financial skill, career skill, relationship skill etc. We go through this so that we can acquire as many of the skills as we need to succeed. We will understand that what is worth learning or doing, it worth doing badly at first. All learning processes start from exactly the same point. Have you ever notice that most of the skills we start from knowing nothing at all? Let's say reading. When we were children, we do not know how to read. We started learning to read step by step. Then we started to notice that we can read some of the easy words. After practicing for a long while, we can read for just a glance. Here are the exact the same stages that we need to go through once we decide to acquire a new skill.
1. Unconscious incompetence: In this stage, we have ignorance. We do not know what to do and how to do it. We have no discipline and no skill. People in this stage can not deliver any result in the area. We do not even know that we need that skill in order to perform what we want.
2. Conscious incompetence: We start to notice that we lack the skill on the area. We feel painful and feel that to do the thing is difficult. This is when people start to give up because they know that they can not do it at that moment and they don't know how. Answer, learn it. Unfortunately, just a handful of people are willing to take a learning step. Not many people have enough discipline to train themselves until they get into the next stage.
3. Conscious competence: After the learning phase, we start to know that we are able to perform. We are not any more afraid of doing it. The things we do are easy now and we have confidence in the area. We have discipline on the skill and our skill grows significantly. We can now be in the mastery mode of the skill.
4. Unconscious competence: Once the skill has been practiced regularly. It becomes your asset. It dwells inside you. You are programmed now to make use of it any time you want to. Discipline is now not a major concerned since it is already there. The good example to this is the musician skill. A musician can stop play his talented instrument for decades. Once he comes back to it, he can still play it fluently. Or driving skill is another unconscious competence. Once you master it, it is now yours.
5. Conscious competence of conscious incompetence: This is the level of the teachers or master trainers. We have higher knowledge of the skills. We realize the area of the skill so well that we can train other people to practice the skill. We understand every aspect and are able to see the weak points of the incompetent people.
The five stages of learning will help us understand the learning process of any skill we require for our success. We can apply and be patient when we are in the lower stage and understand that to move up into the next level require time and efforts. But once you master it, it will be with you forever
Article Source: http://www.articlesbase.com/self-help-articles/five-stages-of-competency-164891.html
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Before we go into those stages, let's talk about why we need to understand this. In order to be more successful, people need more skills. No matter they are financial skill, career skill, relationship skill etc. We go through this so that we can acquire as many of the skills as we need to succeed. We will understand that what is worth learning or doing, it worth doing badly at first. All learning processes start from exactly the same point. Have you ever notice that most of the skills we start from knowing nothing at all? Let's say reading. When we were children, we do not know how to read. We started learning to read step by step. Then we started to notice that we can read some of the easy words. After practicing for a long while, we can read for just a glance. Here are the exact the same stages that we need to go through once we decide to acquire a new skill.
1. Unconscious incompetence: In this stage, we have ignorance. We do not know what to do and how to do it. We have no discipline and no skill. People in this stage can not deliver any result in the area. We do not even know that we need that skill in order to perform what we want.
2. Conscious incompetence: We start to notice that we lack the skill on the area. We feel painful and feel that to do the thing is difficult. This is when people start to give up because they know that they can not do it at that moment and they don't know how. Answer, learn it. Unfortunately, just a handful of people are willing to take a learning step. Not many people have enough discipline to train themselves until they get into the next stage.
3. Conscious competence: After the learning phase, we start to know that we are able to perform. We are not any more afraid of doing it. The things we do are easy now and we have confidence in the area. We have discipline on the skill and our skill grows significantly. We can now be in the mastery mode of the skill.
4. Unconscious competence: Once the skill has been practiced regularly. It becomes your asset. It dwells inside you. You are programmed now to make use of it any time you want to. Discipline is now not a major concerned since it is already there. The good example to this is the musician skill. A musician can stop play his talented instrument for decades. Once he comes back to it, he can still play it fluently. Or driving skill is another unconscious competence. Once you master it, it is now yours.
5. Conscious competence of conscious incompetence: This is the level of the teachers or master trainers. We have higher knowledge of the skills. We realize the area of the skill so well that we can train other people to practice the skill. We understand every aspect and are able to see the weak points of the incompetent people.
The five stages of learning will help us understand the learning process of any skill we require for our success. We can apply and be patient when we are in the lower stage and understand that to move up into the next level require time and efforts. But once you master it, it will be with you forever
Article Source: http://www.articlesbase.com/self-help-articles/five-stages-of-competency-164891.html
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How to use Forex Trading Alert services to produce great returns?
Monday, May 5, 2008
Copyright (c) 2008 David Lloyd
Some Forex traders dream about finding great set and forget forex trading alert services which are easy to follow, profitable and convenient. They would then just copy the daily forex recommendations into their Forex broker dealing station and watch their trading account grow and grow.
Recently over 250 online Forex trading alert services were reviewed and alert services like the one described above do exist!
The big challenge to the average Forex Trader is firstly, finding forex trading signal services that fit the success mould and then secondly, making sure that the service is above board (credible). This article will address the first question of how to find possible forex trading alert services to consider.
The method mostly used by many forex traders is to search the Web using a good search engine and then to slowly search through the results to find say 20 ones to consider for evaluation. This is a good starting point but remember to uses appropriate search terms. Search term like Forex Trading signals, Currency trading alerts and Forex alert services result in different search results. The hard work is well worth it. While you are on the search engine results pages do not neglect the paid adverts to further increase your chances of finding great forex trading signal services. You can find some unexpected gems clicking on these.
Another good place to search for great forex trading signal services are Forex service review sites. Some of these sites give objective and paid reviews of many forex trading alert services on the market and allow users to post comments on their own personal experiences. Your job can also be reduced considerably as some of the review site list over 100 forex trading services. These are probably the best source of good forex trading alert services, as you get direct user feedback as well. We have also found these to be one of the best guides to the creditability of alert services. Use search engines to firstly find the review sites. You can also get direct links from the review sites to the Forex trading signal service providers.
You can get very useful information on Forex trading alert services from Forex bloggs and discussion forums. Your return on effort and time if you use discussion forums will not be as high as the methods already mentioned. This method is better for establishing the credibility of a service that using it to find more Forex trading signal services.
Word of mouth is an often overlooked method. Use your network of other forex traders to enquire whether they have had any good experiences with forex trading alert services.
Using the methods above alert services producing 27 000 pips a year and returns of between 200% and 1000% on capital used, have been found. Not a bad investment of time and effort but 250 alert services had to be researched to get there. You too can benefit from following the process described in this article and well as the articles to follow. It is well worthwhile.
The activities above should provide you with a list of between 20 and 50 Forex trading alert services to consider. How you then water these down to the few that will make you money is the subject of the next article to be published in the article directory. Make sure to watch out for them.
------
Learn how you can make money from Forex Trading alert services by tapping into the experience that David Lloyd has in this field by visiting Forex Trading Alerts or contacting him at davidlloyd@forextrading-alerts.com
This article is free for republishing
Source: http://www.articlealley.com/article_529064_19.html
Author: Mary McArhur
Read More......
Some Forex traders dream about finding great set and forget forex trading alert services which are easy to follow, profitable and convenient. They would then just copy the daily forex recommendations into their Forex broker dealing station and watch their trading account grow and grow.
Recently over 250 online Forex trading alert services were reviewed and alert services like the one described above do exist!
The big challenge to the average Forex Trader is firstly, finding forex trading signal services that fit the success mould and then secondly, making sure that the service is above board (credible). This article will address the first question of how to find possible forex trading alert services to consider.
The method mostly used by many forex traders is to search the Web using a good search engine and then to slowly search through the results to find say 20 ones to consider for evaluation. This is a good starting point but remember to uses appropriate search terms. Search term like Forex Trading signals, Currency trading alerts and Forex alert services result in different search results. The hard work is well worth it. While you are on the search engine results pages do not neglect the paid adverts to further increase your chances of finding great forex trading signal services. You can find some unexpected gems clicking on these.
Another good place to search for great forex trading signal services are Forex service review sites. Some of these sites give objective and paid reviews of many forex trading alert services on the market and allow users to post comments on their own personal experiences. Your job can also be reduced considerably as some of the review site list over 100 forex trading services. These are probably the best source of good forex trading alert services, as you get direct user feedback as well. We have also found these to be one of the best guides to the creditability of alert services. Use search engines to firstly find the review sites. You can also get direct links from the review sites to the Forex trading signal service providers.
You can get very useful information on Forex trading alert services from Forex bloggs and discussion forums. Your return on effort and time if you use discussion forums will not be as high as the methods already mentioned. This method is better for establishing the credibility of a service that using it to find more Forex trading signal services.
Word of mouth is an often overlooked method. Use your network of other forex traders to enquire whether they have had any good experiences with forex trading alert services.
Using the methods above alert services producing 27 000 pips a year and returns of between 200% and 1000% on capital used, have been found. Not a bad investment of time and effort but 250 alert services had to be researched to get there. You too can benefit from following the process described in this article and well as the articles to follow. It is well worthwhile.
The activities above should provide you with a list of between 20 and 50 Forex trading alert services to consider. How you then water these down to the few that will make you money is the subject of the next article to be published in the article directory. Make sure to watch out for them.
------
Learn how you can make money from Forex Trading alert services by tapping into the experience that David Lloyd has in this field by visiting Forex Trading Alerts or contacting him at davidlloyd@forextrading-alerts.com
This article is free for republishing
Source: http://www.articlealley.com/article_529064_19.html
Author: Mary McArhur
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The Day Trade Forex System: How to Choose An Online Forex Brokerage Firm
Thursday, August 23, 2007
What to look for in an online Forex Brokerage Firm:
1. Low Spreads
In Forex Trading the 'spread' is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 3-5 pips.
2. Low minimum account openings
For those that are new to trading, and for those that don't have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.
3. Instant automatic execution of your orders
This is very important when choosing a Forex firm. You want instant execution of your orders and the price you see and 'click' is the price that you should get. Don't settle with a firm that re-quotes you when you click on a price or a firm that allows for price 'slippage'. This is
very important when trading for small profits.
4. Free charting and technical analysis
You need a firm that gives you access to the best charting and technical analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders totrade directly on the charts!
5. High Leverage
You want high leverage-the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.
6. Hedging Capability
You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!
7. A realistic demo account trading capital balance that reflects the actual dollar amount that the trader will start live trading with. It does the demo trader no good to start out demo trading with a $50,000 account, when in real life he will only start out with $1,000. A forex brokerage needs to offer the trader a demo account starting balance other than the standard $50,000.
After alot of research and personal experience, the firm that I recommend with the above-mentioned benefits is Capital Markets Services LLC (CMS Forex LLC).
Open a free unlimited demo account and start practicing!
The goal of the Day Trade Forex System is to instruct and teach potential traders how to day trade the currency markets and what to look for in an online forex brokerage.
The objective of day trading is to trade the intra day market moves to try to gain small to medium sized profits in any given trading day. This is how this guide will help. Most readers will not have the time or resources to 'position trade' like the major institutions and banks do. They tend to look at the big picture holding onto trades for weeks or months.
The Day Trade Forex System is specifically designed for use with the 1, 5 or 10-15 minute charts, with the goal of taking 5-30 pip profits per trade - closing bad trades out using tight stops, or hedging any losing trades. The ability to trade right off the charts makes the CMS trading platform our favorite.
We feel that the CMS trading platform offers traders the most features that fit the criteria listed above.
Cynthia Macy is the co-author of 3 forex training ebooks.
For more comprehensive trading information, visit her other websites at:
http://www.professionalforextradingonline.info
http://www.successtrading2000.com/forex
http://www.shortterminvestingsite.com
http://www.daytrade-forex.com
Keywords: trade from home pc,advanced forex training, beginning forex training, forex, currency trading
Article Source : Articles Directory
Article URL : The Day Trade Forex System: How to Choose An Online Forex Brokerage Firm
Article Category : Personal Finance
Article Author : moneybunny
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1. Low Spreads
In Forex Trading the 'spread' is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 3-5 pips.
2. Low minimum account openings
For those that are new to trading, and for those that don't have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.
3. Instant automatic execution of your orders
This is very important when choosing a Forex firm. You want instant execution of your orders and the price you see and 'click' is the price that you should get. Don't settle with a firm that re-quotes you when you click on a price or a firm that allows for price 'slippage'. This is
very important when trading for small profits.
4. Free charting and technical analysis
You need a firm that gives you access to the best charting and technical analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders totrade directly on the charts!
5. High Leverage
You want high leverage-the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.
6. Hedging Capability
You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!
7. A realistic demo account trading capital balance that reflects the actual dollar amount that the trader will start live trading with. It does the demo trader no good to start out demo trading with a $50,000 account, when in real life he will only start out with $1,000. A forex brokerage needs to offer the trader a demo account starting balance other than the standard $50,000.
After alot of research and personal experience, the firm that I recommend with the above-mentioned benefits is Capital Markets Services LLC (CMS Forex LLC).
Open a free unlimited demo account and start practicing!
The goal of the Day Trade Forex System is to instruct and teach potential traders how to day trade the currency markets and what to look for in an online forex brokerage.
The objective of day trading is to trade the intra day market moves to try to gain small to medium sized profits in any given trading day. This is how this guide will help. Most readers will not have the time or resources to 'position trade' like the major institutions and banks do. They tend to look at the big picture holding onto trades for weeks or months.
The Day Trade Forex System is specifically designed for use with the 1, 5 or 10-15 minute charts, with the goal of taking 5-30 pip profits per trade - closing bad trades out using tight stops, or hedging any losing trades. The ability to trade right off the charts makes the CMS trading platform our favorite.
We feel that the CMS trading platform offers traders the most features that fit the criteria listed above.
About The Author
Cynthia Macy is the co-author of 3 forex training ebooks.
For more comprehensive trading information, visit her other websites at:
http://www.professionalforextradingonline.info
http://www.successtrading2000.com/forex
http://www.shortterminvestingsite.com
http://www.daytrade-forex.com
Keywords: trade from home pc,advanced forex training, beginning forex training, forex, currency trading
Article Source : Articles Directory
Article URL : The Day Trade Forex System: How to Choose An Online Forex Brokerage Firm
Article Category : Personal Finance
Article Author : moneybunny
Read More......
Options Trading Strategies
Tuesday, August 7, 2007
Webster's Dictionary defines the term strategy as " 1 a) the science of planning and directing larger scale military operations, specifically (as distinguished from TACTICS) of maneuvering forces into the most advantageous position prior to actual engagement with the enemy b) a plan or action based on this. 2 a) skill in managing or planning, especially by using stratagems b) a stratagem or artful means to some end.
When applying a definition to investing in the market, we pay particular attention to the words "maneuvering into the most advantageous position prior to actual engagement" and the words "skill in managing or planning especially by using stratagems."
Picking a stock or group of stocks is only half the battle. Making the most from the chosen investment opportunity is the other half. This is where strategy comes in to play.
The wrong strategy even when applied to the right opportunity can increase risk, decrease profits and even create a potential loss. Therefore, understanding and applying the proper strategy is critical.
The actual selection of an investment opportunity from those offered normally depends on the type and style of research the investor favors and deems necessary.
This selection process, or "investment selection protocols," is a checklist of different types and pieces of data that are favored by the individual investor. These pieces of data can consist of charts, indicators, oscillators, fundamental analysis, news or even tips.
Each investor has his/her own investment selection protocol. As an investor, your strategy takes over once you complete this process and choose your investment opportunity. Inherent in the selection of the stock is expectation.
Every investor has some expectation for any chosen opportunity. Therefore a strategy must be selected which best fits those expectations.
The proper strategy will be the strategy thay allows for the highest possible return with the least amount of risk and the best possible protection that can be afforded.
Obviously, since every opportunity will have a somewhat different expectation along with different variables surrounding it, each opportunity should have a different "ideal" strategy. By and large, when choosing a stock to invest in, most investors look to purchase a stock they think will go up. The directional play is a good place to start our discussion of option strategies.
An option is a derivative trading product that is best used by investors as a hedging tool providing profit protection and profit enhancement. Although it is a powerful risk management tool, it can also be used effectively as a stand-alone trading vehicle.
Under the proper conditions, options do not have to be paired with stock or another option to be an effective trading tool. To successfully trade naked options, an investor must realize that certain options will fit certain scenarios and certain options will not.
One of the major misconceptions that investors have about options stems from the fact that most do not trade them properly. When they lose money trading them, they feel that there is something wrong with the option. They do not understand that options are on a higher, more sophisticated level when compared to stocks.
This Article Is Provided By The Options University: Options Trading Strategies For Safer Investing and Consistent Profits. Discover how to protect your investments step-by-step video tutorials, articles, free and premium trading content which can be found at: http://www.TheOptionsUniversity.com
Article Source:
http://EzineArticles.com/?expert=John_Roney
http://EzineArticles.com/?Options-Trading-Strategies&id=665459
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When applying a definition to investing in the market, we pay particular attention to the words "maneuvering into the most advantageous position prior to actual engagement" and the words "skill in managing or planning especially by using stratagems."
Picking a stock or group of stocks is only half the battle. Making the most from the chosen investment opportunity is the other half. This is where strategy comes in to play.
The wrong strategy even when applied to the right opportunity can increase risk, decrease profits and even create a potential loss. Therefore, understanding and applying the proper strategy is critical.
The actual selection of an investment opportunity from those offered normally depends on the type and style of research the investor favors and deems necessary.
This selection process, or "investment selection protocols," is a checklist of different types and pieces of data that are favored by the individual investor. These pieces of data can consist of charts, indicators, oscillators, fundamental analysis, news or even tips.
Each investor has his/her own investment selection protocol. As an investor, your strategy takes over once you complete this process and choose your investment opportunity. Inherent in the selection of the stock is expectation.
Every investor has some expectation for any chosen opportunity. Therefore a strategy must be selected which best fits those expectations.
The proper strategy will be the strategy thay allows for the highest possible return with the least amount of risk and the best possible protection that can be afforded.
Obviously, since every opportunity will have a somewhat different expectation along with different variables surrounding it, each opportunity should have a different "ideal" strategy. By and large, when choosing a stock to invest in, most investors look to purchase a stock they think will go up. The directional play is a good place to start our discussion of option strategies.
An option is a derivative trading product that is best used by investors as a hedging tool providing profit protection and profit enhancement. Although it is a powerful risk management tool, it can also be used effectively as a stand-alone trading vehicle.
Under the proper conditions, options do not have to be paired with stock or another option to be an effective trading tool. To successfully trade naked options, an investor must realize that certain options will fit certain scenarios and certain options will not.
One of the major misconceptions that investors have about options stems from the fact that most do not trade them properly. When they lose money trading them, they feel that there is something wrong with the option. They do not understand that options are on a higher, more sophisticated level when compared to stocks.
This Article Is Provided By The Options University: Options Trading Strategies For Safer Investing and Consistent Profits. Discover how to protect your investments step-by-step video tutorials, articles, free and premium trading content which can be found at: http://www.TheOptionsUniversity.com
Article Source:
http://EzineArticles.com/?expert=John_Roney
http://EzineArticles.com/?Options-Trading-Strategies&id=665459
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Make A Fortune From Forex Trading?
Thursday, July 26, 2007
Trading is a tough business. You need to either have or can cultivate the competitive edge to survive and succeed in the forex market. Fact: Trading is difficult. Trading is ruthless.
First, some basics:
What is Forex Trading?
Foreign Exchange Trading, or Forex Trading, is the financial market of the world. Selling and buying currencies is what forex trading is all about. Forex generally used by businesses and entrepreneurs looking to conduct international business and transactions.
To give you an example of Forex Trading, let us say that the United States is selling products to Canada. Canada would have to convert their money, the Canadian Dollar (CAD) into the United States Dollar (USD) to perform the transaction. So, essentially, what is happening is that Canada is buying USD currency with CAD currency for the conversion.
How can I trade in the Forex Market?
The Forex Trading market, works very similar to our stock market, with the exception that it deals with currencies. In order to trade on the Forex market, you must have a broker. Just like with the stock market, not just anyone can enter the market for trade. The Forex Market does differ from the stock market in that there is not a centralized exchange or clearinghouse to trade from. You must have a Forex Broker in order to take part in the trading.
How can I make a Profit?
To make a profit you will need to obtain a Forex broker specialized in the area. In some cases, in less serious trading cases, some people will use their local bank to handle the trade. However, if you are looking to hedge risks, convert receipts or profit at all in the Forex market, the first thing you need is a broker.
It takes a large amount of experience to begin earning large profits in Forex trading. Some people enjoy a thirty-percent return on their investments each month. To do this you must learn everything you can about Forex trading and speak with your broker about investment strategies. The internet can be a valuable tool in this area as well, there are many online Forex trading courses where you can learn just what it takes to become a competitive, profitable investor.
Some Meat and Potatoes:
One of the most destructive lies that have been spread for years about trading by the so-called trading experts, is that to succeed in trading, you must forecast or predict the future.
Nothing could be further from the truth. The fact is that trying to predict future price movements will certainly lead to unnecessary frustration and failure. To be successful in forex trading, you only need to do two things: Identify the trend & join the trend with the precise timing.
You don't need confusing or complicated analysis to trade successfully, dispite what others may say. Systems that are based on logical, scientifically sound, and well-tested forex trading concepts have been performing extremely well and will continue to do so for many years to come. This is a fact that beginning traders (and seasoned traders as well) need to understand and adopt if they want to become more successful.
What Does It Take To Be Successful In The Forex Market:
* I can't repeat this enough, but here it is one more time: You don't need to predict anything to make money on the markets
* It is possible to identify each day's hottest trades and exploit them
* To be successful, one needs to take advantage of big trends and ride them until the end
* It is possible to make more than 600 pips a month spending as little as 2 minutes a day!
Forex Scams:
1. Stay away from opportunities that seem too good to be true
Always remember that there is no such thing as a "free lunch." Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.
2. Avoid any company that predicts or guarantees large profits
Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.
The statements that follow are most likely untrue:
"Whether the market moves up or down, in the currency market you will make a profit." "Make $1000 per week, every week" "We are out-performing 9omestic investments." "The main advantage of the forex markets is that there is no bear market." "We guarantee you will make at least a 30-40% rate of return within two months."
3. Stay Away From Companies That Promise Little or No Financial Risk
Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.
The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers. The currency futures and options markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency tradinding.
'Nuff said!
Author: Staggerlee Phillips
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First, some basics:
What is Forex Trading?
Foreign Exchange Trading, or Forex Trading, is the financial market of the world. Selling and buying currencies is what forex trading is all about. Forex generally used by businesses and entrepreneurs looking to conduct international business and transactions.
To give you an example of Forex Trading, let us say that the United States is selling products to Canada. Canada would have to convert their money, the Canadian Dollar (CAD) into the United States Dollar (USD) to perform the transaction. So, essentially, what is happening is that Canada is buying USD currency with CAD currency for the conversion.
How can I trade in the Forex Market?
The Forex Trading market, works very similar to our stock market, with the exception that it deals with currencies. In order to trade on the Forex market, you must have a broker. Just like with the stock market, not just anyone can enter the market for trade. The Forex Market does differ from the stock market in that there is not a centralized exchange or clearinghouse to trade from. You must have a Forex Broker in order to take part in the trading.
How can I make a Profit?
To make a profit you will need to obtain a Forex broker specialized in the area. In some cases, in less serious trading cases, some people will use their local bank to handle the trade. However, if you are looking to hedge risks, convert receipts or profit at all in the Forex market, the first thing you need is a broker.
It takes a large amount of experience to begin earning large profits in Forex trading. Some people enjoy a thirty-percent return on their investments each month. To do this you must learn everything you can about Forex trading and speak with your broker about investment strategies. The internet can be a valuable tool in this area as well, there are many online Forex trading courses where you can learn just what it takes to become a competitive, profitable investor.
Some Meat and Potatoes:
One of the most destructive lies that have been spread for years about trading by the so-called trading experts, is that to succeed in trading, you must forecast or predict the future.
Nothing could be further from the truth. The fact is that trying to predict future price movements will certainly lead to unnecessary frustration and failure. To be successful in forex trading, you only need to do two things: Identify the trend & join the trend with the precise timing.
You don't need confusing or complicated analysis to trade successfully, dispite what others may say. Systems that are based on logical, scientifically sound, and well-tested forex trading concepts have been performing extremely well and will continue to do so for many years to come. This is a fact that beginning traders (and seasoned traders as well) need to understand and adopt if they want to become more successful.
What Does It Take To Be Successful In The Forex Market:
* I can't repeat this enough, but here it is one more time: You don't need to predict anything to make money on the markets
* It is possible to identify each day's hottest trades and exploit them
* To be successful, one needs to take advantage of big trends and ride them until the end
* It is possible to make more than 600 pips a month spending as little as 2 minutes a day!
Forex Scams:
1. Stay away from opportunities that seem too good to be true
Always remember that there is no such thing as a "free lunch." Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.
2. Avoid any company that predicts or guarantees large profits
Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.
The statements that follow are most likely untrue:
"Whether the market moves up or down, in the currency market you will make a profit." "Make $1000 per week, every week" "We are out-performing 9omestic investments." "The main advantage of the forex markets is that there is no bear market." "We guarantee you will make at least a 30-40% rate of return within two months."
3. Stay Away From Companies That Promise Little or No Financial Risk
Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.
The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers. The currency futures and options markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency tradinding.
'Nuff said!
Author: Staggerlee Phillips
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Find Financial Freedom in FOREX
Sunday, July 1, 2007
Do you work hard day after day just to break even? Would you like the opportunity to finally get ahead financially in life and stop living paycheck to paycheck? You are not alone. There are thousands of people out there just like you who feel they are barely making it by and they have to work so hard just to support themselves and their families that they have no time left for actually enjoying life.
How would you feel if you discovered there was an answer for your worries?
How would you feel about a real system that has proven results- not just another scam- that can help you achieve your financial goals? There are real people out there today just like you that are learning the secrets to financial freedom.They are learning how to take control of their debts and make enough money to pay off past debts and make new purchases.
How would you feel about a real system that has proven results- not just another scam- that can help you achieve your financial goals? There are real people out there today just like you that are learning the secrets to financial freedom.They are learning how to take control of their debts and make enough money to pay off past debts and make new purchases.
You can find the financial freedom you have always wanted in the FOREX market. There are many benefits to FOREX that make it a winner for many investors that learn to master it. For example:
* It's open 24 hours/day - Sunday Through Friday * Leverage up to 400:1 (control a large amount with a little money) * Because you are trading currencies, with properly optimized FOREX positions you actually have daily interest as an income stream With these benefits come risks just like anything else. FOREX has long been viewed as volatile and risk for small investors.Large institutions and professional investors were all you would see jump on the FOREX but now with this proven- effective investment strategy, you can make big money just like they are.You can learn how to avoid as much risk as possible and make smart investments that can pay off for you in a big way. Learn the secrets that helped many people quit their day jobs, pay off debt, spend more time with their family, buy a new house or car and take that vacation they've always wanted. There is opportunity in FOREX to help you invest for long-term growth and residual income, not just quick gains so you can feel more secure in your financial future. You can take control of your finances once and for all and learn the easy to follow techniques in this system which will help you master the foreign exchange market like a pro even if you have no prior experience in trading.
Author: Mark Molina
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Forex Trading Strategies in Forex Market
Thursday, June 28, 2007
In order to succeed in forex market, one can follow certain strategies like technical analysis, fundamental and economic analysis, combination of these two, different currency pair relationships etc.
Other more advanced techniques are SAR, CCI, Stochastics, MACD,Liner Regression, Bollinger Bands etc.
One should not be scared of the terminology involved. One should follow a strategy which one can understand and follow well.
The two most important strategies of technical and fundamental analysis are also used in stock markets. It may be advisable touse both of them while some people may use either one.
Fundamental analysis covers economic and financial factors like GDP, inflation, employment figures, devaluation, trade statistics, capital movements etc. In technical analysis one takes help of charts, graphs, bars, trends etc.
Whatever the strategy one adopts, one should learn to be a disciplined trader. For this, one should consider the following:
* Always use stop losses of some kind * Don't use all of your balances, but keep some separately available for special situations. * Start with small lot sizes * Always have a win /loss limit * Adjust margin according to market conditions *Always get new training and education
Some people also use intra day strategy. With this, one can use multiple time frames for analysis like one minute, 15 minutes.30 minutes and 60 minutes frames.
One noteworthy element of forex trading is risk management. This consists of stop losses and trailing stops. One needs to learn how to establish stops, fix initial stops and experiment with trading plans at the margin. One has also to learn trailing,break even and time stops.
Risk management seems to have become easier with more flexibility in forex trading rules. There is full transparency now in this, better ability to put bids and offers within narrow spreads and less cost per ticket. Some forex trading platforms automatically close all positions if an account declines 60%.This provides some added safety.
FX trading like commodity trading is always conducted on"margin". The general ratio is 50:1 and can go up to 100:1 in some cases. This means that against every margin of $1000, one can hold a position of up to $50,000. In currency trading what one can lose at the most is just the amount of margin while as the potential for profits is substantial.
Author: Altaf Sahibzada
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A Beginner's Guide to Forex Analysis
Thursday, June 14, 2007
The Forex trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. Forex prices can change at any moment in response to real-time events, such as political unrest or the rate of inflation. Currency market players typically use "Forex analysis" as a means of predicting currency price movements. Forex analysis is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The purpose of this article is to discuss the basics of fundamental and technical analysis.
A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of U.S. Government economic indicators. Some of these indicators are the Consumer Confidence Index (CCI), the Consumer Price Index (CPI), the Employment Situation Report, the Gross Domestic Product (GDP), the Composite Index of Leading Indicators, the Advance Report on Durable Goods, Housing Starts, and Initial Jobless Claims.
All of these Federal economic indicators have a marked effect on the Forex trading market. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve, the U.S. Bureau of Labor Statistics, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.
Forex traders must take other economic indicators into consideration as well. The world's leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, common economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.
A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones. The technical analyst typically uses charts as a tool in predicting currency price movements.
Investopedia states that "In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store." For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine's Day than into clothing stores.
Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.
Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. The important point to remember here is that no one strategy or combination of strategies is 100% certain.
Author: Gregory DeVictor
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Rules for Successful Forex Currency Trading
Monday, June 11, 2007
Rule #1 - Know What You're Doing
In any endeavour, in order to be successful you must know what you're doing.
This sounds obvious, but so many people get into Forex currency online trading and get busy risking (and losing) their money before they get a decent handle on what making money trading is about.
Right along with learning what the right things are, you absolutely must know what the mistakes are that can hurt you.
If you make money on one trade only to give it all back on the next, then why bother at all? You have to know both sides of the trading game to end the month ahead.
Most importantly, you have to protect the money you started with, as well as any money you make along the way. Knowing the pitfalls, the subtle traps and mistakes is the best safe guard you can have and one of the most important steps for you to take as a trader.
Rule #2 - Get a Handle on Your Emotions
Even after you build some competency with your trading and after you get to know what you're doing, you absolutely must have a good handle on your emotions. Almost all of the big losses and missed profits in trading come from the trader allowing their emotions to interfere with good trading and sound decisions.
Poorly managed emotions can and usually are the single most costly aspect of the trading activity. Ask any veteran that has achieved a consistent level of success and they'll tell you that you have to keep a cool head to make it as a trader.
Emotional management for traders is critical.
Rule #3 - Know Your System
As part of your emotional control and in knowing what you're doing is to have your trading systemized, and then to know that system well. You have to know what your system is capable of in order to have any confidence in it and in yourself.
There are several metrics that are critical to the trader's bottom line, several aspects of your trading the make the bottom line what it is.
Critical numbers such as:
- Your true winning percentage - Your true profit-to-loss ratio - Your average win size - Your average loss size - Your average return on the trades your place - Your return on your trading efforts (both in time and $)
Without analyzing your trading performance, you are going by chance and missing out on the opportunity to make your trading better than it is and to see the profits that you and your system are capable of.
Rule #4 - Treat Your Trading Like the Business That It Is
Any activity that you expect to be involved in and make money from should be treated as a business.
This requires more than just throwing money at an opportunity to make money. If you truly want to have your currency online trading produce an income stream for you, then treat it as a business.
This means that you need acquire the right resources to ensure that you give yourself the best chances of success. Resources like:
- the right broker - software - data and information sources - education
Now you shouldn't just go crazy with your spending, thinking that you can buy your success with a magic pill, but you should also realize that going it alone and not investing in your business is the truly costly and difficult way to reach success as a trader. Budget for and make the investments necessary to grow a solid business.
Rule #5 - Make the Determination That You Are Going to Become a Good (if not Great) Trader
Your trading profits and losses over the short and long term will be determined by what you do as a trader.
You have to take responsibility for your trading, and by doing this you also take control over your fortunes.
The skills necessary for successful trading are learnable, and you'll find that every long term trader has been a student of trading and most likely they still are, even after achieving the level of success that most traders aspire to reach.
Acquire the tools you need to trade and focus on developing your skills as a trader, along with yourself as the person doing the trading.
Follow the rules above in your currency online trading and give yourself the best likelihood of achieving the goals you have as a trader.
Author: Brian McAboy
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How To Learn Forex The Smart Way
Many people see the Forex market as a place to invest for the future. Many of these have previously invested in the stock market with mixed results and look to the currency market to increase their wealth. The problem is that most of these people ignored the fundamentals of the stock market, and are behaving the same way with the currency market. If you learn Forex trading properly, you will succeed. Ignoring the fundamentals will bring you the same results you had in the equity markets.
If you want to become a successful trader, it is important that you understand the basic principles about Forex trading. The best way of doing this is by finding a reliable trading platform that you can use to learn from. Interest in currency trading has been growing at fantastic rates. Online trading is even more spectacular because you can now trade from your home or office. Major currency dealers have met this demand by installing online trading platforms that are easy to learn and use. Once you register with one of these traders, you can begin learning currency trading without spending any of your money.
But it is not just these companies who have set up trading platforms who can help you to learn about Forex trading. A search on Google for "learn forex" will bring you hundreds of websites with different offerings. You will have to pay for some of these offerings while others are at no charge. You will also find websites run by traders who just enjoy sharing their knowledge with you. In addition, many websites provide general and specific information about the currency market.
Such sites offer a basic education to speed up your learning. You can watch videos online or download special software. You can also browse through forum posts or attend webinars. Also, these sites include ebooks and articles that can help you to gain basic knowledge about currency trading. Each site will provide you with a different method for learning about trading, and you can do all of it online, so no need for you to wait for CD's, DVD's or books to arrive in the mail.
Some of these materials are also available off-line if you have a slow Internet connection. But, in almost all of these materials you will find the basic information you need to start trading.
However, if you are looking for a more personal approach, or want to speed up your learning even more, you can attend an off-line seminar. Of course, some of these seminars are also available in the form of teleseminars and webinars, but you get a physical person to talk about and discuss your concerns. You also get the support of the other seminar attendees who may have the same concerns as you do. They can also help you understand material that they have mastered.
Physical seminars are more expensive than other means to learn Forex trading because the organizers have to secure a suitable room and provide other supplies that help the attendees make the most of the training. For example, binders, photocopies of charts, graphs and other educational material. However, if you can afford the prices for these events, it is worth your while attending at least an introductory seminar. You would speed up your learning of the Forex market.
Author: Milton Ziegler
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Choose One Currency: The Importance Of Focus In Forex Trading
Friday, June 8, 2007
Many beginner forex traders start out making a common mistake. They will begin trading one currency but within a month and sometimes much less, will have traded almost all the major
currencies. If you take a peek at some of the forex chat forums on the Internet, you will see enthusiastic newbie traders making the same mistake. They will ask questions, discuss and trade the yen, the pound, the euro, the Swiss franc and go back and forth between them all.
Why do they do this and why is it foolish?
Let's see. If you ask them why they do this, they will probably reply that either they saw an opportunity for a profitable trade on their charts that was too good to pass up or that they were
just increasing their chances of success by spreading their bets. Fair enough, that seems like a perfectly fine answer.
Imagine this however: You are a pretty strong guy and you think you can handle yourself in a street fight. Then you are thrown into a ring with a guy who's been training boxing for years. The outcome of this fight? Well, there really is no fight - you will get slaughtered.
Forex trading is the same. To be a success, you must always be looking at ways to swing the odds in your favour. The fundamentals that influence the yen are totally different to hat of the Swiss franc or that of the Australian dollar. If you are trading them all, while it may appear the same, its not. Just like the fight against the boxer, you are up against highly paid institutional traders and currency analysts - experts in a particular currency.
When a news announcement breaks, without thinking they know and incorporate its effect on a particular currency and its relationship to other currencies, the interest rates, bonds and gold market. The Australian dollar is a commodity price driven currency; the Swiss franc will do well when global security is a problem; the yen is a currency reflecting a nation with a huge export surplus and so on. All these currencies have different characters, moods and personas. They are influenced by different and conflicting information that you need to be aware of.
To increase your chances of success in trading, it is much better to master one chosen currency. This will help you build focus and trading discipline. Sticking to trading one currency
will eliminate the need to have to focus on numerous sets of information. However, the most important thing: with time, as you understand your chosen currency and its character traits
inside out, you will gain conscious confidence in your trading - something invaluable in this game.
If you are switching back and forth from trading one currency to another, understand that no one currency is easier or better to trade than another. There are no guarantees that you will make more money trading one particular currency over another. If you were doing poorly trading one currency and decided to switch to another thinking this might improve your chances, think why should it?
It is much smarter to stay focused, learn the particularities of your currency inside out and in the process develop trading discipline. Over the long run, you will have swung the odds of success in your favour.
currencies. If you take a peek at some of the forex chat forums on the Internet, you will see enthusiastic newbie traders making the same mistake. They will ask questions, discuss and trade the yen, the pound, the euro, the Swiss franc and go back and forth between them all.
Why do they do this and why is it foolish?
Let's see. If you ask them why they do this, they will probably reply that either they saw an opportunity for a profitable trade on their charts that was too good to pass up or that they were
just increasing their chances of success by spreading their bets. Fair enough, that seems like a perfectly fine answer.
Imagine this however: You are a pretty strong guy and you think you can handle yourself in a street fight. Then you are thrown into a ring with a guy who's been training boxing for years. The outcome of this fight? Well, there really is no fight - you will get slaughtered.
Forex trading is the same. To be a success, you must always be looking at ways to swing the odds in your favour. The fundamentals that influence the yen are totally different to hat of the Swiss franc or that of the Australian dollar. If you are trading them all, while it may appear the same, its not. Just like the fight against the boxer, you are up against highly paid institutional traders and currency analysts - experts in a particular currency.
When a news announcement breaks, without thinking they know and incorporate its effect on a particular currency and its relationship to other currencies, the interest rates, bonds and gold market. The Australian dollar is a commodity price driven currency; the Swiss franc will do well when global security is a problem; the yen is a currency reflecting a nation with a huge export surplus and so on. All these currencies have different characters, moods and personas. They are influenced by different and conflicting information that you need to be aware of.
To increase your chances of success in trading, it is much better to master one chosen currency. This will help you build focus and trading discipline. Sticking to trading one currency
will eliminate the need to have to focus on numerous sets of information. However, the most important thing: with time, as you understand your chosen currency and its character traits
inside out, you will gain conscious confidence in your trading - something invaluable in this game.
If you are switching back and forth from trading one currency to another, understand that no one currency is easier or better to trade than another. There are no guarantees that you will make more money trading one particular currency over another. If you were doing poorly trading one currency and decided to switch to another thinking this might improve your chances, think why should it?
It is much smarter to stay focused, learn the particularities of your currency inside out and in the process develop trading discipline. Over the long run, you will have swung the odds of success in your favour.
Author: Jovan Vucetic
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Learn Forex - How To Make Money Trading Forex, The Trade Process
Tuesday, June 5, 2007
On the forex market we are trading currencies, exchanging a currency for another. So we buy a currency hoping its value will increase compared to the value of the one we are selling. Yes, we, at the same time, buying a currency and selling another currency. An example may be a little more understandable.
We have dollars and want to buy euros. The pair traded here is EUR/USD, and the exchange rate is 1.25. You can read it like this : 1 euro equals 1.25 dollar.
We hope that the euro value will be higher so that later we will buy more dollar. The exchange rate increase to 1.35, in this case we bought 1 euro using 1.25 dollar, and it now equals to 1.35 dollar. So we exchange our 1 euro back into dollars and now have 1.35.
We bought 1 euro for $1.25 and sell it back for $1.35, we made a 10 cents profit. Of course on the forex market you will not buy only one euro, this will be few hundreds or thousands, depending on your budget and the leverage offered by the broker.
Exchange rates are always moving. When I say that you "hope" the value will increase, many factors can be used to predict the rate, based on technical or fundamental analysis. This is not the topic of this article so let's have another example of a selling trade.
We take the same pair (EUR/USD) as above starting with the same exchange rate (1.25). We want to sell euros so we can buy it later at a lower price. Here we hope, or know that the value of the euro will depreciate. We sell one euro for $1.25. The exchange rate drops to 1.15. That means that now we only need 1.15 to buy our euro back. We exchange our dollars back into euros and again, make a 10 cents profit.
When you buy or sell, you always buy or sell the base currecy. The base currency is the first one in the pair. In the pair EUR/USD, the base currency is the euro and the USD is called the quote currency. When you decide to buy, you buy euro and sell dollars. When you decide to sell, you sell euros and buy dollars.
Think that you always need to exchange something two times. If you buy something and want to make a profit from it, you would prefer to sell it at a higher price. And so, if you are selling something that you will need to buy again, you would prefer to have it at a lower price.
We have dollars and want to buy euros. The pair traded here is EUR/USD, and the exchange rate is 1.25. You can read it like this : 1 euro equals 1.25 dollar.
We hope that the euro value will be higher so that later we will buy more dollar. The exchange rate increase to 1.35, in this case we bought 1 euro using 1.25 dollar, and it now equals to 1.35 dollar. So we exchange our 1 euro back into dollars and now have 1.35.
We bought 1 euro for $1.25 and sell it back for $1.35, we made a 10 cents profit. Of course on the forex market you will not buy only one euro, this will be few hundreds or thousands, depending on your budget and the leverage offered by the broker.
Exchange rates are always moving. When I say that you "hope" the value will increase, many factors can be used to predict the rate, based on technical or fundamental analysis. This is not the topic of this article so let's have another example of a selling trade.
We take the same pair (EUR/USD) as above starting with the same exchange rate (1.25). We want to sell euros so we can buy it later at a lower price. Here we hope, or know that the value of the euro will depreciate. We sell one euro for $1.25. The exchange rate drops to 1.15. That means that now we only need 1.15 to buy our euro back. We exchange our dollars back into euros and again, make a 10 cents profit.
When you buy or sell, you always buy or sell the base currecy. The base currency is the first one in the pair. In the pair EUR/USD, the base currency is the euro and the USD is called the quote currency. When you decide to buy, you buy euro and sell dollars. When you decide to sell, you sell euros and buy dollars.
Think that you always need to exchange something two times. If you buy something and want to make a profit from it, you would prefer to sell it at a higher price. And so, if you are selling something that you will need to buy again, you would prefer to have it at a lower price.
Author: Tom Leroy
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An Introduction to Forex Inflation Indicators
Forex Inflation indicators are frequently used when trying to forecast a direction of a currency in any Forex day trading. These indicators are an extremely essential part of basic analysis and of using monetary indicators in general. Inflation normally has a considerable effect on different economical factors, comprising on the interest rates, on unemployment, as well as on the online Forex currency price.
Inflation is the rate of increase in a common price level of all goods and services. For instance, if the price of seeing a movie used to be $4, inflation augments that figure to $7; even supposing the service itself stays the same. Forex trading Inflation indicators calculates the inflation level of a detailed country's currency in a given time.
Inflation augments for various reasons that are not applicable for the current issue. In order to deal with existing inflation, result generally involves augments interest rates. This simply means that the exact currency in that country increases because of the interest rates. This is the short-term concern that could be seen almost right away in the online Forex market. After some time, when the interest rates are high, the currency is then sold, and then it could drops again. This means that in the long term, a raise in inflation indicators means a fall in the currency.
Various Inflation Indicators
Producer Price Index (PPI) - Manufacturing price changes are usually checked by PPI Forex trading indicator. Manufacturing prices are huge measures for inflation indicators, and give online Forex broker and traders a previous tip about the inflation level.
Gross Domestic Product (GDP) - This Forex trading indicator calculates the complete market value of all goods and services, which are created by companies inside a country. This inflation indicator is a quality measure of the growth of a country, and informs about the probably prospect movements of inflation indicators.
Consumer Price Index (CPI) - This indicator marks the standard price, which consumers pay for a fixed basket of goods and services. This financial indicator is a high quality reference for inflation levels, and when inflation rises, normally the CPI does as well. The CPI is measured for prices of food, shelter, clothing, fuel, transportation, and medical services, which are used by consumers of an assured nationality.
Author: Agnesuma
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Forex Trading - Become a Successful Forex Trader in 4 Simple Steps
Thursday, May 31, 2007
Anyone can become a successful forex trader from home, if they learn the right knowledge and learn how to apply it.
Here we will look at a proven way to make big profits quickly with low risk in global forex markets - even if you never traded before.
Here we will look at a proven way to make big profits quickly with low risk in global forex markets - even if you never traded before.
Step 1 - Work Smart Not Hard
In many professions you get paid for how many hours you put in, but this does not apply to the world of currency trading:
You get paid for being right.
There are many clever people who spent huge amounts of time building currency trading systems that are extremely complicated and clever, but don't make money.
The good news is that everything about forex trading can be specifically learned.
It's also a fact that the best methods are not complicated they are extremely simple. A simple system is more robust in the face of ever changing currency fluctuations.
A Simple system is also easy to understand and apply and this gives a user confidence, which translates into discipline, which is essential for online trading success.
Step 2 - A Method for huge gains
Let's now look at a methodology that can make huge gains in currency trading.
The a great methodology for any trader to use is one based upon breakouts of valid resistance.
Breakouts are simple to understand and easy to spot, yet most traders don't use this methodology, as it makes them feel uncomfortable.
Let's look first at why it is so successful and a fact that most traders don't realize which is, most big moves in currency trading start from new market highs, NOT market lows.
If you buy breaks of resistance to new market highs you can catch these moves.
Most traders can't do this because they want to "buy low and sell high" and they wait for the pullback to buy at a better price, however the really big moves don't pull back and most traders miss them.
If you buy these breakouts, you can make big profits and keep in mind "buy high sell higher" is a great way to make money. Yes, you have missed the start of the move, but the odds are on your side if you enter on a breakout that the move will continue.
To make money in forex trading, buy breaks of significant resistance and use trend lines and just a few confirming indicators and you have a simple, but powerful way of trading.
Step 3 Taking Risks
If you don't like risk then you shouldn't trade currency markets.
Most traders spend so much time trying to restrict risk, they actually create it and ensure they lose. They place stops to close or trailing them to quickly and are stopped out by normal market volatility.
If you want to win at forex trading, you need to take meaningful risks.
If you are trading a small account risk as much as 10% per trade and don't move your stop too quickly. This will ensure you won't be bumped out of the trade by normal market volatility and can stay with the longer term trends.
Step 4 Patience
You need to be patient and only trade the best forex trading signals that occur at breakouts of valid resistance.
You don't make money for how often you trade, but for being right.
Many traders like to be in the market all the time in case they miss a move, but this simply ensures they lose.
When you are in a currency trade, you then need to be patient with market volatility eating into your open equity. This is not easy!
When you have to sit and watch dips in your open equity of thousands of dollars however, being patient and riding out this volatility will be very rewarding if you accept it and focus on the longer term trends. Successful Forex trading
Is within reach of all traders and involves working smart not hard, having confidence in what you do and having a method that works, that you can apply with discipline to take calculated risks at the right time.
The above tips will help you win at forex trading, if you incorporate them into your forex trading strategy.
Author: Sacha Tarkovsky
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Making a Living in Forex Trading
Often people ask me if it is really possible to make a living trading the Forex market. I would have to say that it is definitely not possible to merely make a living unless you have no idea of what simple trading money management is. If you are successful in Forex trading and you understand what money management is, you will not just make a living but will create wealth relatively quickly. So I often tell people that if you are looking for a job, you might want to try Wal Mart. I hear they are hiring part time employees.
A good tool that can help you to understand how this works is a calculator. They can be purchased at most local stores for as little as $5.00. Then you might want to open a Forex trading demo account and place a trade. Observe what happens to the digits that display the profit or loss and get an idea of what the value of a PIP is in your account.
Then you can develop a purely hypothetical trading plan.
After you have learned a little about how Forex trading works you should start to get an idea of what is a realistic expectation for results in PIPS over a given period of time. Then decide what a prudent risk management plan would be. Some say no more than 2% of your capital is a good number. That number is of course, based on a false industry belief that it is not possible to have a high win to loss ratio in Forex trading. Regardless, it is a good conservative number. Then simply start off with a number that represents the amount of capital you plan to start with and project what would happen if you were successful with a realistic win to loss ratio. How many PIPS will you earn? Win to loss ratio is the number of winning trades vs. the number of losing ones. Risk to reward ratio represents the average number of PIPS per loss vs. the average number of PIPS per winning trade. What will your average net gain be per day or per month? What will that do to your capital?
The next step is to note the amount of money you need to meet your living expenses. When the amount of your monthly profits is at least twice as much as the amount you need to live, begin taking out 50% of your monthly profits. From that point on you will make a living AND your trading account will increase each month while the amount you take out will also increase every month from that point on. What could be better than that?
Author: Scott Shubert
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Ways You Can Make Money Online, Consistently and Legally
Wednesday, May 30, 2007
You've heard all the stories about regular people like you and me pulling down six-figure incomes from the Internet. These people have no special business or marketing training, didn't start off with a large amount of capital, and don't spend 20 hours per day working on their enterprises. In fact, it seems that they're able to make money online without expending very much effort at all. Understandably, you want in on the action. What's their secret?
Well, there are actually lots of different ways to consistently -- and legally -- make money online. For example, if you have a product to sell, it would be very easy to get set up at a few different auction sites. Thousands of people make a full-time living just from running auctions. Even if you don't have a product to sell, you can still make money online. Many people get their start from putting up a simple website and filling it with affiliate links that generate a commission every time a visitor clicks on the links. Of course, you would have to have some kind of content on the website or it's not likely that visitors will keep coming back to it.
If you're a bit more adventurous, you can try to make money online from various investment programs. You can either hook up with a program that is already in place, or strike out on your own. Some of the existing programs out there consist of private investor's clubs and HYIPs. A private investor's club is a group of people who pool their capital together in order to invest it in various financial markets. Usually, one or more of the members is a licensed broker or seasoned analysts, so the investments are both savvy and mid- to low-risk. The major drawbacks to a private investor's club is that you have to be invited by a current member in order to join and you usually have to provide a significant investment up front.
HYIPs are another vehicle that regular people have used in order to make money online. A HYIP is a high-yield investment program, and is based on some of the same principles as private investor's clubs. With HYIPs, however, membership funds are used to invest in very risky prospects that can either go bust or pay off handsomely. Most HYIPs are open to any and all comers, so you don't need to know anyone in order to join.
In order to make money online from your own investment know-how, you can sign up with an e-trading firm and trade stocks, bonds, and futures all day long with just a few clicks of your mouse.
These are just a few of the innumerable ways to make money online. You can decide to pursue one of the avenues mentioned above, or turn your own original idea into a gold mine. Either way, you're sure to be able to find a niche that will allow you to generate a steady primary or secondary income stream.
Well, there are actually lots of different ways to consistently -- and legally -- make money online. For example, if you have a product to sell, it would be very easy to get set up at a few different auction sites. Thousands of people make a full-time living just from running auctions. Even if you don't have a product to sell, you can still make money online. Many people get their start from putting up a simple website and filling it with affiliate links that generate a commission every time a visitor clicks on the links. Of course, you would have to have some kind of content on the website or it's not likely that visitors will keep coming back to it.
If you're a bit more adventurous, you can try to make money online from various investment programs. You can either hook up with a program that is already in place, or strike out on your own. Some of the existing programs out there consist of private investor's clubs and HYIPs. A private investor's club is a group of people who pool their capital together in order to invest it in various financial markets. Usually, one or more of the members is a licensed broker or seasoned analysts, so the investments are both savvy and mid- to low-risk. The major drawbacks to a private investor's club is that you have to be invited by a current member in order to join and you usually have to provide a significant investment up front.
HYIPs are another vehicle that regular people have used in order to make money online. A HYIP is a high-yield investment program, and is based on some of the same principles as private investor's clubs. With HYIPs, however, membership funds are used to invest in very risky prospects that can either go bust or pay off handsomely. Most HYIPs are open to any and all comers, so you don't need to know anyone in order to join.
In order to make money online from your own investment know-how, you can sign up with an e-trading firm and trade stocks, bonds, and futures all day long with just a few clicks of your mouse.
These are just a few of the innumerable ways to make money online. You can decide to pursue one of the avenues mentioned above, or turn your own original idea into a gold mine. Either way, you're sure to be able to find a niche that will allow you to generate a steady primary or secondary income stream.
Author: Muna wa Wanjiru
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Top 10 High Income Business Opportunities
If you are searching the Internet in search of high income business opportunities then you have probably encountered a lot and are unsure of which ones are best and which ones are scams. The truth of the matter is that there are a lot of opportunities advertised on the web that aren't worth taking the time to even read about them. Then again, there are opportunities that are worthwhile and will help you make lots of money.
The following top ten high income business opportunities will help you see which opportunities are really worth researching further!
The following top ten high income business opportunities will help you see which opportunities are really worth researching further!
Franchises
Of all the business opportunities out there that offer high income, franchises are one of the best. Proven business models, a popular brand, and a client base make franchises a great way to invest money and start making money in no time.
Affiliate Marketing
Affiliate marketing is a high income business opportunity and not only can you make a lot of money, but it is also really easy! Little risk is involved and all you have to do is work hard and get people to click on your link. This involves selling a product or service, or representing a service or product that people are interested in. You need people to click on your affiliate link and when they do you make money. It is easy and with hard work and dedication it can be a great money maker.
Web Designers
The Internet has really boomed and now every company, big and small, wants their own website. In fact, they need their own website. So, web designers have an amazing opportunity to make a lot of money working from the comfort of their own home and providing a service that is in high demand. Web designers have a very secure job because the Internet is not going anywhere and only more websites will be created each day.
Auction Sites
You can make a lot of money selling on auction sites. With the option to set a price or even let the buyer set the price you will find you can sell a lot of products, used and new, and make a lot of money. Auction sites, particularly eBay, are worthwhile and legitimate high income opportunities.
Niche Marketing
Niche marketing is an amazing way to make money online and is a great high income opportunity. Niche marketing focuses on finding a niche, capitalizing on it, and making money from it. Anyone can do it with a little bit of research and a whole lot of commitment.
Investments
Investing in the stock market is a high income opportunity, but it also carries a great deal of risk. Individuals should be well aware of stock trading, risks, and the like before engaging in this type of business. However, if you know what you are doing then investing in the stock market is a high income opportunity.
Real Estate
Buying and selling homes is a high income opportunity. However, buying homes at a low price, fixing them up, and then selling them for substantially more than you paid is the perfect way to make a lot of money.
Website Owner
Owning a website and selling a service or product that is desired by the general population or even a particular niche will allow you to earn big money. Websites are generating billions of dollars each year with more money being spent online each year.
FOREX
Foreign exchange is another high income opportunity and is based on the world's currencies. Paying attention to the markets and knowing when to buy and sell different currencies is a great way to make money.
Importer/Exporter
With the world becoming smaller each day and free trade becoming more popular, importers and exporters are able to make large amounts of money. Reviewing the markets and finding a niche for a product and then importing or exporting it will provide high income.
These are just some of the legitimate high income opportunities out there. Many other opportunities exist, but make sure you research them and know what you are getting yourself into before investing any time or money.
Author: Raymond Lawrence
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