Sunday, November 30, 2008

Learn Currency Exchange - 4 Tips for Trading Success

If you want to learn currency exchange then the 4 tips enclosed will help you achieve currency trading success. The tips are simple to learn easy to apply and will help you make great profits so lets look at them.

1. Success Comes From Within

This may seem obvious - but most traders fail to understand it and that's why there is such a huge market in people on the net telling you they can give you success all for a $100.00! Simply follow their automatic forex trading system and financial freedom can be yours. Of course, common sense tell you it's not true and its not. No one is going to give you money or success, you have to work for it and do your homework.

Forex trading relies on not just having a trading method but learning how to apply it with discipline. You will only ever be able to apply a method with discipline, if you have confidence in it and this means learning how and why it works and knowing why you will win with it.

If you don't have confidence when you hit some losses you won't be able to keep executing your system with discipline, so you have no system at all.

If you want to learn currency trading exchange correctly, then the first point to keep in mind is you're on your own and need to do your homework.

2. Keep It Simple

We live in a world where people admire complexity and cleverness - but it won't help you in forex trading and that actually is good news. The best currency trading systems are simple and you need to keep yours simple too.

Why?

The reason is - if you make a trading system to complicated, it has more elements to break and it will collapse in the brutal world of trading.

You can build a great forex trading strategy around: support and resistance, with a breakout methodology and a few confirming indicators and have a very robust method for success.

In forex trading your need a simple system that is robust and easy to understand, so you can have the confidence, to apply it with discipline, for forex trading success.

3. Do You Really Want to Make Money?

This may sound an odd question to ask but most people who set out to learn currency trading exchange don't appear to want to make money, they simply want the buzz of trading and act like gamblers.

How many novice traders for example try day trading as a methodology? Loads yet its guaranteed to lose money as the logic is flawed. Other traders trade news stories and chat in forums. These people don't have money making on their mind as their first consideration, its all about excitement and emotion and that's a sure fire way to lose.

If you want excitement then do something else, like go the casino - if you trade forex, you should trade to make money and that's it.

I know traders who trade less than ten times a year and yet compound 100 - 200 % or more per annum.

This is because trading frequently has nothing to do with how profitable you are. The high odds trades don't come around that often. To Enjoy forex trading success, you need to trade the high odds trades so be patient.

If you are patient and trade infrequently you will make far more money than the trader who trades all the time.

4. A Trading Edge

If you want to learn currency trading exchange the right way, you need to understand that you need a trading edge. A trading edge is something you have and will allow you to make FX profits, when 95% of traders lose.

You need to know, be able to define it, have confidence in it and be able to apply it with discipline.

If you don't know what your trading edge is, you simply don't have one and its back to learning currency exchange until you do.

Anyone can learn currency exchange the right way and if you do it correctly and you take all the above points into consideration when devising your forex trading strategy, you can enjoy long currency trading success.

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People shop in Time's Square Toys 'R' Us store on 'Black Friday', in New York November 28, 2008. (Brendan McDermid/Reuters)Reuters - U.S. consumers sought bargains on toys, clothes and electronics as holiday shopping kicked off this weekend, but an early rush to stores was slower this year and was not likely to change a weak outlook for the season, analysts said on Sunday.

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Monday, November 17, 2008

Forex Trading Profits - Simple Tips For Triple Digit Profits Any Trader Can Use

If you want to make big triple digit profits in forex trading, these simple tips will help you even if you have never traded forex before...

Here we will give you the basis of a simple forex trading strategy which is simple to understand, can be implemented in just 30 minutes a day or less. There is a big misconception in forex trading that you get rewarded for effort - you don't, you get rewarded for being right with your trading signal and that's it.

You also don't get rewarded for trading often in fact, this causes most traders to lose which leads me into the tips.

1. Trade Infrequently

Be patient, the big trends and high profit trades don't come around every day and you need to be patient. I know traders who trade about once a month and make triple digit gains, because they are so selective with their trades.

2. Learn to Trade Long Term Trends From Breakouts

It's a fact selling breaks to important new highs or lows on a forex chart, works as most trends develop from them. If you want to know more about breakouts, simply look up our other articles, it is one of the most simple and profitable ways to trade.

Focus only on the big trends which last for many weeks or months and forget short term trading. The reason for this is you don't have the risk to reward on your side and will lose.

3. Hit High Odds Hard and Don't Diversify

This will simply dilute your gains and on a small account and most traders don't have enough money anyway, to diversify properly. When you have a trade you like, focus on it and don't be tempted to take other trades on.

4. Risk 10 - 20% Per Trade

If you are trading a high odds trade you need to hit it hard, risk 10 - 20% of your equity on it and don't make the mistake most traders do, of trailing a stop within normal volatility.

Most traders get a profit, bring the stop right up, get taken out and then the trade goes back the way they thought and makes thousands or tens of thousands of dollars and their out. I have always maintained picking the long term trend is easy, entering it and staying with it, is the hard part.

Tail your stop slowly and outside of normal volatility, sure you give a bit back when the trend changes but you will get far bigger profits overall doing this. Keep in mind if you could get just 50% of every major trend you would be very rich.

Remember This to Win

In forex trading does not require you work hard, it requires that you work smart and get the right education. If you have a simple robust forex trading strategy, are selective with your trading and have the discipline to follow long term trends, you can make a lot of money and enjoy currency trading success.

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Joseph Sullivan fills out a form at the Verdugo Jobs Center, a partnership with the California Employment Development Department, in Glendale, California November 7, 2008. (Fred Prouser/Reuters)Reuters - The U.S. economy is in recession and will contract at a faster pace in the fourth quarter, extending the decline into early 2009 as high unemployment crimps consumer spending, a survey showed.

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Sunday, November 9, 2008

Elliot Wave Trading Explained

The Elliott Wave principle is a form of technical analysis that tries to foretell trends in financial markets. It is named after Ralph Nelson Elliott, an accountant who discovered the concept in the 1903s. He proposed that the prices of the market follow a specific pattern, which today they now all Elliott Waves. Elliott published his findings in the book The Wave Principle, it was published in 1938. He also had articles published in Financial World magazine in 1939 and his Flagship Nature's Laws - The Secret of the Universe in 1946. Elliott stated that because we as a race are moving at a constant rhythm, our actions and decisions can be predicted in rhythms too.

Elliott's model says that market prices alternate between five waves and three waves at any degree of a trend. As these waves arise, the bigger price patterns unravel in the form of a geometric shape. Inside the dominant trend, the waves 1-3-5 are the "motive" waves, and each of those has five big waves have five smaller waves beneath it. Waves 2-4 are called "corrective" waves, and they only have three sub-waves.

Each degree of a pattern in a financial market has a name, traders use symbols for each wave to show both function and degree. They use numbers for motive waves, letters for corrective waves. Degrees are somewhat relative, they are defined by form, not by size or duration.

The classification of a wave at any level can vary, traders usually agree on the standard order of levels:

- Grand Supercycle: Multi-decade to multi-century

- Supercycle: A few years to decades

- Cycle: 1 year to a few years

- Primary: A few months to a couple of years

- Intermetiate: Weeks to months

- Minor: Weeks

- Minute: Days

- Minuette: Hours

- Subminuette: Minutes

Elliott's market model relies heavily on looking at price charts. Traders study price movies to be able to sort out the waves and waves structures, and tell what prices may arise next. The application of the wave principle is a form of pattern recognition. The structures Elliott mentioned also seem familiar to a fractal. A Fractal is similar patterns appearing at every level of the trend. Elliott Waves investors say that this is just something that happens naturally and they often get bigger and grow more complex as time goes on.

The model shows that we as a human race have a psychology that develops in patterns, like buying and selling because of reflected prices. As Elliott once said "It's as though we are somehow programmed by mathematics. Seashell, galaxy, snowflake or human: we're all bound by the same order."

Author: Luis Aguirre

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Wednesday, November 5, 2008

Is There a Better Automated Trading System Than the Forex Tracer? No and I Am Going to Tell You Why

The Forex Tracer was developed by investor gurus with many years of specialists currency trading knowledge and constructed by a few of the worlds best software engineers who built into it complex algorithms and detection mathematics designed to produce highly profitable trades in a timely fashion for extended periods. Since it was manufactured by professional traders and software developers that are using this each day themselves, it was intended that the end user receive the tightest spreads, the maximum payouts and the greatest returns on their investments possible.

Currency trading is a preposterously complicated procedure that encompasses processing massive amounts of data instantaneously and evaluating it almost as quickly to achieve the maximum results. Even to attempt to compete in this field without an automated currency trading system is just preposterous! The vast majority of your competition in opening and closing a position is coming from banks, brokerage firms and other large financial institutions. These exceptional large firms all employ automated FX trading systems. Do you want to start trading so far behind the curve that it is almost impossible to win if you don't have a software based trading platform? Since it is your hard earned money that you are investing I am sure the answer is no.

The Forex Tracer has a multitude of testimonials at it's web site from happy and wealthier customers. The reason for that is they are making money utilizing the system. There are a wide variety of Forex trading systems on the market today and the Forex Tracer has distinguished itself in the most important area. Which is putting profits in your bank account. This system has been around for quite a while and has a following growing on being a cult, due to the fact it succeed in the one area consumers deemed to be the most important where the vast majority of the other public FX trading systems failed

William R. Alheim, Jr., CPA, MA - for reviews of the TOP 10 Forex Trading Courses visit http://www.tradingforexreviews.com/ - Good Luck! I look forward to seeing you on the trading floor making money, which you have to buy me at least one lunch with.

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Monday, November 3, 2008

The Ugly Facts of Life About Being a Petroleum Trader

Anyone who's gotten involved in the inevitable daisy chains that are part of the online international commodity "trading" business has learned a new meaning of the term "dead end."

The fact is (and this is learned from real oil traders who know from experience) that most of these "deals" are just fake, plain and simple.

Thanks to the Internet, these days some phony-baloney oil brokers even have their own websites and call themselves petroleum suppliers or petroleum companies even though they may not have completed a single real oil trade transaction in their lives. Why do they keep doing it?

I honestly don't know. The sad thing is these traders' persistence could be put to good use if they ever took the time to actually learn about the business. And don't think it's only the unschooled who fall victim to these daisy chains. Many lawyers, MBAs and educated men and women who should know better are frequently sucked in too.

When real petroleum companies deal with real refiners in foreign countries, the standard procedure is that the seller makes a firm offer to the buyer - subject to whatever he needs done - and the buyer then takes a look at the offer and says either we've got a deal or we don't.

Simple. It's just like any other trade transaction in that regard. Too many buzzwords and too many qualifiers usually mean you should stay clear. And contacts who are actively seeking banking information before any discussion of product are usually non-players.

What about discounts? Real traders know there's no discount on orders whether it's a big deal or a small deal but the "play traders" believe that if the deal is bigger, there should be a bigger discount. This is another example of not knowing the industry.

Instead of looking for suppliers of huge amounts of oil in its various forms, the real buyers know that no single supplier can come up with one million barrels a month (an amount frequently tossed around) because the refining capability just isn't there.

What about someone fronting for a rich Saudi sheik?

Fat chance, say the real traders. In the case of Saudi Arabia, there are only two legitimate organizations that sell oil on behalf of the country or an oil consortium. Someone who says he's selling on behalf of a Saudi sheik is just, well, full of sheik!

And if they start talking about millions of barrels per month it's almost certainly not real unless they're talking about crude oil.

Remember, a broker's entire job is to help a petroleum company's trading department find or sell oil and related products so that he will receive a commission when the deal comes together. Will you get paid? That's always an issue for export intermediaries but it can be especially tricky in the oil business.

The fact is that most oil companies -- and especially the big ones -- have traders in their marketing departments who operate honestly and fulfill obligations to brokers. But there are some independent and smaller companies who treat brokers shabbily and their reputations are widely known - another reason to get smart on the oil business before you dive in.

Surprisingly, you will probably find that many of the bigger oil trading companies will not only accept your services but may also provide advice and assistance.

So what's the bottom line?

Like I said before, it ain't easy. And you've got to know what you're doing. The fact is, petroleum marketing is a dog-eat-dog business and if you're a broker, you'd better have the resilience and perseverance to work through the baloney and outright deceit which seems to attach itself to petroleum trading.

Frankly, unless you have contacts in or familiarity with the petroleum industry, I recommend you stay with small- and mid-sized product manufacturers who are not exporting their products. It may not be as exotic as trading in petroleum, but it works - and you can make some real money. If you insist on trading in the volatile petroleum industry, try to find someone who will mentor you on the ins and outs. This is probably the best way to make sure you don't get "burned" by oil.

Dennis Hessler is the publisher of The Computer User's Guide to Running Your Own Exporting Company and numerous other books, video tapes, software packages and The International Trade Connection newsletter which is designed to show entrepreneurs new to exporting how to get involved in the booming global market.

Learn more about international trade at his website, http://www.spyglasspoint.com You can also download a free sample copy of The International Trade Connection at the site. If you have questions about any of his products or international trade in general, e-mail Dennis at Dennis@spyglasspoint.com. Spyglass Point Productions, P.O. Box 13141, Pensacola, FL 32591 U.S.A.

Reuters - Internet search leaders Yahoo and Google have given the Justice Department a revised version of their search advertising partnership in hopes of winning antitrust approval, the Wall Street Journal said on Monday.

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Sunday, November 2, 2008

Hedge Fund Methodologies - How To Price Spreads And Baskets

Introduction

Hedge funds are always in the media, and frequently regarded as secretive and esoteric.

This is largely due to a a lack of detailed specific information regarding what hedge funds actually do. To help combat this, I have decided to write a short series of articles describing how long/short equity strategies may be defined.

Long/short equity hedge funds generally go long certain shares. And short others. Some may maintain a market neutral position. This means that for every million pounds of stock that they hold, they'll short a million pounds of another stock. Others may have a long bias. For example, maintaining a 70% long, 30% short portfolio.

The portfolio selection processes can be discretionary or systematic. In this opening article, I shall describe the basic pricing process, and move on to technical selection processes at a later date.

Pricing Products

In order to compare stocks, the prices need to be normalised to enable a like for like comparison. For example, if stock XYZ goes up by 10% and stock ABC goes up by 10%, then we'd probably want a market neutral spread between the two to remain static.

This is commonly done by dividing prices by a "base price", where the base price is normally a recent historical price of the associated stock.

For example, if XYZ closed at 232 last night, we could set the base price to be 232. Assume XYZ opens at 250 the next morning. The rebased price would be 250/232 = 1.07759.

It is clear that this represents an overnight increase of 7.759%.

Now assume that ABC has moved from 450 to 459. Using 450 as the base price, the new rebased price would be 1.02.

The spread between XYZ and ABC is therefore:

1.07759 - 1.02 = 0.05759

ie. The spread has moved 5%.

So a trader who'd been long the spread over night, holding a market neutral position, would have made a 5% return on the nominal value of his position.

This concept can be expanded to baskets of shares. For example, if a trader wanted to trade a market neutral position of XYZ against a 50/50 weighted basket of ABC and DEF, the rebased spread would be:

n(XYZ) - 0.5 * n(ABC) - 0.5 * n(DEF)

where

n(X) = (Price of X) / (Base price of X)

In essense, these simple pricing methodologies are used to define new synthetic tradable products. Unlike normal shares, they do not follow lognormal random walks, and do not have an upwards drift. However, some traders and hedge fund managers believe that they possess inefficiencies that can be exploited.

Some of these inefficiencies will be investigated in later articles.

Jon C is an Internet Entrepreneur and Trader. If you have any questions regarding this article, please contact him via the comments for on

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Reuters - Evidence of a weakening economy and further global efforts to avert recession dominate financial markets this week, so much so that the U.S. presidential election on Tuesday is almost taking a back seat.

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Thursday, October 30, 2008

Stock Market Trading - 4 Proven Ways You Can Make a Profit in an Economic Slowdown

In these day of the credit crunch and all the economic slowdown in general, is there still a way we can make any money from the plunging stock markets? Yes there is, it is even possible for us to make more in markets that are heading South, in unbridled free fall, than if they head up.

What we do is short sell, and this is done either through you broker, your bank, or an online account. I prefer the latter by using spread betting. When we open a Sell position, we are in effect borrowing a stock to sell at its current price. The stock we choose is determined by our thorough research criteria. Our prediction is that over a period this stock will go down in value. Assuming the price goes down, then we reverse our position later on and buy it back, at of course, the new lower price. The difference in the value is our profit.

Here are 5 ways you can use this technique:

Using Day Trading, we open a position, which is usually founded on using technical indicators, and it remains open for a duration of anywhere from a few hours to a few days. Trading with a management facilities, our stop loss system will protect us from losing too much if thing the trade goes against us, in this case, up.

Swing Trading is similar to day trading and employs the same indicator types. It is focuses on taking advantage of price swings in trending markets. Positions are usually held for a longer period, up to say three weeks.

Range Trading. If you notice a stock whose price seems to generally fluctuate in a well-defined channel between two parallel lines, then this is called a range. The line underneath is usually called support, and the upper one, resistance. Just like a zig-zag across you chart really. It will be horizontal, or sloping in either down trend, or up trend. The trick is to take advantage of, in our case the price as it bounces off the resistance line, or breaks through the support line.

Scalping is taking advantage of volatile markets. This strategy is fast paced and scalpers don't spend more than minutes or seconds in markets that lend themselves to this method. A big advantage is the minimal exposure of your cash to the market, thanks to the tight spreads.

The Foreign exchange or Forex, is immensely popular, trading currency pairs such as the US Dollar with the UK Pound or the Swiss Franc with the US Dollar. Many traders make a living on trading just one currency pair. Scalping is a good way to trade the Forex because it is usually highly liquid in nature.

So as you can see, there is enormous scope for making the most from falling markets.

How would you like to discover more about the techniques successful traders use to make profitable trades?

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Traders wait for television monitors to display that the Federal Reserve has slashed a key interest rate by half a percentage point on the floor of the New York Stock Exchange, October 29, 2008. (Shannon Stapleton/Reuters)Reuters - Stocks climbed on Thursday as investors snapped up shares trading near their lowest levels in five years on optimism that aggressive rate cuts by global central banks, including the Federal Reserve, will help cushion a worldwide economic downturn.

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Tuesday, October 28, 2008

Daytrading Emini Futures for Daily Income

Day trading the Emini S&P Futures really is a great way to make a living! I hear and read a lot of articles, newspaper ads, and even one or two ezine's that claim day trading is a sure fire way to lose all your money. I totally disagree. On the contrary, it is an incredible way to work a few hours a day and make a very nice 6 figure income.

No doubt, a lot of new day traders find themselves in peril and ultimately lose their money day trading. This bothers me when I read about it. It gives the successful day traders, such as myself - a bad name. I know quite a few day traders who have been succeeding at this for many years. What I learned is that success leaves clues! Meaning, the successful day traders seem to all be doing the same thing while the unsuccessful day traders are also doing the same thing - which, to no surprise is opposite of what the successful traders do!

We need to look at the root of the real problem, which is: Why are most day traders losing all their money? I think thats a real simple question to answer. Usually it is a lack of discipline and a solid set of day trading rules. Sometimes it is under capitalization and fear. Fear in itself is probably the biggest of the day trader "killers".

You may purchase books, seminars, and perhaps create your own strategies to day trade. All this is great, but if you can not follow the rules to the letter - you simply will not be a successful day trader. Discipline to follow the rules is a tough thing to acquire! I admit when I first started I had a hard time because I was always changing up my rules. That cost me tens of thousands of dollars. Read more about my successes and failures:
http://www.eminitradingstrategies.com/emini-trader.html

Finally, I learned that the key to successful day trading was trading for income. I do not trade for a target price. I know how much money I need to make every day and I go out and make it, once I achieve my daily profit objective, I simply quit for the day.

My trading methods are very simple and easy to learn. They require discipline! You must under every circumstance follow the rules. My methods generate at least 1 point daily trading the S&P 500 eminis. I back that by a double money back guarantee!

I post my real trading results on my blog every day
http://www.eminitradingstrategies.com/emini-trading-blog/ I do not post "hypothetical" trades. I post real trades with real fills! Some of my trades are winners and some are losers. Either way I put them up there for the world to see. I urge you to look at them. Every now and then I take a day off, on those days I DO post hypothetical results and I make it clear I did not trade that day! However, even with my hypothetical trades, they are very realistic trades that would have been filled on limit orders!

Please when people tell you day trading doesn't work, don't believe it. You can earn a very nice living day trading. It's my opinion that the people who bad mouth it are simply the "wannabes" that didn't make it. Instead of complaining about it, find out why it did not work for you! Did you really follow every rule? Did you maintain discipline all the time? Whatever you do, please do not berate the people that really do it! And do it successfully everyday.

Just recently I've decided to teach my trading methods. Some of the reasons I am doing this is that I am tired of hearing so many negatives about my industry. I also have a strong desire to teach. I've shared my methods with a handful of people and I enjoy teaching, and love seeing the excitement and enthusiasm in them. If you have the discipline to follow a solid set of rules, you can be a very successful day trader.

Please stop by my website at http://www.eminitradingstrategies.com to learn more!

Thanks for reading my post. I can be reached at info@eminitradingstrategies.com

David Marsh

New Vauxhall cars stand outside the company's factory in Ellesmere Port, northern England, October 27, 2008. (Phil Noble/Reuters)Reuters - Auto retailers swung to quarterly losses in the third quarter, beaten down by the decline in U.S. car sales, tight consumer credit, and a weakening U.S. economy as well as hurricane-related damages.

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Monday, October 27, 2008

Trading Timeframe Selection

Well, I've had a frustrating week. No opportunity to trade until Friday, and no opportunity to work on my website and newsletter service. NOT HAPPY!!!

But then, that happens to us all from time to time. Life has a habit of failing to consult with us, prior to messing with our plans.

What happened? Well, before I was trading I used to work as a pilot, with a specialty in aviation safety. I've maintained a link to that industry, and still do some work on a part-time basis. Usually it's not a big deal at all, and I can fit it in around my life. Sometimes though, a bit of a crisis happens (safety's like that!) and I've got to travel away, and well... my plans just don't matter anymore.

Yeah, I know. I've got no-one to blame but myself. After all, I choose to do this. And this probably has no relevance to your life. So let me get to the point - how does this story relate to the title of this article - 'Trading Timeframe Selection'.

Ok, those of you who have been around my website for a while know that day-trading is my thing. I like the short timeframes. Anything more than 5 minutes is way too long for me. Why is that? Well, several reasons really:

1. More action.
2. Tighter stops (I hate large losses).
3. Psychologically, I'm a bit of a control freak - I like to monitor a trade from start to finish.
4. I can sit in cash when I'm not trading, so it's no problem if I get called away and can't trade for a day or two.

Really, it's all psychology!

I used to trade daily charts several years ago, and really hated the 'surprise' each day when I woke up to see what the US market had done to my position overnight. Now, when I'm trading, I can manage the trade closely. And when I'm not trading, I'm out of the markets. Simple!

Day-trading is just a perfect fit for my psychology. And it just happens to fit my lifestyle as well, because if I have to go away quickly I'm not leaving open trades in the markets.

For some crazy reason, about six weeks ago, I decided that I should look into trading daily charts again because that would give me more time to work on the trading education website & newsletter. I decided to trade options on equities, which would allow me to place defined-risk trades and profit from theta decay. Great plan! So I set about simulation trading for a couple of months, just to be sure it would work for me. Well, everything went fine until this week.

Suddenly, I couldn't monitor my trades. I'm left in the market with an overall delta positive portfolio, and no access to a computer to adjust the trades, and the Dow drops 358 points. Not a big deal really, as it's simulation. The position had been in profit, and is only sitting on a slight loss now, so with three more weeks till expiry there's still a great chance to work my way out of trouble. Of course, had it been live I would have phoned my broker and closed out all positions.

But here's the real lesson for me:

1. Daily charts do not match my lifestyle,
2. Daily charts do not match my psychology, and
3. Daily charts do not match my risk tolerance.

I wasn't comfortable holding positions overnight when I couldn't monitor them. And the whole 'speed' (or lack of speed) of the game frustrated me. Could I get used to it? Absolutely! But why bother when I've already found my niche. I'm a day-trader. Why try to change?

So, what's your perfect timeframe?

The only way to find out is to try the different alternatives. These days you can get a demo or simulation platform for almost every market, and timeframe. So there's no excuse for not trying the different timeframes to find the one that fits your psychology like a glove.

Try the short timeframes for a couple of weeks. Try the intermediate timeframes for a month or so, say the 1 or 4 hour charts. Try the daily charts for a couple of months. While you're at it, try the weekly charts.

What you're first attracted to is not necessarily the right fit for your psychology or lifestyle. When I first got into trading I traded the weekly charts on stocks. This changed quickly to daily charts. And then over several years it progressively got shorter and shorter. Maybe day-trading would not have suited me back then, but the thing is, I never even thought to try anything else. Had I done so, I might have saved myself years of 'daily chart' pain.

So what are you waiting for? Test your timeframes, and find the right one for you - the timeframe that matches both your lifestyle and your trading psychology.

Happy trading,

Lance Beggs

Copyright 2008. Lance Beggs. All Rights Reserved.

Would you like to learn more about how I trade the forex and equity index markets? Check out the articles, videos and trading resources on my website right now at http://www.YourTradingCoach.com

Chrysler auto assembly workers leave the plant after their shift ends at the Chrysler Warren Truck Assembly in Warren, Michigan, October 14, 2008. (Rebecca Cook/Reuters)Reuters - The U.S. government is considering direct financial assistance to facilitate a possible merger between General Motors Corp and Chrysler LLC, a private sector source familiar with Treasury discussions told Reuters on Monday.

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Forex Currency Trading - Your New Job?

On the internet of late it seems like everyone is suggesting you can be your own boss. Telling you that you can stop the 9 to 5 grind and spend more time with your family while magically making money. One of the common ways suggested is through Forex Currency Trading. If you're like me, when you first heard that term you thought "no way, too complicated!". Because currency trading seems like something that only the big corporations or ultra-savvy investors could do. It seems like something that would require lots of brain power and lots of hard work.

In the past, that statement would've been correct. However, we're now in the internet age where almost everyone has a computer in their home - yes, even you! And by reading this you've proven that you're surfing the information superhighway on the internet. There we have it, the two most important things in becoming a forex currency trader.

Of course, there is one more thing you'll need to start off - forex software. This is the element that links you and the markets together and lets you make your money. There are many variations of software, for the beginner in this market the best choice is software which is highly automated and making the decisions for you. Simply put, you tell the software how much money you are prepared to invest. It then sits and watches the market. It's like a tiger ready to pounce - using it's skill and cunning to figure out the best time to strike. It will then place a "trade" order designed to take advantage of the market movement. When the profit is made it sells that "trade", then sits and waits for the next opportunity.

Meanwhile, you can be carrying on with your day job or, the preferred option, enjoying life and spending more time with your loved ones.

Done properly, online forex currency trading can provide not only a decent living but also generate a high income - 6 figure incomes are indeed possible.

Your own 6 figure income? Yes, if this is what you seek then Forex Trading might be for you. I strongly recommend only using products with demo modes and refund periods. Forex Funnel is one such piece of software that is totally automated and has a proven history. Find out more at Forex Reviews.

Traders work on the floor of the New York Stock Exchange October 24, 2008. (Brendan McDermid/Reuters)Reuters - The Group of Seven warned the surging yen posed a threat to financial and economic stability on Monday in the latest coordinated effort by the world's richest nations to contain worst financial crisis in 80 years.

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Wednesday, October 22, 2008

Day Trade Forex Successfully

Set your rules out first

An Overview

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

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

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

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

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

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

Everything will then fall into place.

Where do I start?

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

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

Rules

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

FOLLOW YOUR DEFINED RULES RIGIDLY

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

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

a) General - similar to laws

b) Trading - similar to regulations

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

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

The reason you are reading this is because you want to make money. I have been in your shoes doing exactly the same thing, but at the wrong end of an 8,000 account. Yes, all gone! It wasn't the first account that I had delivered to 'the professionals' so something HAD to be done. I made rules and divided them into sections, analysing them yet further. Here are my general rules that you may want to consider:

a) General rules

Work/study hard continuously, knowledge is essential, but

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

Take responsibility for every decision that affects your trading

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

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

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

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

Treat trading as a business and organise it as such

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

b) Trading rules

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

Have a system that fits your trading style

Become good at one style, tweak it to suit you

Keep an open mind for each and every trade

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

Do not listen to the opinions of others

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

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

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

Take regular breaks from trading

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

Stand aside if you are not sure about a trade

Do not add to losing positions

Keep the dollar signs away, try to score points

Without fail, have a trading plan and trade that plan

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

c) System rules

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

What time frame you will be trading

The times not to trade

Clear and unambiguous means of entry into the trade

The reasons for entering and exiting the trade

What your means of exiting the trade will be

What size your stop loss should be

Will you use trailing stops

What position size will you use

Dealing with news announcements?

Will you scale out of the position etc. etc.

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

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

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

First and foremost it must trade with the trend

Must be good for all currency pairs

Must be good for all time frames

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

Must be user friendly

Must be simple

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

Must keep losses to a minimum

Must enable decision-making at a glance

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

Must have a higher time frame and trend confirmation

Must have clear and unambiguous accurate entry signals

Must also give clear re-entry signals into trends

Must tell me when to exit

Must have multi-timeframe trading on one chart

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

Must stop me from overtrading (important)

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

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

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

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

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

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

Dave Atkinson May 2008

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

Traders work on the floor of the New York Stock Exchange (NYSE) moments after the opening bell in New York City. Panic-selling returned to global stock markets on Wednesday, with the leading Dow Jones industrial index shedding 5.6 percent, as fears of global recession stalked investors.(AFP/Getty Images/Spencer Platt)AFP - Panic-selling returned to global stock markets on Wednesday, with the leading Dow Jones industrial index shedding 5.6 percent, as fears of global recession stalked investors.

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Forex Trading - The Road to Financial Freedom If You Understand These Key Points

Forex trading can be a road to financial freedom or at least a great second income but 95% of traders fail not because they can't achieve it but due to the errors contained in this article - avoid them and you can enjoy currency trading success...

Here are the key points you need to understand.

1. You are Responsible

You're on your own and there is no one who will give you success. Forget the mentors gurus and systems who say they will make you rich, they won't. You don't get on the road to financial freedom buying a system from a vendor which has never been traded, that's not life.

You need to do it on your own and if you do, then you will not only have the right knowledge to succeed but also confidence in what your doing, to have discipline to stick with your plan.

2. Why You Can Win

Everything about successful trading can be learned and this was proved to dramatic effect by trading legend Richard Dennis who taught a group people with no trading experience to trade in just 14 days and they went down as trading legends, earning hundreds of millions of dollars within a few years.

Dennis knew anyone could learn to trade and he proved it.

Sure you might not be as successful as his group but the opportunity is open to you.

3. Work Smart not Hard

You don't get rewarded for effort you get rewarded for results generated from your trading signals.

To learn to trade should take you no more than a couple of weeks and your then all set to enjoy currency trading success in around 30 minutes or less a day.

The key is getting the right knowledge and building a simple robust forex trading strategy you understand and can apply with discipline.

4. Discipline and Money Management

Are the keys to earning big profits in forex trading.

Forex offers you the ability to leverage your investment dramatically and while this creates opportunity, it also creates risk. You must play great defence first like all good football teams look after the defence and the offence will create and take opportunities.

The forex market is no place for people who want to be right all the time - it's not possible.

The market price is always right and only you can be wrong and you will be wrong a lot of the time but that wont stop you making a lot of money - just learn to keep your losses small and accept them cheerfully. Don't worry the big profits will come.

Sounds simple yes in theory but don't be deceived its still a challenge and this is obvious from the fact most traders lose but if you work smart and have the will to win forex trading offers you the road to financial freedom and its up to you to take it.

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

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Monday, October 20, 2008

Hedge Fund Methodologies - How To Price Spreads And Baskets

Introduction

Hedge funds are always in the media, and frequently regarded as secretive and esoteric.

This is largely due to a a lack of detailed specific information regarding what hedge funds actually do. To help combat this, I have decided to write a short series of articles describing how long/short equity strategies may be defined.

Long/short equity hedge funds generally go long certain shares. And short others. Some may maintain a market neutral position. This means that for every million pounds of stock that they hold, they'll short a million pounds of another stock. Others may have a long bias. For example, maintaining a 70% long, 30% short portfolio.

The portfolio selection processes can be discretionary or systematic. In this opening article, I shall describe the basic pricing process, and move on to technical selection processes at a later date.

Pricing Products

In order to compare stocks, the prices need to be normalised to enable a like for like comparison. For example, if stock XYZ goes up by 10% and stock ABC goes up by 10%, then we'd probably want a market neutral spread between the two to remain static.

This is commonly done by dividing prices by a "base price", where the base price is normally a recent historical price of the associated stock.

For example, if XYZ closed at 232 last night, we could set the base price to be 232. Assume XYZ opens at 250 the next morning. The rebased price would be 250/232 = 1.07759.

It is clear that this represents an overnight increase of 7.759%.

Now assume that ABC has moved from 450 to 459. Using 450 as the base price, the new rebased price would be 1.02.

The spread between XYZ and ABC is therefore:

1.07759 - 1.02 = 0.05759

ie. The spread has moved 5%.

So a trader who'd been long the spread over night, holding a market neutral position, would have made a 5% return on the nominal value of his position.

This concept can be expanded to baskets of shares. For example, if a trader wanted to trade a market neutral position of XYZ against a 50/50 weighted basket of ABC and DEF, the rebased spread would be:

n(XYZ) - 0.5 * n(ABC) - 0.5 * n(DEF)

where

n(X) = (Price of X) / (Base price of X)

In essense, these simple pricing methodologies are used to define new synthetic tradable products. Unlike normal shares, they do not follow lognormal random walks, and do not have an upwards drift. However, some traders and hedge fund managers believe that they possess inefficiencies that can be exploited.

Some of these inefficiencies will be investigated in later articles.

Jon C is an Internet Entrepreneur and Trader. If you have any questions regarding this article, please contact him via the comments for on

http://www.dawjee.com

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Friday, October 17, 2008

How to Pick a Profitable Forex Trading System

In the beginning of my trading career I was jumping from one trading system to another as soon as it gave me a few failing trades. I think it's a common thing among beginner traders to change system without even testing it.

Oftentimes I can hear traders argue which system is better or which trading style is more profitable. I believe that it all depends on trader's personality. One has a greater emotional control so he can sit and continuously monitor his trade. Some type of short-term trading strategy will suit him the best. Another trader is more patient. He can wait for his trade to mature for a few days. For this trader long-term trading systems are more relevant.

It is surprising to see that even very successful traders do not realize that a trading style must suit a personal trait of the trader to make him successful. Usually traders advocate their own trading style or system. Anyone who wants to become a successful trader needs to study himself before studying the market to know what is best for him.

Personally I dislike short -term trading suchlike scalping. Besides that it's emotionally challenging for me to watch continuous fluctuation of the market, there is another reason I don't practice scalping.

Scalping is a trading style that targets very few pips per trade. Therefore to make a significant profit one needs to make several trades a day. Brokers nowadays do not charge commissions for trades, but there is a spread. The more trades you execute the more pips in spread you lose. Let's say you scalping a currency pair that has 3 pips spread and you need to make 10 trades a day. By doing so you are already 30 pips behind. It will add up into 150 pips in a week.

A long term trading strategy on the other hand usually targets quite a large profit for a single trade. This style of trading suits me the best. I can analyze the market, set a trade and keep coming back to see how it evolves. No emotional overreaction. No huge number of trades to lose spreads on.

I don't mean to put down any trading style. What I mean is that you are the one who needs to choose what trading style suits you the best. Once you find that out buy studying yourself then success in trading will come easy to you.

Albert Schmidt is a part-time currency trader. After quite a few months of struggle he learned to make consistent profit trading in Forex. Review a trading strategy that he is trading successfully.

Shopper on Chicago's Magnificent Mile in a file photo. (John Gress/Reuters)Reuters - Consumer confidence suffered its steepest monthly drop on record in October and construction starts on new homes fell to a 17-1/2 year low the previous month, as the financial crisis sent shock waves through the economy.

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Thursday, October 16, 2008

Wall Street De-Mystified

The personal computer has allowed small investors (you and me) to compete with floor traders.

In the past floor traders dominated off-floor investors by paying lower commissions, having immediate access to price information and being able to sense the changing mood of the trading pits.

Today, the playing field has been levelled with the ability to send orders directly to the floor in many futures markets.

Formal Education will make you a living. Self-education will make you a fortune. Jim Rohn

Wall Street De-Mystified is a simple to follow and understand system of education for making money with E-minis and Options. Created by Wayne Hardy and Hector Bonelli.

The Stock Market has CHANGED and has become a powerful tool in helping to share the wealth in the world

Most people see the stock market as a mystery, and somewhat of a taboo. We wanted to do something about changing that perception. We have been trading for many years and over those years have noticed that there has been a significant change in the stock market. It is no longer the domain of the rich and powerful - to become more rich and powerful.

There are more ways to trade now, which make trading much more available to everyone - simple and affordable with very minimal outlay, very little risk and much greater returns over a short period of time. minutes in fact. The losses can now be much more minimized and the profits maximized - which makes trading much safer than in the past. Top trade for an hour a day to make a living and have the rest of the day to do what you love and connect to others rather than being a slave to a job (unless you love your job of course), is our view of how life should be for everyone.

The stock market is like a giant cake and everyone is entitled to a slice. It is now possible for all of us to share in the benefits.

We hope you will take advantage of what we are offering by taking the opportunity to learn how to very simply, affordably and effectively grow and expand your financial muscle.

Happy trading!

Give a man a fish and you feed him for a day teach him how to fish and you feed him for life

What is an E-mini?

The E Minis are US stock indexes such as the S&P 500, Dow Jones and NASDQ. They are traded electronically using a trading platform on your computer.

Daily Trading on the US E Minis exceeds $40 Billion dollars per day. It was launched by the Chicago Board of Trade and is now regarded by leading financial experts as the most successful financial product ever launched.

An E-Mini is a futures contract that can be traded electronically on the Chicago Mercantile Exchange and is based on the S&P 500 index. As opposed to normal S&P futures contracts, which have a point value of $250, the e-mini contract has a point value of $50. Emini is a short abbreviation for Electronic Mini S&P 500.

Who trades E-minis?

In Australia there are only a few hundred people actively trading E-minis with interest in the market growing exponentially. The number of active traders is expected to expand to thousands in the next year or two as many investors and share traders discover that it is simple to profit from trading E-minis.

Why Trade the E Minis?

  • Pay just $5.00 US round trip commissions
  • No market makers
  • No gaps and slippage in market hours
  • 65-1 leverage
  • 2 points = 10% ROI in minutes
  • No over night positions held
  • Trade long or short
How to Trade The E-minis Market

The notional value of one contract is US$50 times the value of the S&P 500 stock index.

It was introduced by the CME in 1998 after the value of the existing S&P contract (then valued at $500 times the index, or over $500,000 at the time) became too large for many small traders.

The E-mini has quickly become the most popular equity index futures contract in the world.

The original ("big") S&P contract was subsequently split 2:1, bringing it to $250 times the index.

Hedge funds often prefer trading the E-mini over the big S&P since the latter still uses the open-outcry pit trading method, with its inherent delays, versus the all-electronic Globex system.

E-minis are bought and sold 500,000 times on a typical trading day. Many analysts believe E-minis future trading is the fastest growing product available.

E-minis are growing and becoming more important to both investors and the marketplace, because they allow small investors to access what can be a lucrative income if they become successful at trading. An income of $500 to $1,000 per night is a pittance compared to what some E-mini traders can earn.

There is a great need to have the wealth in the world shared much more evenly so those in the greatest need can enjoy a much better quality of life - the same as the rest of us. And we can enjoy more of what we love.

Through our AliveMatrix trading program we hope to teach people that they can take responsibility for their own financial well being and ultimately we can all help a little to make the world a more pleasant place to live in - especially for those who are experiencing financial and physical hardship at present.

You can find more information about E-minis, how to trade them and/or join the program at www.alivematrix.info

Joan is dedicated to helping people find their true essence and to create a peaceful, happier, loving and successful life. Joan also helps others, through her work to pass on their knowledge and tools for a better world for all.

A man monitors the stock market inside a securities company in Taipei October 17, 2008. (Nicky Loh/Reuters)Reuters - Asian shares gained tentatively on Friday, recovering some of the steep losses in the prior session, after encouraging earnings signals from technology firms such as IBM eased some of the concerns over a global recession.

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Forex Trading Basic Principles in Practice

Most likely you have already stumbled across the world of forex at which times can be very intimidating to the beginner or novice trader. At times it can be hard to find the help and guidance you need, but it is essential that you learn the basic forex trading principles whether you are self taught or have consulted with a veteran forex trader.

It was once said by Woodrow Wilson, "A government's first priority is to organize the common interest against special interests. Successful traders seek out market opportunities capitalizing on the reality that government's first priority is rarely achieved." Speculator from the dawn of time have always questioned themselves, but it is always those who know more who are more likely to succeed.

Practice And Seeking Further Forex Help

Becoming a successful forex trader is not hard as long as you follow a few basic trading principles. It is absolutely essential that you seek further training, especially through the internet, to expand your knowledge and increase your chance of success in the forex market during this modern day and age.

Just A Few Basic Principles

  • Target maximal trade times
  • Assess the markets volatility at any given time
  • Understand and exploit overlapping world markets

Fundamentals of Forex

The forex market presents the opportunity to bet the value of one country's currency against another. Currency for every country fluctuates and in this fluctuation billions of dollars and more are speculated and transacted every day. Despite such a great opportunity for wealth many novice individuals start off trading on instincts or hunches. Don't do this as you will be shooting yourself in the foot and dooming yourself for failure as you leave your money up to lady luck to decide the outcome. Always analyze market trends through statistics before stepping into open waters.

There is hope!

One of the downsides that most novice traders will come across in Forex is that there is a high learning curve. This often means that it will take a while before the novice trader gains the experience and knowledge necessary to enjoy the full prosperity of the Forex market and their investments. Luckily this is no longer the case. There is now ground breaking technology in the form of Trading Robots that can fully automate your forex trades for you at all hours of the day. These systems are extremely accurate at determining market trends and have been proven to work again and again. One of the best and most affordable trading robots out there right now used by the experts to rake in the dough is the Forex Funnel found here at Forex Funnel

The JP Morgan and Chase headquarters is seen in New York in this January 30, 2008 file photo. JPMorgan Chase  and  Co has become the largest U.S. bank by assets, surpassing long-time leader Citigroup Inc. (Shannon Stapleton/Reuters)Reuters - JPMorgan Chase & Co has become the largest U.S. bank by assets, surpassing long-time leader Citigroup Inc .

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Tuesday, October 14, 2008

Day Trading Courses - For Novices and Veterans Alike

Day trading courses are available not only for the newbie investor looking to make his or her foray into the world of investing but are also available for the veteran professional investor looking to hone his or her skills to become more proficient at increasing their return on investment and realizing greater profit margins. Whether you take day trading courses in a traditional brick-and-mortar classroom setting or online via the Internet, there is little to lose and a lot to gain when it comes to investing in your education.

Most of us have been conditioned to believe that the financial success is the result of spending tens of thousands, if not over a hundred thousand dollars, on a college education, to land a job in a lucrative career.

Ironically, the odds are pretty good that if you are reading this article, you are looking to quit your day job to become a full time day trader! If that were the case, you might as well have saved yourself the misery of digging yourself deep into student loan debt and instead paid for a few day trading courses. At least then you would have had a better shot at earning unlimited income potential, being able to work from home, setting your own hours, and paving your way to achieving your own personal, financial freedom and independence.

Now, I'm not knocking a college education. Don't get me wrong. Education is the foundation of all success in life. I am merely being facetious to drive home a point: We as a society are afraid of taking risks with our money and thus play it safe by keeping with our traditional institution of college education leading to a career. However, the perennial problem that we face is that if we want to truly break through our wealth barriers, we must learn to expand our horizons beyond our comfort zones, and get educated about the matters of money and investing.

Enrolling in day trading courses is money well spent, because you can earn your money back many times over, if you apply the knowledge that you gain from these courses.

Do you have what it takes to become a professional day trader?

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Currency Trading Profit Tips

I'm here to share with you some of my currency trading profit tips. These should help you make more profitable trades that will yield long term success in this business. These need to be applied on a daily basis because that is how you build the routines that make you successful.

Profit Margins

When you first get into this business, it seems to be that most people want to make small trades for small profits to learn how to do this. That is a good thing to do, but there is something you need to understand and that is your broker is getting paid. When your profits are a slim margin and your broker is taking a slim margin, that means your broker ends up taking a significant portion of your profit. It also means that they add to your loss too. If you look at the overall cash, you might find yourself down, even if you're doing good trading that would show a profit if you had better margins.

What is margin trading?

Margin trading is the ability to leverage your money with the brokers and make larger trades. This means you deposit like $100, and your broker will let you trade $10,000. As long as you're making profits, your broker is happy. IF you make losses, your broker will cut you off as soon as you get close to your original deposit of $100.

Forex Killer

Forex Killer is the most sophisticated piece of forex trading software on the market. It has a trend finding system in it, so you'll know exactly when to buy and when to sell.

The automated software of Forex Killer will give you an immediate edge in the market. Make trades that work for your profit line. For more information on the Forex Killer software, check out Forex Charting Software.

Investor's Business Daily - When autos go on sale, more people tend to want to buy. The same with clothing and TV sets and soft drinks.

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Monday, October 13, 2008

Forex Trading Made Easy - Automated Forex Trading

When you engage in Forex trading, your goal as an investor is to, naturally, earn from foreign currency movements. The Forex market is a plethora of income-generating opportunities, with 24-hour trading, non-stop access to Forex dealers around the globe, some zero-commission trading options, low-margin requirements for leveraged trading, and the ability to profit in rising or falling markets. In short, using language you can understand, investing in the Forex market is the way to go if you're serious about making money.

We're guessing you are because you're still here. Good. Now you can find out the secret in making Forex trading a whole lot easier, improving your chances of earning. No, you don't need to enroll in a finance class and acquire expertise in trading. That'll take years. What we have is an instant solution: an automated Forex bot.

An automated Forex bot is simply a virtual robot that handles Forex accounts. Basically, it does all the trading for you, day in and day out. That's right. Now you won't have to miss an opportunity to make money. Your automated Forex bot will be there to monitor your trading status when you can't, like when you have an important meeting or date to attend to. You can buy one for less than a hundred bucks, and the returns are higher than the investment, or try a free demo account to test the waters first. Plus, if you're not satisfied, a 60-day guarantee can bring you your money back.

With an automated Forex bot, trading has never been easier and better.

For reviews and information on the top 3 automated trading systems please click here

AP - Nearly all the $3.4 trillion in money-market mutual funds is expected to be federally guaranteed for at least the next three months, now that all the major fund providers signed up to participate by a deadline that passed Wednesday.

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Friday, October 10, 2008

How to Use Japanese Candlesticks in Forex Trading

In the 1700s a Japanese man named Homma, a trader in the futures market, developed a method of technical analysis to analyze the price of rice contracts known as candlestick charting. Candlestick charts display the high, low, open, and close for a commodity each day over a specified period of time, in a format similar to a bar chart, but in a manner that maximizes the relationship between the opening and closing prices.

A narrow line shows the day's price range. A wider body marks the area between the open and the close, referred to as real body. If the close is above the open, the body is white or green (not filled); if the close is below the open, the body is black or red (filled). Steve Nison is normally credited with popularizing candlestick charting in the west and is recognized as a leading expert on how a trader might interpret the readings.

Candlesticks provide specific visual cues that make understanding price movement easier. Trading with Japanese Candle Charts allow speculators to better comprehend market feelings. Offering a wider range of information than traditional bar charts candlesticks give emphasis to the relationship between close price and open price.

Traders who use candlesticks are likely to more quickly identify different types of price action that tend to predict reversals or continuations in trends. Furthermore, combined with other technical analysis tools, candlestick pattern analysis can be a very useful way to select entry and exit points.

Candlestick charts are much more appealing and understandable than a standard two-dimensional bar chart. There are four elements necessary to construct a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period.

There are multiple forms of candlestick chart patterns:

White candlestick - signals uptrend movement

Black candlestick - signals downtrend movement

Long lower shadow - bullish signal

Long upper shadow - bearish signal

Hammer - a bullish pattern during a downtrend; Shaven head - a bullish pattern during a downtrend;

Hanging man - bearish pattern during an uptrend

Inverted hammer - signals bottom reversal, however confirmation must be obtained from next trade;

Shaven bottom - signaling bottom reversal, however confirmation must be obtained from next trade;

Shooting star - a bearish pattern during an uptrend

Spinning top white - neutral pattern, meaningful in combination with other candlestick patterns

Spinning top black - neutral pattern, meaningful in combination with other candlestick patterns

Doji - neutral pattern, meaningful in combination with other candlestick patterns

Long legged doji - signals a top reversal

Dragonfly doji - signals trend reversal

Gravestone doji - signals trend reversal

Marubozu white - dominant bullish trades, continued bullish trend

Marubozu black - dominant bearish trades, continued bearish trend

Candlestick charts are a visual aid for decision making in stock, forex, commodity, and options trading.

This is a very simplified primer on Japanese Candlesticks.

If you are not interested in this much detail I suggest that you research automatic Forex Trading systems.

If you would like to read about an amazing automatic Forex Trading System: Go here http://forexprofitswhileyousleep.blogspot.com/

General Motors Corp Headquarters is seen along the Detroit River in Detroit, Michigan September 17, 2008. (Rebecca Cook/Reuters)Reuters - General Motors is in preliminary talks about a possible merger with fellow U.S. automaker Chrysler, The New York Times reported late on Friday.

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Forex Trading Robots - Best Forex Trading EA to Have

Forex Trading Expert Advisors, or simply put - Forex Trading EAs, are automatic execution forex system trading platforms that render the trading process automatic therefore freeing the trader from continuously watching the market. This also makes it possible to separate the psychological and emotional aspects when trading. The system is setup according to a set of preferences and makes the trade according to these rules. Even the best traders are affected by the emotion we call "fear". Decisions made under duress is often times the wrong one!

Forex trading robots are normally accessed in the internet. It works very similar to having your own broker but instead of a live person doing the trade for you, it is in the form of a program. And since the forex robots don't sleep, you have your own forex trading EA running 24 hours a day, giving you the advantage of not missing any opportunity when the forex market changes. It is now possible to trade professionally even if you are just a beginner in forex trading.

There are a lot of forex trading robots in the market today. Forex trading EAs are great tools to have if you want to bring your trading to the next level. But not all forex trading EAs are made equal. You have to first determine if the software can really work to your advantage. You have to determine if it can really trade effectively and efficiently.

Listed below are a few tips on features you may want to look for in a forex trading robot:

1. 24 hour a day operation - What good is a forex trading EA if it doesn't work for you 24x7??? Make sure that your software works 24 hours a day so you don't miss any opportunity;

2. Updated Trading Automation Technology - Since your money is at risk, you should choose a Forex trading robot with the latest trading technology existing in the market today.

3. Minimum investment requirements - Investments in a Forex trading robot should be minimal in order for you to afford.

4. For forex trading beginners, the option to have a "demo account" is an advantage. This will allow you to do live trading but without using real money. You can get the feel of the market first before really plunging into the sea.

5. Highly recommended by Forex Trader enthusiasts. It is without a doubt that forex trader experts have forex robots working for them. Look for their expert opinions on the best forex trading EA on the market and head their suggestions.

Head of caution: Never forget that although Forex trading can create huge sums of profit in the least amount of time for you, it can also cause you to lose money in the same amount of time. Using a Forex Trading EA minimizes this risk because it takes advantage of the earning potential 24 hours a day, hence you never miss a trading opportunity that comes from a great market trend.

I'm an automotive enthusiast; my passion is all about cars and auto accessories. And to help finance this hobby, I do extremely well in forex trading and own several online businesses. You know, with the right set of tools and information, you can earn huge amounts of profit in forex trading.

If you want to read more about it, go to: http://reviewsummaries.com/category/forex-trading/

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Monday, October 6, 2008

Forex Trading Robots - Measuring Profitability

Forex trading software has become more sophisticated with the introduction of forex trading robots. Experienced and novice traders want to test drive this automated way of trading and gauge how it measures up in the forex market.

Most of these programs have convincing presentations and impressive performance records, but be wary about building your trust too much about any particular forex trading software. Most of them offer tested data which are pretty much remarkable, but in most cases these robots have not traded with hard currencies. It doesn't mean that these forex trading software systems are fraudulent, created just to swindle you. A number of these robots have track records of profitability for several years and have been tested during actual trading. The only way to find out which one of these particular trading robots can work to your advantage is to acquire the software and try it out.

There are hundreds of forex trading robots available on the market. Some of them promise a refund if you find their system to be such a waste of time, while others can do the job. You can try out different systems that work best for your trading style. There are programs geared towards beginners, experienced and long term traders. The option of which programs to use is up to you.

Be on guard to the ones that claim they're the most profitable and convince you that you'll become rich quicker, these are the ones that you should avoid. The tested automated forex robots will make profits for you, not in a quick manner but a steady movement, thus, increasing your profit slowly but surely. A lot of money can be made dealing in forex trading but will not make you rich overnight.

Look for those forex trading programs that make more winning calls based on past performance and adopt an autopilot feature to stop automatically to minimize any losses when the market is unsteady. Such systems are good candidates for making profits, in the long run.

The most essential method is to consider carefully about your investment objectives and employ proven trading strategies. This is where the forex trading robots become useful. Since robots respond to the program and commands of its owner, your forex trading robots will automate the trading for you, using the tried and tested trading strategies which you can input in its memory.

Automated forex robots and trading systems are used by both beginner and experienced forex traders for more profitable trading in the forex market.

Visit Forex Trading for more info on foreign exchange currency market trading.

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Sunday, October 5, 2008

Steps on How to Become a Master of Day Trading

The success with day trading does not knock on the doors of all people. If you are striving to become a master of the craft, then you will have to bet your wits against a rival in the stock market. Every time you earn a profit, it means that someone else or another day trader loses a part of his investment. Thus, you should be equipped with a profound knowledge and loads of valuable techniques on day trading and then execute your smartest moves.

Needless to say, day trading is one full time career. Literally speaking, there is the need for you to watch over the market, its prices, and how your stocks can play well with the ongoing flow. Just a minute of being inattentive may mean a defeat of your purpose.

Basically, if you are aiming for a stable profession in day trading, you have to keep yourself abreast of all its ins and outs as well as its ups and downs. The following are some of the insights that will help you make the best out of your day trading experience.

Open your eyes to reality. Day trading is no fairy tale. Your money can't accumulate your desired profits overnight. You will need enough time to market your stocks.

Learn from mistakes. No one is perfect, so to speak. The same goes with day trading. There are always mistakes that you will end up with and you are no super hero who can fight off these odds. Therefore, you need to learn from all these wrongdoings and try to do things better the next time.

Strike while the iron is hot. When there is a great opportunity to make profit, be ready to plunge into the business. Work hard. Try to limit your chances of losing and heighten your possibilities of winning.

Set a limitation for your losses. Ask yourself as to how much you are ready to lose as you partake in the stock market business. But be sure that you don't exceed such limits. Be a hundred percent confident with your preferred day trading technique. Success is often the result of your will and desire to standout.

Be responsible. Whatever your decision is, be ready to face its consequences. Your self-discipline, determination, and persistence are very important. Study, study, study. You can take online tutorials and learn about the stock market and day trading through the cd-rom packages sold online, by joining the online forums, reading newsletters, and attending seminars.

Read on the valuable tips for day trading. You can only overcome your fear if you are knowledgeable of the things which you can do to improve your craft. Enjoy. It is important also that you enjoy what you are doing. Day trading can be both risky and exciting. What is most significant is that you know how to handle things so that you will end up with a fruitful experience.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com

Bloomberg - Oct. 3 (Bloomberg) -- Congress passed a $700 billionfinancial-market rescue plan designed to unlock credit markets,reversing a rejection that sent global stock markets plunging andthreatened to worsen an economic slowdown.

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