Rules For Forex Traders

Forex trading can deal with lots of money and so when you are trading you need to be sure that you have optimal conditions. Too many traders trade out of habit and this can be a dangerous thing because it may not mean you have the best conditions. As a matter of fact trading in poor conditions can cost you hundreds and sometimes thousands of dollars. Trading conditions will not always be optimal and you cannot wait to only trade when they are. It isnt about recognizing the perfect time to trade. Instead it is about knowing when not to trade. When the market is moving sideways or not really moving at all it is unwise to trade real money. You have no indications of what is going to happen and so you are making your decisions off of pure guess and that is a dangerous place to be in. Do not trade real money when you are ill or overly tired. The condition of your body can have a big effect on how your mind thinks. If you dive into trading and you are tired, worn out or just sick it will have an effect on how quick you think and what you think. Trading when your mind is not at a high will mean trouble. Give you body the time to rest and save your bank account the funds of you trading while sick or tired. There is almost nothing worse thantrading when you are emotionally distracted by other factors. It is horrible for two reasons. One your mind isn't on the trading take place, it is off trying to resolve or analyze the problem. The less focus you have the more mistakes you make. The second reason is that if you are emotionally distracted then you are already allowing your emotions to take precedence on your decisions. If you are emotionally distracted then the odds of you trading based on emotion are extremely high. And finally never trade with money you cant afford to lose or when you feel you have to make a certain amount. Those factors create unnecessary pressure on you and your trading. These pressures will translate into you making decisions you probably wouldn't otherwise make. You will feel pressured to push the rules you have laid out in hopes you get lucky and make money. Luck isn't a strategy that belongs in forex trading

Global Forex Trading

Forex is one of the greatest hommy work opportunity to make money. It gives an opportunity to make money from the comfort of your home and spending the time with family at the same time.

It is also an opportunity which you can do along with your existing day job. Forex means foreign exchange and Forex trading means is the trading between foreign exchanges.

Forex trading requires some knowledge about the way the Forex market runs. You have to learn about he factors both local and the global which affects the market.

If you want to succeed in this particular trading you must have the knowledge about the basics and facts.

Global Forex Trading offers the chance to deal in real time online currency trading that makes millions of forex brokers become more rich every day.

Global Forex Trading has less publicity that stock and commodities market and even the futures, even more than $2 trillion of currencies are transacted every day on the global forex market.

Compared to stocks and shares or commodity markets that have specific opening and ending trading times. At the same tim, Forex markets are available for trading anytime with price of currencies changes and fluctuates everytime.

Forex trading has become an extremely popular way to trade the global market, the largest and most liquid market in the world.

The Forex Trading market is open 24 hours a day. Forex trading also gives free commission and available on more than 60 currencies worldwide.

Global forex trading boasts that they provide the only forex trading platform that is suitable for both beginners and professionals.

Forex Trading has no restrictions of getting profits no matter what the market condition.

Nowday, the Global Forex Trading is available not only for the large investors but the smaller one can take a part too.

Leverage is the main key and powerful tool to Forex Trading wealth. You should have a good education in Forex trading to reach gain and profits consistently.

In Forex trading, you can get a leverage of 20 to 50 times commonly up to 100% margin in some special cases. In stocks or shares, you may be able to get it of 50 - 70% of your stocks or shares.

Leverage is the main key and powerful tool to Forex Trading wealth. You should have a good education in Forex trading to reach gain and profits consistently.

With that leverage comparison, you may be able become a millionaire fastest in Forex trading.

All things you need to know and learn it up in Forex trading ; knowing risk level - how much you are willing to lose, understanding the different forex trading systems as technical and fundamental and research the trading systems which you can be familiar with how they work.

Also learning the trading trends, price history, support and resistance lines, familiar with the fundamental economic factors and its issues that effect to the Forex market.

Global forex trading is something not many people consider for investment - because of less information - but worldwide forex trading continues and become more and more popular recently.

Individuals all over the world are investing in the Forex market and gaining thousands of dollars every day.

Why Hedge Foreign Currency Risk

International commerce has rapidly increased as the internet has provided a new and more transparent marketplace for individuals and entities alike to conduct international business and trading activities. Significant changes in the international economic and political landscape have led to uncertainty regarding the direction of foreign exchange rates. This uncertainty leads to volatility and the need for an effective vehicle to hedge foreign exchange rate risk and/or interest rate changes while, at the same time, effectively ensuring a future financial position.

Each entity and/or individual that has exposure to foreign exchange rate risk will have specific foreign exchange hedging needs and this website can not possibly cover every existing foreign exchange hedging situation. Therefore, we will cover the more common reasons that a foreign exchange hedge is placed and show you how to properly hedge foreign exchange rate risk.

Foreign Exchange Rate Risk Exposure - Foreign exchange rate risk exposure is common to virtually all who conduct international business and/or trading. Buying and/or selling of goods or services denominated in foreign currencies can immediately expose you to foreign exchange rate risk. If a firm price is quoted ahead of time for a contract using a foreign exchange rate that is deemed appropriate at the time the quote is given, the foreign exchange rate quote may not necessarily be appropriate at the time of the actual agreement or performance of the contract. Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.

Interest Rate Risk Exposure - Interest rate exposure refers to the interest rate differential between the two countries' currencies in a foreign exchange contract. The interest rate differential is also roughly equal to the "carry" cost paid to hedge a forward or futures contract. As a side note, arbitragers are investors that take advantage when interest rate differentials between the foreign exchange spot rate and either the forward or futures contract are either to high or too low. In simplest terms, an arbitrager may sell when the carry cost he or she can collect is at a premium to the actual carry cost of the contract sold. Conversely, an arbitrager may buy when the carry cost he or she may pay is less than the actual carry cost of the contract bought. Either way, the arbitrager is looking to profit from a small price discrepancy due to interest rate differentials.

Foreign Investment / Stock Exposure - Foreign investing is considered by many investors as a way to either diversify an investment portfolio or seek a larger return on investment(s) in an economy believed to be growing at a faster pace than investment(s) in the respective domestic economy. Investing in foreign stocks automatically exposes the investor to foreign exchange rate risk and speculative risk. For example, an investor buys a particular amount of foreign currency (in exchange for domestic currency) in order to purchase shares of a foreign stock. The investor is now automatically exposed to two separate risks. First, the stock price may go either up or down and the investor is exposed to the speculative stock price risk. Second, the investor is exposed to foreign exchange rate risk because the foreign exchange rate may either appreciate or depreciate from the time the investor first purchased the foreign stock and the time the investor decides to exit the position and repatriates the currency (exchanges the foreign currency back to domestic currency). Therefore, even if a speculative profit is achieved because the foreign stock price rose, the investor could actually net lose money if devaluation of the foreign currency occurred while the investor was holding the foreign stock (and the devaluation amount was greater than the speculative profit). Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.

Hedging Speculative Positions - Foreign currency traders utilize foreign exchange hedging to protect open positions against adverse moves in foreign exchange rates, and placing a foreign exchange hedge can help to manage foreign exchange rate risk. Speculative positions can be hedged via a number of foreign exchange hedging vehicles that can be used either alone or in combination to create entirely new foreign exchange hedging strategies.

Forex Swing Trading with Elliott Wave

When evaluating the forex market for swing trade opportunities the focus is placed on predicting directional changes or continuations for a given currency pair. For this we rely on technical analysis.

In technical analysis, just as in fundamental analysis, there are lagging indicators and leading indicators. One of the most reliable tools used to predict forex market swings is Elliott Wave analysis. Elliott Wave analysis can be used to identify trends and countertrends, trend continuation or exhaustion and to evaluate the potential price targets of a trend.

You can apply Elliott Wave analysis to both long and short position swing trade set ups for your currency pairs.

Elliott Wave theory is named after Ralph Nelson Elliott, who concluded that the markets moved in a repetitive pattern of waves. He attributed this action to the mass psychology of the market.

Elliott concluded that the market¡¯s movement was a direct result of the mass psychology of the time and that the stock market is a fractal. A fractal is an object that is similar in shape, but at different scales. A great example of a fractal in nature is a stalk of broccoli. The stalk and the individual branches look exactly the same; just the branches are smaller in scale.

Fractals just happen to form in accordance with Fibonacci ratios. Is this a coincidence?

Elliott attributes this mass psychological move to the human trait of herding. Even though Elliott¡¯s theories were based on stock market price movements, it has been applied to evaluating Presidential approval ratings and fashion trends changes as well.

The conclusion, the market price actions are not the cause of economic growth or slow down, but the reflection of the mass psychology of investors. If the mood of the investing public is upbeat then a bull market ensues. This is counter to what most individual perceive, that because there is a bull market the mood of the investing public is upbeat.

Elliott Wave patterns follow a sequence that the markets move up in a series of 3 waves and down in a series of 2 waves. This 3 wave impulse and 2 wave corrective sequence form the foundation of the 5 Wave impulse pattern (the opposite is true in a downtrend).

The Elliott Wave Counts are as follows;

Wave 1 - Short Covering
Wave 2 - Pullback from Short Covering
Wave 3 - Major Rally Phase
Wave 4 - Institution Pause in the Rally
Wave 5 - Retail Buying

Wave 1 is usually the weakest of the impulse waves. It is a brief rally based on short covering of the bears from a previous move down. When Wave 1 is complete, the currency pair sells off, creating Wave 2.

Wave 2 ends when the market fails to make new lows. You often see dominant reversals patterns form at the end of this wave signaling the being of the rally phase or Wave 3.

Wave 3 is the longest and strongest of the impulse waves. This signals strong currency buying or selling in the direction of the trend. This trend usually starts of slowly, but tends to accelerate as it breaks to new highs above the top of Wave 1.

Like any trend, especially a strong trend a correction will occur. Traders will begin to take profits and the currency pair will retrace. This signals the beginning of Wave 4.

Again the currency pair will rally ushering in the Wave 5 rally. Wave 5 is typically supported by the retail traders and not institutional buyers (the herd) and tends to lack the momentum generated in the Wave 3 rally. This creates divergence that can be easily measured on any technical oscillator. After the currency pair breaks to new highs above the previous Wave 3 high, the rally loses steam and changes trend.

This trend change can result in either a new 5 Wave impulse pattern or a corrective in nature.

Now that we know what the Elliott Wave analysis is, how would a currency trade using this analysis look like, just as an example?

Look to Wave 5 as the most reliably tradable impulse wave. The trade sets up as follows. Look for the Elliott Oscillator to pull back between 90% and 140% of the Wave 3 high on a daily chart. This pullback should correspond to a 38%-62% Fibonacci retracement from the Wave 2 extension. This signal is the strongest when the Fibonacci retracement is between 38% - 50%.

Like any technical analysis tool you never want to employ an indicator as a stand alone analysis tool. A trigger and a confirming indicator are required as well.

Look for a trigger in candle patterns, such as Harami, Tweezers or Harami cross. There are a variety of software packages on the market that perform Elliott Wave counts and have other entry signal indicators as well.

Draw a regression channel on the Wave 4 retracement and look for a break above or below the channel as confirmation to enter the trade.

Place stops at the high of the Wave 1 advance, just below the 38% Fibonacci retracement level or where your individual trading plan dictates. Trail your stops once the currency pair has advanced past the Wave 3 high. Look for reversal candle patterns like doji, hammers, shooting stars or hanging mans for signals that the wave is about to end or stall. A typical price target is 127% retracement of the Wave 4 low.

This is just a glimpse of how Elliott Wave analysis can be deployed to enhance your forex swing trade evaluations. Look more into the Elliott Wave theory and other strategies as tools for increasing your forex swing trade opportunities.

Learn the Simple Forex Market

Forex trading is a market which is both complex and simple. How to make money is the simple part, but the implementation of the process to learn forex market can be a little difficult. Forex education can prove to be a boon for all those who are willing to try their luck in forex trading. Therefore it is very important for them to understand the ways and methods of forex trading before actually getting into it. Even if one is well experienced in trading, there is always a room for improvement even for the experts.

The forex market is surely not a game for a fresher in this field and they need to improve their skills before getting their hands wet. The fact is that many individuals who make money online keep losing money in the forex market and very few are earning millions annually. This major difference is caused by two main reasons, namely, forex trading skills and the trading system being used.

Forex trading gives a whole new option to the beginners to succeed financially. To learn Forex market and list Forex trading into one of your financial plans is a must. When an investor adapts the right trading skills, the limit to earn profits is left far behind. In other words there is no such limit defined to earn profits if the trading skills are absolutely apt. There are many trading systems that provide you with the facility of making money online. But what is required by us is to identify and understand that which one will suit the best to our requirement.

1. Note the values of the currencies
2. Know the trend ending time
3. Affect of current economy
4. Use of long term trading strategies

To succeed at currency trading, one needs to learn the right forex trading strategy which can be possible if and only if the traders follow these winning tips and to move ahead and reap huge benefits or profits.

Enhance your forex trading with an automated trading application

One of the differences between the stock market and the forex market is the vast trading that occurs on the forex market. The foreign exchange market
(currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. The forex trading market is a volatile industry. It is also a very lucrative market. However, to be a successful FX trader you need to educate yourself and have a long term plan. The lack of a forex trading strategy will guarantee failure. When starting out as a forex trader it is easy to abandon your plan or lack of a plan. A good forex trading education is a must.

Being well verse in the stock market will assist you with your forex trading. However, to enter into the foreign exchange market it is not necessary to have any prior trading experience. Some basic forex strategy systems are the fundamental analysis and the technical analysis.

Fundamental analysis
The fundamental analysis is performed on historical and present data, but with the goal of making financial forecast. The data used in this analysis is; money policy, government policy and economic indicators. Some examples are GDP, exports and imports. The analysis of this data is for a specific business cycle.

Technical analysis
Forex technical analysis is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume. In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument. Technical analysts, sometimes called "chartists", may employ models and trading rules based on price and volume transformations.

Before you dive head first into the forex market open up a demo account. A forex demo account is a simulated account where you get virtual money of $25,000 to $1, 00,000. You get live quotes and bids that are part of real forex trade. Once you have master that are ready to take the plunge into the real thing open up a mini account.

A mini account is a great stepping-stone to the big leagues of FX. It allows you to open up an account where the leverage is higher in comparison to standard accounts. With a mini account you are dealing with mini contracts. You can open up a mini account with $250. When you are ready you can move onto a standard account

The forex market welcomes traders 24 hours a day. Forex market opens on Sunday 5 pm EST (10:00 pm GMT), closes on Friday 5 pm EST (10:00 pm GMT). No matter what region of the world you live in you can trade on the forex. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs. An example of forex trades in the western region of the world is USD/EUR and USD/GBP. An example of a forex trade in the Asian Economic regions or the world is JPY/USD and JPY/GBP.

Technology is a beautiful thing. To be involved in these markets you don't have to be awake for every different time zone. Automated analytical forex software applications allow you trade during the middle of the night while you sleep. There are many, different type of automated forex software applications on the market. Some of the most commonly used applications are forex killer, auto- pilot and forex-funnel to mention a few. These applications are used by; professionals and beginners alike with no experience whatsoever. These applications can assist you with a forex trading strategies.

A Few Forex Tips To Help You Achieve Success

You can earn a lot of money through Forex and it in fact only requires that you learn from some tips that will show you how to maximize your profits from dealing in foreign currencies. The simplest Forex tip is to use weekly charts to boost your profitability. This means that you have to take the trouble of checking the weekly charts so as to be able to gain a proper perspective of the currency market.

Such weekly charts are ideal for learning and finding out more about the major trends that are taking place and they will also help you understand the proper support as well as resistance levels as too gains insights about entry points.

Don't Overtrade

Another simple Forex tip is learning to avoid from doing too much trading. It pays to understand that fewer trades you enter into the better are the chances that you can realize a handsome profit. It is more important that you concentrate on getting things right rather than indulging in quantity trading. Smart Forex operators earn money from doing the right things well and avoiding doing the bad things. In fact, the more successful traders earn high amounts of money from doing only limited amount of trades.

A healthy appetite for risk is essential to succeeding with Forex and so you have to learn how and when to take risks which however must be judiciously taken and which should not deteriorate into starting to gamble in the hope that you will make a major killing. At the very least a person that is averse to taking risks must abstain from doing Forex deals.

For those people that do small Forex trades it is not a good idea to branch out because it is in fact necessary that they concentrate and focus on their limited trades instead of trying to expand their dealings without having already tasted success.

You can also succeed with Forex by setting yourself realistic targets. The more realistic you are the better are the chances that you will be able to work hard enough to realize your objectives. You should decide to engage you in Forex and then give your all to succeeding and also keep in mind that your targets are not too farfetched or unrealistic.

With these tips in mind you should get started with Forex and bear in mind also that to be successful you will need to learn how to focus your efforts on the best trades that should be used with best odds of succeeding. Weigh your options and set realistic targets and then do your best to realize a profit.

Forex Signal Providers, Who Really Need Them?

Forex Signal provider is a professional trader who is dedicated to monitoring the market closely and is able to read the price action and can predict its future move. Based on this prediction, he can confidently generates entry signals and send it to his subscribers.

He apply his technical analysis experience in analyzing the price action on the charts to determine the proper entry price, stop loss price and the take profit price, in order to generate a winning trade with high probability.

What a signal provider do for you?

Most of forex signal providers works mostly on EUR/USD currency pair, this is may because it's the pair which constitutes about 40% of the entire forex market movement alone. Also this pair has the less spread among the other currency pairs, so it's very suitable for scalpers and short term traders (intraday traders).

When a Forex signal provider generates an entry signal and send it to his subscribers, he only send the prices' numbers for entry/stop loss/take profit values. He does not tell any information about his analytical methods which led to these values. So, His service does not add any experience to his subscribers at all, the subscriber trader only have the option to open a trading position based upon this signal or not.

That means that the trader should at least has a reasonable level of experience about technical analysis in order to have the ability to evaluate the provided entry signals himself and take the proper decision, so he uses the provided signal just as complementary information which assist his trading decision.

The common mistake which many novice traders fall in is blindly following the provided entry forex signal without even trying to evaluate it themselves. This make them can't take his responsibility for his trading decision, thus when the trade become a loser he blame the signal provider.

However, the signal provider services are very suitable for those traders who work part time, and do not have the advantage of monitoring the market all the day in order to generate their own signals. In such a case, they utilizes these services just as a timing for entering the market, these signals providers give them the exact time to enter and exit the market without the need to send a lot of time waiting these times in front of the screen.

Final note:
As a trader, you should not relay completely on signal provider service. When you generate your own signals, you combine several trading indicators like trend lines, moving average, stochastic, in order to get a high probable trade signal. Meanwhile, providers might choose to employ just one indicator in order to generate their signals, which may not be 100% accurate. This justifies why you should compare and contrast signals between one another and for the movement of the currency price.

Ways to Read Forex Chart

If you are planning to trade in currency then you should know the different ways of reading the forex chart. Due to this reason you should try to gain the knowledge about reading the charts. If you know this then you would be able to earn huge profits in short duration of time. You would find that the experienced trader would always take the proper training before entering into the market of forex. If you are a learner then you should always start the trade with the nominal amount. You should no invest huge amount at a particular point of time.

If you want to learn the ways of reading the forex chart then you can purchase this software that would provide you required knowledge about the forex market. This software would aid you to keep the track of the money that you invest in this market and it would also keep the track of your time that you spend in this market. This software would help you to keep a track of the amount that you have invested in the firm. This software is handy. If you are interested to become a forex trading pro then you should try to take the maximum use of this software. If you use this software then you chart using this software then you would get the perfect knowledge about the forex trading that is offered by the forex market.

Currency trading market is considered to the largest market in the whole world and it one of the busiest markets. You would have problem of keeping the track of the forex market. You would be able to keep the track of the various trends that are prevailing in the market. if you are using the this software as a tool then you should study the changes that are taking place in the forex market. The knowledge that you have gain would aid you to trade in the market.

If you want to install this software then you need to explore yourself to net. You can use different trends and pattern of the forex chart. You can use the special tools that can be generated in short duration of time. You can use this tool to examine the software that you are using. The forex charts would help the trader to take the decisions about the market in which you are dealing. Forex charting software would provide relief to the people that want to become successful and want to get the deal that they want. There are different methods that can help you to the knowledge that you want to have. This would help you to make the future predictions about the forex market. This would help in charting the different types of software. There are various types of software in the market. You need to select the software as per your needs and requirements. You need to be careful in selecting the software for your deal.

Stock Market Trading - Winning Trading Plan

Successful stock market trading begins with a winning trading plan. It's as simple as that. If you develop a well-conceived trading plan to guide your actions in the stock market you will already have the advantage over most of your market competition. Put simply, it gives you the edge you need to win over the long haul when trading the stock market or forex market.

A stock market trading plan will not guarantee your success in the markets, but a good plan will enable you to work methodically toward your stock market trading goals while reviewing on a regular basis what is working and what is not. It will act as a roadmap for your trading journey. It will enable you to respond positively and constructively no matter what happens with your individual trades. And, most importantly, it will help you control the only thing a trader can control: his or her own actions.

Finally, stock market trading is a business. It can be a fascinating and sometimes thrilling business, but in the end it is a business. A trading plan helps you treat it as a business.

Here are some important elements of a trading plan.

1. Why am I trading? What are my goals?

The answers to these questions might seem obvious, but they usually are not. Take some time to ask them of yourself, and seriously consider the answers. You may be surprised by what you learn. And whatever the answers, you will have a clearer picture going forward of what this enterprise means to you, and that will help you survive any rough patches.

2. What markets am I going to trade and why?

It is often best to specialize, especially for beginning stock market traders. Many pros make a great living trading the same stock day every single day for years. Choose a market that is appropriate for your experience level and trading style. Consider other factors such as available margin, volatility and liquidity.

3. What is the concept or philosophy behind your trading methodology?

Your trading system must have a concept behind it. Whether you are a value investor like Warren Buffet or a trend trader like George Soros, you should understand why you are doing what you are doing, how your beliefs about the markets define what you will do as a trader.

4. What will be your specific method?

In other words, specifically how will you execute your trading ideas? Will you buy breakouts or pullbacks? Buy oversold or sell overbought? Or will you use specific technical setups such as moving-average crossovers or another indicator-based strategy? Under exactly what conditions will you enter? When will you know to exit?

5. How much money will you risk on any single trade? On trading in general?

This is critical. Of course, start small. But just as importantly, have a plan in place for how much you will risk, emotions don't cloud your judgment when the time comes. The key is to find an allocation that doesn't cause any stress but still makes the trade worthwhile financially. One of the biggest problems with newer traders is that they are trading way too big in relation to their account size. Like when you are forex trading. Trading forex at 100-1 leverage is like introducing your mistress to your wife. Yes, you can do it, but that doesn't make it a good idea. Normally they don't get along too well.

6. What will my trading rules be?

This is also critical. Your trading rules include entry and exit rules, rules governing maximum daily, weekly or monthly losses, maximum risk on any given trade, the maximum number of trades per week, etc., etc. These rules enforce discipline and keep you out of trouble. What stock price will enter at, what stock price will I will exit. Be discplined.

7. How will I record and evaluate my trading performance?

Allow me to repeat myself: This is critical. In fact, this might be the most important element of trading for new traders in the stock market. A new stock market trader who evaluates his trades, winners and losers, in an effort to learn what works and what does not, will make quantum leaps forward in terms of ability and profitability. If you have a working trading plan and evaluate every single one of your trades after you have closed it you have already beaten 95% of the competition.

8. What are my rules for managing profits?

What's the problem with profits? Well, believe it or not there is one, and it's a serious one. It's called euphoria, and it clouds the judgment perhaps more than any other emotion related to trading. Start piling up the profits for the first time and it won't be long before you are convinced you are king of the world. About 30 seconds later you'll be broke, following a series of unwise and exceedingly risky trades. So have a plan for protecting closed profits when you have reached your goals for the week or the month. Don't give them all back.

9. How will I reward myself for following my trading plan?

Don't leave this out. Following your trading plan will bring rewards in the form of profits, but you should also consciously reward yourself for doing so because it is such an important part of successful trading. So if you finish the week or the month (or even the day) without having broken any of your trading rules, find a way to reward yourself. You deserve it. You are in rare company.

Learning to Trade Stocks

Learning to srade stocks is no easy matter. But it's not impossible. You have to set yourself out to spend some time to do research and to onitor your positions every once in a while. I have been trading stocks for over 15 years. I can remember my early years of trading. I would get into a position and then when I saw that it was going against me, I would get out, often at the very wrong time. I say that because the next day or week the stock surpassed where I had bought it from.

Learning to trade stocks requires some skill but it also requires you to shed some of your ingrained, inbred emotions. It's these very emotions that caused me to sell stocks too early in by beginning days of trading. I have overcome these emotions now and I have a set of rules that I follow religiously. That doesn't mean that I can't change the rules of my system but I have to give myself a good reason to do so. If I don't change my system than I stick to them. That is how I keep emotions out of the equation.

The most important way to help yourself when learning to trade stocks is to come up with your own system and practice. But practicing with real money can be costly. Some people refer to this as your tuition but what if you could avoid putting real money on the line and still get the practice you need?

A way to do that is by a concept known as paper trading. Now, there are critics of paper trading that state that because you are not putting real money on the line you will not have the same kinds of emotions that you would had you put your hard earned cash in. They also state that you will not get the same kind of fills that you would when you trade for real. There is some truth to these statements but it shouldn't stop you from pursuing paper trading because there are ways to reduce the aspects of paper trading that are criticized.

To counter the first item, paper trading is still experience. Yes, the emotions are not the same but what you are really doing is trying to get a feel for whether your system is working or going to work. The second item's counterpoint is if you take the midpoint of the bid and ask at any given time of the day or at the close, you would likely get filled at those levels had you traded real money. That's because it falls within the range of the bid/ask spread. I have used this technique when trading for real and with the exception of super fast moving stocks, I almost always got filled.

I think if you want to go about learning to trade stocks you need a system and you need to be able to practice trading. You want to be able to do both of these without putting up a whole lot of capital (none if you can get away with it). One system that I have found that is indispensible and reliable is the CANSLIM method. This method has been helping people learning how to trade stocks to profit.

Forex Trading Robots - What are They? And Why Are They Being Used So Much Nowadays?

There is no doubt that the Foreign exchange market is among the fastest growing market in the world today. Trading volumes of these markets are growing in an arithmetic progression every year. Traditional daily turnover in Forex markets were reported to be over US $3.2 trillion in April 2008. With this figure alone, no one should tell you how liquid Forex markets really are. Though the bad economy has greatly reduced the potential of the Forex matters, its still stand out as the most liquid markets you can find out there.

Trading Forex is a very difficult and risky task. But given the huge amount of profits available in this market, people are flooding it on a daily basis with the aim of making some extra or full income from Trading Forex. With the financial crises around, and people loosing their jobs, some folks always think Forex trading can be a save heaven for them. But you should always take special care when getting in to such markets because: where there are big profits to be made, there is always the possibility of big losses as well.

In any efficient economy, there would always be a supply to every demand. Given the complexity involved in trading in the Forex markets, there are quite a number of people who don't know enough about Foreign exchange markets but are interested in trading foreign currencies. Special software called Forex robots have been designed which could greatly reduce this complicated process involved in Forex trading.

Most of this software is called Forex robots, meaning that they are capable of instructing you exactly on what to do in what circumstance. Others may even automatically do it do it for you. For example, the robot may instruct its user to sell a particular currency, and buy another currency based on the market data analysis made.

While these robots could be right in most cases depending on the mark, it is good to take note that they are not always correct. There are just a software and like any other software, their output depends on their input. Garbage in, garbage out. This simply means that you may loose so much money if you don't a good robot that that has been effectively designed to take most of the parameters into account. The Forex market is actually beyond the reasoning scope of even a Forex robot. That is why no one can say with certainty that they can trade Forex without some losses here and there.

Since Forex indicators have been programmed to run on some given pre- market indicators which have been judge by experts as key indicators preceding key events, it can be a wise idea to take a look at them if we intend to trade this very liquid market.

Forex Price Movement - Is Chaotic and Unpredictable But You Can Make Money Here's How

Don't let anyone tell you that can predict Forex price movement with scientific accuracy, it's a lie. Prices don't move science but you can make money, here's how...

The reason Forex prices are not predictable is obvious, humans decide the price of any currency and you can't predict what they will do with certainty.

There is a big industry selling Forex robots and gurus selling get rich quick systems, telling you that you can predict prices in advance but common sense tells you this cannot be true - why? Because if you could predict price, everyone would know the price in advance and there would be no market. Prices move because you can't predict them, NOT because you can.

You can make money though!

To make profits you have to calculate and trade the odds successfully.

While you cannot predict human nature with certainty, it is constant and never changes. The emotions of greed and fear are always present and these emotions are reflected in high odds, chart patterns that are tradable for profit.

When you trade Forex, you need to trade like a good poker player, who folds or passes by hands that have low odds and then bets when the odds are in their favour. If you do this and have sound money management, you can make a lot of money.

We all want to be perfect and pick market tops and bottoms in advance but it's simply not possible.

To win at Forex, you need to trade the reality of price change only. Prediction is simply hoping or guessing and you will find your predictions (if you try them) are as accurate as your horoscope.

The best Way to Trade is:

Look at a Forex chart and you will see long trends that last for many weeks or months.

Most of these big trends start and continue from new chart highs or lows. You should therefore trade breaks of important support and resistance levels and follow them, as chances are a big trend will develop. You're NOT predicting, you're trading the reality of price change and increasing your odds of success.

Most traders can't trade breakouts because they think they have missed the start of the move and wait for a pullback to get in. It doesn't come and the trader misses the move.

To build a breakout trading system is easy and will always have the opportunity make money, as markets will always trend.

Simple systems work best in Forex trading and we will show you how to put together a simple, long term, forex trading breakout system, in part 2 of this article series.

Trading the odds and trading long term, is the way to make money and you don't need to predict anything!

Choosing the Best Professional Forex Brokers

If you are thinking of getting in touch with USA forex brokers, there are some important factors you need to consider. It's actually not that tough to find one considering there are lots of these professionals out in the market today. The real challenge however is finding someone who can really bring you results and assure that you are going to get quality services out of your investment. Bear in mind that forex brokers' rates vary accordingly and they may turn out to be a bit pricey.


The reason why it is important to hire a forex broker that specifically trades in the US dollar currency is that it gives you exposure to experiential and technical aspects. The US currency is one of the most widely used trading money in the market today. It's like the base where other currencies peg their rates at so when the US dollar fluctuates, it tends to change the course of the trading market as well. Liquidity is something that you must expect when it comes to the trading game.


Here are some important points you might need to consider when it comes to choosing among USA forex brokers.


1. Is the forex broker duly regulated? - The US bank and its related financial agencies have a say on the players in the forex market. Therefore it is important that you get in touch with these types of people. The great thing about using forex brokers who are regulated is that they are quite meticulous with their process. They need to do this because aside from liaising with you and their business spread partners, they also need to submit their financial standing and reports to regulating authorities. This way, you are assured that you are getting in touch with reliable people with a solid reputation.


2. Be the one to specify your trading platform - Although forex brokers are known to employ their own trading platforms, it would still be best if you are the one who will be giving directions for this system. Your trading platform should depend on the amount of time you can devote on the project and your work system. There are many different kinds of trading systems which you can use. You can either choose to have your trading run on autopilot, you may want to purchase a licensed trading software, or simply log online to an open source trading network. If you are not yet familiar with these things then you can also ask the expertise of forex brokers to help you choose the platform that would suit you best.


3. Trading methods used - Aside from the trading platform being used, you should also delve deeper into the specifics of the trading methods being used by your preferred forex broker. Here is where things such as spread, funds safety, and fractional trading would come into picture. All of these key ingredients to facilitate your forex business.


Do not let yourself be overwhelmed with having plenty of choices for USA forex brokers. Make sure you trim them down to qualified individuals whom you feel comfortable to work with.

5 LOGICAL STEPS TO PROFITABLE FOREX TRADING CAREER

One thing that contributes so much to the failure of many in taking lasting profits from the forex market is ignorance about what steps to take when making trading decisions. Let us quickly go over to 5 secrets steps to a profitable forex trading career.

STEP1: learn to plot the charts.
If indeed you truly want to have an enduring forex trading career, there is need for you to learn how to plot charts on all time frames. The type of chart you plot are determined by your trading system and strategy. charts are easier to plot on the metatrader4 trading platform.

STEP2: Understand your set up conditions
These are conditions you need to spot before you enter a trade. This is one area many traders are led astray. A trader has to wait for his or her set up conditions to be met before initiating a trade. Most traders make money and give it all back due to failure or in ability to follow the set up conditions included in there trading system.

STEP3: Know your entry points.
These are price levels which offer high probability entry opportunities with low risk. certain trading tools can be of tremendous help in determining these levels. A good and decent trading system should provide you with these tools.

STEP4: Know and respect using stop loss.
Once you have entered a trade, your first aim should be to protect your account. To do these you need to place stop loss order. Please ignore any trading system that encourages you to trade without stop loss order. A decent system should guide you on the best level to place your stop loss with higher probability of winning the trade, you might also choose to use trailing stop to protect your profit. Trailing stop helps to adjust your stop loss order if the trade is moving in your favour.

STEP 5: know your take profit.
As soon as your trading system generates signal, it should be able to give you the profit potentials of the trade. Please note that guess work is not allowed in trading. Guessing can be very dangerous to any trader. You need to run thorough analysis before accepting take any trade with high probability.

Remember you do not need a perfect trading system to be a successful trader. Adhere to these rules and the trade will be in your favour most of the times. Visit www.forexandoil.blogspot.com for free forex trading signals and education. plus how $5100 was turned to $40,000 without lifting a finger

Before venturing into your trading journey there are some things you need to be aware of, otherwise you could succeed on your trading adventure, and

Making money in forex market became no longer difficult as it was few years ago. with the all new trading techniques and high speed internet connections and the appearance of the so many brokers who give the opportunities to every one to participate in the forex trading market regardless his capital volume.

Forex trading signals are the by-product for all technical and fundamental analysis methods and strategies, every forex trader need to get the basic analysis knowledge in order to generate winning forex signals. This requires him or here to learn a lot about technical analysis strategies and create his or here own forex trading system in order to be able to pick the available trading opportunities all the time.

For novice traders starting their first steps in the forex market, automated forex signals are a good training to start with. This should be the starting point of all your dealings as every trade relies on the types of signals it transmits to traders. The use of these signals represents the entire movement and behavior of the forex market.

Fortunately, the chance to make profit in the forex market is still available to many straggling traders, there are many signals providers which can be employed through a monthly subscription and provide a high quality entry signals. Also you can create your own signals using a software program. This does need any monthly fees for you to purchase it given a one time payment term.

How you can benefit from forex signals:
Many novice traders who try some of the forex signals providers and end with losses in their first few trades so they believe that this signal providers is unreliable service and start seeking another alternate service. The secret to success with such business is the consistency, in order to make a fair judgment on any service, you should try it for several weeks. In forex market there are no thing predictable 100%, and there always will be a percent of losses. So in order to succeed with such systems you should create your own money management rules to work along with the trading signals and make your calculations at the end of the testing period to check whether you made total profits or total losses.

Regardless how good the generated forex signals are, you should never depend on only one service to decide when and how you trade. You should look at several exit and entry strategies along with developing your own system for trading. Putting all of these together in a harmony can produce a profitable forex trading system which can make you a lot of money on the long term.

Deadly Forex Mistakes That Assure Failu

Before venturing into your trading journey there are some things you need to be aware of, otherwise you could succeed on your trading adventure, and we don't want that to happen, do we? This Forex training guide will help you track the most costly mistakes Forex traders do.

First of all, make sure you don't have a trading system. Having a trading system might increase the odds of your success. If you have a system, you will have an objective way to get in and out the market. When traders create their trading systems they think objectively since there is no position to be taken at the moment. If there is no position to be taken, there is also no money at risk, if there is no money at risk, we do think objectively and are open to every possibility, thus we are able to find low risk trading opportunities. So make sure you don't have a system and trade based on a randomly approach.

If you have already created your system, then don't follow it, be undisciplined. If you follow your system, there is a possibility that you can profit from the Forex market based on the trading opportunities you have found. If you want to fail on your trading, be sure to be undisciplined.
Don't get educated. Most successful traders are very well educated in the market they trade (stocks, Forex, futures, etc.) If you get educated, you might acquire the knowledge and experience you require to master the Forex market. Don't read about the Forex market, don't enroll into Forex training programs and don't even look at historical charts.

Don't use any money management technique. The purpose of money management is to avoid the risk of ruin, but at the same time it helps you boost your profits, allowing them to grow geometrically. For instance, by using no money management techniques, there is a possibility that in loosing 10 trades in a row you could empty your trading account. On the other hand, by applying simple money management techniques you can avoid it. So make sure, if you want to fail, don't even consider money management.

Forget about psychological issues. You need to get every trade to win. Successful traders know that they don't need to win every trade in order to profit from the market. This is one characteristic that is hard to understand and really apply. Why? Because we are taught, since kids, that any number below 70% is a bad number. In the Forex trading environment, this is not true.

Don't even consider using a Risk-reward (RR) ratio greater than 1-1. If you use a RR ratio of 1-2 (willing to make twice the amount risked in one trade) then you only need a system that is right around 50% to make money. If you use a RR ratio of 1-3 (willing to make three times the amount risked in one trade) then you will need a system that is right around 40% of the time to make money. So make sure to use a RR ratio below 1-1.

By applying every point outlined in this Forex training guide, you will almost assure your failure in your Forex trading journey. Do the opposite, and you will have the possibility to achieve what every trader is looking for: consistent profitable results.

13 SECRETS THAT GENERATED 992 PIPS NET PROFIT IN 15 FOREX TRADING DAYS

There is no hype in this headline. This is the absolute truth. The following 13 secrets generated 992 pips net profits for me in 15 trading days.

1 do not over expose your account .maintain an account exposure of between 10% and 30%.

2 Always trust god to find and join the trend early. Always learn to test the strength of the trend with the ADX.

3 Understand your best entry and exit points using pivot points and/or fibonnacci retracements

4 Understand the key japanese candlesticks Reversal patterns.

5 Know when the market is down or when the trend is weak and trade accordingly or stay away.

6 Only use take profit according to predetermined market potential.

7 Buy in oversold markets: stochastic oscilliator and RSI can be used in determining this

8 sell in overbought market: stochastic oscilliator and RSI can be used in determining this.

9 Never entertain fear even when the market moves against you. If you have a good trading system., it will surely come back in your favour.

10 Do not be greedy: Show contentment in all things and this demon will be far from you.

11 Do not over trade: Learn to draw a line between over trading and fear.

12 Always pray before making a trading decision: There is always a guiding light from god if only you will trust him.

13 Rely on the holy spirit for guidance. He is very dependable and will never leave noy forsake you if you surrender the battle to him.

Why you need to develop your own forex trading system

There are many forex trading systems and trading strategies out there. There are many free ones printed in forex trading articles, journals, books and on trading-related websites. You can buy them as software or you can subscribe to them periodically.

Novice traders say they do not have the time, the aptitude, the talent nor the brains to work out how to trade properly. They would rather purchase a program or subscribe to a forex trading system for hundreds - or in some cases - thousands of dollars. They say they do not have to do anything except be told what to buy, when to buy and how much of it you need to buy. Some ask me if this strategy or approach is advisable for trading the forex markets. To answer this question, I am then forced to consider the advantages and disadvantages of using such an approach to trading.

There are reasons why a trader would use a forex trading system or forex trading strategy that someone else developed and tested:

1. It is easy. A novice trader does not need to study how the forex market works and how he interacts with that market. He does not need to educate himself: he does not need to bother with books and seminars. He does not need to test the trading system, since the seller has already done that for him and reported promising hypothetical or actual results.
   
   
   



2. A novice trader hopes to get a forex trading system at a ’bargain’ price... sometimes even for free.

Hazards of trading a forex system or strategy developed and tested by someone else are the following:

1. 
   
   Faulty Trading Systems
   
   
   
   

   There are many faulty forex systems out there. They may be faulty because their assumptions and their mechanisms may no longer be true, accurate or valid. As a novice trader, how can you distinguish between the good systems and the bad systems if you don’t know how trading systems are built?

   
   



2. 
   
   Discipline and confidence
   
   
   
   

   All systems have drawdown periods. Some good forex trading systems may not make money for six months or an entire year. Even if it was a good system, can you continue to follow it even if it gives you a loss after a loss after a loss? How can you follow it if you do not have confidence in it? How can you be confident if you do not know the ins and outs of the system and if you have not tested it yourself?

I do not believe that people would blindly follow a system even if they were told that it would bring them riches. I can give someone a forex trading system, I can supply him with exceptional hypothetical or actual results and still, he would not be able to follow it.

I remember giving my dad a fully-mechanical forex trading system I developed. I told him a few simple rules and I told him not to question them. All he had to do was to follow them. We both traded it for two months, I grew my small account by roughly 50% (it happened to be a good two months), but he was losing. He wondered why. I asked to see his trading records. When I looked at his trading records, I found that he kept disobeying the rules. When I asked him why he disobeyed them, he wanted to improve the results after it had a couple of losing trades. He was trying to improve the results. According to him, the system asked him to do what he thought was not right during certain market conditions, so he did not follow it.

To overcome the hazards above, I see no way except for a trader to learn how to develop his own trading system. This is the only way a trader can know if a particular trading system or strategy is good or not.

Once a trader learns how to develop forex trading systems and strategies, he can then be better equipped to test them as well. By this point he might even find that he is better off using the system he created, because it becomes increasingly difficult to find another system more suited to his profit objectives while operating within his risk tolerance levels. It is likely that once he develops this level of competence, he will simply acquire other systems only to dissect them, grab the parts he likes and add them to his own system. To me, the irony is that for a trader to know which system to purchase, he must first learn how to create a system. And after knowing how to create a trading system, he will no longer have the need to buy one.

In conclusion then, I would have to say that if you are not inclined to learn how to develop your own trading methodology, then perhaps you should consider giving your money for someone else to invest. Give it to someone who is trading a system that he developed and tested himself because he is more likely to have the confidence and courage to follow his own set of rules.

The FOREX Market- Trade with your head not your heart!

Sounds simple…right? In actuality, this is the number one reason why day traders lose their shirts. They let their emotions get the best of them and end up doing something real stupid. Trust me I’ve done it.

When trading currency, you need to take yourself away from the platform and look at your trades in actual bills not numerical values on a computer screen. For example, let’s say you short the USD/JPY for a 50 mini-lot right before a data release and it tanks. The USD/JPY goes down about 50 some odd pips and now you’re up $2500 in about thirty seconds.

Now, if you were smart, you would close the position and take your profit, but you’re not and you decide to let it ride. The market goes down about another 10 pips. So, now you’re up $3000 and you still won’t close it. You think that it’s going to keep tanking and that you could make 5-6k on this one trade…wishful thinking.

All of sudden the market retraces and shoots back up 20 pips, your still up about $2000, but now you tell yourself, I’ll wait until it goes back down a few pips and then close it. Too late, the market ignites and now you’re break-even and then you’re negative. In the end you take a $500 loser, which isn’t too bad, but considering you were up $3000 it’s like you lost $3500.

Now, let’s pretend you did this same trade with actual, physical dollar bills. Now or days most people trade from a three wide spread, so let’s say that you gave a trade booker $150 cash to place a short USD/JPY 50 lot. The data is released and this man keeps giving you $50 bills and before you know it you have $3000 in your hands. In order to keep this money all you have to say is close.

You decide to press your luck and wait and the market continues to trend down and now you have $3500 cash. All of sudden, the market begins to retrace and this nice young man starts taking $50 from you each pip it retraces. How many pips does the market have to retrace before you say close? Maybe, ten pips? Once you saw actual dollar bills being taken away from you, you would throw in the towel. So, how does one improve their money management skills?

First of all, realize that you are trading real money. I’m sure you realize that the money you are trading is real money, but do you conceptualize it? When you make a few hundred or a few thousand dollars trading, do you feel like someone just handed you cash? Of course not! Every time you’re trading, no matter if you are profitable or not profitable visualize and grasp the outcome. Don’t just watch your balance and equity fluctuate; you need to relate your loss and gains to every day life.

For example, let’s say you have a 10k account and in the first week you doubled that to 20k. You need to step back and understand what you just accomplished; you just made 10k in one week by sitting in front of your computer and trading currency. Now, let’s take that money and put it to everyday use. If you were handed a free 10k, what would you do with the money?

Would you pay of some debt, by a car, put money down on a home, go on a vacation, put it towards school, I think you get the gist. All I’m saying is that 10k is yours, you own it and there is no reason you have to keep in the FOREX. You are that 10% that succeeded this week, but the law of averages states that you are most likely to be the 90% next week. If not next week then the week after and if not then, eventually you will.

If you invest 10k and your account doubles to 20k, why would you pull out 15k leave in 5k and go for the gusto? If you lose your remaining 5k who cares you still made 5k in a week at your computer. Tell me another investment where I can make 50% on a 10k investment in one week. Turn around the following week pull my initial investment and my profit and still have 5k to play with. If I hadn’t experienced this first hand then I would have never believed it. DO NOT GIVE YOUR WINNINGS BACK TO THE MARKET! It’s not worth it.

Why do Forex Trading?

So.. you want to make lots of money in forex trading? Well, before you get your feet wet....let me refresh your mind why forex trading is such a hot money maker...

The cash/spot FOREX markets have certain unique attributes that offer an unmatched potential for profitable trading in any market condition or any stage of the business cycle. It leaves one to wonder why bother in the first place?

Forex trading offers people who trade:

A 24-hour market: A forex trader has the chance to take advantage of all of the profitable market conditions at any time; which means that there is no waiting for the start like the New York Stock exchange.

Highest liquidity Possible: The FOREX market is the most liquid market in the world. That means that a trader can enter or exit the market whenever they want during almost any market condition minimal execution barriers or risk and no daily trading limit.

High leverage ratio: It has a leverage ratio of up to 400 is normal when compared to a leverage ratio of 2 in the equity markets. Of course, this makes trading in the cash/spot forex market awkward a swell because it makes the risk of the down side loss much higher in the same way that it makes the profit potential on the upside much prettier.

Low cost per transaction: The retail transaction cost is actually less than 0.1% under the normal market conditions. At larger dealers, the spread could be less than 5 pips, and may expand a great deal in fast moving markets.

Always a good market: A trade in the FOREX market means selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies.

Inter-bank market: The foundation of the FOREX market consists of a global network of dealers that communicate and trade with their clients through electronic networks and telephones. There are no organized exchanges like in futures that are there to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets.

No one can corner the market: The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time.

It is not completely Unregulated: The FOREX market is seen as an unregulated market although the operations of major dealers like commercial banks in money centers are regulated under the banking laws.

For the average person who is willing to get into forex trading, this market is just a better bet. With it being so wide open like it is, you have a higher gross potential than with any other trade type.

Foreign exchange market

The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies.

The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.

In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixedas per the Bretton Woods system.

The foreign exchange market is unique because of

• its trading volumes,
• the extreme liquidity of the market,
• its geographical dispersion,
• its long trading hours: 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday),
• the variety of factors that affect exchange rates.
• the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
• the use of leverage

As such, it has been referred to as the market closest to the ideal perfect competition, notwithstandingmarket manipulation by central banks. According to the Bank for International Settlements,^[2] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this. This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:

• $1.005 trillion in spot transactions
• $362 billion in outright forwards
• $1.714 trillion in foreign exchange swaps
• $129 billion estimated gaps in reporting