Wednesday, November 18, 2009
What's the difference between successful businesses and struggling businesses?
Have you ever noticed how some businesses seem to do extremely well, and go from strength to strength, whilst the majority just seem to muddle along?Since starting my own business I've met many small business owners and what I've noticed is that the vast majority of them seem to just about get by, but few reach the level of success that they're actually capable of. Some of them end up failing altogether, some lurch from project to project, and some do OK, but never really achieve the success or lifestyle they envisioned when they started their business.On the other hand, I know a handful of extremely successful service business owners, who are making high 6 and 7 figure incomes every year (and rising) - and yet they don't work longer hours, their products and services are not magnitudes better than their competitors and they aren't geniuses!So what is the difference between the successful businesses and the struggling businesses?In a word: MarketingWhilst there can be other factors that affect the ability of a business or practice to be successful, such as the economy, trends, cashflow and product/service quality or innovation, the number one difference between successful high-flying businesses and their struggling counterparts is good marketing.Here is the lament of one survey respondent which is typical of the angst felt by service business owners who know they do a good job, but who don't understand why they don't have a queue of clients at their door:"We know our products and services are good - we get great feedback from those clients we've worked with - but we still have trouble getting potential customers to buy in. Our services offer real benefits to clients but we are not as successful as we should be when we see what other companies offer (not as much) and yet are still very successful."If you offer a quality service or product that produces great results for your customers or clients, and yet you're still struggling to get all the clients that you want or need, or to charge the fees you deserve, you probably have a marketing problem.What do highly successful business owners do that others do not?The first thing that they do is to realise that their primary objective is to build their practice or client base. In the words of Michael Gerber (who wrote The E-myth) they "work ON their businesses, not IN their businesses". What this involves is making the time to work on the business - in particular on marketing and product or service development, rather than spending all of their time handling clients, delivering services and dealing with administration.They also look for areas where they can gain "leverage". Simply put, this means gaining maximum return for every hour they work. Instead of trading hours for pounds or dollars, they find ways to do the work once and get paid for it many times. They find ways to market their services one to many, instead of one to one (thus reducing marketing and sales effort and time). They delegate those activities which take up a lot of time (but which don't add much value in terms of moving the business forward) or which they are not skilled in such as admin, accounting, website maintenance and copywriting.They also develop a success mindset, understand their strengths and weaknesses, take risks, innovate, hang out with other successful people and build a support network around themselves.But above all, they learn how to market their businesses and create a marketing system that keeps a steady stream of prospects knocking at the door, without taking up all of their time!
What’s the Difference of Trading Mini Lots Vs. Full-sized Lots in Forex.
In Forex trading there is something called, a Mini Account, and it uses a different leverage calculation than a regular (100k) account. This is, instead of trading full-size currency lots (100,000 units), you'll trade in lots that are just 1/10 the size (10,000 currency units), which in turn greatly reduces your risk. Pips in a Mini Account are worth, on average, $1 instead of the $8 to $10 value they have in a regular account. The Mini Forex account offers up to 200:1 leverage, this means that just a $50 margin deposit will allow you to trade lots worth roughly $10,000 , but the smaller lot sizes, with correspondingly smaller pip values, means that you'll be assuming less total risk. For example, while a 20-pip loss on a 100,000 USD/JPY position would be $200, the same loss on a 10,000 USD/JPY position in a Mini account would amount to $20. Here you have an overview of leverage (Margin, Account Size) on each of the two accounts discussed above: 100K (Regular Full-sized Account) - Minimum required account deposit = $2,000 - Recommended required account deposit = $5,000 to $10,000 - Traded in 100,000-unit currency lots - Default Margin: set at 1% ($1,000 per lot) - Leverage = 100:1 or 50:1 (if margin is set at 2%) Mini Account - Minimum required account deposit = $300 - Recommended required account deposit = $2,000 - Traded in 10,000-unit currency lots - Default Margin: set at 0.5% ($50 per mini-lot) - Leverage = 200:1 There is no downside to trading a mini account , you will be still enjoying all the benefits that full-size FX account holders enjoy; including, same state-of-the art trading software, charts, resources, and tools, etc. This mini accounts are ideal for a new Forex trader to develop a disciplined, rational forex trading strategy without excessively focusing on profits and losses. Also there is no maximum trade volume when you use a mini account. Although the standard trade size is 10,000 units, you are not limited to trading one lot. For instance, you can trade 10,000 units, 50,000 units or 200,000 units. This means as you become more seasoned and build up confidence you can slowly increase the size of your positions to maximize profits. In fact the trade size of 10,000 units allows for more flexibility in terms of customizing the size of your trade. The ability to customize the size of the trade allows you to have a better risk management. With less capital at risk in a Mini FX account, it is easier for you to develop a disciplined trading methodology, as well as the confidence needed to be a successful currency trader, without the anxiety and distractions that come with large Profit and Lose swings.
Which Type of Ebayer Are You?
I think that describes most of us to an extent. You see, I um-and-ah... and generally delay on making decisions. Right now, for example, I'm umming-and-ahhing about finalising my grocery list. And I really need to get out and tidy the back yard…. But I find myself procrastinating once again. There's always an excuse. Now, I have to admit: this 'procrastination problem' is nowhere near as bad as it used to be, but it's still not right. You see, I've learnt that the less I procrastinate, the more gets done, and the better I do. What does this have to do with eBay? I'm getting there. Let me hazard a guess: if you're reading this, I'm betting you've procrastinated on one, two or more of the ideas... and that's bad. Very bad! Because even if you'd tried something, that 'something' would have given you some feedback - even if it was only 'failure' feedback, which can be very useful in itself. But before you decide to do anything on eBay - even before you decide to procrastinate - you need to make a decision, if that... er... makes sense. A decision on which, I hope you won't procrastinate! And that which you need to decide is simple: what kind of business you're going to go into. Or, more specifically (to start with), what type of model you'll follow. See, there are only really two main models of business that you can go into on eBay. The first is where you're selling the same product(s) over and over... and over. .. again. The second relates to buying one-shot items... rare stuff and the like... one-off items that you buy, the onesy-twosy approach. You then resell each individual item in turn for (hopefully) big profits. You just have to make up your mind which 'model' you're &oing to opt for. There's pros and cons to each. As always.Let's consider, first of all; the onesy-twosy approach. We'll call this 'Model 1'. Model 1: The 'Ones And Twos' Approach This is a perfect part-time approach towards eBay success. You can do it when you want. You can create customers that stay with your forever... apd who will LOVE you. You can virtually see the smiles on your customers' faces as the latest offers arrive. And you'll get great returns (often) on each item that you auction off. Ten times your money is far from uncommon. Even 20... or even 100 (or more). These are all perfectly attainable returns for your auctions. Not much money invested = great return gotten out. But there's a downside, too. Your income is more variable and, quite frankly, it's a much more time dependent business model. You'll have to know the market, and as such you'll be the one hunting for 'product' every week. Not that there's anything really wrong with that, especially if you really like what you're trading in. There's a corollary to all this too... And that's this: your earnings will probably be capped. Because of the time-dependency factor. And the fact that YOU will virtually 'be the business' so you'll never build a really big business. Probably not, anyway. So what's the other approach? Model 2: The “Sell The Same Items Over And Over Again”Approach This method involves buying a stock of the same item and floggings said item(s) over and over again. Again, there are pros and cons. The pros? Well, you can build bigger. Once you've got the source of supply, there's not much work thereafter. You just list, then relist. And then go and sunbathe, particularly at this time of the year. What's more you can build BIGGER, because the business can be less dependent on you. Sounds great, huh? Actually, it is. So what are the downsides? Firstly, there'll be much more price-based competition. It can be quite cutthroat. If there's a big market for what you're selling - and there probably will be if you're going into that market - then there will probably be people already there who will be competing against you. Unless, of course, you've got a truly unique product that no one else has. Secondly, there'll be lower returns available. Let me explain what I mean. Let's say that you've got a selection of items for resale with 'Model 1'. This means that you might have bought these 'onesy-twosy' items for £40 each. And you might sell them for £120 each, or one for £300, some for £80, and so on. But the point is that you'll be getting an outstanding return on your money. Well, with the 'other' approach...well, it's a lot less likely that you'll get a big return on your stock investment. You might make 20% on your stock. Invest £500, get back £600... BUT you'll sell more product, and more often. And you can build very big (in eBay terms). So Which Approach Is For You? Depends on you, what your free-time situation is like, what you want to achieve from your eBaying, and so on. So you need to know where you're coming from, and where you want to go. If you're short on time, wanting to make money fast, and just want a part-time eBay business, then it's probably best to start with Model 1 (the one-off approach). If you've already gotten some eBay experience under your belt, have more time and are up for the challenge that lies ahead, go for Model 2. Of course, feel free to disagree too! Here's something else to think about... Let's say that you start with Model 1. You go along nicely, making some profits. You're still part-time. You can then use that basis to work from, and launch other eBay businesses as you go along. Make sense? You start part-time, build up your knowledge and capital base, and then work from there. Or how about running two of these side by side? It's totally doable, believe me. But that again will depend on YOU, and it certainly wouldn't be recommended if you were just starting out. And, of course, you'd reed the time to do this. There'd certainly be quite a bit of work involved. It wouldn't be for everyone. But that would be something, wouldn't it? That way, you'd be spreading your risk - diversifying if you like because you'd have two separate streams of income. You'd build up two individual supply sources, customers, e-mail lists and so on, and you'd be lowering your risk should the worst happen in one of your 'mini businesses' . Ideally, you'd also trade under separate ID's for the two trading approaches. It might seem a bit strange to your bidders if you're telling them to 'Check your other items!' when they're looking at your stereo equipment. They check your other items and find a bunch of old dolls that you're auctioning in your 'Model l' business! Not a very good idea. So you'd (ideally) want two separate ID's. But I think I'm getting ahead of myself here. Because, coming back to what I was saying at the start... None Of This Can Happen if you continue to procrastinate! So what are you waiting for? You at least need to think about which approach is right for you, in line with your current circumstances, and how maybe you want to see them change too. Just don't procrastinate too long on the path you want to follow.
Wholesale Buyers Versus Retail Customers
Are wholesale buyers and retail customers really different? Frankly, there are two answers to this question: yes and no. Yes, because they are different from the buyers and those selling to buyers' point of view and no, because the principles that apply are the same for both types of buying. There is only one real difference, aside that one buys at wholesale prices and the other at retail prices, and that is that wholesale buyers are looking for a selection of items to fill a space or their customers' needs, while retail buyers are looking for one item to fill a space or need. When there isn't any space that needs filling either now or in the future, the customer won't be interested in what you have for sale, which means zero sales. Both wholesale and retail buyers are looking for things that can be either complementary or in contrast to what the are doing or they already have. It is rather a combination of the two (contrast/complementary or complementary/contrast) than a case of complementary or contrast. Contrast/complementary means it's different to what they are doing or they have, but will fit in with other things, while complementary/contrast means it's like what they are doing or already have and yet it's different. If there is a high contrast and it doesn't fit in or if it's exactly what they have, they most likely won't buy. There are two things you will have to do to determine if buyers are in a contrast/complementary or complementary/contrast buying situations. First of all, listen to what customers say and think about these two things: why they are asking the question that way and where they got the idea that generated the question. This is called "listening between the lines". Often, through their questions, customers will tell you what they are looking for. In case they don't, ask them yourself. It helps you by showing interest in what they are doing and their answers will help you make your presentation. Plus, since you know that they are looking for something to fill a need or hole, it becomes much easier to relate to customers' needs. The second way to detect their situation is to have customers talk about their favorite subject themselves. Encourage wholesale customers to talk about their shop/gallery, what they have been doing lately, etc. As for the retail customers, get them to talk about the other craft works they currently own and enjoy. Often they will talk about the things that they feel very good about. Sometimes they will talk about the things that they don't feel very good about, but they will do it as a way of saying they won't repeat that mistake. Sales will be made when customers understand how the merchandise you are selling fits into what they are doing, planning to do, or would like to do, so apply the contrast/complementary - complementary/contrast theory to what they are contemplating buying.
Work from home with e-currency
Are you one of the many people who have spent countless hours searching for unique ways to make money on the internet or trying to make money working at home? Very few people have succeeded at doing so, and most have failed miserably time and time again. So how are some people succeeding then working online or working from home? The answer is simple; they are finding at business that works with what they already know. The majorities of people today trying to get into the home-based business industry are not salesmen and have never tried to work online before. People fiddle around looking in all the wrong places wasting all there money on advertising for there home business that isn’t working and E-books that promise wealth and riches. E-currency exchange program allows users to build a financial portfolio through a system of thousands of people exchanging funds from dollars to electronic currency. There are two sides to the e-currency exchange trading system, the portfolio side and the console side. Users can create a portfolio that will gain 1.5% to 4.0% per day on the amount of money in the portfolio. The money in your portfolio is compounded daily and grows continuously over time. It is not uncommon for people who initially invest $100 to grow their portfolio value to $1000 in 1 month. Once you have been in the e-currency exchange program for a total of 90 days and your portfolio has grown to a value of $5000, you are then able to apply for a console which helps your portfolio grow even at a faster rate. With a console you can now process requests from people that wish to take their money from e-currency and convert it back to the dollar or from the dollar back to e-currency. When you become a console you receive a percentage of the total amount exchanged as profit. Most people then will take that profit and reinvest back into their portfolio helping it grow faster. The only down-side is learning how to navigate through the e-currency exchange program is extremely difficult without assistance. There are plenty of resources available if one just takes the time to look for them
Yes, You Can Start Trading Forex For Free!
Yes, it’s true, you can trade the forex markets for free and using the same state-of-the-art software packages that professional Forex traders, around the world, are currently using to make real-time, live currency trades. And you can also experience the same dynamic market action and go through the same process of making decisions based on breaking news, reacting to charting patterns, and tracking ones performance the same way professional Forex traders do. And all this can be done even if you don't put any real money into your account, you won’t see any difference in how the market behaves and how you react to the market. In short, at some point, every new forex trader needs to start Demo-trading. Once you start placing demo trades, you will learn a lot about how Forex transactions are placed. I can’t emphasize you enough, that this is a very important step for you in order to be able to learn how to become a trader. A demo account allows one to become familiar with trading procedures, such as placing Market, Limit, Stop, OCO Orders without any risk. All dollar losses or gains on a demo account are imaginary but, as mentioned above, the trading experience you acquire is not. You should notice that making big gains in a demo-account does not guarantee profits in live trading; however, those who are not successful trading on paper rarely are successful when money is on the line. So, yes, just playing around and getting familiar with a demo account can be a great learning experience; however, you will not learn how to become a trader this way. You need to have a trading strategy. Once you sign up for a mini-demo account, you will need to try one of the trial charting packages from the broker you choose. Any demo software you choose will do because they all have the necessary indicator tools you need. Once you have downloaded the software you can then set up your demo account and start drawing trendlines, marking support & resistance levels, monitoring moving averages, etc. This is also a very good way to get used to how orders are placed. Once you have a real trading system, you will already know how to place orders properly. And remember, everyone makes mistakes placing orders. So you need to experiment before in a demo account so you can make your mistakes without losing any real money
Your Competitors Offer Leasing Finance, you should ask yourself WHY?
The simple answer to this question is that they are offering finance to their customers as a sales, marketing & deal closing tool. It cements their relationships with their customers because leasing finance can usually be offered the same day. The customer is then more likely to return in the future because of the financing is arranged with minimum hassles and no time consuming trips to the bank manager. This type of financing arrangement is known as a “Vendor Program” Can I Offer Finance to my Customers? Again, the answer to this question is yes. You can benefit from establishing a relationship / partnership with an appropriate lender and start taking advantage of the sales & marketing opportunities and shortened sales cycle. Your Company, Sales Team and Customers all benefit from a Vendor Program arrangement that can be set up with minimal training and effort on your part. So now, let us take a look at the benefits in a few more details Sales Benefits Finance adds value to your product, by including finance as part of your whole package you make it easier for your customer to buy therefore your sales team will find it easier to close more deals. Deal closing opportunities present themselves via price flexibility, you could discount products & claw back via finance or sell at full price but offer low cost finance. If you have customers who arrange their own finance then you already have the demand for the service, which means that some customers who require finance are probably going elsewhere! Fast finance decisions means that customers are less prone to changes of mind or finding a better deal elsewhere. If you allow others to offer finance facilities you will not be in control of the interest rate & sales could be lost / delayed. Finally, additional Leads can be gained by innovative pricing schemes. Customer Benefits You offer, a single point of contact for customers requiring finance for equipment. Quick finance decisions means quick delivery of equipment. Leasing allows customers to upgrade and replace equipment easily with just a simple adjustment in rentals. A near guaranteed acceptance of all finance proposals, start up companies are the more difficult proposals but can be done. Finally there are the tax benefits of leasing, payments are 100% tax deductible, cash and existing credit lines are preserved. Company Benefits If you offer finance it presents a barrier to competitors, if it's easy for your customer to keep trading in and trading up with you, your competitors do not get a look-in and as used equipment comes back to the vendor, the second-hand market can be controlled. Vendor maintenance can be made a condition of the leasing, increasing the vendor's profits from maintenance activity. Your company can earn commission on finance deals all for filling in a simple finance proposal form. You can choose whether to earn a commission on any deal because you set the interest rate and best of all any commission earned is 100% profit. Just think what could you do with the commission on finance sales, it could allow you to employ extra salesmen with the profits and generate even higher profits!
Thursday, November 12, 2009
Boost Your Income With Financial Spread Betting
About 6 years ago I started to notice that certain friends of mine had quit their jobs but continued to live very luxurious lifestyles - seemingly without doing very much. I thought they must just be using up their savings until I discovered they were all making a fantastic living by spending just a few hours a week doing something I had never heard of before - �financial spread betting�
More and more people are now becoming familiar with the phrase �financial spread betting�. Once, the sole preserve of City Whiz kids or sophisticated gamblers, financial spread betting is now gaining in popularity as a great way to earn a very sizeable tax-free income without the risk of losing the shirt off your back!
So why is financial spread betting becoming so popular. Well, with a bit of understanding and practice, ordinary people, with no prior experience, can earn enormous sums whilst controlling their risks and limiting their losses. You do not even need a stockbroker or a city dealing account to do get involved. An on-line account is very simple to open and anyone with web access can do it.
Spread betting, aka futures trading, is easy to understand if you stick to a simple index like the FTSE 100 or the DOW JONES.
In basic terms, this is how it works:
When you buy a �future� you take a position on what you think the index (e.g. the FTSE 100, or the DOW ) will be at some future date - e.g. June 2005. Let�s say the FTSE is currently at 5200 and you think it will rise over the next three months as �terrorist fever� abates. You would buy the June FTSE at (say) �10 per point. For every point it rises, you make �10. If it goes up 100 points, you make �1000. Of course, if you get it wrong and the index falls by fifty points (say), you lose �500.00.
You need of course to be very aware of the risks before you get involved. As with any investment or business, you can lose money. If, by nature, you are a timid, cautious person, then it is definitely not for you. But if you have some money to play with, and aren�t risk adverse, then financial spread betting is the one of the best possible ways you can make a great deal of money completely tax free� and there are clever ways of limiting your losses so you never lose more than you can afford.
Unlike most businesses, it is possible to get involved with an absolute minimal outlay and take a position without buying a single thing. You do have to �back� your position with a certain amount of cash, but this is �insurance� money, NOT stake money.
The best thing is you can try it for free without any risk at all. You can �dry trade� with �monopoly� money until you get a feel for how it works and are confident enough to start using real money.
Financial spread betting has become so popular primarily because of the relationship between risk and capital. It is highly leveraged and you can make huge profits with only a limited amount of capital and risk. The fact that there is (unlike with most investments) no stamp duty or tax also helps make it extremely attractive.
So if you are of the right temperament, spread betting can be a very lucrative way of making an amazing income in your spare time. But be warned, if used recklessly or without the correct knowledge it can result in large losses.
More and more people are now becoming familiar with the phrase �financial spread betting�. Once, the sole preserve of City Whiz kids or sophisticated gamblers, financial spread betting is now gaining in popularity as a great way to earn a very sizeable tax-free income without the risk of losing the shirt off your back!
So why is financial spread betting becoming so popular. Well, with a bit of understanding and practice, ordinary people, with no prior experience, can earn enormous sums whilst controlling their risks and limiting their losses. You do not even need a stockbroker or a city dealing account to do get involved. An on-line account is very simple to open and anyone with web access can do it.
Spread betting, aka futures trading, is easy to understand if you stick to a simple index like the FTSE 100 or the DOW JONES.
In basic terms, this is how it works:
When you buy a �future� you take a position on what you think the index (e.g. the FTSE 100, or the DOW ) will be at some future date - e.g. June 2005. Let�s say the FTSE is currently at 5200 and you think it will rise over the next three months as �terrorist fever� abates. You would buy the June FTSE at (say) �10 per point. For every point it rises, you make �10. If it goes up 100 points, you make �1000. Of course, if you get it wrong and the index falls by fifty points (say), you lose �500.00.
You need of course to be very aware of the risks before you get involved. As with any investment or business, you can lose money. If, by nature, you are a timid, cautious person, then it is definitely not for you. But if you have some money to play with, and aren�t risk adverse, then financial spread betting is the one of the best possible ways you can make a great deal of money completely tax free� and there are clever ways of limiting your losses so you never lose more than you can afford.
Unlike most businesses, it is possible to get involved with an absolute minimal outlay and take a position without buying a single thing. You do have to �back� your position with a certain amount of cash, but this is �insurance� money, NOT stake money.
The best thing is you can try it for free without any risk at all. You can �dry trade� with �monopoly� money until you get a feel for how it works and are confident enough to start using real money.
Financial spread betting has become so popular primarily because of the relationship between risk and capital. It is highly leveraged and you can make huge profits with only a limited amount of capital and risk. The fact that there is (unlike with most investments) no stamp duty or tax also helps make it extremely attractive.
So if you are of the right temperament, spread betting can be a very lucrative way of making an amazing income in your spare time. But be warned, if used recklessly or without the correct knowledge it can result in large losses.
Bollinger Bands
Contracting bands warn that the market is about to trend: the bands first converge into a narrow neck, followed by a sharp price movement. The first breakout is often a false move, preceding a strong trend in the opposite direction.
A move that starts at one band normally carries through to the other, in a ranging market.
A move outside the band indicates that the trend is strong and likely to continue - unless price quickly reverses.
A trend that hugs one band signals that the trend is strong and likely to continue. Wait for divergence (when the price is flat or rising or falling, but the MACD is going in the opposite direction...the price will break out in the direction of the MACD) or a Momentum Indicator to signal the end of a trend.
I use the BB's for indication of when a breakout or breakdown is imminent. When the outside bands get very narrow, it means the price is consolidating and is getting ready for a breakout, either up or down.
At this point, it's dangerous to have a position because you don't know if it's going to break up or down. When the bands get very narrow, it's almost better to close out your old positions, even at a loss, until you see a clear direction. If you don't want to close out an old position at a loss, at least hedge it. See more about hedging later in the Advanced Day Trade Forex course.
The BB's can't tell you which direction the breakout will be, the Chaos Oscillator (MACD) and Momentum will do that, and I always trade in the direction the Momentum and Chaos (MACD) are going.
Sometimes when using the slower timeframes, I use the outer BB's as targets for my limit sell price. If the bands are really wide after a big move, I use the middle band as my limit target price.
Bollinger Bands are designed to capture the majority of price movement. When prices move beyond the upper or lower band, they are considered high (overbought) or low (oversold) on a relative basis.
More On Using Bollinger Bands:
First, the BB's can be used as I mentioned before, as price targets. If the bands are narrow, the price will be jumping up & down within the two outer bands. As mentioned before, this is not the best time to be putting on a trade,
as the trading range is too narrow, unless you can make a decent quick profit in a 1 or 5 minute chart.
If the range isn't too narrow, you can ride it up and down and book pips. I only attempt this in a 1 or 5 minute timeframe using the 5/9/18/50 EMA's. Don't do it if you can't make at least 5-10 pips up and down. The danger is in whipsaws.
Most of the time, unless the bands are too narrow, you can make trades by literally bouncing off the outer bands.
This is called "The Bollinger Bounce".
When placing a trade, just set your stop at the outer BB and your price target limit sell order where the other outer band is.
If your trade rapidly approaches the limit price and all your indicators say that the price movement is just getting started & not likely to quickly reverse on you, then you should first either remove your limit price & let the price run, or, raise your limit price another 5-10 pips. Then raise your stop to either your entry point or past it, to lock in either breakeven or some profit in case the price suddenly reverses on you.
This is definitely what you should do in a price breakout. If the price keeps going up in an extended breakout, you just keep adjusting your stop upwards to lock in more profit (this is called a trailing stop, more later on this subject) and keep raising your limit also.
A Super Advanced method of using BB's is to use two sets of BB's, both with the middle band set at 18. Set one BB to a standard deviation of 3 and leave the other standard deviation at 1. This gives you 6 short term support/resistance lines to work with. Your initial stop and target are the outer bands, and your inner bands are used for your trailing stop and short term resistance and
support. You can also trade off the two inner bands
A move that starts at one band normally carries through to the other, in a ranging market.
A move outside the band indicates that the trend is strong and likely to continue - unless price quickly reverses.
A trend that hugs one band signals that the trend is strong and likely to continue. Wait for divergence (when the price is flat or rising or falling, but the MACD is going in the opposite direction...the price will break out in the direction of the MACD) or a Momentum Indicator to signal the end of a trend.
I use the BB's for indication of when a breakout or breakdown is imminent. When the outside bands get very narrow, it means the price is consolidating and is getting ready for a breakout, either up or down.
At this point, it's dangerous to have a position because you don't know if it's going to break up or down. When the bands get very narrow, it's almost better to close out your old positions, even at a loss, until you see a clear direction. If you don't want to close out an old position at a loss, at least hedge it. See more about hedging later in the Advanced Day Trade Forex course.
The BB's can't tell you which direction the breakout will be, the Chaos Oscillator (MACD) and Momentum will do that, and I always trade in the direction the Momentum and Chaos (MACD) are going.
Sometimes when using the slower timeframes, I use the outer BB's as targets for my limit sell price. If the bands are really wide after a big move, I use the middle band as my limit target price.
Bollinger Bands are designed to capture the majority of price movement. When prices move beyond the upper or lower band, they are considered high (overbought) or low (oversold) on a relative basis.
More On Using Bollinger Bands:
First, the BB's can be used as I mentioned before, as price targets. If the bands are narrow, the price will be jumping up & down within the two outer bands. As mentioned before, this is not the best time to be putting on a trade,
as the trading range is too narrow, unless you can make a decent quick profit in a 1 or 5 minute chart.
If the range isn't too narrow, you can ride it up and down and book pips. I only attempt this in a 1 or 5 minute timeframe using the 5/9/18/50 EMA's. Don't do it if you can't make at least 5-10 pips up and down. The danger is in whipsaws.
Most of the time, unless the bands are too narrow, you can make trades by literally bouncing off the outer bands.
This is called "The Bollinger Bounce".
When placing a trade, just set your stop at the outer BB and your price target limit sell order where the other outer band is.
If your trade rapidly approaches the limit price and all your indicators say that the price movement is just getting started & not likely to quickly reverse on you, then you should first either remove your limit price & let the price run, or, raise your limit price another 5-10 pips. Then raise your stop to either your entry point or past it, to lock in either breakeven or some profit in case the price suddenly reverses on you.
This is definitely what you should do in a price breakout. If the price keeps going up in an extended breakout, you just keep adjusting your stop upwards to lock in more profit (this is called a trailing stop, more later on this subject) and keep raising your limit also.
A Super Advanced method of using BB's is to use two sets of BB's, both with the middle band set at 18. Set one BB to a standard deviation of 3 and leave the other standard deviation at 1. This gives you 6 short term support/resistance lines to work with. Your initial stop and target are the outer bands, and your inner bands are used for your trailing stop and short term resistance and
support. You can also trade off the two inner bands
Best Stock Market Simulation Games
A stock market simulation game is a great way to practice your investment skills before actually investing any "real" money in the stock market.
Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision.
Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge. One does not need have prior knowledge about the stock market to join.
This is how stock market simulation games usually work:
First, players must register. After registration, players are given an initial sum of "virtual" money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data.
The objective of most stock market simulation games is simple:
To increase the value of your portfolio of stocks so that it is greater than that of the other game players.
Below are some tips on choosing a stock market simulation game:
• Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide.
• Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world's major markets.
• Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies.
• Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have.
• Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience.
Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision.
Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge. One does not need have prior knowledge about the stock market to join.
This is how stock market simulation games usually work:
First, players must register. After registration, players are given an initial sum of "virtual" money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data.
The objective of most stock market simulation games is simple:
To increase the value of your portfolio of stocks so that it is greater than that of the other game players.
Below are some tips on choosing a stock market simulation game:
• Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide.
• Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world's major markets.
• Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies.
• Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have.
• Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience.
Are You One of the New Disposable Workers?
At the beginning of the 1900’s the industrial revolution was the new engine of the american economy and workers were a disposable commodity. The typical worker lined up at the factory door each morning before dawn hoping to hired on the for the day. Only a few skilled workers (tool and die makers and machine set-up specialists) were “full-time”, and there were no regular raises, holidays, vacations, or benefits. Corporations and “trusts” called the shots and workers took what they could get.
Part of our barbaric “Robber Baron” past you say? Think again. Fast forward 100 years and the working world is beginning to look very much the same. Approximately 25% of our workforce is comprised of temporary workers and that number is projected to grow to 40% by the year 2010! The largest employer in the U.S. is Manpower Inc., a huge “temp” agency trading the latest commodity...your labor. The difference between now and 100 years ago is that its not just the labor of muscle and sweat, it is the labor of skill and specialized knowledge, and includes attorneys, accountants, college professors, scientists, software engineers, and business executives. This growing army of “contingent workers” typically works for 8 to 40% less than their “full-time” counterparts, without benefits, and on an as-needed “just-in-time” basis.
Is this new employment model an evil plot by corporate america to suppress the american worker? Not really. Corporations just do what they are structured to do. They minimize costs (including labor) and maximize profits for their shareholders within the boundaries of the market place and the market for labor is now global. During the last 20 years or so the american corporation has quietly evolved and restructured. In large part they have just adapted to a new global and digital economy. It would not be a stretch to say that we are in the middle of a “new economy” revolution every bit as disruptive as the industrial revolution a hundred years ago and that labor (skilled and professional), especially american labor, is at the short end of the stick.
The old corporate model was rigid and highly structured. It was one of high vertical and horizontal integration, somewhat slow to make and implement decisions, highly controlled, and formally structured. It was also highly unionized with a relatively permanent workforce that enjoyed high wages, pensions, and health insurance (i.e. General Motors and U.S. Steel). This model dominated after WWII when the U.S. dominated the world economy and U.S. corporations faced very little global competition.
However, global competition, free trade, and a digital age required a new model capable of rapid change and maximum flexibility. As corporate america evolved into this new model, american workers experienced “re-engineering”, downsizing, “rightsizing” (after mergers), off-shoring, outsourcing, the death of pensions and the birth of 401K’s, shared healthcare costs, and the rapid rise in population of the just-in-time or “contingent” worker. At the extreme the “new” corporation is “virtual”, with a few key employees and executives at the core and a network partner companies and contingent employees always in flux to meet the demands of a rapidly changing global market.
This new trend of contingent labor has also spread to the public sector and shows no sign of slowing down or stabilizing. Many highly skilled and educated workers have been turned into reluctant “free agents” whose value has been bid down by a global labor market. These workers may think they are entrepreneurs, but they are really just employees without health benefits, no different than the factory worker of a 100 years ago lining up at dawn and hoping to be hired on for the day
Part of our barbaric “Robber Baron” past you say? Think again. Fast forward 100 years and the working world is beginning to look very much the same. Approximately 25% of our workforce is comprised of temporary workers and that number is projected to grow to 40% by the year 2010! The largest employer in the U.S. is Manpower Inc., a huge “temp” agency trading the latest commodity...your labor. The difference between now and 100 years ago is that its not just the labor of muscle and sweat, it is the labor of skill and specialized knowledge, and includes attorneys, accountants, college professors, scientists, software engineers, and business executives. This growing army of “contingent workers” typically works for 8 to 40% less than their “full-time” counterparts, without benefits, and on an as-needed “just-in-time” basis.
Is this new employment model an evil plot by corporate america to suppress the american worker? Not really. Corporations just do what they are structured to do. They minimize costs (including labor) and maximize profits for their shareholders within the boundaries of the market place and the market for labor is now global. During the last 20 years or so the american corporation has quietly evolved and restructured. In large part they have just adapted to a new global and digital economy. It would not be a stretch to say that we are in the middle of a “new economy” revolution every bit as disruptive as the industrial revolution a hundred years ago and that labor (skilled and professional), especially american labor, is at the short end of the stick.
The old corporate model was rigid and highly structured. It was one of high vertical and horizontal integration, somewhat slow to make and implement decisions, highly controlled, and formally structured. It was also highly unionized with a relatively permanent workforce that enjoyed high wages, pensions, and health insurance (i.e. General Motors and U.S. Steel). This model dominated after WWII when the U.S. dominated the world economy and U.S. corporations faced very little global competition.
However, global competition, free trade, and a digital age required a new model capable of rapid change and maximum flexibility. As corporate america evolved into this new model, american workers experienced “re-engineering”, downsizing, “rightsizing” (after mergers), off-shoring, outsourcing, the death of pensions and the birth of 401K’s, shared healthcare costs, and the rapid rise in population of the just-in-time or “contingent” worker. At the extreme the “new” corporation is “virtual”, with a few key employees and executives at the core and a network partner companies and contingent employees always in flux to meet the demands of a rapidly changing global market.
This new trend of contingent labor has also spread to the public sector and shows no sign of slowing down or stabilizing. Many highly skilled and educated workers have been turned into reluctant “free agents” whose value has been bid down by a global labor market. These workers may think they are entrepreneurs, but they are really just employees without health benefits, no different than the factory worker of a 100 years ago lining up at dawn and hoping to be hired on for the day
Alternative Business Client Gifts
(ARA) - It is customary for businesses to give gifts of appreciation to their clients and employees during the holiday season; one that says a lot about a company’s values, makes a real difference in the world and honors clients and employees is a gift to a charity in the customer’s name.
Dan Guzman, a broker in the Dow Jones futures pit at the Chicago Board of Trade, had great success with this concept, last year, when he decided it was time to show the public that traders not only have hearts, they understand others don’t have it so good. He suggested that his co-workers offer their support for the work of Heifer International, a nonprofit organization that provides farm animals to poor families in 48 countries around the world. He was overwhelmed at the generosity of the approximately 30 traders in the Dow pit who gave -- they collected $15,000.
“I call it the Dow challenge,” says Guzman. “The money you raise isn’t the most important thing. What’s important is the awareness you raise.”
Guzman learned of Heifer when reading about poor children spending all their waking hours hunting for food. He imagined his own nine-year-old in that situation and his heart broke. “It felt great presenting the check to Heifer International’s Chicago regional director, Rosemary Larson, on the trading room floor. I knew lives would be forever changed for the better,” says Guzman.
Bob Stiller, CEO of Green Mountain Coffee Roasters, had a similar experience. “I first became aware of Heifer International and the work they are doing to end world hunger when I received their gift catalog. I thought the symbolic gift of animals was a great idea and over the years personally used them to honor my friends and business colleagues. Last year, my office coffee division used the animal gifts for their best customers. The life-affirming gifts were well received by our customers, who told us this gift reflected our company’s core values,” says Stiller.
Heifer International is leading a response to the alternative business-to-business giving trend by creating its first “Most Important Gift Catalog in the World,” for businesses. Heifer makes it easy for businesses to convey their gift by offering special cards and a new book, called “One World, One Family” as fulfillment pieces. The book’s beautiful photos tell a story of lives that are changed through partnerships with Heifer International. To order this catalog, call (800) 696-1918, or go to www.heifer.org/business. To learn more about Heifer, the leader in world hunger solutions, visit www.heifer.org
Dan Guzman, a broker in the Dow Jones futures pit at the Chicago Board of Trade, had great success with this concept, last year, when he decided it was time to show the public that traders not only have hearts, they understand others don’t have it so good. He suggested that his co-workers offer their support for the work of Heifer International, a nonprofit organization that provides farm animals to poor families in 48 countries around the world. He was overwhelmed at the generosity of the approximately 30 traders in the Dow pit who gave -- they collected $15,000.
“I call it the Dow challenge,” says Guzman. “The money you raise isn’t the most important thing. What’s important is the awareness you raise.”
Guzman learned of Heifer when reading about poor children spending all their waking hours hunting for food. He imagined his own nine-year-old in that situation and his heart broke. “It felt great presenting the check to Heifer International’s Chicago regional director, Rosemary Larson, on the trading room floor. I knew lives would be forever changed for the better,” says Guzman.
Bob Stiller, CEO of Green Mountain Coffee Roasters, had a similar experience. “I first became aware of Heifer International and the work they are doing to end world hunger when I received their gift catalog. I thought the symbolic gift of animals was a great idea and over the years personally used them to honor my friends and business colleagues. Last year, my office coffee division used the animal gifts for their best customers. The life-affirming gifts were well received by our customers, who told us this gift reflected our company’s core values,” says Stiller.
Heifer International is leading a response to the alternative business-to-business giving trend by creating its first “Most Important Gift Catalog in the World,” for businesses. Heifer makes it easy for businesses to convey their gift by offering special cards and a new book, called “One World, One Family” as fulfillment pieces. The book’s beautiful photos tell a story of lives that are changed through partnerships with Heifer International. To order this catalog, call (800) 696-1918, or go to www.heifer.org/business. To learn more about Heifer, the leader in world hunger solutions, visit www.heifer.org
All About Stock Market
A stock market simulation game is a great way to practice your investment skills before actually investing any "real" money in the stock market.
Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision.
Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge. One does not need have prior knowledge about the stock market to join.
This is how stock market simulation games usually work:
First, players must register. After registration, players are given an initial sum of "virtual" money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data.
The objective of most stock market simulation games is simple:
To increase the value of your portfolio of stocks so that it is greater than that of the other game players.
Below are some tips on choosing a stock market simulation game:
• Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide.
• Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world's major markets.
• Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies.
• Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have.
• Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience.
Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision.
Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge. One does not need have prior knowledge about the stock market to join.
This is how stock market simulation games usually work:
First, players must register. After registration, players are given an initial sum of "virtual" money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data.
The objective of most stock market simulation games is simple:
To increase the value of your portfolio of stocks so that it is greater than that of the other game players.
Below are some tips on choosing a stock market simulation game:
• Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide.
• Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world's major markets.
• Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies.
• Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have.
• Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience.
A Critical Review of Metastock 8.0: Is Upgrading Worth the Money
If you are like many other traders, you have been eagerly waiting for the release of Metastock 8.0 for one reason, and one reason only, the reportedly redeveloped system tester. Metastock`s one major flaw has always been its lack of back testing capabilities, though previous versions of Metastock are head and shoulders above the competition on other fronts.
But whatever criteria you use to trade with, be it moving averages, candle sticks, fibonacci retracements, or any other trading system, you`re going to need to back test it. Everyone needs to thoroughly back test, or simulate, their trading system in ways that can match the conditions you will be trading in. It`s something all serious traders do.
Consequently, when Equis International (the makers of Metastock 8.0) announced "an all-new type of exploration that emulates running system tests over an entire database of securities", I could hardly wait to get the Metastock 8.0 release.
While waiting to receiving my copy of Metastock 8.0 I began building trading systems. By the time my copy of Metastock 8.0 finally arrived, I had around 20 systems ready for testing, and couldn`t wait to try them out.
However, when I loaded up the software, I was in for a surprise. It looked like nothing had changed. I thought maybe Equis International had kept the same interface and added in greater flexibility and some more features, but after searching in every nook and cranny, I found next to nothing that was new. It looked the same and, except for a couple of small changes, it was the same!
Then I came to the System tester - now called the "Enhanced System Tester". This was my major reason for upgrading from version 7.22. This is what appeared to be only real difference between Metastock 7.22 and Metastock 8.0.
After fiddling around with the Metastock 8.0 Enhanced System Tester for a few hours, and testing my 20 systems, I reached the verdict that I wasted my money on the new version of Metastock 8.0. Despite the supposed improvements to the Enhanced System Tester it, like it`s predecessor, left a lot to be desired.
Even though the Metastock 8.0 Enhanced System Tester tests multiple securities in one batch, it treats each security independently of the others. Therefore, when Metastock 8.0 tests the first security, it uses your predefined float and takes the trade over the test period selected. Once that is completed, it repeats the same process for the second security, using the same initial float, with no reference to the first security.
In the end, you receive the same result that you would have if you simply tested each security individually and added the results together. Not only is this process dreadfully slow, but the entire reason for testing your system is side-stepped. When your finished all the explorations, the performance of your trading system is still unknown!
The moral of the story is that if you already own Metastock 7, don`t worry about upgrading to Metastock 8.0. Simply stick with the version you have and keep your fingers crossed that Equis International gets it right for Metastock 9.0.
But whatever criteria you use to trade with, be it moving averages, candle sticks, fibonacci retracements, or any other trading system, you`re going to need to back test it. Everyone needs to thoroughly back test, or simulate, their trading system in ways that can match the conditions you will be trading in. It`s something all serious traders do.
Consequently, when Equis International (the makers of Metastock 8.0) announced "an all-new type of exploration that emulates running system tests over an entire database of securities", I could hardly wait to get the Metastock 8.0 release.
While waiting to receiving my copy of Metastock 8.0 I began building trading systems. By the time my copy of Metastock 8.0 finally arrived, I had around 20 systems ready for testing, and couldn`t wait to try them out.
However, when I loaded up the software, I was in for a surprise. It looked like nothing had changed. I thought maybe Equis International had kept the same interface and added in greater flexibility and some more features, but after searching in every nook and cranny, I found next to nothing that was new. It looked the same and, except for a couple of small changes, it was the same!
Then I came to the System tester - now called the "Enhanced System Tester". This was my major reason for upgrading from version 7.22. This is what appeared to be only real difference between Metastock 7.22 and Metastock 8.0.
After fiddling around with the Metastock 8.0 Enhanced System Tester for a few hours, and testing my 20 systems, I reached the verdict that I wasted my money on the new version of Metastock 8.0. Despite the supposed improvements to the Enhanced System Tester it, like it`s predecessor, left a lot to be desired.
Even though the Metastock 8.0 Enhanced System Tester tests multiple securities in one batch, it treats each security independently of the others. Therefore, when Metastock 8.0 tests the first security, it uses your predefined float and takes the trade over the test period selected. Once that is completed, it repeats the same process for the second security, using the same initial float, with no reference to the first security.
In the end, you receive the same result that you would have if you simply tested each security individually and added the results together. Not only is this process dreadfully slow, but the entire reason for testing your system is side-stepped. When your finished all the explorations, the performance of your trading system is still unknown!
The moral of the story is that if you already own Metastock 7, don`t worry about upgrading to Metastock 8.0. Simply stick with the version you have and keep your fingers crossed that Equis International gets it right for Metastock 9.0.
9 Deadly Mistakes of the Stock Trader
The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals!
1. Trading with money you can't afford to lose.
One of the greatest obstacles to successful trading is using money that you really can’t afford to lose. Examples of this would be money that is supposed to be used to pay the mortgage, bills or your child’s college tuition. This is sometimes referred to as “trading with scared money” and there is a very good reason for that. Ultimately what happens is that when someone knows in the back of their mind that they are risking the rent money, they trade out of fear and emotion versus logic and no emotion. If you are in this situation I highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks. You can start with as little as $2000 and trade stocks under $30.
2. The need to be "certain".
We all have the need to make sure that the trade we want to make is going to be a good one. Therefore we look for signs that will give us a confirmation to enter. This can come in several forms, for example… Tuning into CNBC or the Wall Street Journal to give us news that our stock is on the move or waiting for a couple of extra days to make sure that the stock is really flying and just not on a false breakout. Other traders will get opinions from friends, family or broker. Others will wait for ten technical indicators to line up and give the “green light”.
All of these are okay to a point, however the big mistake to avoid is taking so much time that you let the trade take off without you. Interestingly, what ends up happening as a result of waiting too long is that you actually increase your risk. This is because as a stock moves higher and higher there are fewer buyers left in the market and it can come tumbling down until more buyers step in. It is like a game of musical chairs; eventually someone gets caught without a chair.
Traders who wait and wait and wait to make extra sure are usually the ones buying the top tick just before the stocks sells off. They then beat themselves up thinking they picked the wrong stock. Odds are it had nothing to do with their selection, just bad timing.
The thing to keep in mind is that there can be no absolute certainty in any given trade. All we ever can do is take a very educated risk along with a leap of faith!
3. Spending profits before you make them.
Nothing is more exciting then getting into a trade that blasts off and puts you into a highly profitable situation. This can cause major problems however, because this type of trade puts you in a highly euphoric state and leads to daydreaming about the huge profits still to come. You say “Wow I’m already up 15% in two days; I’ll be up 50% in a week and probably double my money in no time!” Then the next thing that happens is you are deciding on the great new car you are going to buy or perhaps telling your boss that he can stick it… Well you get the idea!
The real problem occurs as you get caught up in the daydream and expectations. This causes you to not be prepared to get out as the market sells off and eats up your profits because you have convinced yourself of the eventual outcome and will deny the reality of the situation.
The simple remedy for this is to know where and how you will take profits once you enter the trade. Also, realize that the market will only go up as long as it wants and not how high you think it should go.
4. Forming an opinion.
I’m here to tell you that the market does not give a damn about you or your opinions. Even if they are based on painstaking research or from a “Wall Street Guru”, it doesn’t matter!
5. Three 4-letter words that will kill you! HOPE---WISH---PRAY
If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! As I have already said, the market doesn’t give a damn. All the hoping, wishing and praying in the world is not going to turn a losing trade into a winning one.
When you are wrong just use a simple 4-letter word to correct the situation-SELL!
6. Not sticking to your plan
A big source of trouble arises when a trader starts to deviate from their strategy. Maybe for a week they will trade according to one set of rules and the next use something entirely different.
This flying by the seat of the pants always ends up backfiring. This is because the trader can never be certain what is working and what is not.
You must never deviate from your methodology once you start. As long as it is a good one statistically there is absolutely no reason to change it. The way to make money from it is to trade it over and over again to exploit the edge it gives you.
One thing to also be aware of is that a trader is most vulnerable to switching approaches after a few loses. So, pay special attention at these times.
7. Not knowing how to get out of a losing trade.
It’s amazing how many people I have talked to who don’t have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. As I keep saying the market does not care what you think. It does what it does and when you are wrong you are wrong!
The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out. You can use a dollar amount or at some target point such as the low of the previous 15-minute bar.
***Make sure you don’t get the “stunned deer in the headlights syndrome”. This is where you see the stock fall to your stop loss point, but you are unable to take action. Maybe this is due to fear or disbelief that you are wrong, but unless you get out ASAP you could end up I major financial trouble!
8. Having an ego.
I have seen a number of individuals enter the trading game that were extremely successful in other business ventures. Because of this they had a fairly big ego and thought they couldn’t fail. Their egos became their downfall because they couldn’t except that they were wrong and refused to bail out of bad trades.
Once again, whoever or wherever you came from does not concern the markets. All the charm, powers of persuasion, number of diplomas on the wall or business savvy will not budge the market when you are wrong.
9. Falling in love with a stock or trade.
Let me give you an example of what I mean. Back in the spring of 1999 EFAX was a really hot stock. I waited to buy it on a dip and did so at $19/share. It started to move up strongly and life was great!
After a while though, it started to come back to my entry point and then below it. Here’s the problem. For some reason I really liked EFAX and sort of became attached to it. Ultimately I couldn’t let go of it even though I knew I should. I justified and rationalized why my dear friend should bounce back, but it never did. I finally had to break off my love affair when the stock hit $9. (Ouch!)
The moral of this story is never fall in love, let alone get married to any stock. It can cost you dearly!
1. Trading with money you can't afford to lose.
One of the greatest obstacles to successful trading is using money that you really can’t afford to lose. Examples of this would be money that is supposed to be used to pay the mortgage, bills or your child’s college tuition. This is sometimes referred to as “trading with scared money” and there is a very good reason for that. Ultimately what happens is that when someone knows in the back of their mind that they are risking the rent money, they trade out of fear and emotion versus logic and no emotion. If you are in this situation I highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks. You can start with as little as $2000 and trade stocks under $30.
2. The need to be "certain".
We all have the need to make sure that the trade we want to make is going to be a good one. Therefore we look for signs that will give us a confirmation to enter. This can come in several forms, for example… Tuning into CNBC or the Wall Street Journal to give us news that our stock is on the move or waiting for a couple of extra days to make sure that the stock is really flying and just not on a false breakout. Other traders will get opinions from friends, family or broker. Others will wait for ten technical indicators to line up and give the “green light”.
All of these are okay to a point, however the big mistake to avoid is taking so much time that you let the trade take off without you. Interestingly, what ends up happening as a result of waiting too long is that you actually increase your risk. This is because as a stock moves higher and higher there are fewer buyers left in the market and it can come tumbling down until more buyers step in. It is like a game of musical chairs; eventually someone gets caught without a chair.
Traders who wait and wait and wait to make extra sure are usually the ones buying the top tick just before the stocks sells off. They then beat themselves up thinking they picked the wrong stock. Odds are it had nothing to do with their selection, just bad timing.
The thing to keep in mind is that there can be no absolute certainty in any given trade. All we ever can do is take a very educated risk along with a leap of faith!
3. Spending profits before you make them.
Nothing is more exciting then getting into a trade that blasts off and puts you into a highly profitable situation. This can cause major problems however, because this type of trade puts you in a highly euphoric state and leads to daydreaming about the huge profits still to come. You say “Wow I’m already up 15% in two days; I’ll be up 50% in a week and probably double my money in no time!” Then the next thing that happens is you are deciding on the great new car you are going to buy or perhaps telling your boss that he can stick it… Well you get the idea!
The real problem occurs as you get caught up in the daydream and expectations. This causes you to not be prepared to get out as the market sells off and eats up your profits because you have convinced yourself of the eventual outcome and will deny the reality of the situation.
The simple remedy for this is to know where and how you will take profits once you enter the trade. Also, realize that the market will only go up as long as it wants and not how high you think it should go.
4. Forming an opinion.
I’m here to tell you that the market does not give a damn about you or your opinions. Even if they are based on painstaking research or from a “Wall Street Guru”, it doesn’t matter!
5. Three 4-letter words that will kill you! HOPE---WISH---PRAY
If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! As I have already said, the market doesn’t give a damn. All the hoping, wishing and praying in the world is not going to turn a losing trade into a winning one.
When you are wrong just use a simple 4-letter word to correct the situation-SELL!
6. Not sticking to your plan
A big source of trouble arises when a trader starts to deviate from their strategy. Maybe for a week they will trade according to one set of rules and the next use something entirely different.
This flying by the seat of the pants always ends up backfiring. This is because the trader can never be certain what is working and what is not.
You must never deviate from your methodology once you start. As long as it is a good one statistically there is absolutely no reason to change it. The way to make money from it is to trade it over and over again to exploit the edge it gives you.
One thing to also be aware of is that a trader is most vulnerable to switching approaches after a few loses. So, pay special attention at these times.
7. Not knowing how to get out of a losing trade.
It’s amazing how many people I have talked to who don’t have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. As I keep saying the market does not care what you think. It does what it does and when you are wrong you are wrong!
The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out. You can use a dollar amount or at some target point such as the low of the previous 15-minute bar.
***Make sure you don’t get the “stunned deer in the headlights syndrome”. This is where you see the stock fall to your stop loss point, but you are unable to take action. Maybe this is due to fear or disbelief that you are wrong, but unless you get out ASAP you could end up I major financial trouble!
8. Having an ego.
I have seen a number of individuals enter the trading game that were extremely successful in other business ventures. Because of this they had a fairly big ego and thought they couldn’t fail. Their egos became their downfall because they couldn’t except that they were wrong and refused to bail out of bad trades.
Once again, whoever or wherever you came from does not concern the markets. All the charm, powers of persuasion, number of diplomas on the wall or business savvy will not budge the market when you are wrong.
9. Falling in love with a stock or trade.
Let me give you an example of what I mean. Back in the spring of 1999 EFAX was a really hot stock. I waited to buy it on a dip and did so at $19/share. It started to move up strongly and life was great!
After a while though, it started to come back to my entry point and then below it. Here’s the problem. For some reason I really liked EFAX and sort of became attached to it. Ultimately I couldn’t let go of it even though I knew I should. I justified and rationalized why my dear friend should bounce back, but it never did. I finally had to break off my love affair when the stock hit $9. (Ouch!)
The moral of this story is never fall in love, let alone get married to any stock. It can cost you dearly!
Forex Training: What to Look for in a Forex Training Program
Should new Forex traders take Forex trading courses or join a Forex training program? Definitely yes; by now you have probably heard that only 5% of traders achieve consistent profitable results when trading the Forex market. The main reason for this is the lack of education. Don’t get me wrong here, taking a Forex training program or a Forex trading course won’t guarantee profitable results, nothing can, but choosing the right Forex training program or Forex trading course will definitely put the odds in your favor.
Before spending any amount of money on any Forex trading course or Forex training program there are some important aspects you need to take in consideration. There are many training programs available, but not every one of them suits the needs of every trader.
The first thing you should be looking in a Forex training program is the content of the material. Unfortunately, most courses or training programs focus or spend most of the time on basic concepts. Though these basic concepts are important, spending most of the course on them won’t help the trader to make consistent results.
The following subjects are what I consider the most important aspects of trading and every training program or trading course should address:
Forex trading basics.
Review basic concepts such as: margin, type of orders, a little background, bid/ask, rollover, etc. You need to make sure you understand every single concept to perfection.
Main drawbacks of Forex traders.
Being aware of the common mistakes made by Forex traders and knowing how to handle them will prevent new traders from making those mistakes.
Technical and fundamental analysis.
These are the two main approaches adopted by Forex traders. Knowing how to properly apply each concept will definitely put the odds in your favor.
The three pillars of Forex trading. I consider that these three subjects have the most impact on every trader trading account.
Forex trading system development.
Having the right system is a must if you want to have consistent profitable results. Having a system that doesn’t fit you will cause a series of problems that will make your trading account vanish away (second guessing the system, not following your system, etc.)
Money management.
This is considered by many successful traders to be the most important single aspect of trading. Money management helps to increase your profits geometrically and at the same time limit your losses (i.e. a good risk reward ratio of about 2:1 will make you money in a Forex trading system that is right only 38% of the time.)
Trading psychology.
Being aware and knowing hot to handle the psychological barriers that affect every trader decision will put the odds in your favor.
Other important aspects every training program should include are:
Developing habits for success (such as discipline patience, taking responsibility of every action, commitment, etc.,) understanding and taking our trading as a business, risk and trade management.
Another important aspect you should take into consideration when choosing a Forex training program is the mechanics of it, getting to know how the training program works.
A good course will have the following:
A live conference room, where you can apply everything learned under live market conditions.
One-on-one feedback, every trader has different needs and requires special attention. For instance a trader wanting to improve the system and requires individual feedback from the instructor about it.
Online trading course, a course that could be accessible through internet. A plus is a course where you are able to access the course at the convenient time for you, so you don’t have to change your lifestyle.
A forum, where members can talk just about everything related to the Forex market and the Forex training program.
Trading the Forex market is no easy task. It requires a lot of hard work. Making the right decision will definitely put the odds in your favor. Take your time when doing your diligence because it is a big and important step in a trader’s trading career.
Before spending any amount of money on any Forex trading course or Forex training program there are some important aspects you need to take in consideration. There are many training programs available, but not every one of them suits the needs of every trader.
The first thing you should be looking in a Forex training program is the content of the material. Unfortunately, most courses or training programs focus or spend most of the time on basic concepts. Though these basic concepts are important, spending most of the course on them won’t help the trader to make consistent results.
The following subjects are what I consider the most important aspects of trading and every training program or trading course should address:
Forex trading basics.
Review basic concepts such as: margin, type of orders, a little background, bid/ask, rollover, etc. You need to make sure you understand every single concept to perfection.
Main drawbacks of Forex traders.
Being aware of the common mistakes made by Forex traders and knowing how to handle them will prevent new traders from making those mistakes.
Technical and fundamental analysis.
These are the two main approaches adopted by Forex traders. Knowing how to properly apply each concept will definitely put the odds in your favor.
The three pillars of Forex trading. I consider that these three subjects have the most impact on every trader trading account.
Forex trading system development.
Having the right system is a must if you want to have consistent profitable results. Having a system that doesn’t fit you will cause a series of problems that will make your trading account vanish away (second guessing the system, not following your system, etc.)
Money management.
This is considered by many successful traders to be the most important single aspect of trading. Money management helps to increase your profits geometrically and at the same time limit your losses (i.e. a good risk reward ratio of about 2:1 will make you money in a Forex trading system that is right only 38% of the time.)
Trading psychology.
Being aware and knowing hot to handle the psychological barriers that affect every trader decision will put the odds in your favor.
Other important aspects every training program should include are:
Developing habits for success (such as discipline patience, taking responsibility of every action, commitment, etc.,) understanding and taking our trading as a business, risk and trade management.
Another important aspect you should take into consideration when choosing a Forex training program is the mechanics of it, getting to know how the training program works.
A good course will have the following:
A live conference room, where you can apply everything learned under live market conditions.
One-on-one feedback, every trader has different needs and requires special attention. For instance a trader wanting to improve the system and requires individual feedback from the instructor about it.
Online trading course, a course that could be accessible through internet. A plus is a course where you are able to access the course at the convenient time for you, so you don’t have to change your lifestyle.
A forum, where members can talk just about everything related to the Forex market and the Forex training program.
Trading the Forex market is no easy task. It requires a lot of hard work. Making the right decision will definitely put the odds in your favor. Take your time when doing your diligence because it is a big and important step in a trader’s trading career.
Forex Trading: The Perfect Forex Trading System
Trading the Forex market has became very popular in the last few years. But how difficult is it to achieve success in the Forex trading arena? Or let me rephrase this question, how many traders achieve consistent profitable results trading the Forex market? Unfortunately very few, only 5% of traders achieve this goal. One of the main reasons of this is because Forex traders focus in the wrong information to make their trading decisions and totally forget about the most important factor: Price behavior.
Most Forex trading systems are made off technical indicators (a moving average (MA) crossover, overbought/oversold conditions in an oscillator, etc.) But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.
There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as “the MA crossover made the price go up,” but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.
Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn’t want to go up. Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.
Don’t get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.
So, how to create a perfect Forex trading system?
First of all, you need to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You need to make your own research on various trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.
Secondly, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and short signals if the market gives you indication that it will go down.
Third, and most importantly, you need to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling comfortably and being consistent profitable apply your system in a regular account.
Most Forex trading systems are made off technical indicators (a moving average (MA) crossover, overbought/oversold conditions in an oscillator, etc.) But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.
There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as “the MA crossover made the price go up,” but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.
Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn’t want to go up. Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.
Don’t get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.
So, how to create a perfect Forex trading system?
First of all, you need to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You need to make your own research on various trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.
Secondly, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and short signals if the market gives you indication that it will go down.
Third, and most importantly, you need to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling comfortably and being consistent profitable apply your system in a regular account.
Forex Trading System: Mechanical vs. Discretionary Systems
There are basically two types of Forex trading systems, mechanical and discretionary systems. The trading signals that come out of mechanical systems are mainly based off technical analysis applied in a systematic way. On the other hand, discretionary systems use experience, intuition or judgment on entries and exits. But which one produces better results? Or more importantly, which one fits better your trading style? These are the answers we will try to answer on this article.
We will first analyze the pros and cons about each system approach.
Mechanical systems
Advantages
This kind of system can be automated and backtested efficiently.
It has very rigid rules. Either, there is a trade or there isn’t.
Mechanical traders are less susceptible to emotions than discretionary traders.
Disadvantages
Most traders backtest Forex trading systems incorrectly. In order to produce accurate results you need tick data.
The Forex market is always changing. The Forex market (and all markets) has a random component. The market conditions may look similar, but they are never the same.
A system that worked successfully the past year doesn’t necessary mean it will work this year.
Discretionary systems
Advantages
Discretionary systems are easily adaptable to new market conditions.
Trading decisions are based on experience. Traders learn to see which trading signals have higher probability of success.
Disadvantages
They cannot be backtested or automated, since there is always a thought decision to be made.
It takes time to develop the experience required to trade successfully and track trades in a discretionary way. At early stages this can be dangerous.
Now, which approach is better for Forex traders? The one that fits better your personality. For instance, if you are a trader that finds it hard to follow your trading signals, then you are better off using a mechanical system, where your judgment won’t play an important role in your system. You only take the trades that your system signals.
If the psychological barriers that affect every trader (fear, greed, anger, etc.) puts you in unwanted scenarios, you are also better off trading mechanical systems, because you only need to follow what your system is telling you, go short, go long, close a trade. No other decision has to be made.
On the other hand, if you are a disciplined trader, then you are better off using a discretionary system, because discretionary systems adapt to the market conditions and you are able to change your trading conditions as the market changes. For instance, you have a target of 60 pips on a long trade. But the market suddenly starts trending up pretty strongly, then you could move your target to say 100 pips.
Does it mean that trading a discretionary system has no rules? This is absolutely incorrect. Trading discretionary systems means that once a trader finds his/her setup, the trader then decides what to do. But every trader still needs certain rules that need to be followed, such as the size of the position, conditions that have to be met before thinking to get in the market, and so on.
I am a discretionary trader. The main reason I chose a discretionary system is that my trades are based on price behavior, and as you already know, the price behaves similar to the past, but it is never identical, therefore the outcome of every trade is unknown. However, I do have rigid rules on my system, certain conditions have to be met before I even think in getting in a trade. This keeps me out of trouble, once my setup is present and in accordance with the rules I have set, I closely watch the price behavior and finally decide whether it is a good opportunity or not.
Whether you choose to be a discretionary or a mechanical trader there are some important points you should take in consideration:
1. You need to make sure the Forex trading system you are using totally fits your personality. Otherwise you will find yourself outguessing your system.
2. You also need to have some rules and most importantly have the discipline to follow them.
3. Take your time to build the perfect system for you. It’s not easy and requires time and hard work, but at the end, if done correctly, it will give you consistent profitable results.
4. Before going live, try it on a demo account or even on a small account (I will go for the second option, since psychological barriers will be present.)
We will first analyze the pros and cons about each system approach.
Mechanical systems
Advantages
This kind of system can be automated and backtested efficiently.
It has very rigid rules. Either, there is a trade or there isn’t.
Mechanical traders are less susceptible to emotions than discretionary traders.
Disadvantages
Most traders backtest Forex trading systems incorrectly. In order to produce accurate results you need tick data.
The Forex market is always changing. The Forex market (and all markets) has a random component. The market conditions may look similar, but they are never the same.
A system that worked successfully the past year doesn’t necessary mean it will work this year.
Discretionary systems
Advantages
Discretionary systems are easily adaptable to new market conditions.
Trading decisions are based on experience. Traders learn to see which trading signals have higher probability of success.
Disadvantages
They cannot be backtested or automated, since there is always a thought decision to be made.
It takes time to develop the experience required to trade successfully and track trades in a discretionary way. At early stages this can be dangerous.
Now, which approach is better for Forex traders? The one that fits better your personality. For instance, if you are a trader that finds it hard to follow your trading signals, then you are better off using a mechanical system, where your judgment won’t play an important role in your system. You only take the trades that your system signals.
If the psychological barriers that affect every trader (fear, greed, anger, etc.) puts you in unwanted scenarios, you are also better off trading mechanical systems, because you only need to follow what your system is telling you, go short, go long, close a trade. No other decision has to be made.
On the other hand, if you are a disciplined trader, then you are better off using a discretionary system, because discretionary systems adapt to the market conditions and you are able to change your trading conditions as the market changes. For instance, you have a target of 60 pips on a long trade. But the market suddenly starts trending up pretty strongly, then you could move your target to say 100 pips.
Does it mean that trading a discretionary system has no rules? This is absolutely incorrect. Trading discretionary systems means that once a trader finds his/her setup, the trader then decides what to do. But every trader still needs certain rules that need to be followed, such as the size of the position, conditions that have to be met before thinking to get in the market, and so on.
I am a discretionary trader. The main reason I chose a discretionary system is that my trades are based on price behavior, and as you already know, the price behaves similar to the past, but it is never identical, therefore the outcome of every trade is unknown. However, I do have rigid rules on my system, certain conditions have to be met before I even think in getting in a trade. This keeps me out of trouble, once my setup is present and in accordance with the rules I have set, I closely watch the price behavior and finally decide whether it is a good opportunity or not.
Whether you choose to be a discretionary or a mechanical trader there are some important points you should take in consideration:
1. You need to make sure the Forex trading system you are using totally fits your personality. Otherwise you will find yourself outguessing your system.
2. You also need to have some rules and most importantly have the discipline to follow them.
3. Take your time to build the perfect system for you. It’s not easy and requires time and hard work, but at the end, if done correctly, it will give you consistent profitable results.
4. Before going live, try it on a demo account or even on a small account (I will go for the second option, since psychological barriers will be present.)
Forex Trading Online - 7 Reasons You Should
Forex trading online is a fast way to use your investment capital to it's fullest. The Forex markets offer distinct advantages to the small and large traders alike, making Forex currency trading in many ways preferable to other markets such as stocks, options or traditional futures. Here are seven reasons why you'll want to look into Forex Trading online.
1 - Forex is the largest market.
Forex trading volume of more than 1.9 billion, more than 3 times larger than the equities market and more than 5 times bigger than futures, give Forex traders nearly unlimited liquidity and flexibility.
2 - Forex never sleeps!
You can execute forex trading online 24/7, from 7AM New Zealand time on Monday morning, to 5PM New York time on Friday evening. No waiting for markets to open: they're open all night! This makes Forex trading online a very attractive component that fits easily into your day (or night!)
3 - No Bulls or Bears!
Because Forex trading online involves the buying of one currency while simultaneously selling another, you have an equal opportunity for profit no matter which direction the currency is headed. Another advantage is that there are only around 14 pairs of currencies to trade, as opposed to many thousands of stocks, options and futures.
4 - Forex Trading online offers great leverage!
You can make the most of your investment resources with Forex trading online. Some brokers offer 200:1 margin ratios in your trading accounts. Mini-FX accounts, which can typically be opened with only $200-300, offer 0.5% margin, meaning that $50 in trading capital can control a 10,000 unit currency position. This is why people are flocking to Forex trading online as a way to highly leverage their investments.
5 - Forex prices are predictable.
Currency prices, though volatile, tend to create and follow trends, allowing the technically trained Forex trader to spot and take advantage of many entry and exit points.
6 - Forex trading online is commission free!
That's right! No commissions, no exchange fees or any other hidden fees. This is a very transparent market, and you'll find it very easy to research the currencies and the countries involved. Forex brokers make a small percentage of the bid/ask spread, and that's it. No longer any need to compute commissions and fees when executing a trade.
7 - Forex trading online is instant!
The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds. Since this is all done electronically with no humans involved, there is little to slow it down!
Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!
1 - Forex is the largest market.
Forex trading volume of more than 1.9 billion, more than 3 times larger than the equities market and more than 5 times bigger than futures, give Forex traders nearly unlimited liquidity and flexibility.
2 - Forex never sleeps!
You can execute forex trading online 24/7, from 7AM New Zealand time on Monday morning, to 5PM New York time on Friday evening. No waiting for markets to open: they're open all night! This makes Forex trading online a very attractive component that fits easily into your day (or night!)
3 - No Bulls or Bears!
Because Forex trading online involves the buying of one currency while simultaneously selling another, you have an equal opportunity for profit no matter which direction the currency is headed. Another advantage is that there are only around 14 pairs of currencies to trade, as opposed to many thousands of stocks, options and futures.
4 - Forex Trading online offers great leverage!
You can make the most of your investment resources with Forex trading online. Some brokers offer 200:1 margin ratios in your trading accounts. Mini-FX accounts, which can typically be opened with only $200-300, offer 0.5% margin, meaning that $50 in trading capital can control a 10,000 unit currency position. This is why people are flocking to Forex trading online as a way to highly leverage their investments.
5 - Forex prices are predictable.
Currency prices, though volatile, tend to create and follow trends, allowing the technically trained Forex trader to spot and take advantage of many entry and exit points.
6 - Forex trading online is commission free!
That's right! No commissions, no exchange fees or any other hidden fees. This is a very transparent market, and you'll find it very easy to research the currencies and the countries involved. Forex brokers make a small percentage of the bid/ask spread, and that's it. No longer any need to compute commissions and fees when executing a trade.
7 - Forex trading online is instant!
The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds. Since this is all done electronically with no humans involved, there is little to slow it down!
Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!
Forex Trading: Great Opportunity or Scam?
A lot of interest has been generated recently in FOREX trading, hailed by some as the great new investment opportunity. There are even companies running TV infomercials, offering sure fire systems that will bring massive profits in an easy fashion.
So what is forex? Is it something new? The exchange of currencies is said by some to be the world's second oldest profession and as long as there have been two sovereign states that have issued their own currencies, there has been foreign exchange as a facilitator for trade.
Forex, as foreign exchange has been abbreviated to, has been conducted for centuries and has become a global market with a daily turnover according to a recent Bank for International Settlements survey of $1.9 trillion (billion, billion) per day. Essentially it is a global market place with no physical exchange building where all claims on foreign currencies are settled - between governments, corporations, investors and speculators among others. Banks have traditionally been the middlemen who provide the liquidity to this gigantic market, which incidentally is traded on an almost continuous 24-hour basis.
Then came the Internet and suddenly it became possible for everyone to get a piece of the speculative action. Brokers sprouted up with their electronic trading platforms and high 'leverage'. Essentially the brokers lend clients funds to speculate with, 100:1 or in some cases up to 400:1 ratio, or leverage. This means that $10,000 can 'control' up to $4,000,000 in the market. This is far higher than is possible in the stock market.
Many people have been attracted to the possibilities of earning fast profits from forex. There are often sharp movements that can turn your $10,000 to $20,000 in a matter of minutes. You can also get wiped out, but the lure of a fast buck has turned would-be speculators into out-and-out gamblers.
The Internet has also made it possible for the individual to obtain so-called 'charts', that allow them to do 'technical analysis' on their own PCs. The theory is that price movement patterns repeat themselves, so if you have a system of analysis, you can predict a future move in the market.
This may well be the case, but it does not address the problems of the psychology of trading - the fear and greed that drives many to irrational behaviour. People are often taken in by the seller of a system, often paying $5,000 for a piece of software that shows a green light to buy and a red light to sell. However, they don't tell you how to manage your money.
So speculators lose. It has been estimated that 90% of new investors in forex lose their capital in the first year - an appalling figure. What can one do to avoid being a victim? Well, forex is a business like any other business and planning is required. It is also a profession and as such, adequate training is necessary so that you understand fully what forex trading is all about.
Many are prepared to invest thousands in forex trading without really knowing what it is all about. Just think if franchises were offered in a major hamburger chain without the franchisees having a clue how to run a restaurant or even make the burgers. The failure rate would also probably be 90%!
As with all investing, it is all a matter of risk and reward. Investing in Government securities is considered low risk, therefore they carry the lowest return. Increase the risk (the probability of loss on the investment), the higher an investor is rewarded in terms of return. An individual trading forex decides his own level of risk, which should dictate the level of reward. However, in the hands of an inexperienced trader, the two factors are impossible to reconcile, meaning in stark terms that traders cannot control the risk or the reward levels.
People attracted to forex trading often have an unrealistic expectation of what can be earned. To start with an investment of $5,000 and expect to be making $100,000 a year after the first year is unrealistic. It is not impossible; then again, neither is winning the lottery.
If the parameters for trading are laid down and adhered to combined with knowledge of forex trading, success is possible. It does not take much in the way of 'enhanced' returns to be able to double an investment. 26% per annum is required to double your investment within 3 years.
Who is going to teach you? There are some very good courses available, but these will only give you the theory, in itself very important. The ideal way is to have a mentor, or guide to show you the way.
Getting mentored is a wise move because it makes it possible to draw on the experience of a veteran expert and avoid making the common mistakes that cause the unwary to suffer catastrophic losses. After a while under guidance, a forex trader will gain the experience
The bottom line is that forex is not in itself a scam. There are for sure scam artists who prey on individuals' greed as there are in any other business. If it is approached in a sensible and realistic manner and the trader is prepared to work hard, forex can provide a good living both financially and materially.
So what is forex? Is it something new? The exchange of currencies is said by some to be the world's second oldest profession and as long as there have been two sovereign states that have issued their own currencies, there has been foreign exchange as a facilitator for trade.
Forex, as foreign exchange has been abbreviated to, has been conducted for centuries and has become a global market with a daily turnover according to a recent Bank for International Settlements survey of $1.9 trillion (billion, billion) per day. Essentially it is a global market place with no physical exchange building where all claims on foreign currencies are settled - between governments, corporations, investors and speculators among others. Banks have traditionally been the middlemen who provide the liquidity to this gigantic market, which incidentally is traded on an almost continuous 24-hour basis.
Then came the Internet and suddenly it became possible for everyone to get a piece of the speculative action. Brokers sprouted up with their electronic trading platforms and high 'leverage'. Essentially the brokers lend clients funds to speculate with, 100:1 or in some cases up to 400:1 ratio, or leverage. This means that $10,000 can 'control' up to $4,000,000 in the market. This is far higher than is possible in the stock market.
Many people have been attracted to the possibilities of earning fast profits from forex. There are often sharp movements that can turn your $10,000 to $20,000 in a matter of minutes. You can also get wiped out, but the lure of a fast buck has turned would-be speculators into out-and-out gamblers.
The Internet has also made it possible for the individual to obtain so-called 'charts', that allow them to do 'technical analysis' on their own PCs. The theory is that price movement patterns repeat themselves, so if you have a system of analysis, you can predict a future move in the market.
This may well be the case, but it does not address the problems of the psychology of trading - the fear and greed that drives many to irrational behaviour. People are often taken in by the seller of a system, often paying $5,000 for a piece of software that shows a green light to buy and a red light to sell. However, they don't tell you how to manage your money.
So speculators lose. It has been estimated that 90% of new investors in forex lose their capital in the first year - an appalling figure. What can one do to avoid being a victim? Well, forex is a business like any other business and planning is required. It is also a profession and as such, adequate training is necessary so that you understand fully what forex trading is all about.
Many are prepared to invest thousands in forex trading without really knowing what it is all about. Just think if franchises were offered in a major hamburger chain without the franchisees having a clue how to run a restaurant or even make the burgers. The failure rate would also probably be 90%!
As with all investing, it is all a matter of risk and reward. Investing in Government securities is considered low risk, therefore they carry the lowest return. Increase the risk (the probability of loss on the investment), the higher an investor is rewarded in terms of return. An individual trading forex decides his own level of risk, which should dictate the level of reward. However, in the hands of an inexperienced trader, the two factors are impossible to reconcile, meaning in stark terms that traders cannot control the risk or the reward levels.
People attracted to forex trading often have an unrealistic expectation of what can be earned. To start with an investment of $5,000 and expect to be making $100,000 a year after the first year is unrealistic. It is not impossible; then again, neither is winning the lottery.
If the parameters for trading are laid down and adhered to combined with knowledge of forex trading, success is possible. It does not take much in the way of 'enhanced' returns to be able to double an investment. 26% per annum is required to double your investment within 3 years.
Who is going to teach you? There are some very good courses available, but these will only give you the theory, in itself very important. The ideal way is to have a mentor, or guide to show you the way.
Getting mentored is a wise move because it makes it possible to draw on the experience of a veteran expert and avoid making the common mistakes that cause the unwary to suffer catastrophic losses. After a while under guidance, a forex trader will gain the experience
The bottom line is that forex is not in itself a scam. There are for sure scam artists who prey on individuals' greed as there are in any other business. If it is approached in a sensible and realistic manner and the trader is prepared to work hard, forex can provide a good living both financially and materially.
Forex Trading
The foreign exchange market, also knows as FOREX, originated in 1973 has become the largest e-currency trade market in the world today. FOREX trading occurs 24 hours a day, 5 days a week. The FOREX market offers a unique trading opportunity to those seeking a substantial profit in a market that trades over 1.2 trillion dollars each day.
FOREX market is primarily traded between central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Previously small investors were unable to trade in the FOREX market due to the large deposit required. However until recent years, with the continuing growth of the internet and competition, Forex trading has made it so small investors can now open a FOREX trading account with as little as $250.
There are a few factors as to why FOREX investing is starting to attract more small investors. For one, FOREX can be traded 24 hours a day 5 days a week. Previously trades were placed by phone, the internet has made it possible for traders to monitor their FOREX trading accounts from home and execute trades in real time with the click of a mouse button.
In order to start trading in the FOREX market, one must first open an account with a broker. It is recommended to obtain a list of brokers and do some research before deciding on which broker to deal with. Each broker offers different policies and different spreads on each currency that is traded.
Before trading in FOREX, one must first understand the risk and reward behind
margin trading in FOREX. A margined account can be leveraged, which means trading in FOREX can be done with solely cash or a combination of cash and collateral such as a security deposit. The main risk involved in margin trading is that margin trading tends to inflate loss. In addition the rate of loss and leverage makes FOREX a high risk investment. However, regardless of the downside in margin trading, FOREX is still very profitable as huge gains can be made.
There are plenty of resources on the internet that will discuss trading strategies, emotions and what it takes to become a successful trader. Most of these web sites are going to tell you that emotions play the largest roll in your success as a trader.
FOREX market is primarily traded between central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Previously small investors were unable to trade in the FOREX market due to the large deposit required. However until recent years, with the continuing growth of the internet and competition, Forex trading has made it so small investors can now open a FOREX trading account with as little as $250.
There are a few factors as to why FOREX investing is starting to attract more small investors. For one, FOREX can be traded 24 hours a day 5 days a week. Previously trades were placed by phone, the internet has made it possible for traders to monitor their FOREX trading accounts from home and execute trades in real time with the click of a mouse button.
In order to start trading in the FOREX market, one must first open an account with a broker. It is recommended to obtain a list of brokers and do some research before deciding on which broker to deal with. Each broker offers different policies and different spreads on each currency that is traded.
Before trading in FOREX, one must first understand the risk and reward behind
margin trading in FOREX. A margined account can be leveraged, which means trading in FOREX can be done with solely cash or a combination of cash and collateral such as a security deposit. The main risk involved in margin trading is that margin trading tends to inflate loss. In addition the rate of loss and leverage makes FOREX a high risk investment. However, regardless of the downside in margin trading, FOREX is still very profitable as huge gains can be made.
There are plenty of resources on the internet that will discuss trading strategies, emotions and what it takes to become a successful trader. Most of these web sites are going to tell you that emotions play the largest roll in your success as a trader.
Forex Broker Commissions
Most forex brokers do not charge commissions. GFT Forex Brokers, like other forex brokers, are compensated by revenues from their activities as currency dealers, including proceeds from buying, selling, converting and holding currencies, interest on deposited funds, and rollover fees.
Many may wonder how brokers work without commissions. The forex dealer is like a middleman. Let's consider the case of a bread middleman. He buys bread at a “wholesale” price and he sells it at a “retail” price. So if one is a baker, he can ask the middleman how much he would buy his bread for. Let's say the middleman quotes $1, so he's willing to pay $1 per loaf.
On the other side of the equation, let's say you just finished his last slice of bread, and you needs a new loaf. So you call up the local middleman, and ask him how much he's willing to sell you (a customer) a loaf of bread for. And he quotes the baker $1.25. That sounds reasonable, so you tell him to drop one off for you.
In this example, the bread middleman didn't charge you a commission to either the baker or you, the customer. Instead he bought at one price and sold at another. He will let you buy from him at $1.25, and let you sell to him at $1. So every time the baker has bread to sell, he checks the middleman's sell price. And when you want to buy a loaf of bread, you check the buy price.
In trading, this is known as the “bid” and “ask”. The bid is the price you can sell at, and the ask is the price you can buy at.
Considering forex broker commissions, the forex dealer will let the trader buy from him at 1.1971 and will let the trader sell to him at 1.1967. The difference 0.0004 is known as the spread. And this spread is where the forex “middleman” makes his money.
If the trader were to buy at 1.1971, then the instant the trader buys, he is “down” 0.0004, because if the trader wanted out of the trade, the best price he could sell it for is 1.1967. So as the forex dealer takes varying trades from people, each buying or selling, he can make money from this price gap. Each minimum increment, 0.0001 is referred to as a “pip”. So the spread in this example is 4 pips. In terms of dollars, for a forex contract of $100,000, this transaction would cost you $40 ($100,000 x 0.0004) or 4 pips. So the trader will find that some companies will advertise a spread of 3 pips on some currencies, usually ranging up to five on others. In forex trading, the tighter the spread is, the better.
Many may wonder how brokers work without commissions. The forex dealer is like a middleman. Let's consider the case of a bread middleman. He buys bread at a “wholesale” price and he sells it at a “retail” price. So if one is a baker, he can ask the middleman how much he would buy his bread for. Let's say the middleman quotes $1, so he's willing to pay $1 per loaf.
On the other side of the equation, let's say you just finished his last slice of bread, and you needs a new loaf. So you call up the local middleman, and ask him how much he's willing to sell you (a customer) a loaf of bread for. And he quotes the baker $1.25. That sounds reasonable, so you tell him to drop one off for you.
In this example, the bread middleman didn't charge you a commission to either the baker or you, the customer. Instead he bought at one price and sold at another. He will let you buy from him at $1.25, and let you sell to him at $1. So every time the baker has bread to sell, he checks the middleman's sell price. And when you want to buy a loaf of bread, you check the buy price.
In trading, this is known as the “bid” and “ask”. The bid is the price you can sell at, and the ask is the price you can buy at.
Considering forex broker commissions, the forex dealer will let the trader buy from him at 1.1971 and will let the trader sell to him at 1.1967. The difference 0.0004 is known as the spread. And this spread is where the forex “middleman” makes his money.
If the trader were to buy at 1.1971, then the instant the trader buys, he is “down” 0.0004, because if the trader wanted out of the trade, the best price he could sell it for is 1.1967. So as the forex dealer takes varying trades from people, each buying or selling, he can make money from this price gap. Each minimum increment, 0.0001 is referred to as a “pip”. So the spread in this example is 4 pips. In terms of dollars, for a forex contract of $100,000, this transaction would cost you $40 ($100,000 x 0.0004) or 4 pips. So the trader will find that some companies will advertise a spread of 3 pips on some currencies, usually ranging up to five on others. In forex trading, the tighter the spread is, the better.
Forex And Daytrading
Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save months of expensive trial-and-error learning.
Day Trading
Day Trading had its heyday during the bull market of the 1990's. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.
FOREX Trading
The Foreign Exchange Market (FOREX), the world's largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than $1.2 trillion dollars.
Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.
As a matter of fact, it's advisable to take FOREX training even before opening a trading account.
It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to either enroll in a FOREX training courses or even purchase some books regarding FOREX trading.
There are pros and cons to enrolling into a FOREX course. For beginners a FOREX course is a rapid method of learning the basics of FOREX trading. Not much time is spent on history of the market or arcane economic theories. Often, on-line or phone support from a skilled FOREX trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.
The disadvantage is the price, as courses are more expensive than a paperback from the bookstore. Also,
the course may just teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realise that nothing is predictable in the FOREX market, and many different strategies will bring profits in varying market circumstances. Also, knowledge of practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.
The best advice would be to do some background research on the FOREX market first, and then enroll in a course.
Day Trading
Day Trading had its heyday during the bull market of the 1990's. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.
FOREX Trading
The Foreign Exchange Market (FOREX), the world's largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than $1.2 trillion dollars.
Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.
As a matter of fact, it's advisable to take FOREX training even before opening a trading account.
It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to either enroll in a FOREX training courses or even purchase some books regarding FOREX trading.
There are pros and cons to enrolling into a FOREX course. For beginners a FOREX course is a rapid method of learning the basics of FOREX trading. Not much time is spent on history of the market or arcane economic theories. Often, on-line or phone support from a skilled FOREX trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.
The disadvantage is the price, as courses are more expensive than a paperback from the bookstore. Also,
the course may just teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realise that nothing is predictable in the FOREX market, and many different strategies will bring profits in varying market circumstances. Also, knowledge of practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.
The best advice would be to do some background research on the FOREX market first, and then enroll in a course.
Forex And Daytrading
Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save months of expensive trial-and-error learning.
Day Trading
Day Trading had its heyday during the bull market of the 1990's. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.
FOREX Trading
The Foreign Exchange Market (FOREX), the world's largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than $1.2 trillion dollars.
Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.
As a matter of fact, it's advisable to take FOREX training even before opening a trading account.
It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to either enroll in a FOREX training courses or even purchase some books regarding FOREX trading.
There are pros and cons to enrolling into a FOREX course. For beginners a FOREX course is a rapid method of learning the basics of FOREX trading. Not much time is spent on history of the market or arcane economic theories. Often, on-line or phone support from a skilled FOREX trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.
The disadvantage is the price, as courses are more expensive than a paperback from the bookstore. Also,
the course may just teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realise that nothing is predictable in the FOREX market, and many different strategies will bring profits in varying market circumstances. Also, knowledge of practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.
The best advice would be to do some background research on the FOREX market first, and then enroll in a course.
Day Trading
Day Trading had its heyday during the bull market of the 1990's. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.
FOREX Trading
The Foreign Exchange Market (FOREX), the world's largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than $1.2 trillion dollars.
Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.
As a matter of fact, it's advisable to take FOREX training even before opening a trading account.
It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to either enroll in a FOREX training courses or even purchase some books regarding FOREX trading.
There are pros and cons to enrolling into a FOREX course. For beginners a FOREX course is a rapid method of learning the basics of FOREX trading. Not much time is spent on history of the market or arcane economic theories. Often, on-line or phone support from a skilled FOREX trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.
The disadvantage is the price, as courses are more expensive than a paperback from the bookstore. Also,
the course may just teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realise that nothing is predictable in the FOREX market, and many different strategies will bring profits in varying market circumstances. Also, knowledge of practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.
The best advice would be to do some background research on the FOREX market first, and then enroll in a course.
Forex Trading Mistakes - 10 Major Reasons
Have you ever wonder, why is it that the very few successful traders in the Forex trading market while 90% of Forex traders are not successful? Below are 10 main reasons:
1. Looking for quick and easy Money
I must stress that foreign currency is not breaking the system quickly. Achieving consistent results of the Forex trading is intense. This requires a bit of Forex training, patience, abuse, feelings, etc. you get a successful world currency.
2. Looking for the Holy Grail
I have people asked me, 'What is the best Forex trading system around? " There is no such trade currency systems. Many Forex traders spend years trying to find the Holy Grail foreign exchange trading activities, but could not find one. The main reason is the Forex market changes in ikinen moment.
3. INSUFFICIENT Legal Education
One of the reasons why Forex traders do not, therefore, that they do not have the right to education. Some people who were not even open a Forex trading Forex educates themselves about the book or the currency. Need some koulutuslautakunta Forex Training, Forex course, Forex trading, and then the preparation of a mentor for you.
4. Misbehavior
Discipline is so important to fx trading, that he collected the rewards you can actually, if it is followed, and it could be translated into something Forex trading account, where the lack of it.
5. Lack of Patience
Forex traders chase the price, because they do not want to leave a golden trading opportunity. The currency, there is no such issue as a great opportunity for me, because each of Forex trading on the settings are equally important.
6. No Money Management
Most Forex traders Forex trading risk entirely forgotten. They only think about how much they win, and never plan for the worst. Cash Handling Services to the risk of any trade restrictions, so that you can trade tomorrow, next week, month and year.
7. Lack of control Emotions
Perfektionisti be next on your Forex trading scheme. Pysykää quiet as lost trade, you know, that there is an endless opportunity to earn the opportunity to win one back. Do not let ahneus having you!
8. Having Unrealistic expectations
People are forced to fx trading paradigms, they are successful and earn tons of cash, from $ 1000, and after that to $ 100 000 a very short period of time. You know why this is not true, if you are receiving the free ebook Forex.
9. Lack of Mentorship and support
If you have a trade system, in which the pilot not only gives you the advice on Forex, but also the ability to get closer to the success of the learning curve is shortened, the doubts and replied to strengthen confidence.
10. Looking for the voltage
Some of the other Forex traders might be the view that it is very exciting to trade in Forex market, but to me, Forex trading is boring, if I want to be profitable and stress free
1. Looking for quick and easy Money
I must stress that foreign currency is not breaking the system quickly. Achieving consistent results of the Forex trading is intense. This requires a bit of Forex training, patience, abuse, feelings, etc. you get a successful world currency.
2. Looking for the Holy Grail
I have people asked me, 'What is the best Forex trading system around? " There is no such trade currency systems. Many Forex traders spend years trying to find the Holy Grail foreign exchange trading activities, but could not find one. The main reason is the Forex market changes in ikinen moment.
3. INSUFFICIENT Legal Education
One of the reasons why Forex traders do not, therefore, that they do not have the right to education. Some people who were not even open a Forex trading Forex educates themselves about the book or the currency. Need some koulutuslautakunta Forex Training, Forex course, Forex trading, and then the preparation of a mentor for you.
4. Misbehavior
Discipline is so important to fx trading, that he collected the rewards you can actually, if it is followed, and it could be translated into something Forex trading account, where the lack of it.
5. Lack of Patience
Forex traders chase the price, because they do not want to leave a golden trading opportunity. The currency, there is no such issue as a great opportunity for me, because each of Forex trading on the settings are equally important.
6. No Money Management
Most Forex traders Forex trading risk entirely forgotten. They only think about how much they win, and never plan for the worst. Cash Handling Services to the risk of any trade restrictions, so that you can trade tomorrow, next week, month and year.
7. Lack of control Emotions
Perfektionisti be next on your Forex trading scheme. Pysykää quiet as lost trade, you know, that there is an endless opportunity to earn the opportunity to win one back. Do not let ahneus having you!
8. Having Unrealistic expectations
People are forced to fx trading paradigms, they are successful and earn tons of cash, from $ 1000, and after that to $ 100 000 a very short period of time. You know why this is not true, if you are receiving the free ebook Forex.
9. Lack of Mentorship and support
If you have a trade system, in which the pilot not only gives you the advice on Forex, but also the ability to get closer to the success of the learning curve is shortened, the doubts and replied to strengthen confidence.
10. Looking for the voltage
Some of the other Forex traders might be the view that it is very exciting to trade in Forex market, but to me, Forex trading is boring, if I want to be profitable and stress free
WINNING FOREX
It was not easy but we did it, $ 1k to $ 100 thousand in the second demo and live account. Let's take a moment to celebrate and then down to business. There, that was long enough? Ok. Why are some people and make them give up or just painfully failed? I have narrowed it down to several reasons. Hopefully you can take a lesson from this article and impliment them into the trade.
1. Trade more than 1% per trade. It seems a little strange that the people who ultimately make $ 100k only risked a maximum of 1% of their capital in a trade? Well thats what all those who have been so. Trade is the number of fixed capital in the game if you lost the streak in the market. This is part of the important information to remember. Although the benefits you will lower the risk of people who, say, 10% of trade, long-term ability to remain in the game that much greater then 10% traders.
2. Trade more than 3 major currency pairs as well. There is no way to get around it, sometimes Forex can be risky and volitile market. Saturates Internet information about each major currency pair. Keeping track of more then 3 pairs of currencies will often leave the traders in the paralysis of analysis. Personally I have only 2-way trade and keep up-to-date on them. Being a leader 2 currency pairs are then far better to be a jack of all couples and master of none.
3. Are not lazy and keep learning. People change, and based on the market with their change. Forex changes all the time,n what the currency, what can not change the favorite month to month. I am here not only to trade the news, I was that the people who make 100k $ succceeded always shaprpening their skills. This market can make you filthy rich so why wouldnt you spend time you can learn all about this? I never could understand the new traders who read some books about Forex and think that they have finished studying. If you want to make money in Forex remember this, the cost of trading forex is the Capital and Learning.
4. Only focus on one time. Last but not least here is something that we all may be as a new trader. But quickly you kick this habit the better off you will be. Let me give an example. If every day is a graph showing the trends up to defeat, but the 1 minute chart that shows a strong trend for a start up, if you only focus on the 1 minute chart you will lose a lot of chedder. I here is very simple, oversee the entire image at all times. Use 2 -3different time periods to chart a large image and then use your 1 trade to make the decision
ONLINE FOREX TRADING
Anyone can return to participate in the global foreign exchange market through online forex trading. World Wide Web and the Internet revolution has caused dramatic changes in how foreign exchange trading takes place. Before starting the online exchange, forex trading is done by most of the brokers make a posting and banking through phone, fax, or people. Trade only be done during working hours, as with all other activities related to the transaction, such as making deposits and take advantage.
Today, due to changes in network technology, the Internet has changed the foreign exchange market dramatically, to provide facilities such as credit cards, and marketing around the jam. Online trading is the currency in real time is done with the exchange rate continues to change in just a few seconds. Extracts given are accurate only to the time that happens, the different rate and may be shown at any time. Online forex trading when a trader carrying out the transaction, after the lock in the rate, this transaction is processed by the same time run a trade instantaneously.
Anyone who has an internet connection can participate in online forex trading. To do this, then the agent is usually required for entry into the trading platform and deposit funds for a smooth development of trade before the opening of each transaction. Requirements for registration vary depending on each platform; Register as an individual online trader May ask you to fill out a form or a long time, depending on the terms of the government. Some platforms also require meeting face to face and a hard copy of all documents required for registration. Individuals must declare that the funds deposited to facilitate the marketing does not come as a result of any unlawful act such as money laundering.
In addition to this initial filing, some trading platforms also require treatment or margin of safety. This is the additional amount needed to provide additional security and is usually frozen in the merchant account. Employers who engage in electronic transactions may also be asked to download and install the application software that is made specifically for the trading platform. As a result, online account access is limited to outside the terminal software is installed. However, there are some trading platforms, which can be accessed through a web-based interface that can be accessed from anywhere using a web browser. Trading platform will require traders to connect with the account details, after which they can make a deposit or to start trading
Today, due to changes in network technology, the Internet has changed the foreign exchange market dramatically, to provide facilities such as credit cards, and marketing around the jam. Online trading is the currency in real time is done with the exchange rate continues to change in just a few seconds. Extracts given are accurate only to the time that happens, the different rate and may be shown at any time. Online forex trading when a trader carrying out the transaction, after the lock in the rate, this transaction is processed by the same time run a trade instantaneously.
Anyone who has an internet connection can participate in online forex trading. To do this, then the agent is usually required for entry into the trading platform and deposit funds for a smooth development of trade before the opening of each transaction. Requirements for registration vary depending on each platform; Register as an individual online trader May ask you to fill out a form or a long time, depending on the terms of the government. Some platforms also require meeting face to face and a hard copy of all documents required for registration. Individuals must declare that the funds deposited to facilitate the marketing does not come as a result of any unlawful act such as money laundering.
In addition to this initial filing, some trading platforms also require treatment or margin of safety. This is the additional amount needed to provide additional security and is usually frozen in the merchant account. Employers who engage in electronic transactions may also be asked to download and install the application software that is made specifically for the trading platform. As a result, online account access is limited to outside the terminal software is installed. However, there are some trading platforms, which can be accessed through a web-based interface that can be accessed from anywhere using a web browser. Trading platform will require traders to connect with the account details, after which they can make a deposit or to start trading
FOREX SCAM
A Forex (or FX) fraud is a trading system to defraud merchants to convince them that they can expect to make a large profit, the trading market change. Currency trading, "the fraud du jour," from the beginning of 2008, according to Michael Dunn of u. S. Commodity Future Trading Commission.
[1] But: "The market has long been affected by swindlers preying on the gullible," said the New York Times
[2]. "The average individual-market currencies victim loses about $ 15,000, according to CFTC records," says the Wall Street Journal.
[3] The North American Securities Administrators Association says that "off-exchange forex trading by retail investors is at best very risky and, in severe cases, pure fraud.
[4] "In a typical case, investors may be promised tens of thousands of dollars profit in just a few weeks or months, with an investment of only $ 5,000. Often, the investor with the money is never really in the market through a legitimate dealer, but simply divert - stolen - for the personal benefit of artists. "
[5] In August 2008, the CFTC, a special tasks force to deal with the growing changes fraud. "
[6] The Forex market is a zero-sum game
[7], which means that any trader wins, another loses, except that the commissions and other transaction costs are the results of all traders, the forex techniques of a negative sum "game . This fraud could agitated for customer accounts, to the effect of commissions, selling software that is supposed to provide customers in large profits,
[8], are not properly managed "Administrator account",
[9], false advertising,
[10 ] Ponzi schemes and win betting fraud.
[11] Furthermore, it refers to the retail forex broken, indicating that the negotiation is to change a low risk, high profit investment.
[12] The u. S. Commodity Future Trading Commission (CFTC) which loosely regulates the U.S. market change has increased the amount of unscrupulous activity in the bank not to change industry
[13]. An official of the National Association was quoted future
[14] with the words, "Retail forex trading has deteriorated dramatically in recent years. Unfortunately, the amount of forex fraud has also dramatically ..." Between 2001 and 2006, the u. S. Commodity Future Trading Commission has processed more than 80 cases involving the expenditure of more than 23,000 customers lost the $ 350 million. From 2001 to 2007, more than 26,000 people lost $ 460 million in forex fraud. [1] CNN quoted Godfried De Vidts, chairman of the Financial Markets Association, a European body, with the words, "The banks have a duty to protect its customers and shall ensure that customers understand what they are doing
[1] But: "The market has long been affected by swindlers preying on the gullible," said the New York Times
[2]. "The average individual-market currencies victim loses about $ 15,000, according to CFTC records," says the Wall Street Journal.
[3] The North American Securities Administrators Association says that "off-exchange forex trading by retail investors is at best very risky and, in severe cases, pure fraud.
[4] "In a typical case, investors may be promised tens of thousands of dollars profit in just a few weeks or months, with an investment of only $ 5,000. Often, the investor with the money is never really in the market through a legitimate dealer, but simply divert - stolen - for the personal benefit of artists. "
[5] In August 2008, the CFTC, a special tasks force to deal with the growing changes fraud. "
[6] The Forex market is a zero-sum game
[7], which means that any trader wins, another loses, except that the commissions and other transaction costs are the results of all traders, the forex techniques of a negative sum "game . This fraud could agitated for customer accounts, to the effect of commissions, selling software that is supposed to provide customers in large profits,
[8], are not properly managed "Administrator account",
[9], false advertising,
[10 ] Ponzi schemes and win betting fraud.
[11] Furthermore, it refers to the retail forex broken, indicating that the negotiation is to change a low risk, high profit investment.
[12] The u. S. Commodity Future Trading Commission (CFTC) which loosely regulates the U.S. market change has increased the amount of unscrupulous activity in the bank not to change industry
[13]. An official of the National Association was quoted future
[14] with the words, "Retail forex trading has deteriorated dramatically in recent years. Unfortunately, the amount of forex fraud has also dramatically ..." Between 2001 and 2006, the u. S. Commodity Future Trading Commission has processed more than 80 cases involving the expenditure of more than 23,000 customers lost the $ 350 million. From 2001 to 2007, more than 26,000 people lost $ 460 million in forex fraud. [1] CNN quoted Godfried De Vidts, chairman of the Financial Markets Association, a European body, with the words, "The banks have a duty to protect its customers and shall ensure that customers understand what they are doing
Choose Your Forex Trading Platform Wisely
Forex option trading system that is easy for each user provides more than convenience. When there is a serious matter of foreign exchange transactions within the time really is money, and not just some empty buzz word. Let us begin to consider other important advantages that forex trading platform, which makes a major marketing success.
# 1 Accuracy:
for forex trading platform In foreign currency trading takes place in real time while every second exchange rates quickly change. When a trader to carry out a forex trading and locks is that the exchange rate should be recorded immediately. As mention only the precision at this time seems the delay in processing trade to pay merchants for lost revenue. The forex trading platform software should access servers for the most accurate exchange rates available. Web browser based trading platform is easy to trade forex from any location worldwide, since the Internet does not need to download the software. This ensures that the stop loss and profit have become just like you (the proposed method of forex trading).
Security # 2:
Is forex trading platform Naturally we have to say that any forex trading platform you should decide on high security to protect your account and private information. Then we can fund the activities of the safe range of options including credit cards, the Western Union and paypal if needed.
# 3 Integrity:
Is forex trading platform A forex broker providing transparent services is a viable option any forex trader. The total cost for the trading platform and trading account in general should be notified in advance. Integrity means you do not need to pay any hidden fees or commissions on deposits and withdrawals. The bank charges, which are part of the company as forex traders do not enter your forex trader. Attention every service provider does not provide sufficient firewall protection and a kind of advanced SSL for user authentication and data transfer. Forex Trading System can seem overwhelming if you are new to forex, you should forex charts to help you along the way. while you develop a forex trading system, you can use the demo accounts that many trade brokers provide. This is mainly to provide free forex charts as part of a system demo
# 1 Accuracy:
for forex trading platform In foreign currency trading takes place in real time while every second exchange rates quickly change. When a trader to carry out a forex trading and locks is that the exchange rate should be recorded immediately. As mention only the precision at this time seems the delay in processing trade to pay merchants for lost revenue. The forex trading platform software should access servers for the most accurate exchange rates available. Web browser based trading platform is easy to trade forex from any location worldwide, since the Internet does not need to download the software. This ensures that the stop loss and profit have become just like you (the proposed method of forex trading).
Security # 2:
Is forex trading platform Naturally we have to say that any forex trading platform you should decide on high security to protect your account and private information. Then we can fund the activities of the safe range of options including credit cards, the Western Union and paypal if needed.
# 3 Integrity:
Is forex trading platform A forex broker providing transparent services is a viable option any forex trader. The total cost for the trading platform and trading account in general should be notified in advance. Integrity means you do not need to pay any hidden fees or commissions on deposits and withdrawals. The bank charges, which are part of the company as forex traders do not enter your forex trader. Attention every service provider does not provide sufficient firewall protection and a kind of advanced SSL for user authentication and data transfer. Forex Trading System can seem overwhelming if you are new to forex, you should forex charts to help you along the way. while you develop a forex trading system, you can use the demo accounts that many trade brokers provide. This is mainly to provide free forex charts as part of a system demo
CHARACTERISTICS OF FOREX MARKET
Forex market is 24 hours. It starts from Sunday 5PM EST to Friday 4pm EST. Characteristics of market.Forex Forex market is 24 hours. It starts from Sunday 5PM EST to Friday 4pm EST. Forex Trading begins in New Zealand, followed by Australia, Asia, Middle East, Europe and America. United States and United Kingdom account for more than 50% of market transactions. During each day, total return is determined by the number of markets that are open and hours of each of these markets overlap one another.
Forex market volume of transactions remains high throughout the day, but peaks highest when the Asian market (including Australia and New Zealand), Europe and the U.S. market are open simultaneously. In particular, there are two times when two of the major markets overlap during trading hours - between 2 pm and 4 pm EST (Asia / Europe) and from 8am at 12 EST (European / N. American).
If you want to find a large number of profitable transactions, focusing on the hours when the markets tend to make their biggest moves, ie, large overlap during these markets, which therefore are Generally the best times to trade
Forex market volume of transactions remains high throughout the day, but peaks highest when the Asian market (including Australia and New Zealand), Europe and the U.S. market are open simultaneously. In particular, there are two times when two of the major markets overlap during trading hours - between 2 pm and 4 pm EST (Asia / Europe) and from 8am at 12 EST (European / N. American).
If you want to find a large number of profitable transactions, focusing on the hours when the markets tend to make their biggest moves, ie, large overlap during these markets, which therefore are Generally the best times to trade
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