Wednesday, 29 February 2012

Factors Influencing a Currency Pair Exchange Rate

Introduction
The exchange rate refers to the value of the US dollar against the values of currencies of other countries. Such a rate helps determine how much we pay for imported goods and services and how much we receive for what we export, among other things. When the value of the US dollar drops, imports become more expensive, and we tend to reduce the volume of our imports. Simultaneously, other countries will pay LESS for some of our products and that will tend to boost export sales. If imports and exports are a substantial part of a country's economy, as is the case with Canada, the exchange rate plays a particularly important role in our economy. The exchange rate between two countries' currencies is particularly important if the two countries are heavily involved in trade.
What factors affect an exchange rate?
A country's exchange rate is typically affected by the supply and demand for that country's currency in international exchange markets. This is typically known as a floating exchange rate. If demand, for say dollars, exceeds supply, then the value of the dollar will go up. If however, the supply of dollars exceeds demand, then its value will go down. A huge amount of money is bought and sold on international exchange markets for many different currencies.
Several factors influence the supply of, and demand for, a given country's currency.
If INTEREST rates are HIGHER in, say, the US than in other countries, then investors WILL choose to invest in the US, increasing demand for the dollar, provided that the expected rate of inflation is not higher in the US than among our trading partners. If INTEREST rates are LOWER in the US than in other countries, investors will choose NOT to invest in the US, decreasing demand for the dollar.
If the US INFLATION rate is HIGHER, investors are LESS likely to prefer the US -even with higher interest rates- because of the expectation that the value of the dollar will be ERODED by inflation. If our INFLATION rate is LOWER, investors are MORE likely to prefer the US, because there will be NO expectation that the value of the dollar will erode.
Trade balance also has an effect on a country's currency. If world prices for what a country exports rise in comparison with the cost of that country's imports, that country will be earning more for its exports than it pays for its imports. The more demand there will be for that country's currency, the better the deal becomes. If investors are confident that the US economy will be strong, they will be MORE likely to buy American assets, pushing UP the dollar's value. If investors are not so confident that the economy will be strong, they will be LESS likely to buy the country's assets, pushing the dollar's value DOWN.
Joshua Kunken is Chief Currency Analyst for ForeignMarketWatch.com

Forex Market Overview

"FX" is an abbreviation of "forex" or "foreign exchange." Foreign exchange is the largest and most liquid market in the world trading approximately $2 trillion every day (that's over 30 times the daily volume of NASDAQ and NYSE combined). The forex market is a cash interbank/interdealer market. In simplest terms, this means the foreign currencies traded in the forex market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. The forex market is not a "market" in the traditional sense due to the fact that there is no centralized location for fx trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide. CFOS/FX clients can trade through online forex trading platforms and/or over the telephone directly with a forex broker on our trading desk.
Until recently the forex market has not been available to the small speculator. The large minimum foreign currency transaction sizes and financial requirements left this market in the hands of banks, major foreign currency dealers and the occasional large fx speculator. Now, with the ability to leverage large positions with a relatively small amount of capital (margin), the forex market is now more liquid than ever and available to most investors.
Five major currencies dominate trading in the foreign exchange markets: the U.S. Dollar, Eurocurrency, Japanese Yen, Swiss Franc and British Pound. The foreign currencies are traded in pairs, also known as crosses, in the forex spot market. For example, purchasing the EUR/USD in the forex spot market simply means the purchaser is buying the Eurocurrency and selling the U.S. Dollar in anticipation of the Eurocurrency gaining value in relation to the U.S. Dollar. Similarly, the seller of a EUR/USD contract would be selling the Eurocurrency against the U.S. Dollar. Official figures show the U.S. Dollar is on one side of 83% of all spot foreign exchange transactions. The "spot" market simply refers to a currency contract with a prompt valuation date requiring settlement within two business days.
Over the past several decades, an increase in international trade and foreign investment has made the economies of the world more interrelated. New opportunities for investors have also been created with the fall of communism and the dramatic growth of the Asian and Latin American economies. Today, supply and demand for a particular currency is the driving factor in determining exchange rates. Many factors such as regularly reported economic figures and unexpected news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency. It should come as no surprise that many shrewd investors have already taken advantage of the fluctuation in exchange rates to profit handsomely.
John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Option Brokerage

Forex Trading Robots - 3 Reasons Most Destroy Your Equity Quickly

There are numerous Forex trading robots for sale and they all promise big gains but the reality is 95% or more will wipe your equity out and do it quickly. There are very few that work but if you want to find one that does and enjoy currency trading success, read this article.
Reason 1
The Track Record Is Simulated
This applies to almost all the ones you see online. They all claim big gains but the reality is, the track record is a paper simulation and not real money at all.
Always check for the warning below on any forex trading system and if you see it - forget it.
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Anyone can make money in hindsight, knowing the closing prices but that's not the real world.
Personally, I am not too interested in paper money; I like cold, hard, crisp real dollars.
Reason 2
The Track Record Is To Short
I was amazed the other day to see someone presenting a month of trades as his track record - what does a month of gains prove in forex trading?
Nothing.
The time period is way to short.
If you are judging a track record, look over 2 - 3 years, so you have a variety of market conditions and can judge it properly.
Forex trading is a long term game and many of the best traders in the world, have drawdowns of weeks or even months before recovering.
In terms of track record its - the longer the better.
Reason 3
Confidence Issues
It sounds easy to simply plug a forex robot in and trade it however its anything but, as you have to be disciplined and keep applying the trading signals, even when the system losses.
Many traders have good systems, but simply cannot apply them, because they don't have confidence in the system.
To obtain confidence, you can't follow a system blindly!
You need know how and why it works, so that you can follow it with discipline.
Don't buy systems where the rules are not revealed ( "black box systems") and make sure you know why the system will make you money longer term.
Big profits in Less than 30 Minutes a Day!
If you follow the above tips when choosing a forex trading robot, you can find one you can have confidence in and gives you the opportunity to make big forex gains.
Take your time and make sure, you find one that is proven and you have confidence in, you're then all set to make great profits in less than 30 minutes a day.
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info and a course to Learn Currency Trading visit our website at: http://www.learncurrencytradingonline.com.

A Short Introduction To Fibonacci Forex Trading

Fibonacci forex trading is the basis of many successful forex trading systems that are used by a great number of professional forex traders around the world. Trading systems based on this “numbers sequence” are so successful that billions of dollars are earned every year by traders following its rules.
Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it’s formed by a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13 ...But in the case of currency trading what is more important for the forex trader is the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc.
Forex traders can greatly benefit from this mathematical proportions due to the fact that the oscillations observed in forex charts, where prices are visibly changing in an oscillatory pattern, are known to follow Fibonacci ratios very closely as indicators of resistance and support levels; maybe not to the last cent, but so close as to be really amazing.
Additionaly, one important thing to remember is that Fibonacci analysis is a leading indicator. What this means is that by learning the correct Fibonacci trading tactics and techniques you will know how to determine the most probable turning points in the market before the price gets there. Yes, you can know what the forex market will do in advance!
For example, one of the widely used Fibonacci ratios is the 0.382 ratio. As it can be easily seen on any forex chart, the currency prices are continually changing and they follow an oscillatory pattern with peaks and valleys. The limit of the peak is usually called a resistance level while the valley is usually called a support.
In order to find the 0.382 ratio level what you do is, first; measure the size of the drop or rise over your time of interest. Once you have that value you multiply this by 0.382. Now depending on what you are looking at, a rise or a drop on the price of the particular “currency pair” you are trading, you will add the last value you calculated to the total drop or subtract the value from the total rise.
Once you have the value you can then start planning the strategy you will follow in order to make a high probability profit from this valuable information. For the 0.382 ratio level calculated for a recent rise in the “currency pair” exchange price, your calculated level will be a highly probable support and for the case of a level calculated for a recent drop of the prices your level will be a highly probable resistance.
Many people tries to make this analysis overly complicated scaring away many new forex traders that are just beginning to understand how the forex market works and how to make a profit in it. But this is not how it has to be. I can’t say it’s a simple concept but it is quite understandable for any trader once he or she has grasped the basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will help you to improve the accuracy of the entry and exit point for every particular trade.
For a complete Fibonacci Trading course that will teach you how to pre-determine the highs and lows as the Pros do, you can visit:
=>> http://FibonacciNumbersTrading.googlepages.com

Forex Killer Software - Does the Trading System Work Or Not?

There are literally hundreds of forex expert advisors (EAs), forex trading signals and forex trading systems on the internet for sale or lease. I have purchased, used, and tinkered with many of the more popular ones both for myself as an investor/trader and as part of my R&D for my internet business. In this article, I'm only going to skim the bottom line about the Forex Killer Software. Forex Killer is a trading software developed by Andreas Kirschberger that uses statistical analysis to come up with trades that give you the best probability of profits. Because of all the benefits, I recommend this software.
The world of Forex trading is becoming more mainstream as an investment vehicle for obvious reasons. You can make a fortune in Forex. And, to be fair and honest about it, I'm also required by the National Futures Association (NFA) to warn you that you can lose every penny of your risk capital in Forex as well. Don't invest with money that you can not afford to live without. Many investing novices will enter into Forex trading without any prior ability to read technical charts, lacking in money management control, and the lack of discipline to control their fear and greed when trading Forex. They often discover these short comings after it's too late as in the "school of hard knocks."
One of the other problems that novice forex traders face is deciding when to enter a trade. After all, if they lack all of above mentioned skills, they will soon enough lose a major portion of their risk capital.
This indecision as to whether the signal is "right" or "wrong" causes an considerable level of stress and uncertainty which can cause individuals to otherwise miss highly profitable trades! In other words, they are not sure what they are doing and they lack the control and clear mind.
Here is how this software can help in this area until you gain some experience. With the Forex Killer software, you get a automatically completely program calculated solution for that trade you are considering at that point in time for that specific currency pair which is unbiased. The Forex Killer software will generate the signal and the probability in percentages for that trade. Example, Buy EUR/USD - 80% probability of success. Obviously, the lower probability below 70% is not worth the risk and you simply wait for the next home run signal.
The Forex Killer software is what is called a mechanical trading signal generator that removes any uncertainty from taking a trade even if you don't know what you are doing. Hence, this means you no longer will have to wonder "I can't believe I missed that trade" that broke out strongly into mega pips profits. There's no more time consuming guessing whether you should take a trade because your decision to make the trade or not is completely and totally generated by the Forex Killer software. It's unemotional, it's unbiased, and it can be highly profitable for you some where in the range of 7 out of 10 trades. Yes, there are little secrets that I have discovered and employ to increase the profitable outcomes even more.
Whether you are a complete novice, a forex day-trader or position trader with years of experience, the Forex Killer software works great in finding those profitable trades to take and which ones to avoid. With the Forex Killer software probability calculator, you can decide to take only trades that have a +70% or higher odds of being profitable! By doing so, you are astutely being guided by using the Forex Killer statistical analysis programming to put the odds in your favor. It means you ignore some signals generated (<70% odds). This software is not just for novices. If you have technical chart reading skills, you can make even better decisions based on your own filters or indicators you have. However, the Forex Killer software already takes a major load of finding profitable trades off your back!
I've found that the Forex Killer software works for me and does remove emotion and guesswork from forex trading when used correctly as part of your investment tool shed. You can make hundreds of pips a week or month depending on how much you trade. With your purchase of the Forex Killer software, you get upgrades FREE for life and the customer service and support is fantastic. I've already upgraded my version twice, with improvements in the software each and every time.
What is the Forex Killer Trading System? Just check the trading results that Andreas and the Forex Killer team make every month!
The Forex Killer software has personally helped me a great deal with my forex and stock trading. Yes, the Forex Killer software can be used to help trade stocks, indexes and ETFs as well. That is one of several secrets I have discovered. Wishing you all the "best of good buys!"
To learn more about The Forex Killer software, please click here: http://www.forex-killer-secrets.com

Two Currency Trading Methods- Which Will You Choose?

The two main currency trading methods we are going to outline in this article are:
  1. Using Leverage
  2. Taking Ownership
Once a reasonable amount of experience and knowledge has been gained in the currency trading market (FOREX) it can be very profitable to combine both methods. Here are the main characteristics of each:
1. Using Leverage
Beginners in currency trading will typically find an online broker, open a free demo account, read a manual or take a tutorial, and start practicing speculating skills based on technical indicators.
Through the online broker they are able to use leverage so if they eventually decide to open a mini account, a 100:1 leverage means that with $1 they can participate in the market with $1,000. If in time they graduate to a regular account, 1 trading lot of $10 can be leveraged by the broker so $100,000 can be traded for another currency.
Many newcomers to currency trading concentrate on getting small profits, getting in and out of the trade quickly, usually taking no longer than a few hours at the most. Day trading necessitates learning how to read candle charts, recognizing patterns, and anticipating where price is likely to go.
As many new traders find when they have been currency trading for a while, it is possible to have a succession of losing trades, and without proper equity management, their account can be blown necessitating another cash injection to allow them to trade again.
A series of blown accounts can add up and many view this as part of their currency trading education expenses.
Alternating between a demo account and a mini account can reduce the cost so the new currency trader can regain confidence in the demo before going back to live trading again. Eventually, the hope is that the trader will develop a consistent trading pattern so more trades are won than lost so their equity gradually increases.
2. Taking Ownership
This method of currency trading still requires a learning curve as one has to anticipate the market moves and recognize chart patterns. Unlike using leverage however, the risk of financial loss is smaller and you are not in danger of 'blowing your account.'
It simply means you create a portfolio with whatever funds you wish to commit to currency trading and open bank accounts in each of the currencies you wish to trade.
For example, you may wish to open bank accounts for any of the following:
  • US Dollar
  • British Pound
  • European Euro
  • Japanese Yen
  • Swiss Franc
Of course, more substantial sums of money are needed to make this method of currency trading worthwhile after taking into account bank transfer charges.
However, if you have x,000 dollars or euros or any of the big five currencies to commit to currency trading this method is certainly worth considering.
After studying technical indicators and learning about support and resistance and Fibonacci calculations, you will soon recognize key patterns on the higher time frame charts. Using daily and weekly charts will bring to your attention currency pairs that are in an up or down trend or pairs that appear to be topping out or reaching a strategic high or low.
If for example the British pound reaches a high against the dollar that is the highest it has been for many years, there is a reasonable possibility that it will not stay at that level. Taking a portion of your equity and buying dollars would make good sense. Within a few days or weeks depending on your profit targets, the pound is like to come down at which time you sell dollars and buy pounds.
For example, with GBP10,000 you purchase dollars as the pound touches 2.000 against the dollar. You now own USD20,000. Within a few days the pound pulls back to 1.9800 at which time you sell dollars and buy pounds giving you GBP10,101 less bank transfer fees.
This is just a quick example of how the ownership method of currency trading works. Of course, the currency may not go in the direction you anticipate in which case your equity will be reduced. You will then need to hold that currency until such time it increases in value. Alternatively, you may see another opportunity involving a different currency cross and be prepared to take a loss in order to use that capital in a new trade.
Once currency trading skills have been acquired, the ownership method can be quite profitable, especially as your equity increases. This method requires patience as ideal setups may not appear very often. But when they do you can commit a reasonable part of your portfolio to the trade with a high probability you will profit.
Currency Trading Is High Risk
Currency trading is viewed as a high risk enterprise, and with good reason. A very high proportion of those who attempt to trade the Forex fail and give up in time, up to 95% according to some authorities. Other veteran traders suggest it can take from a few months to 3 years to gain the necessary skills - quite a learning curve!
Those who have the psychological stamina and determination to ride the bumps, accept the losses, and keep coming back until they are able to make consistent profits, are generously rewarded with a changed financial status.
To learn how to preserve your mental and emotional resources in addition to your account equity click here:
http://www.vitalstop.com/Forex/Advisor/forex-day-trading-mental-equity.htm
If you are looking for a comprehensive Forex education with mentoring from professionals check this:
http://www.vitalstop.com/Forex/education.html
For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:
http://www.vitalstop.com/Forex/tools.html

Anyone Can Learn Swing Trading

When I first came into Forex trading I like many others was looking for the ways to make quick cash. That's why I thought that shorter-term trades like scalping are the best way to do it. Later I found out that longer term trades like swing trades work best for me. I believe it's also the easiest way to start trading currencies profitably and any beginner should start with swing trade technique. The long-term swing trading has quite a few advantages over the short-term techniques.
Just to name a few of them these advantages are:
1. Anyone trading part time can start with this techniques
Indeed swing trading techniques requires much less time to monitor a trade. For a daytrading one needs to baby-sit his position continuously. Swing trading technique doesn't require a lot of time. I am not saying you need to spend less time on studying the market but once you enter the trade you will spend much less time monitoring it
2. Less spreads to pay.
The more trades you execute in a short period of time the more you have to pay in spreads. Let's say you execute 10 trades with a spread of 3 pips then you already lost 30 pips. That's why it's much harder for any one who is trying to become profitable to learn short time trading techniques. It is much easier to start with a techniques that requires less number of trades but has a high profit target.
3. Lower level of noise on the charts
Anyone can notice that the higher timeframe of the chart the more obvious the price patterns. It is very hard to spot a right trading opportunity based on the price patterns on 1-minute charts since those patterns are buried in noise. On the other hand someone who uses daily or weekly charts can easily see those patterns since the level of random noise is very low.
4. Less emotional pressure.
The more time you have to monitor your trade the more challenging it becomes to your emotional state. I think you are familiar with ups and downs of emotional energy when you observe price going against and in favor of your open trading position. This kind of emotional roller coaster can quickly wear out your energy.
I believe profitable trading is not an easy task. But many people start with the trading techniques that already quite challenging for an unprepared psychology. In my opinion it's much easier to start with a swing trading method for the reasons I outlined above. I also believe that anyone can learn swing trading more easily than any day trading method or any scalping method. However it does have it's own challenges. Anyone who wants to learn swing trading must develop patience. This type of trades may last for a few days. In some cases you may wait for a trading setup for a few days without having any trade. That's why patience is the key in learning swing trading technique.
Albert Schmidt is a part-time currency trader. After quite a few months of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trades.

Can a Currency Software Trading System Make Me a Profitable and Rich Forex Trader?

A currency software trading system can not on its own make you a successful FX trader, but it certainly can facilitate the process. If you have little or no knowledge of the Forex markets the first part of the equation of becoming a profitable Forex trader is to learn Forex trading. This can be accomplish by taking one or more of the exception online currency trading courses available today. Before we go any father, if you are not willing to invest in yourself, your education and the tools you will need to properly and fruitfully trade the Forex markets then maybe you should find something else to do.
The principle reason novice trader fails when entering the Foreign Exchange Markets is due to lack of knowledge. I am not sure you are aware of the fact, that ninety five percent of the private investors entering the markets lose money and drop out quickly. That is a staggering percentage and makes one wonder why anybody would ever attempt to beat it. Because there are other staggering percentages that also correspond to the Forex markets.
The first being that even a novice trader has a fifty percent chance of selecting a correct trade. A currency can only go in two directions, up or down. I am sure you now are wondering why ninety percent of the beginning traders drop out and lose money? It can be all summed up in one word, MARGINS. The margins provided by the Forex brokerage firms can run all the way up to two hundred percent, which is so completely over the head of a new trader and should never be utilized at any where close to that percentage. But the novice traders continue to use them and then wonder why after making five trades profitably there sixth trader wipes there account out completely.
In order to make money in the currency markets one requires the tools to process the huge amounts of data that will be coming at them. This can be acquired by purchasing a currency software trading system. The next aspect that must be faced is knowledge of the markets. This also is readily available through online Forex trading programs. If one does not understand the basics such as making margins work for them as opposed to destroying them, then they really have no chance of making a profitable entry and sustainable career trading the currency markets.
We have researched, tested & reviewed 100s of Forex Courses, Software Systems and Brokerage Firms which we only list our TOP 10 to help you LEARN FOREX TRADING. For 100s of FREE FOREX TUTORIALS please visit LEARN CURRENCY TRADING. Good Luck! I look forward to seeing you on the trading floor making money! William R. Alheim, Jr., CPA, MA

Monday, 27 February 2012

Information For Currency Traders

There is some general information for currency traders that need to be understood. It is often the small little things in this business that determine the large and profitable incomes. You need to build your trading business on a solid foundation and here is what you need to know.
The time of the day you trade can be the difference between cold calculated profits and pure gambling. There are basically two times to trade; peak and off peak. The peak time is the best. During this time the highest volume of trades are happening. Since the volume is so high, a bank or large firm aren't in the position to effect the outcome of a currency. What we're left with is market forces in control. During off peak time, the volume is much lower and banks have a much better position. Since volume is low, a big trade by a bank can push a currency in a totally different direction. If you're trading during this time, you could do stellar analysis of a currency and still fail. Stick to the peak times.
The next thing you need to is do a full assessment of yourself. Are you an emotional person? Do you get worked up and can't calm yourself down? Are you always getting "gut feelings" about things? Do people think you have a gambling problem? This all needs to assessed. All these questions boil down to an emotional response. You're emotional if you're a gambler in denial. You're emotional if you get worked up and you're emotional if you get "gut feelings" about things. The last thing you want to do in currency trading, is getting all worked up or getting gut feelings about a specific trade. You want to be a person that makes trades by the numbers. Numbers don't lie and they're never emotional.
Lastly, you need to be able to determine trades that everyone is jumping onto. These are bad trades get involved in. Warren Buffet is one of the richest traders in the world and he got there by not following the crowd. You need to be able to determine when one trend is going to end and another is going to begin. Currencies go up and down. You do not want to buy currency when everyone else is doing it. You want to be able to find a currency that everyone doesn't want and it's at the point that pretty much everyone has done selling and people are looking to buy now.
I'm currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.

What is Online Paper Trading?

Online paper trading occurs when investors make use of paper credits to engage in live trading on markets such as the foreign exchange markets. These paper credits are mere tokens and are used in place of real money to give the investor a feel on how trading would be like with real money. Many online investment platforms offer investors a demo account, allowing them to engage in online paper trading. Losses and gains are negligible given the fact that the credits used for such trades are merely for simulation purposes.
Yet, the usefulness of online paper trading is aplenty. Novices and veterans of trading can greatly benefit from the use of online paper trading.
Online Paper Trading Benefits For Beginners
The fact that such trades do not require any real capital outlay means that they would be very much suitable for beginners who are learning the ropes of trading in a particular financial instrument. Online paper trading allows these novices to familiarize themselves with the various features of the real platform. These include the limit and stop loss functions, which are instrumental to a trader's success.
It would also allow beginners in the world of trading to develop healthy habits necessary for success in investing such as finding out more about the factors affecting currency movements before hitting the "buy" button. This is critical as most people tend to have the wrong mindset of treating the Forex market like a casino. Yet, in reality, it is these people who would often pay dearly as a result of their folly.
Online Paper Trading Benefits For Seasoned Traders
For the seasoned trader, online paper trading provides a useful avenue to put untried trading methods to the test. Feel that you have developed a method for greater trading success? Try it out on a demo account.
With paper credits, you only stand to gain as you would be able to evaluate the effectiveness of your strategy from a safe distance, without suffering from horrible losses should things go awry. The fact is, even professional investors make use of online paper trading as a means to refine their trading strategies and develop skills for greater returns on their investments.
Bringing The Learning Of Paper Trades To Real Trades
In any case, it is important for one to adopt the right mentality in order to derive the most out of online paper trading. It simply would not help if you tell yourself that you are only using "false money" which would allow you to take reckless risks when making a trading decision. The key to investing is to take calculated risks, not reckless risks.
Online paper trading allows you to try out strategies which are based on calculated risk, to enable you to improve the odds of success of the method which you are trading with. Online paper trading will take you further if you are willing to put in that added commitment of constantly evaluating your online paper trades. This would allow you to learn fast, to enable you to develop sophisticated investing strategies over time without risking your neck.
Online paper trading provides a useful tool for investment success. Be it the novice or seasoned trader, the ability to make good use of online paper trading as a learning tool would definitely guarantee you success and high returns in your investments.
John Callingham is an authority on Forex Trading, providing valuable advice on how you can learn about forex currency trading. Click Here to gain FREE access to his Forex Trading secrets when you sign up for his Forex Trading newsletter.

Saturday, 25 February 2012

How to Make Money Forex Trading Like a Pro Trader

Trading like an expert trader is not easy, and because it is not very few people actually make money forex trading. So how can you make money forex trading like a pro if have not ever been a trader in your life? Well, the options are simple:
1) Become an expert trader. This one is perfectly viable, only it will take you a good deal of studying and a lot of practice in order for you to really start making money forex trading.
2) Start forex trading with the help of a software. This option will not demand for you to become a pro trader, but will enable you to perform like one.
As you can see, if you are not an expert trader you have to either get education or arm yourself with a reliable forex software in order to properly manage your trading operation.
There are a few good forex trading courses you can get online, which can guide you in a very intuitive way through various effective strategies that you can implement like a pro trader within a relative short period of time.
On the other hand, there are forex trading software with the ability to analyze the market in real time 24 hours per day, 5 days a week. These little robots -as some call them- can help you perform like an expert trader within minutes of you downloading them.
You will find some forex trading software that work by providing you with signals for your to enter and exit the market thus allowing you to place a profitable trade, whereas you will find others that will make your role as a trader virtually nonexistent yet very profitable.
Indeed, there is another species of forex trading software with the ability not only to analyze the market and spot good trading opportunities, but also with the ability to place the trades all by themselves 24 hours per day, meaning that they can take advantage of entry points that you would otherwise miss as the human trader you are.
Therefore, if you use a fully automated forex trading software, the trader will basically be the robot instead of you, making it possible to create a stream of truly passive income online.
Forex trading is definitely a great business that you really can profit from, but you need to arm yourself with reliable tools and educational resources so you can manage your account like pro trader.
Find insightful information about various forex trading-trader tools and resources at: The Forex Trading.

Forex Trading Tips That Can Increase Forex Business

No one on earth can deny when he is offered a chance to become a millionaire. This can be turned into reality only when the stock market makes its debut. But it is always an uncertain thing for a stock market analyzer to expect an ever-increase in the market trends. Market analysts state that the stock market tends to rise or decline based on the activities performed by the investors. But one can always obtain good profits if the analysis of the market is done carefully.
Getting hold of the stock market just before it falls down can make an investor to remain in the safe grounds. But the truth is that there aren't any key or principles that can help an investor to analyze the market's behaviour. But one can always take few safety measures and strategies in order to keep himself from losing his investments.
Fundamental indicators can be your help to analyze the market's behaviour. A valid and efficient indicator can work at all periods in all markets. The indicators help you determine the good entry points into the market including the aspects that determine the best 'sell' and 'buy' positions. Also an indicator helps you to get assured of the changing trends including the resistance and support levels. These trends are nothing but the simple price fluctuations that are predictable but not random.
Though you have good indicators to help you analyze the market's behaviour, you also need a good Forex trading strategy that can well use these Forex indicators in determining the market and making the appropriate calculations about it. A good Forex trading strategy is the key to a successful online currency trading (or Forex trading, in other words). Profit or loss in your Forex business is majorly determined by the strategy that you employ in your Forex trading.
Though there are many Forex trading strategies out there in the market, all of them can be classified into two broader categories. Any Forex trading strategy can either fall under profit maximizing category or under risk minimizing category. Leverage can be considered as the popular form of profit maximizing strategy as it helps an investor to trade in the Forex market with more than what he has in his account. On the other side, stop loss order can be considered as the popular form of risk minimizing strategy. With the help of this strategy, one can limit their losses by imposing limitations on their trading price.
For more information on Forex Currency Trading visit our site: All You Need to Know About Forex Trading Market.

Learn Online Forex Currency Trading

Online Forex currency trading is a fast business, and if you do not have the proper training, it can be very easy to lose your money in it. Make sure you have all the right information and skills before you even begin buying and selling currencies. Where and how do you get the right education? Here are some ideas.
Learn Online
Taking online currency trading courses is the most cost-effective and convenient way to learn the ropes of the industry. Many currency trading websites offer potential traders like you free tutorials and demos on how to get started in online Forex trading. Some websites ask for a minimum membership or tuition fee before they grant you access to full-scale tutorials.
What will you learn, exactly? Most courses let you in on basics such as day trading, position trading, and swing trading. You will also learn fundamental investment theories specifically for currencies. Some sites even offer tailor-fit, one-on-one trader mentoring. Instruction is still remote, but you are usually assigned a mentor (a proven successful trader) who will give you customized training materials and simulations.
Buy CDs or Books
There are many "complete home study" CDs and books that deal particularly with currency trading. These materials usually cover all essential aspects of trading and taxes, and give valuable insight on making a living as an online trader.
Read the Newspaper
The value of a country's currency is greatly affected by its political and economic situations. You need to know the latest country-specific developments in order to make sound trading decisions. Staying on top of world news by reading the newspaper, watching cable television, or subscribing to an online news portal immediately gives you a trading advantage. Get the latest on inflation rates, changes in government, and tax laws in the countries of the currency you are trading so you can make intelligent moves.
Online Forex Trading provides detailed information on Online Forex Trading, Learn Online Forex Currency Trading, Online Forex Trading Systems, Online Forex Trading Reviews and more. Online Forex Trading is affiliated with FX Currency Trading.

Friday, 24 February 2012

Forex Trading Software Can Be Dangerous For Your Account

Many new traders are looking for a simple solution to make profit in Forex. Trading software become more and more popular lately. I see there are two kind of software. One shows the trading opportunities on the chart. It can be something very simple like combination of moving averages. Or it can be quite sophisticated based on some complex algorithm to generate buy and sell signals. Another type of software is the one that actually opens a trade on trader's account. Can those pieces of software actually help in trading? Are they any threat to your trading account? Let's discuss it in more detail.
1. Auxiliary trading software
By auxiliary trading software I mean the software that either shows the simplified data like indicators or give buy and sell signals. It looks like it can really simplify the task of finding right trading opportunity so that a beginner trader can trade Forex as good as some advanced currency trader. Unfortunately as practice shows it is not the case. Advanced trader if he uses the software will make profit while a new trader who is not very familiar with the market will lose his money using exactly the same software. Why is that so? Again the big difference is in mindset and patience to rigorously following the trading rules.
1. Automated trading robots.
The second type of software, as I have mentioned, is the one that actually performs trading on your account. It seems like a holy grail since a machine does not have human emotions like greed and fear. Therefore it should not be susceptible to trading errors that a human trader makes due to those emotions. Again practice shows that application of these robots gives different results for different traders. Experienced Forex trader will test the software thoroughly before applying to his own account. But most new traders seeing how it performs a few trades put the software to their live account to lose their money quickly.
What's the reason for such a different results? First of all these pieces of software are based on some kind of trading strategy. There is no universal trading strategy that would make profit in any market conditions. For example a trading system that makes profit in trending market will lose money in ranging market. Only a human can identify the difference in market condition and adjust the use of software accordingly.
That's why it is necessary to study market and practice your trading skills. It will develop your trading mindset that will allow you to trade profitably. Once the mindset is in place trading tools like software and robots will only help you to achieve success faster. Otherwise they will help you to empty your trading account.
Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trades.

Thursday, 23 February 2012

How to Trade ETFs

How to trade ETFs is a question I hear often. In this article I'll show you why it's very simple to trade ETFs so you can get started right away in diversifying your portfolio by making Exchange Trade Funds an integral part of it.
ETFs constitute a perfect way for investors to invest in a financial sector and not be required to choose a specific stock, currency, or bond. ETFs are a collection of stocks or bonds, or other tradeables which belong to some sector or index, like the oil sector or the Dow index.
ETFs are a relatively new investment instruments and many traders are still unfamiliar with them. So a lot of people still aren't sure how to trade an ETF.
In fact, if you know how to trade a stock, you know how to trade an ETF. There is no difference.
An ETF has a market price, just like a stock. It is traded in regular trading hours, just like a stock. It has a bid and ask prices, just like a stock does. When the bid and ask price meet we have a transaction. And each ETF has its own name and symbol making it easy to differentiate between the two.
So technically, trading an ETF is the same as trading a stock. You either get your broker on the phone and tell him/her what to do, or you trade online. Easy as that.
The only difference is that ETFs are a bit harder to understand since their price is derived from the prices of all the stocks that they hold. For instance, an oil ETF has a price which changes as some form of average of the prices of the stocks which make it up.
So you do need to make some sort of research before you know which ETF to choose, but trading them is very simple. The key is to know how to pick the ones which will give you the highest profit for the lowest risk.
To read more about ETF trading, click here: How To Trade ETFs
Jonathan Gibson makes his money from home and has an extensive experience in market trading. To get a Free report on ETF and how to make more money with them, click here: ETF Trading System

Selling Options - Is This the Holy Grail of Investments?

Option sellers believe that if it's not, it's pretty darn close. Probably the closest an investor will ever get to the long sought Holy Grail of Investments or what is considered to be the ideal investment.
Let's take a look and see what exactly is regarded as the ideal investment. When asked to define what this is investors have various versions of what they consider to be the ideal investment or the Holy Grail of Investments. In the ultimate analysis, with few exceptions, most investors feel that an ideal investment should provide the following qualities: safety of capital, consistent high returns, immunity from economic and market fluctuations and finally, liquidity, or availability of funds should the investor find an immediate need to tap his resources. Safety of capital and high returns seem to be the most desirable of all yet these two are totally opposing qualities in any investment. As the saying goes, the higher the risk, the greater the reward or inversely, the lower the risk the smaller the reward.
That said let's explore our choices. Until the advent of options there appeared to be nothing that came even close to being called an ideal investment let alone be called the Holy Grail of Investments. We had to face the fact that investments were either low risk low reward or high risk high reward. Some investments were somewhere in the middle ground but few or none were in the Holy Grail category. Investors may be classified into two groups, passive and active investors. Passive investors prefer entrusting their capital to third parties and doing nothing more than expect returns from their investments either on a regular basis or value appreciation over time. They put their money into a fixed return instrument such as passbook savings accounts, money market funds, treasury bills, certificates of deposits, bonds and included in this lot are dividend paying stocks and mutual funds. Then there are the other passive investors that prefer to place funds into long term appreciation assets with capital growth as their main goal. Examples of these types of investments would be real estate, precious metals, arts and antiques. All these investment instruments while delivering small returns on a year-on-year basis do offer much safety of capital.
The active investor on the other hand is a more adventurous individual. He seeks high returns for his money, hopefully at reduced risk, by actively being involved in trading the markets, be it real estate, stocks, bonds, commodities, futures, foreign exchange, options or whatever else can be traded and made money on. Although more of a risk taker he nevertheless tries to moderate his risk exposure by restraining his profit objectives or rates of return on his capital. While passive investors are happy with annual returns of 6 to 10 percent, active investors seek higher rates of over 12 percent and more like in the region of 14 to 18 percent per annum. Is this doable? Yes, it is and many are happy actively trading the markets and achieving these returns using their own trading techniques that somewhat controls risk to an acceptable degree. Now here's the shocker. Option traders are able to generate annual profits in excess of 20 percent without exposing themselves to any more risk that those achieving 14 percent. Now here is an even greater shocker. Among those that trade options the ones specializing on the selling side generate annual returns in excess of 30 percent with many averaging annual returns in the region of 40 to 50 percent without increasing the risk factor any more than the passive investor!
Foreign currency traders as well as commodities and futures traders sneeze at this claim saying that they can outshine the option seller in annual returns. True. But can they claim to do so at the same risk level as the passive investors? Most probably not.
Selling options (stocks, commodities, futures, etc) has become for many the Holy Grail of Investments. To the experienced option seller this trading strategy offers high, consistent returns, a fair degree of immunity against economic and market fluctuations, liquidity, and finally safety of capital. This last claim may be open to debate from non-believers in this trading strategy. To be fair let's qualify the safety claim by saying that the inexperienced option seller is open to potentially heavy losses if he does not know what he is doing. But to the seasoned trader selling options is a safe investment strategy delivering all the qualities of an ideal investment to the point where successful option sellers claim to have found what to them is the closest one can ever get to the Holy Grail of Investments. Selling options on stocks, which is the specialty of this writer, can be particularly rewarding using a carefully planned trading system combined with disciplined money management and with proper safeguards in place.
There are many trading strategies in selling options. Some are simple enough, like the covered call technique, delivering fairly decent returns while others are more complex but more rewarding. There is one option selling system developed by this writer that can be carried out as a long term investment program offering a fair degree of safety and delivering consistent high returns time after time. By using a carefully planned, three-pronged system of trading, the risks associated with selling options can easily be conquered.
This writer has mastered this three-pronged trading technique and anyone wishing more information may visit his web site at http://www.theoptionseller.com

3 Things You Should Know About the Forex Autopilot System

As much as the Forex Autopilot System is truly a great forex trading software, there are a few things you should know about it before you set out to buy it.
First, the Forex Autopilot System is a completely automated system, meaning that it will place the trades all by itself. As advantageous as this may be, it also means that you have to rely entirely on the robot, which is fine given its performance. However, I know people who do not like to be in the hands of a robot, so keep this in mind if you fit into that category.
Second, this is not a way to get rich in a day, a week or a month, unless of course you are already rich, in which case the Forex Autopilot System will only make you richer. Whether you use this software or not, forex trading will always be about growing your account slowly but consistently. With the help of a software like the Forex Autopilot System a monthly growth of 50% is perfectly possible, so this means that if you start with a small investment of $500, you could see that figure grow exponentially to over $10,000 within a year.
Third, the Forex Autopilot System has good and bad days. Indeed, although the number of winning trades will be approximately 20 to 1, that one bad trade will surely freak you out and my advise is: do not. Forex trading demands patience and panic can never be part of the equation. If the software places a trade that goes into significant loss, be patient and try to analyze the trends a little before you close it thus realizing the loss. I tell you this because on several occasions I closed trades out of panic and a couple of days later the market went back to what would have been a winning position for that particular trade.
Keep in mind that the Forex Autopilot System is not perfect and it will not deliver perfection, it will only deliver consistency, which is the key to success within the forex market. It will make you money, but it will not make you rich overnight. If you can handle this, go ahead and start profiting from the forex market using this automated forex software.
Learn more about the Forex Autopilot System and other forex trading resources at: http://www.specialonlinebusinessreviewauthority.com

A Simple Forex Trading Approach

Some people call Forex the "Best Kept Secret in the Investment World" because even though the Forex market is the largest and most liquid financial market in the world, the average person doesn't even know it exists.
Investment Trading is not a Get-Rick-Quick scheme. It is a skill that takes time to learn. Unlike stocks or futures, investment trading in the Forex market is a 24 hour market. With the ability to trade during the US, Asian, and European market hours, you can customize your very own trading schedule. Here are a few ways you can participate in Forex trading.
1. Hiring Someone to Trade for You
By doing this, you hire a money manager to make the trades for you, pay them a commission, and pretty much relinquish control of your money.
2. Learn Investment Trading On Your Own
This can be quite expensive if you enroll in a workshop, not to mention time consuming. To get you started, I would recommend you go through any search engine to look for a free online course to introduce you to investment trading. Most courses will explain how the currency pairs work including the interest you will earn from your trades.
3. Subscribe to an investment trading software package.
In many cases when you order a subscription, there will be a monthly fee to use the software but it will also give you access to the tools and education you will need need to setup your own investment trading account.
Forex Investment Trading Strategies
It's important to understand that most investment trading strategies do NOT teach people how to be directional traders. This means you will not learn how to "guess" which direction the market will move next. Neither do they provide you with a signal service.
What you will receive from most investment trading strategies is unlimited access to the internet-based software and unlimited access to training webinars that will show you exactly how to use the program and how to place your trades on various broker platforms. It will also show you how to set up your own account where you can manage your very own portfolio.
There generally are no charts or graphs to read and no research or signals to follow. You will trade currency pairs which, historically speaking, move in opposite directions and then be told when to enter or exit your positions. Most investment trading strategies relieve you from having to watch the markets all night, when they are most active, waiting for a trading opportunity. After you make 3 basic decisions based on your personal preferences, the investment trading program will calculate the number of lots to buy along with the corresponding buy and sell points for each currency pair you choose to trade.
3 Ways to Generate Revenue
Buy Low & Sell High
Many investment trading strategies will use the amount of money you plan to invest, the currency pairs you choose to trade, and the level of volatility that you are comfortable with to give you a preset price point to enter into a free brokerage account of your choice.
Once your account is set up, it will buy or sell a certain number of lots of each currency pair, even while you're at work or asleep. Since no one knows which way the market will go, the price points are preset to either buy low or sell high. Some programs actually give you the option to receive a cell phone text message or email letting you know that one of the price points had been reached. What you need to do next is tell the program what happened so that it will give you new buy and sell points to set up again.
Collect Daily Interest
By using an investment trading strategy, you can earn passive income on the difference in interest rates. After your portfolio is set up, you will be paid daily interest on the money you control in the market. When you buy a currency pair, you receive interest from the first currency listed in each pair, and pay out interest on the second currency in the pair.
For example, interest on the dollar swiss would be:

USD 5.00% minus CHF 1.36%. The net difference of 3.64% is what you would earn annually. These calculations are done automatically by your broker without any intervention from you. This interest is paid on the money you invested and also on the number of lots you own.
The Power of Leveraging
Leveraging means that for every $1 you use to buy currencies in your investment trading account, the broker you are trading through will make available to you as much as $400 to control in the open foreign exchange market.
Without question, the potential returns from investment trading in the Forex market are great. The decision you need to make now is how you would like to participate.
Adrianne Geyer has a Computer Networking degree and has been a full-time Internet Marketer since July 2000. She began Forex Trading in January 2006 and use this Forex Trading Software to trade in the open currency market.

Tuesday, 21 February 2012

Forex Trading And Home Business

Forex, ie foreign exchange market has become very popular due to
its immense size, liquidity, currencies moving in strong trends
plus, an easy online access, relatively low starting capital and
a big leverage.
All this is very attractive to many sorts of investors, speculators
and also amateur people, especially online success chasers who
imagine easy and fast profits. BUT it has its pitfalls and the Internet
hype sellers and scammers make the situation even more dangerous.
Forex has enormous profit potential but since there is a substantial
leverage involved working both ways, the same is the loss potential
- the higher the profits, the higher the risk involved. And that
is exactly the core of success in forex which is hidden from people
seeking fast online profits.
People lacking basic character streaks like discipline, risk
evaluation ability, experience and even basic information and
training fall prey to false promises and start trading their last
money on forex expecting quick riches.
It is necessary to be aware of the fact that trading currencies
is not easy. If it was, no one would lose money and everyone would
already be a millionaire. Many traders with years of experience
still incur periodic losses. Everyone interested in trading forex
must realize that trading takes time to master and there are
absolutely no shortcuts to this process.
Yes, of course, it is possible to make it a long-term, profitable
and sustainable source of high income and even a proper home
business BUT the following are the basic rules for success in
forex trading:
1. Discipline: it seems easy but the lack of discipline is the profit
killer no 1. It is important to set your own rules and goals
and stick to them. Do not panic if not everything goes the way
you imagine and strictly keep the rules. One of the basic
situations is losses: If you know you can lose only $1000,
the discipline will help you stop trading if it happens, and
not borrow and go on and on... Also, it is the discipline which
helps you avoid magic profit calculations.
2. Responsible risk-taking and risk-evaluation ability: forex
trading is an investment method not a casino. It is not
possible to invest properly if you are not able to take up a
calculated risk, if you are not able to calculate an
acceptable risk, and if you are not able to even recognize a
risk. The good news is that you can develop this ability.
3. Spare money: never trade your last money, always invest either
profit or a reasonable amount of money you can lose. Always
behave responsibly and never borrow money to trade.
4. Thorough education and training, incl practical training: it
is imperative that before you start trading live, you get
proper education and training, that you acquire working
knowledge and develop your own working system on which you can
build your investment strategies, routines and practice.
5. Never trade in a live-or-die situation or under any stress: many gurus say that you can make instant riches from forex
investing your last money. It is one of the biggest lies I
ever heard. Unless you feel absolutely comfortable, knowing
what you are doing and why, enjoying the trading, you cannot
trade successfully. Any stressed, unbalanced or anxious mind
and brain is not able to evaluate situations correctly, react
competently, and it is a paved road to failure and losses.
6. Always do your homework: another hype you can hear around
says that everyone can trade just following someone else's
advice and instructions. I can tell you only one word as an
answer: rubbish. You must realize that you must be able to
evaluate every situation, every trend, every forecast, create
all the analysis, follow necessary trends, incl, of course,
hearing specialized analysts BUT the decision and the money
is yours only, so the responsibility is yours. The better your
homework, the higher and more reliable your profits.
7. Learn from your mistakes and remain flexible: you must know
that you will make mistakes, you will even lose in some trades
but you must be a great trader and you must know it. When you
make a mistake you must analyze the situation, find out why it
happened and see to it that you will not repeat the same mistake
in the future. You must not despair and fall into depression.
You must stay positive and simply do better next time.
Plus a little closing note to only make you aware of these important
topics which, however, exceed the scope of this basic informational
article:
- yet another risk is here: it is vital to choose the right
market-maker, big enough to allow you to make full use of currency
moves. I stress a market-maker and not a broker,
and also,
- avoid managed accounts.
In case you are interested in mastering forex trading and start
with the above points seriously, you are on the right way to trading
success.
Irena Whitfield is the webmistress of http://www.thecassiopeia.com/ - Internet Business Consultant you need to make your online home business a real success. Without any hype, she will help you to get where you want to get. Get her new ebook Package 'Your Success Master Keys' , containing: 'Success Tips And Tricks' , '7 Stars of Online Success' and 'The Success Seeds: the Entrepreneurial Bible', and make your business profitable this year!
http://www.thecassiopeia.com/ePublishing/SuccessMasterKeys.html

Forex Trading Course Online

Taking a forex trading course online is an essential step in ensuring your trading operation will continue to grow and make you a bit wealthier everyday. As you might already know, forex trading is one of the most profitable investment options available to anyone looking for a decent return. Nowadays there are a few automated softwares which allow you to carry out your forex trading operation with almost no action on your part, in fact, I personally use two of these systems in my forex trading operation with very satisfactory results.
However, as much as these softwares are usually over 90% accurate, there will come a day when they place a losing trade -or a trade that looks like one- and this is where fear and panic will come to play a catastrophic role if you have no idea about what is going on before your eyes. Why? Well, because if you do not know how to read the market you will probably rush into closing a trade for a loss, instead of waiting patiently for a correction. Taking a forex trading course online will give you the awareness you need to make informed decisions when the situation calls for it.
The forex market is very unique, and unlike the stock market, it is always profitable no matter what the crisis in the world, as the currency pairs are always on the move opening windows for profitable trades. If you carry out your forex trading operation with a software, taking a trading course online will certainly increase your profits, and if you trade or intend to trade manually, a forex trading course is simply a must.
In this website there is a comprehensive evaluation of two forex softwares and one trading course which I personally consider the best around: http://www.specialonlinebusinessreviewauthority.com

Day Trading Stocks - The Advantages of Trading Volatile Stocks

My hunch is that if you're a novice or inexperienced trader, you will have heard and may have been advised to stay well clear of any stocks that are volatile, or highly volatile. Well, this advice is not necessarily wrong, but you need not overlook these stocks altogether.
Correctly traded, the possibility of higher returns, or returns over a shorter period of time, is a key feature they have, over the less volatile stocks. Because of their nature, their price will move both quite erratically, and further, in any given time frame than their more slowly moving cousins.
Commodities and currencies for example serve to show the characteristics of volatile stocks, and it probably best to trade them of software that allows dual functionality, in that it has both data feed and a trading platform. The advantage of this is that the data feed is real time.
With most end-of-day static trading data feeds, the closing price for the day is downloaded after the market close, and you see it on a static chart. But real time feed is exactly that, and you can open and close your positions literally based on the price movement you see happening in front of you.
Most real time software allows you to zoom in on your position too. You may prefer to trade in a time frame of as little as five seconds, if you wish, so it's really easy to macro-analyse your trades.
Although I wouldn't necessarily advise it, but because you are following your trade face to face so to speak, you could omit using a stop loss facility, which most day traders use, since once they've opened a position they tend to close down and allow the stop loss to do it's work for them.
As said, trading volatile stocks requires close attention, but the advantage of this is there's more potential to gain more from your trade in a shorter time frame. You may only need to be exposed for twenty minutes or sometimes a few seconds. Taking a currency trade like the US Dollar against the UK pound or USD/GBP, for instance, you should be aiming for a maximum gain of say 3 points, no more. This gives your capital the minimum exposure for the maximum return.
How would you like to discover more about the techniques successful traders use to make profitable trades?
Download them free here: Day Trading Course.
Ian Jackson is an authority on Day Trading information, learning the hard way - and now he reveals how you can learn the business too, without all the growing pains.

How to Trade With Confidence

If you are anything like me than the idea of making money from home just blows your mind. Then I really think that you will find this article to be very important. The business that I am going to discuss with you also comes with a couple of benefits, about which I am getting ready to explain about. No this business does not come jam packed with benefits, but it does have some pretty good ones. Which I am about to tell you about.
For starters, you do not have to be rich or anything to get started or join this business. You can start with a budget of around $50. I think that you should be willing to invest a little more so that you would see results a little faster. Another benefit would be that you can make between .2% and 5% on your own money daily just as long as you decide to participate in it.
Continue to read and I will even show you proof that it is possible. Also you can operate this business anywhere in the entire world all that you need is to be able to connect your computer to the internet and read English. You can work on your schedule, it can be full time or part time the choice is completely up to you. But note that you could probably make more money if you decided to run your business full time.
Depending on how smoothly you business works you could even eventually quit you day job completely. So if you are interested in a cheap and affordable business to start that could help you to quit you job one day, take the time and do the research to see if currency trading is for you.
To read more tips and techniques about the top rated currency exchange please click below.
How To Trade With Confidence
Derrick-Ocean

Put Your Money Where Your Heart Is

Have you ever thought about investing as a way to express the desires of your heart? A growing trend is to invest in socially conscious ways, like alternative energy investments to reduce global warming. This article is intended to be very general and give you something to think about. It is not specific advice nor a recommendation on a product to buy or an investment strategy to follow.
What is Alternative Energy?
Alternative energy generally includes renewable energy sources such as solar, wind, geothermal or bio fuel. Also included are technologies that enable these sources to be tapped, and services or technologies that conserve or enable more efficient use of energy.
Rising Global Demand
Growing worldwide demand for oil and its by-products are straining traditional energy resources. That demand for energy is expected to accelerate as emerging nations work to raise their own standards of living. The International Energy Agency predicts that global primary energy demand will increase by 50% between now and 2030.
Scarcity of Accessible Oil
Many of the world's easy-to-reach supplies of oil have been tapped. While the rising cost of oil makes new and more expensive methods of oil production more viable, it also creates opportunities for competing energy sources. Increased investment in new technology will help drive down the development cost of alternative energies.
Why Invest in Alternative Energy
Alternative energy is a promising (or at least partial) solution to pressing issues like the United State's dependence on foreign oil and global warming. Now may be a good time to put your money where your heart is and invest in alternative energy - both for your portfolio and for the world's future.
What Options Do You Have?
You may invest directly in companies that provide renewable energy technology or you may purchase a mutual fund that invests in many of these types of companies. You will find investments based in both the United States and all across the world. Growing worldwide demand for energy presents a tremendous need and opportunity for investment in alternative energy.
Risks
Investments in a mutual fund or individual stock include many risks, not the least of which is the risk of loss of principal. You know because of recent stock market gyrations that individual sectors of the market (like energy) and the market as a whole can be very volatile and unstable. Energy related stocks have traditionally been more volatile than shares of other types of companies. Investments in foreign companies may also involve greater risk due to political, economic and currency fluctuations.
Take-Away Wisdom
Your investments can be a reflection of your heart's desires and passions.
If you are passionate about energy conservation, alternative energy sources, solar or wind power and want to put your money where your heart is, please contact me for more information on alternative energy investments. joan@joangillesfinanicalcoach.com or 651/578-2961
Securities offered through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way, Cincinnati, OH 45242, (513) 794-6794
Joan Gilles is a wealth building strategist to the entrepreneur/small business owner/independent professional; building a bridge to your dreams and peace of mind. She can be reached by email at jmgilles@pressenter.com or through her website at http://www.JoanGillesFinancialCoach.com

Monday, 20 February 2012

Investing in Treasury Inflation Protected Securities

Are you afraid of rising inflation rates? And want to ensure better returns over inflation from your investments at lowest risk? Then Treasury Inflation Protected Securities (TIPS) can be the best investing option for you.
Treasury inflation protected securities, also known as Treasury Inflation Index Securities and Real Return Bonds (RRB), are known as 'safest of the safe'. There is minimum downside risk on investing. TIPS are long term fixed income investments protected from inflation rate fluctuations.
TIPS are treasury notes which offer guaranteed payments - interests in every six months and principal on security maturing. In every six months the value of TIPS is automatically recalculated with respect to the inflation rate (measured based on Consumer Price Index, CPI). That is when inflation rate is up, value of TIPS is also increased automatically. In other words, inflation protection is available on both capital and investment. But there is no fall in original investment value of tips, as government guarantees that payment.
Treasury inflation protected securities are either bought directly or through mutual funds. There are TIPS with different maturity periods - 5 years, 10 years and 20 years. When buying directly, minimum capital investment is $1,000 and investments can be multiplication of thousands. Purchasing TIPS through mutual funds offer more flexibility.
There are many advantages of investing in treasury inflation protected securities. TIPS are very good long-term investments. They are government guaranteed. TIPS are excellent ways to diversity your portfolio and to reduce total portfolio risk. They are good option to hedge increasing commodity and service prices and they minimize total portfolio volatility. TIPS require less active investment management and thus favor both beginners and experienced investors. They are useful when inflation rates are expected to move up and when economy slows down.
But there are also some drawbacks. Treasury inflation protected securities offer less interest on capital compared to bonds and other fixed income securities. They offer poor return when inflation rate stays stagnant and in deflation. Earnings from TIPS are taxed unless they are used in non-taxable and non-deferred accounts. Investors cannot actively control their investments, as they aren't traded as easily as equities. And also interest rates are adjusted according to CPI, a switch from CPI to Chain-weighted CPI can cause problems.
NobleTrading.com's Online Trading/Investing Blog is an excellent resource for stock, futures and forex currency trading and investors. Know more about different strategies, patterns, indicators and terms. Read the post related to Treasury Inflation Protected Securities (TIPS)

Success On Forex Trading

To become involved in the wonderful and sometimes addictive world of Forex, you will need to have a strategy in place to succeed.
There are many forex trading strategies that will help you to push forward in the game, it is just a matter of going out there and finding one that works for you.
To begin with, look for websites that are uniquely designed to assist you with the practice of Forex trading online, it is wise to read our books and to consult with Forex experts about various forex trading strategies that might help you understand the Forex trading system a bit better. subscribe to as many forex newsletters, as well it's easy to find online forums that will help and you can take part in seminars where highly experienced Forex Mentors will explain the whole system and various strategies in detail. You'll need to practice some of the forex trading strategies with a demo account.
Follow and understand the daily Forex News and Analysis of the professional currency analysts. develop your catch-eye view of the currency markets and the news that affects the prices. what the key technical 'support' and 'resistance' levels are in the currency pair that you want to trade.
Support is a predicted level to buy (where currency pair should move up on the charts), resistance of a currency is a predicted level to sell (where the currency pair should move down on the charts). write down on a piece of paper what direction the analysts are saying about the major currency pair you are following and the key support and resistance levels for the day.
Probably one of the most important factors in forex trading strategies is to understand the forex charts in order to gain information about certain trends. Once you understand the way trends are moving and changing, and you are able to recognize and predict the patterns within these charts, you are well on your way to begin trading live account with success on the Forex.
Some Forex strategies are very technical and require practice (demo account) and understanding initially. Do not think that the forex is a way to get rich quickly. Initially, quick riches may not be possible as the exchange rate fluctuations will be slight, and it will take time for you to get the hang of it and make profits. You cannot win all of the time. By using some of ForexGuest trading strategies you will win more often than not.
Learn how to use the technical indicators and always trade with stop losses! even in the demo accounts - get the habit to use the "stop losses" ,set your stop losses accordingly depending on your risk capital, and your strategy or the one you want to test.
When you are trading Forex, be disciplined and to stick to a plan. we Don't trade the forex by our "feelings".
learn how to use the technical indicators on the charts, Choose an online forex firm, Pay attention to those who are offering the traders Low Spreads which will save your money.
Most firms offer 4-5 pip spreads in the Major Currency pairs. In Forex Trading the 'spread' is the difference between the buy and sell price of any given currency pair. remember that You need a firm that gives you access to the best charting and technical analysis available to active traders, and even allows traders to trade directly on the charts!
One of the forex trading strategies that you can start with is to learn which markets or trends to target. After learning a little bit more about the forex, you should be able to choose a market or trend that is more likely to be profitable. Be careful not to put all of your cash into one trend though, Rather put smaller, more logical amounts of money into different trends so that you have a better chance of at least some of your investments profiting.
If you have any doubts at all about the forex trading strategies and trading on a specific trend then listen to your instincts. You should feel 100 percent comfortable with everything that you are trading on and not have any hesitations at all. If you don't feel comfortable, then make sure you learn as much as you can before you begin trading.
Information is the basic to all successful trades, and the more you know the higher your earning potential.
To Your Success
Ziki De Naim
Forex Trading Strategies
Looking for info about Forex Trading? Find it all at : http://www.ForexGuest.com
Read about Trading Times, Mini Forex Account, Forex Terms used in the Forex Market, How to Choose Forex Brokers and Firms? Forex online News, ForexGuest - Store, Subscribe and read ForexGuest-Members newsletters about Top Rated Online Affiliate Opportunities, and Forex Trading Strategies Tips.

Forex Trading Risk - Avoid the Danger by Using Most Accurate Forex Trading Signal Software

If you are into forex Trading or planning to enter into it, you must be well aware it can prove to be a risky and costly affair if you make wrong buying or selling decisions. Many forex traders think that the trading process is very simple; they can monitor the market by taking knowledge from tutorials and guidance from net here and there or using there own judgment and intuition.
But this proves wrong most of the time, Forex Trading is more than simply buying a currency when the price is low and selling them at high price when it is in demand. Wrong reading of signal and lack of experience and also greediness mainly cause it.
To be a successful forex Trader and avoid any kind of losses, one needs to actually monitor the currency movement and read the correct signal. You must be thinking what is Signal? This is the most important component of Fore trading, once you understood to read it correctly you can master trading effortlessly.
So basically a Signal is a point where buying or selling is most lucrative.
Many Forex traders purchase buy and sell signals from experienced brokers in order to make life a lot easier. It definitely helps a lot but then the continuous purchase of these signals can become very costly over time
So the better cheaper solution is to purchase a buy sell signal prediction software. With Forex trade signal software, it's not necessary to spend a whole lot of time each day studying the trends and information and trying to figure out when to buy or sell. You don't have to wait for signal that may never come. These are just a few of the benefits of the Fore trade signal software.
It is free to test the software and in most cases you only have to pay for the software once. Purchasing Forex trade signal software can prove to be a very good investment. My team and I are currently using a software developed by a Forex expert, mathematician and psychologist. We have managed to have 90% success in using the software in Forex trading.
To know more about how you can use this forex signal software to eliminate your risk to 90% and make you auto -pilot forex income click herehttp://www.squidoo.com/forextracereview
To Know more about how to make easy online money with autonomous forex Trading software and read more reviews and information about how this software is helping to generate autonomous forex profit click here http://www.squidoo.com/forextracereview

Real Time Currency Trading Systems - Your Tools to Make Millions in Forex Trading

Foreign exchange envelops currency trading in the sense that making a profit with this kind of investment works through buying a nation's currency while selling other currencies when a small increase/decrease in exchange rate happens.
It involves a certain amount of risk because it does not tolerate ignorant brokers who are not familiar or have little experience with real time currency trading systems. These trading systems are all about investments that favor increased analysis and accuracy.
Which is a ironic since many markets want to share their trades without examining their market policies prior to deals. This becomes very difficult and puts the market at stake. Hence, it is best to learn your currency trading systems.
Through currency trading, brokers widen their perspective in making investments because these systems often expose increased speculations on brokerage. This aids in gaining knowledge about budding investors and understand the intricacies of the market.
Furthermore, real time currency trading systems help predict the future of stocks, which are one of the most important aspects of forex trade. Why are stocks significant? These stocks greatly affect the profitability in terms of currency trading.
Because the Internet provides readily available information concerning market trade, many websites offer courses to beginners that would aid in learning currency trade. Courses about currency trade will provide basic terms and language utilized in forex market plus understanding of market basic principles.
After learning the basic terms, the broker can now open an account with the help of an expert broker. This market, which is open for 24 hours online, would help in attaining forex reserves and share market benefits.
Learning currency-trading systems is important in Foreign exchange, as it embodies high profits and good investments.
I personally started out with this remarkable and easy to use automated trading software named Forex-Brotherhood. And amazingly, it made my work so simpler and make my Forex trading so hassle free that now I Literally earn money on auto pilot after 1-2 months of set up. You can Check this and some other great software and it reviews - http://revenueboosterz.com/forexsoftwarereview.html
To know more about Forex trading and automated software click here FOREXROBOTREVIEWS

Forex Strategy Course Online Lesson - Basics of Forex Trading

Forex, short for the Foreign Exchange market, is the largest financial market in the world. More money changes hands on the Forex market each day than on the stock market for an entire month! With the right forex trading strategy, you can become a successful forex investor. However, before you can learn real Forex trading strategies, you need to learn the basics of forex trading. This online forex lesson will teach you the elementary concepts.
The Forex market trades money, or currency, between different countries. You can think of it as a currency exchange market where people exchange large sums of, say, US dollars for British pounds. There are many currencies traded on the Forex market, and the most popular to trade are the US dollars, British pounds, European euros, Japanese yen, Swiss franc, Canadian dollar, New Zealand dollar, and Australian dollar. The symbols for these currencies on a Forex chart are USD, GBP, EUR, JPY, CHF, CAD, NZD, and AUD, respectively. A successful Forex strategy involves predicting how the relative strengths of the currencies will change in the future.
There are many reasons why investors prefer the Forex market to the stock market. Here are a few:
1) Because the Forex market is a global market, it is open 24 hours a day. Major centers are located in NY, London, and Tokyo, so there will always be an institution ready to process orders. Unlike stocks, you can buy and sell at any time.
2) Trillions of dollars trade hands every day in the Forex market. This means that the market has high liquidity, and your orders are usually instantly processed. Another side effect is that no single institution can use unethical Forex strategies ("game" the market) since the market is enormous.
3) Forex offers high leverage or margins than stocks. With stocks, you cannot have a leverage of more than 2:1, which means you can only borrow a small amount of money from your broker. Forex brokers can offer up to 200:1 leverage, which means a small amount of cash can go a long way. A successful Forex trading strategy will increase your portfolio much, much faster than with stocks. On the flip side, though, it is also much easier to lose all of your money in Forex markets.
In summary, the Forex market gives investors an opportunity to profit from currency exchange. Forex strategies can take advantage of fast-paced, highly-leveraged trading to generate rapid profits, but this comes at the price of higher risk.
To learn more about Forex trading and online courses, visit http://www.squidoo.com/forexpowerstrategyreview and http://www.thewebfind.com/forexpowerstrategy.html

Forex Trading Course - A Must for Forex Beginners

In the world's major economic Marketplace where exchanges achieve up to trillions of dollars each day, many people would really want to take part in this Marketplace. Aside from being the major financial Marketplace in the world, Forex is also the most liquid Marketplace in the world where trades are completed 24 hours a day.
A lot of Traders have turn out to be extremely wealthy Trading in the Forex Marketplace. And, many people who trade in the Forex Marketplace on a daily basis have found a great way to replace their day jobs. Some even became millionaires almost overnight by just Trading in this economic Marketplace.
Trading in the Forex Marketplace can be very attractive. However, you should also know that there have been people who suffered extreme financial losses in the Forex Marketplace. It is true that the Forex Marketplace offers a very good money-making opportunity to a lot of people, but it also has its risks.
It is a fact that people who didn't have the right knowledge and skills Trading in the Forex Marketplace suffered huge financial losses and some even went into debt. So, before you enter the Forex Marketplace, it is essential that you should have the necessary knowledge and skills as a Forex trader in order to minimize the risk of losing money and maximize the potential of making money.
Many people who were doing well in the Forex Marketplace have went through a Forex Course to get the knowledge and skills needed to successfully trade in this very liquid and very large economic Marketplace.
In a Forex Trading Education, you will learn about when it is the right time to buy or sell, chart the movements, spot Marketplace trends and also know how to use the different Trading platforms available in the Forex Marketplace.
You will also be familiarized with the terminologies used in the Forex Marketplace. Even the basic knowledge about Trading in the Forex Marketplace can be a great help with your money-making venture in the world's largest Marketplace.
There are different Forex Trading lessons offered, all you need to do is select one that suits your requirements as a trader. Even crash courses where all the basic things about Forex will be taught to you in a short period of time, full time online courses, where you will learn all about Forex through the internet and there are also full time real life classroom courses where you can learn the ropes about Forex in a real classroom with a live professor.
You can also become an apprentice. On the other hand, in order to become skilled at a lot about Forex as an apprentice, you need to make sure that you have a seasoned Forex trader who can share a lot of things to you about the Forex Marketplace.
Forex Trading Online - 5 Reasons Why You Should.
• Forex never sleeps

• Forex Trading online offers great leverage

• Forex prices are predictable

• Forex trading online is commission free

• 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!
A high-quality Forex Trading lessons will also clarify a lot about the primary and technical analysis of charts. As a trader, knowing how to analyze a chart is an essential skill that you should have. So, when you are looking for a Forex Trading lessons, you should look for a lessons that offers essential and technical analysis instruction.
Stress plays a vital part in Forex Traders. Knowing how to deal with stress is also a skill that you should develop. A good Forex Trading Education should teach you how to deal with stress and trade successfully and efficiently.
As much as possible, you should look for a Forex Skill that offer real Trading systems where students can trade real currency on the Forex Marketplace or at least trade on dummy accounts in a simulated Forex Marketplace. This hands-on knowledge will greatly benefit you. In addition, the best way to learn about anything is by actually experiencing it. Live Trading and simulations should be offered in a Forex Trading course.
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!
Zevs Borealis is the founder of a number of Forex Trading Sites. You can find more info about Forex Trading Online on: More Forex Trading Info You may publish the article on your website. If you do, not change the article, and include all html as direct links to our site.