Profitable Trades in Forex

Currency trading compared to trading stocks gives you big advantages.

The first real advantage is that the amount of money you need to trade is extremely small. With some brokers, as little as $100 allows you to control $10,000 of a currency. Compare that with purchasing stock on margin. If you were to purchase $10,000 in stock, you would have to have a minimum margin of $5,000. That's a huge difference and a giant advantage for you.

The second advantage to currency trading is that the currencies often trend for weeks, months or sometimes even years. Just catch the trend and you're on your way to some nice profits.

The third advantage is that currencies don't suddenly gap up or down with the news of the day as stocks do. There are no accounting problems, scandals, broker downgrades, earnings rumors, insider trading or take over bids. There are no new product announcements or balance sheet issues to worry about.

Another big advantage is that you can trade currencies 24 hours a day, almost 6 days a week.

Currencies trend, but they also fluctuate against each other. Since a pip, the smallest movement of a currency is $.00001and a pip in the mini contract represents $1 of profit or loss, then you can see that with very little movement, you can make or lose some real money.

Profitable trades in forex are relatively easy to come by, but that doesn't mean that as a newbie, you should just jump into the action. As with any money making endeavor there are the tricks of the trade. You have two ways to learn these tricks. You can open an account, start trading and learn your lessons the expensive way, by losing.

Or, you can let a seasoned trader show you what to do and when. In my view, the small amount you have to pay a seasoned trader to show you the ways of the currency market, especially with the convenience of the internet, is money well spent.

Here's where the choices get interesting. There are trading programs that use "bots" or automatic trading signals. The problem with bots is that the market changes its characteristics from time to time and automatic trades that work one day will destroy your account the next day. With bots, you're totally on your own when the eventual losing trades come your way.

In my opinion, the only way to build your trading knowledge is to let a seasoned pro show you what to do.

Here comes the best part. Now you can learn under the wing of a professional trader FREE for 30 days. No credit card needed. After that, if you chose to continue trading under his guidance, your trading profits should more than more than cover your costs.

AUTO FOREX TRADING SYSTEM

If you wish to make most of the forex trading opportunities, then auto forex system trading is something which could really assist you in this concern. Just select the best trading system and earn lots of money.

When it comes to earn lots of money with forex trading in an easiest manner, it is highly recommended to go for auto forex system trading. Now, you must be wondering why it is so. Well, before taking into the account of these systems, it is essential for you to consider their worth first. Basically, forex trade market works for twenty four hours a day. It means that opportunities of earning money can come at anytime. But, is it possible for you to monitor all these trade activities for the whole day? Well, the answer will definitely be no! Now, here comes the requirement of these auto forex system trading.

Such systems can assist you as a professional broker and that too without charging any monthly wages. Now, let us consider the functioning of these trading systems. Basically, these systems work upon the specific software which acts according to the growth or fall of the currency. It means that the decisions taken by auto trading system are the assurance of earning a lot of money.

In addition, these systems do not require you to sit in front of them to monitor their activities. They work for you throughout the whole day and as soon as any earning opportunity arrives, you are sure to grab that instantly. Although these systems are quite trendiest these days, but it doesn't mean that you should trust them blindly. As forex trading is a risky game and even a single mistake of yours could put you into halt. That's why it would be a prudent decision to go for a demo session of these systems.

In addition, make sure the system that you are going to deal with is tested under the practical conditions of forex market. You can also search over the Internet to find out the most appropriate auto forex system trading software for you. It doesn't matter which software you are using in the forex trading, the only thing which matters is your strategy to make the most out of it. Therefore, select the software that works according to your strategies.

Stock Market Money Management Skills

Let's start by saying: You can't be afraid to take a loss. The investors that are the most successful in the stock market are the people who are willing to lose money.

Having a strategy and/or a specific philosophy is an excellent starting point to investing but it won't mean a thing if you can't manage your money. As I have said a million times: without cash, you can't invest.

Most investors spend far too much time trying to figure out the exact pivot point or perfect entry strategy and too little time on money management. The most important aspect to investing is cutting your losses, 90% of the battle is won by protecting your capital, regardless of the strategy.

Most successful money managers only make money 50-55% of time. This means that successful individual investors are going to be wrong about half the time. Since this is the case, you better be ready to accept your losses and cut them while they are small. By cutting losses quickly and allowing your winners to ride the up-trend, you will consistently finish the year with black ink.

Here are some methods that can help you with money management:

Set a predetermined stop loss (you must know where to cut the loss before it happens ¡°this will help control emotions when the time comes)." A 7-10% stop loss insurance policy is best. Tighten the stop loss range in down markets and loosen the range in strong bull markets.

Establish smaller positions if your account has had a recent losing streak (the losses may be telling you important information such as a critical turning point, it may be time to sell and get out).

If you think you are wrong or if the market is moving against you, cut your position in half ¡°this is the best insurance policy on Wall Street."

If you cut your position in half two times, you will be left with only 25% of the original position ¡°the remaining stock is no longer a big deal as your risk is very low."

If you sell out of a trade prematurely based on a minor correction, you can always reestablish the position again.

Initial position sizing plays a big part in money management ¡°don't take on too big of a position relative to your portfolio size. Novice investors should never use their entire account on one trade no matter how small the account

Know when you would like to get out of a position after a considerable profit has been made. Signs of topping could be a climax run, a spinning top or higher highs on lower volume.

Finally, cut any trade that doesn't act the way you originally analyzed it to act.

With these guidelines, you will be well on your way to solid money management skills that will help you profit in Wall Street year in and year out. Always remember, you are going to take-on losing trades at least half of the time. This is a tough concept to accept for most novice investors but it a fact. If you don't cut losses, you won't be investing for very long as you will run out of cash and the desire to continue to invest.

Forex Money Management

Forex Money Management - The Foundation For Huge Gains and Forex Trading Success

Most traders use solid Forex trading systems but they fail to poor money management and really poor money management is the reason most traders lose lets take a look at in more detail...

If you watch any good football team it will have a strong defence it keeps the team in the game, until the offence gets an opportunity. If a team falls to far behind it doesn't matter how good the attack is, the team will lose and it's the same in Forex trading you need to defend what you have and keep your losses small until you get good high odds opportunities.

In Forex trading lose 50% of your account and you have to make a 100% to get back to profit and that's hard!

In Forex trading picking trend direction is easy but getting in at the best risk to reward is hard. So what tips can I give you?

The first is to cut leverage sure most brokers give you 200:1 but 10:1 is really plenty for most traders. Leverage up to far and you will have to have your stop to tight and will get taken out by the market noise so cut back leverage.

Next don't put stops to close!

This isn't being rash but you need to have stops outside of random volatility, so you don't get clipped out. Even more important is never jack your stop up to far to lock in profit - leave it back and accept short term dips in equity, to make a longer term gain.

Most traders either use to much leverage or think by having stops close, they reduce their risk but they don't, all they do is increase the probability of being stopped out to 100%. Many traders calculate their risk reward as - their target minus their stop but this is just an opinion! It does not take into account the probability if the trade.

To Win You Need to Deal with Volatility

When I ask traders I teach, do they know anything about standard deviation of price?

They look at me with a blank look yet; this should be essential knowledge for any Forex trader's essential education - why?

Because it gives you the volatility of the market and allows you to place stops more effectively. If you don't know what it is, make it part of your essential Forex education and look up our other articles.

Here are some simple money management tips.

- Always assume the worst when you enter a trade and things can only get better, there is no sure fire winner!

- Never place stops inside random volatility

- Never leverage up to hilt, keep leverage low

- Never trail a stop to quickly give the market room to breathe

- Never trade in random time periods so no day trading or scalping!

- Be patient and wait for high odds trades

- Don't place mental stops, they affect discipline and you may let a loss run

- Risk reward is NOT Your target minus your stop! Don't fall into this common trap

- If in doubt get out - any doubts liquidate

In forex trading your only trading the odds, you need to preserve your equity above all else fall too far behind and you will never recover. Forex money management is the key to this and always keep in mind the old gamblers saying:

To bet and win you need to be at the table but you can't bet if you lose your chips!

Obvious really - but very true. The foundation of your success is sound Forex money management SO pay attention and make it part of your essential Forex education or lose.

Online Trading, an Option for World Trade

International deal is substitute of capital, commodities, and services across world frames or soils. In the most of nations, it being a remarkable percentage of gross domestic product (GDP). While world deal has been represented throughout lots of story (see Silk Road, Amber Road) the economic, social, and political importance has been connected the raise in new centuries. Industrialization, manufacturers, advanced transportation system, globalisation, transnational corporations, and outsourcing are all having a major impact on the transnational trade system.

Trading globally opens consumers and nations the opportunity to be exposed to commodities and services that are not available in their individual nations. Almost each variety of product can be checked on the global market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are as well traded: tourism, banking, consulting and transportation. A product that is dealt to the worldwide market is an export, and a product that is bought from the worldwide market is an import. Imports and exports are described for in a country's ongoing account in the balance of payments.

According to the U.S. Department of Commerce, strong companies reach up about 4 % of U.S. Exports which signifies that 96% of exporters are smaller companies. Why is world trade so strategic to begin smaller businesses? In numerous examples, the products or services you may care to market are not available or made in your domicile nation. For illustration, consider about trading cashmere sweaters. You may want to become an importer in order to compete with established products dealt by your competitors.

Online business can oftentimes start trading internationally with very little effort. The cyberspace has metamorphosed things. Your web site can be your store window in some number of nations. You don't need a physical front in every territory to deal there.

A Paper by Georgios Papastamkos, MEP on Transnational Trade on the cyberspace emphasised that the online circumstances for smaller and medium-size enterprises are especially great since they receive more chances to get across conventional commercial systems instead than they had even a last decade. Enterprises are effective to set up their cyberspace sale targets easy, speedily and at little cost, thereby achieving a higher level of fight.

If your business is operating in a niche, with a relatively smaller domestic market, looking to another nations can help you expand your audience with surprisingly little effort. And if your commodities or services attract to a bigger audience, moving into international marketplaces makes you the probability to touch a wide number of potency recent customers. It could really boost your receipts and earnings.

However, in a larger market there will be more competition from local companies. It can be heavy to match up on cost or fulfilment when shipping internationally, so you might let to modify your proposition to have an impact.

It's not only for manufacturer but for consumers are also receiving benefits by online trading,. Since they enjoy a very bigger choice between commodities and services, competitive pricing, lower living costs and a better excellent of life, they as well don't demand to go out to browse all products and services even from wholesale providers. They are today better able to compare productions and services since they take access more selective information on online trading.

Are Traditional Banks Better Than Internet Banking?

With the ubiquitous internet as it is today, you have the convenience of doing a variety of banking transactions online from the comfort of your home, in your office or while traveling. This extraordinary technological creation has so made life easier for a lot of people including professionals, the business community, housewives and scholars even for banking purposes. Notwithstanding, this new communication phenomenon people have not stopped patronizing the usual off line banks . The orthodox banks will always be there for those people who still choose to interact in an real bank in where they see staff and call them by name.

The banks that have gone online and their offline counterpart have their advantages and disadvantages. It's up to you to consider and decide whether to transact your financial affairs with either an online bank or an off line one . What really count s is that you should know your financial demands so as to be able to actually be on the look out for the latest tendency in the banking industry and understudy them to see how it favors you. Even if you are loyal to your usual offline bank, you may also have the need to sometimes use the online banking service for an urgent transaction or when you are where the bank is not near by.

Accomplished banks continue to use pen and paper for organizing financial transactions off line while in their online virtual offices computer and internet and keyboard are the instruments for banking transactions . The fact is that a lot of people are now online with financial products that are internet-only services meant to compete with the normal off line banks . Though these conservative banks cater mainly to their old customers, people who should know are advising them to also open online offices to serve the internet-savvy young people and by so doing attract more customers

Security and person to person interactions are the main reasons people maintain the use of traditional banks. A lot of people feel that human contact is a necessity in any bank transaction; they want to hand their hard earned cash over to real teller.

Banking online is quite the same as when you do the same thing in an offline bank. The significant dissimilarity is that your computer replaces paper or phone for accessing your account information for payments and statements reconciliations . You don't really have to worry about going to your local bank branch when you can do all the things necessary to effect a bank transaction in the comfort of your home with a desktop computer or laptop and internet connection.

A principal advantage that internet banking offers people who go for online banking is cost effectiveness. Certain banks are known to charge their customers lower fees if the bank online banking services.

Forex Money Management by FX Master

Money management is a critical point that shows difference between winners and losers. It was proved that if 100 traders start trading using a system with 60% winning odds, only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don't understand how important it is.

It's important to understand the concept of money management and understand the difference between it and trading decisions. Money management represents the amount of money you are going to put on one trade and the risk your going to accept for this trade.

There are different money management strategies. They all aim at preserving your balance from high risk exposure.

First of all, you should understand the following term Core equity
Core equity = Starting balance - Amount in open positions.

If you have a balance of 10,000$ and you enter a trade with 1,000$ then your core equity is 9,000$. If you enter another 1,000$ trade,your core equity will be 8,000$

It's important to understand what's meant by core equity since your money management will depend on this equity.

We will explain here one model of money management that has proved high anual return and limited risk. The standard account that we will be discussing is 100,000$ account with 20:1 leverage . Anyway,you can adapt this strategy to fit smaller or bigger trading accounts.

Money management strategy

Your risk per a trade should never exceed 3% per trade. It's better to adjust your risk to 1% or 2%
We prefer a risk of 1% but if you are confident in your trading system then you can lever your risk up to 3%

1% risk of a 100,000$ account = 1,000$

You should adjust your stop loss so that you never lose more than 1,000$ per a single trade.

If you are a short term trader and you place your stop loss 50 pips below/above your entry point .
50 pips = 1,000$
1 pips = 20$

The size of your trade should be adjusted so that you risk 20$/pip. With 20:1 leverage,your trade size will be 200,000$

If the trade is stopped, you will lose 1,000$ which is 1% of your balance.

This trade will require 10,000$ = 10% of your balance.

If you are a long term trader and you place your stop loss 200 pips below/above your entry point.
200 pips = 1,000$
1 pip = 5$

The size of your trade should be adjusted so that you risk 5$/pip. With 20:1 leverage, your trade size will be 50,000$

If the trade is stopped, you will lose 1,000$ which is 1% of your balance.

This trade will require 2,500$ = 2.5% of your balance.

This's just an example. Your trading balance and leverage provided by your broker may differ from this formula. The most important is to stick to the 1% risk rule. Never risk too much in one trade. It's a fatal mistake when a trader lose 2 or 3 trades in a row, then he will be confident that his next trade will be winning and he may add more money to this trade. This's how you can blow up your account in a short time! A disciplined trader should never let his emotions and greed control his decisions.

Diversification

Trading one currnecy pair will generate few entry signals. It would be better to diversify your trades between several currencies. If you have 100,000$ balance and you have open position with 10,000$ then your core equity is 90,000$. If you want to enter a second position then you should calculate 1% risk of your core equity not of your starting balance!. Itmeans that the second trade risk should never be more than 900$. If you want to enter a 3rd position and your core equity is 80,000$ then the risk per 3rd trade should not exceed 800$

It's important that you diversify your prders between currencies that have low correlation.

For example, If you have long EUR/USD then you shouldn't long GBP/USD since they have high correlation. If you have long EUR/USD and GBP/USD positions and risking 3% per trade then your risk is 6% since the trades will tend to end in same direction.

If you want to trade both EUR/USD and GBP/USD and your standard position size from your money management is 10,000$ (1% risk rule) then you can trade 5,000$ EUR/USD and 5,000$ GBP/USD. In this way,you will be risking 0.5% on each position.

The Martingale and anti-martingale strategy

It's very important to understand these 2 strategies.

-Martingale rule = increasing your risk when losing !

This's a startegy adopted by gamblers which claims that you should increase the size of you trades when losing. It's applied in gambling in the following way Bet 10$,if you lose bet 20$,if you lose bet 40$,if you lose bet 80$,if you lose bet 160$..etc

This strategy assumes that after 4 or 5 losing trades,your chance to win is bigger so you should add more money to recover your loss! The truth is that the odds are same in spite of your previous loss! If you have 5 losses in a row ,still your odds for 6th bet 50:50! The same fatal mistake can be made by some novice traders. For example,if a trader started with a abalance of 10,000$ and after 4 losing trades (each is 1,000$) his balance is 6000$. The trader will think that he has higher chances of winning the 5th trade then he will increase size of his position 4 times to recover his loss. If he lose,his balance will be 2,000$!! He will never recover from 2,000$ to his startiing balance 10,000$. A disciplined trader should never use such gambling method unless he wants to lose his money in a short time.

-Anti-martingale rule = increase your risk when winning& decrease your risk when losing

It means that the trader should adjust the size of his positions according to his new gains or losses.
Example: Trader A starts with a balance of 10,000$. His standard trade size is 1,000$
After 6 months,his balance is 15,000$. He should adjust his trade size to 1,500$

Trader B starts with 10,000$.His standard trade size is 1,000$
After 6 months his balance is 8,000$. He should adjust his trade size to 800$

High return strategy

This strategy is for traders looking for higher return and still preserving their starting balance.

According to your money management rules,you should be risking 1% of you balance. If you start with 10,000$ and your trade size is 1,000$ (Risk 1%) After 1 year,your balance is 15,000$. Now you have your initial balance + 5,000$ profit. You can increase your potential profit by risking more from this profit while restricting your initial balance risk to 1%. For example,you can calcualte your trade in the following pattern:

1% risk 10,000$ (initial balance)+ 5% of 5,000$ (profit)

In this way,you will have more potential for higher returns and on the same time you are still risking 1% of your initial deposit.

Forex Money Management - The Foundation For Huge Gains and Forex Trading Success

Most traders use solid Forex trading systems but they fail to poor money management and really poor money management is the reason most traders lose lets take a look at in more detail...

If you watch any good football team it will have a strong defence it keeps the team in the game, until the offence gets an opportunity. If a team falls to far behind it doesn't matter how good the attack is, the team will lose and it's the same in Forex trading you need to defend what you have and keep your losses small until you get good high odds opportunities.

In Forex trading lose 50% of your account and you have to make a 100% to get back to profit and that's hard!

In Forex trading picking trend direction is easy but getting in at the best risk to reward is hard. So what tips can I give you?

The first is to cut leverage sure most brokers give you 200:1 but 10:1 is really plenty for most traders. Leverage up to far and you will have to have your stop to tight and will get taken out by the market noise so cut back leverage.

Next don't put stops to close!

This isn't being rash but you need to have stops outside of random volatility, so you don't get clipped out. Even more important is never jack your stop up to far to lock in profit - leave it back and accept short term dips in equity, to make a longer term gain.

Most traders either use to much leverage or think by having stops close, they reduce their risk but they don't, all they do is increase the probability of being stopped out to 100%. Many traders calculate their risk reward as - their target minus their stop but this is just an opinion! It does not take into account the probability if the trade.

To Win You Need to Deal with Volatility

When I ask traders I teach, do they know anything about standard deviation of price?

They look at me with a blank look yet; this should be essential knowledge for any Forex trader's essential education - why?

Because it gives you the volatility of the market and allows you to place stops more effectively. If you don't know what it is, make it part of your essential Forex education and look up our other articles.

Here are some simple money management tips.

- Always assume the worst when you enter a trade and things can only get better, there is no sure fire winner!

- Never place stops inside random volatility

- Never leverage up to hilt, keep leverage low

- Never trail a stop to quickly give the market room to breathe

- Never trade in random time periods so no day trading or scalping!

- Be patient and wait for high odds trades

- Don't place mental stops, they affect discipline and you may let a loss run

- Risk reward is NOT Your target minus your stop! Don't fall into this common trap

- If in doubt get out - any doubts liquidate

In forex trading your only trading the odds, you need to preserve your equity above all else fall too far behind and you will never recover. Forex money management is the key to this and always keep in mind the old gamblers saying:

To bet and win you need to be at the table but you can't bet if you lose your chips!

Obvious really - but very true. The foundation of your success is sound Forex money management SO pay attention and make it part of your essential Forex education or lose.

Stock Market Money Management Skills

Let's start by saying: You can't be afraid to take a loss. The investors that are the most successful in the stock market are the people who are willing to lose money.

Having a strategy and/or a specific philosophy is an excellent starting point to investing but it won't mean a thing if you can't manage your money. As I have said a million times: without cash, you can't invest.

Most investors spend far too much time trying to figure out the exact pivot point or perfect entry strategy and too little time on money management. The most important aspect to investing is cutting your losses, 90% of the battle is won by protecting your capital, regardless of the strategy.

Most successful money managers only make money 50-55% of time. This means that successful individual investors are going to be wrong about half the time. Since this is the case, you better be ready to accept your losses and cut them while they are small. By cutting losses quickly and allowing your winners to ride the up-trend, you will consistently finish the year with black ink.

Here are some methods that can help you with money management:

Set a predetermined stop loss (you must know where to cut the loss before it happens ¡°this will help control emotions when the time comes)." A 7-10% stop loss insurance policy is best. Tighten the stop loss range in down markets and loosen the range in strong bull markets.

Establish smaller positions if your account has had a recent losing streak (the losses may be telling you important information such as a critical turning point, it may be time to sell and get out).

If you think you are wrong or if the market is moving against you, cut your position in half ¡°this is the best insurance policy on Wall Street."

If you cut your position in half two times, you will be left with only 25% of the original position ¡°the remaining stock is no longer a big deal as your risk is very low."

If you sell out of a trade prematurely based on a minor correction, you can always reestablish the position again.

Initial position sizing plays a big part in money management ¡°don't take on too big of a position relative to your portfolio size. Novice investors should never use their entire account on one trade no matter how small the account

Know when you would like to get out of a position after a considerable profit has been made. Signs of topping could be a climax run, a spinning top or higher highs on lower volume.

Finally, cut any trade that doesn't act the way you originally analyzed it to act.

With these guidelines, you will be well on your way to solid money management skills that will help you profit in Wall Street year in and year out. Always remember, you are going to take-on losing trades at least half of the time. This is a tough concept to accept for most novice investors but it a fact. If you don't cut losses, you won't be investing for very long as you will run out of cash and the desire to continue to invest.

How Forex Money Management Protects Currency Traders

If you consider Forex money management a boring distraction from the real fun of Forex trading, you've missed the whole point. Before you can make any real and consistent gains in the Forex, you must come to understand that money management is just as important as the trading part. One of the most essential ingredients of successful Forex trading is the unfailing use of money management techniques to minimize losses and protect your gains.

Before you even begin laying out money and making trades, you'll want to decide on a set of Forex money management guidelines. Placing bets without any kind of safety net is irresponsible toward yourself and your family.

Successful traders recommend that you start small and gain a gut-level grasp of the markets before moving on to bigger bets. Hoping for a big score right at the beginning is the mark of a casino gambler, not an investor.

The best advice:
Keep your risk, right from the beginning, at about one percent or less of your total equity on any one trade. Keeping your risk low, in the one percent range, protects you if disaster strikes and you have a string of losses. You could actually survive 20 consecutive bad trades and still have 80 percent of your equity remaining. Taking tiny little one percent baby steps may seem boring, but it certainly beats being wiped out by a run of adverse trades. It will ensure that you're still around to invest next week, next month and next year. It also helps you safely build confidence, judgment and experience.

Many new Forex traders ask how much they should put into their trading account. The surest and wisest advice is never, ever bet your rent or grocery money. In other words, only use money you can afford to lose. Yes, I know that in your special case there aren't going to be any losses, and you're in a big hurry to make it big. But long experience says it's not going to happen that way for you either. If you were to lose everything you invest, would you and your family still eat okay? Would you still be in your home, or would you have to move into your brother-in-law's basement? Just think about this, okay?

It's important for you to know about the four stops. These are standard (and very wise) ways to prevent losses from ravaging your finances as you begin trading the Forex markets. You or your broker can use one or more of these four stops to protect your money.

1. Equity Stop
This stop lets you decide beforehand how much you're prepared to risk on a single trade, and you won't risk anything beyond that percentage. A beginner may set the equity stop to one or two percent. Once you've gained considerable experience, you might eventually raise this to five percent, but never forget that at the 5% level, ten consecutive bad trades (not impossible) could wipe out half of your account.

Downside: This stop makes no allowance for positive fluctuations. The protection is strong, but if you never vary from it, you may miss out on some of the more profitable trades. When you're a newbie, the safety net it provides while you're learning is more important than any gains you might miss while you'e learning.

2. Chart Stop
The trading charts that technical analysis provides can be accurate indicators of market movements. Technically minded traders who live, eat and breathe mathematics and probabilities often love chart stops. But the smart ones don't get reckless. They also include equity stops in their calculations.

Downside: Generating charts and analyzing them can take significant time for newbies. This is time in which the market has moved on, leaving all that beautifully charted data a little (or a lot) outdated.

3. Volatility Stop
Related to the chart stop but more complex, this one assigns risk values according to volatility rather than price action. Until you're experienced in Forex trading, it's best to leave this difficult technique to your broker. It's based on subtle and sophisticated evaluations of high versus low volatility of currency pairs and assigns greater or lesser risk to each market situation.

Downside: Demands steady, unflinching nerves and a great deal of experience.

4. Margin Stop
With the Margin Stop you're deciding beforehand that you'll get out of any trade before you're out of money. If you have ,000 in your account, setting your margin to 0 means you'll trade with the top textarea,500 but if your losses ever reach that amount, you'll close your position and preserve that last 0.

Downside: It's hard to find a downside to the Margin Stop. You keep control of your account, even when using an account manager.

Forex money management is essential when trading in the currency markets. And these stops are important backup measures to be used in tandem with your own patience, caution and growing judgment to minimize losses while maximizing your gains.

What is the perfect % of total equity should I use per trade?

What is the perfect % of total equity should I use per trade?

A lot of traders have no clue how to use proper trading sizes per trade especially when they are trading live markets. That is the exact point of mistakes done by most of the traders. These cause them loosing money in Forex. We have to know proper money management & trading plans.

Every trading strategy must be taken into consideration of the maximum percentage of total trading capital that risk should be taken on any one single trade. They shouldn't risk too much money on any given any single trade which is very essential for a trader. The following rules are very important in order to survive financially in Forex trading. Your trading size should not be grater as 1/10th of your account size.

For instance, If your account size is 10.000 Dollar than your trading size can be 1 Lot, (or 10 Dollar per Pip)
On an 1000 Dollar account your trading size should not exceeded 0,1 Lot (or 1 dollar per Pip).
On an 100 Dollar account your trading size should not exceeded 0,01 Lot (or 0,1 dollar per Pip).

To keep these things into simplest form, I repeat:
1 Lot buying/selling are 100.000 Units of a currency. Pip value = 10 Dollar
0,1 Lot buying/selling are 10.000 Units of a currency. Pip value = 1 Dollar
0,01 Lot buying/selling are 1.000 Units of a currency. Pip value = 0.1 Dollar

With an account size of 100 dollar and you trade with pip value of 1 dollar, only 100 pips are needed and your account is empty. You lost all! As you can see to adjust the trading size to your account size is very essential.

But why they are doing this? Here is a psychological effect on trading. First they trade with lower as 1/1000 of account size. Than some losses occurred. Account size melt down to 70%. At this level people changed there risk and trade with 1/300 ( that mean trade size is 3 times now bigger as before) and they loss again. After account size is 50%, suddenly the risk grows exponential, and they trade with 1/100 or less from account size.

Let us see this as an example now with numbers. Suppose we have an account size of 1000 dollar. As I said above, we should not trade more than 1/1000 account size, that's 1 dollar /pip. (0,1 Lot). If we loose 300 dollar and have now an account size of 700 dollar. (70%). At this point we start to trade with 1/300 of account size.2,33 Dollar/pip (300 pip lost and we blow our account). We trade it & and make loss 200 dollar. Account size is now 500 dollar. Now we expanded the risk and trade with 1/100, that's 5 dollar/pip. Now we can't loss more as 100 pips, because at this level our account is going to be empty.

On a 50% account size the chances of losses are so strong for most traders and they will now attempts to recover the lost money with 1 or 2 trades. That's the reason why they blown up their accounts. I will not call this greediness, its only fear of loss. These traders can't accept losses anymore

psychologically. If they really want to survive, they must have to work on proper trading strategy and modify it again! If it's proved, than start trading with very small sizes and tries to win more trades. After winning a bunch of trades they would increase trading size easily.



Some stuffs to be remembered essentially:

To recover a lost from 50% we need to double our account size. Clear? If we start with 3000 dollar account size and we lost 50% (1500 dollar) Our account size is now 1500 dollar. We need the same amount of money which we lost. So we must earn 1500 dollar from trading to reach our trading account size from 3000 dollar. Can I able to make you a clear picture what do I mean? If we don't loose 50% of the account and start with 3K and double our account so we had 6K, but with the same amount of work!

Technical Indicators In Forex Trading - Understanding Their Limitations

Forex traders often look at indicators such as Bollinger Bands, Pivot Points, MACD, Moving Averages and the such to help them determine where to enter or exit trades. Using technical indicators is fine, however many traders overemphasize their importance or just plain misunderstand them.

Many forex traders think that they can simply download an indicator and then mechanically apply it into their trading and do so profitably. This is just a plain illusion. Successful traders realize that there is a lot more to using indicators than just asking them to generate buy/sell signals or pin-point exact entry points. Technical indicators for them represent just one part of their trading strategy.

Let¡¯s take a look at some of the reasons why you should not put all your faith into those sometimes confusing little indicators.

Take Moving Averages (MA¡¯s) for example. They are "supposed" to show the direction of the trend. The most common and often used are the simple 200day MA, 100day MA, 50day MA, 35day MA and the 21day MA but they are only valid on daily graphs. Some forex day traders say that a good signal is when the 50day MA is crossed by the 13day MA and that when this occurs you should trade in the direction of the cross.

The problem with this (apart from the fact that it only works on daily graphs) is that these types of ¡°crosses¡± do not occur often enough for traders to exploit them. This can often lead to a situation where traders are seeing what they thought was a cross now reverse and uncross. Even worse, it can lead to a situation where day traders are "chasing" and trying to anticipate a cross. If you are doing this, you are distancing yourself from the market which you are trying to trade. Not only are you trying to guess what the price is going to do next but you are guessing what the indicator, based on the prices, is going to do next.

Other problems with technical indicators involve issues with the quotes and prices given to you by your broker. Forex brokers are market makers and as such different brokers will give you different quotes and prices at a specific point in time. Naturally, a different price could lead to a situation where different traders, trading the same market have the same indicators giving them different responses. That¡¯s how arbitrary technical indicators can be.

Finally, a lot of these technical indicators were developed by people trading the stock market. With the growth of computers and software packages that incorporate these indicators, technical analysis has become very popular and spread to other markets such as the forex market. What currency traders should be aware of however, is that as these indicators were developed in a time where real time information did not exist. As such, the limitations of technical analysis becomes even more exaggerated in forex trading ¨C not only is technical analysis an interpretation of historical events but it becomes even more so in the forex market, a market moved by real time events.

Conclusion:

Successful forex traders understand the limitations of technical indicators and realize that technical analysis should incorporate just one part of their trading strategy. In a recent international Forex market event visited by the major banks and institutions - the main players that influence the foreign currency market ¨C a survey was done to better understand what analysis they use. The results might be surprising to some tarders. The survey showed that a mere 26% use technical analysis and indicators compared to 41% who said they use fundamental analysis.

Lines of trends, support and resistance

The trendline. A trendline is a main initial element for the price chart analysis. While the market moves in any direction not along a straight line but along a zigzag, the mutual placement of upper and bottom points of those zigzags permits to plot a line connecting the significant highs (peaks) or the significant lows (troughs) of an appropriate zigzag using technical tools of the computer program.

To draw a trendline only two points are necessary and the third one is the contact point confirmation. On a bullish trend chart it should be drawn using troughs, on a bearish  using peaks. The trendline and a line which is about parallel to it and drawn on the opposite side (through peaks on a bullish trend and through troughs on a bearish) form the trade channel. Both lines are then channel's borders.

Lines of support and resistance. The upper and the bottom borders of trade channels are called accordingly support and resistance lines. The peaks represent the price levels at which the selling pressure exceeds the buying pressure. They are known as resistance levels. The troughs, on the other hand, represent the levels at which the selling pressure succumbs to the buying pressure. They are called support levels. In an uptrend, the consecutive support and resistance levels must exceed each other respectively. The reverse is true in a downtrend. Although minor exceptions are acceptable, these failures should be considered as warning signals for trend changing.

The significance of trends is a function of time and volume. The longer the prices bounce off the support and resistance levels, the more significant the trend becomes. Trading volume is also very important, especially at the critical support and resistance levels. When the currency bounces off these levels under heavy volume, the significance of the trend increases.

The importance of support and resistance levels goes beyond their original functions. If these levels are convincingly penetrated, they tend to turn into just the opposite. A firm support level, once it is penetrated on heavy volume, will likely turn into a strong resistance level. Conversely, a strong resistance turns into a firm support after being penetrated. In general, to evaluate the reliability (that is the possibility of a break) of the trade channel borders taking a decision to close or to save an existing position one should govern himself with following rules:

1. A channel is the more reliable the longer it exists. Hence, the solidity of very old channels (e.g. existing more than 1 year) decreased sharply.
2. A channel is the more reliable the more is his width.
3. The resistance may be broken if it is bounced on the background of a growing volume.
4. A steep channel is less reliable in compare to a gentle one.
5. The support may be broken independent on the volume.

Moving Average Convergence Divergence (MACD) Momentum Indicator

The MACD is a great trending indicator that can be used for many daytrading strategies. A bullish market is indicated by the faster-moving average crossing the slower-moving average on the way up. A bearish market is indicated by the faster-moving average crossing the slower-moving average on the way down. On top of that, the MACD has different periods for the fast- and slow-moving averages. The typical default MACD periods are 8, 17, 9 or 12, 26, 9.

The MACD is based on three moving averages, however, they essentially show up as being only two lines. The 8  period and the 17  period moving averages are combined to form the faster-moving average line. The 9  period exponential moving average forms the slower-moving average. In your daytrading strategy, the MACD moving average lines can be read for three pieces of information to give you the buy and sell signals you need for successful trades.

The first type of buy and sell signal you get from the MACD is called a breakout. This breakout is signified by the faster-moving average crossing the slower-moving average. If you were to examine a MACD chart, you would see a few places where this is happening. Like we talked about earlier, when the faster-moving average line crosses the slower-moving average line on the way up, you’ve got a bullish signal. Conversely, when the faster-moving average line crosses the slower-moving average line on the way down, you’ve got a bearish signal. That’s a breakout. There are some traders who will enter or exit a trade based when the line crosses, however, keep in mind that by doing so, you could limit potential profits and take on additional losses.

The second type of buy and sell signal we can get from the MACD is to test for support and resistance. When you’re day trading stocks, you might be told to trade on the cross, but here is something you can add to your strategy instead of just blindly trading at the cross. What you can do is check to see if the indicator lines are moving in the same direction and test the indicator line as being a support or resistance line after the cross.

The last type of buy and sell signal we can get from the MACD is divergence information. When the fast- and the slow-moving average lines move away from each other, the mound on the chart expands. As these lines draw near to each other, the mound shrinks. That is called divergence. Divergence is an important day trading tip that can strengthen your position on a trade if read correctly.

Using the MACD is a good way for experienced day traders to get an idea of when to buy and sell based on averages that give you a logical reason to buy or sell at a particular time.

Simple Successful FOREX Technical Analysis Basics

What are the most simple things you studied or knew in technical analysis that you can use in FOREX trading?, of course most will answer this without even thinking about it, trend lines, resistance and support points and moving averages. The more professional traders will think more about it and would answer Yes, trend lines, resistance and support points and moving averages but who can use them alone successfully in trading FOREX?". Here it is my turn to answer, trend lines, resistance and support points and moving averages are the best simplest ways to achieve success trading FOREX and keep in the positive area always. Just to make it simple we need first to state the definition of these tools and later to know how to use and apply them to our chart in order to succeed and build a real FOREX fortune. 1. Trend Line : Trend line is the line that we can draw between two or more price tops or bottoms on a chart whatever was the type of the chart linear, bars or candlesticks", this line itself which could be an uptrend line which is being drawn between bottoms in a bullish market and it becomes a good support if the price goes south again or a downtrend line which is being drawn between price tops on the chart when market is down and it considered as a resistance when the price turns to up direction. Note: The line which touches more tops or bottoms is more stronger and the signal produced by it is more reliable. 2. Trend Channel : A trend channel is the space between two lines, the trend line and a parallel line to it which is always drawn on the opposite side of the trend line so it is drawn between tops in an up trend direction or through bottoms in a bearish price movement. The trend channel requires some conditions to give an accurate signal, the most important are: to be a wide channel, more wider more reliable and to last more longer. 3. Moving Average : Moving average is a mathematical average of set of prices we can say that a simple moving average (SMA) with value of 5 and applied to close is the sum of close prices for 5 moving bars on the chart divided to 5 (eg. the average of Friday is the sum of the previous 5 days week" on a daily chart divided to 5, while Thursday's average is the sum of the 5 days before divided to 5 and so, the moving average is the line which passes through these averages points", the most important condition for its reliability is its value, more greater value more reliable moving average. Note: I suggest using more than one moving average, 2 or 3 are acceptable. 4. Support And Resistance Points : Support points are the price points were tested more than two times when price was going south and it could not pass it, support points are completely the opposite. These points are being used to measure the probability of price turning at mean points, these points can be decided by using pivot points, fibonacci rates....etc." Note : The more times price touches a point and turn its direction the more stronger it is. How can we apply this to chart and get money, I'll summarize this in the following chart image, it explains itself, it's a chart for GBP/JPY, signal return was 1000+ pips in 2 days: Three moving averages were going south, trend line was broken price in green circle" a good support point 23.6% fibonacci was nearly broken", strong signal, yes? For the chart please visit MoneyTec The best resource for FOREX trading is MoneyTec, - Active Traders Community Forum, Chat. MoneyTec is an online trading community that promotes mature, intelligent & respectful discussion in a positive & safe environment for everyone.

Forex Charts - Make Bigger Profits by Following These Key Points

Forex charts are a great, time efficient and proven way to make bigger profits but most traders don't use them correctly and here we will give you some key points to help you make bigger profits...

Let's look at some key points for more profitable technical analysis with forex charts.

If you look at any forex chart you will see big trends that can last for many months and trend following these can be very profitable and if you want to make money out of them you must understand this key fact:

Most big trends start and continue from breakouts to new highs and lows on the chart and you must go with these breaks - most traders don't. They want to wait for the pullback and of course it never comes and they are left behind. While it appears like you have missed the first part of the move, the odds of continuation are high so go with them.

Always be patient when using forex charts. You don't get rewarded for your efforts or how many times you trade but being right with your trading signal. I know traders who trade just a few times a month yet make triple digit gains - so wait for the right opportunities.

When you have a trend you want to hit always check price momentum is on your side and make sure that you use momentum indicators that show price acceleration in the direction you wish to trade. Two great ones, you can learn, in about 30 minutes are - the stochastic and RSI. These two combined will increase your odds of success by getting the odds more on your side.

Never believe anyone who tells you there is a mathematical formula for market movement - there isn't. If of course there was, we would all know the price in advance and there would be no market. So forget trying to predict and only trade the reality of price.

Its probabilities that you need to understand and like a successful poker player, you won't win every hand - but if you keep trading the odds, you will win long term. When using forex charts, the simpler your forex trading method the better, as simple systems tend to be very robust and have fewer elements to break, than complicated ones.

I have used a simple breakout method which uses trend lines, RSI and the stochastic and made money with it for over 20 years sure, it's simple but it works. Forex charts give you the reality of price before your eyes and you can spot areas of over valuation and under valuation. Humans create trends and they also (due to their emotions) push trends to far up or down in either direction.

You can of course ride trends - but you will also see big price spikes and history tells you they don't last long and taking trades contrary to the majority can be very profitable. Charting is an art not a science and you need to practice your art. The successful captain of a ship uses charts to navigate safely, but he also knows that use them wrongly and he will drown and it's a very similar situation in forex.

The Good News

You can learn forex charting in around 2 weeks and soon be piling up big profits in around 30 minutes a day spotting and hitting high odds trades and enjoying great profits. The good news is forex trading and using technical analysis is a learned skill and one you can master with a little practice.

GFT GLOBAL MARKETS UK LTD., WORLDWIDE LEADERS IN ONLINE CURRENCY TRADING

gftuk.com

GFT GLOBAL MARKETS UK LTD., WORLDWIDE LEADERS IN ONLINE CURRENCY TRADING

GFT Global Markets UK Ltd (GFT Global Markets) provides full-service derivatives trading to individual and institutional customers throughout the world. GFT Global Markets is regulated in the U.K. by the Financial Services Authority (FSA), and adheres to the highest levels of professional conduct and integrity in the financial service industry and believes in treating customers fairly and professionally at all times.

Our staff are trained to provide clear information on the services that GFT Global Markets offer and we have a commitment to respond to all queries within the shortest timeframe possible.

In our commitment to the highest levels of fair and professional customer service and support we are backed by the industry-leading technology of DealBook® 360, which was designed for trading online foreign exchange, contracts for difference and financial spread betting.

GFT Global Markets was launched in 2006 with the aim of providing both U.K. and international customers with a highly dedicated financial CFD, spread betting and Spot Forex service for the global financial markets. GFT Global Markets is a wholly-owned subsidiary of the leading U.S. forex and futures dealing firm Global Futures & Forex, Ltd. GFT Global Markets is a sister company to the world-leading online forex dealing firm Global Forex Trading, Division of Global Futures & Forex, Ltd. This advantage alone allows GFT Global Markets to leverage the same pioneering trading technology and dealing practices that Global Forex Trading has employed since 1997. GFT Global Markets provides the same standards of award-winning trading software as GFT through DealBook® 360, DealBook® WEB and DealBook® Mobile.

Finding the Right Forex Trading Software

Forex Trading is quickly becoming the hottest niche in the trading world. The regular market has become so tumultuous that the best traders in the industry are walking around scratching their head on a regular basis. If you were ever going to get involved in forex trading, now is the time. However, you are going to have to find the right forex trading software to be successful.

If you have familiar with the regular market, you are quite aware of how quickly the market changes. This is even more so true in forex trading, but the patterns of the changes tend to be much more recognizable as you are dealing in currency.

Now while currency has a reputation of being extremely volatile, it also follows patterns over times that you can spot. The challenge is in being able to spot the trend in time to be able to take advantage of it. While there are still a few horses around that have the gift, few people can pick up trends like software can.

Unless you are able to stand at the computer 24 hours a day, it is unlikely that you are going to be able to be successful trading currency unless you have software that can do your tracking for you. While you are sleeping, the software is busy crunching numbers and evaluating trends for you. When a good trend shows up, you can have the program send you an alert that will allow you to verify the trend and take advantage of the trade.

Of course, even the best program is going to put up a dud every now and again. Sometimes there are false trends that even the computer will misread. The goal of course is to find the right software that will allow you to win on more trades than you lose. If you can do this, the odds are in your favor to make a nice profit over the long run.

Something else to keep in mind as you follow this market is to make sure that you wait for the trend to be verified before you jump on it. You do this so you don't get caught up in one of those false trends. By taking that little extra time, you are protecting yourself and your investment.

The big knock on doing this is that you are not going to be able to take advantage of the lowest support level if you are going long or the best resistance price if you are going short. In the end, you have to look at if the risk is worth the reward. By trading in this manner, you may not make the maximum profit on the deal, but you are much more assured of actually making a profit every time you do a deal.

Forex trading is a great way to lock up that future and to make a living in the current economy. If anyone tells you that it is going to be an overnight get rich quick deal, run away. What you need is a good, reliable program that spots good deals that you can make money from time and again.

Make Money And Minimize Your Losses Trading On The Forex Market

If you are interested in trading on the Forex one of the first things you will need to do is find a broker. All Forex trading is conducted through a broker who will provide the trading platform and cover the leverage you choose. Your Forex broker will collect a small commission on your trades but you trade the currency anyway you want. Choosing a broker is an important decision; you will be trading your money through this broker so you need to make sure they are legitimate. The broker you choose should understand your needs as a trader and do their best to help you make money.

Ultimately how you trade is your choice so it is good to set up some trading rules to minimize your losses and maximize your profits. First of all setting up a stop loss is very important. The stop loss is a point where you will get out no matter what. For beginners to Forex trading, this can be difficult because there is always the hope that the market will turn around at the last minute and lots of money will be made. This is an important rule to stick with though because it can save you from losing it all. This is where the discipline in Forex trading comes in; you should trade with your head not your emotions.

The next rule is to develop a clear point at which you will take your profits. Some Forex traders go by a straight percentage of profit and some use technical market analysis as their guide. You should set the profit you are going to take before claiming a position. If you wait it is too easy to convince yourself to stay in waiting for another percentage point before getting out. This is also a difficult thing to do, but it must be done if you plan to increase your wealth consistently trading in the Forex market. Most experienced Forex traders agree that when you stick to your trading rules this will eventually yield a profitable currency trading system.

The Forex is a very liquid market; money is made in seconds and lost in just as little time. The Forex operates twenty four hours a day, five days a week. If you are wanting to buy or sell there is always someone to trade with. Different from other financial markets, the Forex market doesn't have a physical location or a central exchange. The Forex operates through a worldwide network of banks, individuals, and corporations trading one country's currency for another. Currencies which are widely traded include the US Dollar, the Euro, British Pound, Japanese Yen, Swiss Franc, Canadian Dollar, and the Australian Dollar. Four currency pairs of this group are normally traded for investment purposes: US dollar against Swiss franc, Euro against US dollar, US dollar against Japanese yen, and the British pound against the US dollar.

There is money to be made on the Forex but it is also easy to lose money. Before you begin trading, you should do your research and learn about how currency trading on the Forex works. It is also important to take a good look at your finances so that you can use good judgment when choosing how much money you can afford to invest in Forex trading.

The Foreign Exchange Market Differs From The Stock Market

The alien interchange market is likewise known as the FX market, and the forex market. Syndication that takes place amongst two regions with dissimilar currencies is the basis for the fx market and the background of the Syndication in this market. The forex market is over thirty years old, traditionalistic in the early 1970's. The forex market is one that is not grounded on any one business or laying out money in any one business, but the retail and retail of currencies.

The divergence amongst the stock market and the forex market is the tremendous retail that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. There is is much higher than the cash traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial foundations and those similar types of foundations from other countries. The

What is traded, purchased and sold on the forex market is a thing that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is really going to be cash. From one currency to another, the accessibility of cash in the forex market is a thing that can take place fast for any investor from any country.

The divergence amongst the stock market and the forex market is that the forex market is worldwide, worldwide. The stock market is a thing that takes place only within a country. The stock market is grounded on businesses and products that are within a country, and the forex market takes that a step farther to include any country.

The stock market has set business hours. In general, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open in general twenty four hours a day because the tremendous number of countries that have part in forex retail, buying and retail are located in galore dissimilar times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market retail occurs.

The stock market in any country is going to be grounded on only that countries currency, say as an illustration the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you're involved with galore types of countries, and galore currencies. You will find references to a variety of currencies, and this is a big divergence amongst the stock market and the forex market.

Painless Business Opportunity that can be happening in few Hours

Did you ever consider making money in Forex trading as a home based business? I did and I was let down embarking, however, after doing some home effort, I was absolutely certain with this brainstorm. I consider my initial losses in Fx trading nothing but a startup expense that's linked with any venture you can think of. Not here forever all my sorrows.

One affair that I like about the Fx trading business is that you can rehearsal at no cost for as long as you desire, and one more feature is that you can pull together as much information about as you can perhaps cope with before you leap into this venture. Understanding, practice and some slight startup funds is all you need. If you do not cover the last, or the necessary capital to set up an account then all you have to do is study to be gainful in demo account and convert a wealthy comrade of yours to go in mutual undertaking with you, many are doing this. You supervise the account for your rich associate who's wealth is gathering nothing but dust someplace even in the bank account your friend's savings would barely make him 4% a year. if you develop into a profitable Currency trading trader you can make your friend this type of yield every solo business day instead of an entire year after you capture yours. A Currency trading account administrator is at liberty to have more than 30 % of all returns on original invested capital. You can gain knowledge of Forex trading by visiting unbiased websites that endow with loads of information regarding Currency trading all for free, you can get the ready established approach or wait until you develop yours.

One such set trading methods that you can go ahead and take hold of it to diminish the time required to turn out to be a thriving currency trader is the Forexbody procedure. This approach is so unfussy that anyone without even the slightest clue about Forex can be taught, first by browsing the valuable neutral information and watching the free Metatrader screen recordings on the forexbody website. Particular lexis about the Forexbody metatrader screen recordings, these measures are not for babypips guys and girls, these videos demonstrate remarkably very hard-hitting forex trading that can only be done by those who have become very good at the game well. Picture an account made twice larger in 30 minutes, yes screen recordings on Forexbody site illustrate just precisely this breed of exertion, but on the other hand, as tyro you get careful guidance on the site and recommendations on trading the easy mode to achievement.

The website has Currency trading signal by sms that you can evaluate for free. the signal has a victory rate of over 93% and if you are to be fulfilled with just the eminent 10 pip yield limit per deal the success rate would exceed 98 %. Even trades that turn out to be losers revolve to winners when given enough time. There a abundance of information on how to be thriving using Forexbody two times a day signal and there are 10 rules you have to abide by and according to Forexbody source, you can twofold your account every 45 days with low risk trading habits. all you need is self discipline and a robust will to tug the trigger immediately upon getting trading signal.

To be able to meet with ceaseless earnings you need to instigate the low risk approach, with this strategy a small account can be on track and full-grown over the period of 4 to 6 months to a decent amount where it can engender as much as $3000 in unbroken take-home pay, another time without taking piercing risks, while parting room for further expansion for further and unlimited upsurge in income.

The Wrapping up, If you ever thought about having your own business and working from the soothe of your own residence, you got to give this a test, It will not cost you any money to test the whole lot on virtual accounts that you can get free from plenty of Fx trading brokers worldwide, but you have possibility to be your own boss in a short time and the attempt on achieving the American ambition, stop commuting and fling that dress rules away.

Profitable Trades in Forex

Currency trading compared to trading stocks gives you big advantages.

The first real advantage is that the amount of money you need to trade is extremely small. With some brokers, as little as $100 allows you to control $10,000 of a currency. Compare that with purchasing stock on margin. If you were to purchase $10,000 in stock, you would have to have a minimum margin of $5,000. That's a huge difference and a giant advantage for you.

The second advantage to currency trading is that the currencies often trend for weeks, months or sometimes even years. Just catch the trend and you're on your way to some nice profits.

The third advantage is that currencies don't suddenly gap up or down with the news of the day as stocks do. There are no accounting problems, scandals, broker downgrades, earnings rumors, insider trading or take over bids. There are no new product announcements or balance sheet issues to worry about.

Another big advantage is that you can trade currencies 24 hours a day, almost 6 days a week.

Currencies trend, but they also fluctuate against each other. Since a pip, the smallest movement of a currency is $.00001and a pip in the mini contract represents $1 of profit or loss, then you can see that with very little movement, you can make or lose some real money.

Profitable trades in forex are relatively easy to come by, but that doesn't mean that as a newbie, you should just jump into the action. As with any money making endeavor there are the tricks of the trade. You have two ways to learn these tricks. You can open an account, start trading and learn your lessons the expensive way, by losing.

Or, you can let a seasoned trader show you what to do and when. In my view, the small amount you have to pay a seasoned trader to show you the ways of the currency market, especially with the convenience of the internet, is money well spent.

Here's where the choices get interesting. There are trading programs that use "bots" or automatic trading signals. The problem with bots is that the market changes its characteristics from time to time and automatic trades that work one day will destroy your account the next day. With bots, you're totally on your own when the eventual losing trades come your way.

In my opinion, the only way to build your trading knowledge is to let a seasoned pro show you what to do.

Here comes the best part. Now you can learn under the wing of a professional trader FREE for 30 days. No credit card needed. After that, if you chose to continue trading under his guidance, your trading profits should more than more than cover your costs.


Quince Bishop

10 factors to consider when choosing a forex broker

There are a number factors to consider when you choose a Forex broker and to help you do so here is a list of 10 of the key factors you should consider when you select a Forex Broker that will suite you.

1. Reputation This may seem like an obvious place to start but surprisingly this is quite often overlooked in people's quest for profits. A simple place to start is to check out several Forex forums to see what other traders have said about their experiences with brokers and this will help you to get a good idea of the general user experience as well as details about the level of service and support you are likely to get from particular brokers and probably most importantly, payments.

2. Foundation and legitimacy Most Forex brokerages are usually either associated with or are part of a bank or large financial organization but with the rising number of online Forex brokers there are a number of checks concerning their foundation that should be made. Brokerages that are associated with large financial organizations or banks are not only backed up by funds from their Forex trading but also have other income streams and investments which means they don't have all their eggs in one financial basket. Having fund insurance against fraud or bankruptcy is good to have as this means you aren't relying just on being paid from their backup investments which might otherwise mean a longer wait for your money should they be experiencing any financial difficulties. Are they registered with the appropriate regulatory organizations? Legitimate Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC) Note: It is also worthwhile checking out any parent company's website for any financial information that can assure you that your funds are covered and secure.

3. Execution Quite simply this is how they conduct their business. There are two main business models that Forex brokers use, Electronic Communication Network, (ECN), and Market Maker. The ECN model is one where a Forex Broker provides a marketplace for Market Makers, traders and banks to enter their competing bids and offers into this trading platform and have them filled by liquidity providers. All trades made in this environment are made in the name of the ECN broker which means that your trades are all performed completely anonymously. The Market Maker model provides pricing and liquidity for a particular currency pair and then stands ready to buy or sell that currency at the quoted price. A market maker takes the opposite side of whatever your trade is and has the option of either holding that position fully or to partially offset it with other market traders in order to manage their aggregate exposure to their clients. Other aspects of the Forex brokers' execution of their business are: Do they use automatic execution for trades? If they do not have this as part of their model then how fast is their average order execution? How much are you allowed to trade without having to request a quote? Do they offset client trades?

4. Trading Platforms Forex trading is a rapidly moving environment and it pays to have a home computer that can keep up with the processing involved because time lag could mean you are not trading on the latest figures. If your current computer is not as up to date as you would like it to be and you are not in a position to bring it up to a faster processing specification or replace it with a faster workstation, then it is worth considering only using Forex Brokers that operate the ECN platform because this software requires less processing power to run at full speed as it is simpler software Some Forex brokers have restrictions on the number of currency pairs you can trade so check how many of these you are allowed to trade. Get used to the trading platforms and the features they have, such as one click trading, mobile trading, orders types and other features. The best way to do this is to sign up for a Demo account as these use the same software you would use with a live trading account. These accounts are free and if you are considering several Forex brokers then why not try them out with a demo account to see which one you prefer?

5. Account Size If you are starting out you aren't going to go gungo-ho and open large live trading accounts that have high minimum trades, but having said that you might want to increase your amounts later and so need some flexibility. Ascertain what the minimum trade size is as well as whether or not you can adjust the standard lot traded. Unsurprisingly the minimum account opening balance a broker requires is important in deciding which broker to use. It is also very worth checking whether or not unused equity will earn you interest.

6. Spread The spread is the difference between the ask price (the price you buy currency at) and the bid price (the price you sell it at). These are quoted in pips. An example of this is: If you are trading the currency pair US dollars and Euros you might see a spread like this, 1.2700/05, the spread is the difference between 1.2700 and 1.2705, or 5 pips. In order to make the most from your trades you need to know the brokers spread so find out if they use a fixed or variable spread? How tight is the spread? Is the spread larger for small accounts?

Note: Fixed or variable? This choice depends on your trading pattern. If you make trades only or mostly influenced by news announcements--when markets tend to be volatile--you might be better off with fixed spreads. Although this is only if the quality of execution is good. Some brokers have different spreads for different clients. Clients with larger accounts or that make larger trades can receive tighter spreads. Clients that are referred by an introducing broker might receive wider spreads so as to cover the costs of the referral. Other brokers though might offer everyone the same spread regardless of whom they are or the size of their account. It can be difficult to determine a company's spread policy so the best way to find out is to try various brokers, or talk to other traders who have, and of course check out the forums.

7. Slippage Slippage is the time between when your order is placed and the transaction is completed, so find out how much slippage can be expected for fast and normal moving markets.

8. Commissions This is probably the simplest thing to find out. Check your prospective Forex broker's commissions to see if they are built into the spread, as with most Market Makers, or if they charge a separate commission.

9. Margin The margin is the amount of deposit required to either open or maintain a trade position. Margins are either "free" or "used". A used margin is the amount which is being used to maintain a position that is open, and a free margin is the amount that is available to open a new trade position. Check what the broker's margin requirement is. Is this margin the same for both standard and mini accounts? Does the margin change for different currency groups or change for different days of the week?

10. Rollover Policy Rolling over will either accrue you interest or cost you interest depending on whether you bought a currency with a higher interest rate or sold a currency with a higher interest rate. Check the broker's conditions or requirements regarding earning rollover interest. There may be a minimum margin requirement before can earn interest on overnight positions so make sure you know your position.

How to develop a profitable forex trading stratey

Before you plunge into one of the most liquid, unpredictable and profitable markets in the world, there are some things that you should know about before putting your money in the hands of a forex broker. When money is involved, there are a lot of things you should consider, and these are the key to developing the best Forex strategy, for you to start making a profit. For instance, there is a great deal of money management that must be put in place before you run off with a lot of hope in your pocket. Hope is not going to pay the bills. Your money is and you need to know when and how much of your money you are going to use.

Always set yourself some realistic targets and limits to ensure that you do not spend too much money. Also, do not fall prey to the gambling endemic that is afflicting many Forex traders - this means they simply cannot stop trading no matter how much they loose and they often make irrational decisions in order to 'win' back the money that they have lost. Set yourself some parameters and stick to them, you will regret the fact that you account has run dry and you start to owe the brokerage a sum of money. Also, always have some risk capital on hand so that when things do go wrong, you will be able to bail yourself out. The total sum of your investment and risk capital should be an amount that you are able to afford.

Nobody should go into trading with their life savings in tow. The capital you put into the commodities market should be capital you can spend and if you do lose, will not have an adverse affect on your life style. That said, Forex trading is all about watching market patterns and market psychology. Unlike normal and traditional commodities trading, many people would say that the Forex market falls into a pattern when it comes to either a crisis or an upheaval within currencies. Issues like inflation, political violence and economic decisions can adversely affect the performance of the currency pair you have chosen. But there is always a pattern and this pattern is the structure of many trading strategies of experienced investors. For example, you must learn that there are many 'safe' currencies in the market that investors flock to when there is wind of a calamity in global economies. This is just one aspect.

Market psychology is ruled by major decisions my collective moves in the market. Because of the fact that huge multicontinental banks are the biggest driving forces within the FX market, they have pre planned moves when situations come up. Your job as an investor is to read the signs and react accordingly. The good thing about Forex is that is a very liquid market, so you can pull out any time you want - or on the flip side can invest in a click of a mouse. With these in mind when investing, you will have the key to developing the best Forex trading strategy.

The Forex Trading Basics

Trading is probably as old as mankind itself. It's been there since man learned that he could trade his extra stone knife and five arrow heads for somebody else's nice warm fur blanket. These days we call it bartering, but it's the same process.

And these days we've gotten more sophisticated with our trading. Now we use something called money to stand in for the blankets and the knives, but we're still trading our ability to work and produce something useful in exchange for somebody else's goods that we want.

But now, trading is not only about goods or services, it has grown into something much more than that.

Now we're trading one region's money for another region's money because we've learned that their relative values can vary, sometimes significantly. The first enterprising souls to notice this were the world's first currency traders, taking their profits from the buying and selling of actual banknotes and coins.

But today the whole process has been formalized into what we call the Foreign Exchange (or Forex) market. And it has attracted a lot of action. Up to $3 trillion a day worth of action, in fact.

Forex trading simply involves the buying and/or selling of different foreign currencies in the global market. Many investors today don't consider it enough to have a portfolio stuffed only with bonds, mutual funds and stocks.

One of the strongest appeals of the Forex market is its 24-hour open door. On the world clock, a trading day starts in Sydney, Australia and steps from time zone to time zone around the world until it reaches New York city, the last market to open each day. And it does this five days a week, closing only on the weekend.

Almost every country has its own currency, but on the Forex market, it's mostly the so-called "major" currencies that are traded. These currencies are highly regarded because their issuing countries are politically and economically more stable than most other currencies (most of the time).

The major currencies that are traded in the FX market are the Euro, the British Pound, the Japanese Yen and the Swiss Franc, as well as the dollars of Canada, Australia and the USA.

Most people, when they first learn of Forex trading, find it all a bit strange. Typically, money is used to buy goods and services, not other types of money. However, it's not really all that hard to understand. Just think of traveling to another country. Once you arrive, you go to a currency exchange or a bank and trade your dollars or Euros to buy ringits or yen. Then when you return home, you do the same in reverse. Sometimes the value has changed between the two exchanges, and you make a small profit or lose a bit.

Well, that's exactly what a Forex trader does, but he does it much more often, and usually with much larger sums of money. Also, he's not doing it because of travel but because he believes he foresees a coming shift in the exchange rate. In other words, he sees an opportunity to make a profit and seizes it. If he knows what he's doing, the profits can be both big and consistent.

So how do you get into the Forex market?

It's surprisingly easy to enter, although it's not quite as easy to rack up steady profits.

You'll need a computer and fast Internet connection. You'll also need seed money to cover your first trades. Minimum deposit requirements vary, but considering the opportunities available, even the higher entry fees are surprisingly low.

You can choose from among many software programs available for logging in to your account and placing your trades. The software also allows you to receive alerts on market conditions, rates, and other important information. The more sophisticated software can recommend when to buy or sell.

Forex trading can be an exciting way to make money, but when done in the wrong way, it can get very expensive. Learning what you're doing before you start trading is crucial. Do your research and your due diligence. Learn what the business is about. Set up a dummy account with a broker and do lots of paper trades so that you fully understand the entire process. Stay with this long enough to become comfortable.

In addition, read comments and advice from other traders... many other traders. It's important to have a strong grasp of the strategies you'll need day-in and day-out. This is a business, and it's important that you treat it with the respect that a sophisticated, highly profitable business deserves.

This mindset of professionalism and responsibility are fundamental to any success you expect to build. Without such a mindset, you're nothing but another gambler and you'll lose more than you win.

Forex trading is more risky than stocks and bonds. But it also holds out the promise of much higher returns. Lightning can strike within seconds or minutes sometimes.

Don't ever forget, ordinary mortals can take part in Forex trading. Just because 98% of all trading is done by huge financial institutions and multinationals, don't think there won't be any "left-overs" for you. People from all walks of life are involved in that other 2% of Forex trading. Consider - just 2% of Forex's daily $3 trillion volume leaves some very large chunks of opportunity up for grabs.

When you go looking for a system or strategy to guide your trades, don't just seize the first one you find. Do your homework. Take advantage of free trial versions of software. Look for customer testimonials. And after carefully considering all the factors involved, you can choose a system for your trading.

Another important factor - check out the brokers and choose one who can effectively help you devise a trading strategy that fits your goals and your personality.

If you truly want to make it big in the Forex market, use all available resources to learn your new business well. The average newcomer to Forex trading is impatient and wants to go straight to the "good stuff." Their impatience assures they'll never get to the good stuff and instead suffer mainly losses and disappointment.

Be determined. Be disciplined. Take the long-term view always. This will instantly set you apart from the losers. Once you have a good, solid knowledge of Forex trading basics, coupled with a well-tested strategy, you have a much better than average chance of making consistent profits in currency trading. After all, isn't that exactly what you're aiming for?

Reading a Forex Quote

Total newbies to the foreign exchange market can find reading a Forex quite intimidating (even baffling) at first. In fact, this is the most common initial hurdle. The quote is brief, but it packs in a great deal of useful information. And although it doesn't make a lick of sense to a newcomer, here's a quick, simple explanation of what it means.

A Forex quote is always based on a pair of currencies, where you're simultaneously selling one currency and buying another. And there are two prices, one for selling and the other for buying (bid price and ask price). When reading a Forex quote, it might typically look like this: USD/JPY 106.52/56

The first currency is called the base currency and the other is the quote currency. The base currency value is always 1 (in this case 1 US dollar). The number in the quote tells you how many of the quote currency (Japanese yen) you can buy with one US dollar.

And that number - 106.52/56 - is a shortened version of two numbers (106.52 and 106.56). The lower number is the bid price; the other is the ask price. The bid price shows how much a dealer will buy the base currency for. The ask price shows how much a dealer is willing to sell it for.

If you saw 106.52/56 when reading a Forex quote, it would mean that you could sell US dollars and receive 106.52 yen per dollar. On the other hand, if you wanted to buy US dollars, you would have to pay 106.56 yen for each dollar.

The difference between the bid price and the ask price in a Forex quote is called the "spread," and each tiny 0.01 unit is called a "pip." In our example, the spread for our USD/JPY quote is four pips. The spread for the most commonly traded currencies is usually that small. In general, you'll do most of your trading in US dollars, Japanese yen, Great Britain pounds, Euros, Swiss francs or Australian dollars. Also please keep in mind that when the competition really heats up some spreads will be as small as one pip.


On the other hand, for less heavily traded currencies, you may run into much larger spreads. But don't think that a small spread means tiny profits (or losses). When you're trading hundreds of thousands of units, even that one pip spread can mean big money.

Let's say you're dealing with just 100 US dollars. Selling your hundred dollars for 10,652 yen and buying them for 10,656 yen only amounts to a four yen difference. But most Forex traders will be dealing with amounts of 100,000 US dollars (or many multiples). So now we know, when reading a Forex quote, that even such an unimpressive little four-pip spread amounts to considerably more (at 4,000 yen, and probably several multiples of that).

And of course, similar trades may be repeated throughout the day and the week. This means that anytime you're reading a Forex quote, you'll recognize that this tiny little spread is more important than its meager size at first suggests.

Forex Candlestick Learning

Candlestick patterns are the oldest Forex analyzing tools, developed by Japanese in the eighteenth century with the object to follow the rice sell.

They used to draw the bars representing the trade of each day, mentioning the opening, highs, lows and closing rice trades.

They color the distance between the opening and closing of trade in a rectangle shape, so that each trading bar would look like a candle that is how it got the name candlestick patterns as we call it today.

With this idea, an image might have formed in your mind somewhat resembling the candles. The technique is still valuable after centuries and move toward to the western world at the start of the 20th century.

Now, it has reached to a point where most of the trading systems offer candlestick chart patterns for examining Forex trends.

To note, each candlestick bar that has the final price greater than the opening price is colored with lighter color to make the difference while the dark color candles symbolize bars where the opening trade is higher than the closing trade represented by the red color.

Now a-days, the Forex trading systems provides the color customization facility so that you can change color of the candlestick charts as per your likings.

The candlestick pattern is the oldest Forex analysis tool that has gained the attention of several traders and widely implemented tool in today's Forex trading environment.

Last Bank Standing - The Wall Street Mega-Crash

Dateline Washington, October 19th (get it?) 2010: the Peoples Bank & Trust of America has now established itself as the only bank of any kind in the USA, totally owned and managed by the US House of Representatives. A 2/3 majority must now approve all investment banking transactions; your district representative's staff reviews individual mortgage applications; and all 401(k), IRA, and remaining employer pension assets have been rolled into the Social Security Slush Fund.

Only federal and state elected officials are exempt from the 45% all purpose Income Tax. The estimated time to bring new companies public is 4.5 years; all individual account dividends and interest are paid directly into your IRS "grabber" account; CEO's salaries are limited to 50% of the amount paid to a first year congressman, and any government budget shortfalls are withdrawn from corporate earnings before any corporate obligations can be dealt with.

All employees receive the federal mandated minimum wage, except senior executives who are limited as mentioned above. Scary? This is a scenario that could play out if Congress (or the SEC) does not come to the rescue of the credit markets. You missed your opportunity to help stop it, but chances are a fix is on its way.

How many more businesses, jobs, and hopes will be killed by this irresponsible Congress? When will the average blogger realize that when a corporation fails, we all suffer? One would think that the informed and enlightened could take time out from their texting for a little research and education. Instead, they show their power by influencing public opinion numbers and the marshmallow politicians who worship them. As economist Irwin Kellner and I have pointed out, this is no bailout and we are not nearly approaching a recession.

Kellner's September 28th Market Watch article points out ten major differences between now and then: (1) In 1929, the DJIA plunged 40% in two months vs. around 30% in about a year. (2) In 1933, the jobless rate was 33% vs. 6% today. (3) The GDP shrank 25% then, but has increased 6% now. (4) Consumer prices actually fell 30% then but haven't ever since.

(5) Home prices dropped 30% then, but only 16% from the recent bubbly highs. (6) 40% of all mortgages were in default then vs. only 4% now. (7) 9,000 banks failed in the 1930s compared with just 25 or so (bigger and broader based ones) recently. (8) The Federal Reserve reduced the money supply, (9) raised interest rates, and (10) raised taxes on foreign imports.

Further, Kellner points out, we now have automatic stabilizers, deposit insurances, and market trading restrictions as protective elements. Today's Congress however, has never been good at connecting dots, has accomplished nothing under an unpopular president, and is ignoring its role as the primary creative force in today's problems. This transfusion is needed because: bad laws have obscured the values on financial institution balance sheets, and have created a clot in the credit arteries that keep the economy alive.

Educate yourselves on the Accounting Rule's that require institutions to book paying assets at pennies on the dollar. Find out why institutions are afraid to loan money to one another--- over night, at any rate of interest--- strangling the credit markets.

Doing nothing is killing jobs, killing companies, and deferring retirements for those who were counting on 401(k) and IRA dollars to provide them with income. Congress, of course has an old-fashioned pension plan, so it is unaffected by such financial realities.

Investigate the relaxation of lending standards that Congress orchestrated over the past few administrations, before blaming the companies that then extended credit to many speculators and other buyers who falsified application papers. Learn how the SEC was prohibited from regulating the CDOs and other multiple-leveraged credit market speculations. There are as many culprits outside the corporate executive suite as in it.

Congress is bursting with pride over bringing some of the Rich and Famous to their knees, and capping some of their obscene compensation arrangements at still shareholder pillaging levels. I've spoken often about how these salaries need to be controlled. But the multi-level-mortgage-marketing schemes that Congress encouraged must be unbundled somehow, and a buy out is the proper vehicle.

Congress has punished the entire world with its attack on Wall Street, and both parties are to blame. Representatives of the states listed below voted "no" to the credit transfusion, causing death and destruction that, in many instances, cannot be recouped. We have to replace them with better decision makers, representatives who can think in economic terms when they have to.

The number and letter code after the state designation indicates the number of representatives and their party: AL-1R, AK-1R, AZ-4D4R, CA-15D9R, CO-2D2R, CT-1D, FL-1D13R, GA-4D7R, HI-2D, ID-1R, IL-4D5R, IN-3D3R, IA-1D2R, KS-1D2R, KY-2D2R, LA-2D3R, ME-1D, MD-2D1R, MA-3D, MI-3D6R, MN-2D2R, MS-3D, MO-2D3R, MT-1R, NE-3R, NV-1D1R, NH-2D, NJ-3D4R, NM-1D1R, NY-3D1R, NC-3D5R, OH-3D7R, OK-3R, OR-3D, PA-3D7R, SC-1R, SD-1D, TN-1D4R, TX-8D14R, UT-1D1R, VT-1D, VA-1D5R, WA-1D3R, WV-1R, WI-1D2R (Names withheld, but available from the author.)

On Friday evening, candidates Obama and McCain gave their support to the Capital infusion, but neither bothered to explain why--- a huge audience was ready to soak up the information. Over the weekend, both attended meetings to support the plan and to generate support from their respective parties.

Is there enough time left to find a hero?