Using Technical Indicators: Bollinger Bands & MACD

Using Technical Indicators: Bollinger Bands & MACD
A good understanding of the basic tenets of technical analysis can vastly improve one's trading skills.When using technical analysis, price is the primary tool. Simply put, "everything is already in the rate." However, technical analysis involves a bit more than simply staring at price charts hoping to find a "yellow brick road" to a bonanza payday. Along with various methods of plotting price action on charts by using bars, candlesticks, and Xs and Os on point and figure charts, market technicians also employ many technical studies that help them to delve deeper into the data. By using these studies in conjunction with their price charts, traders are able to build much stronger cases to buy, sell or remain on the sidelines than they could by simply looking at price charts alone.Here are descriptions of some of the more widely used and time-tested studies that technicians keep in their toolboxes:Bollinger BandsBollinger Bands are volatility curves used to identify extreme highs or lows in relation to price. Bollinger Bands establish trading parameters, or bands, based on the moving average of a particular instrument and a set number of standard deviations around this moving average.For example, a trader might decide to use a 10-day moving average and 2 standard deviations to establish Bollinger Bands for a given currency. After doing so, a chart will appear with price bars capped by an upper boundary line based on price levels 2 standard deviations higher than the 10-day moving average and supported by a lower boundary line based on 2 standard deviations lower than the 10-day moving average. In the middle of these two boundary lines will be another line running somewhat close to the middle area depicting in this case, the 10-day moving average. Both the moving average and the number of standard deviations can be altered to best suit a particular currency.Jon Bollinger, creator of Bollinger Bands recommends using a simple 20-day moving average and 2 standard deviations. Because standard deviation is a measure of volatility, Bollinger Bands are dynamic indicators that adjust themselves (widen and contract) based on the current levels of volatility in the market being studied.When prices hit the upper or lower boundaries of a given set of Bollinger Bands, this is not necessarily an indication of an imminent reversal in a trend. It simply means that prices have moved to the upper limits of the established parameters. Therefore, traders should use another study in conjunction with Bollinger Bands to help them determine the strength of a trend.MACD - Moving Average Convergence DivergenceMACD is a more detailed method of using moving averages to find trading signals from price charts. Developed by Gerald Appel, the MACD plots the difference between a 26-day exponential moving average and a 12-day exponential moving average. A 9-day moving average is generally used as a trigger line, meaning when the MACD crosses below this trigger it is a bearish signal and when it crosses above it, it's a bullish signal.As with other studies, traders will look to MACD studies to provide early signals or divergences between market prices and a technical indicator. If the MACD turns positive and makes higher lows while prices are still tanking, this could be a strong buy signal.Conversely, if the MACD makes lower highs while prices are making new highs, this could be a strong bearish divergence and a sell signal.One final word of advice: Don't get too caught up in the mathematics involved in putting together each study. It is much more important to understand how and why studies can and should be manipulated based on the time periods and sensitivities that you determine are ideal for the currency you are trading.These ideal levels can only be determined after applying several different parameters to each study until the charts and studies begin to reveal the "details behind the details."

Understanding Fundamental Analysis

Understanding Fundamental Analysis
Fundamental analysis refers to the study of the core underlying elements that influence the economy of a particular entity. It is a method of study that attempts to predict price action and market trends by analyzing economic indicators, government policy and societal factors (to name just a few elements) within a business cycle framework.If you think of the financial markets as a big clock, the fundamentals are the gears and springs that move the hands around the face. Anyone walking down the street can look at this clock and tell you what time it is now, but the fundamentalist can tell you how it came to be this time and more importantly, what time (or more precisely, what price) it will be in the future.There is a tendency to pigeonhole traders into two distinct schools of market analysis: fundamental and technical. Indeed, the first question posed to you after you tell someone that you are a trader is generally, "Are you a technician or a fundamentalist?"The reality is that it has become increasingly difficult to be a purist of either persuasion. Fundamentalists need to keep an eye on the various signals derived from the price action on charts, while few technicians can afford to completely ignore impending economic data, critical political decisions or the myriad of societal issues that influence prices.Bearing in mind that the financial underpinnings of any country, trading bloc or multinational industry takes into account many factors, including social, political and economic influences, staying on top of an extremely fluid fundamental picture can be challenging.At the same time, you'll find that your knowledge and understanding of a dynamic global market will increase immeasurably as you delve further and further into the complexities and subtleties of the fundamentals of the markets.Fundamental analysis is a very effective way to forecast economic conditions, but not necessarily exact market prices. For example, when analyzing an economist's forecast of the upcoming GDP or employment report, you begin to get a fairly clear picture of the general health of the economy and the forces at work behind it.However, you'll need to come up with a precise method as to how best to translate this information into entry and exit points for a particular trading strategy.A trader who studies the markets using fundamental analysis will generally create models to formulate a trading strategy. These models typically utilize a host of empirical data and attempt to forecast market behavior and estimate future values or prices by using past values of core economic indicators. This information is then used to derive specific trades that best exploit this information.Forecasting models are as numerous and varied as the traders and market buffs that create them. Two people can look at the exact same data and come up with two completely different conclusions about how the market will be influenced by it.Therefore is it important that before casting yourself into a particular mold regarding any aspect of market analysis, you study the fundamentals and see how they best fit your trading style and expectations.Don't succumb to "paralysis by analysis." Given the multitude of factors that fall under the heading of 'The Fundamentals,' there is a distinct danger of information overload. Sometimes traders fall into this trap and are unable to pull the trigger on a trade.This is one of the reasons why many traders turn to technical analysis. To some, technical analysis is seen as a way to transform all of the fundamental factors that influence the markets into one simple tool, prices. However, trading a particular market without knowing a great deal about the exact nature of its underlying elements is like fishing without bait. You might get lucky and snare a few on occasion but it's not the best approach over the long haul.For forex traders, the fundamentals are everything that makes a country tick. From interest rates and central bank policy to natural disasters, the fundamentals are a dynamic mix of distinct plans, erratic behaviors and unforeseen events.Therefore, it is best to get a handle on the most influential contributors to this diverse mix than it is to formulate a comprehensive list of all 'The Fundamentals.'

What Is Forex Trading? Can You Make Money?

What Is Forex Trading? Can You Make Money?
As the stock market has been shaky and the U.S. dollar has lost almost unprecedented ground in the past several years, forex trading has reached record levels of popularity.This is because the forex trading market is one that can never go down (or up, for that matter), and in which the decline of the U.S. dollar has created tremendous opportunities for savvy investors.What is Forex Trading?Forex is a term used to mean "foreign exchange." Unlike other markets, the forex market doesn't exist in any physical sense. While stock traders meet on the New York Stock Exchange floor, and bond traders in the Chicago Board of Trade's trading pit, people engaged in trading use telephones and the internet to constitute their market.Who Participates in Forex Trading?The biggest money in the world engages in forex trading on a daily basis. This is because national governments and their central banks trade on the forex. You would never find Alan Greenspan trading on the American Stock Exchange floor, but you would find his subordinates in forex - it's a central role for central banks.In addition to governments and central banks, large commercial banks also engage in forex trading. Multi-national firms perform trading in order to hedge against fluctuations in currency rates. Individual investors try to spot trends in the forex to move in and out of trades at a quick profit.There are even forex dealers, people and firms whose job it is to buy and sell currency in the forex in order to exchange it in the real world.The main currencies for forex trading are the euro, the Japanese yen, the English pound sterling, and the U.S. dollar. The Australian dollar and the Swiss franc are also popular.How Forex Trading WorksNormally, currency is traded for very short periods. A day is about the longest you would want an open currency trade, and most trades are for a few hours, or even a matter of minutes. This is because currency traders typically use massive amounts of financial leverage in their trades which amplifies both the potential rewards and the risks.For example, to buy $100,000 worth of euros may require a deposit of as little as $1,000. If the euro goes up 1 percent vs. the U.S. dollar, you will have made $1,000 on your investment of just $1,000 - doubling your money.But what if the euro went down by 3 percent against the U.S. dollar? Not only will you have lost the $1,000 that you risked, but you'll be liable for an additional $2,000 as well.Making even bigger bets, say $5,000 to control $500,000, could result in catastrophic financial losses. For this reason, it is normally best to make quick trades. In doing so, you will take your trading profits while you can and stop your losses before they become untenable.The Financial Futures Market - Forex Trading Through Options ContractsYou can also buy options on foreign currency, also known as financial futures. For example, you could purchase a contract for 100,000 Swiss francs to be delivered in six months. During the six months until the contract matures, you have the option to sell the contract.If the Swiss franc goes up versus the dollar, you could sell the contract to lock in your profits. If the franc declines against the dollar, you could sell your contract early and cut your losses.Investor Alert - Beware Forex Trading ScamsAs the popularity of the forex has increased, so have the number of forex trading scams. Between 2001 and 2006, approximately 23,000 American investors lost $300 million to forex trading scams.Always be sure that your forex broker is legitimate, and never risk more than you can afford to lose.

Trading Currencies - A Market Guaranteed to Never Crash

Trading Currencies - A Market Guaranteed to Never Crash
Trading currencies gives you the option of putting your money into a market that's guaranteed to never crash. This is because the foreign exchange market doesn't go up or down - only the different currencies rise and fall against each other.For example, if you begin currency trading by buying euros with your U.S. dollars, either the euro will go up against the dollar or the dollar will go up against the euro.Trading currencies can be dangerous business, but you don't face the so-called "market risk" presented by stocks or bonds. The foreign exchange market is always moving sideways.Trading Currencies Adds Instant DiversificationIf you're a wealthy investor with what you think is a well-diversified portfolio, you could be in for a surprise. Let's say you have stocks, bonds, CD's, and cash in a money market fund. If the American economy completely tanks, you could still lose out. This is why currency trading is a good strategy for investors.Think You're New To Trading Currencies? It's DoubtfulTrading currencies is not as complex as some market pundits make it out to be. After all, almost everyone has been involved in currency trading at least once in their life. Have you ever gone to Canada and traded your U.S. dollars for Canadian dollars? If so, you've been involved in currency trading.At it's root, this is what it means to trade currencies - exchanging your U.S. dollars for some other nation's money. As you get more experienced in trading currencies, and your currency portfolio becomes more diversified, you won't be limited to using U.S. dollars.After all, if you have them, you could trade Swiss francs for Japanese yen, or Australian dollars for Brazilian real. Currency trading offers you almost unlimited options.Trading Currencies Through the ForexThe forex is the most popular venue for currency trading. Although technically, the forex exists anywhere and any time two or more people are trading currencies, the term "forex" normally refers to an organized platform for currency trading, most commonly over the internet.National governments and their central banks are the biggest currency traders through the forex. Large commercial banks and multi-national corporations also use the forex for currency trading, although their objectives are different.Banks engage in currency trading as a business in its own right - they buy currencies on the open market and sell them as "currency exchanges" with a mark-up. Multi-national corporations trade currencies in order to hedge currency risk.If a multi-national company does a lot of business in Japan but is worried that the yen will go down versus the euro, it can swap out of yen and into euros, for example.You Can Trade Currencies Like The Big CorporationsSome individual investors use the forex in order to capitalize on small movements in foreign exchange rates. Although the potential rewards are high, so are the risks. Most investors are better off currency trading like the big corporations - to hedge risk.For example, if your portfolio is full of U.S. investments that benefit from a strong dollar, consider using some of your excess cash to purchase euros or yen. Alternatively, you could buy foreign stocks, emerging market mutual funds, or even commodities like gold.The idea is to diversify outside of the United States, so that in the event of a slow-down at home, your hard-earned assets are protected. Otherwise, the only currency trading you might be doing is trading dollars for pennies as you watch the value of your investments plummet.Strongly consider devoting a portion of your portfolio to overseas investments.

A Brief History Of Gold

A Brief History Of Gold
Gold has a place in history regardless of the country of origin. Perhaps it has to do with the fact that gold is seen as a common currency in every country in the world. Gold sees no boundaries. History states that gold coins have been minted since around 670 BC when King Gyges of Turkey minted some gold coins for his personal currency when traveling. The Roman Legions were apprehensive when Julius Caesar first issued gold coins as payment for their service. However, the tune soon changed when the legions realized that the gold coins actually increased in value.Today, bouillon gold coins have a face value that is pretty much just symbolic. The true value of a gold bouillon is the gold weight by content and the ever-fluctuating price of gold on the world market. A one-ounce gold coin is worth the market value of one ounce of gold minus around 5% for minting and shipping. Of course, bouillon coins come in various common weights: 1/20 of an ounce, 1/10 of an ounce, 1/4 of an ounce, 1/2 of an ounce and finally a one-ounce coin. Gold bouillon is a legal tender and gold coins are guaranteed authentic by the country of origin. Almost anyone can purchase and sell gold coins because of the diverse market acceptance.In 1489, King Henry VII introduced the first gold currency into the world market. In Britain during World War I, Britain issues banknotes because gold bouillon was needed to finance the war. Soon, these banknotes completely replaced the use of gold sovereign. The gold sovereign ceased gold mint production in 1917 and started again in 1925. Then production was stopped for World War I and restarted in 1957.There are many famous finds of gold in various regions of the world. These gold finds caused huge gold rushes. Gold rushes caused large amounts of people to migrate to these areas. Such places as the Klondike Gold Rush of Alaska, which occurred at Forty-Mile creek in 1886. In August of 1869, gold was then discovered at Bonanza Creek - a part of Klondike River, Yukon Territory. In the one-year starting in the winter of 1896 and ending in 1897, miners pulled out millions of dollars in gold bouillon. In the year 1915, over $50 million USD was exported from Alaska to the United States. The 1898 gold rush was a modern event. With the addition of media, the gold rush had world wide media coverage. This media coverage sent people rushing to the gold locations.The history of gold is an amazing display of human endurance. It is estimated that only 120 to 140 thousand tons of gold is available above ground. Surprisingly, there is only $1.8 trillion USD total in gold above the ground. Compare that to the total US debt of almost $7 trillion USD. In addition, only $375 billion USD is held in reserves at banks around the world; $1.3 trillion USD in gold is owned by private parties.

Even You Can Benefit From Online Trading, And Make A Fortune!

Even You Can Benefit From Online Trading, And Make A Fortune!
It's a relatively new phenomena that's sweeping the investment field. It's online trading and it seems to be here to stay. Online trading might seem a little awkward at first, but for those who revel in watching their stocks rise and fall, the fun is what makes online trading a great way to go.Smart investors use online trading to their advantage and adopt some of the philosophies of long-term investors. Day trading can be fun, but it can be a risky battle, so a more holistic approach can be a bit smarter to adopt.Online trading works in much the same manner as hiring a broker, the difference is you're in the driver's seat in most cases. This means you can buy and sell your stocks in real time, using online features to do so. If you're into watching the market, it means you can buy into stocks as they begin to show signs of life, and sell quickly when a profit's been made. The disadvantage here is that many unskilled buyers tend to get a little overzealous and lose money using online trading sites.To protect yourself and your investments, it's wise when using online trading to:* Understand what you're getting into. It might seem like a fun game to watch stocks go up and down, but when it's your money that's involved, it's not a game. The investments are real and so are potential losses.* Pay heed to stocks that are good to buy into. Research your buys and don't count on a single day's returns as the only information you use before making purchases. While some higher risk buys are more than OK, you don't want your entire savings tied up in them.* Diversify. Online trading is a fun and relatively inexpensive way to get into the stock market, but don't use this as the only means of investing for your future. Smart investors developed a mixed portfolio, which means they have stocks, bonds, CDs and other investment tools all working for them.* Don't over-react. One bad day for a blue chip, for example, doesn't mean the stock is going to "crash" for good. Hold on to stocks that are proven winners for a fair amount of time before accepting a loss and selling.* Don't invest more than you can afford to lose. There are no guarantees in the stock market. Even if you have a "sure winner," there is a chance you could lose a lot of money on a particular stock. It's important to make sure you invest only what you can financially handle.* Get professional advice, if necessary. If you don't understand how the market works, or at least the basic gist of it, seek out advice before getting into online trading. The temptation to buy and sell too fast or too slow could get you into trouble if you don't understand how to watch stocks and research the market.Online trading can be a great way to get involved in the stock market right from the security of your own home. Quick, easy and offering low handling fees, this particular means of investing is becoming a favorite investing pastime for many. Just make sure you understand what you're getting into before you do. Loses in online trading are just as real as if you'd hired a broker.

Currency Trading The Foreign Exchange (Forex) Market

Currency Trading The Foreign Exchange (Forex) Market
Trading, in general, is a great "business" opportunity. But why is currency trading the forex market the greatest of them all.Did you know that the forex (foreign exchange) market is 30 times larger then all other US markets combined.Did you know that trillions of dollars are traded on the forex. And, no, it's not all traded by huge banks making huge trades and huge currency exchanges.Truth is a great deal of currency trading is done by speculators, which is how the majority of small investors are defined. You wait for a good opportunity to present itself and you jump into the forex market.Forex trading, like all other trading, is about timing and money management. However, trading currency on the foreign exchange does come with some very unique characteristics.No slippage on your stop orders, guaranteed fills regardless of the size of your orders, 24 hour trading 5 days a week. These are all amazing benefits not offered by any other market in the world.This is why so many traders are drawn to the forex. The recognize that by using the same skills they are learning to trade equities, or futures, or bonds, they can be trading the forex and make an exponentially greater amount of money.Now, it is not suggested that you drop everything that you are doing and go invest every dollar you have in a market that is new to you. You should, of course, educate yourself and make certain that all the proper steps are taken to ensure your success.Only you can determine when you are ready to take the plunge into forex trading with real money. Until then, trade a demo account, eliminate all risk and build your skills.You're probably thinking that demo accounts are worthless since they don't mimic live trading very accurately, but in the case of currency trading the forex, you would be wrong.The demo accounts mimic live foreign exchange trading perfectly. There is no trade that you will get on a demo account that you wouldn't get on a live account. So there really is no reason to make any live trades until you can consistently make money trading a demo account.This is a lesson that you will be thankful for 3 months from now. After going through your second or third $10,000 demo account, you will realize how valuable this advice really is.So, take your time, get educated and join the world of successful currency traders. The foreign exchange (forex) market is waiting for you.

Why Beginners Should Choose Forex Trading Over Stocks Trading

Why Beginners Should Choose Forex Trading Over Stocks Trading
Forex trading holds significant differences to stocks trading. Understanding these differences will aid a trader in deciding the right market to enter. Forex trading itself has several advantages over stocks trading and is ideal for the beginner and individual small investors.1. Low Transaction CostsThere are no hidden fees for forex brokers as they are not paid by the traditional commission based fees. The fee paid to the forex broker is calculated directly from the trade in the form of the bid ask spread. In forex trading, the spread is the difference in how much you pay for a currency and how much you sell it for. This spread is commonly expressed in "pips" or points.2. Forex Trading is a 24 Hour MarketForex can be traded anytime of the day, the forex market is open for business twenty-four hours a day. This is considered a huge advantage for individual small investors who are just starting out to trade foreign exchange in their spare time. This allows forex traders to juggle their schedule around their trading opportunities; they can schedule their forex trading when it is convenient for them.For those of you who are night owls and prefer to trade at 1am, then foreign exchange trading is just right for you. Depending on where you stay, there are banks opposite the globe open for you to trade.3. Fast Trade Execution and High LiquidityTrading the foreign exchange means that you are trading in cash. No other form of investment has more liquidity than cash and as such, trades are executed almost instantly. There is no lag time in forex trading.4. Having Leverage and MarginOne of the significant advantages that forex traders have is the ability to trade on margin. This gives them a huge leverage in their trading and presents the potential for extraordinary profits with relative small investments. Let's take for example; with a forex broker that allows a margin of 100:1, you can buy $100,000 in currency with only a small $1,000 deposit. A word of caution for the uninitiated, leverage can go both ways and may lead to large losses if you are not careful.5. Forex Trading Requires Only a Small Sample to StudyStocks trading present thousands upon thousands of stocks to trade. Small and large companies, international companies, newly issued IPOs etc. It is highly impossible to follow them all.Forex trading, on the other hand, presents only seven major currencies to follow so that you can devote more time to each of them. Many successful currency traders do not even trade in all seven major currencies; they just choose three or four and master them to achieve success in forex trading.6. No Bear MarketsIn forex trading, since you can trade either short or long, you will be able to make money whether the prices go up or down, that is if your predictions are accurate of course.7. Forex Market is Not Easily Influenced.The forex market is so amazingly huge that no one individual, bank, fund or government body can influence it for a long period of time. Foreign exchange trading is the opposite of stocks trading where one negative television appraisal of a company's stock could possibly send it into a tailspin.Based on the above advantages, forex trading is a clear winner for the beginner and individual small investors. If you are deciding on a form of trading to enter and master, then forex trading is the choice for you.

Forex Trading System - How To Choose The Perfect One

Forex Trading System - How To Choose The Perfect One
Trading in the stock market is extremely intense at times. Within minutes, you could triple your money or loose it all. Forex trading is the best type of trading that has been developed because you can trade on your own time whether it is in the middle of the night or the middle of the day.When you first decide to take the risk and trade in Forex, you need to take it slow and start out small until you get the hang of trading. Do not jump in until you know what your are doing. It is possible to lose everything you have worked for.If you are a new at trading it is important to remember that forex trading is definitely not like traditional trading. Forex trading is made up of telephone lines and computers all over the world; conducted through international banks. There is not a central office to walk into.The international banks process every transaction whether it is for a large company or an individual person. They process the transaction with professional courtesy. These banks are so professional, that their accuracy of these banks has never been questioned.When a trader becomes active in the forex market it is because of the great benefits that it offers; the biggest being liquidity. A forex account can be closed within twenty-four hours with no questions asked.The volume of trading that occurs everyday in forex trading is astounding. There can be no comparison to any other markets. Another reason that people choose forex trading is that unlike the stock market, the forex market does not close. It is running twenty-four seven, unlike your broker who needs to close at 6pm sharp. And stay closed all weekend.Unlike many of the other markets, the forex market is more liquid. This feature allows your broker to stop automatically, giving the trader the time that he or she needs to decide how much risk he or she is willing to take, or if they will pass.The biggest advantage of forex trading is that the trader is able to do it online. The advantage is that you do not need a broker, which can reduce or eliminate any transaction fees.When you trade online and eliminate the broker, you cannot claim there was a misunderstanding if you do not like the outcome of a trade. You get an immediate confirmationIt is important that you understand that forex trading comes with a lot of risks. You cannot expect to sit back and watch your money multiply. It is hands on trading and you need to be aware at all times. This can make it tough when you have to sleep.

Currency Trading - Can You Do It?

Currency Trading - Can You Do It?
The world of currency trading or to be precise the world of the Foreign Exchange Market is known as FOREX. For a lot of people this is a completely new way of trading, but banks, large corporations and governments have been using FOREX for many, many years.Now it is possible for individuals to also get involved in currency trading especially with so many internet brokers offering their help and service. FOREX is different from the stock exchange in one key area. The stock exchange is only open during working hours in that country. If you look the New York Stock Exchange works different hours to The London Stock Exchange. But because the majority of FOREX trading is done online, it means that it is available all through the day.As with any trading FOREX can be risky, don't consider putting all your money into FOREX until you have a certain level of knowledge and know the risks involved. Start with small amount to trade with and as you trade and gain more knowledge and experience then you can trade with larger sums of money.As with many things people see the possibility of earning a large amount of money in a very short space of time, that might be the case but you should be wise in what you do. If you have no idea about what you are doing then you might find you will not make your fortune but you have wasted away the money you had already earned. It can't be emphasised enough learn about FOREX before you invest large sums of money into it.There are online trading sites where you can have a dummy account, in other words it costs you nothing but you are given an amount of money to practise with. You will not get to keep any of the money, but it is a great way to learn the system without risking your own money. You might find that at the end of the first day you have lost a large amount of money because you didn't understand the system. It is a relief to know it wasn't real trading or real money being used. The next day you make the necessary changes and see that you end the day, having made some money.As you look around the web and see how you can be helped in your new venture, make a note of all the tips that can help you. They could make the difference between wealth and poverty.When you get involved in currency trading you can find that one minute your currency is gaining in value and the next minute it is being devalued. FOREX is like all trading in that the market doesn't seem to stay static, there is always something happening with currency trading. Again it can't be said enough make sure you are prepared to take the risks involved and that will include taking some losses. What you need to make sure is that your profits are enough to cover the losses you will see when you trade.By learning you can make sure that your losses are kept to the minimum and your profits are kept as high as possible. By doing this you can enjoy trading with FOREX.

Keep Current with your Currency When Traveling Abroad

Keep Current with your Currency When Traveling Abroad
The prospect of traveling to a foreign country for a holiday is always excited, yet one should never let the minor details get in the way of having a good time. Considerations like type of plugs to use in outlets, keeping necessary paperwork current, and what to pack and what to leave behind are hopefully decided well in advance, so you can relax and enjoy this experience. Most of all, one should consider how to handle finances while away.Currency exchange can be a tricky business, particularly in this day of the wavering dollar value as it relates to the foreign markets. Oftentimes when traveling, friends strive to hang onto American dollars to make transactions easier for them. Especially when traveling to Canada, Mexico, Jamaica, and other Caribbean islands where the American dollar is valued, some may find it simpler to negotiate purchases with merchants who will accept American cash. One advantage to this is that no extra fees are taken as they would be were you to withdraw foreign money from an ATM machine, and if you are a good judge on the value of souvenirs you may not feel as though you are being cheated.However, not every foreign country is as accommodating. In Europe and Asia, you may find some places will not accept a Lincoln for that pint of ale or bag of chips. It becomes inevitable then that you must exchange your cash and keep track of its worth.The question arises then, where to exchange the money? Is it more economical to obtain necessary cash in the US, or try a bank in a foreign country? Are hotels a better source, or specialized exchange offices? The answer is not always simple to pin down, as the fluctuation of the dollar varies too much. The simplest solution one can offer is to constantly study the exchange rate of the country you plan to visit. For the few weeks before you leave the country, check the daily rates online to determine how much your American dollar will be worth on foreign soil.Determine how much ready cash you think you will need for your trip, though it is prudent not to carry more than a few hundred dollars regardless of where you go. Travelers checks, though rarely seen or advertised these days, are always handy to have in the event of loss or theft, whereas cash is more difficult to reclaim in such a situation. Once arrived, exchange a small amount at the airport immediately for incidentals (a newspaper, drink, or transportation fare), then inquire with your hotel's concierge about nearby exchange offices and banks. Compare the current rates and make your decision from there.Depending upon where you travel, most ATMs will accept American bank and debit cards. Look for matching symbols and look for machines associated with banks. Ultimately you may pay an exchange fee, and bank machines may be easier to negotiate. Keep track of everything you buy, and don't forget to enjoy yourself as you shop.

10 Common Mistakes In Trading

10 Common Mistakes In Trading
I would like to talk about 10 common mistakes in trading. New traders are often unaware of what is required in trading and the bad habits that can lead to financial suicide.1. Under capitalization - One of the first mistake I made when beginning to trade was being under capitalized. I started with a $10K account without any idea on how to trade. You need enough capital to learn and gain the experience. Some like to call the initial stake "market tuition." If you can avoid paying your dues, great for you. But most new traders will lose their money. Just make sure you learn from every loss.2. Having the approach to trading as a "learn as you trade" - Big mistake. "Learn as you trade" = losing money. Losing money can lead to emotional and financial stress and may even create enough fear in you making it hard to trade. Make sure you come prepared to the battlefield. Be a strategist. Sun Tzu said, "The battle is won before it is fought." Think about it.3. Trading as a hobby - Take a look at your hobbies. Do they make money? Hobbies in general are entertainment that cost money. Do not approach trading as a hobby. Treat it like a business. Develop a business plan, have goals, and understand what you want out of trading.4. Thinking that you know it all - The moment one thinks he knows it all is the moment he has become a fool. Its impossible to know everything about the markets. This is a lifetime learning process. Find your niche, find your speciality and be an expert in it. In other words, find your edge. One thing I learned in trading is that niche = money.5. Trading without a plan - One of the worst things you can do as a trader is to trade without a plan. Trading without a plan is like driving in a new area without a map or a navigation system. You are lost.6. Not following your trading plan - Okay so now you have a trading plan. Why don't you just follow it? A common mistake among traders is not following a developed trading plan. This leads to impulse trading or emotional trading.7. Wanting to be right - Are you trying to be right? Or are you trying to make money? This is a hard one... I personally have to battle myself to avoid this bad habit. Our egos interupt with our trading and we tend to want to prove something to ourself or someone else. The markets do not care what you think. You are in it to make money.8. Money Management - Strict money management is a necessity. Set your risk parameters for all your trading setups. A common rule is to risk no more than 2% on one trade. I prefer 1%. Being long 10 different stocks at 2% risk per trade is not a good idea. In fact you are risking 20%. Know your size and do not double up your position after a series of losses. Be a grinder and not a cowboy.9. Have realistic goals - Too many traders come into this arena without unrealistic goals. Questions like "Can I make a million my first year with a $10k account?" Sure you can, but is that really realistic? Focus on crafting your trading. When you know how to trade the money will flow naturally.10. Not analyzing yourself and your trades - This a poker habit I have. I tend to analyze every losing and winning hand to learn from it. Traders need to do the same and analyze every trade. Think about it after the trading hours and focus on what you can do to improve. Trading is a constant journey of soul searching as well. Understand yourself and you will significantly improve your trading.

Learning to Trade the Forex Profitably

Learning to Trade the Forex Profitably
Trading the forex may sound scary but it doesn't need to be. Trading currencies can be extremely lucrative if done correctly.What is the key to success with the Forex?Find a system that has proven to be successful and stick with it.Here is the system that we use:Always enter your primary trades on Wednesday. Wednesdays pay triple the amount of interest than any other day of the week. As long as you get in before 5pm est on Wednesday they will pay you the interest for Monday, Tuesday and Wednesday - how sweet is that!When is the most active time to trade?The really active trading begins at 10 am because the US and London markets are open.How can you minimize your risk and increase profits?Trade in pairs. There are certain currencies that have a fairly close correlation. One usually moves up while the other is moving down. By buying these pairs you minimize the amount that you could lose. One will usually go up more than the other goes down so your chances of turning a profit are higher.Analyze the interest rate ahead of time.Look at the pairs that you are about to buy and the number of shares that you will buy for each. Hint. You should be buying more of one set than the other based on the current price.Then compute the daily interest rate that you will be paid. Some pairs will actually cost you interest on your account, so you eliminate them based on risk and find a more acceptable daily interest rate.Now I know that this sounds complicated, which is why we use an automated system to place trades. This system computes daily averages, gives you trading pairs that have the highest correlation, and even tells you the exact number of lots to buy of each trading pair.The final decision is yours and the amount you are willing to risk is up to you but the rest of the decision making is calculated for you.Can you lose money? Yes but this system really helps to minimize that risk and maximize your profits.It even calculate exit and entry points as the market changes.Whichever system you decide to use remember - use it consistantly. Emotion is your greatest enemy when trading.1) Choose an automated system that you can set and forget.2)Make sure that it has a way of sending alerts to your cell phone so that if you do need to enter or exit a trade, you will know it without being stuck to your computer 24 hours a day.3)Make sure that it takes into account the level of risk that you are comfortable with. This is your money, invest it wisely.

Make Money With Forex and Share Trading

Make Money With Forex and Share Trading
Draw downs are part of trading; it's volatile markets that make FOREX trading fun and highly profitable.The big moves in FOREX trading, with the best risk to reward, come a few times a year, and you should trade infrequently.IN FOREX trading the way to make money fast, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $25,000 account, to over a million dollars, in under 10 years.The question would be not whether you could but rather would you enter the Forex trading market. The Forex day trading arena is a veritable snake pit ripe for scam artists to bilk money out of unwary investors. On the other hand, it is a forum for educated traders with the correct education, tools, and trading strategy to make a handsome income.The last thing that needs to be a part of the process when you start to learn Forex trading is called trading psychology. This aspect includes a trader learning to deal with his or her losses and if they happen to have a lot of them in a short period of time they should stop for a while. Something else that is part of trading psychology is that the trader needs to make sure they are not letting themselves get carried away in making too many trades just because of good profits.To play the spread or the make the spread simply means to buy stock at the Bid price and sell the stock at the Ask price. The difference between the bid price and the ask price is known as the spread. Because there is an historical tendency for the stock market to rise profit can be expected for this form of trading.You can also make money by day trading online. So, bullish call and bearish put spreads are two of the very basic option trading strategies. However, it is not guaranteed a 100 % win from the stock market. You still need to learn to predict the stock price direction accurately using technical, fundamental and news analysis.Your choice of what method to enter and exit stocks plays a critical part in your stock market success. Numerous academic studies have shown that more than 90% of mutual funds failed to beat market over the long run and that more than 90% of individual investors lost money in the stock market. Too many people and too many Wall Street experts or mutual fund managers are buying and selling stocks like madmen, with no sound strategy or any hope of long term success. Ironically, they're the ones who create opportunities for prudent, long term oriented investors.Are you ready to follow the wealth cycle so that you're earning more when you're ready to retire? Or, do you want to depend on social security and the ever-volatile stock market for your future well-being. You can choose a wealth cycle today. All it takes is the first step.

Trading Veteran Reveals Hints and Tips on Trading that Every Trader Should Know

Trading Veteran Reveals Hints and Tips on Trading that Every Trader Should Know
Your trading system is a set of rules that you have built up that should be met before you enter a trade. The more ways that a trade is confirmed- the better and the more money you're likely to make.You might wait for a certain pattern to emerge on the charts that indicates that you should trade, so you might find a buy signal for example. One of your rules should be to make sure that there is not a conflicting signal (i.e. a sell signal in this case) on the longer term charts.Your trading system should also include what to do in different circumstances after you have placed your trade. So this should include where you will place your stops (whereby stops allow profits to run and give the ability to lock in some profits or to break even on a trade or worst ways, to reduce any losses.)Know yourself. You need to be able to change your mind about a trade you are considering. You shouldn't always have a bearish (down) or bullish (up) slant or bias towards a market before analysing it.Most traders will remember market crashes and so will trade on the 'short' side of a market most of the time- meaning they will sell initially (without having bought anything first.) But in the long run stock markets and indexes, including the DOW Jones 30, S and P 500 and FTSE 100 rise due to increasing growth and company profits. After all- it's only the leading public limited companies that get listed in these indexes and if the market capitalisation of a stock that's in the FTSE 100 for example, falls, it gets rejected from the index and replaced by a potentially stronger stock.Markets often behave like an elastic band. They can become over stretched beyond a so called 'equilibrium' point as traders panic- with prices becoming over bought or over sold. And then prices snap back. So it can pay to wait until prices are over stretched before placing a trade. This fits in well with the fact that prices will often move back to key moving averages of prices.The only sort of fundamental analysis worth using in my opinion for short term trading decisions is seeing how a market reacts (ie seeing how the price reacts) to bad news. If the price of a security goes up or is pretty much unchanged after bad news relating to the security, it shows strength and you should consider buying. Especially if this potential buy signal is confirmed by other buy signals for the same security.It follows that if there is good news but the price of the security falls or is basically unchanged, this is a sign of weakness and you can expect prices to fall- so you should consider selling.Following the advice given on financial programs is something I definitely don't recommend. You can really suffer from information overload. Very often you'll hear analysts from different financial institutions having totally different points of view on a market. But of course that's what makes a market- buyers and sellers. The thing is, one side is wrong (generally anyway- they could both exit at different times for a profit!)A little tip for trading the DOW: The first two hours and the last hour of the trading day give good opportunities for momentum trading- meaning trading in the same direction as the market.So to sum up, create a system that suits you and do your own thinking and chart analysis before entering a trade.

Learn How to Choose an Online Trading Broker

Learn How to Choose an Online Trading Broker
The life of a broker is usually very hard and usually full of stress. So it is not a job that most people would choose to do. Brokers are the direct link to Wall Street; they are also our middlemen when we are thinking of investing some of our hard-earned money into shares of some publicly-owned corporation.Of course, we could always use the Internet to trade, which in recent years has provided an enormous amount of help for individual investors, who want to keep track of a portfolio. But the basic rule will still apply: You need some kind of online trading broker so that you can trade stocks.Online trading brokers get by in the world by knowing information that other people don't. When you are with a broker, you are getting some valuable advice, which is something that you can't put a price on. If you are looking for a broker, then you know that your interests will be well guarded selecting the right person. There are also discount brokers who will offer valuable advice for a very reasonable price.You know a stockbroker is informed in their job because they have to pass two licensing exams. These exams will prove that this broker is highly informed in their job and that they know all the regulations and laws in the securities industry.You are probably how much these brokers are actually worth-and, more importantly, how much you will need to pay for their services. Minimum deposits to open an account with a broker can start from $500 to $2000, but don't panic if you don't have that kind of money, as many online trading brokers don't actually require a minimum deposit at all. Instead, they will charge a monthly fee-and that fee can be as low as five dollars.Take care when choosing a broker; always get recommendations before you make a decision. You will be glad that you did when your broker guides you to financially-sound, informed decisions that earn you the highest possible return on your investment.

Making Decisions in the Forex Market

Making Decisions in the Forex Market
Statistics show that 90 percent of New investors fail, 5% break even, and 5 percent actually make profits in the Forex market. What the statistics do not tell you is about half of these investors jump into the Forex market with little or no research or training. Perhaps this is why so many people fail.Gaining the amount of knowledge needed to be successful in the Forex marketplace is actually not difficult. Someone with an education of an Associates Degree, or even a high school diploma would be able to gain the knowledge with just a few years of studying the market.However, no matter the amount of education or training you have, the number one problem new investors have is making good decisions. While some investors have no problem making decisions and sticking to them, the majority of the human race simply have trouble doing this. Whether it is emotion, lack of knowledge, or uncertainty that makes decision making hard, it must be overcome to be successful in the Forex market.The Forex market is actually one of the biggest trading markets in the world. Open 24 hours, the market follows every major countries market including The United States of America, Europe, and Asia. Because of the time zone differences, the Forex market remains open 24 hours a day.Forex currency trading allows investors to trade between two world currencies. By doing this, traders buy and sell with the hope of making a profit. Its daily volume averages around 1.8 trillion dollars, which makes the potential for making profits almost bottomless. If you are interested in becoming financially stable by investing, the Forex market may be one of the best markets to trade in, because it yields one of the highest amounts of profits.However, becoming successful in the Forex market takes more then just investing. New investors often fail because, instead of properly educating themselves, they jump into the market hoping to make quick profits. To obtain profits, you must follow a few standard rules:Educate YourselfIf you desire to become an expert at trading, you must educate yourself. The power of the internet gives you the opportunity to do this a number of ways. Online seminars and trading courses are available if you prefer to read and learn. If you are more of a hands on learner, simulated trading systems, which allow you to work and trade the actual market with paper money, are available as well.Pick Your Type of TradingBefore you decide to attempt to trade by yourself, hire a trading broker to help you, or participate through an online trading system, you must understand the pros and cons of each way. Thoroughly research each option, and decide what is best for you.One answer that may help you make informative choices is relying on the statistics and numbers rather then the emotions involved. The human aspect of decision making can be completely removed by relying on a program. FreedomRocks is a fully automated online trading system that actually does the work for you. The trading system works on statistics and numbers rather then human emotion. With all the work done for you, all you have to do is buy and sell when the program tells you too. It is truly the easiest way to make money online.

Forex Trading For Beginners

Forex Trading For Beginners
Forex trading involves the simultaneous exchange between two currencies. Shares are bought and sold by investors in order to make profits.The Forex market does not have a physical address. The Forex market is actually a large network of individual investors and central banks all involved in the process of changing currency. The market is open 24 hours a day, and follows all the major countries including The United States, Europe, and Asia.The Forex market is unlike traditional markets as you are not required to place the full amount of money into each contract. The Forex market works on a margin system, typically 1%. For example, if the contract at hand is for $100,000, you are only required to place 1%, or $1,000 into the contract. This money is used more as an insurance policy in case the contract goes negative.The main currencies found in the Forex market are:USD: U.S. DollarCAD: Canadian DollarGBP: British PoundEUR: EuroCHF: Swiss FrancAUD: Australian DollarHKD: Hong Kong DollarJPY: Japanese YenNew Investors often find the Forex market to be one of the most profitable markets in the world. However, this does not mean that anyone without training should attempt to trade by themselves. There is a 95% failure rate with new investors, because the majority simply do not take the time to properly educate themselves. Successful Forex traders must learn the ins and outs of Forex trading before becoming successful. This often takes years of risking their money and time.If you decide to trade on your own, the best possible option is to get well educated before trading. You may find the information and training needed to become successful to be overwhelming. Gaining the knowledge and experience needed to become successful at trading may take years. Experienced traders understand the basic fundamentals of the system, and how to properly make decisions, while leaving human emotion out of the picture.A key to becoming a successful Forex trader is finding tools and services that aide you in making informed decisions. The internet allows investors to access an almost unlimited amount of information Whether it is a program, chart, or article, successful Forex traders rely on any reliable tools they can get their hands on.Training Tutorials- Several types of online training tutorials are available for little or no cost. Typical training tutorials take you from the very basics to the more advanced portions of Forex trading. By reading, studying, and following the training programs as instruction, you gain knowledge and experience in the Forex market, which will help you make informed decisions later.Simulated Trading- Simulated trading programs allow you to work within the actual Forex market without the risk of loosing your hard earned money in the process. Most simulated programs work in real time, allowing you to learn about the real market. Simulated programs often use paper money and work exactly the same as a real trade service. By gaining and losing as you would in the real market, you gain real world experience.Statistic Analyzers- Programs are available that actually analyze information for you. When you are new to investing, the statistics and information may seem to be in gibberish. Statistic analyzers take the information and make it readable by even the newest investor.Real Online Trading Programs- If you prefer to trade without the pressure of learning the trade, you may consider an online trading program. Online trading programs allow you to determine your settings, then the program controls your portfolio for you. Since programs do not rely on human emotion, profits are easily obtainable.The most important way a new investor can trade efficiently is by using a trading program. Trading programs not only rely on information rather then emotion, they have the potential to do all the work for you, eliminating the need for hours of studying to learn the basics of the Forex system.One alternative to going through the process of learning the system is using an online trading system.Whichever method that you choose, stick with it. Don't jump from one to another. Learn the system thoroughly, set it on autopilot and stick with it.

Forex Education: How To Cut The Learning Curve In Half

Forex Education: How To Cut The Learning Curve In Half
According to one veteran trader, forex education can take anywhere from a few months to 3 years, depending on a person's level of experience or aptitude.That's quite a learning curve and plenty of time for despondency to set in from your partner or family members as they see you sat in front of a computer screen hour after hour, and no money coming in as a result of your efforts.Thankfully there are simple steps you can take to cut the learning curve in half.If you are an absolute beginner and know nothing about the Forex, then you need to spend a few hours reading up on Forex basics, educating yourself on the terminology and how the market works.Then open a demo account with an online broker and devote a few days to getting thoroughly familiar with your trading platform and charting package.Learn the various menu options and how to put in entry orders quickly, setting your entry point, stops and limits so the procedure becomes second nature.Once you have laid that foundation you can now starting moving up the learning ladder. The following suggestions will significantly reduce the time it takes to become a profitable trader:1. Invest in a Forex education package.Not all Forex education materials are born equal. A lot of what is out on the internet is full of 'fluff' and 'filler', written by people who deal with theory but do not actually trade themselves.So in choosing a Forex education package be sure the people behind it are professional traders themselves with a successful track record. Often, by putting the name of the Forex education course in Google you can check out forums and user comments which can be revealing.2. Maintain an ongoing Forex educationOnce you have gone through your Forex education course once you need to do it again and again. In other words, you have an ongoing Forex education. Why is it important to go through the coarse materials a number of times?Because there is so much information it is not possible for the brain to absorb it all at once. As you practice and develop as a trader, information you previously read which didn't make much sense at the time, will now take on new meaning as you associate it with actual trading scenarios you may have had as you progress in trading.3. Take notes and create a diary.This is a biggie! Every successful trader I know has made a record, taking note of their good trades and losing trades as they gain experience. True, it involves work and effort. But in the long wrong, this single step alone will significantly cut down your learning curve.Without taking notes and doing a post-mortem on your trades, you can go on repeating the same mistakes over and over. This is time consuming, frustrating, and exhausting. By keeping a record you are able to identify patterns of trading behavior you need to correct.These days with free screen capture utilities available on the net, you can just save a gif or jpg image of your charting screen, print it off, and write notes all over it, highlighting features on the chart that made you do what you did.Going back over these print outs and learning from them is a very, very powerful method for bringing you up to speed as a successful trader.4. Keep studying the charts.There is no short cut for this. You will need to spend hours going over the charts, identifying patterns, trends, support & resistance lines etc. The more time you spend doing this, the quicker you will develop a feel for the market.After much practice these elements will jump out at you every time you just glance at a chart. That's the stage you want to reach, instant recognition.Rather than blindly continuing day after day, practicing in a demo account and getting nowhere:1. Invest in a professional Forex education course2. Maintain an ongoing education by repeat readings3. Keep records and carefully analyze your trades4. Invest time in developing instant chart pattern recognitionThese four key points, when applied, will give focus and direction to your Forex education and your learning curve will be significantly reduced.Why not explain to your partner or other family members your program or plan of action so they know what to expect?Help them realize this business involves a large investment of time and energy until the skills are acquired and with perseverance and application your Forex education will result in a substantial income.

Online Trading Forex: Which Of These 3 Mistakes Do You Make?

Online Trading Forex: Which Of These 3 Mistakes Do You Make?
Professional traders are full of tips and guidelines that can greatly increase profitability during your online trading Forex sessions.Here are 3 advice notes I've picked up which greatly reduce the number of my losing trades and increase the number and size of profitable trades:Mistake #1Setting the stop at round numbers.Solution: When setting your stop, avoid numbers that end in zero.This is not due to superstition! It's just that round numbers, especially with certain currency pairs like EUR/USD and GBP/USD, represent key psychological levels in the minds of traders and institutions.Price will often pull back to a number that ends in zero and go no further. If your stop is set at that level you run the risk of getting stopped out of your trade only to see price resume the direction you had anticipated anyway. How frustrating!So always make sure your stop is set at a number other than one that ends in a zero, and reduce the number of times you get taken out.Mistake #2Setting stops according to a pre-determined amount.Solution: Calculate your stop according to strategic levels, not an arbitrary amount.Many traders set stops somewhere between 20-30 pips as that is about as much as their equity will allow.Some new traders tend to do simple arithmetic to establish their stop level: entry price plus/minus 25 pips.However, it makes much more sense to look at a previous support/resistance level, trendline, or yesterday's high or low, and see if a 20-30 pip stop puts you near one of those levels.If it does, then calculate more precisely. It makes no sense to set a 20 pip stop if a major support/resistance line is 25 pips away from your entry level. Price is likely to go right back to that level to test it, and stop out your trade, before bouncing.Keep your eyes open for such key levels and set well-thought out stops which help you avoid getting taken out unnecessarily on trades where your appraisal of price direction was right all along.Mistake #3Setting target limits right on key levels.Solution: Trim your target by 2 or 3 pips.Equally frustrating is to see price ALMOST reach your target, fall short by just 2 or 3 pips, and then within seconds retrace by 10 to 15 pips.One moment you see a nice profit of 25 pips on your trading platform, the next moment it is showing 15. Now you are left in a quandary. Anxiety sets in as you wonder whether price will go back to retest the previous level. Do you stay in and hope or just take the 10 or 15 pips left on the table?How much better to just trim 2 or 3 pips off your target. Price then has a much higher chance of getting there.What a nice feeling to see price spike to your target limit, take out your trade with a 20-30 pip profit, and then pull back. No anxiety, no recriminations, no "if only I had . . ." scenarios.Noting these 3 mistakes and their solutions will make your online trading Forex sessions much less exhausting mentally, and much more profitable.

The Number One Reason that Most People Fail in the Forex Market

The Number One Reason that Most People Fail in the Forex Market
95% percent of Forex Traders lose their shirts. What is it that successful traders have that the rest don't?They have a system.Unsuccessful traders trade with their emotions. Successful traders have a system and stick with it.1) So your first step is to choose a system.2) Your next step is to decide how much money you can risk in your portfolio.3) You then need to decide what percentage of your portfolio you are willing to risk per trade.4) Then you need to look at the pairs of currencies that you are trading and determine the historical correlation for success. Some currencies naturally trade parallel to each other.5) Then you need to decide your buys and stop losses, ahead of time. This is one of the most important steps. Know when to pull the trigger before you have to and set it up to happen automatically.Trading via the Forex trading system is not an easy task. The knowledge required to trade efficiently may take years to obtain. It is essentially a practice makes perfect situation. To avoid potential loss, you must do one of two things: hire a trading professional to handle trading for you, or spend thousands of dollars and possibly years learning the market yourself. Studies have shown that when new investors attempt to trade in the Forex market by themselves, there is about a 95% chance of failure.We have tested several Forex systems online and have stumbled across one that seems to be the easiest for beginners and advanced trader - the FreedomRocks online trading system. FreedomRocks is a fully automated online trading system that actually does most of the work for you. The trading system works on statistics and numbers rather then human emotion, which is the most common reason why new investors fail. Of course the ultimate decision of how much of your portfolio to risk and whether you want to get into a trade is your decision. With all the other work done for you, all you have to do is buy and sell when the program tells you too. It is truly the easiest way to make money online.Remember emotion can be the death of your forex trading. Choose a system that takes as much of the emotional component out of your trading, as possible. Go for small gains, instead of waiting for that "big score." Consistant small gains can make you wealthy.Have patience and stick to your system.

Advantages of the Forex Market

Advantages of the Forex Market
When considering investing for the first time, you may have run into several different types of ways of gaining profits, each with their own advantages and disadvantages. While Forex may be the lesser known type of investing, it is seemingly the one with the most advantages.The Forex does not actually have a physical address. Instead, the Forex market is a network of central banks and investors all over the world that handles currency.Traditional trading markets around the world follow what you would call typical bankers hours. Trading only happens during the day, and very rarely on the weekend. This makes trading in traditional markets a pretty easy process, as long as you are not a night owl.The Forex market, on the other hand, literally stays open 24 hours a day. Since Forex trading involves the exchange of foreign currencies, the market must follow the countries using the currency. Primarily, the market follows the United States of America, Asia, and Europe. The Forex market does now actually have a physical address. Instead the Forex market is a network of individual investors and central banks all involved in this process.While being able to trade 24 hours a day has it advantages, it can also present a problem. Even the most successful investors are not able to stay awake 24 hours a day to monitor the market. The Forex is a fluid market, which changes rapidly and often. Sometimes, these changes happen while the investor is asleep or going about their daily routines. If these changes are not constantly monitored, some profits may be lost.One alternative to this is hiring a professional investor or broker to help you. This takes some pressure off of you, but presents its own problems. Not only are you paying more money out, but the broker is human as well, and cannot check the market constantly.Due to the rising popularity of the market, brokers and online programs have made simulated programs, which allow you to trade in real time, without the use of actual money. This, along with various other forms of education, allows you to prepare to trade without actually losing any money in the process.Perhaps the best alterative is using an online trading program. With the FreedomRocks online trading system, you are not required to stay up all hours of the night, studying market flows, charts, and the ever-changing statistics in order to maintain a successful portfolio. By setting your predetermined settings, the FreedomRocks Forex trading system will make an informed decision, allowing you to sit back and watch your profits increase.The Forex market is an extremely liquid market, allowing you to control your profits. You have the ability to invest as little or as large amount of money as you would like.Most other types of investments require you to place large amounts of money up for extended amounts of time. Forex trading works on a margin system, which means you only have to put a portion of the contract up. This money is more of an insurance policy just in case the contract goes negative.Finally, one of the best advantages to the Forex market is the fact that you do not have to rely on the market to be up in order to make money. Profits can be made in both upward trends and downward trends.

Work At Home: Forex Trading Online

Work At Home: Forex Trading Online
The internet revolution in the early 1990s opened a whole new world of work at home opportunities. The idea of being able to work at home is popular because work at home opportunities allow you to make money without changing your current lifestyle. Perhaps the number one reason that work at home opportunities allure people is the idea of making large amounts of money, possibly enough to improve their current life.One of the most promising work at home opportunities on the internet today is Forex currency trading. The Forex market is the largest market in the world. It is daily volume averages around 1.8 trillion dollars. Forex currency trading allows investors to trade between two world currencies. By doing this, traders buy and sell with the hope of making a profit. The sheer size of this market makes it one of the most exciting markets in the world.However, trading via the Forex trading system is not an easy task. The knowledge required to trade efficiently may take years to obtain. It is essentially a practice makes perfect situation. To avoid potential loss, you must do one of two things: hire a trading professional to handle trading for you, or spend thousands of dollars and possibly years learning the market yourself. Studies have shown that when new investors attempt to trade in the Forex market by themselves, there is about a 95% chance of failure.A key to becoming a successful Forex trader is finding tools and services that aide you in making informed decisions. The internet allows investors to access an almost unlimited amount of information Whether it is a program, chart, or article, successful Forex traders rely on any reliable tools they can get their hands on.Training Tutorials- Several types of online training tutorials are available for little or no cost. Typical training tutorials take you from the very basics to the more advanced portions of Forex trading. By reading, studying, and following the training programs as instruction, you gain knowledge and experience in the Forex market, which will help you make informed decisions later.Simulated Trading- Simulated trading programs allow you to work within the actual Forex market without the risk of loosing your hard earned money in the process. Most simulated programs work in real time, allowing you to learn about the real market. Simulated programs often use paper money and work exactly the same as a real trade service. By gaining and losing as you would in the real market, you gain real world experience.Statistic Analyzers- Programs are available that actually analyze information for you. When you are new to investing, the statistics and information may seem to be in gibberish. Statistic analyzers take the information and make it readable by even the newest investor.Real Online Trading Programs- If you prefer to trade without the pressure of learning the trade, you may consider an online trading program. Online trading programs allow you to determine your settings, then the program controls your portfolio for you. Since programs do not rely on human emotion, profits are easily obtainable.

Learning To Trade Forex on Your Own

Learning To Trade Forex on Your Own
If you are new to Forex trading, you may have found that learning the basics needed to succeed may be a daunting task. The only real way to learn is to place yourself, and you money on the line as you learn the basics of the Forex trading system. This truly makes learning this new system a practice makes perfect situation. However, Statistics show that 95% percent of new investors who attempt to trade on the Forex market fail, meaning that you are potentially risking large amounts of money.Another option is hiring a Forex trading professional to do the work for you. This will take some of the pressure off of you. The only flaw with this option is you are still placing large amounts of money into the market through a human. While a professional would have the knowledge to rely more on statistics and numbers, they are still human, and human emotion can alter the way trades are completed.The only sure way a new investor can trade efficiently is by using a trading program. Trading programs not only rely on information rather then emotion, they have the potential to do all the work for you, eliminating the need for hours of studying to learn the basics of the Forex system.A key to becoming a successful Forex trader is finding tools and services that aide you in making informed decisions. The internet allows investors to access an almost unlimited amount of information Whether it is a program, chart, or article, successful Forex traders rely on any reliable tools they can get their hands on.Training Tutorials- Several types of online training tutorials are available for little or no cost. Typical training tutorials take you from the very basics to the more advanced portions of Forex trading. By reading, studying, and following the training programs as instruction, you gain knowledge and experience in the Forex market, which will help you make informed decisions later.Simulated Trading- Simulated trading programs allow you to work within the actual Forex market without the risk of loosing your hard earned money in the process. Most simulated programs work in real time, allowing you to learn about the real market. Simulated programs often use paper money and work exactly the same as a real trade service. By gaining and losing as you would in the real market, you gain real world experience.Statistic Analyzers- Programs are available that actually analyze information for you. When you are new to investing, the statistics and information may seem to be in gibberish. Statistic analyzers take the information and make it readable by even the newest investor.Real Online Trading Programs- If you prefer to trade without the pressure of learning the trade, you may consider an online trading program. Online trading programs allow you to determine your settings, then the program controls your portfolio for you. Since programs do not rely on human emotion, profits are easily obtainable.One trading system that we have tried successfully is FreedomRocks. This online trading system helps counteract knee jerk emotional trades by helping you stick to a proven successful system. Once your account is setup, you define the preset limits and instructions, and then sit back and watch the program do the work for you. At the end of the day you have a potential of making large amounts of money, without the risk of doing it yourself.Whichever forex system you choose make sure that you stick to it and keep it automated. Emotion and inconsistancy are the greatest enemies to profit.

Forex Risk Management

Forex Risk Management
In recent years, increasing numbers of investment opportunities in the United States have surfaced. Some of these opportunities have a large amount of profits involved, while others present little to no opportunity for financial advancement.If you are new to Forex trading, you may have found that learning the basics needed to succeed may be a daunting task. The only real way to learn is to place yourself, and you money on the line as you learn the basics of the Forex trading system. This truly makes learning this new system a practice makes perfect situation. However, Statistics show that 95% percent of new investors who attempt to trade on the Forex market fail, meaning that you are potentially risking large amounts of money.Another option is hiring a Forex trading professional to do the work for you. This will take some of the pressure off of you. The only flaw with this option is you are still placing large amounts of money into the market through a human. While a professional would have the knowledge to rely more on statistics and numbers, they are still human, and human emotion can alter the way trades are completed.The only sure way a new investor can trade efficiently is by using a trading program. Trading programs not only rely on information rather then emotion, they have the potential to do all the work for you, eliminating the need for hours of studying to learn the basics of the Forex system.FreedomRocks is an online trading system that does just that. Once you account is setup, you define the preset limits and instructions, and then sit back and watch the program do the work for you. At the end of the day you have a potential of making large amounts of money, without the risk of doing it yourself.Because of the risk of getting involved with the wrong situation, new investors are often very scared. This is especially true in the Forex trading market, as a lot of the transactions happen in foreign money. As a new investor in the Forex market, it is wise to learn how to learn to manage the potential risk involved with investing money.Your main tool again potential risk is knowledge. Learning as much as you can before you first trade will help you make informed decisions later. Simple knowledge can be obtained by studying articles and books, talking to a trained or experienced investor, or using a simulation program which allows you to trade within the market, without spending any actual money. Never, under any circumstances should you trade within the real market until you feel confident that you understand the ins and outs of trading on the Forex market. Practicing with real money in attempts to gain knowledge is a huge potential risk.Deciding what avenue in which you will trade is pertinent. New investors that try to trade solely on their own are taking a huge risk. You may want to hire a dealer to handle your portfolio for you. However, a potential risk is involved in hiring a broker, as each broker is very different. If this is the avenue you choose, it is recommended that you check into different brokers before settling with the one that is the best.

Forex Trading Indicators

Forex Trading Indicators
As a new Forex investor, you have noticed that the Forex market is a market largely based on trends. There are a large amount of ups and downs, often in short periods of time. This fact makes the Forex market somewhat unpredictable at times.The internet has literally revolutionized the trading industry. It was once difficult to impossible to trade because investors simply did not have the resources that they have today.The ability to research is a great feature when trading online. Before, the only resource available for research was newspapers and television reports. This allowed little room for comparison. Today, unlimited websites, reports, statistics, charts, and articles are available, giving you the ability to make informed decisions.Perhaps one of the most attractable benefits when using the internet to trade is the ability to use a online trading program instead of venturing off on your own.Since the Forex market is a 24 hour market, you may find following the market through the different time zones and countries to be a problem. The Forex is a fluid market, changing rapidly and often. This may mean that something important happens while you are asleep. A solution to this is an automated online trading program. Software does not sleep, and can check statistics and make changes to your portfolio 24 hours a day.If you are wanting to succeed in the Forex market, you must learn to use technical indicators. These technical indicators will allow the trader to recognize long-term, short-term, and intermediate treads, which will allow the investor to construct his trades and portfolio to reflect the highest possible profits. It may take years for a new investor to fully understand the ups and downs of the market, and how to more accurately predict future trends.One thing you must always remember is indicators only allow you to decide on the probable behavior in which the markets will follow. Even with the most up to date information, indicators are only there to help you make an informed decision. This places a potential risk of loss of time and money.FreedomRocks is an online trading system that actually analyzes statistics and trends for you. Once you account is setup, you define the preset limits and instructions, and then sit back and watch the program do the work for you. At the end of the day you have a potential of making large amounts of money, without the risk of doing it yourself. Since the FreedomRocks trading system relies solely on statistics and numbers rather then guessing, profiting from trading is a sure thing.

Picking the Best Forex Trading Program

Picking the Best Forex Trading Program
Statistics have shown that 90% of new Forex investors fail, 5% break even, and 5% attain profits from trading. The main reason why so many investors fail is they do not have the proper tools needed to succeed in trading. While investing through a broker or trading program does not guarantee success, it greatly improves your chances, especially as a new investor.Perhaps one of the main reasons the percentages of failure in the Forex market are so high is because new investors attempt to invest without any help. It takes years of practice to gain enough knowledge to be able to accurately read the signs and indicators that the market gives off.Another potential reason why new investors fail is because they fail to realize that the market is open 24 hours a day. The market follows countries all over the world including the United States, Asia, and Europe. If you are located in the United States, the market in Asia is open and running. This gives the potential of the market changing while you sleep, leaving you unable to update your portfolio as needed for success.A key to becoming a successful Forex trader is finding tools and services that aide you in making informed decisions. The internet allows investors to access an almost unlimited amount of information Whether it is a program, chart, or article, successful Forex traders rely on any reliable tools they can get their hands on.Training Tutorials- Several types of online training tutorials are available for little or no cost. Typical training tutorials take you from the very basics to the more advanced portions of Forex trading. By reading, studying, and following the training programs as instruction, you gain knowledge and experience in the Forex market, which will help you make informed decisions later.Simulated Trading- Simulated trading programs allow you to work within the actual Forex market without the risk of loosing your hard earned money in the process. Most simulated programs work in real time, allowing you to learn about the real market. Simulated programs often use paper money and work exactly the same as a real trade service. By gaining and losing as you would in the real market, you gain real world experience.Statistic Analyzers- Programs are available that actually analyze information for you. When you are new to investing, the statistics and information may seem to be in gibberish. Statistic analyzers take the information and make it readable by even the newest investor.Real Online Trading Programs- If you prefer to trade without the pressure of learning the trade, you may consider an online trading program. Online trading programs allow you to determine your settings, then the program controls your portfolio for you. Since programs do not rely on human emotion, profits are easily obtainable.Whichever program that you choose to trade with, make sure that it has a proven track record and that it is a program that you will stick with. Trade based on a proven program not on emotion.

Financial Freedom Through Forex Trading in a Few Simple Steps

Financial Freedom Through Forex Trading in a Few Simple Steps
The Forex market is the largest market in the world. It is daily volume averages around 1.8 trillion dollars. Forex currency trading allows investors to trade between two world currencies. By doing this, traders buy and sell with the hope of making a profit. The sheer size of this market makes it one of the most exciting markets in the world. The Forex market is also one of the only markets in the world that are open 24 hours a day, following the United States, Asia, and Europe markets, allowing around the clock trading. If you are interested in obtaining financial freedom by investing, the Forex market may be one of the best markets to trade in, because it yields one of the highest amounts of profits.Step 1: EducationIf you are aspiring to become an expert trader, you must educate yourself. Take time reviewing the various ways of learning the skill of investing. With the power of the internet, you can review articles, attend an online seminar, or even trade via a simulated trading system. However, once you start trading, your education should not end there.Step 2: Pick Your Type of TradingBefore you decide to attempt to trade by yourself, hire a trading broker to help you, or participate through an online trading system, you must understand the pros and cons of each way. Thoroughly research each option, and decide what is best for you.Step 3: Have Patience and Allow Your Profits to BuildWhen you are new to trading, you may be excited to see your profits coming in, however this does not happen overnight. You must learn to be patient. Financial freedom is obtainable, you just have to wait for it.A key to becoming a successful Forex trader is finding tools and services that aide you in making informed decisions. The internet allows investors to access an almost unlimited amount of information Whether it is a program, chart, or article, successful Forex traders rely on any reliable tools they can get their hands on.Training Tutorials- Several types of online training tutorials are available for little or no cost. Typical training tutorials take you from the very basics to the more advanced portions of Forex trading. By reading, studying, and following the training programs as instruction, you gain knowledge and experience in the Forex market, which will help you make informed decisions later.Simulated Trading- Simulated trading programs allow you to work within the actual Forex market without the risk of loosing your hard earned money in the process. Most simulated programs work in real time, allowing you to learn about the real market. Simulated programs often use paper money and work exactly the same as a real trade service. By gaining and losing as you would in the real market, you gain real world experience.Statistic Analyzers- Programs are available that actually analyze information for you. When you are new to investing, the statistics and information may seem to be in gibberish. Statistic analyzers take the information and make it readable by even the newest investor.Real Online Trading Programs- If you prefer to trade without the pressure of learning the trade, you may consider an online trading program. Online trading programs allow you to determine your settings, then the program controls your portfolio for you. Since programs do not rely on human emotion, profits are easily obtainable.

Making Money Using a Forex Trading Program

Making Money Using a Forex Trading Program
Investing in foreign currency, through relatively a new idea, is easily the most lucrative form of investing that exists today. The Forex market is the largest market in the world. It is daily volume averages around 1.8 trillion dollars. Forex currency trading allows investors to trade between two world currencies. Forex investors make realistic profits of one hundred percent plus per month.However, it is necessary for new investors to make it a point to learn the strategies and information surrounding the market. This is what makes the difference in successful Forex traders, and those who fail. Depending on your situation, you may have the time and money to learn the technical aspect of the Forex market, however chances are if you are new to the market, you do not.If you are new to Forex trading, you may have found that learning the basics needed to succeed may be a daunting task. The only real way to learn is to place yourself, and you money on the line as you learn the basics of the Forex trading system. This truly makes learning this new system a practice makes perfect situation. However, Statistics show that 95% percent of new investors who attempt to trade on the Forex market fail, meaning that you are potentially risking large amounts of money.Another option is hiring a Forex trading professional to do the work for you. This will take some of the pressure off of you. The only flaw with this option is you are still placing large amounts of money into the market through a human. While a professional would have the knowledge to rely more on statistics and numbers, they are still human, and human emotion can alter the way trades are completed.The only sure way a new investor can trade efficiently is by using a trading program. Trading programs not only rely on information rather then emotion, they have the potential to do all the work for you, eliminating the need for hours of studying to learn the basics of the Forex system.FreedomRocks is an online trading system that does just that. Once you account is setup, you define the preset limits and instructions, and then sit back and watch the program do the work for you. At the end of the day you have a potential of making large amounts of money, without the risk of doing it yourself.Money is made using the FreedomRock Forex trading system 2 ways. The first way is by buying low and selling high. For example, The Euro and Swiss value is going up, so your portfolio manager it will automatically buy shares of the USD/Swiss at the predetermined price, which you setup when you create your account. At the same time the program will sell the USD/Euro while it is up, locking in profit.The other way of making money using the Forex trading system is by collecting on the interest each central banks pay on their currency. The United States federal reserve determines that the current interest is 5%, while the Swiss government determines that their interest rate is 1.5%. When you trade you are earning 5% on the US currency, and spending 1.5% on the Swiss currency.

Trading In Future Options

Trading In Future Options
A customized contract drawn between two parties to buy or sell a predetermined quantity of a particular commodity's given amount at a predetermined future date is known as a forward contract. Exchange-trade forward contracts on futures for example are stock or commodity exchanges. The exchange standardizes the terms of the exchange.There are several standardized items involved in any futures contract. They are: the month and date of delivery; the quality of the underlying product (for financial futures they are not required); the quantity of the underlying product; minimum change of price (called 'tick-size'); price quotation on the units (not the price itself); and finally the settlement location.Concerning futures, once the trade is confirmed between two members of the exchange, the exchange house becomes the counter-party and guarantees every trade. With the market reporting of volumes and price being standardized futures contracts are more fluid and their price clearer. Any member of the exchange has the ability to reverse a futures contract. A Contango market is when the futures contracts are pricedabove the spot price. Should the price of the futures frequently fall below the spot price it is known as a Backwardation. A call option is an option to buy, and is purchased in expectation of rising prices. A put option or sell option is purchased to protect investment profits against the expectation of a falling price.The use of options, like futures, give both individuals and firms a hedge against the risk in wide price fluctuations. This gives speculator the opportunity to gamble for greater profits with limited liability. With future contracts there are no up front costs (called the Premium) to enter, unlike an options contract that has immediate costs upon entering.As with any investing you must weigh the risks versus rewards before setting forth.

Software For Options Trading

Software For Options Trading
We can learn all the aspects of options trading with the useful help of options trading software.When we use this software we teach ourselves how to develop the strategies for advanced and consistent earnings, speculative earnings and portfolio protection. With the use of options trading software we learn to best intermediate and advanced trade strategies to discover and verify the best options.Having a proper understanding of the securities market and its structure can not be emphasized strongly enough to the investor. The use of the term securities market is all encompassing one, but primarily pertains to the buyers and sellers of securities. The expanded use of the term includes the structure making up the agencies, institutions and sale and or re-sale of company securities.Options trading software has a pivotal role with regard to this, in that we the investors are aided in selecting the securities when we invest our money. When we the client place an order with our broker the order is generally place over either the internet or phone line to avoid delay. Those of us who use options trading software can foresee the future trends in pricing with our objective of maximizing our gains that come out of fluctuations in the share value. Should our expectations come we investors will succeed in earning a profit.A word of caution, in that if prices don't change with our expectations we the investor could be faced with losses. Options' can also be used for hedging which is a device to protect oneself from losses. When a bull speculator decides to purchase a security, he sometimes to protect himself against losses by using hedging and buying a put option. Should he suffer a loss in his original transaction it will be offset by the put option. Likewise a potential seller can protect himself against loss with the use of a call option. When we use options trading software it has a significant role in minimizing our losses. If the price of a share persistently has a downward trend, we the investor may want to order our broker to sell at the current price and cut our losses to a minimum.

How To Double Your Profits Trading The Same System

How To Double Your Profits Trading The Same System
Most traders, quite understandably, concentrate more on getting their trades right than their stakes correct. After all, if you can't pick winning trades then the rest doesn't count for very much, does it?However, if you ARE a winning trader, even if only occasionally, then the correct staking approach can turn loss into profit, and profit into real wealth. Before I start, however, it's important to establish one thing right away. You will often read elsewhere that it doesn't matter how you stake or what method you use - winners will always make profits and losers won't.Well, as someone who trades the markets every day I can say that the only people who write that kind of nonsense are those individuals who don't have to trade for a living, but who still feel the need to tell others about what they obviously don't understand. In fact, just like the psychology of trading, correct staking is a critical element in trading success, and I shall be covering it in detail in a series of articles following on this one. The correct staking approach can easily DOUBLE your normal profits (and I'll show you exactly how) and similar care taken over the handling of risk to your trading capital can maximize your profits even further, whilst avoiding the possibility of the dreaded 'wipeout'.The Trading BankThe notion of the 'Trading Bank' is so misunderstood, or so ignored, by so many people, that it's important to reiterate the point now.First of all, you must put aside an amount of money just for trading. This sum does not vary because of the amount needed for the housekeeping, or holidays, or birthday presents. It is treated the same as if you had deposited the money 'in the bank', hence it's name. The Trading Bank is your particular deposit account which will accumulate 'interest' (profits) through your own success.As such it has to be considered an amount that you could lose in its entirety. The lot. Kaput. Gone for ever. If that hurt is just too much then reduce the amount until it reaches a sum that won't cause such pain.It is also a sum that you don't dip into. It is not to be used for paying the housekeeping or the kid's pocket money. Remember, this is a 'deposit' account, not a 'current' account, and there are costs associated with withdrawal - a loss of future earnings.Trading PointsTake a dive on $50,000 in a day then think about what you might have bought with that kind of money and you'll never step up to the plate the next day. Similarly if you make $50,000 profit - you'll be too busy out spending it to bother again with the nasty business of trading.So, right from the start, it's important to move your thinking from something tangible, like dollars, to something very intangible, like points.How To Divide Your Bank Into PointsYou can call them what you like - widgets, carrots, it doesn't matter - but the principle of calculating their real value always has to be the same. At its simplest, a point is a fixed percentage of your total trading capital. A 100 point bank, for example, comprises all of your money divided by 100, each 100th, or 1%, then being 1 point. Similarly a 1000 point bank is all of your money divided by 1000, each point then being worth 0.1% of your bank.Points Make ProfitsIf you've taken on board the concept of dividing your trading bank into points the obvious question that should then arise is, 'Well, how much do I divide the bank by?'. The snappy answer is to say, 'It depends', but that doesn't get you anywhere; just to say for now that the divider is dependant upon the level of risk of the trading method you're using.This is a concept that has been turned into a 'holy grail' of staking under the name of the Kelly system, but I know very few people, including the best traders, who truly understand how to use it. The simplest way of thinking about it is to say that the Bigger The Risk, the Bigger The Divider.At its very simplest that means that a strategy that is twice as risky as another (i.e. half as successful) should be staked using points of half the value of the other.