Forex Trading Academy

Trading Journal - Your Trading Pillar for Success

2008-11-29T19:17:00.000-08:00

If you are trader (whatever it is - stock/options/future/forex) and never had your trading journal started, this is my genuine advice - Start it now !!! And do not wait !!!

Trading journal is one of the upmost criteria for a successful trader, of course, it is equally important for all the beginer trader. But from the start, you will be definitely facing discipline issue as recording down every single trade is not an easy task for every one, especially for a person that is not very well organized for his stuff.

But once you started it, you will start to see more results, it is just a like a journal, to understand yourself better. A trading journal will let you understand yourself more about your trading style and behaviour.

Then why do we need to have trading journal? The reasons are simple:

1. First, it gave you more time to think before you enter your trade while you still entering data in your trading journal before entering the market. Many times, you realised that your trade is based on emotion more than analysis. Give yourself a valid reason why you enter the trade, and what is your exit strategy.

2. Second, it provide reference information when you trace back why did you enter the trade in the first place. Whether the result is making profit or loss, your record is important for you to know what you did right and what you did wrong.

3. Lastly, to calculate the profit/loss in a systematic way, as well as providing a performance chart for yourself to track your profit/loss, as well as your winning/lossing trade ratio, etc.

If you are excel expert, you can make a simple trading journal by using excel. If you are not, and would like to use what the expert promote - here is one for you.

My friend Grag has introduced a trading log sheet to me which I find it very useful and comprehensive.

You can find out more from here - http://tradingspreadsheets.com/

For all Stocks / ETF, E-mini Futures, and Forex (Fx) Currency Pair traders!

Plan it... Trade it... Track it !!!.

A glance at the "Spread`Suite's" 8-different sheets

This trading spreadsheet is basically created with excel, with all the necessary information to guide you how to use it. Like all the software you use, first thing first is to familiar with product you are going to use.

You want the excel do the rest of the calculation after you key in the necessary data, this is one for you. It allows you to record your "entry note" and "exit note" in the comment column, because the reason you enter and exit the trade is upmost important, it let you understand your trading behaviour bettter.

It provides your performance chart based on your monthly profit/loss, and most importantly you can now track every single trade you entered.

I would say it is basically a comprehensive trading journal package whatever you need to analysis your trading performance.

To your successful ! Cheers ! Find out more about trading from http://www.traderwork.com/

http://www.traderwork.com/ - Reveal the Secrets of Options Trading !

2008-11-28T17:28:00.000-08:00

If You are looking for free Options Trading Resources adn tips, this site is for you.

Present to you, TraderWork.com http://www.traderwork.com/.

I would love to share more information about options trading, tips, articles as well as my trading journal.

It is a wordpress theme with 3 column, 2 sidebar at the right with easier browsing other information I would to promote.

You can easily find the recent post, category and tag cloud at the right, or simply using the search box.
If you love articles, simply click on the article category, and my articles under Paul's article category.

Pages are all on top, just below the blog title, I have optimized it so user can find more useful information there.

Trading is an art, as well as building a website. I hope you like the new appearance.

Free free to stop by and give me some comments, both positive and negative, I welcome that!

3 Reasons to Trade Forex and Not the Stock Market

2008-11-27T18:31:00.000-08:00

This is a great time to start to learn about forex trading software. Why? Because with a little self discipline you can make money all day long when trading in currencies. Right now property is on the slide, stock markets are collapsing and you have probably missed you chance to get hold of some gold at a reasonable price for the next few years. But there is always money to be made with currency and the best forex trading software can help you get it.

And because of the global financial turmoil now is an even better time then ever to get your feet wet for a reason I will outline below.

Here are three reasons you should be trading forex:

1. Liquidity. No doubt you will have read how much is traded everyday so I won't repeat it, but maybe you didn't realise what it means to you. The fact that so much money is traded constantly means you can always enter or exit the market on your terms. You will never be stuck in a deal trying to find someone to buy your overpriced stock like you might in the equities markets. Because of the huge demand for currencies all across the globe from among others, central banks, you will always be able to take profit or cut losses when you need to.

2. Simplicity. You don't need to get yourself bogged down in company statistics and financies. You don't have to examine the financial health of a company and its history and profit predictions. You don't need to read the annual report or evaluate the price per earnings ratio and THEN have to go on to decide whether to buy or not. All you need to do is familiarise yourself with the characteristic movements of a few currency pairs and then watch them, which brings me to the final point.

3. Trends. Again you have probably heard the maxim "the trend is your friend" and it is true. Currencies have long periods where they are either in an upward or a downward trend. All you have to do is get on the right side of the trend and you are in the money and forex trading software can help you do this so you don't have to be in front of the computer constantly. Once you are in the market riding either an upward or downward trend, ride it all the way to the beach.

Get yourself some forex trading software that identifies trends, entry and exit points and get started. Apply good money management and you will maximise your profits and minimse your losses.

Forex trading software takes the pain out of forex trading. You are only human after all and so are subject to the emotional rollercoaster that goes hand-in hand with playing the markets. Try the Forex Autopilot System to help secure you financial future.

Article Source: http://EzineArticles.com/?expert=David_Gregson

Online Forex Trading - Beginners Guide

2008-11-27T18:30:00.000-08:00

When it comes to forex trading, understanding the terminology and the forex trading strategies before you begin is vital. There are many web based companies that provide online forex trading tutorials that revolve around real time forex trading. Using a forex tutorial will give you the beginner knowledge you need to take part in trading forex.

After you have completed your forex tutorial there are some basic forex trading tips that all beginners will find useful. The most important thing to remember when trading forex and the most important forex trading strategy is to remember to always place stop loss orders. Using this strategy in your online forex trading will help to prevent and limit your losses.

The next important step for online forex trading is to take profit orders at the same time as placing your stop loss orders. This is done by using the OCO order function that is available with most online forex trading systems. Take profit orders work on the same basis as the stop loss orders and help to eliminate the risk of locking into a profit too early.

Another beginner’s tip is to use a positive risk/reward ratio. This means that you should choose the amount you are willing to make on your forex trade beforehand and it should be more than or equal to the amount that you are willing to loose. This tip is essential if you want to be successful in your forex trading.

It is important for any forex trading beginner to note that successful online forex trading takes patience and is a long term investment. It takes controlled forex trading along with discipline and patience to make your forex trading profitable. Continued research and forex tutorials and guides will help you to learn more and remember as with all successful ventures; knowledge equals power.

We have made the most comprehensive Forex trading strategies research. Find it only on the Online forex trading strategy planet. All about forex trading onhttp://www.leandernet.com/Forex/Online_forex_trading.php

Article Source: http://EzineArticles.com/?expert=Oliver_Turner

How to trade currencies

2008-11-27T00:17:00.000-08:00

by Christina Pomoni

The daily trading volume of currency trading is a little bit over $3.2 trillion making forex trading the largest market in the world. Even compared to the New York Stock Exchange (NYSE), which is the stock exchange with the largest daily turnover reaching nearly $50 billion, the currency trading market is largest by far.

A currency's value is always estimated in relation to other currencies. What forex trading does is to leverage the fluctuations in a currency's relative value based on the purchase and sale of large quantities of currency around the globe.

The spot rates are the rates paid for delivery of a currency on the spot, which in real terms cannot be more than two days after the day of trade. It is also possible to buy or sell currencies for delivery at some agreed-upon future date, typically one to three months from the day the transaction is negotiated and this is the exchange forward rate. Typically, the amount of currency trading is one lot, which is equal to 100,000 of currency value.

Example of forex trading
To illustrate how forex trading works, we assume that the current bid-ask price for EUR/USD is 1.0115/1.0120, meaning 1 (EUR) costs $1.0120 US dollars (USD). If investors feel that the euro is undervalued against the dollar, they would buy euros and sell dollars waiting for the exchange rate to rise. The trade would be buy 100,000 and sell $101,260.
Now, we assume that EUR/USD rises to 1.0230. Since investors bought euros and sold dollars, they should sell euros for dollars to realize any profit. So, investors sell the 100,000 at the current EUR/USD rate of 1.0230, receiving $102,360. Since originally they sold $101,260, the realized profit is $1,100 ($102,360 $101,260).
Now, assuming that the EUR/USD had fallen by the same amount, investors would have suffered a loss of $1,100 instead of a profit.

Investors prefer currency trading because the spreads are extremely low thus lowering the cost of the trade. Also, the volatility is extremely high and this may offer to investor enormous gains from one trade. To get an idea, the volatility over spread ratio for the forex trading market is 500:1, while the best stocks have 100:1. The main reason that the relative value of currencies fluctuate is because it is subject to conversion very often. Importers, exporters, tourists and governments buy and sell currencies in the foreign exchange market. Another reason is that investors speculate the future movement for a currency and they buy or sell accordingly. Speculation typically has radical consequences on a national currency and consequently on a country's economy.

Investors who favour currency trading typically avoid emotional trading. They set their original plan and they do not deviate from it. They are able to assess unfavourable swings and exit the market, but they base their strategy on market realities and not on gut feelings. Moreover, they follow the market trend and they apply strategies they understand how they work and, most importantly, what are the risks and benefits involved.

In reality, foreign exchange market is mostly open to bank conglomerates and large multinationals. However, ground-breaking technological advancements made it possible for individual investors to reap the harvest of forex trading. The only thing individual investors should keep in mind is that, if you cannot afford to lose, you cannot afford to win either.

Learn more about this author, Christina Pomoni.

Forex Trading - 10 Accepted Forex Wisdoms That Are Wrong and Cause Losses by Kelly Price

2008-10-16T01:20:00.000-07:00

If you want to win you need to forget about the commonly accepted wisdoms about Forex Trading told to you online. Most people follow them and remember - most traders lose...

1. Forex Trading is Easy

Vendors continually tell you this and tell you that they can lead you to success with little or no effort; alas it's not true, as we said 95% of traders lose! Winning, depends on having a sound forex education and knowing what you're doing. You're in charge and if you accept this, you can win.

2. Forex Robots Work

A Small minority do - but not the vast amount of forex robots sold for $100 or so.

Why?

Because they have never been traded!

The track records look good but that's simply because they are a back test, on historical data, knowing the closing prices, well if you the exact prices its not hard to make a profit. If you want to lose, the majority of forex trading robots are great way to do it.

3. Day Trading restricts risk and Increases Rewards

This is a dumb way to trade, it's pretty obvious that all daily volatility is random and you have no chance of winning long term. Sure, vendors claim profits but like the robots earlier it's all simulated profits on paper not real cold hard cash you can spend at the store.

4. Complex Mathematical Algorithms Can Predict

This always makes me laugh - forex trading is a market of probabilities not certainties, so what is the use of complex mathematics?

If I ever see a system based on complex maths, by some nerd I'm off to the next one. The best way to make forex profits is with a simple, robust trading system which has fewer elements to break than a complicated one.

5. Risk 2% Only per Trade

This is ok on 100k account - but let's see on a small trader account that equates to $20.00 - well short term volatility will have that. Risk 10 - 20% and remember - this is not being rash, it's simply risking enough to make enough and if you take calculated risks, when the odds are in your favour you can win.

6. Always Diversify

Again ok for a big account - but on a small account diversification simply means you dilute the potential profit of a great odds trade, with a marginal trade.

Forget diversification.

7. You Need to be on top of Market prices all Day

I have seen people who think this helps them win - it doesn't.

You should check prices maybe once or twice a day and that's all you need. This myth is put about by day traders, who lose chase prices around in random volatility and lose. Don't join them and get caught up in the noise.

8 You Need to Constantly Educate Yourself

The more you learn the better a trader you will be - rubbish!

Forex trading has got nothing to do with this. You don't get your reward for your effort, you get rewarded for making money with your trading signal and that's it.

I have never changed my forex trading system in 20 years, it works, has losses but the profits are bigger. Sure its not perfect but no system is.

Saw someone giving forex advice that you should write down and learn from your losses really?

What use is that you lost! All trading systems have losses, if your system is soundly based profits come as well - there is nothing to learn.

9. Use a Demo Account

To see if you can win in real life use a demo account. Fact is most traders who win in demo accounts, don't win in the market - why? Because there is absence of pressure and forex trading is a pressure environment, money is on the line.

It can help you get familiar with the trading platform but that's it.

10. The More Leverage you Use the Better

Most people think that brokers give 200 or 400:1 leverage out of the goodness of their hearts. In reality, most are market makes i.e. they win when you lose and they know investors will over leverage and blow their accounts up. 10 - 20:1 is plenty of leverage on most accounts.

Final Words

So there you have 10 commonly accepted wisdoms, that most traders believe and there all wrong. If you want to win understand the majority lose and believe one or all of the above so called wisdoms - don't make the same mistake.

Get a sound forex education and focus on doing what the majority don't do and you can win.

About the Author

NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info on Making Money in Forex visit our website at:http://www.learncurrencytradingonline.com

It Is Crucial That Forex Traders Learn To Interpret A Forex Chart

2008-10-09T23:53:00.000-07:00

Forex charts are a key component of the forex trader's toolbox and it is vitally important that any dedicated trader masters the skill of interpreting forex charts.

There are several different weapons in the forex trader's arsenal and one very important tool important is the forex chart. Simply put, a forex chart is a graph of the prices of a chosen currency pair over a given time period. Reading forex charts is critical to any forex trader’s business and so it is important to know how to read them and to understand just what they mean.A forex chart is plotted for a currency pair such as the EUR/USD or GBP/JPY and shows the movement of the currencies concerned against one another over a period of time. For instance, a EUR/USD chart tells you how the Euro and the US dollar have moved against one another during the period for which the chart has been plotted.Along the bottom of the chart you have the timeline that can for example be divided into 15 minute, one hour, one day, one week, or longer time periods. Then going up the right-hand side of the chart are incremental values that are generally set to run from just below to just above the lowest and highest prices reached during the period in question. For example, for a EUR/USD chart the values could run from 1.2534 at the bottom to 1.2566 at the top.Forex charts are helpful because they paint a clear and simple to read picture of just how a pair of currencies is doing and you can see at a glance if a currency is strengthening or weakening so that you can act as necessary. The choice of a time frame for a forex chart is also important as a short time scale can help you to see minor trends while a long time scale can help you to identify longer term trends.You can find free forex charts across the Internet on numerous different websites and many of these will even let you put charts on your own websites. These charts are alright for glancing at trends from time to time but serious traders will have to have access to much more detailed charts that are continuously being updated in real time. This is essence means having access to suitable forex trading software that is operated on a broadband internet connection so that you are always connected. Anything less than twenty four hour access to the most up-to-date forex charts covering a wide range of different currencies will make life very difficult for the serious trader.With dozens of the world's currencies being traded every day there are way too many currency combinations for anybody to track of them all in their heads and the beauty of the right forex software is that it permits you to see multiple forex charts to show at a glance exactly what your favorite currency pairs are up to. Of course you will wish to keep a close eye on those forex charts displaying currencies in which you have already made investments, but you are also going to want to keep track of other currency pairings which you might wish to open trades in if they move in the right direction.Being able to easily and quickly watch the progress of a wide variety of currency pairings means that you are much less likely to miss investment opportunities that you could easily miss without access to the right forex charting software.

About the Author

LearningForexTradingOnline.com provides information on currency trading and also includes details of the importance of real time forex charts

Trading Rule Part 1 - Set the Difference Between Novice and Professional Trader

2008-10-02T05:32:00.000-07:00

If you ask me what is the major difference between a novice and a professional trader, the difference is whether he or she set the trading rules and follow the rules. There are thousands set of trading rules that you can create or follow, what I recommend is that you do not need to create a certain of trading rules, you can just follow them which came from the famous investor and traders.

One of the famous investor that I admire and respect a lot is Warren Buffet. In his world, rules are more important than anything. His famous quote is as follow:

Rule 1: never lose money
Rule 2: never forget rule no 1

Funny enough? But the fact is, many people understand the importance of setting rules but never learn to follow the rules.

For part 1, I would like to share the rules that I follow before I enter the market.

Rule 1 - Always do market research before market open:
Open your CNBC or any finance website to get the latest update, understand what's happening in the market right now. Either is it oil price drop, or some where having a war, focus on news that may be making any impact to the US market and the stock you are trading. After learning the news, try to figure out the market sentiment, for example, is oil inventory going lower a good thing to the market? Certainly not! With the latest news in hand, it will help you to make a better decision when entering the trade.

Rule 2 - Limit your trading size:
Do not over trade, always make sure you have enough money to play for the next game. Thumb of rule is always using 1/20 of your total money for each trade. If you have $5000, each trade is $250, in that case you can have 20 games to play.

Rule 3 - Give your trade a reason:
Before entering the position, make a note and jot down what makes you buy or sell certain options, as well as what strategy you use, and why? Put all this down in your trading journal, so that you can revise it back. If you end up a loss, make sure you understand where the problem is. If you earn a profit, remember what you did right.

Rule 4 - Set exit level:
When you see a potential trade, holds your trigger, make sure you set your exit level before clicking the button. Many people are good traders, they know when to enter the trade, but do not know when to get out. You need to set two exits, one for your stop loss, one for your profit limit. Especially for stop loss, set at the level that you are comfortable with your risk level, from the technical point of view, you can set your stop loss at certain support level, when the stock break through the next support level, cut the loss and run.

To learn more about options trading, please find out from TraderWork.com Always trade with your passion!

I love options trading and I am here to share my humble experiences so that you can be benefited from it. You can find out more from http://traderwork.com Always trade with your passion! Cheers!

Article Source: http://EzineArticles.com/?expert=Paul_Liew

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2008-09-21T21:21:00.000-07:00

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Forex Strategies

2008-09-21T21:15:00.000-07:00

This article is about forex trading strategies. Know more about various forex strategies used by forex traders for maximizing their profit and also minimizing their loss. Learn about the need of a forex strategy for an online forex trader.

Forex strategies are essential for a forex trader to profit from the market. Forex trading strategies make a trader more sophisticated and confident by helping him in making right calculations about the market. In a market with always changing exchange rates it is foolishness to trade hysterically by just following the emotions or advices from unreliable sources.

There are lots of forex trading strategies followed by forex traders. They can be broadly classified in to two type of strategies are profit maximizing strategies and risk minimizing strategies. The strategy differs with individuals as each trader has unique needs and has unique trading abilities. A trader must design a forex trading strategy according to many factors such as his or her initial investment, account size, trading ability, risk tolerance, currency pairs trading, geographical limitations/advantages, the broker to which he is affiliated, the trading system he/she uses, the profit goal (short-term profit or long-term profit), etc.

The most followed forex profit maximizing strategy is the leverage. Leverage allows forex traders to trade with more funds than in his or her account. The leverages are provided by the forex brokers to their clients. The usual leverage is 100:1 – i.e., for $1 in account the trader can borrow $100 from his broker. Day traders get much more leverage than other traders and the ratio leverage differ with brokers and also with the account minimum, type of contract trading etc.

The most popular forex risk minimizing strategy is the stop loss order. Stop loss orders help traders to limit their loss by stopping a trade at a preset price. Forex trading systems allows traders to set their stop loss order prices. One related strategy is the trailing stop losses, which are proportional stop loss prices that come into play only when the prices are falling. There are also many other types of stop loss orders available which mainly depends on the broker to which the trader is affiliated to.

One another related strategy is the automated order entry. Automated order entry enables a trader to enter into a trade at a preset price rate automatically. The trader can set the price at his trading platform. Automated order entry methods help traders to enter the market at most favorable time. Apart from these strategies forex traders can use forex futures and forex options to cover the loss and well as to cover the profit. These contracts help forex traders to buy or sell currencies at a predetermined rate at a point of time in future.

Apart from these trading strategies, forex trader follow many other strategies for choosing currency pairs, trading hours, entrance and exit prices etc. Irrespective of the type of the strategy, all forex strategies involve risks. The success of a forex strategy depends on many factors like the market condition and the discipline of the trader.

Praveen Ortec works for NobleTrading.com, an Online Forex Trading Broker offering free advanced Forex Trading System and forex trading information through Stock and Forex Market Trading Blogs.

Euro V U.S. Dollar - Big Profit Opportunity Shaping Up Right Now by kelly Price

2008-09-14T23:26:00.000-07:00

We have written several articles on the US Dollar - Euro pair and have been bearish since it failed at 1.60 and it's piled up a huge gain. So where is the pair going after the big gains in the euro on Friday? Let's take a look.

Let's take a look at both the fundamentals and then some technical levels, fundamentals first:

The euros fall from the 1.60 has seen fall down to below 1.40 in a dramatic decline and as we pointed out before:

The euros true value in purchasing terms is about 1.20!

The whole rise in the euro in recent history has been driven purely by interest rate perceptions - with the view the euro would hold the advantage. When this view changed and sentiment shifted, the decline was dramatic.

Interest rates now clearly favour the US dollar and we expect more selling in the euro.

A Short Covering Rally

So we would simply view this rally as a long overdue short covering rally and the fundamentals point to a euro which could, test and break its lows. The euro is deeply oversold and to many weak speculators hold shorts and they need to be shaken out of the market.

Now let's look at the charts and see where the rally might go.

Pull up a chart of the currency pair and put these indicators on the chart - Bollinger Band, Stochastic and Relative strength Index (RSI). If you don't know how they work simply look up our other articles, there easy to use and very powerful in giving you clues to future price direction.

Check Resistance and Momentum

On the chart the first resistance is around 1.44 and then 1.45 (the mid average of the Bollinger Band) and Major resistance is at 1.48. Now pull up the RSI and stochastic, these give you the momentum of price -RSI is starting to flatten out after a strong rise and the stochastic is up.

A good way to trade the pair is - you know a short covering rally is underway but the major trend is down, so wait for it to run its course.

Confirmation

A cross in the stochastic supported by the RSI into one of the resistance levels, will indicate a possible end to the relief rally. The key is a cross down on the stochastic with bearish divergence. DONT sell and predict - wait for confirmation that momentum is down into a key level.

This is the first major short covering rally we have seen, so it could be quite spiky and a good way to play it and get limited risk is - to use at or in the money put options with plenty of time to expiry. You can of course play straight forex, with stop closes, behind the key level you sell at.

Is the euro bear market over?

Probably not, the currency still has downside but the sentiment is at a bearish extreme.

We need to see a relief rally and this is occurring right now. We think it will allow another opportunity to sell, for a test of the lows, we shall see.

This article was written on Sunday 14th September 2008.

About the Author

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info and a RISK FREE Currency Trading Coursevisit our website at: http://www.learncurrencytradingonline.com.

Find out how you can create wealth in Forex by 10 mins a Day!

Daily Forex Market Update - 2008.09.01

2008-09-02T02:05:00.001-07:00

Forex|Technical Analysis| 08.28.08 |FXReturn.com

2008-09-02T02:01:00.001-07:00

Facts about currency market

2008-09-01T22:49:00.001-07:00

Being an awakened forex trader, you should undertake a rigorous analysis of the present and future scenario of the country, currency of which you are trading in the currency market. The best way to determine the potentiality of a currency trading is undertaking technical and fundamental analysis.

Forex is the largest trading market of the world. It is the place where currencies from all over the world are brought and sold with an aim to earn substantial profit. The market is known for its long trading hours, high trading volume, geographical dispersion and extreme liquidity. Because of the nature of market and its trading pattern, new traders are coming here everyday and earning good profit. Major currencies which are traded in this currency market are US dollar (USD), Euro (EUR), Japanese yen (JPY) British pound (GBP), Swiss Franc (CHF) Canadian dollar (CAD) Australian dollar (AUD) etc. While trading in currency market, you have two choices at your disposal. You can either select a forex broker, who will trade in the currency market on behalf of you or you can trade in your own way by employing your own ideas. In both the cases, you need to be aware of the basics of the currency trading. You should understand what actually matter here and how to combat the odds of currency trading. The technical and fundamental analysis of the currency market helps a trader of currency trading in several ways. It gives an insight into the mechanism of the forex trading. It is beneficial for both experienced and newcomers of the currency trading market. However, newcomers should take tutorials before landing in the forex market. Tutorial regarding currency trading helps a new comer to understand the market from its root. The training and tutorial program regarding currency trading of the forex can be easily accessed through online method. Just with a single click and you can access several training programs of currency market which are designed for trader of all kinds. These training programs of currency market are excelled by professionals, who have years of experience in currency trading. You can even find several online forex firms, who offer free forex training programs. With access to such training programs and tutorial packages, you can prepare yourself for a winning forex trading.

About the AuthorForex is the largest market place of Currency trading. While currency trading in Forex Market or dwelling over currency market, one should mull over the present scenario and future prospects of the country, currency of which he is trading.

Currency Quote

2008-09-01T22:48:00.001-07:00

Currency Quotes - Very Important: ADVERSE CURRENCY FLUCTUATIONS Don't run the risk of fluctuations! Currency Brokers, can, by fixing a rate for your currency requirements today for a purchase in the future (up to 6 months).

Copyright (c) 2008 Phillip Booker

CURRENCY QUOTE - CURRENCY EXCHANGE can be the single biggest cost when buying property abroad. Allow me to illustrate with these two brief examples:

ADVERSE CURRENCY FLUCTUATIONS

Don't run the risk of fluctuations! Currency Brokers, can, by fixing a rate for your currency requirements today for a purchase in the future (up to 6 months).

Currency Example... The Pound against the Euro... 16 months ago was ¬1.48/ Ј1.00; 6 months later it was ¬1.32/ Ј1.00. On a Ј100,000 transfer the difference in those 6 months is Ј12,000

Currency Example... Again the Pound against the Euro... in February 2008 the exchange rate was ¬1.32/ Ј1.00; in July 2008 it is ¬1.26/ Ј1.00. On a transfer of Ј200,000 the difference in those 6 months have been ¬8,000 (approx Ј6,000)

When getting a currency quote the Currency Broker can give you a quote by using a fixed rate that is valid for 6 months. Using the Euro against the pound is, and has been a good example of two currencies on the move with fluctuations daily

Trading Currencies and Buying Property Abroad are the two major reasons for changing currency. A close third is when regular payments are made to a different country and subsequent different currency. However a casual approach which is taken by many when buying property abroad can be the single most expensive part of buying abroad.

Getting a 'Currency Quote' when buying property abroad is obviously an important process, but more importantly is getting at least two quotes, possibly three. At the end of the day it is a competitive market and we should compare quotes.

To conclude; where I started about currency fluctuations... When buying property abroad, remember this process... When you first have an offer accepted it is wise to get a currency quote and ask about getting a fixed rate quote which will be valid for 6 months. Plus get the advice of the currency broker as they deal within currencies 24/7. Many experts have suggested the Euro has hit its peak against the Pound and perhaps over the next 6 months the pound may gain some ground lost over the last year.

Remember Currency Exchange is a costly business if you treat it casually. I can recall one person losing Ј15,000 by assuming his bank was getting him the best deal. Always get 2 or 3 quotes! Forgetting this advice and you may lose up and over Ј15,000 on your Currency Quote

About the AuthorCurrency Quotes Mr. P. Booker, enior Currency Expert and Columnist Pounds Euros Dollars

Currency Trading Three Reasons Why It Beats Stock Trading

2008-09-01T22:35:00.000-07:00

There are several different ways to trade but these days it seems everyone is talking about Forex and currency trading. Check out these three reasons why it beats stock trading.

Profits in a Bear or Bull Market

Currency can bring growth during both a bull and bear market which is one of the three reasons why it beats stock trading. There is no short selling restrictions and there is profit potential no matter where the market is going. With Forex you sell on currency and then buy another. Even in fluctuating markets a trader has the ability to profit in both short and long positions.

50 Times More Leverage Than Stocks

It quickly becomes apparent why you want to go with currency trading over stock trading another reason why it beats stock trading. Foreign exchange trading with Forex will land you up to 50 times the leverage of what your stock accounts can do.

Diversity Here Is Like No Other

Forex can offer a broad diversity. The balance of trade between nations is detrimental to the value of the currencies. If a nation imports more than it exports it will have a deficit trade balance which is considered not favorable to currency value. So you see currency trading beats stock trading.

A prudent investor will know that they need to diversify their US dollar balance through holding a variety of currencies which can be somewhat challenging since almost all US banks offer only a few other currencies. Through Forex and foreign currency trading you can control hundreds of thousand of dollars worth of currencies that will give you more than 50 times the leverage of the stock market which again proves why the currency trading beats stock trading.

Open For Business 24 Hours A Day 7 Days A Week

You can trade Forex 24 hours a day 365 days a year. Your trading can start at 5:00 PM EST with markets in Sidney and Singapore. Only a few hours later Tokyo opens up, next is London opening at 2:00 AM EST and soon New York with it’s world currency markets have already been open for 15 hours. The stock market offers you no such easy access which is why currency trading beats stock trading. In fact Forex is the largest, most liquid market, open 24 hours a day for trade.

You’ve got 3 reasons why currency trading beats stock trading but there are plenty of others.

Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)

About the Author
Joel Teo invites you to submit your best articles to http://www.GlobalProsperity.info/ the best free article directory. When you submit articles for free, your articles may be picked up by ezine publishers.

Forex Trading - Understanding Forex Charts

2008-08-31T08:38:00.000-07:00

Understanding technical analysis and, in particular, being able to read price charts is essential for any Forex trader. This article serves as an introduction to the often complex world of Forex charting.

For the majority of Forex traders their trading strategy will be based very largely on technical analysis. This means, amongst other things, that the Forex trader must have a sound knowledge of technical analysis and, in particular, an ability to read charts.

Price charts are used to convey information about Forex prices at specific time intervals, which can range from as little as one minute up to several years. Prices can either be plotted as simple line charts or price variations can be plotted for each time interval to produce a bar or candlestick pattern.

Line charts are particularly suitable for giving a broad overview of price movements. They are normally plotted to show the closing price at each chosen time interval and they are easy to read and clearly define patterns in price movements.

Although not quite as easy to read, bar charts provide far more information. The length of each bar is used to indicate the price spread for a given period, with long bars indicating a large variation between high and low prices. Opening prices will be shown on the left tab of a bar and closing prices on the right tab so that you can see at a glance whether the price has risen or fallen and just what the variation in price was. When printed out bar charts can be difficult to read but most software charts will have a zoom function which makes reading closely spaced bars much easier.

Candlestick charts, which were invented by the Japanese to analyze rice contracts, are similar to bar charts but are easier to read as they are color-coded. Green candlesticks are used to show rising prices and red candlesticks to show falling prices.

When reading candlestick charts the candlestick shapes viewed in relation to one another form various patterns according to the price spread and the proximity are opening to closing prices. Many of these patterns have been given names such as ‘Morning Star' and ‘Dark Cloud Cover' and once you become familiar with these patterns it is easy to pick them out on a chart and to identify trends in the market.

To supplement the information provided by charts a number of technical indicators are also used. These include trend indicators, strength indicators, volatility indicators and cycle indicators and all of these are used to anticipate movements in the market and market volume.

The most commonly used Forex technical indicators include:

Average Directional Movement (ADX). ADX is used to determine whether or not a market is entering an upward or downward trend and just how strong the trend is.

Moving Average Convergence/Divergence (MACD). MACD shows the momentum of a market and the relationship between two moving averages. When, for example, the MACD line crossings of the signal line it indicates a strong market.

Stochastic Oscillator. The stochastic oscillator indicates the strength or weakness of a market by comparing a closing price to a price range over a period of time. A high stochastic indicates a currency that is overbought while a low stochastic points to a currency which is oversold.

Relative Strength Indicator (RSI). RSI is a scale from 0 to 100 which indicates the highest and lowest prices over a given time. When prices rise above 70 the currency is considered to be overbought while a price below 30 would indicate a currency which is oversold.

Moving Average. Moving average is the average price for a given time when compared to other prices during similar time periods. For example, the closing prices over a 7 day time period would have a moving average equal to the sum of the 7 closing prices divided by 7.

Bollinger Bands. Bollinger bands are bands that contain the majority of a currency's price. Each band consists of three lines - the upper and lower lines indicate the price movement with the middle line showing the average price. In conditions of high volatility the gap between the upper and lower bands will widen. If a bar or candlestick touches one of the bands then it will indicate either an overbought or an oversold condition.

About the AuthorTo learn Forex trading online and to discover more about understanding forex futures charts please visit ForexOnlineTradingSystem.info

Forex Trading Strategy: Channel Breakout

2008-08-31T08:19:00.000-07:00

The Forex market, which is the largest exchange in the world, capitalizes upon certain trends to yield its traders profit. A popular Forex trading strategy used in profitable Forex trading is commonly referred to as a channel breakout.

The Forex market, which is the largest exchange in the world, capitalizes upon certain trends to yield its traders profit. A popular Forex trading strategy used in profitable Forex trading is commonly referred to as a channel breakout.

Channels in Forex Trading - Channels are lines that are created on a chart to show the range in which a currency has been trading over a certain amount of time. They are extremely easy to produce. By looking at the chart over a time period, you simply draw a line connecting the relative high point trading prices, and another line below it connecting the relative low point trading prices. What you've done is produced a visualization of the trading range that has been occurring over the time period in question, for example six months.

Channel Breakout - When the price of a currency rises above the top channel line, this is an upwards channel break. Conversely, if the price of currency falls below the bottom channel line, this is a down side channel break. Channel breakouts can and do occur on the upside and downside. Through proper Forex training in technical analysis, anyone can use this method to develop a successful currency trading strategy.

It is important to construct the channels properly, as not every crossing of the lines becomes a true breakout. If the channel lines are made improperly, you often see trading outside of this range only to come back inside. That's why it is very important before anyone starts Forex trading to complete a thorough Forex education

Managing Forex Channels Profitably - Once you get the knack of channels, you can start making significant profits. The important thing is to structure your trades with proper stops so that if you do get a false breakout signal, you have an acceptable loss or even perhaps a minimal gain. You'll find that if you're on the right side of a true channel breakout, any of the small losses that you've accumulated will be rapidly wiped out, and you will be sitting on a nice large profit.

Every serious Forex trading investor uses channel breakouts. If you are considering taking part in investing in currency markets, you should take the time to get some Forex training in this strategy and other technical analysis techniques, which will develop the currency strategies that produce successful results. Without putting time and effort on your part to fully understand the risks and rewards that any Forex trading strategy entails, you will not be able to achieve the results that you desire. Indeed, your profit is in your hands.

About the AuthorAndrew Daigle is the owner and author of many successful websites including ForexBoost, a free Forex educational site to learn Forex trading strategies and a website for learning profitable online home business opportunities

The CandleStick Warrior - New, Fun and Easy way to learn Candlestick Charting !!

2008-08-27T05:50:00.000-07:00

If you would like a thorough in depth, live and personal continuing education in Japanese candlestick patterns, and how to recognize them, and put them to use you've got to get Candlestick Warrior.
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If you're tired of wondering if the price action is showing a possible slowing of your stocks or other asset class, come join us.

If you're tired of guessing (wrongly) if your asset is showing a KNOWN REVERSAL PATTERN, come join us.

If you are looking for a fun, informal yet highly educational and informative foray into candlestick charting, it's essential that you join us now.

YOU WILL LEARN THE PREDICTIVE MAJOR CANDLESTICK REVERSAL CHART PATTERNS IN 30 DAYS OR LESS GUARANTEED!Click Here!

Forex Auto Pilot -Earn Money While You Are Asleep !!!

2008-08-27T05:25:00.000-07:00

Revealed: The Incredible Secrets
of How A Highly Ranked Industry Insider And A Mathematician Developed The Auto-Pilot System That Turbo-Charged Profits And Brought An Entire Industry Crashing To Its Knees…Click Here!

“Since Then I’ve Generated A $1,000,000 Cash Windfall In 12 Months Working From Home And I’m About To Reveal EXACTLY How You Too Can Replicate My Success With Step-By-Step Blueprints And A System So Powerful You’re Guaranteed To Make Money Or I’ll Refund Every Cent.”

Let’s first take a look at the reasons why working in an office, like a schmuck isn’t for you
You don’t want a boss.
You don’t want to dance to anybody else’s tune.
You don’t want to wake up to the sound of an alarm clock.
You don’t want to commute for hours.
You don’t want anything that requires a huge investment.
And you certainly don’t want anything that requires months, if not years of training.
Am I right? OK so let’s think about what you do want…
You do want to work your own hours.
You do want a business you can operate from your own home.
You do want a business that you can take pride in.
You do want to enjoy yourself.
You do want to earn enough money to take care of yourself and your family.
And last but certainly not least, you do want to start earning money immediately!

If you found yourself agreeing with any of the last 6 statements then I can safely say that you needn’t look any further for a home working opportunity. This is guaranteed to put you on the highway to success, not only showing you the road to take, but also adding some rocket fuel to your tank and launching you down a path of full bank accounts and worry free living. Just CLICK HERE to lock in your copy of Forex Auto Pilot including FREE bonuses.

Forex Trading Strategy - The Ultimate Momentum Indicator for Huge Profits

2008-08-27T05:12:00.000-07:00

Many traders in their forex trading strategy simply pick levels and buy or sell into them and hope they hold. This simply sees them lose, as they are hoping levels will hold and NOT acting on confirmation of price momentum to put the odds in their favor.

Here we are going to look at the ultimate momentum indicator that will help you time your trading signals with laser accuracy.

The momentum indicator we are referring to is the stochastic and it simply should be considered by anyone serious about making money in forex trading.

The logic

Of the stochastic is based on the assumption, that when a market is rising, it will tend to close near the highs of the session - and when a market falls, it tends to close near the lows.

Lets look at the calculation – although you don’t need to understand just as you don’t need to understand an internal combustion engine to drive a car – you can look at it visually which we will return to in a minute first:

The Calculation

The stochastic oscillator is plotted as two lines called %K, a fast line and %D, a slow line.

• %K line is more sensitive than %D

• %D line is a moving average of %K

• %D line gives the trading signals

It’s actually similar to the way a moving average is plotted.

Therefore consider %K as a fast moving average, and %D as a slow moving average.

The lines are plotted on a scale of 1 to 100 scale.

"Trigger" lines are normally drawn on stochastics charts at the 80% and 20% level – this indicates when markets are overbought, or oversold and a trading signal maybe generated.

Using Stochastics

The best way to get a feel for stochastics and how they can help your forex trading strategy is to look at them – you can see them free on many services and a good one is futuresource.com

The 80% value is normally used as an overbought signal, while the 20% is used as an oversold signal.

The signals are even more reliable if a forex trader waits until the %K, and %D lines turn upward, below 5% before buying - and in conversely, above 95% before selling.

The most reliable way to trade stochastics is to use the above as a warning sign and wait for the stochastic lines to cross with bullish or bearish divergence.

For example, buy when the %K line rises above the %D line, and sell when the %K line falls below the %D line.

Beware of short-term crossovers these can generate a false signal and cause losses.

The best crossover is generated when the %K line intersects, “after” the peak of the %D line.

Don’t worry if it sounds confusing it becomes much easier when you look at the set up on a chart service such as the one we referred to earlier and you will soon be getting the hang of them.

Why they are so valuable

Because they allow you to shift the odds in your favor instead of relying on hope when you trade into support or resistance you will shift the odds in your favor by knowing the strength of price momentum.

Stochastics are the ultimate timing tool for traders and allow you to enter your trading signals with the odds on your side. In any forex trading strategy you need to trade the odds and the stochastic is a powerful weapon that you can use for currency trading success.

Discover the stochastic indicator and you may be glad you did.

GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER

On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE forex education visit our website at http://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price

Forex Indicator Trading - Trading with RSI and Stochastic Indicators

2008-08-27T05:07:00.000-07:00

By Harold Hsu

Technical indicators are data points that try to predict how the market will move in the future. While they are not always 100% accurate, technical indicators have proven to be rather reliable signals. In this article, we will briefly discuss the RSI and Stochastic indicators.

Relative Strength Index (RSI)

Without going into too much technical detail, the Relative Strength Index (RSI) compares the recent upward and downward price movements in the market. This

comparison is expressed as a ratio and the result is normalized between a range from 0 to 100.

When we see that the RSI 'line' crosses above 70 points, the currency pair is considered to be 'over-bought'. This means that the buying pressure has been 'too strong' and that prices are likely to come down again soon.

Conversely, when the RSI 'line' crosses below 30 points, the currency pair is considered to be 'over-sold'. This means that the selling pressure has been 'too strong' and that prices are likely to go up again soon.

For best results, the RSI indicator should be used as a trade exit signal, NOT a trade entry signal.

Stochastic Oscillator

Similar to the RSI, the Stochastic Oscillator is mostly used to indicate 'over-bought' and 'over-sold' market situations. Also, it is scaled from 0 to 100, just like the RSI.

This indicator measures the ratio of closing prices with the recent market volatility.

These buying and selling conditions for this indicator are expressed by two lines: %K and %D. The divergence between these lines and the market price action can be a reliable trading signal.

Visit http://forexsystemprofits.com for more tips and techniques on profitable Forex trading. Get your f*r*e*e 26-page Forex trading guide while you're at it.
Article Source: http://EzineArticles.com/?expert=Harold_Hsu

For related technical analysis content, pls visit http://taacademy.blogspot.com for more information

BEST Forex Trading Strategy

2008-08-23T07:21:00.001-07:00

Best Forex Trading Strategy - PROOF

2008-08-23T07:16:00.000-07:00

Day Trading Forex Currency - How to Become A GreatTrader

2008-08-23T06:47:00.001-07:00

Your parents probably told you somewhere along the way, "Anything worth doing is worth doing well." In day trading Forex currency, it makes all the difference.

With day trading Forex currency, just being "a trader" doesn't cut it. Anyone can be a trader. All you need to do is open an account, deposit some money, then begin placing trades. Voila, you're a trader.

The problem is that the average trader is usually losing money or making very little for the time they put into it. The 90-95% failure rate in trading is no joke and these people are failing and losing their money. Six-figure incomes are definitely NOT being realized by the average trader.

Now you certainly didn't get into day trading Forex currency to lose your money, strain your relationships, add stress to your life, or grow more gray hair. Most likely you were intending for something quite different. Enjoying a respectable income stream, building a nice nest egg and having control of your time are probably more like it.

Trouble is encountered through a subtle distinction for the average trader. The focus is on making money with every trade and the secret hopes the each one will be a big winner that sets them for life, because the average trader is looking primarily at the leverage in day trading Forex currency. The 10% that are making money initially looked at day trading Forex currency and thought "Indeed! The potential is here with this for me to enjoy a very nice living, build wealth, have the life I want and the time freedom I seek. I am going to become great at this because I see that the possiblity of a six-figure income is very real here."

Average traders are usually chasing money, which is quite different from those making the six-figure income with becoming great traders as their focus. The 90% are focused on making money and the 10% focus on becoming great. As a result, they each become different people as time moves along.

An additional distinction is in how the whole activity of day trading Forex currency is approached. A business is any activity engaged for profit on a regular basis and this is the other realization. So when you started trading, you had opened your own business whether you realized it or not. Your business has been started in rather unique and highly competitive industry. By now you've surely heard the wisdom, "Treat your trading like a business." Because a business is a business, not just a hobby, it needs to be treated as such regardless of the industry. Trading is no different.

You've got nothing to fall back on and no prior experience to relate to for your trading business if you've never started and run your own business before. Trading is a unique business with different requirements and unique challenges, which you know if you have run your own business previously.

For the business to provide a respectable, reliable and consistent income stream for the owners, in addition to building wealth and providing financial freedom and security is the goal of owning any business including a trading business. Owning, managing and running any business involves quite a number of roles, each of which has its knowledge and skill requirements. A successful trading business entails much more than simply opening a trading account, getting a trading system and then following it.

The nice income and the freedom enjoyed by the 10% comes from the realization that you are in the business of day trading Forex currency and that you must choose to become a great trader as well as a smart business person. Average traders don't make those distinctions and subsequently lose money or have a lower hourly rate of pay lower than in their full time day jobs.

The purpose of this article is not to offend anyone or to hurt anyone's feelings. The distinctions are most often not made simply because the business of trading is so new to most traders that they just don't know to make them.

More than likely you have what it takes to be a great trader, so do you want to settle for average or realize your potential so that the potential of day trading Forex currency is realized in your life? If greatness as a trader is what you seek and you've got one hour a week, then the training available in the Trading P.I.T. Club at Inside Out Trading may be what you're looking for.

Right now go to:
http://insideouttrading.com/pit/great.html