What is Forex Scalping?

Forex scalping is a popular forex trading strategy where the trader makes several small trades in the course of a trading day.

 

Compare it to the game of baseball, where a team is said to play ‘short ball’ making hustles and stealing bases, doing many small plays instead of going for the home run. Forex scalping is like that. Scalping is a quick, adrenaline filled way to trade and not for the faint of heart. It does allow for some quick profits.

 

Though many scalpers will disagree, this method of trading has a higher risk-reward ratio than more conservative trading. To counter this, most traders use tight stop loss limits to prevent big losses. The benefits of scalping is quick profits and peace of mind when the day is over as there will be no outstanding trades. The drawback is the difficulty involved and the cost of scalping which can be high with a broker with high commission.

What Time Frame Is Used in Forex Scalping?

Scalpers need all the up to the second information they can get and therefor use very short time frames on their charts such as ticks, 1, 3 and 5 minutes. The purpose is to spot easy and quick entry and exit points. Scalpers thrive on high liquidity and do not look for long term patterns. This is why the short time frame is preferred.

How Much Is Invested In Each Trade?

Since scalpers deal in very small pip ranges, they need to increase the amount invested in each trade. Compare it like this: 150 pips x $2/pip = $300 profit (two hours to complete this transaction) or

5 pips x $60/pip = $300 profit (5 minutes to complete this transaction). As you can see, scalping is high risk – high reward. Combine a scalping strategy with high leverage and you have a potent combination for boom or bust.

What Are The Benefits of Forex Scalping?

Since scalpers are willing to take relatively bigger risks on each trade, they can also make more money. It happens much more often that the market moves 5 pips than 150 pips, which means scalpers can take home profits several times a day if done right. Scalpers usually go for profits anywhere between 2-15 pips, which combined with leverage can make for very healthy profits.

What Are The Negatives of Forex Scalping?

Scalping carries more risk than conservative trading as the amount invested pr. pip is greater. This means that it is crucial with proper stop loss management. As all traders know, that is easier said than done. Scalping is definitely not for the timid. Also, forex brokers do not particularly like scalping because it costs the money to execute a trade. Some brokers counter this with high commissions that make it difficult to be profitable.

By: Huey Davis

About Guest Author:

Performing a stock trading data trend analysis can be a time-consuming task. It’s well worth the amount of effort, but nonetheless it takes a lot of time. I’ve found a way to automate the process and I never realized how much time it would save.

I’ve created a video outlining how I used my trend analysis tools to open a trade. Within a few days I had a gain of $6,200. It also helped that I had a list of the absolute best stocks to buy.

“Work smarter, not harder.”

Save time by having your stocks analyzed for free. Go to http://www.learn-stock-options-trading.com/stock-chart-analysis.html for more details.

Travis W. has been an avid options trader for years. His website is designed as a free web-based options trading course that provides a way for beginners to understand the complex world of options trading.

Finance has taken on a whole new identity through online stock trading services. So even if your trade portfolio is nothing to brag about, investing in you and your family’s future cannot be taken for granted. As more companies join the ranks and offer online stock options, it’s no longer the case that you have to buy Fortune 500 company shares.

There are many diverse options available in the online stock trading industry. For those of you who don’t know the ins and outs of this intrepid, yet profitable game, 6StarReviews.com makes note of one stock service, Zecco, that makes your trade experience nearly effortless. Zecco designed their trading community to fit users of all financial backgrounds. Straightforward and easily accessible, users can find most any information they need without a hassle.

Stock trading giant E*TRADE offers its traders online seminars, in which they can take virtual classes on the finance world, learning key lessons and stock trading pointers. For those of you not accustomed to digital portfolios, this can prove to be a feature you cannot live without.

Of course, for the seasoned stock traders, there are more advanced stock trading services available for your needs. One great choice is Schwab, a leader in the financial industry for years. Schwab offers its traders unbeatable functions such as the StreetSmart online trading platform, interactive technical charts and other high-caliber trading tools. There is something for everyone in online stock trading services.

By: Kelly Liyakasa

About Guest Author:

Day Trading, Forex Day Trading, Online Day Trading is affiliated with Futures Trading Software.

Get the Information You Need to Evaluate Stock Trading Software

In today’s market, investors are wondering if they should even buy stocks and if they can make money. The answer to both is “yes.” Stock market trading is a wonderful opportunity now, with prices lower and volatility higher than in many years. Stock trading online has never been more popular.

 

Automated stock trading platforms, robotic stock trading programs, online day trading systems-there are many terms used to describe the stock trading systems that can help you to make a stock investment and to grow your money.

You can Review the criteria below and understand your own personal preferences by talking with other stock traders. Identify the facts you need to compare programs. You’ll need a good understanding of the automated trading tools’ features and costs before you make a decision.

Automated Stock Trading Software Benefits & Features

Many types of companies offer stock trading advice and stock trading strategies. They run the gamut from educational programs that aim to teach you how to trade, to a list of recommended stocks to buy and sell at certain triggers, to brokerage firm proprietary software, all the way to fully automated robotic software. Prices can vary from thousands of dollars to less than $50 a month for some auto trading software. With such a variety, how do you choose? This article will guide you through the features and benefits of the programs that are available for online stock trading. We will not discuss trading software for options or Forex trading. Many of the programs are geared towards “day traders,” who technically open long positions (buy) or short positions (sell short) and close these positions the same day. Not everyone who uses these programs closes out their positions by the end of the trading day–sometimes they hold their positions for days, weeks or months. We’ll call this “active trading.” Sometimes this is also referred to as “swing trading.”

The essential features of a stock trading program include a data feed for stock quotes and indicators, stock charts or charting capability of major indicators, current balance and positions and an order entry system. The order entry system should allow stop (loss) orders, stop limit orders and trailing stops. A trailing stop limit is similar to the stop (loss), except its loss will be measured from the stocks highest point achieved. The preferred method would be to keep the trigger prices in stealth mode, not viewable by the market makers, rather than as actual orders. Most automated trading software should include a watch list of the stocks to potentially trade based on the parameters the stock trader has entered.

Exchange Traded Funds (ETF’s) can be part of an efficient trading strategy. These are mutual funds that are traded intraday on the stock exchanges, unlike traditional mutual funds that are a basket of securities priced at the close of the market. Online stock trading systems should also include trading capabilities for ETF’s.

Other features to look for include safety measures that stock traders may take, such as establishing a profit goal–the minimum price increase a trader would expect a stock to gain before closing their position. Also highly desirable is a form of profit protection for your investments, which is the reduced profit goal. After the stock reaches its profit goal and continues to rise, the stock trading software should wait and let the profit increase. If the stock price decreases or pulls back, the online trading program should close the position and lock the profit. This pullback value should not have any effect before the profit goal is reached and is intended to improve stock performance. More sophisticated auto trading programs will also offer the percentage gain from stock trader’s entry price, and the trader can also specify a minimum amount in case the percentage gained is too low.

Check the Features and Ask Questions

Number of Technical Indicators – There are literally hundreds of indicators that stock traders can use to determine which stocks to buy and sell and when. The most robust programs will offer hundreds of indicators for technical analysis, such as Bollinger Bands, and some will even include indicators for Candlestick Chart formations. Robotic programs use these indicators to set conditions under which online investing will occur.

Complexity – Automated stock trading programs vary greatly in ease of use. Some online stock trading systems do require actual programming expertise. Others are simply point and click. Check out the online demo to see that it fits your level of comfort before making a commitment. Talk to others who are currently using the auto trading websites and check out their online communities for more comments.

Number of Long and Short Strategies Per Account – Due to the size of the online trading platform, there may be a limit to the number of strategies that you can have loaded on each account. If you want to run, say two long trading strategies, then you may need two accounts. Also confirm if you have enough memory on your computer for two or more accounts. Experienced active traders may run two or more live long and short strategies, while having additional accounts for strategies that they are testing in a simulator mode.

Find Out How Advanced Your Software Can Be

Recommended Additional Features – The best automated stock trading software will include additional features that active traders will find invaluable once they have begun automated trading.

Additional strategy and order entry features include the ability to add to a position as a stock goes up, or as the stock declines, as well as a minimum purchase interval that the stock price should drop before it begins purchasing additional shares. A maximum bid/ask range will also be helpful, as the size of the spread can directly impact a swing trader’s ability to make profitable trades.

If there are hundreds of indicators, as is the case with robotic traders, see if the definitions of the indicators are readily available. The definition or formula for indicators may vary from one electronic trading platform to another, so be sure you understand them first.

Recommend you have a program that displays current Profit and Loss (P&L) on your open positions and the status of the rules on your watch list. For example, if a stock on the watch list hasn’t traded, is there a feature where the trader can pull up the rules and indicators to see which one(s) is preventing the trade?

Some automated stock trading programs visually display the percentage of symbols up and down in each sector from the specified time frame to the current time so you can see how the market is turning. Does the platform include the ability to block certain symbols from trading? If you’re running a long trading strategy, you won’t want to be buying ETF’s that short the market.

Day traders will want automated trading software that tracks and displays the number of day trades remaining. Day trading is regulated by the SEC, so it’s important to understand if you will be day trading first.

Orders in Stealth Mode – A standard feature of many trading software programs is the ability to enter limit, stop and stop limit orders. While it is important to have an exit strategy from your positions, telegraphing it to the institutional traders in the form of publicly viewed limits is not. It’s a little like poker–whoever can see all the hands has the advantage. Instead, newer programs allow the user to enter these price points in the auto trader system, but trigger a market order when the conditions are met. This is one advantage of a truly robotic stock trading program.

Automatically Executes Your Trading Strategy Even While You’re Away From Your Computer – Very few stock market trading systems can actually do this. For those that do, it’s done based on the trader selecting technical indicators, comparison operators and numerical inputs that will activate opening, adding to, or closing stock positions. Essentially, it’s a rules driven software system. The trader can select from hundreds of historical indicators representing the stocks’ previous conditions. The indicators should be updated daily using the latest data. Programs that can trade automatically are the cream of the online investing software crop. They take the emotion out of investing. Long time traders report that the simplest strategies, when left to run on their own for long periods perform best. The program should also have a manual override so the stock trader can manually place a trade as well. Specifically ask if the system has this capability. Many market themselves as “automated trading” but are not truly automated.

Ability to Simulate Strategies In Real Time Before Running Live – Most traders would agree that they’d like to “test drive” a system before using it. Some programs allow this through “back-testing,” in which the program uses past data to execute the trades and show you what they would have been. This is not always accurate, as there is much data needed to perform a thorough back-test and it’s nearly impossible to replicate all the circumstances with just the historical data. In addition, how the system performed in a market last month or last year does not indicate how it will perform in the here and now.

There are a few systems that allow the stock trader to simulate strategies, but this is done mostly with paper tickets, rather than through the software package. The best stock trading software will let you practice stock trading using a live real-time data feed during market hours. This is the preferred method, as it gives traders a very realistic view of how their trading strategy is performing and the ability to feel the highs and lows of daily trading without investing real money. If you can simulate trades, you won’t need to open an actual brokerage account until you go “live” with real money. Ask if there is a limit on how long you can run in the simulation mode.

Shows You How to Create A Stock Trading Strategy – There should be a step by step walk through to show novice traders how to create a trading strategy. Are there off-the-shelf strategies that are available for your use? Are there any fees involved or are they offered for free? Can you modify the off the shelf strategies? Note that firms should not be guaranteeing you a certain return. The best firms will have long and short stock trading strategies available at no charge and will allow the stock trader to create their own. Some firms will even allow you to copy strategies from a “friends” list. One size does not fit all. If the company doesn’t tell you the details of the strategy or why they selected or recommend a certain stock, then it’s not advisable to use it. You may overpaying for “proprietary” services and may be able to obtain free stock market tips and recommendations online that will perform comparably.

Tech Support and Customer Service – The best automated stock trading software firms have an extremely high “up-time” and are very rarely out of service. Check on the firm’s record–how often have they had outages? The software should be easy to install and should work with a variety of operating systems (Windows XP, Windows Vista, etc.). If you have questions, is there a knowledgeable and helpful staff to provide service? How quickly do they respond, if by email?

Commissions – Trading commissions can eat into your profits if you are not careful about choosing a plan that fits your needs. Commissions can vary greatly from broker to broker, depending on the number of shares traded, whether the shares are in round lots of 100, price of the shares traded and the number of trades you place each month. Stock traders may even want to have more than one account if they have a trading strategy that normally trades 100 shares lots and another that trades 1000 share lots. It pays to read the fine print.

Number of Broker Choices – If you have a proprietary brokerage software product, then you’ll only be able to trade through that firm. The best online trading includes the lowest commissions for the typical trades for each strategy that you use. There are other programs whose software has been integrated into the order placing functionality at a variety of brokerage firms. Commissions will be one consideration in choosing a firm. Another is the margin rates. If you choose to have a margin account and borrow against the value of your securities to open more positions, you will be charged margin interest. Rates will vary by firm. Typically, firms with the lowest commissions won’t pay you interest or offer a money market fund for your uninvested cash. This is how they keep their costs down. If you anticipate having extra cash that you won’t use for trading, you may want to keep it in another account where it can earn more. You should also check if there is a minimum to open an account or a minimum number of trades required.

Check the Costs and Software Support

Initial Software Fee and Monthly Fees – Ask is there is an initial fee to buy the software package. Is it thousands of dollars? If so, find out what you are really getting. Much of what you can obtain from some of these programs can be found in inexpensive books or on the Internet for free. Is there also a monthly fee? If so, what does it cover? In reviewing online trading services, more expensive software is not necessarily better. Some active investing services are less expensive because they have more subscribers.

Data Feed Fee – Does the program include real time data feeds for stock quotes and indicators? Is there an extra fee for this or is it included in the basic monthly fee? This is the biggest component cost in developing automated stock trading programs. Or, is the data delayed by 20 minutes? Is it only the end of day data? If so, even in a simulation, old data is not good data. Many brokerage firms offer free Level II quotes to qualified active traders who trade a specified number of trades each month.

Stock Charts Fee – How will you review the major indicators that you’re using to make trading decisions? Some programs include stock charts with their fee, others charge a separate fee for it. Depending on the platform you choose, you may or may not need a charting package. Find out how much is it and how much you can customize the stock charts to track your favorite indicators.

Ongoing Support Fee – Ask is there are any other fees. Hidden fees will definitely each into a stock trader’s profits. If you’re not in the market to make money, then you shouldn’t be in the market.

Long Term Contract – Is the fee you’re paying upfront for a year’s contract? If so, is it automatically renewed every year?

Training Fee – Find out if there is a separate training fee. For programs that market themselves as financial educators, there will be a fee, sometimes hundreds or thousands of dollars, as this is how they make their money. The best automated stock trading software programs provide free training.

Training Formats – Is the training in the form of a live seminar? Webinar? Are there extra materials such as DVD’s that you must buy to find out all the information advertised? Or, is live training available in the company’s office?

Minimum to Invest – Brokerage firms have their own minimums but there are also account minimum balances required by the Securities and Exchange Commission (SEC) for what it calls “pattern day traders.” A day trade occurs when a trader opens and closes the same position in a margin account on the same day. A pattern day trader is any person who executes 4 or more day trades within 5 business days in a margin account, provided the number of day trades is more than 6% of the total trades in the account during that period. All pattern day traders must maintain a minimum of $25,000 in equity at all times.

System Requirements – The more robust the trading system, the greater the memory requirements. Check this before you sign up or purchase a new computer. If you sign up for more than one account, will your machine have enough RAM to run both or will you need to purchase an extra computer or more memory? If you have a Mac, ask if the software works on Mac, as not all do. You may want to have one computer dedicated only to your automated stock trading programs and not run other word processing or spreadsheet programs.

Reports – The best automated stock trading software will include a reports function, that allows the stock trader to pull up trades by time frame, security, long vs short, open vs. closed and P&L. For truly active traders, this information is an easy way to track trading for tax purposes.

Trading Strategy Statistics- In addition to Reports, another great feature is strategy statistics. They will tell the serious stock trader the number of trades executed and break them down by profitable vs. unprofitable over various intervals. Reviewing the strategy accuracy increases the odds that a stock trader will be profitable.

Online Trading Community – Trading platform developers who are truly proud of their work welcome comments and questions from users. Take some time to read their stock trading forum and see what other stock traders are saying. There are even a few automated stock trading programs that will take requests for additional indicators from their users.

Take the Right Steps as You Choose Stock Trading Software

Be wary of those who tell you that you must follow their stock trading system using only their tools. This is about you having control over your financial future. There are as many successful stock trading strategies as there are active traders. Experiment, talk to others and do research. You will find what works best for you.

Use caution when signing up for anything long-term, even if a 30-day free trial is offered. Some firms may request a large down payment or full payment in advance and pressure you on the spot, promising a discount if you sign up immediately. Some consumers have reported difficulty in obtaining refunds even when they have followed the procedures exactly.

Happy trading!

? Copyright – Regina Guinn. All Rights Reserved Worldwide.

By: Regina Guinn

About Guest Author:

Online Stock Trading – hassle free option…

In the modern and hectic lifestyle, everybody wants to make money to maintain a sound balance between his or her personals as well as professional lifestyle.

 

Sponsors Listings:

 

Now on Internet, everything has become easier than ever before. It’s a dynamic medium where you can gather information on diverse topics of your concern – from trading stock options to stockbrokers and Internet stock trading.

Trading stock options are one of the easiest and quickest ways of making money online. Stock market, being an indicator of the economy of a nation, a rising economy leads to prosperity. In the earlier days, stockbrokers on behalf of the people who were involved in the stock exchange did trading manually.

However, with the boom of the IT sector, Internet is easily available everywhere. As a result, stock market trading can easily be done through online brokers.

Internet stock trading keeps you abreast of the latest and updated stock market development with just a few clicks. All the information regarding stock market quotes, online brokers, stock exchange, etc., can be found on the Internet. All you need is a PC, an Internet connection and an online account to register yourself.

The biggest advantage of online stock trading is that it’s hassle free and online brokers charge a very less commission. However, there are some important things that should be kept in mind while going for online investment: online brokers, stock market quotes, trading stock options, etc. On the other hand, before buying stocks, you should have a very good idea about the company profile, reputation and market trust. Being an investor, you should check the quality of expertise and other services offered by the company. Moreover, you have to examine the payment mode, commission rate, etc.

There are several advantages of online investment:

Online stock trading is easy and hassle free. Simply click the mouse and invest. Online brokers charge a very minimal amount as their commission and take care of all your financial data. As a trader, you can also take financial suggestions from expert brokers. Opening a trading account is a very easy process. Once you open the account, you can see latest updates on stocks online.

However, as an investor, you should have a sound knowledge of the stocks, you want to invest in. For example, if you were investing in stock market, you would open a particular Website. It is of utmost importance that the site you are opening an account with must be secured, personal, and should have easy browsing options for easy access to financial information. Before choosing a site, you should compare with other sites, options are given and then you can decide which one would suffice your needs.

For quick return, online stock trading is one of the best options you can look for. Always keep yourself updated with the latest news, information regarding stocks, stock market and invest accordingly. An intelligent investment is one where you can expect less risk and maximum return.

By: Micheal James

About Guest Author:

Stock trading data can be incredibly confusing. Stock Trading Courses (good ones), are being sought by many people who are “dipping their toes” into stock trading.

 

This is an excellent idea because you can “lose your shirt” or lose opportunities for good stock investments if you are not properly trained in the intricacies of trading stocks.

There are many types of automated stock trading software programs available to help people be more profitable in investing. There are two types we will discuss in this post.

 

One type of stock trading software analyzes stock trading data and charts. Another type of automated trading software is described as a stock trading robot and works without a person having to be hands on.

 

Automated Stock Trading Data & Charts Analysis Software

 

This type of automated trading software can be simple or very complex giving you buy and sell signals based on the stock trading data it is analyzing. This type of software is usually meant to be used by those who have a good background in stock investing and are comfortable with the data the program is analyzing. It may not be a good type of software for the stock market beginner who is inexperienced in stock data analysis.

 

Automated Stock Trading Robots Software

 

There are literally dozens of automated stock trading “robots” programs available online. They do everything for the trader from opening the account and buying and selling based on how the software has been setup.

Although a popular automated stock trading software like Stock Assault 2.0 A.I. Software or FAP Turbo Forex Trading Robot, can easily make an experienced trader more profit, it may be a good idea for a new stock trader to be very careful using these software trading programs.

An experienced trader is aware of the current market conditions at all times. He is also aware of how the particular stock trading robot’s system is setup and knows when to adjust it when the market changes and become adverse for how the robot handles it’s duties.

An inexperienced trader does not have the background or knowledge yet to know when the market changes, therefore he may miss these indications and start losing money — fast.

That is why many automated stock trading robot software programs seem to make money at first, yet can lose all the money gained very quickly.