ONLINE TRADING Tips, Trick and Guide

Online Trading Guide - Everything You Need to Know

noreply@blogger.com (Satria Sudeki) — Wed, 21 Oct 2009 21:55:00 +0000

Online trading offers great benefits to financial investors. The buying and selling processes are very convenient and time-saving. The development of online tools has created an enormous possibility for simplified and effortless business trading online. Transactions are becoming effortlessly available at the very doorstep of an online trader. With an online demat account, all dealings are made possible without the help of any stock broker or intermediary. Updates on derivatives, trading of stocks, currencies and other relevant information have become available with just the click of the mouse.

To start up an online trading business, one should first create an account. Online trading guides always suggest novice traders to first get hold of accounts from reliable and official trading portals. Such portals would then require the trader some the authorization contract on doing trading. Upon accomplishing this contract, certain conditions would be required from the prospective trader. These conditions include sets of rules and propositions that should be agreed upon by both the trading portal and the trader. After all the formalities, the person is then allowed to start trading.

Online trading portals have servers that track relevant trading exchanges. Such tracking makes trading guides updated even to the specific timing of the exchange. This then enables the user to easily gather information regarding market movements. Business then becomes easier to deal. Simultaneous information gets handier for reference of the traders.

More so, the person gets updated with numerous facets of the trading business. Minute by minute updates on the changes of the sectors also adds to an advantage. Thus, in-depth analysis of specific formats and necessary techniques by trade experts becomes more efficient; wherein crucial decisions become less risky for various transactions. The trading process then becomes more smooth and profitable.

Confirmation emails of all transactions and deals are often sent in real time. Such information is sent round the clock to ensure that updates reach the trader just on time for critical changes or decision making.

There are various services that trading guides provide. Most of them include assistance in derivatives and equity trading, stock trading, mutual fund trading, loan schemes, portfolio management, transactions for commodities and insurance schemes. These are pertinent services in the trading that helps investors be at pace in the business. Trading plans and designs provided are also tailored according to the needs, preferences, and even lifestyle of the online trader.

With a dependable online trading guide, one is never lost in his online trading venture. Profitability of the business is readily realized as the resources show concrete possibilities of financial gain. Needless to say, in the online trading business, what an investor would know depends on his or her aid. The guide should always be like an open book that gets updated every time changes occur. It should be like a trading portal that offers more than just a bank of resources for tools and online information. The guide should continue to keep the business' progress as changes happen.

By Jeff C Daniels

Brokers and Online Trading: What Does A Broker Do?

noreply@blogger.com (Satria Sudeki) — Sat, 10 Oct 2009 17:58:00 +0000

Forex broking is invariably an online business in the same manner as trading is much unlike the very early years. Different countries have norms that require forex brokers to register with some governmental agency to begin their broking business upon meeting certain educational and business qualification.

In the United States of America a forex trader must be registered with the Commodity Trading Commission as a Futures Commission Merchant. Futures Commission Merchant, FCM, can be an organization or an individual that accepts and handles futures orders on behalf of clients.

There are over 5000 forex broking institutions which include banks, financial institutions and certain other broking houses which all provide internet based trading facility. The forex brokers do not operate on the commission basis but on what is known as the spread in the community parlance. Spread means the difference amount between the buying and selling price of any currency.

A forex broker, like a stock broker advises the clients on different strategies of trading in foreign currencies along side giving out tips on the hot currencies based on technical analyses and fundamental researches aimed at maximizing the clients’ trading performances. The more seasoned and reputable forex broking houses offer to manage small investors’ trades to reduce exposure to risks with their extensive knowledge and years of experience, of course for an additional fee.

Usually forex brokers facilitate a practice account for no upfront fee payment so that a new trader can gain insights of the market and the features of such trading softwares. Retail investors may, in order that they evaluate different supports and software features, try out practice accounts with a few brokers before they open a final trading account.

Most of the forex broking houses, including the individual brokers, provide what is known as leveraged account facility. The leveraged account means if you paid a deposit amount of, say, US$100 you will get to trade upto an exposure of US$100,000. You may also try out a mini-account which lets you to open and operate forex trading for as low as US$100.

Forex brokers are classified as
1. Market Operators -Large banks, minimum lot size is $1,000,000
2. Small Brokers - Cater mainly to individual traders and settle deals with market makers.
3. Market Makers - Let small brokers and individuals trade with thereabouts of $50,000
4. Kitchens - Scrupulous operators who thrive on the belief that most of the clients lose money and that the revenue of kitchen is the clients’ losses.

Keep in mind, choosing forex brokers is to pay highest importance to your needs than theirs.

By: Jason Uvios

Online Trading - Day Trading Rules

noreply@blogger.com (Satria Sudeki) — Tue, 06 Oct 2009 13:05:00 +0000

So you are performing online trading and trade stocks and/or options and call yourself a day trader. Do you know the requirements of day trading? In our user's group, many times this question comes up and what happens if I accidentally (or on purpose) violate one of these rules? There are several variations of actions that can occur that may trigger day trading and I will try to answer most of them. As each situation is different, I will list the most common.

What Is Day Trading?

In this article we are only discussing day trading as it pertains to stocks and options. Commodities and Forex do not have the same day trading rules. I do not know about other trading disciplines.

If you buy and sell a stock or option on the same day, that is day trading. For instance, if you buy 1000 shares of stock ABC (fictitious symbol) at 9:30 am and sell the 1000 shares of stock at 12:15 pm, you have just entered into a day trade.

What Is a Pattern Day Trader?

A pattern day trader is defined in Exchange Rule 431 (Margin Requirement) as any customer who executes 4 or more same day trades within any 5 successive business days and your day trading activities are greater than 6 percent of your total trading activity for that same 5 day period (from FINRA web site).

What Are The Rules?

1. Account over $25k. -- To trade and not encounter any problems the equity in your trading account must be maintained over $25,000.

2. Buying/Selling same day -- For accounts under $25k, if you buy and sell the same stock in the same day, any proceeds from that stock's sale cannot be used in another trade on that same day. (May depend on brokerage account. My brokerage allows it but warns you about it.))

3. 3 times in a week -- You are allowed only 3 trades within 1 week (5 trading days). The 4th day trade may subject you to a 90 day suspension of all day trading activities.

What Are The Penalties?

1. You may get a 90-day suspension of all day trading activities.

2. Your account can be suspended for 90 days and no trading will be allowed in that account.

How to Avoid Problems?

1. Maintain a minimum of $25,000 equity in your trading account.

2. For accounts under $25,000 do NOT buy and sell a position in the same day, hold your position overnight.

3. If you buy and sell the same stock/option in the same day, do not enter into a new trade where the monies from the sale of the stock just sold will be used in the purchase of the new position.

4. If you have purchased a position from monies from a prior same day sell, it is best to hold that position overnight.

5. Do not perform a day trade activity more than 3 times a week.

I have attempted to outline the day trading rules as I have encountered them over my years of trading. You can get much more detailed information by searching the internet for day trading and pattern day trader. A good source is Wikipedia.

I have traded several years in accounts under $25k and have never had a 90-day suspension rule applied, but have had several warnings about a trade that may trigger the 90-suspension rule. When this happens I just do not perform the trade and will wait till the next day. Happy trading..

By Chuck Ainsworth

Forex Trading Strategy - Why You Cant Predict Currency Prices!

noreply@blogger.com (Satria Sudeki) — Wed, 30 Sep 2009 10:08:00 +0000

A fatal mistake made by many novice Forex traders is they think they need to predict where prices will go to win in there Forex trading strategy. You don’t have to predict to win and if you try predicting you will lose – let’s examine why in more detail.

If you are predicting the future you are simply hoping or guessing – know one knows what will happen.

Let’s look at a common example in currency trading.

A trader sees a support level and wants to buy a dip into support so he waits for the price to dip to the level and executes his trading signal.

What he is doing is doing what many currency traders do - buying a dip but he is simply hoping the level will hold.

The professional forex trader knows that predicting is a waste of time and money and acts on confirmation only.

Use Momentum To CONFIRM

Rather than buying into a support level and hoping it holds they wait for proof that it has held by watching momentum indicators – when the prices turn up above support they enter.

They are not predicting they are trading the reality of price change and this is what you must do to if you want to win with your forex trading strategy.

Great momentum indicators to put in your Forex trading strategy are: The Relative Strength Index and the Stochastic. If you don’t know how they work look them up.

Scientific Theories

A common myth in currency trading is that you can predict the future. Step forward all the scientific theories that predict such as WD Gann and Elliot wave.

They don’t work and the reason is pretty obvious – if prices could be predicted we would all know the price in advance and there would be no market. It is the uncertainty and different opinions that make a market.

When you are trading currency markets you can’t predict as although human nature is constant it is also un predictable and this makes trading an odds game.

If you are trading the odds then you need to act on the reality of confirmation NOT Hope or guess.

So if you have been simply buying dips to support and not getting proof that it will hold before trading look up how momentum indicators work now!

By: Monica Hendrix

Forex Trading - A Simple 4 Point Way To Making Big Profits

noreply@blogger.com (Satria Sudeki) — Sun, 27 Sep 2009 13:47:00 +0000

I read a lot about how difficult forex trading is, but making money from Forex trading is essentially simple if you keep in mind the following 4 points.

I have tried to illustrate this live and showed 3 trading opportunities and all made great profits and had low risk.

Let’s look at this simple way to make profits more closely:

1. You Are responsible

If you think you can buy an e-book and make yourself rich by paying $100 think again.

Most of the advice sold on the net is not worth the paper it’s written on. If you want to buy a system keep in mind the following:

1. Make sure the vendor trades it and has made real money and the track record is NOT just a simulation.

2. If you do buy a system make sure you know how and why the logic works:

THIS IS CRITICAL!

If you don’t know why it works you will not have the discipline to follow it and discipline is essential when trading.

If you don’t have discipline to apply it you don’t have a method in the first place.

2. A simple method

If you follow a system or build your own keep it simple.

Simple systems work best and are far better than complicated ones.

Why?

Because they are less likely to break in the face of ever changing brutal market conditions.

How simple?

We use support resistance and just 3 indicators:

Stochastics, Bollinger bands and RSI.

The best methodology to use is to utilize breakouts and sing trade within the trend.

Note: Never day trade this is a great way to lose your money quickly as you have no valid data to work with.

Finally, if you use a system like the above - always trade on confirmation from your charts to get into your position so price momentum is on your side:

Don’t guess or try and predict!

This is a mistake made by many novice traders.

3. Money management

Trading using critical support and resistance means that stops are easy to place and risk can be kept low.
4. Targets

Trade with a target where you want to take profit.

Resist the temptation to trail stops to quickly – that will simply see you knocked out the trade by volatility.

Once you have reached you target you can liquidate, or trail your stop then but not before.

Don’t make money management complicated or try and lock in profits to quickly or have stops to close this is a major reason traders lose.

This sounds to simple!

Yes it is simple - but it works.

Many traders think the more effort they put in the more they will get out of trading, but there is no correlation between the effort you make and profits you achieve.

Work smart not hard.

Trading is essentially simple and relies on a logical robust method you understand.

You will then have the confidence to apply it with discipline.

Many people try and beat the market or think they can win all the time and buy bottoms and sell tops – You cant!

The aim of forex trading is simply to make above average profits and if you keep it simple you will.

If you try and be to clever, or get to complicated in your approach you will lose.

By: sacha Tarkovsky

Currency Trading Systems – Essential Tips For Choosing One

noreply@blogger.com (Satria Sudeki) — Mon, 31 Aug 2009 12:47:00 +0000

Using a currency trading system to make profits from online forex trading is an option more traders than ever are considering.

Cheaper and more powerful computers and software, combined with the rise of the Internet have made online currency trading systems within reach of all traders.

The theory is simply buy a system, follow signals, sit back and start making regular profits.

The vast majority of systems you can buy are simply not worth paying for - and they’ll actually ensure that you lose money.

Taking some time to choose carefully, is essential to get one of the minority that can and do make big consistent profits.

So why do systems lose lets look at the two main reasons.

1. Curve Fitting Data

Whenever you see a hypothetical track record, you need to see if it has been curve fitted or optimized.

These systems always give extraordinary performance in back testing - because the rules and parameters have been tweaked to fit the data.

This was once described by a trader as shooting at a barn door, and then drawing circles around every hole later, so that each shot scored was a bull’s-eye!

We can all make a track record look good if we know the past data and you never see a hypothetical track record that does not make profits.

However hypothetical track records rarely show the same results in real time.
Clues to an optimized system are those that use, different rules and parameters for trading different markets or different contracts.

If the system is based on sound logic, then it should work in any market, without the need for optimization or curve fitting to fit the data.

1. Black-Box Systems

Most systems that are optimized fall into this category.

The definition of a black box system is one where the logic is not revealed to the buyer.

Even if a forex system is based on sound logic, the trader must have confidence in it to trade it with discipline.

Of course for this, he needs to understand exactly how and why it works.

If you don’t know the logic of the system, you won’t have the confidence and discipline to continue to follow it, when it suffers a period of losses.

Discipline is an essential ingredient of currency trading success.

Here are some tips to help you separate out the systems that are likely to lose, from the ones that could make you big profits:

1. The Methodology is Revealed
You can only have confidence in a Forex trading system if you know how it works.

As you will have the confidence and discipline to follow it until it makes a profit and be able to taking losing periods and remain disciplined.

Discipline is essential to success and comes from confidence

2. Track Record
Has the system made money in the real time and is there a track record for you to look at?

This is a question many traders never bother to ask.

They simply accept a hypothetical track record, which as we have seen is fraught with danger.

A real time track record, won’t guarantee Forex profits, but it will at least show the system is based on sound logic.

If there’s a hypothetical track record and you want to buy the system, make sure it’s audited in real time with all transaction costs deducted.

Many vendors do this to test their systems.

While the track record is still hypothetical, the fact it’s traded in real time, gives you confidence in its ability to perform.

3. Simple Systems Are Best

Simple systems tend to work best - as they tend to be more robust in the real world of trading, with fewer elements to break than complicated ones.

Simple systems tend be easy to understand, easy to apply, and generally more profitable and most of the top systems contrary to popular belief are actually simple.

4. The Vendor
You should research how much support the vendor offers - and a bit about their background – like are they a trader?

Many systems are simply sold by marketing organizations that use hypothetical track records and enticing sales copy – don’t fall for this ploy.

Look for a money back guarantee – this will show the vendor is putting his money where is mouth is and has confidence.

If you do your homework, it could help you find a forex trading system that will help you build long term capital gains and is time well spent.

Currency Trading Tips & Strategies

noreply@blogger.com (Satria Sudeki) — Tue, 25 Aug 2009 12:55:00 +0000

The use of currency trading tips has been a very useful guide in the comprehension and application of strategies and decisions in the currency business environment. The currency trading tips has based its information on meticulous research and assessment of the economic factors surrounding the market. This is very important considering the fact that failure and success in the currency trading market is separated by a very think line.

This means that one wrong move could easily lead to failure due to the level of competition and the very fast paced and complex environment. That is why the currency trading tips carefully covers all the necessary topics that will guide traders and marketers to find the best solutions in the easiest way and most risk free way possible. But the main principle used by the forex trading tips and guide is that money is a very liquid investment.

This means that the value of money is unstable and could go up and down depending on the economical condition of the country which is certainly influenced by the political and social aspects within their territory. Many companies who establish their own currency trading tips assesses and observes the country and currency by considering all the variables involved. Once there has been a crisis, it would surely lead to economic deterioration and ultimately, less value for the money. Many currency traders have adopted this method of consideration which has tremendously helped them to understand and comprehend the situation. The forex trading tips has thought people that knowledge and information is the best weapon in the forex trading market.

By Timothy Stevens

Top 5 Online Stock Trading Tips

noreply@blogger.com (Satria Sudeki) — Mon, 24 Aug 2009 12:11:00 +0000

These online stock trading tips are used by the most successful traders in the world. Successful traders understand that there are a set of basic rules which must be followed day in and day out in order to be a profitable trader. Here are the things you must do.

You must have sufficient working capital. If you don't have enough working capital you won't have the staying power to weather the many market fluctuations. With market volatility comes equity swings. You want to survive these periods and have the capital available to take advantage of trading opportunities in the future.

You must have a plan. Without a trading plan you are flying blind and banking on hope. Hoping that you make money in the stock market is not the same as having and executing a plan to make money in the stock market. Successful businesses have business plans and your stock trading business should be no exception.

Stay focused and disciplined. Stock trading requires focus. Everywhere you look and listen there's news and opinions about where the market is going and what the economy is going to do next. You will have to be disciplined to follow your trading plan. Work to weed out unnecessary distractions and so that you can stay on track.

Learn to control your risk. Although risk control should be an integral part of any trading plan or system it's importance cannot be stressed enough. Poor risk control is the number one reason inexperienced traders fail.

No list of online stock trading tips would be complete without including the following: You must have a profitable trading system or method. I know it sound completely elementary, but you would be surprised to know the number of traders who randomly place a trade and hope for the best.

By Reginald T. Hobbss

FOREX Tfrading Systems - How to Get One for Big Long Term Profits

noreply@blogger.com (Satria Sudeki) — Sun, 23 Aug 2009 16:05:00 +0000

Buying a FOREX trading system can be a way of making big consistent profits and being automatic means that you can do so with the minimum of effort.

You can find good FOREX trading systems from vendors, but be warned over 95% of them are junk.

In this article we will look at how to find one with the potential for making capital gains.

1. Don’t Buy a FOREX day trading system!

Most novice traders do this and lose.

Day trading simply does not work – All short term volatility is random.

If you are trading FX, ignore the promises of profits, the reality is your account will get wiped out – which leads me onto my next point.

2. Always ask for a real time track record

Most FOREX Trading systems don’t have real time track records.

You do however get a hypothetical track record.

For those of you who don’t know what this is – it’s a track record designed in hindsight, knowing the closing prices already.

No wonder they all make a profit!

Ask yourself this question:

Why would you give money to someone who does not trade their own system?

If they don’t have the courage to trade it why should you?

Look for a track record of at least two years, ask for audited proof of the systems performance and this should be net of all fees.

3. Make sure you understand the systems logic

Never buy a black box system where the logic is not revealed.

The reason for this is that if you don’t know the logic the system is based on you probably won’t have the discipline to stick with it when it runs into a period of losses which all systems will do.

From understanding the logic comes confidence and from confidence comes discipline.

4. Drawdowns

Always look at the worst peak to valley drawdown and time to recovery and then ask yourself the question:

Can I handle that without throwing in the towel?

Many systems have great gains over the long term but can draw down by 50% or more – if you are not happy taking this risk you will probably not stay with the system.

Always assume your worst drawdown is ahead of you.

5. Guarantees and support

I like to know who I am dealing with find out something about their past, their views and what support they offer and think this is something all FX traders should do.

I also like a money back guarantee as well so if this is part of the package all the better.

Reputable vendors if you ask serious questions will normally be more than happy to answer your questions and queries so do so and don’t deal with a vendor until you feel comfortable with them.

Most FOREX trading systems sold are:

Junk and not worth the cash, the best way to weed them out is to do the track record test – get a real one or don’t buy.

That may not guarantee you currency trading success, but if it is over a long period of time and has produced profits you can at least assume the logic is soundly based.

Picking a FOREX system to trade is really all about using common sense, cutting through the advertising copy and seeing the facts.

If you spend some time shopping around, you can find one of the minority of systems that not only can deliver you value for money, but also give you big profit potential from global FOREX markets.

By: kelly price

Currency Forex Trading Tips - The Era of Online Investment Banking

noreply@blogger.com (Satria Sudeki) — Wed, 29 Jul 2009 21:08:00 +0000

Online Investment Banking- Purpose

Online banking or known as 'Internet Banking' by the common man is a secure and fraud-proof way to conduct financial transactions over a website by their retail or virtual bank, primarily.

To ensure security, the normal 'single password authentication' method is not used unlike most of the shopping sites. Instead a two way methodology is adopted, including the PIN/TAN system, and the digital signatures method. This is done to secure every transaction from the two most common online attacks- phishing and pharming. There can be other methods too through which the login information of the trader can be stolen. Thus, it becomes all the more necessary for online banking to ensure maximum safety of the finances.

The Saxo Bank- history and introduction

Investment of one's hard earned money and assets has always been a delicate issue which needs to be dealt with utmost concern and care. Going by the numerous examples in history, one can clearly observe that for anyone to reach pinnacles of success, a great knowledge base and experience play a very important role. Unfortunately, not all people have had the chance to take a plunge into the foreign exchange markets full time, so as to claim to be the veterans of the field. Here is where the online investment banking solutions come to the rescue of such people.

The Saxo Bank is one such example. It is a Danish online investment bank which was founded in 1992 by Lars Seier Christensen, Kim Fournais and Marc Hauschildt, and later renamed to the present one. The primary purpose of the bank is to offer trading in the 'capital markets' through a forum run online. Apart from dealing in finances directly, it goes a step further. At present the Saxo Bank offers services in foreign exchange, 6000+ CFDs, stocks, ETFs and other derivatives.

The Saxo Bank has its headquarters in the city of Copenhagen in Denmark, with numerous other branches strategically located in other parts of the world. It operates with an ease in all those areas on the world map which adhere to its basic rules and regulations of operation.

The Operation

Any bank operates with the opening up of accounts in its branch(es). Same is the case with the Saxo Bank too. Pertaining to the requirements of the clients, the bank offers three basic types of accounts are available- the Saxo Web Trader which deals with all the transactions over the internet, the Saxo Trader, and the Saxo Mobile Trader which has additional features assigned to it so that the clients are able to access their account from their cell phones ensuring mobility. Additionally, there is also a Saxo Mini Trader which is helpful in providing all the worldwide currency information in a compact and easy-to-read and access form.

The well-knit technologies make this bank and its features praise-worthy. Yet, no system is fool-proof, and with extra caution and care, the investors must think of investing their precious assets in the foreign exchange markets.

By Steve H. Colon

Beginners Guide to Online Trading

noreply@blogger.com (Satria Sudeki) — Mon, 27 Jul 2009 20:41:00 +0000

Welcome to a whole new world of investing! As a newcomer in the trading business, much less in the online trading business, learn to calm down for a moment and not just dive into the middle of trading with your gut feel as armor.

You need to immerse yourself in the nitty-gritty details first before you start. The most important of them all is to get an online trading account. Hold on to your horses and do not just open anywhere. Here are the tips to help you get a good and safe head start:

• Search for an online investing account

-Be careful though since you have to make sure that the online account is backed up or supported by a reputable financial institution.

• Equip yourself with tools and research support
-You could try those free software applications found in the internet.
-They offer speed, 24/7 customer support and of course, all the analysis and signals that you will need.

Even though you've landed yourself with the best to support you with your quest towards greater profit, are you adept with the common jargons being used by the traders? Don't be left out in the circle since knowledge of the trading business is what gives you an edge.

Bull and Bear markets don't talk about the sale of animals but the status of a country's economy. A country with a bull market means they're very much bursting at the seams with good employment rates, their currencies are very strong and foreign investments just keep on pouring in.

The Bear market is it's opposite. You see, the perfect example is what the global environment is at now - a plethora of unemployment, currencies seem to be falling down like shooting stars and foreign investments are quite shy and minimal. Just like what is happening to the United States of America as well as other countries. They are under recession and well, sometimes, this is the best time to buy or trade since shares of stocks are going down.

Best learn the fundamentals before you go to online trading. Since you are indeed a beginner, you may find it so appealing and you just can't wait to load your wallet with enormous sums of money. Take time to find your way and surely, your wallet will rejoice from the loads of Benjamins instead of those Lincolns.

Do not be frustrated with the word Loss since you've got to win some and loose some in order to find out what strategies work best for you. There is no standard rule in this game of odds. Be persistent and determined. Do not loose hope.

On your spare time, read reviews that are made available in the internet. There you can also gain some insights from various newcomer and seasoned trade investors as well. They're not that selfish in sharing some notes since once you consider them your mentors, they will feel elated all the more as a source of inspiration.

By Jeff C Daniels

Forex Advice - Simple Tips For Getting The Best Advice

noreply@blogger.com (Satria Sudeki) — Sat, 25 Jul 2009 16:31:00 +0000

Today with the growth of online trading there are more vendors offering forex advice than ever before and they all claim they can lead you to currency trading success. The reality most of it will just see you lose. So use this factor when judging it:

It may sound obvious but a real time track record of profits.

The bulk of advice over 90% is not worth the money and you can get better advice on the net for free.

Most vendors simply make up track records and produce a hypothetical track record that is done you guessed it in hindsight – Knowing the closing prices! Well that’s hard.

You will also get testimonials but these are normally made up friends or traders who had a lucky trade.

If you ask for the real time track record you know the vendor has had success himself and while this doesn’t mean you will win it at least shows they have confidence to trade their own system.

Finding good advice

You can get a lot of good research for free:

From banks and brokers and a lot of it is very good and you can get ideas – You shouldn’t follow it blindly and you should always compare it with your analysis but for ideas its great place top start.

While a lot of the vendors who sell advice will give you a system it is normally of little use as it doesn’t have a real time track record and you should ignore it - all you need is on the net and it’s free.

Here is what you need to do.

1. Look up technical analysis and learn how and why it works and learn the concept of support and resistance

2. Then you need to learn the concept of breakout trading how and why it works

3. What you want to do is to trade against support and resistance and you need to get the odds in your favour, so you need some momentum indicators to help you.

Go to a good free chart service such as futuresource.com and learn about stochastic and the Relative strength Index and how to use them.

You can then trade support and resistance and use these indicators to time entry.

The above will give you a perfectly robust system you can apply for profits. All the information is free and to help you we have written numerous articles on building forex trading systems so look them up.

There is some advice worth paying for and you can get that from Amazon.com

Two essential books are:

1. Market Wizards by Jack Schwager that interviews some of the top traders of all time. These are traders who don’t just talk the talk they have walked the walk and made millions.

2. Also get “Way of the turtle” by Curtis Faith – He learned to trade in just 14 days in a famous experiment devised by legendary trader Richard Dennis to prove that anyone could learn to trade.

These traders known as the turtles went on to become some of the most successful traders of all time, all learned to trade in just 14 days and all had no previous trading experience.

Curtis Faith made $30 million and was the most successful turtle of all and this is a great book for anyone wanting to know what you need to do to become a successful trader.

So your system you can get free on the net and the two books above will give you a good introduction to the mindset of the successful trader.

By: Monica Hendrix

Currency Trading Success – 6 Tips to Increase Your Profits

noreply@blogger.com (Satria Sudeki) — Fri, 24 Jul 2009 18:03:00 +0000

If you want to increase your profit potential and achieve currency trading success then the simple tips will help you.

Some are at normal investment wisdom, but as the bulk of traders don’t ever achieve long term currency success, so that’s Good!

Here are your 7 tips for greater currency trading success and bigger profits.

1. Focus on the long term trends

Currency trends mirror the health of the economy generally and economic trends last years and these are reflected in currency trends.

Forget day trading, it’s the equivalent to flipping a coin. You can’t predict such short term movements so don’t try.

When flipping a coin the odds are even, but keep in mind in currency trading the fact that you have to place a stop and you have to overcome both slippage and commission, means you will take a thumping loss.

Day trading won’t lead to currency trading success for you, but will simply make your broker rich.

2. Trade in frequently

Many traders want to be in the market all the time and act like gamblers trading for the sake of trading if you DON’T want currency trading success do this!

Only trade this moves with the best profit potential.

Keep in mind you may need to be patient – You can’t hurry the market, so don’t try.

3. Don’t diversify too much

If you don’t risk anything you won’t make anything.

Diversification is the enemy of making really big gains.

To make really big profits you have to have the courage to take calculated risks on the really good trades and go for maximum profits.

This is the only way you will make really big gains - Period.

4. Use a simple system

There is no correlation between how complicated a system is and how much profit it will make.

On the contrary, simple systems are more robust than complicated ones and will cope better in the face of brutal market conditions.

A good example of a simple system is a breakout system, which anyone can understand.

You must always make sure you understand the system’s logic.

If you do, you will have the discipline to follow it through inevitable losing periods, so never trade a system where the logic is not revealed.

A great method to learn is the Gann method of trading, its different, it’s revealed and it made him $55 million.

In conclusion, get a system you understand, that’s simple and that has been proven to be successful.

5. Never Seek or Give Opinions

If you win at currency trading you will often be trading in the opposite direction to the majority so don’t discuss your trades with other people, they will put you off and don’t give opinions either.

Trade in isolation.

Independent thought, is one of the keys to currency trading success so don’t get distracted.

6. Stay with the majors

Stay with the major currencies: US $, British Pound, Euro Swiss Franc and Japanese yen.

These all have good liquidity and good trends.

Don’t trade minor currencies that can feature erratic moves or currencies that don’t have a long history.

The majors will give you plenty of opportunities so use them.

Above are six general rules for currency trading success and bigger profits.

In part 2 of this article we will look at some others that will help you achieve bigger profit potential from your currency trading. Good luck!

By: sacha Tarkovsky

3 Forex Trading Tips

noreply@blogger.com (Satria Sudeki) — Thu, 23 Jul 2009 13:43:00 +0000

When looking for forex trading tips there is a lot of information out there to consider and it can be difficult to navigate the waters and find someone you can really trust. With this in mind, this article has gathered some of the best forex trading tips to share with you in an easy to understand way for the best results. One of the biggest things to remember is that knowledge truly is power. The more you know about forex trading, the more in control of your trading you can be. When you first start trading online, take the time to read through everything and get a real grasp on how the system works and when is the most beneficial times to trade and how.

1. You also want to gauge your risk level, if you are a trader who sets tight orders, works with small increments, or puts inflexible stop orders on your trading then you are not going to get the full range of benefits from forex trading. You need to be able to relax a little and let the market do what it will before you freak out and change everything. The best times to trade in forex trading is during its most volatile times, not the safe quiet times. This takes a little grit on the part of the trader, but is crucial to make the real profit margins you are looking for instead of nickel and dime profits.

2. Another great benefit of trading forex is the small margins and while an experienced trader can use this to their advantage since they are able to trade amounts larger than their deposits total, a novice can easily get carried away and get in trouble using this tactic. A good rule of thumb is to increase your leverage as your experience increases.

3. Never trade without some sort of strategy. You aren't expected to be able to predict the future, no one can, nor know what is going to happen with each trade you make, but you should have a goal in mind and a plan of action that can reasonably get you to that goal. Also avoid trading during off-peak hours, this may seem like the best thing to do, but it's not and unless you are extremely experienced with forex trading it won't work to your benefit.

In the short run, the biggest forex trading tip there is to be successful is to know what you are doing. Take the time to learn how forex trading works and if you are insecure in your trading, get the help of a broker or at least talk with independent traders who have been using forex for awhile. Then develop a strategy and follow the simple tactics above to learn how to successfully take part in forex trading.

By Jayda Kaycee

Foreign Exchange Day Trader

noreply@blogger.com (Satria Sudeki) — Wed, 10 Jun 2009 10:20:00 +0000

I received an email from a prospective buyer of my online trading course. His question (below) caused me to think about the wisdom of pursuing trading as a worthy venture. I know that a lot of readers are investors rather than traders, but regardless of your trading horizons, the skills and concerns of active short-term trading are relevant to us all.

Question: There are a lot of people who say that day trading is for ’fools’ and that it is very difficult to make a living from Day Trading.

What are your opinions?

Trading is like most business: it requires commitment and perseverance. It is never easy to make money, but people who have mastered a skill make it appear easy. The really successful pit traders that I have known made trading look very easy, tantalisingly easy; but they all had many years of experience behind them. For every successful trader there has probably been a few hundred who have tried and failed.

I think people fail at any business if they approach it without an appreciation and understanding of what is required for success. The majority of traders fail, because they have no such appreciation and they have unrealistic expectations of themselves. Any trader who starts with the expectation of becoming an instant success is setting himself up for failure.

No one would decide to become a golf pro and assume that they could just pick up a bag of clubs and start winning tournaments. Yet novice traders do this all the time. Just to start with the understanding that trading is a skill that is developed over time, through experience, puts a novice trader way ahead of the competition.

There are two core skills in trading: first the ability to anticipate the market (read the market) and second, having the discipline to execute your plan. To learn to read the market you may as well use a trading simulator and only start to trade when you have demonstrated to yourself that you can anticipate the market. Discipline, though, has to be developed and tested in the real world.

Discipline is really the crux of the matter and it is here that most traders fall down. Their failure is mainly due to the fact that they are not really aware of its importance. Just starting out as a trader with the intention of developing your discipline puts you way ahead of the average trader. If you can trade with discipline (i.e. stick to your own rules and limits) you are 95% there!

So I would say that for the average aspiring trader, trading is a fool’s game; but for those of us who approach the business as a business, with a clear understanding of the unique challenges that trading offers, it is a rewarding and fulfilling career.

By: Martin Chandra

Day Trading Online in the UK

noreply@blogger.com (Satria Sudeki) — Tue, 09 Jun 2009 10:22:00 +0000

It is one of the strongest currencies in the world, but the whole economy is not as powerful. It fluctuates up and down, along with trends in privately and publicly-owned companies. England's economy has experienced some very high points, but has also experienced some low points as well.

No matter where you live, you must carefully consider your options before you try to earn a return on your investment; and England is no exception to that rule. But some people in the UK still like to take a risk with their money and one of these risks is day trading online.

Day trading online involves the process of buying and selling shares over the Internet at short notice. Day trading online has been seen by many as a way to get rich quick, but that isn't the half of it. Statistics show that online day traders are having a rough ride, with 70% of online day traders losing money. So if you are looking at getting into the world of online day trading, then you should know the risks that are attached to the service.

But when you are in the world of online day trading then you will get some excellent services given to you. One of these services is a chat room, where you can talk to other buyers and sellers. This is a good way to find out what the next big time company might be, but you have to know if this person is "share ramping," which is the process of talking up the shares artificially. So you have to take the risk of guessing if this person is correct or not and if the information hasn't been authorized.

These days, online trading websites are somewhat risky and can be dangerous. But if you are a professional when it comes to buying and selling shares, then you will know all about the risks and you can make yourself a tidy profit. Day trading online should not be used by beginners, but more used by people that are heavily experienced in the stock market world.

By: lar

Automated Forex Trading Greatly Increases Trade Volumes

noreply@blogger.com (Satria Sudeki) — Wed, 03 Jun 2009 20:25:00 +0000

Imagine the next time you join a discussion about automated forex trading. When you start sharing the fascinating automated forex trading facts below, your friends will be absolutely amazed.

The concept of automated forex trading is fast catching on. The first market to move to automated trading was exchange-traded futures. Following this, traders working in the Interbank spot FX market too moved on to this system.

The success of the system flows from its ability conduct trade in real time. This is difficult to achieve manually, especially if the trading is to be done in milliseconds. Also, there may be times when a trader may be away from the desk, or a trader who has incurred a series of losses may take time before placing a fresh order. These are dampers that automated foreign trading removes.

Another advantage that automated trading brings in is diversification. It is possible for a trader to trade in different markets, and in different time zones. The trader can also deploy multiple trading models.

The trader can also use the automated model to analyze short-term data, which is not possible otherwise. This gives the trader an advantage over others who are not using the automated trading system. The trader can use this short-term data to analyze how the market will move in the next 15 minutes or half an hour, and accordingly take decisions. Also, high frequency trading allows existing data to be used in different ways in different markets.

The information about automated forex trading presented here will do one of two things: either it will reinforce what you know about automated forex trading or it will teach you something new. Both are good outcomes.

Automated trading also improves liquidity. This is quite apparent from the way the number of trades shot up in futures exchanges following the adoption of automated trading.

However, one area that worries traders is the likely increase in the number of orders once all traders adopt this system. The fear is that there may not be sufficient bandwidth or engine capacity to execute all these orders in real time. Already, some quarters are employing controls to guard against unnecessary order messages.

Risk management is another area that worries forex traders. An automated trading environment’s risk management logic requires that before a new position is opened a check be made to ensure that there is no excessive correlation with already opened positions. For this check to be accurate, all systems need to be synchronised. But these are technical issues that the market feels will be resolved as the technology improves.

For the time being automated trading in forex is the buzzword.

Knowing enough about automated forex trading to make solid, informed choices cuts down on the fear factor. If you apply what you've just learned about automated forex trading, you should have nothing to worry about.

By: Matthew Bass

Currency Trading For Beginners - Most Novices Make This Mistake!

noreply@blogger.com (Satria Sudeki) — Tue, 02 Jun 2009 21:04:00 +0000

If you make the mistake enclosed you will lose at Forex trading and here is the mistake that causes the demise of more new accounts than any other. If there is one lesson for currency trading for beginners that you need learn.

Most traders believe that currency trading is easy and they think they can follow a guru, expert advisor or forex robot with a back tested system and enjoy currency trading success and of course, they lose their money. If you could win by buying $100 buck robot the amount of traders who lose wouldn't be so high.

Understand This!

Forex Trading is NOT easy. That's why 95% of traders fail to make money and get wiped out. That's a huge percentage of losers however:

The Good News However is

If you understand that big gains don't come without effort, you are prepared to get the right forex education and the right mindset the gains can be life changing - but you need to make an effort and get the knowledge you need, to give you confidence to trade with discipline.

Why You can Succeed

You wouldn't expect Forex trading to be easy with the huge rewards on offer - but you can succeed as forex trading as it's a learned skill. You don't need to have a college education and you don't need to work hard - you need to work smart, get the right Forex education and you can win. Anyone can learn currency trading in a few weeks and make money in 30 minutes a day. The effort you make will be well rewarded just simply understand the following combination for currency trading success:

Knowledge + Discipline to Execute the Knowledge is the Key to Success

Knowledge by itself is not enough to make money.

Having a logical robust forex trading system, needs to combined with the discipline to execute it.

You need to have the confidence to keep putting in your trading signals and ride out losing periods where the market is hurting your ego and giving you losses and your emotions are trying to tell you to veer of course.

Losing periods are part of trading ( don't believe anyone who tells you otherwise) and they can last for weeks and you must say on course until you hit a home run.

If you don't execute your signals though these losing periods with discipline, you have no system!

Success Comes From Within

Success comes from within. Someone can give you the knowledge and education and even though it may be sound education, it's your discipline and mindset which will turn it into profits. In forex trading many traders get the wrong education and lose and many others simply cannot trade with discipline and lose. In conclusion the trader doesn't get beaten by the market he gets beaten by himself.

Understand this and You can be a Winner at Forex

Understand Forex trading is not easy and success comes from within and the pillars of knowledge, confidence and discipline and you are on the road to a great second or even life changing income.

No other investment offers you such great profits in terms of effort to profits, it's not easy of course - but understand the above and you can win and your efforts will be well rewarded.

By: kelly price

Best Forex Online Platforms Trading

noreply@blogger.com (Satria Sudeki) — Sun, 31 May 2009 14:04:00 +0000

The term forex refers to Foreign Exchange. The foreign exchange market deals basically with the trade of a particular currency for another. It is considered to be the world’s largest financial market. The forex market includes various levels and forms of trading. It includes the trade carried out between various banks, currency speculators, central banks, governments, multinational corporations, and various other financial markets and institutions.

The main advantage which forex trading has over the conventional New York Stock Exchange and other similar stock exchange markets is that the traders can trade any time of the day. The conventional stock exchange markets limit the trading in the actual trading hours of the market. The best forex online platforms trading is preferred nowadays by most people owing to the fact that it enables forex trading anytime of the day and from anywhere in the world. This is done by giving access to traders of the online community of forex trading through online trading platforms.

The forex market is a great success compared to the other stock markets owing to the fact that the currency exchange market of the world operates around the clock. The prime requisites for a trader thus are time, money, a computer with the Internet facility and a telephone. The traders or the banks just need to log in to their forex trading account to start trading.

The best forex online platforms trading are also highly beneficial owing to the numerous advantages. The forex market is estimated to witness the trade of around one trillion dollars. The primary process can be understood in simple terms. It involves the trading of one country’s currency for another country’s currency.

The best forex online platforms trading are also the fastest and the most efficient modes of online forex trading. The traders can gain large profits owing to the structure of the market.

By: Ricky Lee

Building a Forex Trading Strategy

noreply@blogger.com (Satria Sudeki) — Sat, 30 May 2009 13:07:00 +0000

Your chosen Forex trading strategy will drive the trading decisions that you make in the Forex trading system. If you are new or a novice to Forex trading systems, you will need to develop an appropriate strategy that will evolve over time. The following steps outline the approach to building a Forex trading strategy that may be adapted and tailored to your needs.

Develop a Forex Trading Plan - A Forex trading strategy should never be considered absolute or complete. Part of having a Forex trading strategy is incorporating a plan for making adjustments to the strategy. You will need to be able to make adjustments without completely revamping your strategy. Though you may consider your trading strategy to be more technical than fundamental or vice versa, you should take advantage of any available market data in making your trading decisions regardless of which discipline it falls under.

Initiate a Forex Trade - You must decide on the currency pairs that you which to trade and the number of units to trade. You must establish either a buy or sell position. You are then ready to initiate a trade as either a market order or a limit order. A market order initiates a trade at the current market price while a limit order permits a trade to be executed when the market price reaches a limit that is predetermined by you. As a safeguard for online trading, particularly with limit orders, you should also establish limits to take profits or stop losses. Take profit and stop loss limits become particularly important with online trading when your Internet connection is loss. In the time it will take to reestablish a connection, the market price may change and fall outside of any established limits. Your trading platform may be able to calculate a suitable set of limits. Limits are set as either the percentage of the trading range or as distance from the market entry price. If you have established an open position, you may adjust these calculated values to suit your needs.

Determine When to Exit a Forex Trade - If a trade moves in favor of your established position you must evaluate the move. In a long position, a move is considered significant if it is in the range of 15 to 20 pips. In response to such a move, it would be advantage to raise your stop-loss limit above the market entry price and your take-profit limit by about 20 pips or the number of your choice. If the trade continues to move in your favor you should continue to raise the stop-loss and take-profit limits. This aspect of a trading strategy allows you to continue to generate profits while the market is working in your favor. Unless, for some reason, you feel you need to manually exit the trade, you should not exit the trade until the market reverses to trigger your stop-loss order. A take-profit limit should not be used to signal an exit from the trade. If a trade moves against your established position, you have two options. You may manually exit the trade before your stop-loss limit is reached or stay in the trade until either the stop-loss or take profit limit triggers an end to the trade. It would not be beneficial to lower the stop-loss limit with the expectation that the market price will reverse for a short period of time. While such a reversal is possible, the odds of this type of market action are low and your Forex trading strategy should not depend on this type of anomaly.

By: Andrew Daigle

Currency Trading – Success Depends On One Critical Factor

noreply@blogger.com (Satria Sudeki) — Mon, 30 Mar 2009 21:27:00 +0000

Currency trading success depends on several factors but they all stem from one specific factor – If you don’t have it, you will probably join the 95% of losers.

It’s a common error made by novice traders, so let’s look at it:

You need confidence in the method you use.

This requires some more explanation.

It’s a fact that most traders don’t have ultimate confidence in their method because they do the following:

They try and buy a method from someone else and don’t understand the logic it is based upon. Because they don’t fully understand the logic, they fail to follow it through losing periods and throw in the towel.

If you want to succeed in Forex Trading you need to follow a method with rigid discipline, through inevitable losing periods.

If you don’t, you don’t have a method in the first place!

Furthermore most systems sold are junk.

There sold by writers, or failed brokers and simply don’t work.

These people rely on hypothetical track records and the greed of buyers, to make them think they will win, but of course they don’t.

So how do you get confidence in the method you use?

1. If you are buying a system

Only look for a track record in real time of 2 – 3 years duration – this proves that the logic of the system is soundly based.

By looking for a real time track record you can get rid of 95% or more of FOREX trading systems that are sold.

2. Understand the logic

However, even with a FOREX trading system that has worked in the past you still need to have confidence in it and that means understanding why it in depth, so you have confidence.

You also need to be happy with the drawdowns it incurs some traders can take for example 50% drawdowns - others can’t.

Look at the worst peak to valley drawdown and time to recovery.

Make sure your happy with it and that you can follow your system through drawdowns of similar magnitude.

3. The best way to achieve currency trading success is to:

Devise your own FOREX trading method.

While this may sound daunting, it’s easy to do.

You can build the system and test it and as it’s yours you will have total confidence and the discipline to follow it when the going gets tough.

Building a system is easy, if you do a little research and we have in our other articles shown you how to do this.

Many people think they can trade FOREX and have no real drawdown, but that’s not real life.

Drawdowns are emotionally and financially draining and confidence gives you the discipline to stick with your system.

by: kelly price

Check Out the Related Article : Make Money with Online Trading

Currency Trading Systems - Building a Profitable One in 4 Steps

noreply@blogger.com (Satria Sudeki) — Sat, 21 Mar 2009 21:27:00 +0000

If you want to trade currencies then you need a currency trading system that will get the odds in your favour and here we will show the basics that make a successful one. Anyone can build one and incorporate it in their Forex trading strategy and it's easy to do - Let's look at the basics.

1. Identifying the Opportunity
The best way to identify an opportunity is to use support and resistance and good old trend lines. We won't explain support and resistance here - but if you are not familiar with it look it up on the net - Here we want you to keep in mind one key point:

When you trade be selective and only trade valid support and resistance.
What do we mean by valid?

- The more tests the better- The more time frames involved the better- The longer the duration between the time frame the better
The above are just general guidelines - you can use 2 tests but 3 tests or more, are better and look for resistance or support that is considered important by the market.
You then need to decide after spotting the opportunity on your forex charts when to trade.

2. Executing the Trading Signal
Never simply buy into support or sell into resistance with your currency trading system.
This wont work, as your predicting what may happen and as you can't predict the future ( despite what many guru's will tell you), you are simply hoping or guessing and the market will kill you.

You need confirmation.

If you don't know what momentum indicators are look them up - you need them and there an essential part of your forex education.

You only need a couple to confirm the move - more is not better as you need a simple system - more complicated ones have more elements to break.
The way to use them is to watch for a level to hold and when momentum shifts away from the level then you trade.

Don't just look for support or resistance to hold though - incorporate breakout methodology. It's a fact that most trends start form new market highs NOT Market lows. So, if prices breakout supported by momentum buy them!
Most traders can't do this they want to get back in on a pullback that never comes - don't make this mistake trade the breakouts like the pros do.

Finally be very selective and only trade the best set ups - in forex trading you don't get paid for how often you trade you get paid for being RIGHT.

Trade sparingly and only trade the big high odds trades.

3. Stops and Profits
Stops are easy and behind support and resistance. Place them as soon as your currency trading system gives a signal.

If you are long term trend following, keep your stop well back and give the market room to breathe, so you don't get stopped out by random volatility.

You are going to miss the turn but as you can't predict that anyway, that's fine.
Catch 50 - 60% of the big trends and you will become very rich.
Swing trading is another matter.

You're looking for smaller moves and they can disappear quickly, so use a profit target and take your profit early!
Don't worry about perfection of what you might have made - concentrate on making money - no one is perfect but that won't stop you enjoying currency trading success.

4. Managing Your Money
Forex trading is risky, that's why the rewards are so high. Many traders however try and restrict risk so much they create it.

They trade to often have stops to close and move them too quickly and end up losing.
Confront risk cheerfully!
Forget all the common wisdom about risking 2% per trade- if you're trading a $10,000 account that's 200! If you don't risk much you wont win.

If you have a high odds trade risk 20% and have the courage of your conviction.
If you take calculated risks at the right time you can enjoy currency trading success.
FINALLY REMEMBER THIS!
So there you have it the above is a simple system - support resistance and a few confirming indicators and the best systems are.

Keep in mind that forex trading is as much to do with mindset as method and you need to maintain discipline.

Simple currency trading systems are easier to understand, apply and have confidence in which leads to the discipline to follow your currency trading system to long term currency trading success.

By: kelly price

Check Out the Related Article : The Benefits of Forex Trading

Choosing A Forex Trading Course

noreply@blogger.com (Satria Sudeki) — Tue, 17 Mar 2009 09:26:00 +0000

Are you looking to choose a good forex trading system, one that will be worth your time and effort learning how to trade?
Well, there are a couple of key points to keep clearly in mind, even before you go out hunting for a system to learn.

Firstly, some systems perform better than others in areas such as profitability and drawdown. These are vital.

Secondly, some systems can be taught more easily than others, take less time to trade, as well as suiting your personal daily routine better. You need to ask yourself: Do you want to trade all day long 5 days a week, or trade for 2-3 hours 3 times a week to make the same profit?
So when we’re choosing a forex trading system, especially if we haven’t had much experience with forex before, we’d want to jump in with some thought and consideration behind it.
We’re aiming for this:
We want to find a forex trading system that’s profitable enough for us, that has an acceptable drawdown, and that actually fits into our daily routine! If and when any of these 3 factors are not there, we find ourselves not able to continue trading the system.
So continue reading to find out how to choose a forex system that’s worth putting in the time and effort in to learn!

So here are the 7 power points when checking out a forex system or training course that you’ve found:

1. The profitability of the system.
This is shown as either pips per month, or when assuming a certain float amount, the dollar amounts per month.

These profit figures are often quoted in pips per month, as it’s one way of comparing trading systems, despite the fact that people are trading different trade sizes.

However, when looking at pip profit figures, just be aware that if you assume a fixed risk model, that the average face value that people will trade with any given float, will depend on the average risk per trade. This in turn, depends on the average stop loss distance for that system. But the stop loss distance is not often quoted.

As an example, say you want to trade with a 2% fixed risk model. If the average risk per trade in the first system is say 30 pips, and in the second system is 60 pips, then the average face value would be twice the size in the first system for any given float. If both systems produce the same average pip profit per trade, say 100 pips, the first system will, in terms of dollar amounts, produce the higher profit.

If on the other hand, we’re assuming a fixed dollar risk model, then the amounts you put in will depend on the size of the float.

2. The maximum drawdown either historical or based on real trading.
The maximum historical drawdown of a system is the largest decrease in equity that has happened in the past during backtesting or real time trading of the system.

When comparing drawdown between systems, you can either look at pips, or if using a assumed float, look at the dollar value. Then with this dollar value, express it as a percentage of the cash float used. For example, if the maximum historical drawdown was $6000 based on a $10 000 cash float, then the drawdown is 60%, expressed as a percentage of the cash float.
As well as using this drawdown figure to compare systems, you can also use it to figure out the amount of funds you’d need to start trading the system.

In the example we just mentioned, you’d need at least $16 000 in the beginning ideally, to trade the system. That is $10 000 float plus backup of $6000. This is in case a drawdown occurs when you first start trading, not months or years after you start. It’s wise to be prudent and to have backup.

3. What’s the win loss ratio of the system?
The “win-loss” ratio of the system, is the percentage of winning trades compared to losing trades. A high win-loss ratio is a bonus, in that the system may be psychologically easier to trade.

But more ultimately, you need to look at both the win loss and profit loss ratio, which we come to now…

4. The “profit-loss” ratio of the system.
The “profit-loss” ratio is the average size of winning trades compared to losing trades.
A high ratio means that the system is pretty robust. And this is a strength.

So if the “profit-loss” ratio multiplied by the “win-loss” ratio is greater than one, then you’re on the right track, that is, the system is profitable. You’d want this ratio to be 2 or 3 or more, not just bordering on one, which means that the system is profitable with a good edge.

5. The consistency of the system, by month and by year.
If you can find a profitable system, with a reasonable drawdown, and is very consistent, then that’s great. Look at the monthly, quarterly and yearly results to best tell this.

Some people won’t mind a slightly higher drawdown and less consistency, if the profitability was much higher. However, others depending on their circumstances and personality may want consistency more than profitability, to an extent. There’s a different sweet spot for everybody! What’s your sweet spot?

6. How much time do you need to trade the system each day?
Some forex systems require about 15 minutes a day to trade, and these are usually daily systems. And others need a few hours per day to achieve similar returns.

On a slightly different note, some forex systems trade the major economic announcements. In these systems of course, you know exactly when you need to be at the computer. Do you want to be a day trader, or do you prefer to trade a short time a day and then focus your day on other businesses?

7. Is the system quite systematic, quite discretionary, or a combination of the two?
A mostly mechanical system is an advantage in that they’re teachable and learnable. There’s less need to learn discretionary skills that come from real-time paper and live trading, although it’s rarer to find systems that are 100% mechanical.

For example, when putting in your support and resistance lines, does the course give you clear rules so that your lines, and therefore your trading decisions will be close to that of the person that’s teaching you, or the mentor that developed the system.

Even better, do they have weekly examples of how they draw their lines to fine tune your drawing of these lines?
Now that you know these keys to assessing a forex system, go on and have some practice looking at various forex strategies for yourself.

You’ll save effort and frustration if you choose a system that was worth learning and trading!
So consider the above points when looking at various forex trading systems that you’re thinking of learning.

If you’re a beginner, have patience, as you’ll need to learn the basics and then practice assessing a forex system for yourself.
If you know what you’re looking for, you’ll be able to more easily forex system that suits your daily routine and is profitable, not one that causes frustration!
So have some practice assessing forex systems. There may a forex seminar or forex introduction session near you, where you can go and check their system out for yourself.

By: Mark Hamburg

Check Out the Related Article : The Benefits of Forex Trading

Best Online Trading

noreply@blogger.com (Satria Sudeki) — Thu, 12 Mar 2009 06:04:00 +0000

Best Online Trading -Trading In Virtual World

Online stock trading has a taken a new dimension today. In the stock markets officials are nothing a large amount of stock is being traded and a major rise in the opening of share trading accounts. Previously, everything was done manually or at the stock exchange and was the monopoly of few trading agencies but due to advancement in technology now everything has come to a finger click. No more waiting for replies from brokers!! On the other hand, Information of current market trends ups and downfall everything is easily available in the respective website. All the investor has to do is via Internet decide on the stock purchase and sales and easily earn in loads.

Strategies of Trading

In stock market investing, it is very commonly observed that small investors go through major losses due to lack of the knowledge of online stock trading strategy. The way of good trading strategy is of two ways. First, invest on an undervalued stock so that your investment should not go at total loss. Emotion should be kept out of mind and one should mentally acquire an upper and lower selling limit. Reflex ability should be maintained in this matter, when trading stock the instrument should be moveable, otherwise these trading would not work.

Day –Trading

The individuals are not aware what the Wall Street professionals have in store in them at all. Moreover, they know at what they are good in doing and giving the best shot. They do things like questionable analyst upgrades for other companies. In addition, those are the clients of the brokerage firm, for which the analyst is working. Therefore, the company or a corporate can sell it at a higher price. Day traders do not sleep at night it seems that they even dream about selling and buying stocks. Day traders are in born to trade. They know how to do business and make profit upon the market. By day trading, the day trader can earn in millions every day. The day traders invest blindly in the stock market today.

The truth behind the stock market is that it is game of fortune the big play with their money in the stocks . They try their hand in every aspect to earn a large profit out of their stocks. Moreover, their greed for money even takes them higher. In addition, a good portion of money is made out of by not informing the stock trader and investor who blindly trades and makes his contribution in the stock market today.

Discount Stock Trading

The most affordable way of buying stocks is through discount brokers. Nevertheless, a discount broker would only give a little about the company shares and that would not clarify the information about the stocks at a whole. Therefore, a full service barker is necessary for full financial advice support that cans advice on stock selections and financial planning. The foremost thing in stock broking is to rely on yourself that is to study and personally thus avoiding being less reliable on investment advisors or full service brokers. However, financial advisers can be of extremely helpful when you are real financial crisis. They are help at hand. They should be kept handy when needed.

Best Online Trading

when someone is thinking of investing in an open market, he should follow some real good guideline. He should know the terminology of share trading. He has to have a good financial background in order to gain success in stock trading. You have to volatile and quite familiar with the stock market in order to make a good profit. But you don’t have to be so much savvy with the stock market.

By: Vijayseo

Check Out The Related Article : The Benefits of Forex Trading

Beginning Forex (Currency) Trading

noreply@blogger.com (Satria Sudeki) — Sun, 22 Feb 2009 15:57:00 +0000

Foreign exchange (forex) currency trading, the largest financial market in the world, requires a minimum of capital to invest and the profits can be substantial. Once you have learned the basics of forex, you’re on the way to making money through the simultaneous buying or selling of currencies. Forex trading is instantaneous; as soon as you click the mouse, it’s done. The most commonly traded currencies, easiest to liquidate, are the U.S. dollar, Japanese yen, British pound, Swiss Franc, the Canadian dollar, Australian dollar, and the Eurodollar.

Unlike the stock market, forex trading has no central exchange. With forex, you can make a profit whether the market is up or down vs. only making money when the stock market is on the rise. By taking the long position with a pair of currencies, the forex trader buys at one price and sells when it reaches a higher price. The other option for the forex trader is to go short by selling currencies, anticipating depreciation, and then buying back when the value falls. The forex trader can pick either direction, long or short, and if correct, he will generate a profit. You can also set up a certain point (limit order) based on the amount of profit you want to earn to automatically limit the order. In the same way, you can stop or close an order to automatically liquidate if the currency trade is going against you.

In general, the strength of a country’s economy determines the value of its currency. Other factors to take into consideration in forex trading are the political and social status of the country, interest and employment rates, and the overall stability of its government. You will learn to see patterns or trends as you become more familiar with the in’s and out’s of forex trading.

The Forex market is a 24-hour trading place, Sunday through Friday, giving you the option of trading at any time of the day or night. Unlike the stock market, it doesn’t close with the ringing of the bell. Forex online firms provide demos, guidance, and market news for the beginning investor. You can practice your skills in forex trading before actually investing real capital. Once you’ve learned the basics, a minimum investment is made, sometimes as low as $200.00. These “mini-trading” accounts are a good way to begin forex trading and often there is no commission attached to your trading. You don’t have to be a seasoned market analyst or economist to learn, enjoy, and make money with forex currency trading.

By: DL Howard

Check Out the Related Article : Online Trading