Forex Trading Education - Risk Management 101

Many retail traders focus so much on trying to make money off the market that they often neglect to protect their capital. This causes them to ultimately wipe out their trading accounts no matter how good their 'money-making' strategy is.

You see, there are two aspects to profitable trading: increasing your gains, and reducing your losses. Unfortunately the former is the only thing most traders pay attention to. Protecting one's losses is not as sexy or exciting as making money; and so many amateur traders make the crucial mistake of having a weak money management system in place.

How Much To Risk

When planning out your money management strategy, the first thing you'll need to decide is how much of your capital you are willing to risk per trade. Experts generally recommend that you risk no more than 2% of your total equity.

An Example

When trading with standard lots, each pip is worth approximately $10.

So let's say you start trading with $10,000. 2% of $10,000 is $200. That means that you should risk no more than $200 (or 2% of your capital) per trade. And since each pip is worth $10, you can risk a maximum of 20 pips ($200/$10) for each trade that you take. Essentially, this means that you should have a stop-loss of no more than 20 pips away from your entry price.

Does this make sense?

Adjustments Needed

Of course, a 20 pip stop-loss level might be considered too tight for many traders. In reality, it's up to you to play around with the variables of your money management system. For scalpers for example, a 20 pip stop-loss level might even be too high!

It all boils down to your overall trading strategy... a swing trader will definitely want to use a higher stop-loss allowance, and he can do so by either increasing his equity capital, or by trading using mini lots instead.

The bottom line however, is to never violate the 2%-capital-risk-per-trade rule.

To learn more, download my free 26-page guide here: Forex Trading Traps!

Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading information and resources.

AP - Mortgage rates fell for the second day in a row Wednesday, and could be heading toward levels home buyers and owners haven't seen this year.

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How Does the Forex Tracer Work? Does the Automated Trading System Work?

There isn't much other stuff that is far more confusing than the Currency Trading Market which is also known as Forex. I used to see all the infomercials on TV and all I could see were those complicated charts and some regular people talking about how they made money through it. At first, like any other person, I though it was a scam. But after some research, I found that it was actually a legit option to make some cash.

When I first started I didn't know what to do. There were all these weird shaped things and waves on screen that made me even more confused. So I decided to do some more research on trading currencies and then learned about Metatrader 4 which is the most used platform. Then a huge hype surrounding an expert advisor module called the Forex tracer began. So I asked some people, "how does the Forex Tracer work?" and what I learned was that it basically does all the calculating by itself and then figures out the best trade that you should take next.

How does the Forex Tracer work exactly? It approximates your next best trade and actually does the trading automatically. You don't even have to be there for it to function. It also eliminates the tedious technical analysis and the best bit is you don't have to pay it any salary nor does it need any breaks. So you definitely maximize your profits and you get more time for yourself because you don't have to be in front of the computer all the time trying to find the best possible trades. This forex automated trading system really does work!

Do you want the very best forex trading robot? Well I have some good news for you, I bought and tested the top 7 forex software's and put a review of the top 2 on my website: ForexTradingReview.Info I made over 900 dollars a day with one of the softwares listed on that site. Just Imagine if you purchase a couple of profitable softwares!

You have to be very careful when purchasing a software though. Some of the software's just sit around and never make you any money. If you want to make thousands every week with forex I suggest you take a look at the website: Forex Trading Review

AP - Precious metals and agriculture futures advanced Friday, getting a boost from a short-lived afternoon rally on Wall Street and the potential for an additional interest rate cut. Energy prices, meanwhile, slumped due to ongoing concerns over demand.

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What You Need to Know Before You Even Start Trading

Determine Your Risk Tolerance

Risk tolerance differs for every person. Your stock analyst and broker know this quite well and they will help you assess your risk tolerance, making sure that your investments do not surpass your risk tolerance.

Risk tolerance is determined by considering various factors, like how much money can you afford or allocate to invest, and what your long-term financial objectives are.

Let's take an example. Consider that you aim to retire in the next ten years and have no savings yet. In such a case, you have to have a large risk tolerance so that you can fulfill your aim of retiring.

In case you are twenty as of now and plan to start investing for your retirement, then you can do with a lower risk tolerance.

One simple thing has to be noted that how you feel or how much risk you feel in the investment is in no way related to your risk tolerance related to your long-term financial objectives.
For instance, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?
Now, having invested in stocks, if you observe that the stock prices are dropping a bit, what can you do?

You might sell out if you have a low risk tolerance or let your money ride and wait patiently for things to improve. This risk tolerance, though, is based on how you feel about your money and not on your financial objectives.

Any good stock analyst or an expert stock broker can easily help you figure out your investment risk tolerance, and they will guide you on investing correctly, as per your case.

To put it shortly, your risk tolerance has to relate with your long-term financial objectives and also with how you feel about investing your hard earned money.

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com

Reuters - Power producer NRG Energy Inc on Sunday rejected an unsolicited $6.08 billion takeover offer from utility owner Exelon Corp , saying the offer "significantly undervalues" the company.

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Hedge Funds - Saviors For Delinquent Mortgages

The mortgage and banking sectors are facing different challenges. The slowing deposits, interest earnings, operational revenues and rising costs are posing threats to the overall existence of such lenders. Thus, expect that mortgaged homes and foreclosed properties are not usually retained by the banks. So where do the assets go?

Do not be surprised to find out that hedge funds are into buying mortgage assets. For the past years, hedge funds have tried to stay away from mortgages. However, because banks and mortgage lenders are finding it hard to keep up with the times, the funds saw a lining of lucrative opportunity. Thus, hedge funds are considered saviors and redeemers of the mortgage industry.

Different hedge funds have been actively buying out numerous foreclosed properties and distressed loans. The funds' ultimate goal is always to earn income and profit from the woes of mortgage lenders and banks. These days when home prices and valuations fall, hedge fund's foray into mortgage is a very overwhelming welcome note.

Most hedge funds that get involved in mortgages claim that they are doing better and more effective jobs than lenders and investors. Hedge funds are not always all about huge interest rates. At time, they also modify mortgages to that borrowers can easily afford regaining ownership.

The truth is, hedge funds are comparatively easier to deal with than mortgage lenders and banks. That may be because such transactions are not the focus of hedge funds. Usually, such loans are not as big and as significant as the usual transactions handled and covered by hedge funds. The businesses are also almost always open to having special and compromising agreements with the borrower. Some borrowers prefer if their mortgage will be turned over and transferred to hedge funds.

However, there is one confession by hedge funds. Usually, up to two-thirds to a half of the mortgage loans transferred to them cannot and would be hard to redeem anymore. Foreclosures are almost always immediately sold and disposed so the hedge fund can instantly cash in on investment returns. For mortgages, if a borrower could not really settle, the hedge fund will easily and politely ask to takeover the asset.

As proof is its humanity, hedge funds have also committed itself to restructuring. Thus, the risk and tediousness of court hearings can be prevented. The borrower can negotiate and ask to restructure the loan. Restructuring is a special arrangement wherein the lender and the borrower both agrees to meet halfway so the payment of loan can be effectively facilitated. Hedge funds are also open to accepting restructuring deals and proposals.

If you are a borrower and your mortgage of foreclosed property is already turned over to a hedge fund, you should settle at once. The valuation of your loan may be directly linked with the current valuation of the real estate asset. Because of this, many properties end up being fully foreclosed and sold to the market in return. Hedge funds are really heroes of the mortgage industry.

Julia Vakulenko is a licensed broker associate with Tampa4U.com Realty. She has one of the hardest working Tampa Real Estate team in Florida.

Reuters - NEW YORK (Reuters) -Stocks plummeted on Wednesday, a day after Barack Obama's historic victory in the U.S. presidential election, as a fresh batch of dismal economic data underscored the massive challenges awaiting his administration.

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Best Forex Trading Software

The best Forex trading software on the market is the Forex Killer and I want to talk about it. When it first came out it was looked at with a lot of criticism, not because of its quality, but from other products on the market that turned out to be duds. Even with the criticism at the start, the greatness of this product prevailed, even appearing on CNN.

A great feature of this software is that it is an independent program, meaning it doesn't use it's own special date feeds. You can manually add your own and use that. It is very easy to import such data as SignalSoftware, DealBook360, and MetaTrader4.

When you first start using this software leave all the settings as default, especially if you're new to Forex. The software is very useful, it's just like anything, you need to learn how to use it properly. If you add in an extensive leverage value, you may find that your currency has already been traded off by the time it turns around and becomes profitable for you.

Lastly, from my own person use with this software, I've had more profitable trades with up and coming currencies. For example I had a good run with the Canadian dollar that has rose from 63 cents US to parity with the US dollar. I've also had great success with the Japanese Yen that is continuing to climb against the US dollar.

I've had to say the best Forex trading software that I use is the Forex Killer. It will help you process the enormous amount of data that comes with currency trading.

The automated software of Forex Killer will give you an immediate edge in the market. Make trades that work for your profit line. For more information on the Forex Killer software, check out Forex Charting Software.

Reuters - Internet search leaders Yahoo and Google have given the Justice Department a revised version of their search advertising partnership in hopes of winning antitrust approval, the Wall Street Journal said on Monday.

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Currency Trading Education Tips

I wanted to take the time to share with you some of my currency trading education tips. This will help you learn the important parts of this business a lot better. Knowing the basics just isn't good enough. It's often the little things that make up the trader and make them a good trader. Too many people end up losing a fortune of money because they're just not prepared for the little things. I've been trading a long time now and I learned a lot about what it takes to be successful at this. I'm going to share a little of what I've learned during that time.

Everything you'll learn in a typical currency trading education course or book is for an ideal state. The "perfect" scenario. It doesn't exist and that makes a lot of the training completely idealistic. Most things will work on a regular calm day. I think an important skill to get down is identifying with things will get chaotic and volatile. I found the regular news was good enough for that. If you watch it, they'll talk about economic information, which is typically announced at a scheduled time. If there is an announcement coming up about the Federal Reserve interest rates at 2pm, that means the markets will be quiet up until that point and at 2pm it will go volatile. You'll want to avoid these times.

Having software is an important part of properly competing in this market. You're going to be going up against big firms and banks that have a staff to work the market 24hrs a day. You on the other hand are an individual. By having software it can automatically watch the market and make profitable trades at all hours of the day.

The 10 Minute Forex Wealth Builder is an excellent automated software tool that is unique because it only requires 10 minutes of your time to set it up for the day.

Learn more at the 10 Minute Forex Wealth Builder Review.

Reuters - British Prime Minister Gordon Brown said on Sunday he expected Saudi Arabia to pump money into the International Monetary Fund, the latest salvo in an ongoing effort to contain the global financial crisis that is also expected to bring a new round of rate cuts this week.

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Do You Want An Automatic Forex Trading System?

If you want an automatic Forex trading system that will help you to make more money with your trades then this article will help you. Every day 3 trillion dollars are traded on the currency market at any hour of the day, and if you want to cash in on every opportunity at any hour you should own a automatic trading system.

An automatic Forex trading system can be used without having much knowledge in currency trading because when you buy it you also get support and some guides to make your trades profitable. Also this kind of system will reduce the risks of losing money on your trades and will increase the chances of actually making money trading currencies.

Before buying such a system you should know what to look for :

-Try to find out if the system that you are interested in is developed by Forex trading experts and professionals in the field;

-Be sure that the system which you purchase has the possibility of testing the market and the system without risking any real money. This way you will be sure that if you risk money you can make a profit and also you will learn how to use the system, without losing money on mistakes that you could prevent if you knew the system better;

-A system that doesn't require a high start-up capital for trading. Most systems will require 1000$ but if you search enough you will find some which only require 500$ in order to start trading;

-The automatic system must have a money back guaranteed,so in case you don't like the results that you want with that system or software you will get back the money paid for it;

-The Forex trading system should also provide support for the buyers.

These are a few of the things which you should look for when searching an automatic Forex solution to make your currency trades.

If you want to read a review about the best forex trading software and get a free discount gift Click Here.

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Reuters - Trends in the U.S. economy are "deeply worrisome" at a time when damage from the credit crunch has outpaced the Federal Reserve's huge interest rate cuts, a top Fed policy-maker said on Thursday.

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Which Stocks to Invest In

How do you know which stocks to invest in? There are literally hundreds of thousands of stocks out there available on the stock market, just waiting for you to buy shares in them, with the promise of making you money if you hold onto their stock long enough.

Unless you have a particularly strong disposition to one particular industry, you might it find it next to impossible to find the perfect stock to invest in. How do you know which stock will earn you money? How do you know which stock will lose you money? It almost seems like gambling to invest in stocks, doesn't it?

You may have heard many stock analysts exhort you to "do your homework". Check a company's P/E (price to earnings) ratios and read their financial reports.

But even if you do that, you can still lose money, because you don't really know the nitty gritty details of the company's health and you certainly don't have the bigger picture of the company's overall performance since it first started trading publicly on the market.

Now, imagine having to do your "homework" for dozens and dozens of stocks, to find the one that is right for you. Even if you find one that you like, what if the price per share is too high? If you only have a limited budget with which to invest, and each share is too expensive, what is the point of investing if you can only buy one or two shares of a stock?

Perhaps the answer lies in the use of computers. There are computer programs out there that are programmed to analyze hundreds of thousands of stocks on the market and analyze them for their past performance, their daily trading volume, their highs and lows, their splits, and many other dimensions of data. Based on their analysis, they are able to perform millions of computations per second and identify which stocks have the highest statistical probability of surging in value in the upcoming time horizon.

Do you have what it takes to become a professional day trader?

Reuters - Volkswagen AG briefly became the world's largest company by market value on Tuesday as its share price almost doubled after Porsche Automobil Holding SE (PSHG_p.DE) set plans to raise its stake, triggering a squeeze for short-sellers.

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Day Trading Classes

Day trading classes are not just for newbie rookie investors. Seasoned veteran investors are not exempt from the need to constantly hone their skills, the need to learn more advanced investing techniques, tips , and strategies. In any endeavor there is always room for growth. After all, wouldn't you want to learn the secrets of how to improveyour return on investment or how to increase your profit margins?

In addition to the technical knowledge that they provide, day trading classes also help you to develop and reinforce the mental conditioning requisite for an investor's mindset. Investing isn't 100% technical. You also need to undergo a whole paradigm shift in terms of your attitude toward money, the ability to conquer your fears of investing, to learn to expand your comfort zone, to learn to understand how the market works. Surprisingly, a lot of what holds us back from success is our belief in ourselves and our ability to be successful. That is why day trading classes have one other redeeming quality: They provide mentorship.

If you want to become a superstar investor, you need to learn from the superstars. Believe me, the mentorship of an experienced investor is worth its weight in gold. Day trading classes literally pay for themselves many times over when you apply what you learn. Experienced day traders who have blazed the trail to financial success are an invaluable resource to help you learn to invest properly, to help you learn from their mistakes so that you don't make the same mistakes.

Do you have what it takes to become a professional day trader?

Reuters - Sales of newly constructed U.S. single-family homes rose in September and inventories shrank as builders slashed prices to their lowest level in four years to move property as a financial crisis deepens.

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Day Trading - What's it Really All About? Choices That Lead to Stellar Success and Unlimited Wealth

There's an old Buddhist saying, As within, So without.

You may think its all about the charts, the fundamentals, your system and the unprecedented world economy, but haven't there been times when you sensed there was something more to it?

Me too. Being tuned in to all that is what separates the super traders from the guys who are second mortgaging their home hoping to make a come back.

Aside from the obvious, not putting too great a percentage of your overall nugget in any one trade, how does one keep the emotional element out of decision-making? Is this emotional element the same thing as your gut feeling? It's easy to confuse the two and it's well worth learning to discern the difference.

Keeping notes is critical, but not just about the numbers. Taking time to notice your own patterns is invaluable in the long run if there is to be a long run.

Over-confidence can be just as deadly as under-confidence. And playing when you really don't have the juice to, but feel like you need to can also have its consequences,

There really aren't a lot of women out there trading, not relatively, so for a long time I thought it was only because I had focused on my inner work for so long that I was naturally using my trades as way of flushing out my deeper issues---resistance to having more than enough or the compulsion to keep trading when I had already done well enough for the time being.

But then I attended one of those weekend workshops with the best of the best. And on the very first day my trading coach said, the market is mirror---a stark mirror.

That, to me, was worth the price of admission!

At http://www.stressfreepersonalfinance.com we specialize in inspiring tools to set you financially free. Plus there's free articles and audio to continually inspire you on your path towards financial freedom, radiant health and healthy, fulfilling relationships, because when you have enough money you can easily have all that!

While you're there be sure to download the FREE special report, "The 7 Affirmations That Took Me From $10,000/Year to $10,000/Month and the Powerful Techniques I Used to Synchronize Them with My Body & Mind" when you sign up for our free inspirational newsletter, Pathway2Abundance @ http://www.Pathway2Abundance.com

Reuters - British Prime Minister Gordon Brown has hinted at the possibility that lower inflation thanks to falling oil prices could prompt central banks around the world to make more joint interest rate cuts, the BBC reported.

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Trading For A Living - Is It Easy? Hardly!

Trading for a living, what could be a more alluring profession? The Forbes list of the 500 wealthiest people in the world is littered with names of people who have amassed huge fortunes in the world of Wall Street. Warren Buffett, George Soros, Paul Tudor Jones, James Simons, Louis Bacon, and Eddie Lampert, just to name a few. In 2007, to make the list of 100 top earners on Wall Street, you needed an income of at least $75 million! The top earners made over $1 billion!

With that in mind, it is no wonder that new traders set out to make their fortunes in the financial markets. After all, they are bombarded with advertisements and infomercials describing the next great thing in the world of trading. Starting with accounts as small as just a few thousand dollars, these traders hope to hit it big, and they seek to find that holy grail of trading systems that will lead them to the promised land of Wall Street riches.

I was one of those traders almost 15 years ago. At that time, after subscribing to a couple stock newsletters, I was bombarded with other newsletter writers, telling me they new the way to financial fortune. One service got me interested in commodity trading by sending me some spread trading strategies. These proved to be outdated and ineffective, since markets change over time. I then learned a popular trend following system, had some initial success, and then was hooked on trading. Little did I know that trading is a lot more difficult than I realized.

What I didn't realize is that the competition in the financial markets is fierce. Wall Street is littered with MBA's and PHD's from the Ivy League schools. These people are groomed for Wall Street careers through summer internships at the big investment houses such as Goldman Sachs, Merrill Lynch, or even some big hedge funds. Some of these hedge funds not only hire traders, but top scientific minds from disciplines such as physics, chemistry and engineering.

In 1998 I had the opportunity to work for a hedge fund and commodity trading firm as an execution trader dealing with Asian and European markets. This firm was run by a trader who hired computer programmers that could test and research all of his ideas and then program them into automated trading models. The only orders I needed to execute were the more sizable orders so we could avoid the slippage caused by large stop orders. There were other traders and research staff that all had a hand in developing new models for the system. In spite of this, that firm eventually nearly failed and is now just a shell of itself.

Around that same time, I learned that a friend of mine from college worked for one of the biggest offshore commodity funds, and one of the most successful. He indicated that firm also had a significant number of research personnel conducting research on new trading models. Their system was also heavily automated, they had their own research platform for developing these new models.

Also in the late 1990's I was introduced to Jaffray Woodriff of Quantitative Investment Management in Charlottesville, Virginia. We had a mutual friend that was a fraternity brother of mine at William and Mary. The first time I spoke with Jaffray, I realized that he was far more intelligent than I. He was also a computer programmer and learned how to test and develop his own trading models on his own software. He clearly had a passion for the markets and I could just tell this guy was going to make it big. At that time, he had a small trading business, but ran into some initial problems. So, he took off for Wall Street to work at an investment bank. He had some good success on the trading desk there and a few years ago, decided to start up his current business with a partner. That hedge fund now manages over $3 billion!

Now that you know how stiff the competition is, you may think twice about trying your hand at trading for a living. Can it be done? Of course it can. However, the statistics suggest that traders who start out with less than $10,000 trading futures or in the Forex currency markets will fail 90% of the time. The main reason for this is the lack of capital, but it can also be attributed to not having a coherent plan for trading.

With this in mind, new traders should follow the following process before attempting to stake their claim in the financial markets:

1. Determine the absolute highest amount of money you are willing to lose in the markets, money that if lost, will not affect your standard of living.

2. Determine what you seek to achieve in this business. What are your short term goals and long term goals?

3. Determine your monthly bills and make sure those are covered by ANOTHER source of income besides trading.

4. Figure out what type of trading suits your personality best. Are you able to withstand significant losses while waiting for significant trends to develop? Do you need to be right more often than you are wrong? Do you want to take quick small profits or wait for big trades that occur over longer periods of time? Can you pay attention to the markets with no distraction throughout the day, or do you have a real day job that requires most of your attention? Are you more interested in technical analysis or fundamental analysis? Do you like mechanical trading systems or do you like to go with your gut? When you answer these questions you can figure out whether you should focus on longer term stock trading, daytrading, short term swing trading, options trading, etc.

5. Once you figure out the trading style that suits you best, then you must conduct a good bit of research on the markets to develop your trading strategies. I recommend backtesting strategies on historical data with a program such as TradeStation. If you are able to program your own software for developing trading models, that is even better. Do not fall into the trap of just looking at the bottom line results of the models that you test. You must see how they perform on a day-to-day and month-to-month basis so that you will have an idea of the losses you can expect when trading for real.

6. Do not start trading until you are absolutely confident in the strategies you have developed. One big mistake a lot of traders make is not sticking to their plan. As soon they experience a drawdown, they give up on their strategy and try and trade a new one. As soon as they start the new one, the old one starts working. This is one reason I recommend against the purchase of black box trading systems without any knowledge of how these systems select their trades.

7. After you start trading, maintain records on how your trading. Be sure to write down the reason for initiating your trade, and the reason you exit. If you deviate from your strategy, state why, and how that deviant trade performed. In this way you will be able to keep track of what works for you and what does not.

Ultimately, you must approach trading like you would any other business or profession. It requires research, education and knowledge to succeed in this business. Many people fail, so do not assume that because you have some smarts that you can be successful. Successful trading requires careful planning, common sense, intestinal fortitude, and a little luck!

Scott Cole
http://www.kungfutrader.com

Reuters - Weak Japanese exports and poor corporate earnings provided more evidence of the economic damage wrought by the global financial crisis, knocking Asian shares to four-year lows on Thursday.

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The Myth of Automated Day Trading Systems

There is a widespread rumor in the financial community that successful day trading can be manually programmed and automated to produce vast profits for minimal work and input on the part of traders, providing a regular and consistent income by simply setting up a system, clicking a button to turn it on, and walking away.

This is NOT true.

I myself am just one of the many victims of this 'automated trading system' myth. In 1996, I strongly believed that a trading system like this was possible, and I wasted four years of my life trying to automate and computerize trading.

I programmed dozen of strategies, I used TradeStation, MetaStock, and OmniTrader, and I read countless books and articles on systems trading. I researched automated trading solutions and talked endlessly with other traders, always trying to find the edge I was missing. I stayed on this path for four years, only to realize in the end that I was chasing the nonexistent Holy Grail of trading.

Simply put, finding success with automated day trading systems is impossible.

Think about it for a second:

If day trading could be automated, why would Meryll Lynch, Goldman Sachs, and other large financial companies spend millions of dollars every year in salaries for traders? If anyone should have a handle on systems trading, it should be the big-shots in the industry.

If day trading could be automated, we would soon have computers trading against computers, and trading would cease to exist since there would be only ONE price. This is equivalent to chess: if you have computers playing computers, then there is never an actual winner.

Stock prices rise and fall based on human emotions and human perceptions. It's not economic reports that move the market - it's the reactions of traders TO a report that move the market.
Again, it took me four years to come to this conclusion. It took me four years to realize that there's only one thing that can give you an edge in the market: experience.

Now, don't get me wrong. You need rules. You need a strategy. You need discipline. Automated trading systems can provide you with all of these things, or at least simulate these things. But there's another key ingredient to success that automated trading systems will never be able to account for, and that's experience.

Experience is essential in everything you do, whether you're a toddler trying to walk, a child learning to read and write, a college student studying a foreign language, a professional starting a new job, or an athlete mastering another skill.

When it comes to trading, you need a trading strategy, you need rules on when to enter and exit a trade, and you need to establish how much money you are willing to risk. But once you've got the plan, you need to execute it. And only experience will help you there.

It's like approaching a traffic light that just turned yellow - sometimes you brake at the light and sometimes you decide to go for it. But how do you make that decision? Obviously you don't make the same decision EVERY time you encounter a yellow light. Why? Because no situation is exactly the same as the ones before. You rely on your experience of former situations to lead you to the right decision in the current situation.

The same is true in trading - no trade is exactly like the trades before or after. When it comes to trading success, you need two essential components: a plan AND experience.

It's not a problem to establish a plan, but the only way to gain experience is by actually trading, even if it's just on paper. I like the saying, "Practice makes a master," and it works really well here because it applies in trading, too.

So don't make my mistake. Instead of spending years trying to pinpoint the Holy Grail of automated trading which doesn't exist, sit down and focus on gaining the experience you need to find TRUE success. Invest in trading education. Study your trading charts. Practice trading. Learn through trial and error. In the long run, gaining the confidence and experience you need to be successful will be far more rewarding than a fruitless search for automated trading systems.

Markus Heitkoetter is a 19 year veteran of the markets and the CEO of Rockwell Trading. For more free information and tips and trick how to make consistent profits with online trading, visit his website http://www.rockwelltrading.com

Reuters - Asian stocks slumped to their lowest since December 2004 on Wednesday as poor U.S. corporate results and falling commodity prices fanned worries of a protracted global economic slowdown.

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Forex Trading Tool - The Three Trendline Strategy

Newcomers to trading the foreign exchange currency markets do well to accept the observation of experienced seasoned traders that the idea of a perfect Forex trading tool is an illusion.

While no perfect Forex trading tool exists, using a combination of tools to identify a converging of favorable market factors can yield a majority of high probability trades over a period of time.

Trendlines certainly deserve close consideration and many successful traders add them to their collection of Forex trading tools.

It should be stated at the outset that trendlines by themselves do not provide a strong enough signal to warrant making a trade. They are a useful addition and provide confirmation of signals from other tools. (See resource box for a visual example of using a trendline as a trade entry point)

The Three Trendline Strategy

Consider these three main types of trendlines you need to know and use if you are going to make any sense of trendlines.

Trendlines are lines drawn across significant lows in an uptrend, and significant highs in a downtrend. The more candles to the left and right of the lowest candle in an uptrend or the highest candle in a downtrend make the low or high point more significant.

1. Short Term Trendlines

Draw these lines across the most recent two lows (for an uptrend) or highs (for a downtrend). These are best observed on a smaller time frame such as a 15 minute or 30 minute chart.

2. Medium Term Trendlines

These are best observed on a higher time frame such as a 60 minute chart. Again connect the nearest significant low to current price action to the previous significant low in an uptrend or the nearest significant high to current price action to the previous significant high in a downtrend.

3. Long Term Trendlines

Use higher time frames such as the 4 hour chart or the daily chart to draw long term trendlines using the same method described for Medium Term Trendlines.

The long term trendline can be a powerful Forex trading tool. Keep in mind that the daily chart is used prominently by traders of big institutions. Such traders probably do not engage in small moves on an intra day level. They are more concerned about taking a position on a currency pair.

The daily chart is consulted by them when making decisions. So by drawing a trendline on a daily chart you can present to yourself graphically just where price is and where it is likely to either possibly bounce and retrace or continue with the current momentum.

Using Trendlines As An Effective Forex Trading Tool

Trendlines on the short time frame merely give you a defined picture of current price action. These trendlines are broken often during the course of a day. It is probably not a good idea to enter trades based on trendline breaks from a small time frame chart. Their main use is to give you a clear, instantly recognizable graphical representation of current price behavior.

However, here is where trendlines can prove to be a useful Forex trading tool:

If you notice price coming back to test a trendline on the higher time frames, (anything over 30 minutes), look at other factors. For example:

• Draw in horizontal lines to mark key support and resistance using previous highs and lows.
• Draw Fibonacci retracement and extension levels.
• Calculate the daily pivot points and put them on your chart.
• Have the 200 EMA (Exponential Moving Average) shown on your charts.

Now, if price were to bounce or touch the trendline on the medium to higher time frames, that is, on the 60 minute, 4 hour, or even daily charts, does that price point also coincide with or match up with one of the other indicators mentioned above?

If for example the trendline intersects with a pivot point which is also a Fibonacci 50% or 62% retracement, or 127% or 162% extension, then you have a convergence of factors. If you entered a trade at that point there is a high probability you will catch at least 10 to 20 pips on the first move on the bounce.

Looking for such opportunities takes patience. They don't come up so often but when they do you can be ALMOST guaranteed a successful trade if you keep your first profit target to a reasonable level.

If trading multiple lots, then be sure to take your first profit at the 10 to 20 pip level and let one or two other lots run if price continues in the direction you anticipate. At the same time of course you would move up your stop to break even point after taking first profit so your trade can now run without risk.

Employ trendlines as a Forex trading tool with caution and discretion. Covering your charts with every trendline possible will only result in confusion and blurry analysis.

One or two trendlines at key or significant swing points, (price highs and lows) can give you a defined, clear picture of price action, which, when coupled with your other Forex trading tools, can result in profitable trades.

See how to use trendlines to get an optimum trade entry point:

http://www.vitalstop.com/Forex/trendline.html

How do you trade the non-farm payroll report? Read this:

http://www.vitalstop.com/Forex/Advisor/forex-strategy-non-farm-payroll.htm

For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:

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Swing Trading For Beginners

The swing trader is not looking to turn a profit in a day. He will hold a stock anywhere from three days to three or four weeks.

This trading technique is most suitable for people who do not have the time to dedicate to sitting in front of a computer to monitor the markets when they are open. Many traders who are novices find swing trading to be the style that they are best suited for.

Swing traders tend to pick stocks that are traded on the big three exchanges which are the NYSE, AMEX and NASDAQ. The reason that they stick with stocks traded on these markets is because they are the most actively traded markets so these stocks have the greatest chance of going very high or low in a given day. This means that the swing traders wont have to hold onto stocks too long before making a profit.

Swing traders prefer to trade when the market is not in full bull market or in full bear market. Swing traders are poised to make the most profits when the market is relatively static. The swing traders will make money with short-term movements in the market.

As a swing trader, you will not make a lot of money with one trade. The profits will be aggregated from making multiple trades over a period of time. Swing traders will only buy and sell once the stock has reached its baseline, so that they could make their trade at the best possible moment to get the most bang for their buck.

A swing trader will attempt to earn a 10-15% gain on his investment, which makes it a viable strategy for beginners, but would also have enough profit potential to interest intermediate traders too. To make the most gains, swing traders try to sell their stocks as close to the upper or lower margins without jeopardizing their chance at missing the large gains. If a swing trader waits too long he runs the risk of the market turning around and hell wind up losing money instead of gaining.

With practice, a swing trader can learn to read the market indicators and avoid this from happening often.

The great thing about swing trading is that beginners find out pretty quickly whether their decisions to buy or sell have paid off, which can be an enormous incentive to continue. Swing trading isnt as quick as day trading to see a return on your investment, but it also doesnt require the attention to market conditions and details that is necessary for day trading to be successful.

In addition, swing trading is also a lot less stressful than day trading. Day traders often find themselves stressing over all of the stock trades they have to make in a day and hope that they have made the correct decision.

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Forex Trading Training

The reality is that there is a lot that needs to be learned if someone wants to truly be a successful forex trader. For example, reliable system, discipline, and knowledge of the market are some of the things that are needed for someone to truly succeed trading in this market.

However there is hope, for there are many different forex training courses on different levels that people can take. The great thing about these programs is that each student can achieve their personal goals by creating a system based on your risk profile, trading style and personality.

The forex courses available will help provide you with all the tools, experience and knowledge that will help you become a consistent trader. One thing you have to know, is that this market takes great effort and commitment. If you are an individual that is serious about trading in this market, the effort that you put in will be well worth the outcome.

If you are just getting started and do not have a lot of information, there is a free course that will give you all the information you need to understand the forex markets and technical indicators from SF coaching. It is a course that is for traders looking for individual advice on the basics or on their strategy in order to help them achieve better results.

When you have completed the basic course and you are an intermediate or advanced trader than the SF advanced is what you should look into. In this program you will find information on trading strategies, risk and position management strategies, money management strategies, psychology and other things that are beneficial. One additional benefit is that it includes one on one coaching through their online platform.

Finally SF coaching is for those corporations who want a solution to hedge their currency exposure. You can do this through the forex market. As you can see, it does not matter if you are a beginner, advanced trader or a corporation there is a training program that will help you succeed.

If you need more free information on forex trading training, please visit our blog:http://www.forextrading411.info. Whilst you are there sign up for our FREE 5 day forex trading ecourse.

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Smart Ways To Learn Currency Trading

I'm presenting to you today smart ways to learn currency trading. This is a very powerful business opportunity for individuals everywhere. It gives people the chance to build their own business, from home, with very little investment.

If there is one thing to pay considerable attention to, it would be the Federal Reserve. This is the central bank in the United States. It has one job, controlling the supply of money. Usually news anchors will say there job is to control inflation, but that's typically the same thing. Since we're talking about an entity that is controlling the supply of money, obviously supply and demand is changed, so the price should change. That's very important for the currency trader. The Federal Reserve has two ways to change the supply: raise interest rates, cut interest rates. A raise means it is harder for people to get loans, so this means supply goes down and money goes up. A cut means it is easier for people to get loans, so the supply goes up and money goes down.

The next piece of advice I can give you is to try to view things from a simple point of view. A lot of times people will build up stuff in their head, making everything look more complicated than it actually is. This isn't rocket science. You're not a scientist developing a huge rocket to goto the moon. You're trading currency. It's not complicated.

Lastly, you'll want to get your hands on Forex Killer trading software. It acts as a tool that analyzes currency graphs for you. It will find the profitable tends and tell you where to buy. This makes things easier and it's like having a mentor telling you where to trade.

The automated software of Forex Killer will give you an immediate edge in the market. Make trades that work for your profit line. For more information on the Forex Killer software, check out Forex Charting Software.

AP - In the midst of historic volatility on Wall Street there is a continuing trend of blacks saving and investing less than whites, according to a survey released Wednesday. The difference is attributed to various social and cultural reasons such as getting less exposure to personal finance concepts and advice.

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Spot Currency Trading - A Brief Guide to Forex

In today's world, Foreign Exchange Trading which is also known as Forex has evolved into a major online industry. When done correctly, trading can be very profitable for not just the big companies but the individual working from home.

This is one of the good things about the internet as it has levelled the playing field between big companies and small traders.

As the biggest financial market, the FX (Forex) is the best market to make trades. Everyday, trades to the value of over 2 trillion dollars take place. If you compare that to another big market known as the New York Stock Exchange, the value of trades on that market is 25 billion dollars every day. This is all big bucks stuff which attract many large multi national companies, banks and governments.

Money is traded on the Forex and usually involves a simultaneous flow of buying and selling of different currencies. These currencies are handled by brokers.

If you are active in purchasing currency, what happens is that you actually invest in the economy of a certain country. For instance, if you by UK pounds, this will mean that you are really buying a piece of the UK economy. The current state of that countries economy is what sets the value for the currency and any fluctuations.

In the beginning, the idea of being able to trade in the Forex was meant to be for the large banks and companies. It was not intended for the likes of the little people like me. You needed many millions to get involved and that was beyond the scope of many normal people.

But times have now changed and in today's world, just about anyone with a little money can trade through a broker. All the trading can be done through the internet. All that is required is that you sign up with a reputable trading firm and moniter the market online.

Trade continues 24 hours a day through the three main trading centers in the United Kingdom, Japan and USA.

There are a number of benefits when it comes to trading online and for most cases, it is usually a very good way to trade. As long as you have a computer with good internet access, you can trade with the best of them.

With a little research and due diligence, there is no reason why you can not take part in the Forex and trade online.

There is a lot of trading software, trading courses and trading systems, all claiming to be the best. On our website, we have independent reports of the better ones. See if we can help you over at Stock Market Software.

Reuters - The Nikkei average soared more than 14 percent on Tuesday, the biggest one-day gain in its 58-year history, after governments around the world pledged to support struggling banks and restore confidence in the financial system.

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Facts of Day Trading

Are you thinking of entering the fast-paced world of day trading? Arm yourselves with the information from this fact sheet on day trading.

What is day trading?

Day trading is an investment tactic that does online daily stock trading with a relatively short investment. Those who do day trading usually buy and sell securities during the same market day and, as a general rule, do not hold stocks overnight. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations.

How is day trading different from swing trading?

Day trading relatively holds the stock for only the day. After the stock market closes, a day trader has no stock in his hands. Swing trading holds a stock for at least a few days, waiting out for the best price before dumping it back to the market. Day trading is much more stressful and requires guts and a keen business sense. Once you get good at day trading, you can earn up to $50,000 from your initial investment.

How much capital would you need for day trading?

You need an investment equivalent to buy 1000 stocks. That is roughly around $20,000. Because the chances are small that you will find a marketable stock with a price of under $20, this is enough to get your day trading underway. However, you must remember that this is a 100% risk capital so do not worry too much if you lose this amount very early.

What are the general rules for day trading?

• Always trade with the trend.
• Cut losses short
• Never get emotionally involved in your trades.

What are the most suitable stocks to trade for day trading?

It is advisable to trade high volume stocks. Go with the trend with the popular stocks available. It'll be easier for you to sell those stocks at the end of the day trading.

How does a usual day trading transaction occur?

For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes.

Most people who deal with day trading spend all of their time in front of the computer, watching the slightest change in the stock price. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. This can be a very stressful lifestyle as a mere second could mean an increase of half the stock price and missing that moment for any person engaging in day trading could mean a loss on his investment.

Day trading is not a get rich scheme. It is serious business where you could lose everything within minutes because of wrong information. Before jumping into day trading, remember to do your homework first. Go to seminars on day trading, use simulations if possible and practice reading market indicators. To be a successful day trader, don't just need luck. Knowledge and experience counts. Welcome to the world of stock markets and investments!

About The Author
Michael Sanford For More Information and articles about day trading check out http://www.forex-trading-center.info

Reuters - Stock index futures were sharply higher on Monday, pointing to a rally on Wall Street as a flurry of moves by governments to restore confidence in the global financial system spurred a rebound in stocks worldwide.

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The Number One Forex Trading Strategy

The Number One Forex Trading Strategy is .. actually a combination of strategies. The truth is that there a number of ways to really do well on a consistent basis in the Forex market. instead of loading you up with some non-existent "holy grail," I would rather provide you with real, proven and reliable Forex trading strategy. Here is the plan:

First, get your trading head on straight. You would be shocked at how many traders come to the currency market with all sorts of distractions and issues in their heads. How on earth can you make a wise decision in this frame of mind. It is actually, a good idea to review some monetary current events and data along with some basic trading principles about a half-hour prior to actually trading. I know this sounds monotonous but trust me, it is what the winners do.

Second, use your technical analysis tools properly. Trade on the Forex market with proven technical indicators. I like to start off with the 200 day moving average. This is the standard by which the "big money" judges the worthiness or timeliness of currencies for trading against another. It is obviously not the end- all- be- all but it is a great place to start. I then move on to the indicators that show me if a currency is severely over bought or over sold. If this is the case and the currency lines up with the 200 day moving average then I start to become very interested. Here is an example: The dollar is trading above the 200 day moving average. It is severely over sold. Now I am very interested in confirming this. How?

Third, use a reliable Forex trading software program with proven results and a positive reputation. I need clear and reliable signals from my software program and if these line up with the aforementioned indicators than I am feeling confident and ready to gain some significant pips. By the way, I have provided a link below for an objective review of the three leading software programs, I think it will help.

This method I just laid out is not pie-in-the-sky but it is proven and will more than likely make a winner out of you on the Forex market.

Get an Objective Review of the Most Popular Forex Trading Software Programs. Number One Forex Trading Strategy is the place to visit.

See What Forex Trading Software REALLY Works! forex-trading-system-review.com is the place to visit.

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Finding The Best Broker For Currency Trading

If you are trying to find the best broker for currency trading you will want to find the following:

• Personal account management
• Live training, one-on-one help
• Rates, Limits and Stop-Loss
• No software download
• Instant Deposit with Credit Card
• Margin trading with small start up (US$50 - US$200)
• Freeze the Rate you see and trade Forex online
• No hidden costs
• Security and Safety
• Competitive Spreads
• Live Real-Time streaming quotes

This is just an abbreviated list of the things that I look for in a trading platform with a good broker for currency trading. Let me briefly touch on each component.

Personal account management - Ask these questions: Do you have your own account service manager working closely with you? Are the dealing room services are offered to you by expert Forex dealers? Can you speak with them over the phone, over e-mail, or over a chat line.

Live training, one-on-one help - Your broker for currency trading should offer background information for the Forex market, a guided-tour, seminars, one-on-one training, chat, telephone support, forex assistance tools, etc ... If you are using their services then they should provide you with.

Rates, Limits and Stop-Loss - Your broker for currency trading should execute your set rates, including Stop-Loss and Take-Profit rates, by using the latest technologies. Remember, you should not lose more than your Stop-Loss amount at risk, as defined by you.

No software download - I don't know about you but I prefer not to have to use a program that I have to download. I want to start trading immediately. Without a software download required you may login to your account and trade anytime, from anywhere. I like that.

Instant deposit with credit card - It is always nice to have a broker with currency trading that which allows you to fund your account with your credit card, so you can start trading immediately, regardless of banking work days or
hours.

Margin trading with small start up (US$50 - US$200) - A lot of platforms advertise that they have "DEMO accounts" available. That may be helpful to a new trader but far more beneficial is a system that enables you to trade with small amounts as well as large. I would look for a platform that you can start using even with an amount as little as $50! No bank would ever offer you such an opportunity! When trading, you may deposit the sum that suits you, or fits the amount that you are willing to risk. Starting to trade with such small amounts is the best way to get acquainted with the Forex marketplace. Much better than operating "DEMO" accounts, where you are not really risking your own money. After getting familiar with such a system, you may increase your level and scope of activity, as you find fit.

Freeze the Rate you see and trade Forex online - Try to find broker for currency trading that gives you the possibility to Freeze the Buy or the Sell rate that you see for a few seconds, regardless of rate movements. That means that the rate you see and freeze is the rate you get (if you decide to make the deal). During those "FREEZE" seconds, the Forex market could change, however - you are guaranteed to use the rate you have frozen, in case you wish to materialize it into a deal. It will b hard to find this component but seek and you will find it out there.

No hidden costs - This is a big one for me. I do not like being duped. Just be straight forward with me, that is all I ask. Yet, this is very hard to find. I want transparency when it comes to spreads and commissions. A really good broker in currency trading will be transparent.

Security and Safety - Make sure that whatever happens: failure, disaster, etc. your transactions are intact, secure, and backed up.

Competitive Spreads - This speaks for itself, "How many "pips" do they offer as their spread?"

Live Real-Time streaming quotes This is another big one for me. I do not know why a broker/platform would not have this benefit but many do not.

I hope this information helps, I have tried to be as thorough as possible. When it comes to finding the best broker/platform, I have included a link below. it is the best that I have come across. Good luck.

Make a Killing Trading Forex! Forex Killer is the place to visit.

See what a Forex Trading Robot can do for you! Forex Robot is a must.

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Trading For A Living - Is It Easy? Hardly!

Trading for a living, what could be a more alluring profession? The Forbes list of the 500 wealthiest people in the world is littered with names of people who have amassed huge fortunes in the world of Wall Street. Warren Buffett, George Soros, Paul Tudor Jones, James Simons, Louis Bacon, and Eddie Lampert, just to name a few. In 2007, to make the list of 100 top earners on Wall Street, you needed an income of at least $75 million! The top earners made over $1 billion!

With that in mind, it is no wonder that new traders set out to make their fortunes in the financial markets. After all, they are bombarded with advertisements and infomercials describing the next great thing in the world of trading. Starting with accounts as small as just a few thousand dollars, these traders hope to hit it big, and they seek to find that holy grail of trading systems that will lead them to the promised land of Wall Street riches.

I was one of those traders almost 15 years ago. At that time, after subscribing to a couple stock newsletters, I was bombarded with other newsletter writers, telling me they new the way to financial fortune. One service got me interested in commodity trading by sending me some spread trading strategies. These proved to be outdated and ineffective, since markets change over time. I then learned a popular trend following system, had some initial success, and then was hooked on trading. Little did I know that trading is a lot more difficult than I realized.

What I didn't realize is that the competition in the financial markets is fierce. Wall Street is littered with MBA's and PHD's from the Ivy League schools. These people are groomed for Wall Street careers through summer internships at the big investment houses such as Goldman Sachs, Merrill Lynch, or even some big hedge funds. Some of these hedge funds not only hire traders, but top scientific minds from disciplines such as physics, chemistry and engineering.

In 1998 I had the opportunity to work for a hedge fund and commodity trading firm as an execution trader dealing with Asian and European markets. This firm was run by a trader who hired computer programmers that could test and research all of his ideas and then program them into automated trading models. The only orders I needed to execute were the more sizable orders so we could avoid the slippage caused by large stop orders. There were other traders and research staff that all had a hand in developing new models for the system. In spite of this, that firm eventually nearly failed and is now just a shell of itself.

Around that same time, I learned that a friend of mine from college worked for one of the biggest offshore commodity funds, and one of the most successful. He indicated that firm also had a significant number of research personnel conducting research on new trading models. Their system was also heavily automated, they had their own research platform for developing these new models.

Also in the late 1990's I was introduced to Jaffray Woodriff of Quantitative Investment Management in Charlottesville, Virginia. We had a mutual friend that was a fraternity brother of mine at William and Mary. The first time I spoke with Jaffray, I realized that he was far more intelligent than I. He was also a computer programmer and learned how to test and develop his own trading models on his own software. He clearly had a passion for the markets and I could just tell this guy was going to make it big. At that time, he had a small trading business, but ran into some initial problems. So, he took off for Wall Street to work at an investment bank. He had some good success on the trading desk there and a few years ago, decided to start up his current business with a partner. That hedge fund now manages over $3 billion!

Now that you know how stiff the competition is, you may think twice about trying your hand at trading for a living. Can it be done? Of course it can. However, the statistics suggest that traders who start out with less than $10,000 trading futures or in the Forex currency markets will fail 90% of the time. The main reason for this is the lack of capital, but it can also be attributed to not having a coherent plan for trading.

With this in mind, new traders should follow the following process before attempting to stake their claim in the financial markets:

1. Determine the absolute highest amount of money you are willing to lose in the markets, money that if lost, will not affect your standard of living.

2. Determine what you seek to achieve in this business. What are your short term goals and long term goals?

3. Determine your monthly bills and make sure those are covered by ANOTHER source of income besides trading.

4. Figure out what type of trading suits your personality best. Are you able to withstand significant losses while waiting for significant trends to develop? Do you need to be right more often than you are wrong? Do you want to take quick small profits or wait for big trades that occur over longer periods of time? Can you pay attention to the markets with no distraction throughout the day, or do you have a real day job that requires most of your attention? Are you more interested in technical analysis or fundamental analysis? Do you like mechanical trading systems or do you like to go with your gut? When you answer these questions you can figure out whether you should focus on longer term stock trading, daytrading, short term swing trading, options trading, etc.

5. Once you figure out the trading style that suits you best, then you must conduct a good bit of research on the markets to develop your trading strategies. I recommend backtesting strategies on historical data with a program such as TradeStation. If you are able to program your own software for developing trading models, that is even better. Do not fall into the trap of just looking at the bottom line results of the models that you test. You must see how they perform on a day-to-day and month-to-month basis so that you will have an idea of the losses you can expect when trading for real.

6. Do not start trading until you are absolutely confident in the strategies you have developed. One big mistake a lot of traders make is not sticking to their plan. As soon they experience a drawdown, they give up on their strategy and try and trade a new one. As soon as they start the new one, the old one starts working. This is one reason I recommend against the purchase of black box trading systems without any knowledge of how these systems select their trades.

7. After you start trading, maintain records on how your trading. Be sure to write down the reason for initiating your trade, and the reason you exit. If you deviate from your strategy, state why, and how that deviant trade performed. In this way you will be able to keep track of what works for you and what does not.

Ultimately, you must approach trading like you would any other business or profession. It requires research, education and knowledge to succeed in this business. Many people fail, so do not assume that because you have some smarts that you can be successful. Successful trading requires careful planning, common sense, intestinal fortitude, and a little luck!

Scott Cole
http://www.kungfutrader.com

Reuters - The U.S. Federal Reserve is brokering discussions between Wells Fargo & Co and Citigroup Inc over which of the banks will buy Wachovia Corp's assets, people familiar with the matter said on Sunday.

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Five Simple Steps That Will Get You Started Trading Online Forex

Before you start the business of online currency trading or forex trading it is important that you have three basic things needed to trade and profit from online forex. These three things are your mental Box which is your brain and this can be provided by you. However, there is need for continuous and constant training to develop your mental box. The other two things needed to trade forex are computer preferably Laptop and table and chair, what a very easy business you will say.

Having got all these three things needed, the next thing you have to do is to open an account with a broker. To open an account with a broker, you need to follow five basic steps. The first step is carrying out what we call due diligent and intelligent search of reliable brokers. There is need for you to carry out this search on the forex brokers so as to get reliable ones as there are many scammers out there calling themselves authentic forex brokers.

The next step after you have selected the broker is to open an account with the broker. It is advisable you open a demo account; this is the same thing as practice account to test your strategy and develop the rquired skills before you finally open a live account. Before you decide to open a real account you must also consider the account type whether it is a mini account or a standard account. If you are still young trading forex you will be classify as being amateur and you are advised to open mini or micro account. The moment you notice improvement in your trading system you are advised to open the standard account and begin to trade like pros.

The third step which relates to the second step is registration. Proper registration should be done with the right broker. Get your Username and register your password which will prevent outsiders from tampering with your business, I mean your forex trading platform.

The fourth step has to do with the funding of your account which actually activate your account with the chosen brokers. Figure out how to fund your account from your broker as there are various ways of funding the account accepted by individual forex brokers. You must know that some forex brokers accept credit and debit card. Some equally accept e-gold and other types of e-currencies. Apart from these two means of payment, some brokers also accept bank transfer. This means if you don't have bank account you will need to open domiciliary account with your bank if your broker doesn't leave in your country. What is essential here is that you should visit your broker's website and make a thorough tour of their site to alert yourself of the rules and regulations as well as the guidelines of the brokers.

The last step that will get your investment running is to start trading for real by following the strategy you have developed while demo- trading. I mean while you were doing practice with the trader platform. It is important at this junction that I advise you on the essentiality of putting stop loss to your trading. This will save you when the market trend suddenly turns against you.

Morufu Giwa is an Internet Marketer and experienced Forex Trader.

http://www.Pip4wealth.blogspot.com

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Pivot Point Trading- 7 Guidelines For Success

What do we mean by pivot point trading? It simply means that Forex traders take into account pivot points calculated from the previous day's trading range and use them as reference points to identify support and resistance levels.

Taking the high, low, close and open values of the previous day's price action, strategic levels can be identified which may or may not have an influence on price action. Pivot point trading puts emphasis on these levels, and uses them to guide entry and exit points for trades.

However, as with any technical indicator, there are limitations and pivot point trading, to be high probability, needs to stay within certain parameters. The following 7 guidelines can help pivot point trading be more profitable:

No. 1

Pivot points should not be used as a standalone indicator. Do not enter or exit trades purely on the basis of pivot points. Use them in conjunction with other indicators such as candle patterns, Fibonacci levels, MACD, and moving averages to identify and confirm key levels of support and resistance which may provide trading opportunities.

No. 2

While some traders living in various parts of the world may calculate their pivot points according to the time zone in which they live, a fairly safe standard for calculating the levels of pivot point trading is to use GMT (Greenwich Meantime).

Midnight GMT is a very quiet time in the market with very little volatility and provides a good opportunity to calculate more accurate pivot levels going from midnight GMT to midnight GMT the following day.

No. 3

It is good to understand what is going on behind the scenes when it comes to pivot point trading. Rather than just staring at candles on a chart, understand what they actually represent.

Thousands of traders around the world, some working for large institutions and handling millions or even billions of dollars worth of currency, are taking positions according to previously established highs and lows in the market.

Pivot points draw attention to these key levels which will often be strongly defended by traders who have a lot at stake. This is the reason pivot point trading can be so successful, once a trader understands underlying reasons for price action.

No. 4

It is good to calculate mid levels in addition to the S1, S2, R1, and R2 pivot levels. Sometimes there is a significant gap between these levels and calculating a mid point gives another point of reference. Price will often be seen respecting M1, M2, M3, or M4.

To calculate mid levels, simply subtract the level below from the level above and divide by 2. (see the resource box for a free pivot point calculator)

No. 5

Pivot point trading can be a useful strategy for entering and exiting trades at the right time. A pivot point can provide a key level of support or resistance where price is likely to bounce for a 10-20 pip profit.

Or in the case of a trend, price may retrace to a pivot level before continuing its run. The retracement point at the pivot level would be a good place to put an entry order to be taken in when price comes back to retest at the pivot level.

No. 6

The Euro - US dollar pair often puts in a daily average of between 75 and 100 pips. Watch for specific behavior around the time of the London market open. Price will often come back to test a level which is a pivot point and form a distinctive candle pattern such as tweezers, or a hanging man, and then reverse and go on its 75-100 pip run for the day.

If price comes back to the M1 level check your other indicators to see if they confirm this would be a good level to go long. Likewise, if price, just around London open, tests the M4 level, check your other indicators to see if this would be a good place to go short. You may be able to get a slice of the 75-100 pip run for the day.

No. 7

Pivot point trading helps mentally in establishing the buy zone and the sell zone. Traditionally, anything above the Central Pivot Point is a Sell area, and everything below the Central Pivot Point is a Buy area.

If you go contrary to that, make sure you double check your analysis and have very good reasons for doing otherwise.

Pivot point trading is just one of an arsenal of weapons available to Forex market participants. However, it must be stated that many successful traders use just a handful of tools that become their favorites. After all, too many indicators can lead to decision paralysis.

For many traders, pivot points are a key element in their overall trading strategy. Use the 7 guidelines above to use them safely and responsibly.

For a free pivot point calculator, Fibonacci calculator and the best free economic calendars click here:

http://www.vitalstop.com/Forex/tools.html

Click here to learn how to use another indicator, the 200 EMA, in a simple yet powerful way:

http://www.vitalstop.com/Forex/Advisor/200EMA-forex-strategy.htm

Do you know the important lesson Mohammed Ali teaches us about Forex trading? Read it here:

http://www.vitalstop.com/Forex/Advisor/forex-online-trading-mohammed-ali.htm

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