Home » Trading
Category Archives: Trading
Today I would like to talk with you about a few very important rules of investing in the Forex market. If you follow these rules, you will most surely come out on the winning side in the long run.
Rule number 1 is never risk more money than you can afford to lose. No trader is perfect, you are going to have losing trades. There is no system you can learn that wins all the time. So expect to lose some money.
Rule number 2 is to cut your loses short and let your winners compound to greater gains. The secret to not losing your shirt is to use stop loss orders consistently and not let your emotions rule your trading. It’s better to lose a little and get out of a trade than to hope that things will turn around and suffer a devastating loss. If you are using the proper techniques and strategies on how to trade, you can usually tell right away if your trade is going in the right direction. If it’s not, get out of the trade. There are always more opportunities to get into the market and try again. So be a smart trader, not an emotional one.
Rule number 3 and probably the most important rule in trading Forex is to always use stop loss orders. Before you even consider starting any trade, you should have a good idea in your mind of the point at which you think a trade might be going in the wrong direction and set your stop loss order there, along with your entry order. This way you automatically prevent a potential loss from going too far. Stop loss orders are free. They don’t cost you anything and they may save more than your piece of mind.
Rule number 4 is to know what your exit point will be before you get into a trade. There are many good reasons for this. It’s easy to get sidetracked when you are doing live trading and get caught up in all the excitement. Chances of making bad decisions go up dramatically if you do not have a predetermined exit point.
Rule number 5 is to know when to quit. Don’t become a gambler with your money. If you start having a streak of bad luck, get out of live trading and go practice with a demo account until you gain back your confidence.
There are many money-making opportunities out there and we’ve been involved with quite a few, namely property marketing, web development, residential construction security, multi-level marketing businesses etc. We’ve come to a few conclusions with the help of some well-known properity coaches.
Often people with the income they desire don’t have the time to enjoy it. Those that have time don’t often have money. You don’t have to sacrifice your life-style to earn an above-average income. If you focus on the Forex for a few months you can make that dream a reality and create time and money to do what you REALLY want.
To earn a living money is given in exchange for a product or service rendered. It needs to be sold continuously otherwise your income stops abruptly unless it’s a repeat type of product or service. Money is a medium of exchange. There’s no magical formula to possess it, you need to exchange something of value for it.
What if, you could have access to thousands of customers who are ready, willing and able to buy from you whenever you wanted? Wouldn’t it be great to avoid any hassles like money collection problems (just had a delayed payment from my web business), keeping difficult customers happy (we all know what that’s like), competition stealing your business without providing the same value etc.
All that is possible with Forex. You can also trade from anywhere. Take your laptop with you, find an internet connection and away you go.
Another advantage is that you don’t need experience to get started. Get a traditionally job involves accumulating specialized experience, having a well-polished resume and having the right contacts. With the right training course, you can get started straight away.
Here’s 7 more reasons to trade Forex:
1. It never closes. It’s open around the clock, worldwide. Trading positions open at Monday 7am, New Zealand time and close 5pm New York time on Friday. During this time, you can enter or exit the market whenever you like. It’s a continuous electronic currency exchange. This is great because you can trade whenever you have spare time.
2. Leverage. Standard $100 000 currency lots can be traded with as little as $1000. This is mainly because of the ease with which you can buy and sell, some brokers will leverage up to 200 times, so with $100 you can control a 200 000 unit currency position. It’s the best use of trading capital around, even banks lending on property investments don’t come close.
3. Accurately predict the outcomes. Currency prices generally repeat themselves in predictable cycles so you can see what the trends are. ‘Technical Analysis’ helps to see these trends and profit from them.
4. Low Transaction Cost. In other words, you mistakes won’t cost you a fortune. Good brokers won’ charge commissions to trade or maintain an account even if you have a mini account and trade small volumes.
5. Unlimited Earning Potential. Forex has a daily trading volume of over 1.5 trillion, the largest financial market in the world. It dwarfs the equities market (50 billion daily) and the futures market (30 billion).
6. You can make money in any market conditions. Each market is one currency against another, so when you buy in one, you’re selling in another so there’s no biase towards either currency moving up or down. This means it’s up to you to choose which currency to buy or sell with. Yu can make money going up or down.
7. Market transparency. This is an advantage in any business or trading environment. It means you can manage risk and execute orders within seconds. It’s highly efficient and allows you to avoid unexpected ‘surprises’.
I hope you’re now convinced that Forex is the best investment and income opportunity around.
To continue your journey of Forex Trading success and achieve enormous profits, visit http://www.wealthyforex.com . You’ll receive all of the resources you need to positively impact your future.
Trading money in the global markets can be great way to make more of it, it can also be a lesson in how to lose money quickly. More than $1 trillion is traded every day on the foreign currency exchange (Forex), and yet no centralized headquarters or formal regulatory body exists for this form of trade. Foreign currency exchange is regulated through a patchwork of international agreements between countries, most of which have some type of regulatory agency that controls what goes on within their respective borders. Thus, the foreign currency exchange actually is a worldwide network of traders who are connected by telephone and computer screens.
Although more international policing of money trading has occurred in recent years, authorities have had some successes exposing scams and frauds that victimize traders, especially newer ones. So if you want to try this wild world of trading, you need to be wary and not depend entirely on experts. Sure, experts can help you in explaining the working of foreign exchange markets and how the language of the Forex and its risks are unique, but you need a lot more training before you even consider entering this extremely risky trading arena.
If you have ever traveled outside the United States, you have probably traded in a foreign currency. Every time you travel outside your home country, you have to exchange your country’s currency for the currency used in the country you are visiting. If you are a US citizen shopping in England and you see a sweater that you want for 100 pounds (the pound is the name of the basic unit of currency in Great Britain), you would need to know the exchange rate. And that’s the way foreign currency exchange is used by the average shopper, but foreign currency traders trade much larger sums of money thousands of times a day.
While foreign currency trading offers its rewards, especially when you are able to trade in major currencies like the US dollars and Euro, caution against advertisements and brokers that offer instant riches must be observed.
There is move to regulate foreign currency traders. Unfortunately, not all in the industry are registered. Not entirely illegal, many unregistered brokers populate the financial markets. Extra precaution is suggested for individuals and companies when they deal with forex brokers.
The United States has passed a federal law, the Commodity Futures Modernization Act of 2000 that gives authority to the commission to investigate suspicions of frauds in the transactions.
Frauds in Forex trading have telltale signs and you must be aware of these. Be wary of schemes that offer quick riches. An experienced Forex brokers will tell you currency trading is not a risk free business and only those with real analytical methods can succeed in the field. And, even when projections seem sound, there is no way of telling exactly how strong a currency will hold out against many factors. So watch out for those who promise large profits no matter the economic condition is.
Most brokers ask for margin investments. If you are not fully aware of how this works, do not venture into it. You may be losing s more than you earn in the long run. Beware also of the “interbank market” service that brokers may offer. In reality, only large banks, corporations and investment institutions have access to this loose network of currency traders.
To be sure about the credibility of the brokers you are getting, study their profiles and company background seriously and extensively. Stick with a shortlist of firms that are registered with the regulatory commission on commodity futures.
Stock picking is a very complicated process and investors have different approaches. However, it is wise to follow general steps to minimize the risk of the investments. This article will outline these basic steps for picking high performance stocks.
Step 1. Decide on the time frame and the general strategy of the investment. This step is very important because it will dictate the type of stocks you buy.
Suppose you decide to be a long term investor, you would want to find stocks that have sustainable competitive advantages along with stable growth. The key for finding these stocks is by looking at the historical performance of each stock over the past decades and do a simple business S.W.O.T. (Strength-weakness-opportunity-threat) analysis on the company.
If you decide to be a short term investor, you would like to adhere to one of the following strategies:
a. Momentum Trading. This strategy is to look for stocks that increase in both price and volume over the recent past. Most technical analyses support this trading strategy. My advice on this strategy is to look for stocks that have demonstrated stable and smooth rises in their prices. The idea is that when the stocks are not volatile, you can simply ride the up-trend until the trend breaks.
b. Contrarian Strategy. This strategy is to look for over-reactions in the stock market. Researches show that stock market is not always efficient, which means prices do not always accurately represent the values of the stocks. When a company announces a bad news, people panic and price often drops below the stock’s fair value. To decide whether a stock over-reacted to a news, you should look at the possibility of recovery from the impact of the bad news. For example, if the stock drops 20% after the company loses a legal case that has no permanent damage to the business’s brand and product, you can be confident that the market over-reacted. My advice on this strategy is to find a list of stocks that have recent drops in prices, analyze the potential for a reversal (through candlestick analysis). If the stocks demonstrate candlestick reversal patterns, I will go through the recent news to analyze the causes of the recent price drops to determine the existence of over-sold opportunities.
Step 2. Conduct researches that give you a selection of stocks that is consistent to your investment time frame and strategy. There are numerous stock screeners on the web that can help you find stocks according to your needs.
Step 3. Once you have a list of stocks to buy, you would need to diversify them in a way that gives the greatest reward/risk ratio. One way to do this is conduct a Markowitz analysis for your portfolio. The analysis will give you the proportions of money you should allocate to each stock. This step is crucial because diversification is one of the free-lunches in the investment world.
These three steps should get you started in your quest to consistently make money in the stock market. They will deepen your knowledge about the financial markets, and would provide a sense of confidence that helps you to make better trading decisions.
By now most people know I’m not easily impressed… and generally very skeptical about “so called” new “secrets” and “magical formulas” etc …
It’s true – You can absolutely grow your income and improve gains by getting more skilled and learning more about the business.
I’m just saying that I don’t put much stock in supposed “secret discoveries” that are supposed to turn the world on its head.
So at first, as you can imagine, I completely ignored rumors about this Penny Stock “Prophet” who’d come up with a formula to identify undervalued stocks AND predict when they’d move.
After all… that’s pretty much the “Holy Grail” of trading stocks.
With that kind of information you can dramatically increase your returns and reduce the risk of losing your cash – I assure you MANY well resourced companies and investors have been trying to figure that out since… well… as long as companies have been sold publicly.
All skepticism aside his numbers seem to speak for themselves and the early rumors are now backed by traders who’ve since followed his system and seen their own dramatic results.
I don’t know “everything” as my wife would have you believe (sarcasm implied) but I do know a lot. This is still hard for me to believe but I guess, for now, the “proof is in the pudding” and I need to take a closer look.
If you’re interested in making more money with low-risk investments… whether you’re a seasoned trader, looking for additional income, whatever … You should probably check this out too.
This is among the BEST Trading Systems Available for trading Forex, Futures, Stocks and Binary Options in ANY Market Condition!
If you’ve not yet downloaded your copy of the NEW Black Diamond Trader 2 System, you’ve got to do so right now.
– Clear-as-Day BUY/SELL Signals!
– Three Amazing Indicators To Validate The Trade!
– Trade it Manually OR with the Automation component!
– and much more!
This is a MUST-HAVE trading System for ANY Trader! See details and screenshots here: blackdiamondtrader.com
Are you ready for a real forex indicator that will increase the winning rate on all your trades and help you grow your trading account quickly? If so then make sure you check out the best forex indicator whilst it is still commercially available – But hurry, this offer is about to end!
Get yours now before its too late at forexmarketsentiment.com
Are you fed up with the same forex indicators being recycled over and over again? These indicators do exactly the same thing but just have different names! They are all lagging, they all look good on historical data but give many false signals in real time. So called trading Guru’s creating worthless indicators that waste your precious time and do not benefit your trading.
How about an indicator that is truely revolutionary? Something that has never been made available ever before?
This is a unique Fibonacci indicator that is available only on the official website.
Fibonacci sequence is a very smart number sequence that is used in various different areas but can be even more effective in Forex.
“Fibo Machine Pro” performs different calculation according to this Fibonacci sequence and displays entry level, stop loss level and three take profit levels on your chart.
It is equipped with email, sound and push notification alerts, new V2.0 informer system and a lot of customizations. On top of all that its so easy, even a 10 year old could use it! No jokes.
Absolutely no repaint! It is designed to work on M15, M30, H1 and H4 timeframes. Works for all currency pairs, but best on: EUR/JPY, GBP/JPY, EUR/USD, GBP/USD, USD/JPY. (Use it on any pair)
The new V2.0 informer that is implemented in this indicator shows trend strength, trend direction, time left until next candle, last generated signal, entry, stoploss and take profit levels + more new exciting features!
“Fibo Machine Pro” is designed for MT4 platforms. It is NOT an EA or Robot, but a powerful Fibonacci levels breakout indicator software. You get smart signals, use them and make profit.
I highly recommend you get “Fibo Machine Pro” right now: fibomachinepro.net
I am sure you will love it!
This is NOT an indicator or EA(robot), but a very powerful manual strategy that works extremely well.
This strategy has a high win rate of 85% or even more. You can choose any of the 3 take profit levels (all explained in the pdf guide).
“Fast FX Profit” explains 3 very similar strategies that you can use everyday to make pips on different pairs and timeframes.
It works on M15, M30, H1, H4 and D1 timeframes on all currency pairs. (Best pairs EUR/USD, GBP/USD, USD/JPY, EUR/JPY and GBP/JPY)
This secret happens very often on all mentioned timeframes, so you can use it multiple times a day. It is very reliable – while testing I almost never lost any trades. It will work on any broker
and any trading platform.
I am 100% confident that with this secret strategy you will make a lot of profit everyday.
Get your own copy right now: fastfxprofit.net
You will love it!