Thursday, July 23, 2009

Forex Foresee

The Market Oracle, an online financial publication, has done even better, preparing a one-year forecast for all of the major currencies along with a detailed analysis of the major factors driving each currency in the month of February. The Dollar and Yen are projected to be the strongest performers in this time frame, benefiting from a trend towards risk aversion. It should be noted that this prediction is consistent with news reported by the Forex Blog earlier this week. On the other hand, currencies that have been propped up by the Yen carry trade, namely those of Australia, New Zealand, Canada and South Africa, will face selling pressure. The British Pound is projected to underperform slightly, due to an easing of British monetary policy, which will narrow the interest rate advantage claimed over the US.
Finally, the Euro is something of a wildcard. On the one hand, the EU economy is stagnating, and the ECB has hinted that rate cuts are a possibility. On the other hand, the Euro theoretically stands to inherit a significant amount of risk-averse capital, especially from foreign investors looking for a stable alternative to the Dollar. Accordingly, the Market Oracle forecasts a short-term decline in the value of the Euro but a long-term appreciation.

Forex Capital Markets - Fractional Pip Pricing


Forex Capital Markets LLC, the largest Forex Dealer Member, recently announced that it would begin offering so-called “Fractional Pip Pricing” in an effort to reduce the bid-ask spreads it offers customers. Previously, most, if not all forex brokers that cater to retail forex investors, quoted forex rates out to four decimal places (i.e. 1.4101 USD/Euro). However, due to its strong liquidity relationships with banks that facilitate forex trading, FXCM has negotiated tighter bid-ask spreads for its customers, which will enable it to quote exchange rates to five decimal places (i.e. 1.41007 USD/Euro. While FXCM expects to narrow spreads further in the future, it remains to be seen whether the competition will follow suit.

Forex transactions



Forex transactions are carried out by Forex brokerage companies, also known as major banks dealers. Forex market is worldwide and your European colleagues may make a transaction with Japanese traders when it's time for you to sleep in the North America. There are 3 shifts for the major institutions to work in due to 24-hours a day activity of the Forex market. It's possible to ask for overnight execution for take-profit and stop-loss orders of the client.
Prices in the Forex market fluctuate without any dramatic changes unlike stock market where considerable gaps are likely to be seen. There isn't any problems entering and exit the market due to its daily turnover of about $1.2 trillion. Forex market can not ever be forced to stop. The transactions were carried out even in 2001, on September, 11th.

Beginners Guide to Forex


What is Foreign Exchange?

The Foreign Exchange market, also referred to as the "Forex" or "FX" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.

Where is the central location of the FX Market?

FX Trading is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over the Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
Who are the participants in the FX Market?
The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.
When is the FX market open for trading?
A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

Forex trading begins each day in Sydney


Investors and financial backers from Japanese retail companies are now jumping into the forex market even though there was a recent major surge of the yen when compared to the U.S. dollar.For most forex traders, this change in the value of the yen against the dollar has been a wake up call. There is a large amount of traders who have their life savings invested in the market and the thought of losing it all in a heartbeat can be very nerve-racking.Research data from Yano Research Institute has recently shown that the amount of forex trading accounts nearly doubled in 2006 with a total of 644,802. Data from Yano also mentioned that this number is supposed to increase another sixty-two percent by March of 2008.Surprisingly, the jump for the Yen has not scared away most traders because they are playing the market to get long-term results. Junichi Katsuno, who represents Himawari Shoken in its financial markets division, mentioned that, "There are many people who take a long-term view and are waiting to buy [dollars]." He also added, "There aren't that many people who expect the yen to strengthen that much more."CONGRATULATIONS & HALLELUJAH - The answer to a trader's prayer! This is without a doubt the most powerful system in the world for reducing the amount of risk associated with Forex Trading.The hottest new investment concept of the decade has arrived!-Simple, easy affordable web-based software.-No trading experience necessary - has novices trading within hours.- No charts/graphs/research/guesswork, etc...- Outstanding company/member supportLearn about making easy money from home with currency exchange using FOREX INVESTING.

Description of the Forex | sigma forex


The Forex market, established in 1971, was created when floating exchange rates began to materialize. The Forex market is not centralized, like in currency futures or stock markets. Trading occurs over computers and telephones at thousands of locations worldwide.
The Foreign Exchange market, commonly referred as FOREX, is where banks, investors and speculators exchange one currency to another. The largest foreign exchange activity retains the spot exchange (i.e.., immediate) between five major currencies: US Dollar, British Pound, Japanese Yen, Eurodollar and the Swiss Franc. It is also the largest financial market in the world. In comparison, the US stock market may trade $10 billion in one day, whereas the Forex market will trade up to $2 trillion in one single day. The Forex market is an opened 24 hours a day market where the primary market for currencies is the 24-hour Interbank market. This market follows the sun around the world, moving from the major banking centres of the United States to Australia and New Zealand to the Far East, to Europe and finally back to the Unites States.
Until now, professional traders from major international commercial and investment banks have dominated the FX market. Other market participants range from large multinational corporations, global money managers, registered dealers, international money brokers, and futures and options traders, to private speculators.
There are three main reasons to participate in the FX market. One is to facilitate an actual transaction, whereby international corporations convert profits made in foreign currencies into their domestic currency. Corporate treasurers and money managers also enter the FX market in order to hedge against unwanted exposure to future price movements in the currency market. The third and more popular reason is speculation for profit. In fact, today it is estimated that less than 5% of all trading on the FX market is actually facilitating a true commercial transaction.The FX market is considered an Over The Counter (OTC) or ‘Interbank’ market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as with the stock and futures markets. A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

Forex Gold Special


Now I,m telling to you about Forex Gold Information
The market action this week provided a great demonstration of why I mentioned in my last post that options on gold futures contracts were my favorite way to play the ongoing bull market in gold. As gold continues a profit-taking pullback prior to advancing to all-time highs, my margined gold futures contracts and FOREX gold and silver positions were all stopped out, preserving some of my profits, but also meaning that if the market had turned on a dime and shot back the other way, I would have missed out on some of the move up while I was still trying to decide where and when to get back into the market. Because the vast majority of my positions in silver and gold are in options on December 2008 futures contracts, those positions are temporarily down in value, but still in play to benefit from the inevitable turnaround.
This example shows in a nutshell why options are a great choice for investing in commodities that you are sure will move either much higher or much lower in the future, but can't be sure exactly when the big move or moves will occur. As discussed in previous posts, since you pay for an option in full up front, your loss is limited to your initial investment if it expires worthless, and that can only happen if you fail to roll it over prior to its expiration date. On the other hand, since futures contracts and FOREX positions are heavily margined, investors have to close them out quickly when the market starts moving against their positions, as happened to my margined positions this week. Futures and FOREX traders who do not do so quickly become former traders. So why does anyone trade margined positions then? Why doesn't everyone just trade options? The answer is that since you pay the full value of the option at the time you establish a position, you can't control as large of a total position size as you could in the futures, since you only have to make a small "deposit" when you establish a position in a futures contract, as discussed in more detail in previous posts. Like everywhere else in the market, taking greater risk creates the possibility of greater returns.
Options on stocks and Exchange Traded Funds (ETF's) were discussed in detail in my November 8, 2007 post. The main difference between options on stocks and options on futures is that a futures option gives you the right to buy or sell one futures contract at a set price at a set future date, instead of 100 shares of an underlying stock. Other than that difference, the underlying concept is basically the same. A speculator looking for the maximum leverage would purchase a futures contract on a given commodity, and would consequently assume the risk of greater losses than his or her initial investment if their margined position moved against them far enough before they closed it out. A speculator looking for high leverage, but also looking to avoid margin calls, would instead purchase options on a futures contract.
Let's look specifically at some examples for each method. As of this writing, with gold trading at $787 per troy ounce, a speculator with $10,000 could choose to control two full size 100 troy ounce gold futures contracts (leaving a $1,900 cash cushion), or 10 e-mini 33.2 troy ounce gold futures contracts (leaving a $2,300 cash cushion). The speculator could also choose to buy two call options that would give him or her the right to purchase two full size 100 troy ounce gold futures contracts at a price of $800 per troy ounce on November 20, 2008 (leaving a $180 cash balance). If the price of gold moved from $787 to $887 per troy ounce sometime in that period and the speculator decided to take profits at that point, the respective profits would be $20,000 for the two full size contract choice, $33,200 for the 10 e-mini contract choice, and $12,700 for the two call options.
The $12,700 profit on the call options represents a gain of just under 160%, but was achieved without having to worry about margin calls or getting stopped out of the position at a loss. True to the concept of greater risk taking opening up the possibility of greater gains, the margined futures contract positions were up 247% and 431%, respectively, but if at any time following the opening of the position the price of gold had gone down by just $4 to $783, the futures contract holders would have received margin calls asking them to deposit more money, at which point most futures traders would have closed out their positions. There is also the ongoing mental stress associated with holding heavily margined positions to consider.
Options on futures should only be considered by a speculator who has a very firm view of the future direction of a particular commodities market, as options can expire worthless if they are not rolled over. So the obvious question at this point in time is whether or not gold is certain to move significantly higher in the next few years. Since nothing is certain in this world except for death and taxes, a better question is what it would take for gold NOT to move significantly higher. The only scenario that derails the ongoing gold bull market is one in which: (1) the Fed embarks on an aggresive campaign to raise interest rates to protect the dollar, thereby throwing millions more homeowners out on the street than are headed out on the street already; and (2) the politicians in Washington embark on an aggressive campaign to cut federal spending on defense, Social Security, Medicare, etc. enough to generate huge annual budget surpluses for at least the next generation. Each speculator or investor will have to make up their own mind as to whether or not they see the above scenario coming to fruition anytime soon.

Forex Software Tool That Can Help Prevent Errors



Recently, good news was made public for traders about a new tool that can help with online investing. A company by the name of My Forex Edge, LLC, which develops and distributes various forex software programs and foreign exchange trading techniques, unveiled its new Forex Position Allotment Calculator. This tool gives investors a foreign exchange trading platform that helps avoid over leveraging and does away with the fear and greed that comes with online forex trading.
The Forex Position Allotment Calculator uses a special "set it and forget it" feature, which lets forex traders set the buy and sell prices, the stop price and limits without forcing the investor to constantly manage trades. Foreign exchange daytime traders, position traders, and swing traders are currently making use of the new Forex Position Allotment Calculator. According to Milan Stevanovich, the director of My Forex Edge, LLC, mentions that these traders have boosted forex currency trading profits by twenty five percent.
With this new forex software, traders no longer have to handwrite and enter in risk percentages, which means that there is less potential for error. Stevanovich also mentions that, "using the Forex Position Allotment Calculator could save you ten times the amount of an error."
He also claims that the new calculator has a smaller price tag than other forex trading computer programs, costing traders only 97 dollars for the complete software kit.
CONGRATULATIONS & HALLELUJAH - The answer to a trader's prayer! This is without a doubt the most powerful system in the world for reducing the amount of risk associated with Forex Trading.
The hottest new investment concept of the decade has arrived!
-Simple, easy affordable web-based software.
-No trading experience necessary - has novices trading within hours.
- No charts/graphs/research/guesswork, etc...
- Outstanding company/member support
Learn about making easy money from home with currency exchange using forex investing

U.S. Currency & Euro Face to Face in Forex Market


The U.S. dollar is still holding ground next to the euro recently, with investors keeping substantial distance ahead of major non-farm payroll statistics.
General predictions are saying that the United States economy will create roughly one hundred thousand new jobs, but many researchers have been improving their predictions upon seeing the major employment components from this week's Institute of Supply Management surveys.
As a result, the U.S. dollar experienced a slight increase overnight, but other currencies have remained the same during early London trade, with all eyes being stuck on the recent activity of U.S. currency.
A trader from TradIndex.com, Mic Mills, mentioned that, "Everything is on hold until non-farm payrolls."
Mills also mentioned that the Forex market is one step ahead in terms of virtually pricing as a result of further interest rate drops from the Federal Reserve, allowing the U.S. dollar to boost in the event of more concrete information.
Even though the basics for the U.S. dollar are not too strong, it is generally viewed as oversold and now will be corrected after recently shooting to an all time low when put next to the euro.

Important Tips For Finding a Forex Broker


important rules to remember when looking for a forex broker is to ALWAYS read the fine print and make sure that you are fully aware of the broker's terms before agreeing to use his or her services. Being critical about who you choose is crucial, and it is not always wise to just pick the first one that you speak with.When looking for an online forex broker, here are a few things to keep in mind:First of all, stay close to low spreads. In the world of Forex trading, spread determines the monetary difference between the buy and sell prices of 2 different currencies. Therefore, lower spreads will save you some cash in the end.Second, look for account openings that have a low minimum. For example, if you are able to open a new account with as little as 250 dollars, then you are in a good position. Not everyone has millions of dollars to trade in this competitive market.Third, look for instant execution of orders with your new account. You do not want to do business with a broker that is going to give you a different quote when you click on a particular price, especially when you are dealing with small profits. Make sure that you have a broker that will quote the price that you physically see when you click on it.Always remember to do sufficient research before choosing a broker, because some of them might have certain terms that are not clearly stated and you do not want to be kicking yourself in the end. There are plenty of honest brokers out there that want to help you make a profit, and then there are some who only care about a paycheck.

Forex News: U.S. Dollar and U.S. Housing Both Drop


Just days ago the U.S. dollar dropped greatly after a report was released that showed United States housing decreasing to its lowest level in fourteen years as of last month. This is also one more concern for the U.S. economy, considering that the drop in housing can have a great effect on how quickly it progresses.If the housing market is not strong and the U.S. economy continues to move slowly, Federal Reserve policy-makers may have to be informed in order to reduce benchmark interest rates once again. The current rate is 4 & 3/4 percent, and the Federal officials will meet at the end of this month to discuss the changes."The U.S. housing market is going to continue to be a significant drag on the overall U.S. economy, and the U.S. dollar is going to weaken as a result," mentioned Firas Askari. Askari is the top forex trader at BMO Capital Markets of Toronto."The Federal Reserve is more likely to be easing rates, maybe not on Oct. 31, but definitely within the next three to six months," Askari said.Late this morning, forex trading in New York showed the euro increasing to 0.4% higher than before with a value of 1.4215 U.S. dollars. The dollar index, unfortunately, dropped 0.35% to 78.057. Stay posted for more upcoming Forex news in relation to the value of the U.S. dollar.

Forex Broker Information

What is a forex broker?

A forex broker is an institution, often a bank or a big financial company, that allows you to trade currencies in the forex market.
What is important to check when choosing a forex broker?

1. Spreads - make sure the company is giving tight spreads. A spread is the difference between the buying price and selling price at a certain time, and the lower it is, the easier it is for you to profit.
2. Supported currencies - all forex brokers support "the majors" - the currencies with the highest trading volume: the US Dollar (USD), the Euro (EUR), the British Pound (GBP), the Japanese Yen (JPY), and the Swiss Franc (CHF). Most brokers also support additional currencies, even exotic ones (such as Polish Zloty, PLN, and Israeli Shekel, ILS). However, when trading currencies other than the majors, it's important to check the spreads, since they are often much higher than the spreads on the majors.
3. Required invetment - some brokers, such as easy forex allow you to open an account with as little as $25. It is NOT recommended to start with such small capital, but if you do not have much to invest in a forex account, see what is the minimum deposit before opening an account.
4. Technical support - all forex traders, beginners and experts, run into trouble. It's very important to check whether a forex broker offers a good technical support, especially if you are a beginner.

Forex Special Post

Forex Market Properities

Forex Swap

Forex Swap
In finance, a forex swap (or FX swap) is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward).
Structure
A forex swap consists of two legs: a spot foreign exchange transaction, and a forward foreign exchange transaction. These two legs are executed [...]


Forex Market Properities

Foreign Exchange Option

Foreign Exchange Option
In finance, a foreign exchange option (commonly shortened to just FX option or currency option) is a derivative financial instrument where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.
The FX options market [...]


Forex Market Properities

Retail Forex

Retail Forex
In financial markets, the retail forex (retail off-exchange currency trading or retail FX) market is a subset of the larger foreign exchange market. This “market has long been plagued by swindlers preying on the gullible,” according to The New York Times[1]. Whilst there may be a number of fully regulated, reputable international companies [...]


Forex News

Forex News : US Dollar Facing 1Q GDP, FOMC, Earnings and G20 forecasts

Forex News : US Dollar Facing 1Q GDP, FOMC, Earnings and G20 forecasts
Fundamental Outlook for US Dollar: Bullish
- First quarter earnings may have been a positive factor so far, but the outlook is still far from encouraging
- Fed says recession ‘substantially reduced’ some banks’ capital though most are still well-capitalized
- Do technicals support a [...]


Forex News

Forex News : Euro at Critical Crossroads versus US Dollar

Forex News : Euro at Critical Crossroads versus US Dollar
Fundamental Outlook for Euro This Week: Bearish
- Euro gains as PMI shows signs of “Second Derivative” Growth Improvement
- German IFO Business Confidence survey improves – Euro rallies
- Euro Bear Trend may nonetheless be in its infancy
The Euro finished the week marginally higher against the US [...]


Forex News

Forex News : Japanese Yen Trades Must Gauge Risk and the Currency’s Relation to It

Forex News : Japanese Yen Trades Must Gauge Risk and the Currency’s Relation to It
Fundamental Outlook: Bearish
- G7 forecasts a ‘weak’ rebound later this year; though banks’ toxic assets still a serious problem
- Japanese trade balance marks it worst annualized deficit in 29 years
- Bank of Japan Governor Masaaki Shirakawa tells economists not to [...]


Forex News

Forex News : British Pound to Follow Stock Prices Lower if Risk Appetite Abates

Forex News : British Pound to Follow Stock Prices Lower if Risk Appetite Abates
Fundamental Forecast for British Pound: Bearish
- UK House Prices Rose for Third Straight Month in April, Says Rightmove
- Retail Prices Turned Negative for the First Time Since 1960 in March
- Unemployment Rate Rises to Highest in Over a Decade
- UK Budget [...]


Forex News

Forex News : Swiss Franc Recent Strength Puts It At Risk For Verbal Intervention

Forex News : Swiss Franc Recent Strength Puts It At Risk For Verbal Intervention
Fundamental Outlook for Swiss Franc: Bearish
- Swiss ZEW Survey improved from -57.1 from -27.7, as investor confidence rose for a sixth month.
- Swiss Trade Balance surplus shrunk to 0.12 from 0.72 billion, as exports fell by 5.0%
The Swiss Franc rallied nearly [...]


Forex News

Forex News : Canadian Dollar – Crude Oil Correlation Hits 20+ Year Highs

Forex News : Canadian Dollar – Crude Oil Correlation Hits 20+ Year Highs
Fundamental Outlook for Canadian Dollar: Bearish
- Canadian dollar surges as Bank of Canada fails to announce immediate Quantitative Easing
- Surprise BoC interest rate cut nonetheless forces Loonie sell-off
- Check out our USD/CAD outlook from a technical and fundamental perspective.
The Canadian dollar finished [...]


Forex News

Forex News : Australian Dollar Outlook Hinges on Trend in Risky Assets

Forex News : Australian Dollar Outlook Hinges on Trend in Risky Assets
Fundamental Forecast for Australian Dollar: Bearish
- Producer Prices Unexpectedly Fell in the First Quarter
- RBA Governor Stevens Says Australia is in Recession
- Inflation Falls to Slowest in 18 Months as Downturn Deepens
The Australian Dollar looks likely to succumb to heavy selling pressure if [...]







Forex Worldwide Markets

Forex is a buying and selling system also referred to as FX or foreign market exchange. Those concerned in the foreign exchange markets are some of the largest businesses and financial institutions from around the world. They deal in multiple currencies from many nations to produce a balance as some are going to gain money and those who fall down. The basics of forex are similar to the form of dealing found in any country, only much bigger and complex. Forex buying and selling involves individuals, currencies and trades from around the world, between every last country.


Different currency rates happen and change every day so the measure of the dollar on one particular day of trading might be different on the next trading day. Forex trading can be hard to keep track of so you must dedicate yourself to keep an eye out on your funds, especially if you have invested a great amount of them, there is a chance you could lose it all. Primarily, trading in the forex exchange occurs in Tokyo in New Your and in London as well as several other spots around the globe.
The types of currency that are commonly traded are the Swiss franc, the Australian dollar, the British pound, the Japanese yen, the Eurozone euro, and the United States dollar. You can cross-trade currencies and you can intermingle one currency trade to another in order to attain supplemental interest and monetary gains.
The regions included where forex trading will start at one hour then shut down as other markets start to open shop. This is seen also in the stock exchanges from around the world, as different time zones are processing orders while making other transactions during various times. What happens in forex trading in a certain country might create various results in another forex exchange as time zones dictate the opening and closing of forex markets. The exchange rates will be varied between forex exchanges, and brokers and day traders alike will want to know the rate changes for each new day before committing money.
The stock exchange is primarily measured on products, prices, and other factors within businesses that could alter the cost of shares. If someone knows what is going to happen before the general public, it is often known as inside trading, using business secrets to purchase or sell stocks on that information — which is punishable by law. There is very little, if any at all inside information in the markets of forex. The monetary trades, buys and sells are all a part of the forex market but very little is based on business secrets, but much more dependent on the status of the currency, economy of any given country.
Code are given to each type of currency on the forex market exchange so no confusion exists when knowing which currency one is investing with at the time. EUR is the symbol for the euro and the US dollar is known as the USD. The GBP is the British pound and the Japanese yen is known as the JPY. If you want to get involved in the forex market and want to contact a brokerage then you should have no problems finding and online brokerage where you can investigate the type of exchanges and profile ahead of throwing your money down the drain.

Forex Currency Trading Useful Information

When you trade in the forex exchange, you’re engaged with foreign stocks, currency and similar varieties of products. The money of one country can be likened to another currency from a different nation to figure the monetary value. The value of that foreign currency is taken into review on every last trade made in the forex stock markets. Many international markets will have control over the altered monetary value their nation brings affecting the money, or currency. People who’re investing their money into the FX market exchange includes many large business organizations, banks foreign administrations and finance businesses.


What are the things that make the forex exchange so different from the US stock market? A trade on the forex market is one that involves at least two countries, and it can take place worldwide. The two countries must be 1, the investor’s country and 2, the place receiving the investment. Most all of the transactions that take place in the forex markets will be qualified through an experienced broker such as a bank.
What are the ingredients of trading in the forex market? The overseas market is comprised of a mixture of financial exchanges amongst nations. Investors in the forex stock market are trading in large volumes and huge amounts of money. Those deeply imbedded in the forex exchange are likely to have companies who are cash businesses or are in businesses where assets are bought and sold quickly. The US market is massive but it is correct to imagine the forex stock market as even more immense than any given single stock market. Forex traders daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends.
You might be surprised at the great number of investors that are involved in forex trading. In 2004 alone, as much as two trillion dollars was the median forex exchange trading volume. This number is massive in trade volume with regards to the amount of daily transactions to take place. Think about how much a trillion dollars really is then double that, and this amount is the average that is traded on any given day on the forex exchange!
The forex market is not something new, as it has been used for over thirty years but with the introduction of computers, and the global web, the forex exchange is growing exponentially as growing numbers of investors become aware of the availability of this trading market. Forex only accounts for about ten percent of the total trades between countries but as the popularity in this market continues to grow so could that number.

Thursday, July 9, 2009

How to Win the Forex Battle

Every trading activity is in fact participating in a battle. Winning the battle is a matter of knowledge, skill and experience. If you miss any of those you are going to join the long line of losers. Some says that 95 to 99 percent of the traders are lining up on the loser’s side.How to win the battle in the currency market? It is easy to answer that question, based on the above approach – prepare yourself for the battle. If you treat currency market activity as a hobby you’ll ultimately lose all investments there. If you treat it as a business you still may loose everything.The correct approach is: consider each pressing of the Buy/Sell button as entering a battlefield. If you enter it without having a knowledge, skill and experience on how to win, you are destined to fail. You may have some lucky trades in the beginning, though. That, by the way, is the worst case scenario for the rookie in trading.The earlier you get your “bad” lessons, the better for your overall experience. No mater how good you consider yourself prepared, after demo trading lessons, you have no idea of the forces ruling on the real market.In fact the worst enemy you are going to face in the very beginning is not hiding behind the walls of the global currency trading centers. Your most dangerous foe is hiding deep inside of you. That enemy is so powerful that you will be amazed how quickly it will wash away all your carefully considered decision.No one has been able to evade the force of that destructive power. No one can understand or realize that force unless it has been confronted face to face. Start trading with real money and you will face it too. Fear, Greed or Hope are some of the names of that power.Fear forces you to sell near the bottom and buy near the top. Greed forces you to get out of the market prematurely. Hope will keep in the trade until you loose everything. Fear may save you but hope may wreck you completely. Greed will never make you rich.It is easy to give advice to trade without emotions and use the logic, only. How you can achieve that if you never have been there. You need to go through that turmoil, pick up your loses due to your emotional decisions and than analyze.Study all your “bad” trades, because they are the most precious gifts on the way to proficiency in trading. Growing as an experienced trader is possible only after getting your losses in the beginning. Then sit down and carefully study the lessons they brought to you.One thing traders never want to do is to admit of being wrong. The market is a constantly changing and it demands flexibility in taking decision. That implies monitoring and constantly adjusting, changing your decision and action. When your logical analyzes suggest that you are wrong – get out, quickly.Once you overcome the emotions, concentrate on developing your signature way of trading. You can start with following different advisors and system and picking from them the things you like. Demo trade and test your ideas until you find the trade system which is matching completely your personality.Now, you have to go back to emotion in a controlled way. Every time your system suggests a trade look inside you and see how you feel about this trade. You feel bad – discard it. If you feel good – keep it.Here comes the final step: Looking for the final approval sign before submitting the trade. Here is the time, where the mastership shows up. Your weapon is loaded, the target is clearly seen on the visor and the finger is on the trigger. You have to make that final exhale, get the target over the cross point and shoot it.How much knowledge, skill, experience and patience you need to build within in order to reach that very final stage of trading proficiency? Only you’ll know that and only you can do it. The rest is just numbers in your bank account.Building a fortune by trading currency is not a mirage in the desert of live. There are hundreds of traders who are making living of that business and you can do it too. Study all you can find on the net and follow the steps of the best if you want to win that battle.

Forex trading - Knowledge Lot Sizes

Currencies in Forex are traded in Lots. Since forex traders always search for the most efficient ways to limit risks or at least lessen risk effects. For this purpose various risk management and money management strategies are created. The Lot size are part of the money management to control the ammount of risk that will be taken.A standard lot size is 100 000 units. Units refer to the base currency being traded. For example, with USD/CHF the base currency is US dollar, therefore if to trade 1 standard lot of USD/CHF it would be worth $100 000. Example: GBP/USD, here the base currency is British Pound (GBP), a standard lot for GBP/USD pair will be worth £100 000.here are three types of lots by size, Standard lots = 100 000 units, Mini lots = 10 000 units and micro lots = 1000 units. Mini and micro lots are offered to traders who open mini accounts on average size from $200 to $1000. Standard lot sizes can be traded with larger accounts only start from $ 10 000 but the requirements for a size of standard account vary from broker to broker.The smaller the lots size traded, the lower will be profits, but also the lower will be losses. When traders talk about losses, they also use term “risks”. Because trading in Forex is as much about losing money as about making money. Risks in Forex refer to the possibility of losing entire investment while trading. Trading Forex is known as one of the riskiest capital investments.

About Finance

I have been doing Forex Trading for the past 3 years and making a lot of money from it. I’ve tried a lot of forex softwares and e-books but they were very bad and it didn’t help me much but the last two that i have tried and still running them are:
Forex-Killer
Doubling Stocks
I’m running these two upfront and making a lot of money from them.

Generating My Own Signals

Please let me introduce myself, my name is Andreas Kirchberger and I make an extraordinary living trading on the forex market. I used to work for Deutsche Bank as a forex advisor but I made the decision to quit because one question kept nagging me and even haunted me in my dreams: Why should I work and sweat for 8 hours a day making other people rich by researching reports and monitoring market movements?

Is Trading Price Action Really Difficult to Do?

Trading price action may be a completely new concept to some traders. While to other traders, the concept may seem incredibly difficult to grasp. It's funny because trading price action is so incredibly simple when you compare it to what most traders

FOREX for Noobs

These ideas presented in this eBook are intended for the intermediate forex traders who want to extend themselves and want to progress to the next level.

MANAGED FOREX ACCOUNTS

Discover the returns possible in the world's largest financial market,ithe off-exchange foreign currency market (Forex). Forex is where banks, corporations, and whole countries make investments. It is just over the past few years that private investors, such as yourself, have been getting more involved with these opportunities. A managed Forex account gives an investor who cannot watch the market 24 hours a day the chance to participate in the world's largest market - Forex. These accounts are an ideal consideration for those who prefer to have their capital managed by professionals. Studies of professionally managed Forex accounts have often shown high returns not related to the performance of the stock market. Consequently, allocating a portion of an investment portfolio to a Forex managed account can be a great way to enhance the overall performance of your portfolio, independently of what the stock markets are doing.

The Optimal Engine for Currency Trading

As traditional inter-bank, over-the-counter phone trading gives way to a transparent, efficient global Forex market, Fortex is paving the way to electronic foreign exchange trading with Fortex FX. Fortex FX unifies execution venues across the globe and aggregates segmented liquidity pools to provide Forex traders with real-time quotes and execution capabilities. The platform’s unique artificial intelligence (AI) engine delivers Straight-Through Processing (STP) without human intervention—speeding execution, enabling 24x7x365 trading, and reducing execution costs. A highly intuitive interface supports the most sophisticated currency trading strategies and analysis to keep you in front of moving markets.

NAWKY

Do you see the potential to profit from trading currencies, but learning to trade just seems too intimidating? Have you watched enthusiastically to the recent crash of the dollar, but simply do not know how to go about trading?

The best Forex Trading Software

Forex autopilot is an old but excellent Forex robot. But, a few months ago, some computer geeks upgraded this robot to a better, more accurate and improved robot named FAP Turbo.So if you want to know more about this amazing robot, read the extraordinary reviews we have for you. (We have also changed all the links of this review to the website of this improved robot).

Forex Optimizer

Absolutely new revolutionary trade platform, is intended both for beginners, and for the tempered traders of Forex. Beginners can study market Forex, using a simulator, not risking the capitals and not being connected to the Internet. For more skilled traders Forex Optimizer allows to create and optimize trade strategy, not having knowledge in programming to operate (to make trading operations) the real account of the broker. The platform can offer professionals greater functionality for application of the strategy and methods of trade in market Forex

Progressive FX

Forex, short for Foreign Exchange, is the simultaneous exchange of one country's currency for that of another country. Speculators in the FX market wish to purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of the investor, whether from market news or events that take place in the world. The Forex market has become the world's largest financial market, with over $1.9 trillion USD being traded on a daily basis. It is part of the bank-to-bank currency market known as the Interbank market. The 24-hour Interbank market literally follows the sun around the world, moving from major banking centers of the United States to Australia, New Zealand to the Far East, to Europe then back to the United States.

Personal Finance

If you are constantly surfing the net for the right Forex strategy and do not know which training course to attend to get the best hands-down knowledge abut this business, you are reading the right article for finding the right answers. The first step to get started with Forex trading is to decide on the amount of investing money and then decide on the most cost-effective training program to help you get

Forex Trading Systems

Here you will find a big selection of trading systems, remember there is a trading system for each type of trader.No one system can work for every Body, so take your time and go threw the products and find the one that is right for you.

Forex Trading Signals.

Provides you with an introduction and successful currency trading in Forex market. We give you a wide range of instruments and forex trading resources required for this purpose. We collect only the best forex training sites, the best forex brokers, and the best forex signal. Here you can find a lot of useful information, which can help you to achieve profit goals in online currency trading. Great opportunity for market research by forex traders. Use it in your work! Free Signal for trading, Forex signal, Trade guide to signal

What Is FOREX and Forex Trading

Forex is an acronym for "foreign exchange," and involves trading pairs of currencies, i.e., buying one currency and selling the other in a single transaction. For example, USD/JPY is buy US dollar/sell Japanese yen. In this case, you expect the dollar to appreciate versus the yen, the yen to depreciate against the dollar, or both. The latter situation, of course, is ideal.

Another Fap Turbo Review

There are plenty of ‘ Forex trading robot ‘ in the market. These forex robots provide a solution for people who want to trade the forex market with no human intervention.Fap Turbo robot is the latest and one of the best forex trading robot or software .

ABOUT THE ONLINE FOREX TRAINING

As you will see by following my online forex trading blog, my years of experience in Forex trading and Forex platform operation, parallel to Forex education, including seminars, printed publications and academic studies, will help you succeed in Forex too.
It's my goal that my experience be passed on to provide all levels of forex traders the training and the essentials of Forex trading. With the help of my Online Forex Trading Blog, you will soon be ready to start trading Forex and making all the money you deserve. In fact, you can even start today, while beginning with small amounts and gradually obtaining the experience you need.
I wish you success in your forex trading, and hope you find my Online Forex Trading Blog interesting, helpful and enjoyable.

What is Forex Trading?

I'm guessing that if you're reading this page you probably have an idea of what forex trading, and in particular automated forex trading systems are. However, since forex trading is a relatively new concept to most people, let me clear up some potential misunderstandings

Jaws Drop

Well, I'm about to tell you just how you can do that - and put an endless stream of money into your pocket... week after week... like clockwork

Advantages and disadvantages of a demo account in Forex Trading

Many brokers in the Forex trading offer a demo account to their clients to ensure a smooth business in foreign trading. This is a kind of account that uses fake currencies and it is used to conduct virtual trades. You can avail this demo account for absolutely free.
There are many advantages of having a demo account in Forex trading. The most important benefit is that it shows conditions of the real market. In most cases, the brokers will open this demo account for their clients for a month, but there are other brokers who are often generous to the clients and keep this account open for as long as they want. This is of course to create an impression that the brokers are not just after money, but in fact they want to offer some genuine services as well to their clients.

Forex TDNG

This is purely for my enjoyment. This is what I love to do so displaying here only shows that I really do enjoy trading. Let me know if you are interested in understanding all these charts and figures.

In recent years, there are many people are involved in forex trading. Do you know what forex trading is ? Have you ever saw trading on the stock mar

In recent years, there are many people are involved in forex trading. Do you know what forex trading is ? Have you ever saw trading on the stock market? OK, Forex trading is just quite similar with that and in this field we make a deals with trading currencies amongst different countries which is usually done with a financial institution or a broker.

The Real Million Dollar Question - Will These Forex Robots Actually Work?

The amount of money traded in the Forex each day has reached unbelievable levels and as you would expect many companies have entered the fray with products and tools designed to help you and I, traders, make more cash.

Even if today is your first day looking at the Forex market and you're trying to decide whether or not to get involved, I am certain you've seen dozens of ads for automated trading robots.

Forex trading robots as claimed by their creators and marketers, can monitor the Forex market for fluctuations and act automatically to these changes making trades which make their owners lots of money. Many of these companies claim that their robots can make you money automatically even while you sleep or are on vacation.

What makes these automated robots tick? Exactly how is it they know when to buy, when to sell, or just as important, when to simply do nothing? In a nutshell, Forex robots are designed to monitor fluctuations in currency price and then when certain market conditions are met, they automatically, in many cases, make trades. These "market conditions" are set by the robots owner (you or me) based on several factors including aversion to risk or lack thereof.

Moving forward in the process, once a position has been purchased and established, the robot will then sell that position in an attempt to make it's owner as much profit as possible. The selling point, particularly to newer traders is that the robot can be set up to trade on its own and make a profit with very little downside risk.

Can these robots really make money on auto-pilot as advertised?

My quick answer is no. There are so many factors that drive fluctuations in currency prices that even the most intricate Forex robots can't realistically be expected to make the correct decisions concerning profitability 100% of the time.

Having said that, Forex robots can be and are a very valuable trading tool. They can make turning a profit in the Forex market far easier and can make your learning curve a lot shorter. In my opinion and in my experience, a newer trader will find that achieving profitability is far easier with a robot's guidance than if they try to trade without it. These auto-bots should be monitored and have to be set up correctly to ensure that they make profitable decisions the majority of the time. Follow the instructions carefully and read as much as possible regarding set-up parameters before beginning live trading with real money.

Traders should use Forex robots as tools to simplify their decision making but it is the trader who ultimately should make the decision. Forex robots can be very powerful tools when used in this manner. It is usually when beginner traders take the mindset that they can automatically start making you money without any monitoring or safe guards that problems can arise.

A new trader should research their purchase before buying any tool. As with any product in virtually any market, there are some products that are scams and others which are legitimate and work as advertised, so do your homework.

Whatever Forex trading tool you decide to purchase and use, please keep in mind that it is not the tool but how you use it that will determine your profitability.

Currency Trading in the Forex market is one of the hottest topics online today.

Currency Forex Online Trading product reviews and consumer feedback is a great resource for comparing Forex trading platforms and automated robotic software. Compare features and pricing and read actual consumer reviews. Make an informed buying decision.

How to Invest in a Managed Forex Fund

Quite candidly, making an investment in a managed Forex fund isn't the type of solution that most of us are looking out for when we speak of giant profits in the FX market. What happens when you become a stockholder in a managed Forex fund is that you deposit a specific amount of money inside a brokerage account, which will then be managed only either by two brokers or revolving brokers, relying on the situation. There are some upsides as well as drawbacks when having a look at managed Forex funds. One of the upsides is the easy fact that you do not need to do anything to manipulate your own investments - all the investments are done for you and done on the advice of the boss, so you know you are getting solid investment decisions with your hard earned money. Whilst nothing is absolutely assured, masses of speculators have been going into multiple managed accounts as they are unable or not keen to trade adequately for themselves - or because they have no time to sit out front of the computer, handling the trading platform and system and making investment calls. For one, you aren't in control of your cash and that in itself is a big risk.


They may show you all sort of safety precautions and a track record that has lists many years of successfully performance, but there's no such thing as a sure bet - even with managed accounts. You are surrendering the destiny of thousands of dollars to an independent managed Forex fund, who you hope will do a good job at managed your investments. Also, there's an amount of dilution because you are never sure if your account is given the type of attention you need. On the other hand, many managed Forex funds now use PAMM systems to make sure that all of their clients are given precisely the same allocations, which lessens this concern.

Another concern is the level of charges charged to your account. You need to also ensure that the main fee that they are making profits from is the performance fee, which you only pay to them if they make you money. You always must remember that managed Forex funds exist as a way to try to profit for themselves from your investment. If things go well, you both earn cash ; if things go bad, only you loss money. Still, for backers looking to make significant returns, that are typically not correlated to the stock exchanges, managed Forex funds are a cool place to invest some of your capital. Just make efforts to pick a good one, and know that any real fund will have its swings and roundabouts, and that if performance seems to good to be true, it doubtless is.

Forex Trading Software - Forex Robots and Expert Advisors, Why You Shouldn't Use Them

The reason you should not trust your money to the Forex trading packages which call themselves Forex robots or Expert Advisors is because they don't make money and the reason is obvious and the subject of this article, Let's see why they lose money.


When I look at any Forex Expert Advisor, I always see a track record which is better than the world's best fund managers, has less drawdown and I can buy this life long income for a hundred dollars or so! Of course it looks to good to be true and it is; if you look closely at the track records, you will notice they all have one thing in common:

They never produce an audited or verified track record from an independent source; all you get are, paper back tests or figures from the vendors themselves.

Why would anyone trust a system which can't produce a verified track record?

Well a lot of naïve and greedy do and they all lose money.

Any sensible person can see that if these Expert Advisors worked, all the dealing teams in banks would be sacked. The top fund managers and dealers, are on multi million salaries and bonuses and a hundred dollar robot would offer a great saving, over these highly paid teams but have any banks sacked their dealing teams? Of course not.

If you want to win at Forex trading understand, you don't make money without making an effort and there is no automatic way to big profits, you have to work for them.

If you want to win at Forex trading get yourself an education, learn skills and you will be well rewarded with a great second or life changing income.

Forex Trading Strategies

Reviews of forex trading systems and strategies: locate the top forex trading systems and find out what criteria separates good forex systems from the poor ones - find a profitable. Trading strategies - sigma forex online forex trading currency sigma forex online broker is a launching pad for people, wishing to use advanced forex trading strategies that lead to profitable trades. Finally: powerful forex trading strategies which work forex.com - the site for forex trading online currency trading w/ real time execution forex mini accounts from $250 free forex charts & quotes forex training registered fcm. Forex forex trading currency trading forex trading strategies for the trader with a medium term time horizon. Forex.com > learn > local events > local workshops > half-day to attend strategies in forex trading free of charge, you must be a forex.com client with a minimum balance of $5000 learn the same strategies used by professional traders around.


Forex trading strategies the forex is a world wide market for buying and selling currencies. Forexlivepro com - forex trading strategies, forex systems and forex forex trading strategies that can change your life. Forex trading strategy discover powerful forex trading strategies, tips and secrets. Free verified forex trading strategies course and seminar the best forex signals online b www.forexlivepro.com -we provide real time forex signals, education resources and live trading room for forex trader

Fascinating Market Correlations You'll Want to Use

Experienced futures traders know there are many correlations among futures markets - some of which are valuable guides in helping to determine specific market trends, and some of which are fickle. This educational feature will examine some basic correlations among futures markets, and will likely be most beneficial to the less-experienced traders. However, it just might be a good refresher for the experienced traders who may have forgotten a few of the market correlations.

It is important to emphasize that market correlations are never 100% predictable, and that some market correlations can and do make 180-degree turns over a period of time.

U.S. Dollar-Gold: The gold market and the dollar usually trade in an inverse relationship. This has been the case for many years. During times of U.S. economic prosperity and lower inflation, the dollar will usually benefit as money flows into U.S. paper assets (stocks and bonds), while physical assets (gold) are usually less attractive. Conversely, during times of weaker U.S. economic growth, higher inflation or heightened world economic or political uncertainty, traders and investors will tend to flock out of "paper" assets and into "hard" assets such as gold. Inflation is a bullish phenomenon for gold.

U.S. Dollar-U.S. Treasury Bonds: Usually, a stronger dollar means a stronger bond market because of good demand for U.S. dollars (from overseas investors) to buy U.S. T-Bonds. T-Bonds are also seen as a "flight-to-quality" asset during times of economic or political instability. In the past, the U.S. dollar has also benefited from "flight-to-quality" asset moves. However, since the major terrorist attacks on the U.S. and the resulting damage to the U.S. economy, the safe-haven status of the "greenback" has been much less pronounced.

Crude Oil-U.S. Treasury Bonds: If crude oil prices rally strongly, that is a negative for U.S. T-Bond prices, due to notions that inflationary pressures could reignite and become problematic for the economy. Inflation is the arch enemy of the bond market. Rising crude oil prices are also bullish for the gold market.

CRB-U.S. Treasury Bonds: The CRB Index is a basket of commodities melded into one composite price. A rising CRB index means generally rising commodities prices, and increasing inflation. Thus, a rising CRB Index is negative for U.S. Treasury Bond prices.

U.S. Stock Indexes-U.S. Treasury Bonds: Since the bull market in U.S. stocks ended just over two years ago, stock index futures prices and U.S. Treasury bond futures prices have traded in an inverse relationship. When stock prices are up, bond prices are usually down. However, during the long bull market run that preceded the current bear market, stock and bond prices traded in tandem. In fact, years ago, before all the electronic overnight futures trading had begun, the best way to get a good read on how the stock indexes would open was by early trading in the T-bond market. (T-Bond trading opens 70 minutes before the stock indexes).

Silver-Soybeans: This corollary may be more fiction than fact, at least nowadays. But during the "go-go" days of soaring precious metals and soybean prices, it was said that if soybean futures would lock limit-up, bean traders would buy silver futures.

Cattle-Hogs: The point to mention here is that if strong price gains or losses occur in one meat futures complex, there is likely to be somewhat of a spillover effect in the other meat complex. For example, sharp losses in the cattle or feeder cattle futures will likely weigh on the hogs and pork bellies.

Currency Futures-U.S. Dollar Index: Most major IMM currency futures contracts are "crossed" against the U.S. dollar. Thus, when the majority of the currencies are trading higher, it's very likely that the U.S. Dollar Index will be trading lower. It's a good idea for currency traders to keep a watchful eye on the U.S. Dollar Index, as it's the best barometer for the overall health of the U.S. dollar versus major foreign currencies.

U.S. Stock Indexes-Lumber: Lumber is a very important commodity for the U.S. economy. It is literally a building block for the nation. If the stock market is sharply higher, lumber futures prices will be supported. A big sell off in the stock market will likely find selling pressure on lumber futures.

N.Y. Cocoa-British Pound: London cocoa futures trading is as important (or even more important) than New York cocoa futures trading, on a worldwide basis. London cocoa futures trading is conducted in the British pound currency. Thus, big fluctuations in the pound sterling will impact the price of U.S. cocoa futures, due to the cross-currency fluctuations of the British pound versus the U.S. dollar. Keep in mind there is constantly arbitrage taking place between the New York and London cocoa markets, and thus the currency cross-rates between the pound and the dollar are very important.

Grains-U.S. Dollar Index: A weaker U.S. dollar will be an underlying positive for the U.S. grain futures markets because it makes U.S. grain exports more competitive (cheaper prices) on the world market. Larger-degree trends in the U.S. dollar will have a larger-degree impact on the grains.

Forex Breakout System

"Learn to trade Forex like a Bank Trader..." "Bank Traders are Range Traders"

First, a Few Truths about the Forex Market...
If you trade Forex without a system - you will lose! You need a system and good money management to have an advantage in the market.
The market is always right. When you win it's always because you followed the market. Your trade will not affect the market, so why try and go against the trend. "run with the bulls" and "follow the crowd"
90% of traders will give their money to the 10% who know what they are doing. The Forex market is a zero sum game. The 10% who know what they are doing will happily take your money - nothing personal. They have no emotion! That is why they are successful!
The Forex market is $3-trillion a day market driven by the banks There is a lot of money flowing through the market. The tiniest piece of this pie is enough for your wildest dreams!
Most traders with a system lose because they over trade. When you over trade, you are not following the rules. You think you can time it better, or, you feel lucky and trade larger positions. You will always get burned.

These are the simple truths about the Forex market. Truths are usually gained from experience and always cost you more that you bargained for. Use our tried and tested experience to your advantage and become one of the 10% who make real money.

What is Different About This System..
Most EA's you buy you don't really understand. The mechanics are always a "secret"......yet you buy them.
Many use excessive risk models yet you will put them on your live account immediately because they looked impressive?
Many use complicated indicators which only work in certain market conditions.
Other EA's don't offer you flexibility
Do you watch the news channels?

Here's how we do it...
We design automated trading tools that traders understand!
We teach you the concept and set you free to explore the options for yourself.
We give the trader full control and understanding of the automation capabilities.
We give you the flexibility to change any of the variables to suit your needs.
We give you a custom indicator to do your own highly accurate visual back testing.
We help you take the emotion out of trading!! The system has no emotions. Let it trade for you.
We call the "News" channel the "History Channel"
Posted by Exber at 3:58 AM 0 comments
Labels: forex online trading and currency
Top 10 Mistakes forex Traders Make
Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it's not any specific trading methodologies that make traders successful, but instead it's the overall rules to which those traders strictly adhere that keep them "in the game" long enough to achieve success.

Following are 10 of the more prevalent mistakes I believe traders make in futures trading. This list is in no particular order of importance.

1. Failure to have a trading plan in place before a trade is executed. A trader with no specific plan of action in place upon entry into a futures trade does not know, among other things, when or where he or she will exit the trade, or about how much money may be made or lost. Traders with no pre-determined trading plan are flying by the seat of their pants, and that's usually a recipe for a "crash and burn."

2. Inadequate trading assets or improper money management. It does not take a fortune to trade futures markets with success. Traders with less than $5,000 in their trading accounts can and do trade futures successfully. And, traders with $50,000 or more in their trading accounts can and do lose it all in a heartbeat. Part of trading success boils down to proper money management and not gunning for those highly risky "home-run" type trades that involve too much trading capital at one time.

3. Expectations that are too high, too soon. Beginning futures traders that expect to quit their "day job" and make a good living trading futures in their first few years of trading are usually disappointed. You don't become a successful doctor or lawyer or business owner in the first couple years of the practice. It takes hard work and perseverance to achieve success in any field of endeavor--and trading futures is no different. Futures trading is not the easy, "get-rich-quick" scheme that a few unsavory characters make it out to be.

4. Failure to use protective stops. Using protective buy stops or sell stops upon entering a trade provide a trader with a good idea of about how much money he or she is risking on that particular trade, should it turn out to be a loser. Protective stops are a good money-management tool, but are not perfect. There are no perfect money-management tools in futures trading.

5. Lack of "patience" and "discipline." While these two virtues are over-worked and very often mentioned when determining what unsuccessful traders lack, not many will argue with their merits. Indeed. Don't trade just for the sake of trading or just because you haven't traded for a while. Let those very good trading "set-ups" come to you, and then act upon them in a prudent way. The market will do what the market wants to do--and nobody can force the market's hand.

6. Trading against the trend--or trying to pick tops and bottoms in markets. It's human nature to want to buy low and sell high (or sell high and buy low for short-side traders). Unfortunately, that's not at all a proven means of making profits in futures trading. Top pickers and bottom-pickers usually are trading against the trend, which is a major mistake.

7. Letting losing positions ride too long. Most successful traders will not sit on a losing position very long at all. They'll set a tight protective stop, and if it's hit they'll take their losses (usually minimal) and then move on to the next potential trading set up. Traders who sit on a losing trade, "hoping" that the market will soon turn around in their favor, are usually doomed.

8. "Over-trading." Trading too many markets at one time is a mistake--especially if you are racking up losses. If trading losses are piling up, it's time to cut back on trading, even though there is the temptation to make more trades to recover the recently lost trading assets. It takes keen focus and concentration to be a successful futures trader. Having "too many irons in the fire" at one time is a mistake.

9. Failure to accept complete responsibility for your own actions. When you have a losing trade or are in a losing streak, don't blame your broker or someone else. You are the one who is responsible for your own success or failure in trading. You make the trading decisions. If you feel you are not in firm control of your own trading, then why do you feel that way? You should make immediate changes that put you in firm control of your own trading destiny.

10. Not getting a bigger-picture perspective on a market. One can look at a daily bar chart and get a shorter-term perspective on a market trend. But a look at the longer-term weekly or monthly chart for that same market can reveal a completely different perspective. It is prudent to examine longer-term charts, for that bigger-picture perspective, when contemplating a trade.
Posted by Exber at 3:54 AM 0 comments
Labels: forex online trading and currency
11 Fascinating Market Correlations You'll Want to Use
Experienced futures traders know there are many correlations among futures markets - some of which are valuable guides in helping to determine specific market trends, and some of which are fickle. This educational feature will examine some basic correlations among futures markets, and will likely be most beneficial to the less-experienced traders. However, it just might be a good refresher for the experienced traders who may have forgotten a few of the market correlations.

It is important to emphasize that market correlations are never 100% predictable, and that some market correlations can and do make 180-degree turns over a period of time.

U.S. Dollar-Gold: The gold market and the dollar usually trade in an inverse relationship. This has been the case for many years. During times of U.S. economic prosperity and lower inflation, the dollar will usually benefit as money flows into U.S. paper assets (stocks and bonds), while physical assets (gold) are usually less attractive. Conversely, during times of weaker U.S. economic growth, higher inflation or heightened world economic or political uncertainty, traders and investors will tend to flock out of "paper" assets and into "hard" assets such as gold. Inflation is a bullish phenomenon for gold.

U.S. Dollar-U.S. Treasury Bonds: Usually, a stronger dollar means a stronger bond market because of good demand for U.S. dollars (from overseas investors) to buy U.S. T-Bonds. T-Bonds are also seen as a "flight-to-quality" asset during times of economic or political instability. In the past, the U.S. dollar has also benefited from "flight-to-quality" asset moves. However, since the major terrorist attacks on the U.S. and the resulting damage to the U.S. economy, the safe-haven status of the "greenback" has been much less pronounced.

Crude Oil-U.S. Treasury Bonds: If crude oil prices rally strongly, that is a negative for U.S. T-Bond prices, due to notions that inflationary pressures could reignite and become problematic for the economy. Inflation is the arch enemy of the bond market. Rising crude oil prices are also bullish for the gold market.

CRB-U.S. Treasury Bonds: The CRB Index is a basket of commodities melded into one composite price. A rising CRB index means generally rising commodities prices, and increasing inflation. Thus, a rising CRB Index is negative for U.S. Treasury Bond prices.

U.S. Stock Indexes-U.S. Treasury Bonds: Since the bull market in U.S. stocks ended just over two years ago, stock index futures prices and U.S. Treasury bond futures prices have traded in an inverse relationship. When stock prices are up, bond prices are usually down. However, during the long bull market run that preceded the current bear market, stock and bond prices traded in tandem. In fact, years ago, before all the electronic overnight futures trading had begun, the best way to get a good read on how the stock indexes would open was by early trading in the T-bond market. (T-Bond trading opens 70 minutes before the stock indexes).

Silver-Soybeans: This corollary may be more fiction than fact, at least nowadays. But during the "go-go" days of soaring precious metals and soybean prices, it was said that if soybean futures would lock limit-up, bean traders would buy silver futures.

Cattle-Hogs: The point to mention here is that if strong price gains or losses occur in one meat futures complex, there is likely to be somewhat of a spillover effect in the other meat complex. For example, sharp losses in the cattle or feeder cattle futures will likely weigh on the hogs and pork bellies.

Currency Futures-U.S. Dollar Index: Most major IMM currency futures contracts are "crossed" against the U.S. dollar. Thus, when the majority of the currencies are trading higher, it's very likely that the U.S. Dollar Index will be trading lower. It's a good idea for currency traders to keep a watchful eye on the U.S. Dollar Index, as it's the best barometer for the overall health of the U.S. dollar versus major foreign currencies.

U.S. Stock Indexes-Lumber: Lumber is a very important commodity for the U.S. economy. It is literally a building block for the nation. If the stock market is sharply higher, lumber futures prices will be supported. A big sell off in the stock market will likely find selling pressure on lumber futures.

N.Y. Cocoa-British Pound: London cocoa futures trading is as important (or even more important) than New York cocoa futures trading, on a worldwide basis. London cocoa futures trading is conducted in the British pound currency. Thus, big fluctuations in the pound sterling will impact the price of U.S. cocoa futures, due to the cross-currency fluctuations of the British pound versus the U.S. dollar. Keep in mind there is constantly arbitrage taking place between the New York and London cocoa markets, and thus the currency cross-rates between the pound and the dollar are very important.

Grains-U.S. Dollar Index: A weaker U.S. dollar will be an underlying positive for the U.S. grain futures markets because it makes U.S. grain exports more competitive (cheaper prices) on the world market. Larger-degree trends in the U.S. dollar will have a larger-degree impact on the grains.