Categories: money

Know Where The Market's Going Next

It just happened again. I got a note from a student about a trader who took some fancy smacy training and thinks he KNOWS where the market is going. Says that these guys he is training with now CONTROL the market, or at least know who is, and exactly what they are going to do and when they are going to do it (funny thing is, I’ve heard him predict the market on many days and it did the exact opposite of what he was claiming was a sure deal).

Anyone who has ever read Mark Douglas’ “Trading In The Zone” knows better than that.

Sure, there are Wall Street firms that play games with the markets, but even Goldman Sachs could not turn around a spiraling market even if they tried.

If anyone thinks they KNOW where the market is going for sure, then the market is about to teach them a great lesson!!! If you think you KNOW, then you don’t take precautions. This is something I learned a LONG time ago, and Douglas covers thoroughly in his book.

Another well known author, Joe Ross makes this statement:

“When asking yourself or asked by others which way you think a market will go, you should be able to answer, “I don’t know, but by following the market’s own action and my own analysis, then more often than not, I will be positioned appropriately – even if that position is one of standing aside.”

You had better have some protection in, like what is built into binary option trades, or stops behind our futures trades. And, when I get into profit, I’m taking some – I’m not going to let it become a loser – as many a LONG TIME trader can attest to – such as:

Douglas Zalesky 25-Plus-Year Trader (in his great article – “25 Trading Tips”):

Tip #4: Never Turn a Winner Into a Loser

“The market has rewarded you by moving in the direction of your position, however, you are not satisfied with a small winner. Thus you hold onto the trade in the hopes of a larger gain, only to watch the market turn and move against you. Of course, inevitably you now hesitate and the trade further deteriorates into a substantial loss.

Opportunity exists in the marketplace all of the time. Remember: No one trade should make or break your career. Don’t be greedy.”

I also love his tip (all 25 are great) # 19: Hit Singles Not Home Runs

“Just as I don’t know of any successful speculators, I don’t know of any trader who goes into a trade expecting to hit a home run and then actually having it happen. You should never approach a trade with the idea that it’s going to be a huge winner. Sometimes they turn out that way, but the times that I have hit a home run on a position is most definitely luck, not skill.”

No matter what type of trading you are doing, if you find someone who claims they KNOW where the market is going next, RUN the other way!

Categories: trading

Online Forex Trading Versus Online Stock Trading – Which Is Better?

Which is better indeed? While this article will not try to convince you of any investment option, it will lay down the cards on the table and you decide for yourself. Also, look at market reports on channels like the CNN or CNA (Channel News Asia) for information on Asia and the Western investment markets after you read this article; so you can better make a decision. Firstly, stock trading has always been a safe bet for many investors all over the world. After all, we had years of good projections and economic growth. This meant that companies and listed corporations were steadily growing – with consumer spending going up and the infrastructure in place, it was a high time for many investors who had opted for the stock market.

Furthermore, many brokers and companies were offering services like stock picking and stock options advice when you did sign up with them – so the support was always there. When the economy is up, stock trading is always there to make you a decent amount of money, but there are risks involved. Many people agree that there is a high level of risk and a great deal of market uncertainty with many portfolios simply because a lot of these companies that offer stock options are not 100% transparent. Furthermore, with stock trading, there are a lot of fiscal obligations that you must concur. When trading, you have to worry about the commission of the broker or the firm, as well as taxation on items like dividends, profits and even capital gains within the market itself.

Moreover, for those who are doing it from home, you must take into account risks like currency risks and even obligations like paying for the access to the stock market. Now with the credit crunch and worsening economy in full swing, it is even harder to predict the longevity of many companies and stock prices. Forex is slightly different as long as the economy is still run by neo liberalist principles of the paper trade. Currency is still king in terms of making money, because in this market, investors can make money on both sides of the swing. Also, your incurred costs are limited only to paying the broker.

There is limited taxation and fiscal obligations on trading in the paper trade market. Also, stock trading is not a liquid market, which means decisions do not happen in real time. I think this is the biggest selling point of the Forex market, which allows for the investor to pull out and liquidate his investment within minutes of putting the order in. For people who thrive on watching the market and making predictions, this is a very important and a selling point. Yes, Forex is not without its risks, due to the complications of the market and the fact that even tiny variables and the potential of things happening can affect the market. As with any investment trading, you need to be careful with your decisions and watch the market and world events. But will less risk, Forex is a good option for people now.

Categories: profit

Forex Trading – Maintain Your Forex Success

There are good times and bad times. As this is an accepted fact, you should still strive to balance it in terms of keeping your gains occur more frequently than your losses. In forex trading, it is oftentimes hard to maintain that leverage, but what you can do is to learn from what you have previously experienced. What factors contributed to your loss? How did your decision-making affect the gain in your investment? Being able to pinpoint the strengths and weaknesses that you have displayed during the last trades can significantly tip the scale more to your side, and this goes with learning from the strategies of other traders as well.

To place yourself in the roster of the small percentage of traders that profit from forex trading, you have to know that expert traders never cease to educate themselves. A common pitfall of those who have started to earn a few is to rely that the success will go on, but in reality, the tables can be turned anytime. Also maintain and follow a forex trading system. This helps you keep objective and disciplined when it comes to investing. Money management is an important skill that every trader should have. This keeps you running even through your losses because you can wisely set the limit of an investment that you can afford to lose should the market not be favourable to you.

Forex trading is easy; it is trading well that makes it difficult. In dealing with losses and gains, you have to remember to keep your mind ahead of your emotions.

Categories: money

How Trading With A Forex Demo Account Can Harm Your Trading

Forex demo accounts can be a great way to learn to trade the forex markets. But they can also reinforce bad habits. These habits are why most traders never experience success with forex trading.

Practice is very important when learning to trade. One of the great things about the forex is easy access to demo accounts to practice on. A lot of times a new trade will sign up for a demo and start practicing trading.

But just because they are practicing doesn’t mean they are practicing the right things. In order to be an effective trader you must learn good trading habits. Unfortunately most traders start practicing without a clear objective of what they should be learning and all they end up doing is reinforcing habits that usually result in poor trading performance.

Most traders end up spinning their wheels trying to learn to trade but no matter what strategy they use they never get the results that successful traders are getting using the same strategy. They end up jumping from one strategy to the next looking for the one that will work. They focus on the strategy but never focus on developing good trading habits.

When practicing with a demo account it’s best if a trader can forget about which strategy is best and if the demo is making a profit or losing money. Instead the trader should focus on trading with consistency like a machine. Instead of focusing on the profit or loss of a trade, focus on whether you executed the trade with your trading rules and without emotion or your opinions making you stray from your trading rules.

Even if your demo is losing money, as long as you are trading your strategy like a machine and following your trading rules, you have accomplished what mots traders never will.

At that point you can then start adjusting your strategy so that your trades will make a profit or seeking a strategy that will make a profit. As long as you maintain your disciplined trading habits you will be able to make a profit with any good trading strategy.

Categories: trading

Forex Trading Platforms are Helpful for Planned Investments With Long Term Benefits

Unlike the stock markets where shares of various companies can be bought and sold in the open market floor, the forex trading is done only through the internet portals. These are the forex trading platforms, where people need to register themselves first and then go for the trading. Millions of people are doing this so that they can put their money in different pairs of currencies.

People can become members in the different platforms and take advantage of these to put out their money. But doing so will require utmost care and attention, so that they are not amidst losses continuously. One cannot deny the fact that the volatility of the foreign currency exchange market is such that the losses can be common. But the target of the investors should be to get the profits at the end of a certain period of time. This is what counts in the long run and this is what the investors should target at the end of the specified time.

Many people are therefore becoming members of the forex trading platforms and taking advantage of the different forex trading strategies that are being provided. Such an investment pattern requires proper planning and strategy to work out the profits. The rise and fall in the values of individual currencies and their ratios are required to be known. The strategies are important because they help in the understanding of the different values and their changes. If they are aware of the values, they will be able to get their forex trading strategies right, thereby increasing the probability to better their profit margins.

To aid in the investments of people, the platforms also provide the forex trading software, which are incorporated in the website itself. While logged in the account, people can take the help of the software and get to know the indicators. Forex indicators are kind of signals which will tell people to invest at a certain value of the currency pairs. There are also the facilities of automated forex trading so that people are now free to do their work. This system of trading helps in making the strike at the call and put values as ordered or set by the customers.

Even in the absence of the investors, the automated forex trading would be working in the background in order to carry out the investments. To bring in more customers, the forex trading software and automated forex trading have helped a lot. It not only gives an assurance to the customers but is also able to draw more investors to the platforms due to the certainty of long term profits.

Forex affiliate programs are also being provided by the brokers so that people can become affiliate partners and draw more customers through their portals. By having such facilities in forex, people are able to understand the intricacies of such a volatile trade market. With constant attention and practice of these facilities, people become confident to take risks. This allows them to earn profits gradually and after a period of time, they are so well versed that they can know when to make a call or put by using their money.

Categories: profit

Forex Trading Mathematical Algorithms – Finding The Best For Long Term Consistent Profits

As computers and software applications have become more powerful, traders develop complex mathematical algorithms to help them increase profits and decrease risk. Let’s take a look at them in more detail…

The first point to consider is this – in the last 30 years of trading the number of traders who lose (95%) and the number who win (5%), has remained the same over the years DESPITE all the advances we have seen in technology.

This leads to a compelling conclusion; the appliance of complex, mathematical equations to Forex has not helped increase the number of winners.

Odds and Certainties

The reason it has not helped is that Forex markets cannot be predicted with mathematics, because they are simply an odds based market and don’t move to any mathematical equation and if something doesn’t move to a mathematical objective equation you won’t make money with mathematics! This doesn’t mean you can’t make money, you can but you need to think simple rather than complex, as simple systems are better for trading the odds.

Simple Systems Work Best

Simple systems work best in Forex trading and always will because they are more robust than complex ones have fewer elements to break and when you are trading odds not certainties that’s all you need.

A System with 1 Rule that’s Made Countless Millions

I knew a trader once who make a million dollars with a 1 parameter system based on standard deviation and I have used another system outlined below which has worked for 20 years and made me and other traders huge profits. This one is called the 4 Week rule by trading legend Richard Donchian – here is the rule.

Buy a new 4 week high on a Forex chart and hold the position. Wait for a 4 week low to be exceeded and then take out the long and go short. Keep doing this, as 4 week highs and lows are hit and always maintain a position in the market.

Simple? Yes it is – but try it for yourself and you will see how much money it makes.

Using NASA Technology to beat the Market

I stated using the 4 Week rule after trying an expert system which had been developed by an ex NASA engineer and I was taken in! Hey this guy helped put people into space, so imagine what his Forex trading system could do in the market! Now his system was clever, lots of parameters and rules and the software looked lovely but guess what happened?

You guessed it – the so called Forex Expert Advisor turned my account to dust in about 3 weeks.

The Limitations of Technology in Forex

We marvel at how technology enriches our lives and we think it can do the same in Forex – but it can’t and never will, because in Forex you deal with odds not mathematical certainties and keeping it simple, is actually the way to enjoy currency trading success.

Categories: money

Currency Trading Pitfalls – How To Avoid The Top 5 Mistakes In Forex Trading

The currency trading market offers many great opportunities to make money. However, before you jump into the financial forex market, you’ll need to proceed with caution and not to rush into it. Here are some of the mistakes or pitfalls you must avoid in order to protect your life savings:

1. Over Leverage

This is a one of the most common mistakes committed by forex traders, especially those who are relatively new to trade the forex financial market. If you can only afford $5000, do not trade $10,000. Trade what you can afford to lose. Do not put all your entire savings at risk. Just like any business, losses will happen, but you need to control your risks and protect your capital.

2. Over Confidence

Don’t ever forget that the forex market is smarter than you. So don’t ever think you can look into a crystal ball and see where it’s going to happen. Otherwise, your capital will be wiped out pretty quickly and your confidence level adversely affected. You will need to do your homework, study the market trends to understand what the market is doing. Some good forex indicators will tell you what the forex financial market is up to. Get a good simple forex trading system that works and follow it closely. Do not ever try to outsmart the market by acting before your forex trading signals tells you to.

3. Over Attach To The Trade

If you have entered a forex trade and is losing you money, get out of it. This is another common mistake of people trading as they become attached to the trade or think it will eventually turn around. If it’s losing, it’s a loser. The best way to do this is to set a stop loss for every trade you enter. If you’re wrong in the trade and got taken out by the stop loss, just move on and focus on the next currency trade.

4. Over Bid

Another major mistake some forex traders make is to chase the price. They entered the market after the currency pair has already made large moves and is prone to price correction. There is no place in the forex trading market for emotional traders. If you allow your emotions to dictate your trading, you’ll end up with an empty account. Getting emotional is something you want to avoid at all costs. If the price is unfavorable, do not trade but wait for the next opportunity. Remember, good traders control risk, inexperienced traders chase gains.

5. Over To You, Coach

The most successful forex traders usually find themselves a good coach or mentor. This can be a friend who has been trading forex for quite some time or a forex trader who is willing to share his knowledge and experience. Learn as much as you can from him. Study his forex trading guide and learn how he trade the forex. Do demo trading on the forex trading strategies taught to test it out. And don’t hesitate to ask him questions.

Forex trading is a long term business and you need to spend time and effort to master it. Successful traders are those who are patient with the market and themselves. Remember, only serious traders can make serious money. Are you serious enough to trade profitably?

Categories: trading

Fap Turbo ? It Works

Here’s my review of Fap Turbo. I thought of sharing my experience with other people because Fap Turbo seems to be a welcome change from all those scams and fakes that do nothing more than confuse a new user. There are a couple of things that really impressed me in Fap Turbo, and for the benefit of other people like me who have been looking for a reliable and effective trading robot since long, here it is. In my opinion, Fap Turbo does what it claims. Of course I want to get rich overnight, but I know there’s no way that can happen, and neither does the robot claim to do that for you. What wins my appreciation is the way it delivers gains ? small and regular. It doesn’t indulge in the typical flashy in-your-face advertising on the back of impossible claims. That’s an indication of not being a scam. With the dozens of products, applications and robots in the market today, I think it’s getting increasingly harder to hit upon the right product. As a newbie, I’d rather stick to the tried and tested Fap Turbo rather than experiment and lose money ? not something that I really can’t afford to do. At least I know for sure about Fap Turbo and what it can deliver. This certainty is what I like the best.

Fap Turbo works differently. With a regular robot, you will need to stare into the computer screen all the time. Otherwise, you could lose out on a few big trades if you’re offline, or not at your screen. I really like the way Fap Turbo works as it offers a cool alternative. They let you continue to make trades even when you’re offline since they have some sort of a server arrangement. I don’t understand how they do it, but it’s cool. There’s a $35 subscription option, which I have been using for the last 90 days. It’s good and worth a try.

Categories: profit

Fap Turbo – A Forex Product Software

While there are plenty of auto-trading software products on the market, they do not all offer the same tools or rates of success. One of these is the FAP Turbo Forex software. In order to see if it is worth your hard-earned money, this article will examine the various resources that it provides and determine if it is a good addition to your financial trading strategy. Looking at the individual aspects of this system will provide a clear understanding of the benefits and potential drawbacks that come along with purchasing and using this product.

Upon looking into the structure of FAP Turbo Forex software, it becomes obvious that this product is all about choices. It provides two separate strategies. One of which is short-term and the other is long-term. However, you can also choose to combine these two strategies in order to make a customized plan that will hopefully serve you even better than with any pre-fabricated method. This product also allows you to access its services either from the web or directly from your computer. This makes sure that it will work with your lifestyle, trading for you whenever and wherever you may happen to find yourself on any given day.

The FAP Turbo Forex software also has a number of security features, making it a good choice for beginning traders. In getting started, you have the ability to run the software in demo mode so as to get comfortable with the format and with trading on the system in general. This ensures that mistakes will be kept to a minimum when trading with actual funds. Also, no matter which of the 3 options you choose when deciding on a trading strategy, there is a safeguard that is put into place that prevents any transactions from occurring unless the software is able to predict the market with a high rate of accuracy. Luckily, instead of forgoing the transaction altogether, the software simply waits until a less risky situation and then proceeds with the transaction.

The only real drawback to this piece of financial software is that you either need to be logged in via the web, on your desktop, or pay for their hosting service, in order for it to proceed with your trading activity. However, as most of us are on the computer more often than not, this is typically not a problem and the benefits of FAP Turbo Forex software far outweigh any possible inconvenience that this detail may cause.

Categories: money

Forex Software Dramatically Reduces Risk

Why pick the stock market? Is everyone’s memory so short that 1929 has been forgotten? Do these innocents want to get taken to the cleaners, playing an expert’s game?

No. Times have changed here and the word is getting around. Millions of people had their first investment experience with war bonds, and found it good. The bonds were issued in denominations small enough for people to handle easily. There was no fluctuation in their price, so you could put them away and forget them. They grew in value steadily, and could be cashed without fuss or trouble. If these conditions could be duplicated in the stock market, investment might make very good sense.

Of course, in the market, price fluctuation was inevitable. Common stock could never have the stability of a Government obligation like the E-bond. Still, it had become a very respectable piece of merchandise. Workers learned that their union pension funds included large blocks of sound common stocks. And frequently the company they worked for offered them an opportunity to acquire its stock through one sort of monthly purchase plan or another. Various state commissions took a fresh look and decided that common stocks were safe enough to be incorporated in widows’ and orphans’ trust funds, traditionally the most conservative type of portfolio.

And, on top of everything else, common stocks in the rising post war market were paying off well. Interest on savings accounts was no more than 3?3? per cent. Stocks were paying at least 4, often 5, and in some instances 6 and 7. When they paid less than that, it was usually because their price had appreciated, which reduced the yield but pleasantly increased value. Nothing wrong with that either. There were nuts and raisins in the cake, as well: splits, stock dividends, extra cash returns.

Furthermore, the market was coming within the reach of the person of modest means. By monthly payments to a mu?tual fund one could acquire a pro rata share of a massive stock portfolio whose individual items would have been far too expensive to buy. And in 1954, the New York stock exchange pioneered the revolutionary Monthly Investment Plan (See Chapter 11) which permits purchase of fractions of shares of stock, regardless of price, on a regular, cumulative basis. Brokers awakened to the great untapped army of potential investors, smilingly invited the small account, and

spent thousands of man hours educating anyone who would listen in the essentials of common-stock investment.

But all of this would have had no effect if people had not begun to trust the market. This trust was a long time coming. The exchanges actually had been laboring mightily since the 1929 debacle to put their house in order and to persuade people of the honesty and sobriety of their operation.

But few listened except the professionals, the sophisticated traders, and the institutional buyers who didn’t need to be told. Still, the effort went on. Federal and state regulations went into effect; floor procedures were tightened by the exchanges themselves to outlaw manipulation and sharp practice by insiders. By the time the postwar horde descended, the market had been swept clean and was ready to do business.

The people had cash. The merchandise was attractive. And the market place was open, aboveboard, and bright with sunlight. By this sequence, it appears, some 12,500,000 Americans have become investors.

This could be mirrored in Forex, where it is possible to obtain free software that can help predict future price movements with great accuracy, reducing risks for all investors.