Wednesday, November 4, 2009

A Few Fx Trading Secrets

By John Eather

Forex or foreign currency exchange is the largest market for trading in the world and to be successful at forex trading you can use some fx trading secrets. The way that forex trading works is through currency pairs. Forex trading can be done anywhere in the world and is not done around a central clock like the stock market. Most forex currency pairs are set against the US dollar.

You may be able to learn these fx trading secrets in time but why spend time learning when you can find them yourself and make use of them immediately. Even if you are doing well using forex trading most inexperienced traders do not follow a good trading system.

Most trading systems will display why trading in a specific trend is important or what type of time frame you need to be aware of. To be successful with forex trading you need to trade with the trend.

The first step to this is trading in the direction of the trend on a four-hour chart. Most individuals make trades based on a 1, 5 or even 15-minute chart. You can still make short-term trades but you should base them off of the four-hour chart. You will quickly find that your trades will always come back in your favor. You can also use the 4-hour trade so you don't have to constantly be in front of the computer.

To make the most from your trades you want to start small. If you notice the currency pair doing well then you can add on at specific times. By starting small you are minimizing the risk that is involved with making a trade. There is always a risk as there is always the possible of the currency pair dropping, even if it is following an upward trend. To maximize profits you can start small and then do add-ons as the trend continues. - 23309

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Technical Analysis Stock Picks

By Michael Swanson

Have you been investing in the stock market? Are your stock picks not performing as well as you had hoped? If you are not using a combination of fundamental and technical analysis when you are making investment decisions, this may explain why you are not maximizing the profits you are looking for.

Everyone knows that the idea behind investing in the stock market is to find stocks which will increase in value. If you sell a stock at a higher value, you make money. If your stock's value decreases you lose money, and nobody wants to lose money. By analyzing the stock market, the idea is that you will find those stocks which make money and avoid ones that will lose money.

Because the stock market is constantly changing, navigating the ups and downs can be difficult. Using a combination of two different financial analysis methods can be an excellent way to decipher the information you are receiving and make accurate decisions about which are the best investments to make.

The two schools of financial analysis are fundamental analysis and technical analysis. One, fundamental analysis, tends to look more at the company itself and its financial health. They use a variety of different accounting reports and financial information sources in order to assess the viability of a given company and determine whether it would make a good investment. This is good, but it tends to overlook exterior influences which can affect any company.

Technical analysis is more outward looking and reviews the behavior of the market overall. It looks at information such as volume and price of the shares being traded. It tends to overlook a lot of the internal financial information when it is making its decisions.

If you are considering investing, keep in mind that financial analysis is a skill which takes quite a lot of time to develop. You should not try to make massive investment decisions without some sort of input from a qualified financial adviser who can show you how to maximize the money making potential of your investment choices. - 23309

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Traders Not Trades Bring Wins or Losses

By Patrick Deaton

You know the difference between winning and losing trades -- we've all experienced both and know the joy and the pain well.

With trading losses, the majority of the time the shortfall comes from the trader and no the trading strategy.

Well, yes there is a good chance this described you. In this article I will talk about ways to change all that. Your stop loss order is a really good place to start, this should be decided before you place an order.

You can't delve into the topic of position entry thoroughly without speaking of stops. The question is, "Why are stop losses used by so few investors?" If not using stops is a weakness for you then you want this info. This info could mean the difference between on time retirement with a fat nest egg or just 'getting by' at a later retirement date.

By planning and placing stops you plan to win, but prepare to take losses and still live to trade another day. So we need to look at the trader psychology around taking losses.

Every pro trader has to have a point in their minds denoting when they will get out, before they will get in. This has to be known before hand so that when the moment comes they can get out quick. This is a down-home basic knowledge the each pro-trader has to have.

Are you able to respond to these questions?

1.) What are the indicators for staying put, or getting out?

2.) When a stock is losing, do you have a guide that lets you know when to sell?

3.) Do you have a rule of when to move your stop to break-even?

If the answers to these questions elude you, you are not unique. What it says though, is that you need to get some regulations set for yourself, particularly when going to short stocks. But these trading rules won't amount to a hill of beans if they aren't used. If you aren't using them you need discover why it is you don't manage your risks in a professional and non passive style.

There are 2 base reasons why Investors won't take a loss:

1. Admit they are wrong? No Way!

Though not really avoidable, a loss is seen as a personal failure. This is a painful thing to admit for a large portion of traders, like it illustrates failure at life. It also takes away from their positive self image.

A trader like this experiences real pain from the loss, and would rather deny it than fess up to the fact that it is giving them the pain. Quite often it requires a total loss before he can begin to change. To quit trading is the only other alternative.

2. Taking that large of a hit would damage their portfolio greater than it can recover from.

The loss is a real loss, it is not solely on paper, the stock/bond option has the value of the quote, even if you don't see it.

Both of these examples are a form of self-delusion that millions of investors, both large and small, suffer from. Just look at AIG, Merrill Lynch, WAMU, Lehman, etc. ... and you can take comfort in the fact that self-delusion is no respecter of income bracket or social standing.

Are you feeling uncomfortable with what I am saying?... or powerless, or angry? Good! That is a sign that you are capable of making the changes you need to.

A winning trader will have a different view of losses than a losing trader. He doesn't take it personally. He takes it as a sign that he needs to revamp his approach or execution no that it is a sign that he as a person is lacking.

Separating themselves from what they are doing is what a winning trader does. Either they know it or learn that the problem is either in their approach or their skills not in their worth as a human being. Changing the pain of a loss into a motivational factor that increases their quest to be a better trader.

Both are learned responses and within your control. The opportunity for growth from the pain of losses is the same. It's what we do with the emotional pain of a loss that matters, not the loss itself.

Stick with my proven ETF Trend Trading system and make winning a habit. Study; ask questions and monitor your position size relative to your portfolio and you will end up on the winning side more often than not.

My constant reminders about proper stops and risks are one of the strongest parts of my one year mentorship program. Even after you understand my system 100%, it's still good to hear me tell you, "Don't move your stop" or "Be sure to take profits when the system says to, not too early and not too late." Most my students like the mentorship part as much or even more than the course itself. - 23309

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Five Steps for Setting Up a Forex Trading System for Maximum Profits

By Mark Solomon

Humans have little chance against a well programmed forex trading system. All the key decisions including currency pairs, entry points, exit intervals, loan to equity for each trade, and the limit orders can be instantly executed with a programmed forex trading system. Though currency or fx trading systems are complex beasts, even setting up the basics of currency pairs like CHF/GBP, how high to borrow from 1 to 75, etc., or when to enter and exit the trade can be enough to make the software pay for itself. By quickly producing orders that would require precious minutes if done manually, a forex trading system can lock in profits and prevent or cut loses in an instant. Only the programming of the forex trading system software must be tuned to assure it is a productive rather than a destructive tool

By following these steps, forex trading system software can be configured and employed safely and more than likely, profitably.

1. Take the forex trading strategy and write it down in single phases that define actions required. Analyzing for currency pairs to trade could be one step.

2. Define the currency or forex trading method recorded in discrete phases such as analysis, deciding tradable currencies, trends to ride, how much to borrow for each trade, then deciding where to enter and where to close the trade.

3. Place the steps defining the currency trading system or fx trading system into a table in exact order of execution. Often this will result in repeated blocks for analyzing positions, shifting stops for each trading position, and changing exit points. This is the nature of a forex trading system. Currency trading is fast cycle trading and requires an iterative approach.

4. Having a list or table of steps that clearly state how the forex trading system will function is the easy part. Next, this information must be set up in the trading software. Often these trading software systems have drop down menus for setting currency pairs, margin amounts, etc. This can be manually triggered or automatically selected based on analysis within the system. That analysis function for triggering trades requires the most brain work and is where the profit or losses will come from. A very basic but still profitable method uses trend following strategies of setting a limit and hopping on the trade if a currency pair breaks the limit. For instance if the USD trades below a certain level against the YEN, then sell USD and buy YEN. While an old method, it is an effective way to jump on a trend in progress.

5. Testing the system is the most important step. Even after all the decision and analysis criteria are coded into the system, there are conditions the software does not decision criteria for perhaps, or possibly it is missing too many profit opportunities. In either case, untested currency trading systems can put a portfolio at risk. Test and test again. - 23309

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Do You Want To Explorer The Automated Forex Trading Concept For Forex Trading?

By Jo Adams

There are so numerous automated forex systems today that have truly aided forex trading. You can now trade forex without having to spend all your time into it; this ease in trading forex wouldn't have been doable if not for the advent of robots. One of the FX trading robots that will aid your forex trading is the Ivybot forex robot; it has some characteristics that are peculiar to it. What Are The characteristics of Ivybot?

This automated currency trading robot trades 4 currency pairs and utilizes individual expert advisors for each of the 4 currency pair traded. Owing to the high volatility of the currency market, this automated system's expert advisors are generally updated to meet the trend of events in the forex market. Indeed, the forex trading industry has undergone technological alters via the emergence of lots of auto trading systems known as robots or forex advisors and Ivybot is one of them that could be trusted to deliver good result.

The work of an authority advisor is to immediately place trade on behalf of the trader; they are hand-free trading tools that can operate from any computer all around the globe. These automated systems watches and then places trade for the trader, using certain tactics and parameters that help them to perform mostly rewarding trade while keeping the chances of loss trade notably minimal; this is also how the Ivybot forex robot system functions.

Ivybot expert advisor works with plan and sticks to such plans in order to generate the absolute results. It runs 24/7. Besides, this forex auto system offers real life proof and also back tests. A forex robot that shows back test and also real life proof is a good one to look at. This is why most currency merchants have resorted to the usage of this expert advisor for their trading.

If there's a time when trading forex has ever been enjoyable, stress-free and more profitable; it is nowadays of auto FX trading and Ivybot has contributed immensely alongside other good auto currency trading systems, in achieving this feat. figure out more about this forex expert advisor. - 23309

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