Wednesday, November 18, 2009

Trading System (Part I)

By Ahmad Hassam

Using a mechanical trading system not only helps traders to make decisions and increase profits but it also provides great psychological comfort to the traders. At one point in your trading career that might come soon rather than later, you would want to switch over to a mechanical trading system.

You will realize the necessity of switching over to the systems trade in order to lower the psychological pressure experienced when making every market transaction. You will find most of the trader using a trading system approach to trading. Some of them may use a discrete trading system while others prefer a mechanical trading system.

Once you have a mechanical trading system you can easily develop it into an automated trading system. The mechanical trading system set of rules may be translated into a computer program for automated trading. However, the mechanical trading system lacks fundamental analysis capacity.

The creator of such a mechanical trading system then becomes just another user of the trading system monitoring the computer generated signals. The trading system then generates trading signals that can be used by traders having access to the trading system.

These trading systems may be taken as grey and black boxes. Their prices might vary from a few hundred dollars to hundred of thousands of dollars. Many traders over their trading careers develop their own trading systems. Besides the traders using their own trading systems, there are now many actively developed trading systems for sale as computer programs.

Sometimes these trading systems are developed for big banks and corporations. The most significant thing about these programs is that the traders should be able to accomplish transactions in accordance with the signals generated by the trading system.

However, it is very difficult for a mechanical trading system to cope with different market conditions. This is the most serious flaw in these trading systems. When the market conditions change, these trading systems start generating erroneous trading signals. Majority of the successful individual traders use self developed mechanical trading systems.

For example, many trading systems that are satisfactory in trending conditions become highly ineffective in nontrending environment. Change of market behavior leads to negative results from a previously effective trading system which obviously would require replacement.

These automated trading systems require thorough testing under different market conditions before they can be used in actual trading. One of the ways is to backtest them with the historical market data. Backtesting is now an integral part of any mechanical trading system's performance evaluation. However, there is no substitute for live performance test. The most common disadvantage of these trading systems is the negative balance between he profitable and unprofitable trades. Many trading systems now depend on complex mathematical formula which is not understandable by the trader if the trader is not the author of the trading system.

Obviously the trading system can only be profitable in the long run if the ratio of the profitable trades is higher than the non-profitable trades. In other words the average profit of each profitable transaction is greater than the average loss of each unprofitable transaction.

As a user of a mechanical trading system your options are limited. The trader must accurately and unconditionally follow the trading system without making any attempt to adjust it to the market conditions. Making correction in any mechanical trading system in the process of the trade is almost impossible until and unless you are the developer of that trading system. This is one of the reasons why you need to develop your own trading system. - 23309

About the Author:

Forex Made Easy: Starting Out in Trading

By Bart Icles

Foreign exchange trading is a very attractive market that practically anyone from anywhere can enter. The rewards it offers are truly tempting and many beginners tend to forget the unpredictability of this market. But this should not stop you from venturing into this market. What you simply need is to understand the basics of the market so you can avoid the most common mistakes that beginners do. In this manner, you can help keep yourself from losing most of your investments in your first few trading stints. While it is true that foreign exchange concepts can be confusing, you will able to make your forex education easier through forex made easy trainings.

These forex made easy trainings are all over the internet. These tutorials and guides will help you better understand the different concepts of foreign currency trading, and they typically use terms that any average Joe can understand. In this manner, you will be able to have a better view of the market without having to be confused with all the various terms used in trading.

Once you have a good handle of what the market is and what you can expect from it, you will be able to develop your own trading strategies. In many cases, beginners would tend to place all their money on a single lot and expect that their investment will be doubled at the end of the day. However, this is not how the foreign currency market works. You have to remember that you are trading currencies and prices can change at any hour of the day. It would therefore be more advantageous for you if you try to weigh the risks and benefits before you put in your money on a certain currency pair.

One of the most important things you will learn in a foreign exchange trading tutorial or guide is that this form of trading does not involve the exchange of any physical product. Trading happens electronically and is often referred to as over the counter or inter-bank transactions. This simply means you need not physically be in a central marketplace before you can participate in trading. All you would need is your computer and an internet access.

There are so many things that you can learn from forex made easy tutorials and guides. But what you must understand is that it is not merely on the number of concepts you are able to learn but on how you deeply you are able to appreciate them so you can effectively apply what you have learned to actual trading. - 23309

About the Author:

Which Currency Trading Robot Makes Money, Or Do They?

By Dirk Andersen

Maybe you've heard it said that there's nothing better once you've had the best. Well, if you don't have the best of something, how do you get it? Let's just say it takes more than luck. IN fact, luck can only get you so far without the help of an eight-letter word: R-e-s-e-a-r-c-h. Only research will help you find the best of anything you're looking for. Only research will show you where to get it, how much it costs, and indeed, what it is you're looking for in the first place. And when you want to invest in the Forex market, only research will point you toward the system that's best for you.

What, then, is the first step you should take in your research? One of the first things you should do is to look at online reviews about different Forex trading systems. When you read reviews, try to find a common thread running through them. Doing so will surely help you to form your own conclusions. After all, some reviews are written by Forex trading experts, while others are written by amateurs who may not know next to anything at all. Take, for instance, the issue of robot systems.

It was once extremely difficult for the average person to trade in the currency markets in days gone by. Now, technology has made it easier than ever before. Anybody can do it even if they might not know as much as they should. How is this possible? Through software programs called trading robots. But while trading robots can be extremely helpful to the average Joe in making a currency trade, there are so many programs out there these days that you might not find it easy to decide which one is the best for you.

The Forex currency market is probably the most liquid investment in the world, which is one of the reasons why it is also one of the most popular. Anyone with even a little bit of spare cash can invest in it and, with any luck, become an instant millionaire. Of course, one can also lose huge sums of money as well, which is why so many people turn to robots. Among the most popular of these, just to name a few, include names like Forex MegaDroid, IvyBot, FAP Turbo and Rebellion.

Want to get into the Forex currency market? If so, you must carefully decide what robot trading system works best for you. What's the best way to do this? You need more than mere luck. It takes research, research, research! The decision you make could spell the difference between astonishing success and financial ruin. - 23309

About the Author:

Getting Your Advanced Cash Settlement

By Tiger Claire

There are times when something goes amiss thus we are compelled to file a claim in court versus an insurance company or other entities that has caused us grave distress and damage because of their refusal to participate, among other things.

While we are battling for this right in court however, our financial situation might not pick up until such time that we have won our case. It is during these moments that we are most vulnerable state and this is the ripe opportunity for these companies to retaliate. What happens then is that they instigate an out-of-court settlement that is lesser than our claim should we win the case.

This is where Advance Cash Settlement corporations come into play.

WHAT IS ADVANCED CASH SETTLEMENT?

In brief, advanced cash settlements is the sum of money given by certain funding companies to plaintiffs awaiting the decision on their claims. The amount we obtain may then help us to go on with our case; and also continue on with our lives without fear of where to obtain the money to pay for things such as bills and other obligations.

There are funding companies that give advance cash settlements that leave the plaintiff free from any obligations should the lawsuit lose in court. But generally, there is an interest rate of up to five percent; accrued per month, added to the total amount of the obtained advanced cash settlement. The entire amount is due only after the case has been won and money awarded to the plaintiff.

ADVANCE CASH SETTLEMENT COMPANIES

If you are looking for the perfect financing institution to help you obtain an advance cash settlement; there are a number of them that you can find online. Over the internet, you can learn all about getting an advance cash settlement, interest percentages and other obligations that might be required from you once you consent to their Terms and Conditions.

It's wise to carefully study all your alternatives first prior to picking one that you deem would best suit your interests. Even as your need for cash may be urgent, agreeing to something you don't completely comprehend might put you in bigger financial troubles than the one you are in at the moment.

Nevertheless, after you've made your choice, you can readily apply for an advance cash settlement over the internet and processing is actually done faster online. - 23309

About the Author:

Important Facts Any Investor Needs To Know: Buying Tax Lien Foreclosure Properties

By Nathan Williams

No Risk Investor provides education and step-by-step instruction in creative real estate investing strategies for the advanced investor and the beginner alike. The most important thing any investor can do to take the risk out of investing is to have an understanding of the strategy principles, potential pitfalls, and how to effectively turn a profit. No Risk Investor provides members with the necessary resources any investor would like to have in their toolbox in order to be successful.

Our students can discuss tax lien investing topics in our Investor Forum where they can interact with other students. They can also view our library of training videos in the Training Center and even consult the Auction Calendar in the Tax Lien Marketplace to plan and execute their individual investing strategy.

Do you know how to access your County's tax lien and deed county lists? The Tax Lien Marketplace is the place where you can view and purchase pre-evaluated tax foreclosure properties from our Tax Property List. Attend County online property tax sales and much, much more through the Tax Lien Marketplace.

No Risk Investor realizes the reasons people want to learn how to invest in Tax Lien Certificates and Tax Deeds in the first place--they want to get into property. They understand that it's hard to get into that first property but also how important it is to get some real assets into your portfolio. It's not only important to create cash flow but also to acquire assets. Although it's important that you learn these steps on your own, No Risk Investor also offers pre-evaluated properties for sale. Our team of skilled investors researches and buys properties specifically to help and inform our members.

Every member of No Risk Investor has the opportunity to buy tax foreclosure properties right away. Land is available today for under $1,000 and houses for under $5,000. These homes are complete with a BPO and necessary information to help the investor make an informed purchase. Our houses are given with a Warranty Deed, meaning when you buy a house you receive the deed FREE AND CLEAR. These properties are bought through a tax deed sale and other real estate strategies and brought directly to you. Call or email us today! - 23309

About the Author: