Volatility Factor

Monday, January 30, 2012

Forex Automated Trading

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Forex Expert Advisors - The Forex Robot Trader Survival Guide




Ever since the first Forex robot trader was put up for sale on the internet, there have been a real explosion of websites promoting the latest and greatest Forex expert advisors that are guaranteed to make you a millionaire overnight. Yes, I know I'm exaggerating just a little bit more than they are, but you know what I'm talking about. Forex automatic trading hasn't exactly delivered on our high hopes since it began, and many people have given up on Forex robot traders altogether.

Here's the problem: most people just aren't trained in the basics of running and maintaining a Forex robot trader. It's not your fault, because most FX trading system makers go around lying through their teeth that you can just buy their Forex expert advisors and plug it in with no specialized knowledge required. By the end of this article, you will know exactly what you need to know to survive the pitfalls that plague most of the Forex expert advisors out there.

Most Forex robot traders are designed with settings that are optimized for sales, not long term profits. That's why they fail miserably not long after you plug them in. As a result, people end up going from the hot new FX trading system to the next, searching for the holy grail that will be better than the last one. Of course, they'll go after the Forex expert advisors with the highest returns, not realizing that it's precisely because it's too aggressive that it ends up failing so miserably.

If you really want a Forex robot trader that will go the distance, don't be too quick to replace your existing FX trading system with a new one. Instead, you can just make a few minor changes to your existing settings to reduce the risks and rewards appropriately to ensure a consistent and stable, albeit most, return each month. Once you're confident enough in doing so, then you can take the next step and combine multiple Forex robot traders to further reduce the risks through diversification.

Once you've optimized your FX trading system, that's not the end. In fact, it's only the beginning. Optimizing your Forex trading robot so that it's in sync with what's going on in the markets is a regular activity that you should be doing, just like sending your car in for a service at every recommended milestone. By constantly tuning your Forex expert advisors to the ever shifting market conditions, you ensure that your FX trading system stays profitable month after month while everyone else's bites the dust prematurely. You'll save a fortune on Forex robot traders this way!

So if there's just one thing that you take out of this Forex Robot Trader Survival Guide, it's that optimizing your Forex robot trader is crucial to your long term profitability with any FX trading system. You'll want to optimize your system once in the beginning to bring down the risk levels, and then maintain the optimization on an ongoing basis to make sure that your FX trading system is always in tune with the markets.

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Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems. Desperate for a comprehensive guide that makes optimizing your Forex Robot Trader settings easy? Read Thad's Review of the highly recommended Guide To Getting Rich With Forex Robots.


Sunday, January 29, 2012

Different Types of Investments

Overall, there are three different kinds of investments. These include stocks, bonds, and cash. Sounds simple, right? Well, unfortunately, it gets very complicated from there. You see, each type of investment has numerous types of investments that fall under it.

There is quite a bit to learn about each different investment type. The stock market can be a big scary place for those who know little or nothing about investing. Fortunately, the amount of information that you need to learn has a direct relation to the type of investor that you are. There are also three types of investors: conservative, moderate, and aggressive. The different types of investments also cater to the two levels of risk tolerance: high risk and low risk.

Conservative investors often invest in cash. This means that they put their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments.

Moderate investors often invest in cash and bonds, and may dabble in the stock market. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate, providing that it is low risk real estate.

Aggressive investors commonly do most of their investing in the stock market, which is higher risk. They also tend to invest in business ventures as well as higher risk real estate. For instance, if an aggressive investor puts his or her money into an older apartment building, then invests more money renovating the property, they are running a risk. They expect to be able to rent the apartments out for more money than the apartments are currently worth – or to sell the entire property for a profit on their initial investments. In some cases, this works out just fine, and in other cases, it doesn’t. It’s a risk.

Before you start investing, it is very important that you learn about the different types of investments, and what those investments can do for you. Understand the risks involved, and pay attention to past trends as well. History does indeed repeat itself, and investors know this first hand!


Saturday, January 28, 2012

Foreign Exchange- The Largest Financial Market

Foreign exchange is the largest financial market and everyday new investors plan to jump in when they learn of the benefits, that is, high returns on investment which is as high as 20% per month a month. However, inexperience and over enthusiasm can only do bad and bring in losses so, you’ll need an experienced forex broker to help you put your money in the right place at the right time.

A forex broker with a cool head, preferably with a long list of satisfied clients and experience is the right guy.

Once you’ve found the right forex broker, all that’s to be done is, keep a regular check on your investments and it is advised to do it independently to avoid scams, because one can never know. So, how to find the right forex broker, is that the question?

Well, good news, this article was written just for you. In a market where cash flows faster than the F1 circuit, scams should come as no surprise even with reputed names and it’s your responsibility to be aware of where the money is and keep a check on the movement and earnings. Different people prefer different levels of risk and depending on that factor you might like to check how different forex broker work and then select the one from them. Even before you start the search, remember to strike down brokers promising windfalls, they are scams without doubt and same for brokers who are promising huge profits or no risk.

Trading always involves some form of risk because of the nature of the market which you must be prepared to incur. Make sure to check the spread of the forex broker as that’s where they earn their money, read their terms of service carefully and check the services offered. There might be a lot of services being offered upfront at no cost but you might be billed for them later on, so make sure to sign up only for the services that are required.

A forex broker is a long term partner for financial success so, make sure to research their background well. All that’s to be done is put in a little effort by checking the credibility of the forex broker or company upfront for peace of mind in long term.

Thursday, January 26, 2012

I have a good Idea- Learn Forex Trading

Most traders find that it is necessary to utilize a broker when making transactions on the FOREX exchange. A broker is a middleman that handles the actual buying and selling of orders for traders. The broker may be an individual or a company, they will often also offer advise and suggestions for their clients but they only execute orders based on the decision of the trader. Brokers earn their profit either through fees or commissions.

In the case of a FOREX broker they must be associated with a large financial institution to have access to the necessary funds for margin trades. When looking for a broker in the U.S. you need to be sure that the broker is registered as a Futures Commission Merchant by the Commodity Futures Trading Commission. This will allow you to protect yourself from fraud and abusive trade practices.

To start trading in the FOREX market you must open an account with a broker. There are a large, even overwhelming, number of brokers available on the internet. To pick the right broker yourself you need to be prepared to spend some time doing some research. This will help you understand the different services available from various brokers as well as their fees and commission structures.

As with anything else there is no better way to find out the truth about a broker than to talk to someone who actually uses them. Talk to anyone you know that is involved in the FOREX market and find out which broker they use. Then ask them what they like or dislike about their broker and any problems they may have had in dealing with them.

One way to test an online broker is to contact their help desk and see how quickly they respond to your questions and how helpful the answers are. Be sure to keep in mind thought that just as it is with many other things with FOREX brokers you may find that the level of pre-sales help is significantly better than the level of help you receive after you sign up for your account. While customer satisfaction and safety is of paramount importance they are just a couple of factors that you should pay attention to. Just as importantly is how fast the broker can execute a trade and what level of slippage you will experience with them.

Any broker that is online should provide automatic execution and be able to describe their slippage policy. They should be able to provide you detailed information on how much slippage you can expect in both normal and fast moving markets.

Another vital factor is your costs. What is the brokers spread? Is this spread fixed or can it vary. If you are looking at a mini-account do they use the same spread or do they have a higher spread. Are there any other fees or hidden costs involved? Be sure to keep in mind that the cheapest broker may not be the best, the broker that has slightly higher spreads might provide extra services that more than compensate for higher costs.

Everyone needs a margin account to effectively trade in the FOREX exchange, be sure to get the details of the broker's margin accounts and fully understand them before opening an account. What are the margin requirements? What method does the broker use to calculate margins? Does the margin vary depending on the day, the currency involved or event the account type? Many brokers have different margin policies for mini-accounts.

To be successful at trading FOREX you need good trading software and you need to be comfortable with using it. Most brokers will offer free practice accounts that function just like a real account and use the same software. Sign up for several of these and thoroughly test the software paying close attention to the reliability and speed especially when the market is moving quickly. Some other things to look into are minimum balance requirements, interest on balances, and what currencies can be traded. You should ask about lot sizes and irregular lots and be sure to see if the client accounts are insured and to what level.

Wednesday, January 25, 2012

Forex Currency Day Trading for beginners.

You sell your money to the bank (or other) and it allocates some interest payments to your savings account from its profits. Have you seen a Bank's profits? What do Banks do with your money? Well, they accumulate many small savers' money to lend to a borrower. The borrower buys his loan and repays it with added interest. The difference between interest rates is used by the institutions to pay salaries, pensions buy buildings and the usual business expenses.

THE WORLD PRESS occasionally reveals. "INSIDER DEALINGS" where an individual is accused of amassing huge profits from a fast book financial transaction that proves to be illegal. Sandwiched between "INSIDER TRADING" and interest are a range of products on sale by banks. Mortgages, shares bonds and so on . Very rich individuals and organizations do not leave all their wealth in savings accounts. They trade in art. gold, diamonds, huge properties huge film productions, rare cars and such. Some buy and sell consumer items such as coffee, tea etc.

So can individuals with a few hundreds of their own currency hope to buy and sell something for a smiling profit?

There's eBay. Antiques. Some gamble on a wide variety of events such as roulette, horse racing etc. On-line poker (5m PC users play every day) Now revealed. There is a legal ethical place where you take profits and not interest. You buy and sell without taking delivery. It's far from the bottom layer of the sandwich, situated above shares. It's Foreign Currency. Forex attracts about 2 trillion dollars a day in transactions. Someone may tell you that this makes dealings in shares small fry.

Forex used to be the exclusive realm of the world banks, but computerization replaced old style traders. Banks fund Forex Trading rooms, worldwide. Immediately, the reader identifies with a PC. Your machine may be capable of earning you a tiny, tiny part of the 2 trillion dollars. You may start with just a few hundred dollars of your own currency, but you essentially need some education, Powerful information to enable you to trade like a professional.

You, buy and sell money?

How can there be a risk if you buy something and don't sell it, until there's a higher price?

Forex systems eke out patterns of transactions, perhaps following the big loaves, expecting a crumb. Stories of $300 becoming $30,000 within a year: have you heard them?

Banks make profits because they trade from especially designed rooms. You do not need a degree in maths, experience or qualifications to make money 24/7 from anywhere in the world. Forex Day Trading is legal, ethical, exciting and profitable long term. A simple technique at the roulette wheel explains - the pattern is red, black, red, black - what would you choose next? That the pattern continues or is likely to finish?

Make a decision and wait for that pattern to appear on any table's display, then act. Whilst you may take the banks interest in one hand, the staff are elsewhere making huge profits.

Friday, January 20, 2012

A Comprehensive Forex Broker Register

A comprehensive forex broker list includes investment banks with dealing rooms, commercial banks with treasury operations, and online brokerages that serve a larger market. The investment banks with forex trading capabilities include Morgan Stanley, Merrill Lynch, Goldman Sachs, Salomon Smith Barney, Lehman Brothers, Credit Suisse First Boston, Deutsche Bank, JP Morgan, Prudential Securities and Bear Sterns.

Some of the brokerage services are not directly accessible for all customers. For example, inter-bank market dealers and treasury operations in commercial banks handle large customer orders themselves.

The top commercial banks in the Forex Broker List, having inter-bank and treasury operations, are JP Morgan Chase Bank, Bank of America, CitiBank, Wachovia Bank, Wells Fargo Bank, Fleet Bank, US Bank, HSBC Bank, Sun Trust Bank, Bank of New York, State Street, Chase Manhattan Bank, Key Bank, Branch Bank, PNC Bank, Lasalle Bank, South Trust Bank, MBNA America Bank, Fifth Third Bank. The online forex broker list of smaller forex accounts sees new entrants almost on a daily basis.

The online forex broker list includes Forex Capital Markets, MG Financial Group, CMS Forex, Global Forex Trading, GCI Forex Direct, Forex.com, GAIN Capital, Real time Forex SA (Geneva), Global Forex, Commerce Bank and Trust, FX Solutions, Forex MHV, swissDirekt (Swiss), Goetz Financial Forex, NY Broker Borsentermin AG, Act Forex, Online Trader, Shield FX Online Currency Trading, Forex Trade Signals, CMC Group PLC, Foreign Currency Direct Limited (UK), FX Advantage, FXCM, Forex Millenium, ACM REFCO, REFCO Spot, Easy Forex, Online Forex Trading Inc., Lincoln Corporation, Global Trade Waves, Ltd., and CIBC FX Web Dealing.

Thursday, January 19, 2012

Advantages of the Foreign Currency Market

What are the advantages of the Forex Market over other types of investments?

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets.

Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a “mini account”, which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each “pip” or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.

The Forex market is also very liquid. When trading Forex you have full control of your capital. Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control Forex traders can be profitable in bullish or bearish market conditions.

Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.

The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with “paper money”, or “fake money.” Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.

Wednesday, January 18, 2012

Are you prepared to currency trade?

Currency trading is the most popular way to earn to money and it is without doubt a very profitable market. However few are familiar with its unpleasant intricacies and most ignore a very important aspect: risk. It is not enough only to be given the chance to invest your money successfully, you have to be careful because Currency trading can be an efficient trading system or it can ruin you.

Why is Currency trading risky?

- Currency trading is very unstable. It is the subject of rapid and overwhelming changes. The market is volatile and it is influenced by political events. - One can loose at any time especially when he has just ventured into Currency trading. Experience, information and attention are necessary.

- Some unexpectedly loose the Risk Capital which sometimes consists of College money, the retirement funds or some other substantial sum that shouldn’t have been considered as Currency trading capital in the first place.

- Fluctuations in currency prices, discrepancies between interest rates in two different countries, insolvency of financial institutions that take part in transactions and limited flow of exotic currencies will most likely lead to loss.

- Large profits and minimal losses are impossible to predict with 100% certainty.

- The Currency trading market has great winning potential, but it also has loss potential. - Misinformation and the emotional baggage are most of the time cause of loss. Use facts, not hope or fear, when Currency trading.

- Sometimes trends can lead to money loss. - Huge leverage is available to traders. This leads to dangerous positions that risk too much in comparison with the size of the account.

- Lacks of money management and of back testing plans are the mistakes that currency traders make sometimes.

- Using brokers is sometimes inefficient because this counterpart can refuse to trade during volatile market conditions affecting the retail trader. They can even widen spreads. However it is recommended to collaborate with a broker, because he can deal in the interbank market and he surely knows more about Currency trading making it safer from other points of view.

- Scams were very common years ago when dealing with a broker. However, one can be confident with the person he is working with by checking their background and the Institutions he is associated with (large banks, important insurance companies). Don’t be frightened! It isn’t all about risks. And don’t start trading in fear! You will loose this way. You just have to keep in mind all possibilities and avoid unwanted situations only you can get yourself into.

All Currency traders have to be very well informed about their activity. They have to know technical analysis and how to read and interpret charts, they have to develop effective strategies and minimize risk. The financial exposure has to be limited and this can be done in many ways available to currency traders who inform themselves. So, educate yourself, be prudent, take risks only when you can handle loss and always be prepared for anything.

And have this in mind:

If Currency trading isn’t profitable then why are so many financial investors, banks, international institutions and important players that obtain huge amounts of cash by simply turning their own money into other currencies?

Tuesday, January 17, 2012

Forex Signal Stategy

Forex or FX, no matter how you may call it, it all refers to foreign exchange. Forex basically deals with buying and selling of currencies, or in other words currency trading that is made available at the ongoing price in market. It involves investing money in the foreign currencies and earning profit by selling them at the higher price. That is to say, that you are extending the one you are holding, only to buy the other one for a lower price.

Forex trading market can also be termed as the largest financial market of the world and thereby also makes available the most lucrative options as well. Also, with technological advancements, forex trading signals can be accessed online. It is the introduction of these forex signals that have increased its popularity considerably, as it is readily accessible at the comfort of the home of various investors. There are various companies that provide forex trading signals over the Internet. For this, a person first has to sign himself up with the website of that company and submit a yearly or monthly fee as these services are made available on paid basis only.

Most websites that offer a trading platform makes available the forex signal trading system. This involves sending of newsletters about the daily market trends by a professional broker, trader or a market analyst to its members. These are very helpful as the basic purpose of every trader is to provide profitable deals in forex by utilizing all the information that is made available to him. There are different prices that are charged for these forex signals services and the services are also made available accordingly. While some of them will send the email, others will keep you updated by its forex alerts via cell phones. Live charts are another feature that is made available in some higher subscription services. Generally the minimum amount of subscription is a minimum of $100.

Though forex is a highly lucrative market, still it has equal risk involved, so it is important to have forex strategy system to ensure that you are not losing more than earning. Optimization of risk in accordance to your reward is important to make sure that you into successful trading. Every forex trading strategy must follow a disciplined approach along with taking risks. That is to say, limiting the risk, while making the best and the most constructive market moves possible is essential to become a successful trader.

Another technical analysis or forex trading strategy is the one that involves deriving “resistance” and “support” levels. The base for this is that forex market will generally trade below its level of resistance and also above its levels of support. In case the resistance or support level is wrecked, the market is also anticipated to follow the same direction at that time. These levels can be decided by assessing the resistance in previous years, unbroken support in the market and by analyzing its chart. Hence, to become a successful trader it is better to follow forex strategy system.

Monday, January 16, 2012

FOREX Currency Systems

With the many FOREX currency systems available, you can in theory, simply turn your computer on and follow the signals to generate automatic profits. That’s the theory - but the fact is, there are many FOREX currency systems sold that are obvious scams, and the systems will never work. This article aims to give you tips on picking systems that can make money, and avoid the scams. There are two main reasons why most FOREX currency trading systems fail to live up to their Hype: 1. Black Box Systems These are systems where the logic is not revealed to the buyer - and for a FOREX currency trading system to be used successfully, the trader must have confidence in it. If you don’t know the logic of the system, you will not have the confidence to follow it when a losing period occurs. You need to follow a system rigidly to make money - otherwise you may as well not have a system in the first place. Using a FOREX Currency trading system is all about having the discipline to follow the system - and if you don’t have confidence in the logic, you will never do this. 2. Curve Fitting and Optimization Another indication of a currency trading system that is a scam, is one that involves curve fitting, or optimization. These systems give a fantastic performance in back testing - because of the tweaking of the system rules, to make them fit the data, and produce profits. A trader once likened this to shooting holes in a barn door, and then drawing circles around every hole - to make each shot look like a bull’s-eye. Let’s face it, we would all be millionaires, if we had tomorrow’s news today - but we don’t. Avoid any system that offers unique rules, or many variations for trading different markets. If the system is based on solid logic - it should work on ANY trending market, and should not be optimized, or curve fitted to an individual market. You will never see a hypothetical performance that fails! Most unscrupulous vendors achieve great performance by making the system fit the data - and this causes the system to fail in real time trading.

Here are four tips, to help you separate out the scams, from the good FOREX currency-trading systems:
1. The Rules and Logic are Fully Explained You will then have confidence in the system when it suffers a string of consecutive losses.

2. Some Evidence of a Real Time Track Record Has the system has made money in the real world of trading? This is the acid test of a system. If there is not a real record, look for a hypothetical audit done in real time - many systems do this before launching, and this gives a good indication of how the system will perform.

3. Look for Simple Systems There is absolutely no correlation between how complicated a system is, and its profit potential. In fact, simple systems tend to work best, and will tend to be more robust in the brutal world of trading. Most of the top FOREX currencies trading systems are based on simple logic.

4. Avoid any Optimized System As already mentioned, if the system has sound principles, and then it should work on a broad spectrum of financial instruments - avoid any system that optimizes individual markets. Not all FOREX currency trading systems fail - but if you want to get one that works, be realistic and do your homework first.

Saturday, January 14, 2012

A Short Explanation Of “Buying” and “Selling” In Forex Trading.

These days everyone is talking about a new profitable activity called Forex trading and the great opportunity this activity represents for people willing to brake free from the corporate world and start working from home or any where else without losing their current lifestyle and even improving it.

Most experienced traders consider that the best and most profitable of the capital markets is the Forex market. For many years Forex trading was the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market.

You have many advantages when trading the forex markets, for example; you don't have to worry about fees you may have to pay to your broker; there are also none of the usual fees to which futures and equity traders are accustomed to pay always; no exchange or clearing fees, no NFA or SEC fees.

The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these five currencies account for over 70% of North American trading.

Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the Forex market.

The concept of “Buying” in Forex refers to the acquisition of a particular currency pair to open a trade and “Selling short” refers to the selling of a particular currency to open a trade, i.e, just the opposite. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high; which is easy to understand.

In the case of Selling short, it looks a bit more complicated. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices.

It may seem kind of tricky when you are starting, but once you are in front of your trading station it will look much simpler.

Friday, January 13, 2012

Million Dollar Pips - Big Wins to New Heights

Yes, the team of Million Dollar Pips and FX Retribution easily recovered from the newest high of $2.9 mil down to $2.8 mil then up on Friday to the new high of $3.0 million in Grandpa Monopoly Money. Going very far and leaving quite a trail, WallStreetathome reaches beyond all imagination.

Thursday, January 12, 2012

A Profitable Forex Strategy

Making money in the forex market is not an easy task by any means. However, given a bit of education and knowledge of the market, it can become quite easy to profit in the forex market. Most traders end up learning that it’s the simply systems that create the wealth. Over analyzing and over thinking can sometimes affect your trading methods and strategy.

The trading method I am going to explain here is probably going to upset you a little and will most likely go against everything you have ever been taught about forex. However, you have to remember that this is my personal strategy and its how I make money. It may not work for the next person, but it has shown me a way to make a substantial amount of money in the forex market. Through your forex training you might have heard traders tell you to always trade with a stop-loss.

If you don’t know what a stop-loss is, it’s simply an order telling the broker when you would like to cut your losses. I don’t trade with a stop-loss period. How is this so? How can I make money without using a stop-loss? I tend to believe that the big players in the forex market like to drive this market in certain directions to take out other traders stop-loss positions.

In order for the banks to make money, they have to take other traders monies, therefore taking out stop-loss orders in the market. I don’t allow the banks to do this to me personally. Secondly, on each trade look to make only a few pips. In some cases this is known as scalping the market. On each trade I am only looking to get 3 to maybe 6 pips or as I like to say, get in and get out.

Your next question might be, “how do I know when to enter and exit the market?” I use a set of indicators combine with a detailed analysis of trend lines and channels. The indicators tell me when to get in and get out and the trend lines give me the overall direction of the market for the next month to few years. Having a good idea of where the market is heading over the course of a few years gives me a good idea whether I am in buy mode or sell mode on a daily basis.

How is it possible to survive without using a stop-loss? Very simply put, do not risk large amounts on each trade. I only risk one tenth of my account balance per trade. For example, I only trade $1 lots on a $10,000 account. What this enables me to do is use no stop-loss. If the market moves 200 points no problem. By the time the market moves 200 points, I’ve already made 100 other trades in profit all for 3 to 6 pips each. If the market continues to get away from me, I continue trading each day gaining which eventually compensates for the few losers and eventually overrides them. When the market comes back in my favor, those losing trades are making profit every step of the way.

Wednesday, January 11, 2012

An Introduction to Currency Correlation

Global currencies don’t ride the trends in isolation. The apparent technical movement between two currencies in a pair may cause an effect in the behaviour of each separate currency. A third currency will also have some bearing on the rise or fall of a seemingly unrelated pair, in the view of an intermediate or beginning trader.

Even seasoned trend cowboys may miss the odd significant event that results in a trade loss. Technical analysis often comprises the bulk of the independent speculator’s trade decisions, but some attention to fundamental news must be included for a complete overview of what is happening in the market at that particular moment.

Neither weather, beetles, drought, hostile takeovers nor indicted CEO’s have much real bearing on currency values, but the timing of the release of economic reports should determine if a trade is viable or not. A rising tide raises all ships, but the trading ocean is made of waves, with deep troughs and high crests. A rising ship may have a tether to another that is dropping down the other side of the swell. As one currency in a trade pair rises, it may pull another currency up with it, or just the opposite. A drop in the Euro may allow an increase in the value of the GBP, which will certainly have an influence on the USD/GBP spread. So when considering the merits of a good trade, also take into account the activity of each currency’s most closely related cousin.

When trading the Canadian dollar, you must certainly consider the relative movement, or lack thereof, in the US dollar. Canada’s largest trading partner is the US, so fluctuations in the US economy may or may not have an effect on the Loonie, depending on the gravity of the news.

The UK maintained their own currency, the British Pound, but the economic business of Europe can still influence the directional trend of the Pound Sterling. The French Franc will also be swayed by the enterprise of the communal Euro. As you analyze your charts, take care to make a quick examination of any volatile activity in any similar currency.

The average day trader and individual speculator cannot possibly keep up with all the economic news released each day and still have time to trade and eat lunch, and old news has already shown itself in the charts. One must pay attention to important published economic developments, and generally avoid trading on report days. But the trend will indicate market sentiment, and great profits can be made by keeping the major focus on technical analysis.

International bankers and currency houses have developed complex mathematical models to track currency correlation, but these are beyond the scope of this article. In summary, just check how related currencies are trending, when preparing a trade. Another quick analytical tool for the traders’ arsenal is always a good thing. May your winners run long.

Tuesday, January 10, 2012

What is the relationship between various currencies?

Money. We all need it. We all want it. Trillions and trillions of dollars, pesos, euros, pounds, levs, francs, and more change hands every day for goods and services around the world. Most of us are only familiar with the money that is exchanged for goods and services in our own country and are only concerned with getting more of that. But there is a lot more to money than that.

What is the relationship between the currency in your country and the currency of some other country and why should it matter to me? I’m glad you asked. In this article we will explore some of the currencies around the world and answer some questions you may not even know you had.

First, if we are going to discuss currency and it’s relationship to other currency, we have to talk about Forex. That’s short for foreign exchange or the exchange of currency for a different type of currency.

There is no market in the world, including Wallstreet that can compare to Forex in volume of cash traded daily. Retailers, Governments, Currency Speculators, Banks, Corporations, and other financial institutions engage in forex or foreign currency exchange to the tune of trillions of dollars and other currency each day. It is a truly amazing thing to see. People making money just by trading one country’s currency for another.

Keeping up with the latest news in each country, economic trends and indicators, real-time monitoring of current currency values in comparison to another currency are all things required if you are going to speculate in this arena. More than that, some forex speculators will tell you is, you have to have a good feel for it. You have to understand economies and be able to recognize the events and conditions that will cause people to lose confidence in one currency or another. You have to know when to hold em and when to fold em, as the Kenny Rogers song goes.

If you would like to check the exchange rates for each of these currencies against other currencies, you can open a new browser window and put this url into your address bar.

It’s a Forex Calculator. http://uk.finance.yahoo.com/currency-converter?u

The following is a list of world currencies. It may not be every currency in the world, but it will give you an idea of the complexity of forex.

Albanian Lek, Algerian Dinar, Aluminium Ounces, Argentine Peso, Aruba Florin, Australian Dollar. Bahamian Dollar, Bahraini Dinar, Bangladesh Taka, Barbados Dollar, Belarus Ruble, Belize Dollar, Bermuda Dollar, Bhutan Ngultrum, Bolivian Boliviano, Brazilian Real, British Pound, Brunei Dollar, Bulgarian Lev, Burundi Franc. Cambodia Riel, Canadian Dollar, Cayman Islands Dollar, CFA Franc, Chilean Peso, Chinese Yuan, Colombian Peso, Comoros Franc, Copper Ounces, Costa Rica Colon, Croatian Kuna, Cuban Peso, Cyprus Pound, Czech Koruna. Danish Krone, Dijibouti Franc, Dominican Peso. East Caribbean Dollar, Ecuador Sucre, Egyptian Pound, El Salvador Colon, Eritrea Nakfa, Estonian Kroon, Ethiopian Birr, Euro. Falkland Islands Pound, Gambian Dalasi, Ghanian Cedi, Gibraltar Pound, Gold Ounces, Guatemala Quetzal, Guinea Franc, Haiti Gourde, Honduras Lempira, Hong Kong Dollar, Hungarian Forint, Iceland Krona, Indian Rupee, Indonesian Rupiah, Iran Rial, Israeli Shekel, Jamaican Dollar, Japanese Yen, Jordanian Dinar, Kazakhstan Tenge, Kenyan Shilling, Korean Won, Kuwaiti Dinar, Lao Kip, Latvian Lat, Lebanese Pound, Lesotho Loti, Libyan Dinar, Lithuanian Lita. Macau Pataca, Macedonian Denar, Malagasy Franc, Malawi Kwacha, Malaysian Ringgit, Maldives Rufiyaa, Maltese Lira, Mauritania Ougulya, Mauritius Rupee, Mexican Peso, Moldovan Leu, Mongolian Tugrik, Moroccan Dirham, Mozambique Metical. Namibian Dollar, Nepalese Rupee, Neth Antilles Guilder, New Turkish Lira, New Zealand Dollar, Nicaragua Cordoba, Nigerian Naira, Norwegian Krone, Omani Rial. Pacific Franc, Pakistani Rupee, Palladium Ounces, Panama Balboa, Papua New Guinea Kina, Paraguayan Guarani, Peruvian Nuevo Sol, Philippine Peso, Platinum Ounces, Polish Zloty, Qatar Rial, Romanian Leu, Romanian New Leu, Russian Rouble, Rwanda Franc. Samoa Tala, Sao Tome Dobra, Saudi Arabian Riyal, Seychelles Rupee, Sierra Leone Leone, Silver Ounces, Singapore Dollar, Slovak Koruna, Slovenian Tolar, Somali Shilling, South African Rand, Sri Lanka Rupee, St Helena Pound, Sudanese Dinar, Surinam Guilder, Swaziland Lilageni, Swedish Krona, Swiss Franc, Syrian Pound. Taiwan Dollar, Tanzanian Shilling, Thai Baht, Tonga Pa'anga, Trinidad&Tobago Dollar, Tunisian Dinar, U.S. Dollar, UAE Dirham, Ugandan Shilling, Ukraine Hryvnia, Uruguayan New Peso, Vanuatu Vatu, Venezuelan Bolivar, Vietnam Dong, Yemen Riyal, Zambian Kwacha, Zimbabwe Dollar.

Can you imagine sorting out all of the relationships between each of those currencies and precious metals?

Forex is not for the faint of heart it would seem, but it does make a fascinating topic. In some of the currency names you can see how it relates to world history. I hope you find this article has helped you with at least an explanation of what Forex is and how it works. There is a lot more out there about Forex. Learn more!

Monday, January 9, 2012

The essential aspects of foreign exchange

This is the first in a series of articles that are intending to introduce beginning traders to all the essential aspects of foreign exchange. I will start by identifying and defining the essential aspects of foreign exchange trading, and key components that you will be exposed to as a forex trader.

Forex is an acronym for Foreign Exchange. The foreign exchange is a currency market where currencies are traded. Traders are trading one currency against another. There are very large players in this game such as, large banks, corporations, and countries. There is also the speculative trader. Most individual traders would fit into the speculative category.

Speculative trading focuses on the value of one currency with regard to another. As a speculative trader you focus on or bet on which currencies will go up in value and which ones will go down. Fundamental economic news and political situations play an important roll in the fluctuation in value of a currency for any given country.

Forex is the largest financial market in the world. Daily trading volume exceeds $1.5 trillion. Comparing this to other financial markets such as equities at $50 billion daily trading volume, and the futures market at $30 billion in daily volume you can begin to realize the flexibility and infinite trading liquidity the FOREX has to offer. The FOREX is a 24 hour market. This means flexibility for you as a trader. This market never closes.

You can always find good trading opportunities at your convenience. This is a 24 hour electronic online currency exchange. Currencies are traded in pairs. Meaning when you buy one currency you are selling the cross currency. The position that you take long or short is indicative to how you think that pair will perform.

For example, if you were to buy long USD/GBP, you are betting that the USD (US Dollar) will increase in value against the GBP (Great Britain Pound). You are actually buying the USD and simultaneously selling the GBP. If you were to go short on this pair you would be betting that the USD is going to decrease in value against the GBP.

It can get confusing but fortunately the services that provide the trading platforms from which you will be placing trades will keep track of this for you. Everything is electronic and online, trading is done in real time.

You can watch immediate results of all your trades. These are highly sophisticated programs tracking every movement in the currency market in real time. Part 2 will focus more on currency pairs, trading platforms and charting software.

Wall Street at Home - Forex Robots

Forex Robot Frustration

 
Forex trading has taken the entrepreneurial world by storm, in the last ten years it has become so popular that the market has increased to see over 3 trillion dollars being traded on it every day. Since the introduction of spread betting platforms and super fast internet connections, people with little or no trading experience have been giving the foreign exchange market a go. Unfortunately the majority lose all or most of their investment either through their own mistakes or forex robots that don't match their claims.

For the inexperienced or part time trader using a forex robot can seem to have all the answers. It takes little time to use a forex robot so you can concentrate on other things and if you do not really know what you are doing, then it doesn't matter because the robot does it for you. So you hope.

It does not take a genius to look around the forums and read some of the horror stories people talk about. How their forex robot performed impeccably until one day it just got it completely wrong and cleaned out the account. Why does this happen and why does it seem to happen to every robot.

The answer is in the programming; forex robots are designed to read technical data from the past and expect to act on it in the future, the problem is that the market is ever changing and past data only has a percentage of the information needed to make successful trading decisions. In a nutshell they will only be correct as long as the market keeps repeating itself.

What is needed is a robot that can decipher the information as it happens and act on it straight away instead of being stuck in an old formula that is now failing. Adapting to the current market situation is where and why professional traders will always come out on top unless of course a robot can be built that acts in this way.

Before you buy a forex robot insist on seeing it being tested on a live Meta Trader 4 account, this is easily done with an investor account. When you open a live trading account you have the option to give out username and password to investors that can log into the account for read only purposes. They cannot change anything, place trades or alter any settings. Anyone selling a forex robot that works will be happy to set this type of proof up. It is basically a way of watching the forex robot go to work live on real time prices for as long as you want.

By: Johnny Smiths

Article Directory: http://www.articledashboard.com

Johnny Smiths has been trading forex for over 4 years and has never found a robot as accurate as the one he is trading today. With 100% accuracy and less than 2% draw down you have to see Leo Trader Pro forex robot in action for yourself

A Guide To Forex Robot
by: Michelle Tason
publisher: Michelle Tason, published: 2010-02-20
ASIN: B003980V3Q
sales rank: 312241


We might already have an idea what a Forex robot can do for Forex traders. Forex robot manufacturers would claim that this technology enabled them to gain more profit, but aside from this, what other advantages can a Forex robot give.

It is not unusual for a trader to a lose because of backing out from a deal that they think would end up in losing, only to figure out that this trade would go for the better. Emotions can influence traders and make them indecisive. This psychological factor is actually one of the major problems a Forex robot addresses....

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Forex Over Drive: A Forex Robot That Delivers Results

A Reliable Forex Trading Robot That Generates Extraordinary Returns While You Sleep. Easy To Setup, Anyone Can Use It, Requires No Knowledge Of The Forex Industry.

Sunday, January 8, 2012

Configure a valid risk

Any person who has the risk that should not be ignored. A good stocks broker or financial planner knows this and it would be useful to determine which risk tolerance is possible. We must work to find investments that exceed your risk tolerance.

To determine risk, this condition is associated with a number of different things. First you need to know how much money to invest in them and what investments and economic goals.

For example, if you plan to retire within 10 years and have not been saved for a penny, you should have a high risk tolerance because we have to do some aggressive risky investments to achieve the financial objective.

If you are at an early stage of life and want to start your investment risk tolerance, which is on the other side of the coin you poor syntax. You can see their money grow slowly over time.

Of course I understand that the need for tolerance of high risk and low risk of having really has anything to do with how you feel in danger. Once again, not much to determine the degree of tolerance.

For example, if you had invested in the stock market and had seen material on a daily basis and I saw that it was a little down, what would you do?

Do you sell or borrow money on disk? If you have a low tolerance for risk, that you want to sell ... If you have a large circulation, giving the money and see what happens. This is not based on economic goals alone. This tolerance is based on how he knows about money!

Again,  good financial planning  to determine the risk that feels comfortable or the level of your investments accordingly will help you greatly.

Permissible level of risk based on objective is economic and how you feel about the chance of losing money.

Saturday, January 7, 2012

Wall Street at Home- Good Start for a New Year

In spite of 2 more big losses on FX Retribution.One for -$124,800+ and another for -$67,585+ we finish up $109,643+ in Monopoly Money to start the year off right. This due to FX Ret $294,606.89 including its last 7 in a row. Also Million Dollar Pips tallied $100,569.80 in wins after losing its first 3 but also including its last 14 wins in a row.

Click Here to view this EA/Forex Robot...






Wednesday, January 4, 2012

How to Know When to Sell Your Stocks

While quite a bit of time and research goes into selecting stocks, it is often hard to know when to pull out – especially for first time investors. The good news is that if you have chosen your stocks carefully, you won’t need to pull out for a very long time, such as when you are ready to retire. But there are specific instances when you will need to sell your stocks before you have reached your financial goals.
You may think that the time to sell is when the stock value is about to drop – and you may even be advised by your broker to do this. But this isn’t necessarily the right course of action.
Stocks go up and down all the time, depending on the economy…and of course the economy depends on the stock market as well. This is why it is so hard to determine whether you should sell your stock or not. Stocks go down, but they also tend to go back up.
You have to do more research, and you have to keep up with the stability of the companies that you invest in. Changes in corporations have a profound impact on the value of the stock. For instance, a new CEO can affect the value of stock. A plummet in the industry can affect a stock. Many things – all combined – affect the value of stock. But there are really only three good reasons to sell a stock.
The first reason is having reached your financial goals. Once you’ve reached retirement, you may wish to sell your stocks and put your money in safer financial vehicles, such as a savings account.
This is a common practice for those who have invested for the purpose of financing their retirement. The second reason to sell a stock is if there are major changes in the business you are investing in that cause, or will cause, the value of the stock to drop, with little or no possibility of the value rising again. Ideally, you would sell your stock in this situation before the value starts to drop.
If the value of the stock spikes, this is the third reason you may want to sell. If your stock is valued at $100 per share today, but drastically rises to $200 per share next week, it is a great time to sell – especially if the outlook is that the value will drop back down to $100 per share soon. You would sell when the stock was worth $200 per share.
As a beginner, you definitely want to consult with a broker or a financial advisor before buying or selling stocks. They will work with you to help you make the right decisions to reach your financial goals.

Tuesday, January 3, 2012

The Importance of Diversification

“Don’t put all of your eggs in one basket!” You’ve probably heard that over and over again throughout your life…and when it comes to investing, it is very true. Diversification is the key to successful investing. All successful investors build portfolios that are widely diversified, and you should too!

Diversifying your investments might include purchasing various stocks in many different industries. It may include purchasing bonds, investing in money market accounts, or even in some real property. The key is to invest in several different areas – not just one.

Over time, research has shown that investors who have diversified portfolios usually see more consistent and stable returns on their investments than those who just invest in one thing. By investing in several different markets, you will actually be at less risk also.

For instance, if you have invested all of your money in one stock, and that stock takes a significant plunge, you will most likely find that you have lost all of your money. On the other hand, if you have invested in ten different stocks, and nine are doing well while one plunges, you are still in reasonably good shape.

A good diversification will usually include stocks, bonds, real property, and cash. It may take time to diversify your portfolio. Depending on how much you have to initially invest, you may have to start with one type of investment, and invest in other areas as time goes by.

This is okay, but if you can divide your initial investment funds among various types of investments, you will find that you have a lower risk of losing your money, and over time, you will see better returns.

Experts also suggest that you spread your investment money evenly among your investments. In other words, if you start with $100,000 to invest, invest $25,000 in stocks, $25,000 in real property, $25,000 in bonds, and put $25,000 in an interest bearing savings account.


Monday, January 2, 2012

Stabilize Your Current Situation Before You Invest

Before you consider investing in any type of market, you should really take a long hard look at your current situation. Investing in the future is a good thing, but clearing up bad – or potentially bad – situations in the present is more important.

Pull your credit report. You should do this once each year. It is important to know what is on your report, and to clear up any negative items on your credit report as soon as possible. If you’ve set aside $25,000 to invest, but you have $25,000 worth of bad credit, you are better off cleaning up the credit first!

Next, look at what you are paying out each month, and get rid of expenses that are not necessary. For instance, high interest credit cards are not necessary. Pay them off and get rid of them. If you have high interest outstanding loans, pay them off as well.

If nothing else, exchange the high interest credit card for one with lower interest and refinance high interest loans with loans that are lower interest. You may have to use some of your investment funds to take care of these matters, but in the long run, you will see that this is the wisest course of action.

Get yourself into good financial shape – and then enhance your financial situation with sound investments.

It doesn’t make sense to start investing funds if your bank balance is always running low or if you are struggling to pay your monthly bills. Your investment dollars will be better spent to rectify adverse financial issues that affect you each day.

While you are in the process of clearing up your present financial situation, make it a point to educate yourself about the various types of investments.

This way, when you are in a financially sound situation, you will be armed with the knowledge that you need to make equally sound investments in your future.


Sunday, January 1, 2012

Wall Street at Home - Pasts its 2011 Finals

In spite of one super bad trade from FX Retribution of -$260k, which it made up $250k in three days, the demo account for the team of Million Dollar Pips and FX Ret closed at $2.7 in Monopoly Money. Yes it is a new high.It include 14 wins in a row after the before mentioned disaster, plus one loss then 10 wins in a row for MDP.

Its looking good for this year.

Happy New Year to all.....