Currency Trading

5 Reasons Why People Lose Money On Forex Currency Trading

2008-03-13T01:36:00.000-07:00

The dismal statistics of Forex Trading show that the majority of people lose money and a lot of it on currency trading. Why is that? Why do most of the people end up short? There are a number of common reasons.

1. People don't understand the market - Most people operate under the assumption that forex trading is easy. After all, it's just one currency versus another, isn't it? Sounds very simple, but it's not. The Forex Market is one of the hardest, fastest, and most volatile markets in the world. You need to invest some time and money in learning how this market operates. Start by getting a good Forex trading book.

2. Operating on the tips of friends and strangers - People are always on the lookout for tips on the direction the forex market is taking. And you know the terrible thing: People operate on the tips of not only their friends, but also complete strangers, all of which haven't got a clue as to how the market really works. Operating on tips isn't trading. It's gambling.

3. Paying too much fees - People don't shop around for the cheapest trading platforms and brokers and end up paying huge commissions on every signal and action. Shop around and negotiate every fee. Don't be a sucker and waste money on commissions.

4. Succumbing to emotions - People buy when it's high and sell when it's low, this is the rule of the market. The reason is that people panic when they see their investment going in the wrong way. They end up making bad decisions which minimize their profits and maximize their losses. Try to detach yourself from your emotions and let your logic make your decisions for you.

5. Working without a Forex Trading Software - Forex Trading is a global business which operates 24 hours a day throughout the year in multiple markets. It's virtually impossible to operate in this market without a special Forex trading software. All the serious traders have such softwares. In order to enhance your chances of making a lot of money, get one for yourself.

If you're making any of these 5 mistakes, stop right now and start taking the right steps to make a killing on the Forex trading market.

To read more about this Forex Trading softwares, click here: Automatic Forex Trading Software. John Drummond works from home. He writes often on business, trading, and finances. There is more than one forex trading software. To read John Drummond's review of the 2 best ones, click here: Forex Killer Vs. Forex Autopilot.

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Automatic Forex Trading Software - Why Should You Get One?

2008-03-10T07:42:00.000-07:00

The Forex market is the biggest market on the planet. Each day over 2 trillion dollars exchange hands in this market which operates around the clock without any breaks. It is also a highly volatile market in which even the slightest shift can mean a huge profit or loss.

Since the Forex market is so volatile and complex, it is nearly impossible to keep track of it without the help of a dedicated Forex trading software. You simply cannot compete against the other traders which have them. That's why 50% of the people lose all their money on this market while only a few become rich: the rich let softwares do much of the work for them.

An automatic Forex trading software is really a must in order to succeed in this market because it can do the following things for you:

Recognize trends and act on them quickly

Work around the clock trading for you even while you sleep

Make split second decisions much faster than any human can

Analyze the various markets around the world and quickly shift your money around to make the maximum profit

Beat other traders to the best deals by being able to spot opportunities automatically

Trade in several markets together

Shorten your learning curve so that even if you're a novice, you'd still be making a lot of money.

But the best reason to get your hands on an automated Forex trading software is that it can make much more money for you because it works on sound mathematical models and doesn't make stupid mistakes which every person does. Every financial institution in the world has trading softwares. Now, there are at least 2 excellent softwares you can work with from your home and still make very big profits.

I truly believe that trading without an automatic Forex trading software is a mistake which can lead to losses. Get a trading software, see how it works, and then start making money with it.

To read more about Forex trading softwares, click here: Automatic Forex Trading Software. John Drummond works from home. He writes often on business, trading, and finances. There is more than one forex trading software. To read John Drummond's review of the 2 best ones, click here: Automatic Currency Trading Software.

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Forex Automatic - Forex Auto Pilot System vs Forex Easy Cash

2008-03-04T01:06:00.001-08:00

Forex automatic is there such a thing? As an experienced currency trader this is a question I am often asked. There is a lot of suspicion surrounding automatic forex trading systems, more commonly known as forex robot's, and for good reason. There have been many attempts at creating a successful forex robot, but most have failed. In the past month there have been 2 new additions in terms of automatic forex trading systems: Forex AutoPilot System and Forex Easy Cash.

Over the past 6 months I have marvelled at all the new forex products coming online promising instant riches and so called 'new' forex tactics never been released before. The truth of the matter is quite simple however, if you want a forex automatic solution, all you need is a system that can identify and predict trends accurately and act upon them with precise timing. This is the core of successful currency trading and it is based on what is known as the Fibonacci formula.

There will always be risks involved in using an automatic forex trading system, and it is no different for these recent products Forex AutoPilot System and Forex Easy Cash. These products are so similar, and ultimately it will be a personal preference as to which interface will please a user. The fact that Forex AutoPilot Sytem runs on the Meta Trading platform is certainly a distinct advantage. Both systems allow for automated trading which can be experimented via a demo account so there is no need to risk any of your own capital.

Conclusion

Whichever forex automatic system you decided on ensure it comes with a money back guarantee. In terms of Forex AutoPilot and Forex Easy Cash the products are so similar it might be worth purchasing both and refunding the product which doesn't perform the way you want. Ideally user's should have a basic grounding of currency trading principles before considering an automatic forex trading system.

Want to learn more about the revolutionary Forex AutoPilot System that will completely automate and skyrocket your trading profits? Please visit: http://www.forextradingsoftwarereview.com/forex-auto-pilot.html

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Make Money On Forex with Support and Resistance Lines

2008-02-09T06:00:00.000-08:00

I often write about the Forex market and how to get an edge in regards to trading on a regular basis. One of my favorite topics is based on how to use indicators successfully so that you can get that edge in the Forex market. I must admit however that my favorite indicator is the old reliable support and resistance lines. This indicator goes back as far as I can remember in one fashion or another and I think that it still has staying power speaks to the effectiveness of this trading tool.

There are plenty of Forex traders that depend on so-called market predicting tools like neural nets or algorithms. As far as I am concerned they can have these tools and leave me with good old fashioned support and resistance lines.

The best way to describe a support and resistance line is a certain level of price exchange rate level in which the market has hit this level and later pulled back in the other direction. Here is a good way to remember which is which: Support lines are on the bottom while resistance lines are on the top.

So why is this method so effective? This is a good question but it would help if we went back to why the Forex moves at all. The answer to this is obvious: Traders move the markets. The random population of traders consist of individuals, corporations, Central Banks, and hedge funds. On a technical level, there are exchange rate values (emotionally charged) that can make very nice support and resistance lines.

As a result of the fact that we run on a base-10 number system, these emotionally-packed values are the round numbers. The bottom line is that support and resistance lines are simply exchange rate values that are considered by many traders to be critical points that are traded on. The way to make money on this is to know what side to be on as demonstrated by the support and resistance.

The place for consistent winning trades: http://www.fx-indicators.com

Cal Relerd has been involved in the Forex market and investment world for many years. He is a firm believer in the Forex market being one of the greatest and most accessible means to building substantial capital in a relatively short period of time.

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Breaking Down The Forex Mechanical System Trading

2008-02-06T06:04:00.001-08:00

A variety of trading strategies are available to make the currency investment a successful venture. Which strategy is to be adopted by you while you trade with currency is totally dependent on the particular currency that you trade with and the recent price pattern in the currency market. A particular strategy that seems to be ideal to trade with a particular pair of currency need not be so for another pair of currency. For this reason one has to be very careful while choosing a particular strategy to trade with currencies.

Whatever be the nature of the currency trading that you are engaged in you should have at least one mechanical trading system with you if you want to make fortunes out of your forex trading.

Until recently forex mechanical system trading was found to be very expensive and unaffordable for individuals. As only a few brokers were there to provide forex mechanical system trading, one had to invest a fortune to get the assistance of a mechanical trading system for his currency trading.

With the development in software technology forex mechanical system trading also has become cheaper and affordable for all traders. A number of brokers are now offering free automated trading platforms for the investors to experiment with. By using the free service offered by the brokers you will get a chance to evaluate the different system before you actually invest in one.

If you are thinking of developing a system for your trading purpose, you will have to disclose your trading strategy including trade entry and exit to the programmer of the system. A concrete idea of your strategy narrating the proper currency marketing condition for entry, trade set up and final confirmation should be communicated to the programmer before you purchase a forex mechanical system trading for your use. Trade exit also muse be defined in the same way while programming a system to regulate your currency trading activities.

Back testing is some thing that you should not avoid to get the maximum from your system. You can avoid the troubles of back testing by hand by availing the service of the brokers who offer free trading system platforms. Frequent back testing will enable the trader to understand the performance of the system in a better way and he will start to learn the randomness of a particular currency trade through this exercise. It will also ensure the consisting execution of the trading strategy of the person using the system without fail.

For your free course teaching you exactly how to succeed with forex trading using simple and effective forex trading systems simply go to http://forex-trading-platform.org

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Forex Trading Strategies - Stop-Loss - Do You Need to Use It Right Now? Pros and Cons

2008-02-01T11:37:00.001-08:00

There are pros and cons of using stop-loss in your forex trading strategy. In this article I want to summarize the most important points of this topic and help you to understand if you need to use this trading instrument or not.

Pros:

You cut down your losses, so no matter what happens and no matter how the market moves, you won't lose more money than you set. This is also the main purpose for using this order.

You protect your deposit from the sudden big market movements against you. Remember - they can always happen, and this doesn't depend on your trading system. But you can protect your money from this dangerous trends by using stop-loss forex trading strategy and setting it properly according to your trading rules.

You can calculate your maximum total loss for your trading system. It usually happens on the "bad" market for your system and is a result of series of losses that come in a row. This will help you manage your risks better. Knowing the weak points of your system, you can always set your trading lots so you don't lose too much money even if things go the worst way.

Cons:

If your stop loss order was executed and than market movement changes, you can't profit from it because your deal is already closed. So you can't recoup your losses if your forex trading strategy doesn't imply opening additional deals to cover the losses.

Sometimes market is "stormy" - volatility increased, no particular trend. This usually happens when some important news comes out. On this market trader usually opens a lot of positions, and a lot of stop-loss orders execute again and again. This can summarize into one big loss.

You need to consider certain currency pair's volatility - and then set your stop losses according to it. If your SL (stop-losses) are too small it will cause a lot of series of small losses that can result into a big one. If your SL are too large, one loss can drain all your profits, so your bottom line will be near to zero. So you need to take into consideration the volatility of the currency pairs you're working with.

I recommend you to try out this Forex Trading Platform. You won't need to download it, and account can be opened As Fast As 5 Minutes. Trade USD vs. All Major Currencies and Start for As Little As $100. Leverage Up to 200:1 is available for You. Also You can Comfortably use Your Credit Card to deposit funds. Just Follow this Link or type in your browser: http://ezforextrade.info

Forex Trading Education - Don't Focus On Making Money

2008-01-30T08:21:00.001-08:00

It's a common thing to see new traders obsess over finding the "latest" and "best" way to trade Forex. While this may seem like the logical thing to do (after all, we're trading to make money right?), the true secret to making money in Forex trading has got almost nothing to do with that at all.

"Wait a minute... are you saying that to make money, we shouldn't focus on making money? That doesn't make sense!"

Believe me, I know this may sound weird... but the honest truth is that yes, you shouldn't focus too much on making money. And here's why...

The "Profit Paradox"

The first thing you must understand is that more than 90% of Forex traders lose money. Why is that? The answer is that many people underestimate what it takes to make money in Forex trading. These people have been misled by online marketers into believing that Forex trading is easy. The people buy into all the "Make $300 in one hour!"-type claims.

And this pulls their attention away from the one important aspect of trading: managing risk.

You see, the Forex market is one of the most volatile and liquid markets in the world. Everyday there are plenty of hazards you must overcome before you can survive long enough to be profitable. Imagine yourself flying a spacecraft into a meteor shower... that's basically what the Forex market is like. Your highest priority should be to survive: don't lose any money!

Once you've picked up the skills to survive in the 'meteor shower' of everyday price fluctuations, then you can start picking up new skills to learn how to profit from the market. Many new traders make the mistake of trying to make money first, before learning how to survive... and as you might expect, they eventually wipe out their trading accounts before even turning a dollar profit.

To learn more, download my free 26-page guide here: "Forex Trading Traps!"

Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading information and resources.

Currency Trading - New Revenue Stream

2008-01-29T05:49:00.000-08:00

It is also about buying foreign currency, the most traded in the international market such as the US dollar, UK pound or the Euro, on a daily basis from the open market. It is sold either the same day or two-three days later when the demand for the particular currency is higher. Though the fluctuation in the currency rates is marginal, the earnings can be on the greater side since currency trading is carried out in the form of bulk. Only registered organizations and banks are entitled to engage in currency trading. Individuals and non-residents of a country cannot engage in currency trading. In some developing countries, only government agencies and banks can trade in currency. No individual can trade currency on his or her own. Normally, it is the federal bank of a particular country that stacks up foreign currency since it buys them in bulk.

Currency trading is regulated by the official stock exchange of a particular country. The price of the currency is fixed by the developments in the international market. The currency is traded on the basis of the rate it can fetch against a US dollar or Euro. All international currencies are traded against the US dollar since the international market transaction takes place in the US dollars. In the European Union countries, it is the Euro, which is active and strong. So stock exchanges in the European Union countries trade in the Euro currency against local currencies. Similarly, in Japan, it is the Yen, which is traded against the US dollar and in China; it is the Yuan, which is traded against the US dollar. In the Pacific Oceania region, it is the Australian dollar that rules the roost. Therefore, traders have a tendency to stack up the Australian dollar. However, worldwide, the most preferred currency for trading is the US dollar.

For an agency to trade in currency, it has to clear certain stringent norms and procedures. The bank should necessarily comply with the conditions laid down by the federal bank of the country. In many third world nations, only the government agencies and nationalized banks are eligible to engage in currency trading. There have been relaxations in case of certain agencies, which have been permitted to engage in currency trading. However, these agencies are constantly monitored to ensure that they are following the norms are laid down.

It is illegal for individuals to trade in currency in some countries. Any individual or agent found engaging in currency trading in violation of the stipulated rules could end up being penalized. There are chances that the agent could even lose the trading license and could be barred from all future trading in the stock exchange.

It is necessary for agencies and banks to keep a tab on the movement of the currency in the international market to make quick earnings. There are possibilities of the currency weakening against each other due to various forces acting on the market. Since the stock markets are extremely volatile, it is difficult to predict which way the currency will swing.

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Learn Currency Trading - 5 Common Deadly Mistakes

2008-01-27T12:01:00.001-08:00

If you want to learn currency trading you need to get the right forex education and avoid the mistakes of the losing majority. The mistakes below are common ones but there easy to avoid and you must do so if you want to enjoy currency trading success.

1. Following a Vendor Blindly

One of the most common errors is to think someone else can give you success - they can't.

Most systems sold are junk - but even if you do find a good one, how can you follow it with discipline if you don't know how it works?

You cant to have discipline to follow a system you must have confidence in it so you need to take the time to develop your own trading system or have total confidence in someone else's logic.

2. Trading News Stories

We have more news at our disposal than ever before and all those stories are very convincing - but that's all they are stories. The news reflects the greed and fear of the crowd and they lose longer term - try and trade news stories and you are guaranteed to lose as well.

The best way for any novice to trade is to simply follow the reality of price action on a forex chart and trade it - your trading the truth not an opinion and that is the only way to win.

3. Day Trading

Simply the dumbest way to trade.

It doesn't work as all short term volatility is random and you can't get the odds in your favour.

Don't believe me?

Try and find a forex day trader with a real ( not simulated ) track record that's made real dollars over the long term. Let me know if you find one I have been searching for 25 years and still not found one!

Avoid day trading at all costs!

4. Trying to Predict Forex Prices

If you try and predict prices in advance you're hoping or guessing and that won't get you anywhere in life and certainly not forex trading.

You must not predict wait for momentum to confirm a turn and you can look up how to do this in our other articles - it is essential to confirm a price turn, rather than simply guess when it might come.

5. Markets are Scientific

It's amazing how many people buy into this myth yet it's obviously not true.

Why?

Because if prices did move to a scientific theory, there would be no market, as we would all know the price beforehand and there would be no market. The reason a market moves is because we all have different opinions of where the price may go.

The far out investment crowd love scientific theories and like to follow the works and methods of gurus such as:

Gann, Elliot and Fibonacci.

Well they made no money with their theories in forex trading and neither will you.

So if you want to learn currency trading correctly avoid the common mistakes enlcosed and work and getting a simple forex trading system which will help you trade the odds, you can understand and can apply with discipline.

If you learn currency trading the correct way ( and 95% of traders don't ), then you can enjoy currency trading success and create a life changing income - good luck!

PROFESSIONAL FOREX TRADING COURSE
and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex trading course visit our website at: http://www.learncurrencytradingonline.com

Currency Trading Tips - A Simple Tip to Warn of the Big Moves

2008-01-20T11:09:00.001-08:00

If you want to enjoy currency trading success, you need to catch and follow trends and spot turning points and this tool will help you - it's an obvious tip in many respects but most traders simply don't use it, so here it is.

It's to look at other markets that impact on the currency you are trading and for the purposes of illustration let's look at the US Dollar.

The dollar is a net importer of energy and high energy costs hurt it and the main one we are referring to here, is crude oil. In recent history when crude has hit high levels (and we have had recent tests of $100 a barrel) it has hurt the dollar and the retreat from this level has seen the dollar stabilize and rise.

Tops in the oil market recently have warned of dollar rallies.

Another major factor is interest rates.

Recently the dollar has been hurt by the perceived view that interest rates will be cut and you can get an idea of how much by looking at interest rate futures. When the interest rate futures rally too hard to fast and then fall, you can often see the dollar rally.

Why? Because traders get ahead of themselves - the recent rally in dollar euro was preceded by 100% consensus that interest rates will be cut by 50 bps (probably true) but gave 50 - 50 that rates would be cut by 75 bps (unlikely) the level of interest rate cuts factored into the market was overdone and prices in interest rate futures fell and the dollar rallied.

Tops in oil and interest rate futures can be used to warn of dollar rallies.

Another important variable is the stock market. Weak stocks hurt the dollar and strong stock markets support it - so watch it in fact if you want another tip:

If you are trading long term trends and only want to look at the prices of currencies once a day, do it just after the stock market closes. This closing price is always significant and while currencies trade 24 hours they are effectively thinly traded until Tokyo opens and the US stock market close sets the tone for the next day

Other currencies are also affected by outside influences:

The Canadian Dollar - Is a net exporter of oil and high prices of oil and other commodities are supportive of the currency

The Australian Dollar - Australia is a big producer of gold and when gold prices are high it supports the currency.

By looking at other markets that are important to a currency, you can often spot whether trends are going to continue or reverse. While it's obvious that currencies don't move in isolation, many traders do not bother to look at other markets for clues - if you do, you can get a trading edge.

A trading edge is what forex trading is all about and if you research this tip further, you will find it very useful as part of your forex trading strategy for bigger profits.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
PROFESSIONAL FOREX TRADING COURSE

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive forex course visit our website at: http://www.learncurrencytradingonline.com

Options Trading And Price And Time Trading

2008-01-19T10:38:00.001-08:00

Futures Options trading

Please only use these examples for educational purposes. Paper trade them.

I was doing my search for option inconsistencies and here is what I found.

March Swiss Franc futures contract closed at .9110.
(February options follow the March contract)

Feb. Swiss Franc options have 22 days left until expiration.
March Swiss Franc options have 50 days left until expiration.

Feb. Swiss Franc .95 Call options settled at .12.
March Swiss Franc .95 Call options settled at .34.

March Swiss Franc is close to its 52 week high of .9235. If you felt the market will fall, you can put on a reverse calendar spread. You can buy the front month out of the money option and sell a further month out of the money option. The further month option has more to lose if there is a big move, and also the time decay should be slightly greater due to the higher cost per day of the option. Keep this option spread in mind as an alternative to other types of credit or debit spreads.

When putting on any calendar spread, think of buying the cheaper cost per day options and selling the more expensive.

Even if you are not putting on a spread, this is a great way to choose which option to buy or sell.

Price and Time trading

Let's look at May Wheat. The recent high that stands out was 998 which happened on 12/17/07. I enter the price and date into the Gann section of my Price and Time software.

Below are the exported results:

Gann Analysis
Project Name: May Wheat

Input Values
------------
Price: 998
Date : 12/17/2007

Results
-------

Potential High Prices
---------------------
Price1: 1012
Price2: 1030
Price3: 1044
Price4: 1062
Price5: 1076
Price6: 1094
Price7: 1109
Price8: 1128

Potential Low Prices
--------------------
Price1: 980
Price2: 966
Price3: 949
Price4: 936
Price5: 919
Price6: 906
Price7: 889
Price8: 876

Potential Dates
---------------
Date1: 01/31/2008
Date2: 03/16/2008
Date3: 05/01/2008
Date4: 06/16/2008
Date5: 08/02/2008
Date6: 09/18/2008
Date7: 11/02/2008
Date8: 12/17/2008

Notes
-----
When price and time meet, we have a potential reversal point in the market.

David has traded futures & options for one of the largest cash trading firms in the world. He currently owns and runs the following websites:

Futures Options Simulated trading

Futures Options

Price and Time trading

Your Strategy To Financial Freedom

2008-01-18T04:06:00.001-08:00

Can you imagine yourself financially independent from your own business of forex trading? Did you know everything about forex trading can be specifically learned? You can learn strategy from other traders who put in the time and effort to trade in profit. You can make money while others don't if you follow a few principals.

Work smart not hard. All you need is a simple forex trading system that you can have confidence in. You need to keep your system as simple as possible. They work far better than complicated ones. You get paid for being "right" that's it, so don't try and be clever. You may be thinking this all sounds a bit easy and yes learning to trade is not hard. All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. The hard part is executing the knowledge in a disciplined way.You need to have confidence and discipline in trading currency markets. A lot of traders allow emotions to get involved and ruin most trades.

Trading without emotion is hard to achieve. You have hard earned money on the line. If you want to have discipline you need to have confidence which comes from practice trading and understanding your own trading system.

One more key to success is a desire to be successful. Most people in business enjoy what they do, taking some risks and have the ability to build profits. Does this sound like the person you are? There is really nothing stopping you from making money in forex. Just work smart and have a good mindset and you to will succeed. To increase your chances of success in forex trading requires knowledge. Knowledge takes hard work, study, dedication and focus. Build your knowledge base without taking any shortcuts. You will build a solid foundation for trading.

Rick Williamson is an investment researcher and owner of www.forexebookstore.com

Easy-Forex Review - Is Easy-Forex Really "Easy"?

2008-01-16T05:28:00.001-08:00

Easy-Forex has rapidly become one of the biggest players in the currency trading market.

Part of the reason for this is its name! Easy-Forex implies that Forex trading is easy, which of course we all know is not altogether true.

However, when you are just starting in Forex trading, the first thing you need to know is how much assistance and training you are going to get. So the purpose of an Easy-Forex review must be to see how far a system that calls itself Easy-Forex actually succeeds in making things "easy".

Easy-Forex does in fact have a number of unique features that do make it as easy as it can be to get a foothold in Forex trading.

One of the features of Easy-Forex that many people find attractive is that there is no software to download. This is not actually unique to Easy-Forex but it gives it an edge over trading platforms that do require a software download, which is the majority. If you have had your share of download problems and set-up glitches, you will certainly appreciate this. Plus it means that you can access your account instantly from any PC anywhere in the world.

Easy-Forex make it very easy to make a trade by allowing you to deposit funds using your credit card or Paypal. This avoids the frustration of finding that by the time your funds are in place, the price has moved.

Where Easy-Forex really scores is that it has a human face! This makes it probably the best Forex trading system for you if you are just starting. As soon as you register you are allocated your own personal account manager who works closely with you and who is very easy to get hold of when you have a question. The manager will advise you and will walk you through the initial stages. This to me is worth A LOT. And it is a better way of learning the ropes than using a demo account.

You don't have to pay a commission to Easy-Forex when you make a winning trade. This is because Easy-Forex makes its profits from competitive spreads. Some people sneer at this, alleging that it means they can't call themselves commission-free. But of course they are a business so they have to make a profit somewhere - but they aren't making it directly from YOU.

One very big plus for Easy-Forex is the freeze-rate option that they offer. If you are a hesitant person, like me, it is extremely valuable. It gives you "thinking time" while deciding whether to accept a trade. Without it, the rate could change while you are hesitating and you could lose a good opportunity. Alternatively you might plunge into trades which on reflection might not be a good idea.

So there are features which do help to put the "easy" in Easy-Forex. But of course an Easy-Forex review would not be an Easy-Forex review without weighing up the negatives too. And you will see some very disgruntled people putting negative comments on the forums.

The majority of these seem to be from people who have lost money with Easy-Forex. And make no mistake, you WILL have losing trades. If you can't cope with this, Forex trading is not for you, period. The real secret of trading Forex is to make sure that your winning trades outnumber your losing trades. And to do this, it is essential that you know what you're doing. To this end, Easy-Forex is acknowledged to have the most thorough and personal tutorial service of any Forex trading system.

Another point that people complain about is that if you carry over a day-trade to the next day, Easy-Forex make a charge, and if you don't have that money in your account, they deduct it from your credit-card without prior warning. To prevent this, it is essential that you keep sufficient money in your account.

An Easy-Forex review cannot provide a complete analysis of Easy-Forex - it can only weigh up the pros and cons. There are other excellent Forex trading systems on the market and of course you need to compare them, though in my experience Easy-Forex has more unique features to make it really easy to start trading. But whether it is for YOU, only you can decide!

If you would like to find out more about Forex trading, come and visit us at http://www.bizwrite.co.uk/Forex/forexindex.html

How To Choose A Good Forex Trading System

2008-01-15T01:16:00.001-08:00

Most Forex traders find it hard to choose a good trading system. In part because there's a lot of trading systems and, in the other hand, there are a lot of scams in this market. There are a lot of huge profits promises but hardly ever a trader can see a real profit in their account.

As a Forex trader, I found myself under these same circumstances. Although, as the time passed by, I created some special rules that a forex trading system must follow in order for me to buy it.

My first rule is only to buy a forex trading system that comes with a money back guarantee or a free trial period. For me, this is a very important rule because it shows me that the trading system developer really believes in what he is selling.

The second rule is to read reviews about the system I want to buy. But not any kind of reviews; the reviews I like most to read are from real forex traders. The more reviews I read about the product I want to buy, the better the idea I will have of what to expect.

The third rule before I buy a forex trading system is to carefully read the webpage where it is being promoted. This is sometimes hard because the pages are too long... But it is well worth the time. I eliminated many products with this rule and I'm very happy with my decision. I found out later, with other traders reviews, that those were scam products. If you have any doubt about the product or about what it does, contact the support team. If they have a quick answer, this is a good point for you to buy it because if, for some reason, you don't like the product after you buy it, pretty sure they'll refund your money fast.

If the forex trading system you chose fills these rules, then it is time to buy it. And here comes my fourth and last rule: test it first on a demo account. Almost all forex brokers have free demo accounts. This way, you can test the trading system and achieve some consistency before you commit your money to it.

I believe that if you follow these 4 rules, you be able to chose the best forex trading system for you and make good profits with it.

John Baker is an editor at http://www.ForexTopTen.com

By visiting the website http://www.forextopten.com you can read forex traders reviews about forex trading systems, trading courses, ebooks, softwares and brokers.

Forex Charts - Avoid These Myths or Lose Money Quickly

2008-01-14T04:03:00.001-08:00

Using forex charts and technical analysis is a great way to enjoy currency trading success - the problem is most traders fall victim to common myths and join the 95% of losing traders. Here we will look at the forex chart myths to avoid.

1. Do Not Try and Predict!

Probably the most common error of all is when a forex trader tries to predict where a price is going to go to next and it's doomed to failure - Why?

Because if you predict you are hoping and guessing and you will find your predictions are about as accurate as your horoscope.

You don't get anywhere in life by predicting and certainly not forex trading - you need to trade the reality of price change.

2. Trade Valid Data

If you want to trade successfully you need to trade the odds and you cant do that in forex day trading because the time period is to short for the data to be valid. It doesn't matter how good your forex trading system is, apply it to day trading and you will lose.

3. Complicating a Trading Plan

It's a well know fact that simple trading systems work better than complicated ones as they are more robust in the face of ever changing brutal market conditions. Add to many indicators in and your system will have more elements to break.

So remember keep your currency trading system simple and profitable.

4. Not Buying Breakouts

Most traders like to buy low and sell high and this is a by product of trying to predict. Traders simply don't like buying trends in motion when they have missed a bit of the move - well if you don't, you will never catch the really big trends and will lose.

It's a fact that most major moves start from new market highs NOT market lows - so you need to forget buy low sell high, as a way to make money and think- buy high sell higher.

5. The Markets Move To a Scientific Theory

Many traders believe that as human nature is constant there must be a repetitive scientific formula that markets move to and they fall for scientific theories such as those sold by discipline of Gann, Elliot and Fibonacci and they lose.

Why?

Because its pretty obvious that markets don't move to a scientific theory as if it did we would all know the price in advance and their would be no market!

This is really common sense but you would be surprised at how many traders base their forex trading strategies on scientific nonsense.

6. No Indicator works all the time

This is obvious however you would be surprised at how many traders simply think buying dips to a moving average is a great way to make money! Always use a combination of 2 or 3 complimentary indicators and it's always good to use support and resistance lines as well, when generating a trading signal.

7. Using Indicators Incorrectly

We just gave you an example of using an indicator in isolation and also buying a dip to a moving average is incorrect usage - Why?

Because it's a lagging indicator and cannot confirm trades - you need to combine it with a leading indicator.

Another example is traders who set stop losses at the outer bands of the Bollinger band - this is not a good idea, because it's a volatility band that changes all the time, may move your stop to far away and cause you a big loss.

The above are common errors and if you make any of them you will lose. Forex charts are a great way to make money, charting is simple to learn, time efficient and works so learn how to use your forex charts correctly, by avoiding the above errors and you can enjoy long term forex success.

PROFESSIONAL FOREX TRADING COURSE
and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Currency Trading System visit our website at: http://www.learncurrencytradingonline.com

Currency Trading Basics - 10 Errors You Must Avoid to Win at Forex

2008-01-13T06:33:00.001-08:00

Here we are going to give you some currency basics and this involves 10 essential tips you must do and 10 tips on common mistakes which you must avoid to enjoy long term currency trading success.

Let's start with 10 common errors you just avoid.

1. Don't Day Trade

It doesn't work as all short term volatility is random and prices can and do anywhere in a day and you have the odds firmly against you and will lose longer term.

Ever seen a day trader with a long term track record of success? No neither have I avoid it and trade longer term trends where you can get the odds on your side.

2. Don't Try and Predict

Predicting is simply hoping and guessing and won't get you far - trade the reality of price change. No one knows the future and your predictions will end up as accurate as your horoscope!

3. Don't use Science

Don't believe anyone who tells you markets move to a scientific formula they don't - if they did we would all know the price in advance and their would be no market.

Trading is a game of odds - not certainties but you can win if you know and trade the odds. You won't win every trade but over the longer term you can pile up huge FX profits.

4. Don't Trade Scared Money

If you can't afford to lose stay away, forex markets are extremely risky and if you are worried about losing your discipline will break down and you will lose

5. Don't follow a guru blindly

To follow a forex trading system you must have confidence in it and know how it works or you won't be able to follow it with discipline - if you can't follow it with discipline you have no system at all.

6. Don't believe experts

News stories are convincing - but that's all they are stories from journalists and there normally dead wrong about every major market turning point. Don't believe everything you read!

7. Don't buy low and sell high

Great theory - doesn't work, it means you must predict again where highs or lows will form.

The fact is most major market moves start from new market highs NOT market lows. Learn to buy these breaks as the odds are in your favor and you normally see huge trends develop if, the breakout is from a valid resistance level.

8. Complicate your trading system

Simple systems work best, as they are more robust in the face of brutal market conditions - over complicate your forex trading system and it will have to many inputs - which will break.

9. Acquire Knowledge for the sake of it

You will often here people say the more knowledge you have the better - but in forex trading you need just the right knowledge.

You don't get paid for work rate you get paid for being right and that's it.

10. Don't overtrade

Most novice traders simply over trade and lose.

They think the more often they trade with their forex trading system, the more chance they have of winning or if their in the market their bound to catch a major move - dead wrong.

You don't get a reward for trading often so don't - only trade high odds set ups and be patient and wait for them.

If you want to learn forex trading correctly and get the right forex education to enjoy forex success these are all errors to avoid. When developing your forex trading strategy keep the above points firmly in mind their currency trading basic errors that must be avoided if you want to get on the road to regular profits.

PROFESSIONAL FOREX TRADING COURSE
and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive course for Currency Trading Success visit our website at: http://www.learncurrencytradingonline.com

Online Forex Brokers - A Service All Novice Traders Should Use

2008-01-12T04:21:00.001-08:00

Most new forex traders want to know if they can be successful forex traders in real time trading so, they try a demo account and conclude that as they have made money they will win - nothing could be further from the truth.

Trading a demo account lacks the vital ingredient of the pressure you feel when trading real money. This is why all novice forex traders should try the new service outlined below which is provided by some online forex brokers.

Before we begin lets think about pressure and give you a scenario:

You can throw a ball into a basket in your garden easily when practicing in your garden - but try it in front of 100,000 people, you have to score to win and the pressure is on and it's not so easy!

While not a direct comparison, it shows you what influence pressure has and it's the same in forex trading, when only dummy money is on the line - its easy.

With real money on the line it becomes harder.

A demo account is useful only for learning the basics of executing your forex trading strategy, executing signals etc and knowing how the platform works and that's about it.

So how do you get the feeling of pressure, without taking a big risk?

The answer is - a protected forex account.

This is an account with limited risk and the salient points offered by forex brokers in relation to these accounts are outlined below:

- You trade small amount with fixed leverage

- You make as many trades as you like in a set period even if you are debit

At the end of a set period the following occurs:

- You take all the profits made

- The broker takes the losses

The set period is normally a few weeks and the advantages are:

You have limited risk on small amount of trial money and get a lot of practice, as you can trade even when you're in debit. A

You also have the motivation to make money, as you keep the profits and the risk is limited and capped.

These accounts offered by forex brokers, act as bridge between demo accounts and real time trading. They give you a feel for what its like to trade money, while at the same time offering a set risk.

Forex trading is probably 20% method and 80% mindset.

You need the right mindset to execute your forex trading system with discipline.

Most traders fail because they lack discipline as methods are easy to learn.

This new service from online forex brokers offers a taster of what it's like to be a trader and deal with pressure.

They're useful for all new currency traders. If you try it with an online forex broker, you will have an indication of whether you can enjoy long term currency trading success or not.

MORE ON PROTECTED ACCOUNTS AND BEST BROKER SERVICES + FREE ESSENTIAL TRADING GUIDES

For more on best forex broker services and some essential trading guides visit our website at: http://www.learncurrencytradingonline.com/index.html

Forex and the Risk Element

2008-01-11T05:32:00.001-08:00

Time and time again I hear the statement that trading on a margin account is a risky business. In fact the NFA and CFTC require that all brokers and agents inform the public of the risks of trading on the foreign exchange.

So how much risk is actually involved in trading Forex? Is it any riskier than engaging in any other kind of business?

Let us first look at the hypothetical case of John and Mary. Each of them opened a forex trading account and funded it with $50,000. Both of them operated on a margin set at 100:1.

John traded very conservatively using one regular lot per trade and applying reasonable money management principals. Unfortunately, John was a poor decision maker and did little to improve his trading skills. Over a period of time, John lost his entire investment.

Mary had no intention of being shackled by the constraints of money management and traded to the maximum of her account margin, each trade carrying the maximum lot size permitted. After a few spectacular gains, Mary's luck ran out and her account was wiped out. Despite being in profit to the tune of $2,500,000 she had lost it all and her original investment was gone too.

So who took the most risk?

If you answered Mary - you are wrong!

Mary is a multi-millionaire. She has several mansions two yachts and a private jet. Her main income is from oil and her company owns some of the largest oil reserves in the world. The possibility of losing $50,000 for Mary is a very small risk. It is similar for her to that of anyone purchasing a lottery ticket - nice if it gives you a few million dollars, but no big deal if it doesn't.

John on the other hand was in a very different situation. John had taken a mortgage on his house to fund his trading account. He had no savings and had even given up his job to start full time trading.

As you can see from the two tales above, risk is about more than what percentage of your account you put at risk.

In our next example, Mike and Sarah both open mini accounts with $5,000. Both are using a margin of 100:1. Neither Mike nor Sarah are independently wealthy but each can easily afford to lose their $5000 without it adversely affecting their lives.

Both start trading and due to lack of experience do not fare very well. After a short time Mike stops live trading and starts to practice in a demo account. Mike seeks help and knowledge and then practices in his demo account to hone those new found skills.

When Mike starts to trade his live account again he uses very strict money management and a well developed trading system. Mike has not yet made a fortune, but he is starting to recover some of the investment that he lost.

Sarah continued to trade without any help. She is still managing to stay afloat.

So who was at the most risk in this example? I would suggest that it was Sarah. Her luck is still holding but if your trading style is built upon luck. You are at great risk.

Trading the forex market requires that you develop a style of risk management. It is necessary to understand the true risk of each trade as it applies to both the market in general and to you in particular.

If you always trade with money that you can afford to lose, your total risk is reduced. If you learn how to trade effectively, then your risk is further reduced and likewise if you adopt a strict regime of money management your risk is again reduced.

Trading will always carry a level of risk. If you intend to adopt trading as a career or investment vehicle, it is up to you to do everything in your power to learn how to properly assess and manage the risk.

Martin Bottomley is a full time professional forex trader, acknowledged author, forex tutor and co-developer of forex trading software including The Amazing Stealth Forex Trading system. You will find information at: http://www.stealthforex.com

Learn Currency Exchange the Right Way and Win

2008-01-10T05:25:00.001-08:00

Anyone can learn currency exchange - but it's a fact that 95% of traders lose and this is simply down to the fact that traders believe currency trading myths or, simply get the wrong forex education. Let's look at learning currency exchange the right way.

1. Risk Goes With Reward

Risk goes with reward we all know that and the rewards in forex trading are potentially life changing, so don't believe its easy, its not - but currency trading success is achievable and anyone can be a successful trader. Just keep in mind you must approach currency trading with a desire to succeed and a willingness to work smart and take responsibility.

2. Your on Your Own

If you want to learn from someone else and use their knowledge as a basis for your forex trading strategy that's fine - but do not follow someone blindly, or you will not have confidence in what you are doing.

Understanding what you are doing and having confidence in it, is the key to applying your forex trading strategy with discipline and this is the key to success. If you do not apply your forex method with discipline, you don't have a system at all. So learn from others but understand what you're doing.

3. Do not Fall for these currency trading myths

The rise of online forex trading has seen the rise of vendors who are out to make a quick buck, most of them are not traders and they are responsible for spreading several myths of which some of the most popular are outlined below:

- Day trading and scalping is a great way to win at forex
- You can predict forex prices in advance
- Buy low sell high is a way to make money
- A forex trading system sold with simulated track record will work
- Forex markets move to a scientific formula

The above are all myths and if you believe any of them you will lose

4. Work Smart Not Hard

You don't need to work hard; you need to work smart when learning currency exchange. You should only learn the information you need to succeed.

One of the best ways to start is to teach yourself forex technical analysis and how to use forex charts. This should only take you a week or so, you can then build your own robust trading system about 2 weeks - that's it. Once you have your system, its 30 minutes or less a day to execute your trading signals.

Forget all the people who tell you to constantly study and learn - that may help you get a university degree but won't help you in the forex markets. You don't get paid for effort - you get paid for being right and that's it.

5. You Must Acquire This!

All successful forex traders have it and it's a trading edge.

A trading edge is the edge you have over other forex trader's i.e the 95% who lose at forex trading. It doesn't matter what it is - but you must understand it and have confidence in it to give you long term success. If you don't know what your trading edge is - you need to get back to learning currency trading basics until you do.

6. Mindset

The real key when learning currency exchange is not so much getting a method but learning to apply it with discipline. Learning a currency trading system is easy; applying it with discipline is the hard part. When you are in the middle of a series of losses, it takes great mental discipline to stay disciplined and not throw in the towel or vary your trading system. You will understand this feeling better when you come to trade!

To be a successful currency trader you have a combination of learning the right knowledge, which gives you the confidence to apply it with discipline. If you want to learn currency exchange the right way, the above essay will point you in the right direction for long term FX trading success.

PROFESSIONAL FOREX TRADING COURSE
and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and more on how to learn currency exchange visit our website at: http://www.learncurrencytradingonline.com

Forex - The Most Liquid Market In The World

2008-01-09T08:16:00.001-08:00

Since the advent of the freely floating exchange rate system, after the decision by Nixon to remove the Dollar from the Gold Standard, currency valuations became much more volatile. This volatility makes it possible to speculate one currency against another.

Speculators quickly seized the advantage and the largest most liquid markets were born. Not only did the international banks provide the service of exchanging foreign currencies to facilitate tourism and international trade, but they soon discovered that speculating in the values of currencies was a profitable venture for themselves. Banks set up trading desks and were soon the dominant speculators in the forex markets. They traded for their clients and for their own account. Thus the interbank system of trading foreign exchange grew from $500 billion per day to the current level of $3 trillion per day.

For a private trader this offers the advantage of incredible liquidity, particularly in the major currencies such as the Euro Dollar. Although currencies are not traded in a formal exchange environment, (although currency futures are), the largest trading by volume takes place amongst banks in the spot market. The spot market settles every two days and is considered as "on the spot settlement".

However, because the market is not regulated in the traditional sense such as an exchange, traders need to be aware of where they open their accounts. The largest banks are obviously safe, as are the largest market makers. We recommend banks such as Barclays, Deutche Bank, Dukascopy and so on.

For a professional, technical analysis system, one can opt for TradeStation. TradeStation is a publicly traded software company with full brokerage facilities. They are listed on Nasdaq. TradeStation also offers users the ability to trade in Forex. Forex orders can be placed directly through the TradeStation software, which instantly transfers the order flow to Gain Capital in New York. The spreads are very tight and the slippage is minimal.

Some brokers advertise that they do not charge commissions but then their spreads may be wider than you think or slippage may be questionable. There is no free lunch. Always trade with a broker or bank with a solid reputation in the Forex markets.

Selwyn Gishen is an author and forex trader with over 15 years experience in trading and trading psychology. He is the author of a book called "Mind" - how changing your mind can change your life!, available from Lulu.com. He is also the author of "Trading the Forex Markets" - A foundation course for online traders. He is the founder of http://www.ForexNewsandViews.com a new website forum for traders. The course is available online at http://www.fxnewsandviews.com Selwyn is currently doing online speaking arrangements with leading forex brokers.

For more information contact him at fx@fxnewsandviews.com

Online Forex Brokers - A Fantastic Idea for Novice Traders

2008-01-08T07:02:00.001-08:00

Will you make money at currency trading? This is a question most traders try and answer by trading a demo account - but the problem with demo accounts is there is no pressure, i.e no money on the line and it proves nothing.

Most traders who make money with demo account lose when they open an account with a forex broker. Now there is a fantastic way for traders to see if they have what it takes. There is a new account called a protected account and it acts as a bridge between a demo and a full trading account. The concept is:

The Protected Account works as a funded demo account in which the client pre-determines their risk level. Among its features are:

-Trade up to 100 times your initial deposit, even with a negative balance.

- Make as many trades as desired, 24 hours a day, using any currency pair.

- At the end of the a set period, (normally two weeks) any positive balance is the clients to keep the broker covers the losses.

This has significant advantages over a demo account, as it simulates the feeling of trading real money on the Foreign Exchange and let's face it when money is on the line we feel and act differently.

Trading is probably 20&% method and 89% mindset and it's a fact that most traders fail because they don't trade with discipline.

To make money you not only need a method but you need the discipline to follow your method when the going gets tough. Its easy to score a penalty goal in your back garden but not so easy when its a huge game and you have to score to win and have 100,000 people watching you!

The Protected Account acts as a bridge between a demo account and a real one, providing an authentic trading experience, but of course the risk is managed and a huge advantage is - even if you go debit on the first day you can still keep trading so you get plenty of trades and plenty of practice.

These accounts are being now provided by forex brokers and they are a fantastic way to get your feet wet, before progressing to a full trading account and will help you determine if you have what it takes to become a successful forex trader.

MORE ON PROTECTED ACCOUNTS AND BEST BROKER SERVICES + FREE ESSENTIAL TRADING GUIDES

For more on Protected Forex Accounts and some essential trading guides visit our website at: http://www.learncurrencytradingonline.com

Is It Possible To Trade Forex Without Using Technical Indicators?

2008-01-07T14:16:00.000-08:00

If you talk to any forex trader, you will find that the vast majority of them use technical indicators to make their trading decisions. However this does not necessarily mean that you need be an expert in technical analysis in order to be a profitable forex trader. Far from it in fact.

There's no question that technical analysis can help you greatly in making trading decisions, and many forex traders would be hopelessly stuck without it, but it is still possible to make good profits without using any technical indicators at all.

For instance you could decide to take a longer-term view and use fundamental analysis to help you make your trading decisions. This way you don't need to be so precise about your entry points and you can sit back and watch your position unfold without having to be constantly watching the markets all day.

This type of trading requires you to be able to interpret the current economic climate and to some extent predict future developments, such as which way interest rates will move in future months.

A classic case of someone who was successful using this method is George Soros, who took a now infamous position on the British pound in 1992. He shorted the pound heavily shortly before the Bank of England withdrew the pound from the European Exchange Rate Mechanism and pocketed over $1bn. This was obviously based on economic factors rather than any fancy technical indicators such as an oversold RSI or MACD crossover.

So you can definitely make big profits from long-term fundamental analysis, but if you are more of a short-term trader then there are still profits to be made. For example, you could look to adopt a strategy based on trading the economic data releases.

This is quite difficult to do, and is not something I'm particularly good at, but it is definitely possible to make profits this way. Indeed I know a few traders who trade the news releases for a living. The major announcements can create wild swings in a currency's price so there are plenty of opportunities to trade these volatile movements in price.

Finally, if fundamental analysis and technical analysis aren't your thing, then you can always use the only meaningful indicator you really need - price. After all the price history tells you how the currency has behaved in the past, and if read correctly can be used to predict future movements as well.

For details of three profitable price-driven forex trading systems please visit:

http://www.topforextradingsystem.com

Education Is the Key to Successful Forex Trading

2008-01-05T14:40:00.001-08:00

Since I came in contact with Forex Trading back in 2002, I have learnt quite a lot. If you are new to forex trading, the information you will receive online will be overwhelming sometimes. My first contact with Forex Trading was through "HYIP" -High Yield Investment Programs. I invested with these people, but lost my money. So your first lesson, is beware of Forex scams. The marketing information can be so thorough, you can hardly figure out if it is a scam. Sometimes, you see even infomercials. Please be careful when to react to these products regarding Forex trading.

Education is the key to become a profitable forex trader. I studied and implemented many strategies. Majority of these left me with a $0 demo account from $50,000. This was pretty shocking to me. I lost many demo accounts. Its pretty devastating. Don't allow this losses to discourage you, because forex trading is really very profitable as I discovered at last.

My first advice is beware of FOREX TRADING Scams- there are many out there. My second advice is trade a demo accounts until you become profitable. If you are still loosing trading a demo account and you start with a real live account, the same failures will reflect on your real account. You might become frustrated and prematurely abandon an otherwise lucrative opportunity. Whatever happens, don't give up. This has been my forex trading experience.

As you trade the demo, continue to educate yourself on the forex. There is a lot to learn, but don't pay huge sums for forex courses. Any course above $500, don't go for it. Some people are deceived, thinking the higher the cost of a forex trading course, the more efficient the course will be. Don't be fooled. Most of these are rehashed information, that you can easily find online. I will do my best to link you to some pretty neat sites where you can get basic education on forex and I will write some good practical articles that will help you also. The main thing to master in forex trading after your basic education on trading the forex, is your emotions. It played a huge part in my failures and now my quite success. Again if you are new to forex trading, take your time and get yourself educated.

If you are already trading a demo, you will find a strategy that turned my business around. It helped me to move my demo account from $50,000 to $155,000 in 2 months. And this results is now reflecting on my real account.

If you are completely new to forex and you do not know what a demo account is or what forex is, don't worry. You will pretty soon. There is a link on my blog to a complete FREE forex trading course. Learn everything you have too for free. With a solid foundation in forex trading education, you can easily evaluate a product to see if it is what the cost.

Caroline Bisong
I started my forex trading carrier back in 2002. Got educated and traded the demo on and off for more than 2 years. I decided to start trading live back in 2005 and it has been a wild ride and I have learnt quite a lot along the way. I hope to share my experience as a lay person in hopes that you will avoid my mistakes and improve your forex trading skills.

http://1-online-forex-trading.blogspot.com

Do You Have What It Takes To Be A Trader?

2008-01-04T04:57:00.001-08:00

Whether you're a doctor, a basketball or tennis player, a musician, or even a cowboy, knowledge and skills are going to determine your status in your "community" of peers. The level of your knowledge and skills can either catapult you to world class status or usher you out the door; create increased (or decreased) demand for your services or performances; provide opportunities to win awards and generate tons of money if you're the best, or no awards and little money if you're not.

Whatever you choose to do in life, your knowledge and skill level will determine your success level. If you've been in the workforce for a while now, you probably already know that how much you know (knowledge) and how well you perform (skills) are major factors in whether or not the company will keep you or fire you. Let's take a look at how trading knowledge and skills determine your success in trading.

While many people believe that the goal of trading is to make money, professional traders know otherwise. Being an active, professional trader, I know that making money is a byproduct of the primary goal of trading, which is to acquire the necessary knowledge and skills to protect your capital. Simply put, it is extremely difficult to make money if you don't have the capital with which to make the money. Nearly all entrepreneurs would not have been able to start their businesses if they didn't first have seed money, a line of credit or loan, or investors to do so. Trading is no different. Trading is a business, not an investment. Successful traders know this. It's all about protecting your capital.

If you are still struggling with your trading when it comes to making money consistently, take a look at your level of trading knowledge and skills vs. those who are actually trading successfully. What do they know that you don't? Why are they doing well while you are not? Where did they get the knowledge and skills to do so well? It could be anything - from your

1. Knowledge (Have you mastered the concept behind candlestick charts, studied up on risk and money management in trading, established an understanding of the stock market price cycle like the back of your hand?),

2. Skills (How good are you at identifying Traps and 3-Bar Candlestick Plays, or how quick are you at responding (vs. reacting) to the trade signals with the proper set up?), Or even your

3. Psychology (Are you too desperate, unable to control your emotions, distracted?),

4. Habits (Do you have the discipline to follow your trading plan no matter what, the tenacity to focus on the charts on your computer screen 8+ hours a day, the determination to get up every morning no matter how bad it was the day before to do it all over again?).

5. Attitude (Are you willing to learn from your mistakes, to get help from experienced traders through coaching or mentoring, to practice patience and a willingness to do what it takes to succeed?).

At the end of the day, if you are deficient in your trading knowledge and skills, be prepared to work harder than those who are already successful. Commit to do what it takes to protect your capital and make money. If you don't, you may well be ushered out the door sooner than you would like.

Leroy Rushing is an active, professional day trader; trading coach; and eBook author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide.

Fundamental Analysis

2008-01-03T13:37:00.001-08:00

It is commonly accepted that there are two major schools when formulating a trading strategy for any market, be it securities, futures, or currencies. These two disciplines are called fundamental analysis and technical analysis. The former is based on economic factors while the latter is concerned with price actions. Of course, the trader may opt to include elements of both disciplines while honing his or her personal trading strategy.

Supply and Demand

Fundamental analysis is a study of the economy and is based on the assumption that the supply and demand for currencies is a result of economic processes that can be observed in practice and that can be predicted. Fundamental analysis studies the relationship between the evolution of exchange rates and economic indicators, a relationship which it verifies and uses to make predictions.

For currencies, a fundamental trading strategy consists of strategic assessments in which a certain currency is traded based on virtually any criteria excluding the price action. These criteria include, but are not limited to, the economic condition of the country that the currency represents, monetary policy, and other elements that are fundamental to economies.

The focus of fundamental analysis lies in the economic, social, and political forces that drive supply and demand. There is no single set of beliefs that guides fundamental analysis, yet most fundamental analysts look at various macro factors.

Interest Rates

If there is an uncertainty in the market in terms of interest rates, then any developments regarding interest rates can have a direct effect on the currency markets. Generally, when a country raises its interest rates, the country's currency strengthens in relation to other currencies as assets are shifted away from it to gain a higher return elsewhere. Interest rates hikes, however, are usually not good news for stock markets. This is due to the fact that many investors withdraw money from a country's stock market when there is an increase in interest rates, causing the country's currency to weaken.

Knowing which effect prevails can be tricky, but usually there is an agreement among practitioners in the field as to what the interest rate move will do. The producer price index, the consumer price index, and the gross domestic product have proven to be the indicators with the biggest impact. The timing of interest rate moves is usually known in advance. It is generally known that these moves take place after regular meetings of the BOE (Bank of England), FED (U.S. Federal Reserve), ECB (European Central Bank), BO] (Bank of Japan), and other central banks.

Jason Stessler is an author for the website Forex Daily Signals:

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Make Money Fast - Want $100,000 Get Now Easily!

2008-01-01T11:35:00.001-08:00

We all want to make money fast but the problem is we don't have much to start with and it is of course easier to make money when you it at your disposal. Well, if you have just $500.00 you can get 100,000 to invest. Lets look at how and putting it work to make money fast.

The way to do it is to open an online currency trading account - they will immediately let you trade your deposit x 200 which on $500, is $100,000

Hang on!

You may say I don't know how to trade currencies - and you may not but currency trading is a learned skill and many people start with small stakes and build wealth using leverage.

It's a fact that online currency trading is now open to all, with the rise of online trading and the money that can be made is truly life changing - however leverage is a double edged sword and can of course work for or against you

You need to make it work for you and restrict risk - so how do you do this?

If you want to make money and have a desire to succeed, then you will be prepared to learn forex trading the right way.

So if you know nothing about currency trading what do you need to learn?

The best way to trade is simply to look at forex charts learn repetitive patterns that continue to repeat and are a reflection of human nature - this is of course a learned skill, anyone can do it. You need to lock into the longer term trends and run them for profit and cut losing trades quickly.

Is it really that simple?

The answer is yes and no.

It's a fact that 95% of traders fail to make money at currency trading but it's not the market that's at fault it's their approach.

Most traders simply fail to appreciate that you need to have not only a good method - but the confidence and the discipline to execute it and stay with it, through periods of losses to achieve long term success.

Do not be fooled - obtaining trading discipline is not easy, but there is a big difference between something being easy and being achievable.

Again anyone can learn discipline - if they have the right attitude and a willingness to learn the correct way of trading.

Making money is never easy and you certainly wouldn't expect it to be with the rewards that are on offer in forex trading but again if you have desire and a willingness to learn you can.

Let me tell you an inspiring story...

In 1983 Richard Dennis a famous trader set out to prove that anyone could learn to trade successfully. In just two weeks, he taught a group of diverse people, all from different backgrounds, of both sexes and all ages, to trade - none had any previous experience.

The result?

They went on to become famous and within 4 years had made $100 million dollars!

Now I am not saying that you will become as rich as this group - but there is nothing to stop you becoming a competent and successful trader, creating wealth and an income that could change your life.

The real crux of this article is - do you have a desire to make money fast and do you have the willingness to learn the skills required?

If you do - then welcome to the world of global FX Trading and the opportunity to make money fast.

From the above you now know that you can learn forex trading and you know it's a challenge - but its one you can take up if you want to and the rewards as you have seen can be immense.

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Forex Day Trading and Scalping - A Guaranteed Way to Lose Your Money Quickly

2007-12-31T11:30:00.000-08:00

I have been involved in trading forex for 25 years and still amazes me how many people think forex day trading or scalping makes money - it doesn't its simply the dumbest way to trade and will lose you your money. Let's examine why.

Countless millions of traders trade trillions of dollars each day and it is impossible to determine what this mass of people will do within such a short time span as a day or a few hours.

Support and resistance levels are meaningless as volatility can and does move prices anywhere in a day session. If you don't believe me lets look at the proof

The first question you need to ask yourself is if forex day trading really did make money why is there no real track record of gains to show the success? There are thousands of day trading systems promising gains and none of them have a real track record - what do you get?

A lot of hype and a track record that is simulated (not traded for real) in hindsight (knowing the closing prices) Here is the normal one you will see which is a CFTC standard one:

"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Put the above disclaimer on a track record and you can say anything you want and vendors do. They appeal to lazy or greedy traders and the trader buys and gets a guaranteed loss and the vendor makes a guaranteed profit from the sale.

Day trading is simply the dumbest way to trade and sensible knowledgeable people fall for it all the time - maybe the don't stop to think or simply miss the disclaimers when they buy these systems.

You can if you want to prove me wrong try and find a track record ( that's real dollars and audited) I saw one day trading system show his bank balance of evidence of his success - success in selling day trading courses NOT trading that's for sure!

So if you find one be sure to let me know I have been looking for a day trader to prove me wrong for 25 years and I Haven't found a long term track record of profits and know I never will.

So avoid day trading and pick another method that will help you gain currency trading success by trading the odds.

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Forex Killer Strategy - Join The Forex Trading Elite

2007-12-30T15:43:00.001-08:00

A true forex killer strategy will involve minimizing risk through the medium term trade, predicting trends and acting upon them with precise timing. If you can do all these things, you will be well on your way to becoming a forex killer. This is something new traders fail to realise- many use statistical data up to a point, but in the end base their trades on emotion and instinct- this is a sure-fire rote to failure in foreign exchange.

There is oftentimes bad press about the currency trading market- that by and large only the big players can really compete. Governments and large financial institutions such as banks do indeed make the majority of the profits, and have the greatest influence on market swings, however there are a lot of individual traders (spectators) who consistently make thousands of dollars trading foreign currency. It is not rocket science; however there are certainly some fundamentals that set them apart from those that fail.

Here are some key skills of the elite forex trader's

1) Favor The Medium Term Trade

It has been shown time and time again that by favoring the medium term trade you effectively minimize risk, and increase the chances of consistent profits. Think of it this way, you are better off making consistent small wins as opposed to large win's and large losses. As Justin Kuepper, contributor to Investopedia.com suggests favouring a medium term trade will "help you save money and ultimately become a profitable retail forex trader".

2) Predict Trends

Foreign exchange, unlike the stock market is a relatively small playing field (4 main currencies and 34 second tier currencies). The beauty of this is that it makes it easier and faster to interpret past market data and make educated decision's based on fact rather than instinct, There is no doubt that the most successful trader's use some form of forex trading software. Such platforms allow user's to efficiently read market signals and know when to act upon them for the greatest chance of profit, and the smallest amount of risk- this is effectively a true forex killer system. If you can efficiently manage the statistical data on the foreign exchange market, you are well on your way to success.

3) Act Upon Trends With Precise Timing

It is all good and well to have access to statistical data, but reading it and knowing when to buy and sell is another thing. Unless you are super experienced, again forex trading software will be the best place to start.

Conclusion

If you are serious about succeeding in currency trading, and being amongst the forex trading elite you need to favour medium term trades, be able to interpret and predict trends and act upon them with precise timing. If you can do these things, and ensure you never base a decision on emotion or instinct you will have the greatest chance of making massive profits in forex.

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Another Fine Mess We Are Facing and How to Get Out of It

2007-12-29T12:52:00.001-08:00

In the financial world, the safety belts are being fastened as we are getting sucked into storm conditions for starters, and tornadoes as the main course.

Those, holding vulnerable securities and burdened by other such exposures like holding the some depreciated foreign currency or property, will wish at the moment they rather invested in products like tranquilizers or worry beads.

I suppose that here is gold one could get into, but it is a bit late in the day for some people since the price is pretty high already.

If one has the patience to wait, currency and property usually regain lost ground in due course, and actually huge money has been made in selecting this type of investment at crucial times. It may be profitable to keep that in mind..

Therefore, the many who are stuck holding a depreciating foreign currency must hang on for their day to come. Those, who own a property also depreciating in value, face the same problem. Right now, the only loss they are facing is that they could have bought the foreign currency at a lower price, and that they could have bought their property at a lower price. However, that is a different kind of loss to the one they would have if they sold now. One is the loss of opportunity to buy cheaper, and the other is an actual money loss.

For those who are not involved in holding any depreciated investment, the chances of making money by exploiting some of the opportunities both existing and coming up, must be a rather pleasant thing to contemplate.

It may be prudent to study the property and foreign currency markets, in order to be ready to step in at any time.

With the currency or property business, it is possible to get into a minus position due to unexpected situations and many investors can get caught. However, it is not unusual to crawl out of trouble time and time again with a nice profit into the bargain, providing one does not give way to loss depressions. Keep cool.

There are a number of realtors, who are ready to show some terrific deals, and there are a number of foreign currency exchange companies well able to take care of their clients and offer them tasty exchange rates which most banks will not wish to match.

I have known smart operators who prefer to buy property when the prices are low rather than high. I also have seen many successful operators buying some currency that has been quite weak and not in much demand.

I wonder if that old famous formula they follow is the proven one of buying low, and selling high!

Paul Dubsky is director of Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.

Learn More About Currency Trading The Easy Way

2007-12-28T06:43:00.001-08:00

It is so very difficult for many people to ever figure out exactly what currency trading consists of exactly and if you are one of those people then you need to start by reading this article and continue your research further, even after reading this. It is possible for just about anyone to understand currency trading but sometimes unless it is put into simple words, it just feels so frustrating for many.

There actually are some easier ways for everyone to learn more about currency trading, so why are you not looking into this further? Start right here, right now, before you know it you are going to finally get what everyone else has been talking about for quite some time now. You will feel just like one of them now, those big time investors. It will feel like such a huge accomplishment once you can finally explain to others what currency trading really means.

Currency trading is the buying or the selling of other countries currencies and it really is that simple. It is also know as the foreign exchange or FX. You need to know that the most common currency that gets traded is the US dollar. However, it is not only about trading one type of currency, it is actually about trading two different types of currency or exchanging them. Remember to never forget about one of the currencies, it is very, very important for you to keep a close eye on both of the currencies that you are exchanging or trading because they are of equal importance.

Understanding all of this can be accomplished, as long as you are paying attention right now. As you are growing as an investor be sure that you are always current on all of the activities going on within the market because that is so very important. Do not be just crazy with it, like always thinking about it, maybe even dreaming about it at night. Just be cautious with it that is the best advice that I could give to you al

The value of your currency just depends on what country you are doing your trading of course. Keep in mind that economical and political happenings definitely have a huge impact on how well these things do. Knowing and understanding what currency trading is and what the currencies trading cost is both very very important information to have. If you ever have any spare time on your hands make sure that you are constantly looking for new strategies that are most efficient in earning you the largest amount of profits.

Check out some of the many different websites available to you all over the internet, you might just find exactly what you have been searching for, answers. As you grow older and wiser you will begin seeing things much more clearly and it will totally pay off because you will never have to worry about retiring or anything else financially, as long as you do your homework and play your cards right.

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Future Trading Online - Nuts And Bolts Of Online Future Trading

2007-12-27T05:34:00.001-08:00

Prior to the becoming the popular investment destination which it is now, online trading finds its roots in the eighteenth century with Japan trading rice and silk . The same concept was launched in the US by farmers who brought their products like oil and wheat on the market in an attempt to sell all their possessions.

However, as a system for determining the demand was not yet established at the time, the excess supply went to waste, and the shortage of supplies led to pushed prices at times.

Finally, market participants - buyers as well as sellers, found a way they can place an order in advance. They decided on a set amount of produce to be traded at a later date, and payment was made upon delivery, with sometimes an advance partial payment.

These were the first precursors of futures contracts. Businessmen have learned how to make money on these contracts through speculation. Some bought contracts when prices were low and sold when prices skyrocket, thus earning a profit for them. This finally metamorphosed into a capital market.

Today, the future trading online is a center of fierce competition between traders. It has proven to be effective in stabilizing prices of commodities.

Since the produce is bought in advance, the shortage of commodities or excesses do not pose problems, Suppliers plan ahead of time and are able to make prompt deliveries. But, thanks to the unpredictability of the economy, futures markets are risky business.

But do keep in mind, when we are talking about futures trading on the net, the investors do not intend to be the final buyers of the supply, they are just present to make a profit on the trade. As an investor, you are present to buy early, and sell the contract (not the produce) before it expires.

There are two main venues for futures: the traditional exchange of speech and the most popular commercial future online. Only the location varies, but they are essentially the same in both formats.

The basic difference is that in the classic speech forum for the exchange, brokers played a vital role because they were responsible for the execution of orders. Customers sent their orders to brokers in the trade, who in turn sent it to other brokers and agents on the floor. When the deal is complete, the results are given to the customer and finally sent to brokerage houses.

For future trading online, customers can transact their trades directly from their computers to an online market place offered by the exchange. Presentation and execution of client orders are electronically done. Brokerage approval to trade, and the opinions of the brokering activity, are performed by the computer.

The computers on the exchange track all the commercial activities and marks matching bids and offers. The information is immediately relayed to brokerage houses and compensation. In a few seconds, the prices are known throughout the world.

But, sound research and thorough economic judgments are useful tools to get involved and be successful in this market.

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Forex Technical Indicators - Are They Confusing You?

2007-12-26T07:30:00.001-08:00

Forex Technical Indicators are a series of tools created primarily to measure volatility, like the stochastic indicator, or to smooth the zig zag of the market, like a MA or moving average. It is important to realize that all indicators are trailing indicators. They are excellent at telling us what the market just did, but they will never be able to tell you what a market is about to do.

Many fail to understand this distinction. An indicator is used primarily as a tool to assist in the traders pattern recognition. Not to predict the market. Let me explain further.

When you spend large amounts of time, manually back testing with a pad and pencil. (And if you are not performing this at least 2 or 3 hours a day, you are missing out on training that is worth its weight in gold) You begin to develop a bit of sixth sense. My own back testing is set up, so I can scroll one bar at a time to the right (the future) this allows me to play a little game of recognize a pattern and predict what the price will do next.

After just 5 to 10 hours of this type of self training, you really begin to discover patterns in the pricing chart that are predictable. Leading indicators like the EMA (exponential moving average) are excellent to have up along with the pricing, because it gives you a visual point of relevance. For example, when the price is very far above or below the EMA, you know the price is in an extreme state, compared to where it was, your gut immediately tells you the following price action will at some point be coming back to the EMA This is a type of pivot point trade.

As you manually back test, you will find many types of "set ups" in the price action. These set ups are typically cataloged and recorded by professional traders who actively look for certain price formations that have a high probability of doing what the formation predicts.

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Forex Trading - Make Money Fast With These Simple Tips

2007-12-25T13:38:00.001-08:00

If you are trading Forex and making mediocre gains or simply want to improve your overall profitability then this article is for you. The tips we are going to list here are not conventional - but most traders don't make money fast in Forex trading so don't let that worry you!

These are simple yet powerful tips any Forex trader should consider to improve their profitability. A good place to start is with classic investment book - the Zurich Axioms by Max Gunther. The wisdom is simple, profitable timeless, unconventional, funny and its one of the most inspiring and essential investment books ever written.

Several of the Axioms are not accepted wisdom - however the Swiss investors who wrote them became rich, while most investors are not.

Let's look at some of them.

"Resist the allure of diversification"

Diversify your investments is accepted as a way to make money longer term and reduce risk - but all it does is dilute profits. You will read about risking 2% per trade and spreading your trades around - but if you are like most Forex traders and trading a small account of around $2,000 you won't make much money risking $40.00!

The Zurich Axioms encourage you NOT to diversify.

Look for the big potential winners and risk more. This does not mean you are being rash, you are simply risking more on the high odds trades and ignoring marginal trades - many traders simply trade too much.

In currency trading you don't get paid for how much effort you put in or the amount of trades you make - you get your reward for being RIGHT with your trading signal.

The Pareto Principle - 80 / 20 Rule

The above philosophy of trading less is related to famous the 80 / 20 rule or Pareto principle. The rule states that 80% of your results come from 20% of your activities. This is true in many areas of life in sales, business and trading.

The rule postulates that by concentrating on the best investments, and ignoring the others, you can improve your profitability. By only focusing on a smaller number of good trades.

This is really a common sense rule, yet very few Forex traders think about or practice this rule. Most Forex traders are obsessed with trading - they think if their not in the market they will miss a move.

Other traders try trading in ways that simply offer them no chance of success like Forex day trading or scalping. I know traders that make triple digit annual gains and only trade once every few months and I know other traders who trade every day and lose.

Keep in mind - the aim of Forex trading is to make money - nothing more.

Love Risk!

The major reason traders don't win is they are frightened of risk.

Does this mean you should act in a rashly or in cavalier manner?

No it doesn't:

However - to make big gains you have to take calculated risks when the time is right and a good trade presents itself and load it up with a meaningful amount of money.

In the Zurich Axioms Gunther states:

"Worry is not a sickness but a sign of health...If you are not worried, you are not risking enough" and "Always play for meaningful stakes. If an amount is so small that its loss won't make any significant difference, then it isn't likely to bring any significant gains either".

If you want to make money fast in Forex trading then you need to risk meaningful amounts on the right trades at the right time.

So if you want to make money fast seek out the high odds trades and load them up with as much as you can afford and aim for and achieve higher returns.

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Calculating the Probability and Possibility of Success of an Investment

2007-12-24T01:52:00.001-08:00

The probability of a specific outcome and presumption that the outcome result is measured in terms of the odds is fine providing the odds are the true odds.

The odds are numbers designed to show, what the speculator will receive for his outlay when betting on a certain event. It does not matter whether the event is a horse race, or price fluctuation on the foreign exchange currency market.

To be guided by odds formulated by bookmakers is to be guided by their necessity to balance their books because of the public weight of money invested for a particular result to happen. This is their key to the measurement of the odds. To presume that odds formulated this way is a pointer to a winner is a delusion. Only true odds can do that.

So what are the true odds as opposed to just odds created by the market/bookmaker?

Supposing there is a horse running in a race which is called Father Xmas, and because it is Xmas time, a lot of people will back it, liking the name. Their money will create a demand, and the odds will shorten. These are not true odds representing the winning chance of the horse. These odds are market oriented odds which do not represent the actual capability of the selection.

So what are the true odds needed in your corner to point to achieving a good result?

It is the process of weighing up what will not happen rather than what will. Finding out the real form of the selection based on a series of past performances under various conditions and a host of other data will direct us in the right direction. It means engaging serious attention to any minute point and having the ability to go by that.

Applying this to foreign currency, means that one cannot be constantly under the spell of how the market behaves, but must take the numerous circumstances into account to form an overall picture.

There are times when governments support their currency which might appreciate as a result, but often only for a very short time. That sort of thing does not necessarily signal to buy that currency, and does not represent true odds. However, a temporary following of a trend can often be productive, and spotting it early can mean getting true odds in your favour.

Realizing that certain currencies tend to behave differently at holiday times is most important. Currencies even tend to behave differently at certain times of the day. Learning to spot this is helpful, and is a plus. The days when certain important data is being released are imperative to bear in mind. Also are the days, when important people are due to make a speech.

Negative news about the currency you wish to beat can be positive news for the currency you are holding.

Looking for the negative points about the currency you are opposing can be sometimes more productive than looking for the good points about the currency you are holding.

Ideal conditions are when the positive data lifts your currency, and the negative data drags down the other currency at the same time. Now, you are set to fasten your safety belt with great pleasure. That is also the time, when the foreign currency exchange game is like any other game, only more so. I have often maintained that bookmakers seek to have the odds in their favour, and I do not know of any poor bookies. It is prudent to always follow their example.

The foreign currency market is very strong and full of players. There is never a shortage of money to take out for the well informed, and there is a bottomless black hole for the reckless punters to throw their money into, especially the ones with certain systems. I used to know a fellow who rarely wrote letters home to his folks, but did send brief telegrams saying system going well please send more money.

Remember, that one of the odds in your favour is to deal with the foreign currency exchange companies who are cheaper than the high street banks. You can bet on that.

Paul Dubsky is director Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates - http://www.foreigncurrencyexchangeservices.co.uk

We believe we are the only company which offers special rates to Senior Citizens.

Article Source: Free Ezine Articles

Chart Pattern Recognition - The Secret Art Of Flipping A Coin

2007-12-22T07:20:00.001-08:00

Technical Analysis can be a confusing topic for many traders. With a large array of indicators to back test, for many traders, after all that work, they realize that no indicator really will consistently and convincingly let you be right more than maybe 4 or 5 times out of 10

The other side of the coin is that, the nature of reality is chaotic. I refer back to the pareto principle which states that reality and the course of events occur in a random and "stacked" fashion. They will not be evenly spaced in a neat and predictable way. That 4 or 5 out of 10 system may be wrong 20 or 30 or even 40 times in a row, then suddenly you will get a streak of winners.

This type of behavior can be psychologically painful for many traders and typically the temptation is to cut corners or tweak the system mid flight. Essentially to be a good trader, you need discipline. Of course, you need a good and reliable system first. But essentially it will be your money management that will be responsible for your wealth and income.

If you can resist changing things and second guessing your system when that inevitable streak of losers comes along, you will get your money back providing your stops are small and your wins are large. The real danger occurs in the following scenario (and believe me, I know, I have done it to myself several times)

You get many losers in a row. You are feeling your incredible and exciting gains disappearing before your eyes. Every day for 2 weeks you experience nothing but losses. Then the wins come back, so you throw away all your discipline and trade big to try and recoup your losses fast. The losers return, but you keep your trades big, knowing in your heart the market owes you, and at this point all you are doing is gambling. The large trades stop you out to the tune of 10 stop losses of value per trade. Your account dwindles miserably. You finally quit being so cavalier and go back to your original trading system, only now, following your own rules, the trades are tiny and of course thats when the winners come back strong.

What do you do? Be cavalier again? Or stick to your system trade sizes. Of course you do, you're whipped, you took a nasty beating and now you are humble again. Of course now you are behind 15 weeks of trading effort and virtually starting again. Technical analysis is only part of the story.

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Foreign Exchange Trading - How To Use Economic Indicators to Predict Price Movements

2007-12-20T08:20:00.001-08:00

When you start foreign exchange trading, one of the main things you have to learn, obviously, is how to predict price movements of currencies.

There are two types of analysis that can help you with this. One is Technical Analysis, which is concerned with exact charting of markets and price movements. The other is Fundamental Analysis.

Fundamental analysis is much less precise, but goes much more deeply into the causes of currency movements. It involves a whole range of factors including political situations, government policies, company takeovers, even natural events such as earthquakes or floods.

Of all the factors studied in fundamental analysis, few are more exact or provide better information for foreign exchange trading than economic indicators. These are sets of economic statistics published on a regular basis by government or private sector agencies. When taken together they can help you judge fairly accurately how a country's economy is doing.

Obviously there are a huge number of economic indicators used in any given country. They are divided into leading indicators and lagging indicators. Leading indicators take place before major changes in the economy become apparent, so can be used to signal that these changes are taking place. Lagging indicators signal that the changes already have occurred.

There are some leading economic indicators in the USA that are particularly important for foreign exchange trading. These include:

GDP - Gross Domestic Product - represents the monetary value of all goods and services produced by the economy over a stated period. In the USA it is published quarterly. It includes the pace at which the country's economy is growing or not growing.

CCI - Consumer Confidence Index. This is published monthly in USA and is seen as a big market mover - it is looked at closely by the Federal Reserve when determining interest rates.

CPI - Consumer Price Index - published monthly in USA. Again this is seen as a major market mover and an extremely important indicator of economic health.

NFP - non-farm payrolls. This is published monthly in the USA and records changes in the numbers of employees apart from farm, government and private household workers. It represents about 80% of US producers and is one of the biggest market movers.

PMI - Purchasing Managers Index - a monthly composite index of manufacturing conditions in the USA. It is seen as important, especially the section that deals with the growth in new orders.

There are many more economic indicators, but these are some of the ones that carry the most weight. But how can you be expected to know all of these?

The most important things you need to do for the purposes of foreign exchange trading are:

Know when each leading economic indicator is due to be released in the country whose currency you are trading.

Understand which aspect of the economy is focused on in the data - e.g. inflation, economic growth, confidence, etc.

Remember that the crucial issue is not the actual data, but the extent to which it falls within the expectations of the market. For example, the fact that there is a rise of 0.3% in the CPI would not be as important as the fact that the market had been expecting a fall of 0.1%.

This can provide you with vital clues for foreign exchange trading. The sooner you can make use of them after they appear, the more profitable your trading will be.

To learn more about how you can become involved in the exciting world of Forex trading, come and visit http://www.bizwrite.co.uk/Forex/forexindex.html

The Process of Trading Currencies Online

2007-12-17T22:10:00.001-08:00

The existing foreign exchange, forex, or currency trading market is worth of nearly $2 trillion of transaction daily. This is, unquestionably, the largest and most lucrative financial market to lure any investor.

The processes of currency exchange to take place, a robust, proven, and efficient infrastructure is required that will rapidly process the huge volume of orders, receipts, and carry away all other assorted computational tasks. There are innumerable types of parameter working together and influencing the global trading process.

The logistics behind modern currency exchange has evolved over several centuries and mostly driven by a series of conventions. Thanks to advances in modern technology, the process of exchanging currency has progressed from a slow, cumbersome, paper-based effort into a dynamic, computer-driven marketplace. It has opened up to the small and medium level investors with increasing potential and complexities.

There are approximately 164 different global currencies that are traded. The majority of transactions involve a small subset of this group. The most popular are USD (United States dollar); EUR (European Union euro); GBP (Great Britain pound); and JPY (Japanese yen). The global market is virtual and open round the clock.

Most trades take place on cash market, where prices are quoted in "pips," which is the last significant decimal of the given exchange rate. Because the number of decimal places varies by currency, knowing the typical exchange rates for major currencies can help in avoiding confusion. An exchange rate of 1.1582 is quoted either as 82 for small figures or as 15 for large figures.

The two types of trades on the cash market are the spot market and the forward market. In spot trades, the transactions are considered to be immediate, as it must close within 2 days after the trade is matched. In the forward market, the transaction closes any time beyond 2 days. It can be several months but you must remember that the longer the close, the greater the risk of a currency fluctuation.

One extremely important concept for the process of currency trading is the bid and the quote prices. Bid is the price offered by a buyer. Quote or ask or offer is a price placed by a seller. The difference between these two prices is known as the spread, and it is quoted in pips.

When the buyer and seller agree on the transaction, a trade is executed, and currencies are exchanged. This exchange not a physical one but involves a series of accounting entries made by the two parties, which is recorded as the new positions.

Every process of currency trading involves two elements: buying one currency; and simultaneously selling another currency. So it is buying cheap and selling dearer that ensures a profit.

So you will have to consider the constantly fluctuating exchange rates to book a profit. But never underestimate the potential of a risk management feature that can save you from losing your investment in the process of currency trading.

To find out more about trading Forex please visit The Process of Currency Trading

Forex Currency Trading - The Latest Vogue

2007-12-15T23:44:00.001-08:00

Forex currency trading is something that is almost becoming a sort of fad in many parts of the world. Before you take a plunge into forex trading it is always preferable that you equip yourself with at least the basics of it. Such knowledge is always bound to stand by you in the long run. You should for instance always educate yourself about the currencies that you intend to trade. You should always know a lot of things in detail about the country whose currency that you intend to deal with in the forex market. Such knowledge will help you in predicting the market tendency much more accurately.

Experts in the field always recommend beginners to initially go in for smaller accounts and then gradually move on to higher accounts. It is because in the field of forex currency trading it is only through practice that one gets perfect. Starting off with a mini forex account for example is a good option which lets you minimize your losses while you also get to learn about the intricacies of the forex market.

It is only through constant practice and with experience that you will be successful in the forex market. This is one reason why there are more successful corporations than individuals when it comes to the forex market trade, unlike the case of the stock market. Experience teaches you a lot of things in the field of forex currency trading. For instance margin trading by beginners is bound to make them lose a lot of money. Until and unless someone is sure about the entire process of forex currency trading, you should stay away from things such as margin trading.

Forex currency trading is a complex field involving a lot of players such as dealers, global money managers, international brokers and multinational corporations. There are many instances when even the governments of several countries intervene or get involved in the process, particularly when there is a need to provide stabilization to their respective currencies. It is for this reason that you should first of all equip yourself with the adequate knowledge before you deal with forex currency trading. Experts therefore always recommend that you test forex trading strategies initially with a demo account before shifting to bigger accounts. You should always remember that there is a significant amount of risk of loss involved in forex trading. A realistic evaluation of your expectations is what you need when you deal with forex currency trading.

For your free course teaching you exactly how to succeed with forex trading using simple and effective forex trading systems simply go to http://forex-trading-platform.org

Forex Trading - Can Anyone Succeed?

2007-12-15T15:22:00.001-08:00

Can anyone succeed in forex trading? Absolutely - as long as that person has the ability to accurately predict market swings and trend, and act upon them precisely for minimum risk and maximum gain. Forex trading uses currency form a large variety of countries and forms a trading marketplace where trillions of dollars are exchanged every day. It is important to understand the different parts of the market, in order to accurately interpret it.

The majority of money traded on the forex marketplace takes place between governments, banks and large financial institutions. International banks make up 50% of the forex market. The reason being they have millions of dollars of their customer's money to invest and profit from.

More recently commercial financial companies such as UBS, Deutsche bank, and Citigroup and HSBC have done extremely well on the forex market. In fact a large portion of their revenue is created through trading their investors money.

To get back to the initial question, yes anyone can succeed, but it is recommended to trade via a forex broker. The reason for this is that an individual will be able to achieve more leverage if trading through a broker- they will be able to accumulatively invest larger amounts and therefore achieve greater profits for their clients.

Savvy individual traders also achieve significant success on the currency trading marketplace. The key to success as an individual is minimizing risk (as most individuals will have a set amount to invest, and fall back upon) and conducting medium term trades where profit potential is at its highest. The key to most individual currency trader's success is forex trading software. Software such as the Forex Killer System allows trader's to accurately predict market trends, and exploit them for profit. The beauty of such systems is they usually have a 'demo feature', which allows the capabilities to be tested without having to invest any real money.

Conclusion

Anyone can succeed in forex trading provided they have access to as much data and trends as possible, know how and when to act upon these trends, and can consistently achieve profitable trades- no matter how small they are. The idea is to have consistent small profits, rather than large profits and large losses.

Want to learn an amazing breakthrough forex trading system which will help skyrocket your trading profits? Please visit:

http://www.forextradingsoftwarereview.com/Forex_Killer.html

Currency Trading Success - Getting the Right Knowledge for Success

2007-12-15T10:07:00.001-08:00

One of the biggest myths of currency trading and achieving currency trading success is knowledge is the key, while knowledge is of course important, this is not the hard bit of currency trading. Anyone can learn currency trading yet 95% of traders lose - Why?

Anyone can learn currency trading its easy but traders make two fatal errors.

1. They learn The Wrong Information

When I talk to traders I am bemused at what they think it takes to be successful and they learn information that is guaranteed to make them lose.

For example - they want to try day trading, think you can predict currency prices or that buy low sell high is a great strategy and of course they lose. These are just 3 examples but there are many more.

Forex trading is all about learning the right information and avoiding the myths.

Most traders think they can take short cuts and believe making money is easy, in forex trading but of course its not and you wouldn't expect it to be, with the rewards on offer. The good news is its not hard either, if you know how to get the right forex education and apply it.

2. They Think Working Hard Will Help.

Other traders I speak to think that the more information they have the better and the more complicated their forex trading strategy is the better it will work

Wrong again.

You don't get paid for effort in forex trading you only get paid for being right with your trading signal.

Furthermore, complicated systems do not work as well as simple ones as they have too many elements to break - all the best currency trading systems are simple.

Let me give you an example about working smart rather than hard and achieving forex trading success.

In 1983 trading legend Richard Dennis conducted an experiment that set out to prove anyone could learn currency trading. He took a group of people of all ages, both sexes and of varying levels of education and taught them to trade in 14 days.

None of them had ever traded but after 14 days, they went on to trade, made Dennis $100 million and many became trading legends.

In two weeks they learned all they needed to know which leads me onto the next point

3. Discipline is the hard part

Trading is as much about mindset as it is about method.

Dennis focused on teaching them a method but he also made it simple and easy to understand which ensured they could trade with discipline.

If you don't have the discipline to follow your method through the bad periods - then you have no method.

Discipline comes from inner confidence which comes from understanding and these three key areas are the ones all successful traders have.

Learning forex trading is easy, if you focus on getting the right forex education - if you do that you then need to conquer your emotions to trade with discipline and win.

The equation for success is really

The right Knowledge = Simple Robust Trading System + Applied with Discipline = Forex trading Success.

Acquiring discipline is not easy - this is the hard part of achieving currency trading success.

We will look at this key area in more detail in part 2 of this article.

PROFESSIONAL FOREX TRADING COURSE and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Currency Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html

Forex Trading Strategy - Why You Can Never Predict Forex Prices

2007-12-14T12:17:00.001-08:00

Many new forex traders think the core of a forex trading strategy should be predicting where forex prices will go. Try it and you will lose, you will win if you trade in a different way so why is prediction not the way to make money? Let's find out. If you are predicting you are in effect hoping or guessing which is not a way to make money in any venture let alone forex trading. You cannot predict the future and if you try, your predictions will be as accurate as your horoscope.

There is however a big market in people who say they can predict and many theories that say you can such as Elliot wave, Fibonacci and Gann. They argue that as human nature is constant so the markets must be as well. However if you think about it this logic is obviously not true, because if markets were predictable with science, we would all know the answer in advance and there would be no market.

Markets move based upon uncertainty and while human nature is constant, it is not predictable with science - trading is a game of odds not certainties. If you want to win you trade the reality of price change and don't try and guess in advance.

For example if you see a market testing a level of resistance you do not simply enter a trading signal - if you do you are trading against the trend and you could be wrong. Instead you wait for prices to test resistance and wait for prices to turn back the other way. Sure you miss the turn - but you couldn't predict that anyway, so there is no point trying!

How do you know when to trade.

The secret of correct market timing is using momentum oscillators. There are many you can use and three of the best are: RSI, ADX and the stochastic indicator. We don't have time to go through exactly how they work here simply look at our other articles and make them part of your essential forex education.

The key advantage they give you with your forex trading strategy is they allow you to gauge shifts in price momentum. You can use these shifts, to allow you to trade the reality of a price change to achieve better market timing and more forex profits.

The forex traders who rely on prediction lose and are generally na? or greedy traders who think forex trading is simply a walk in the park - its not and neither would you expect it to be. The real pro forex traders don't rely on hope or guessing or attempting to buy market tops or bottoms they look at and trade the reality of price change.

The way to succeed in forex is simply to look at support or resistance and time your entry on shifts in momentum and you should not just do this with a view to these levels holding. You also need to buy or sell breakouts of new market highs or lows. It's a fact that most markets develop their best trends from these highs and lows and you need to learn to go with them and enter the market.

It may look like your getting in at good levels and its tempting to wait for the pullback - but these moves tend to not pull back and accelerate and offer the biggest profit potential. The market price is the right place and if you cut out prediction and trade the reality, you can have the basis of a forex trading strategy that can make big consistent profits.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
+ PROFESSIONAL FOREX TRADING COURSE

For free 2 x trading Pdf's with 90 of pages of essential info and a great currency trading course visit our website at: http://www.learncurrencytradingonline.com/index.html

Forex Trading - Why You Should Invest

2007-12-13T12:38:00.000-08:00

Forex trading is an extremely lucrative investment option where money can be made 24 hours a day via investing in foreign currencies. The forex marketplace is simpler in terms of product (currencies) you can invest in when compared to other investment options such as the stock market.

As mentioned the foreign exchange market is constantly trading- as the sun sets in one country, it rises in another. What happens to one currency, directly affects another- and the gains are not always inherently good or bad.

Banks are most commonly the source the source of currency trading, as millions of dollars are traded daily. So the question must be asked, should you get involved in forex trading? If you are already trading in the stock market, you would have a reasonable grasp of concepts you need to trade successfully

Trading on the stock market essentially involves investing money in companies and watching how they consequently perform. In foreign exchange you are basically buying and selling foreign currency, and monitoring swings and trends giving you signals when it is profitable to buy and sell. Using forex trading software is a great way to get a feel for the marketplace. You will almost always be supplied with a demo account which will allow you to be involved in the market without risking any of your own money.

Software such as Forex Killer allow you to create such demo account's, but also supply users with credible trends and signals, which literally tell you when to buy and sell on the stock market. You can see the software in action via the demo option, to see if your trades are going to be profitable. Further to forex trading software, broker's most certainly have a place in currency trading.

To be involved in the foreign exchange market as an individual you require a broker or institution to represent you.. Individuals are also called spectators, as the amount of money they invest is tiny compared to governments and institutions. Having only a small amount of money is not a reason to not invest, a forex broker can assist in determining what your best options for investing are. Specifically in the US there are strict guidelines as to who can operate as a broker. Always be wary and careful of scams- specifically on the internet.

Conclusion

The foreign exchange market is a fantastic investment option from every angle. The main reason being there are not too many options for investment on the market, simplifying the process of making profitable decisions. Further to this the use of forex trading software and broker's can greatly assist trading, and further increase profitability.

Want to learn an amazing breakthrough forex trading system which will help skyrocket your trading profits? Please visit:

http://www.forextradingsoftwarereview.com/

Understanding Interest Rate Influence On Forex Market

2007-12-13T10:09:00.001-08:00

Forex traders around the world are waiting for the last US Federal Reserve interest rate announcement for the year on Tuesday, December 11, 2007 at EST 1415hrs. Most Forex market traders are anticipating at least a quarter point cut from the current 4.5%.

Interest rates are simply defined as the amount of money a borrower must pay to a lender in order to hold their money. The lender provides money to the borrower which is the bank and in return, after specific time duration, will receive interest in conjunction with the original sum he or she lends.

For newbie entering the Forex market arena, you may not fully understand how significant this decision can affect the foreign currency market. In reality, interest rates play the most important role in moving the prices of currencies in the Forex market. A country interest rate dictates the flows of money. As currency represents a nation's economy, differences in interest rates affect the relative worth of currencies in relation to one another

When a country's central bank raises their interest rates, naturally, investors will want to capitalize on the higher interest rate returns by shifting money and asset into the country. Hence, as a country interest rates rise, their currency is seen as being stronger than other currencies. An increase in interest rates encourages traders to invest within that market and causes the demand for the currency to rise. As demand rises, the currency becomes scarcer and consequently more valuable.

Up till now, the whole discussion is focus on what will happen if a nation's central bank raises its interest rate, but what if the central bank decides to lower their interest rate? Take the above scenario, if Fed decides to further lower their interest rate, US dollar will weaken. But will it falls further against other major currencies? The outcome is unknown as only the Fed will know by many basis points they decide to lower. If this time round, the cut is a mere quarter point, anything much may happen as most traders already factor in this cut. This is called "market expectation". If the US Fed decides to take a more drastic cut of 0.5% basis point, I am sure the dollar will becomes even more bearish and will continue its fall against most major currencies.

Forex Trading beginners may be wondering why the US Fed wants to continue to lower their interest rate. The US Fed has been lowering interest rates to encourage borrowing and stimulate the sluggish US economy. In Forex Trading, a major side effect of a lower US interest rate is that lower rates make dollar-denominated securities less attractive to global investors.

JoonTrader is the owner of forexdiscover.com. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.

Guide to Choosing Your Perfect Forex Trading Broker

2007-12-12T10:19:00.001-08:00

It is not so straightforward to find a forex trading broker that can meet all your needs. There is no perfect dealer. Maybe as long as your broker can meet your criteria, they are considered "perfect" to you. With more than 100 trading platforms online, going through each broker one by one can be confusing if you do not know what to look out for in a reliable, professional and reasonable forex trading broker. If you are reading this, you just found yourself some golden tips here.

By now, perhaps you are fully aware that the foreign exchange market is not regulated by any central body. Since this is so, it can be subject to fraudulent or less than ethical and professional practices by some dealers. Read the tips below and make sure you apply them and you can prevent falling into scams and end up with a professional forex trading broker you can work with for a long time to come.

1. Do not be embarrassed to ask the prospect for references.

2. While the currency market is not controlled by a central body, each country may have its own regulatory body or watchdog organization to exercise certain control over the business activities of these forex trading brokers. If the dealer is based in the US, do a check at Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) to see if the dealer is registered with these two organizations. Find out if there is any bad report or complaints against your prospect.

3. Make a comparison of the account specifics of each prospect. You should compare the minimum opening deposit, spreads, leverage, commission charges and more. Always be sure to ask the prospect if there are any other charges other than what was shown on their websites. They are obliged to inform you. This step is helpful as not all brokers who say they offer the lowest rates on their websites are truly honest about it.

4. An easy to navigate trading platform is important especially if this is the first time you are trading currency. This is why it seems puzzling why some trading platforms that are created are so difficult to use. If the prospect offers a demo account, sign up with them.

5. Requoting can really cost you big time. While some brokers entice you with the "lowest bid/ask spreads and commissions", they may practise requoting. This means that when you carry out a buy/sell order for a currency pair, the price you see is not what you get. In short, you are charged at higher prices if you buy, and at lower prices if you sell. Either way, the odds are against you.

Do not undermine this requoting matter. Some currency dealers may requote on a difference of more than 8 pips. That is a lot if you are trading on small price ranges. There have been complaints from traders about many which requote whenever they are profiting. Avoid these and try finding one that does not do so or at least not so often.

With these golden tips, you are now equipped to search for a professional broker to open an account with. Currency trading is not for the faint hearted. They can be risky but with controls and certain good investing habits, the profit potential is huge. Discover from my website which forex trading broker has scored well for each of the aspect we spoke about earlier and pick up more useful tips on foreign exchange trading today.

Learn everything about forex trading from Davion's wildly popular Forex Trading Made Easy blog - from mastering the basics of foreign exchange trading to discovery of new trading tips, strategies, tools and more.

Why Gold Should Be Part Of Your Stockmarket Portfolio

2007-12-11T11:51:00.000-08:00

One of the great advantages of CFD trading is that it permits you to seamlessly move within asset classes at little cost, and opens up a wealth of new contracts not just in stocks, but across a range of investment classes. Clients of Blue Index will be aware that we carry out analysis of the gold price on a daily and weekly basis, and our track record in pinpointing the regular movements in the price of the metal has been excellent.

Our long term stance has been bullish since gold ended its 20 year bear market at the turn of the millennium, and for those CFD traders who are not aware of the big picture, this article updates our rationale for long term investment in gold. It should be noted that since we began daily coverage two years ago, gold is up 80% in dollar terms, and over 50% for sterling based investors. We think there is a lot more to come.

Why the outlook for gold is so bullish

The starting point for the analysis of any commodity is supply and demand, and for gold the simple fact is that supply is declining and demand rising. As it stands, and because of the previous lack of profitability in exploiting new mines, most major sources of supply are declining and the global gold market currently faces an annual supply shortage of about 600 tonnes.

The gold supply

World mine production began to level off in the 1990s as gold traded a wide range but remained significantly lower than previous peaks, and by 2004, production was falling at a rate of 5% p.a. according to the World Gold Council. This as yet has not changed significantly and is a long term factor because it can take almost a decade for a rise in gold prices to generate exploration and eventual exploitation of new mines.

In terms of the existing supply, much of this has come from ongoing central bank offloading of gold, and here many developed countries have now stopped both official and unofficial sales of gold. Previously, and as a result of the need to diversify, central banks carried out regular gold sales, but in some cases (see below) the reverse is happening as finance ministers see the need to protect against the inflationary consequence of fiat monetary policies that are rampant across major western economies.

Another aspect of supply that is changing is forward selling from gold producers, where output prices were traditionally locked in to protect against potential future falls in gold. This was a normal part of commodity hedging, and to some extent it might have helped keep the price down, but given the ongoing bull market, mining companies now run the risk of losing potential future profits if they hedge into rising prices. It is estimated that global gold producers have reduced forward sales by over 40%, which would result in a drop in supply of almost 1000 tonnes.

Demand for gold

A big change in demand has come from central banks in China, Japan, India and Russia as a result of the need to diversify their vast US dollar reserves to some extent. The Russian central bank has hinted more than once that it plans to double its gold reserves, and the subject has regularly been mentioned by the Chinese central bank. All this is mainly as a result of the high proportion of trade-related US dollars flowing into their coffers, which has made them proportionately more reliant on the value of those dollars held.

As an example of potential demand, Japan and China have the eighth and tenth largest gold holdings in the world, but their current gold holdings are equivalent to just 1% of respective reserves. An increase of 50% in their gold reserves for just these two central banks would be the equivalent of buying over 600 tonnes, which is around a quarter of world annual mine production. Russia and India's gold as a percentage of total reserves is slightly higher but stands at just 4%, so there is scope for additional demand here.

Asset allocation and investment in gold

Back in the 1970s commodity investment was an essential part of asset allocation for diversified portfolios, but despite the long term bear market ending just after the turn of the millennium, many investors continue to shun gold stocks. The two biggest gold stocks in the world are Barrick Gold Corporation, now valued at $36bn, and Newmont Mining, worth ?21bn, and the total value of the top ten gold stocks is less than $150bn. If you compare this with the current value of Exxon Mobil at $505bn and it can be seen how insignificant gold stock valuations remain given the continued potential of this sector.

The total market for physical gold is also small, and stands at around $3.5 trillion, but the total value of the US stock and bond markets alone is close to $40 trillion. For asset allocation purposes, a 1% move into gold and gold stocks would equate to the purchase of eight times the annual production of gold worldwide.

M3, inflation and the gold price

With M3 money supply growing rapidly in most of the developed economies, the only outcome other than drastically higher interest rates, which looks unlikely, is a devaluation of currencies as has been the case throughout the last century. Should the dollar continue to move to lower ground as measured by the dollar index, which looks likely, further diversification into gold and other asset classes as a protection against the falling value of dollar reserves is likely to accelerate.

In 1980, the gold price peaked at $850 in times of raging inflation and 27 years later it is still below that peak level. For it to get back to those levels, which might be seen as extreme at the time, it would now need to be closer to $2000. In real terms though it looks dirt cheap, and long term investors should view $1000 as a realistic target in the next couple of years, which is 25% higher than the price right now.

Mike Estrey is the Head of Research for Blue Index, the Day Trading specialists in Contracts for Difference. Foreign Exchange Trading also forms part of their extensive services.

Make Money Fast - A Simple Plan for Big Profits

2007-12-11T02:51:00.001-08:00

If you want to make money fast you can and you don't need much to start with - but you do need a plan and a proven method and this is what this article is all about.

It's about becoming a forex trader from home - Before you say I couldn't do that or it's to expensive, check out the following facts below.

- Forex Trading is a learned skill and anyone has the potential to get the right knowledge to succeed - in just a couple of weeks.

- Its not to expensive either, you can open an account online with $500.00 or less and while you wont make big gains quickly on a small amount like the above you can Leverage this cash and that's why the opportunity is so lucrative

Leverage the key to big profits

If you put down $500.00 with a broker, they will let you trade 100 times this amount - $50,000.

That makes things a little more interesting!

Of course leverage is a double edged sword, it can work for or against you - to make it work for you, risk control is essential.

The best way to trade forex is with forex charts and follow trends, (if you can read a graph and recognize patterns you can trade successfully). It's a proven fact that currencies trend for long periods up or down as they reflect the economic health of the country.

You aim is to lock into these profits and follow them and simply liquidate your losers quickly. Let me now give you a story that will inspire you.

Fact - ANYONE Has the Potential Here's Why...

In 1983 legendary trade Richard Dennis, set out to prove that anyone could learn to trade. He gathered a group of people of all ages, both sexes and of varying educational skills, he then taught them a simple trading method in just 14 days.

The result?

He set them up with trading accounts and they went on to make him $100 million dollars and become some of the most famous traders of all time. In fact many still trade today.

Now you may not get as rich as the above group of traders - but it shows you that anyone can make money with a plan.

Is it that easy?

The answer is yes and no.

Forex trading is easy to learn - but you must adopt the right mindset and that means the discipline to cut losses and run profits - if you can do this, then you are on your way to currency trading success.

You can educate yourself on the basics of using forex charts quite easily it is then a question of having the discipline to apply your method. Do not be fooled into thinking discipline is easy it's hard to follow a plan when money is on the line - but again it's a skill anyone can learn.

If you want to win at forex trading all you need is a desire to succeed, a willingness to learn and the discipline to follow your plan - if you do this forex markets offer you an opportunity to build wealth and change your life.

The Real Question is:

Do you have the desire and are you up for the challenge?

If you are welcome to the worlds most exciting business opportunity - trading global FX For profit.

LIVE THE DREAM
BECOME A PROFESSIONAL FOREX TRADER FROM HOME!

Even if you have never traded before you can trade like a pro so get 2 x free trading guides and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html

Tips for Online Currency Trading

2007-12-10T10:28:00.001-08:00

Did you realize that currency trading is the world's largest business? Yes, it's true. Over three trillion dollars worth of transactions take place each and every day in the world's currency markets and online currency trading is now available to everyone.

The markets are extremely volatile and fortunes can be won and lost in mere minutes. But please understand that currency trading is anything but some sort of get rich quick scheme. It is like any other investment and can be compared to the stock market. Be warned, if you are interested in participating in currency trading you had better get a sound education or you will surely lose your money.

The currency market is an informal, unlike the formal stock exchange, market where dealers buy and sell currencies in order to make a profit. Currency trading is open 24 hours a day, 7 days a week because it is a global exercise. To borrow a phrase from the British Empire, the sun never sets on the currency markets.

To invest in online currency trading, you need to open an account with one of the many reliable firms that you will find on the Internet. You must deposit a minimum amount of money and fill out the requisite paperwork before paying allowed to trade such currencies as the French franc, German mark and Eurodollars. I would strongly recommend to the newcomer to take it very slowly as he embarks upon the world of online currency trading.

The market operates on a very high margin-trading basis. That means you can control a great deal of money by putting down only a fraction of it. It is called leverage and you are usually allowed approximately 10 times your cash position. That can be a big advantage for making profits. It can also cost you a lot if your trades go against you, so you have to be on top of the situation. This is not a game.

If you are going to venture into online currency trading, study the trading and the markets. Many of the larger online currency trading firms offer information and training materials that are extremely helpful. It would also be beneficial to learn about technical trading as that is what most short-term traders use to help make their buy and sell decisions. There are mountains and mountains of information available on the Internet.

Online currency trading is not gambling but you need to know what the investment is all about and how it works before you consider trading. Look for a company that has been established for a long time and has a solid track record. If you are not sure about something and by all means ask as many questions as you need.

Also, note that online currency trading is not for everyone but for the people that take the time to learn the business, it can be very profitable and rewarding. You should only use money that you can afford to lose and never trade with the mortgage or tuition money. If it's done right they can be quite exciting and lucrative. The market moves quickly and if you enjoy fast paced action, nothing beats online currency trading.

About The Author

Morgan Hamilton offers his findings and insights regarding online currency trading. You can get interesting and informative information here at http://www.bestxchange.com/financial-information/finance/online-currency-trading.html

Forex Currency Trading Systems

2007-12-10T10:27:00.000-08:00

While the market is swamped with websites and books offering advice on the 'best' and 'newest' forex currency trading systems, it is important to do a thorough check of the system to ensure that it really works. There are a large number of such forex trading systems that are completely fraudulent or simply do not work, and have been created with the sole intention of making a quick buck. But despite this, there are plenty of forex currency trading systems out there that do work and can be quite reliable if used in a disciplined and consistent manner.

Everyone is looking for a forex trading system that works and gives them high and continuous profitability over a period of time. One must be realistic in searching for a good system, and keep in mind some essential factors when selecting a forex trading system. Firstly, it is critical to fully understand the logic on which the trading system is based. Only a complete understanding will enable you to use the system effectively over a long period of time. Not only grasping the basic logic, but also agreeing with the forex trading system it is important. The forex trading system of your choice must seem logical and intuitive to you or else you will find it impossible to stick with it.

Secondly, you should embrace a good forex currency trading system for the long term, and put in the appropriate amount of research and trial based on this idea. A solid system will tap in to long term patterns and the potential for sustained success of any system in the short term is negligible. Thirdly, be ready for a hit. Be financially prepared for a downturn and based on the assumption that at some point you will face this event, plan for your staying-afloat strategy. Emotionally and money-wise, be ready for the big one when it comes.

When you commit to a forex currency trading system, ensure that you give the system adequate time to start showing profitability. This may be not be months, but possibly years, since every system experiences a time when it produces losses or lowered returns. Give your selected system a fair trial and try to trade consistently and logically. Additionally, some systems will not offer real trading data, but will be simulations that are based on a particular logic and work with historical data. As long as the logic is solid, there is no reason to reject these systems outright.

The simplest forex trading systems tend to work most effectively in a rapidly shifting market place. Just because a system seems complicated, there is no reason to think that it will perform better. Pick something user friendly and intuitive that appeals to you. Identify the major trends that affect a currency and select a forex trading system that works in tandem with it. Finally, a cardinal rule of the trade: Always use on a trading system that is disciplined and rational. Do not be swayed by emotions. This has spelled the downfall of some of the most influential and successful forex traders, including the pros, and must be avoided at all costs. While it may seem unlikely to you now, once you are in the midst of your forex trading experience, you will find it easy to be moved by your emotions.

The biggest advantage of a forex trading system is that it works completely without emotions and if it can be followed mechanically, it will be the key towards a long term profitable career in forex trading.

About The Author

Andrew Daigle is the owner, creator and author of many successful websites including a free forex trading and educational website called ForexBoost at http://www.ForexBoost.com and http://www.cashcurve.com, a website for learning about other online business opportunities.