Tuesday, March 24, 2009

Forex Trading Tutorial - Your Guide to Forex Trade

Forex market or foreign exchange market is a market which operates 24 hours a day and involves trading in different currencies of the world. Booking profits and making money by trading in forex is no longer restricted to experts - ordinary people like you and me can make profits by using readily available forex trading tutorials, some of which are available online.

The players in this trading system are major financial institutions, central banks, retail currency traders, speculators, large international companies, government institutions, companies with overseas operations etc. The trading instructions are exchanged via global network system over telephone or computers. Investment made by traders is largely governed by movement of major currencies.

Majority of forex trading tutorial with the purpose of educating the users on how to forex trade emphasize and begin with the basics of forex which are:

Each world currency is denoted by a uniform three letter code which is used in forex quotes by all involved. Normally instruments which are traded by forex traders/ investors are currency pairs. A currency pair is the exchange rate of one currency over another. The most traded currency pairs are EUR/USD, GBP/USD, USD/JPY, AUD/USD.

Trade can happen only when you compare one currency with another. To quote an example - you cannot trade by buying and selling USD alone. You need to compare the USD rate to any other world currency rate if you desire to undertake a forex transaction. In the above example say you may wish to sell USD and purchase EUR against it. Forex trade will happen when you accept the price offered for this transaction by your dealer. To continue with our example upon receipt of your concurrence to the price quote, the dealer will actually buy and sell as per your instruction and confirm the price for this trade transaction involving sale of USD and purchase of EUR.

Forex trading tutorial give detailed explanation of some of the technical terminologies also. For example technical terminology for first currency of a currency pair is base currency which is USD in the referred example. The second currency is referred to as the counter or quote currency. Each currency pair is expressed in units of the counter currency needed to get one unit of the base currency.

Forex trading tutorial are indeed of great help in getting us started. However a word of caution here. While trading in currencies take care to ensure that you trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit.

So what is stopping you from making use of proven system software and help readily available to start playing the game. If interested in knowing more about one such user friendly tool visit http://www.know-to.info/forex/fx2.html

Reuters - Bridgewater Associates Inc, one of the world's biggest hedge-fund managers, said on Tuesday it might be interested in participating in the U.S. Treasury's public-private investment program, calling it a "big transfer of money from the government to the banks and to the buyers."

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Friday, March 13, 2009

Forex Trading-Making Money With Woodie's CCI

Ken Wood is a unique man. He's a successful trader as I'm sure you know. He runs a website (I don't remember the address, just Google his name). It's a huge community of traders all trading his style--Woodie's CCI. Even better it's all free.

Well, I will admit that I tried to trade Woodie's CCI method. I couldn't make it work for me. However, I think that was mostly because I disagreed with him about some fundamental issues, not because his method didn't work.

For example, did you know that Ken recommends that you don't look at price at all? To quote him, "You don't need no stinkin' price!" Furthermore Ken maintains that the CCI is a leading indicator. (No such thing exists, but that's another story.)

So I just couldn't swallow all that. However, it obviously works. Thousands of traders converge on his website to trade together all day and night.

Now, if you can't look at price, just how does Woodie make his profits? He actually has about six patterns (his favorite is the ghost), that you need to learn to see in the CCI itself. No, I'm not kidding!

I believe he sort of invented a new form of technical analysis. That is finding patterns on indicator. The only problem is it's not a leading indicator. If there was such a thing as a leading indicator, that would be equivalent to saying that some mathematical formula knows the future. Really?

Obviously that isn't true. So no leading indicators exist.

Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".

Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide

A man looks at the stock price monitor at a private securities company Friday March 13, 2009 in Shanghai, China. Asian markets soared Friday as the prospect of fresh stimulus measures in China and Japan and upbeat signals from major U.S. firms like Bank of America sparked hopes of a turnaround in the world economy. Chinese markets, closed to most foreign investors and often out of sync with regional bourses, were lower, with Shanghai's benchmark giving up early gains to trade down 0.2 percent. (AP Photo/Eugene Hoshiko)AP - World stock markets railled again Friday as confidence remained buoyed by positive U.S. economic data, hopes of further stimulus measures from Japan and China and an upbeat comments from Bank of America's CEO.

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Wednesday, March 11, 2009

Online Trading Systems - How To Find A Profitable One

Trading online is now so much easier and far cheaper than using a broker, that is why there are some many people electing to trade online rather than having to go through the hassle of phoning a broker directly every time they want to place a trade.

However the major draw back of trading online is that you are trading on your own. And as any seasoned trader, whether they are trading online or offline will tell you the biggest challenge is having a reliable trading system that you can use in your online trading.

An online trading system means you enter into a trading position when all the trading signals are met through your online trading system using a check list.

The only way you are going to be able to succeed as an online trader is if you have a strict set of guidelines you can follow in a trading system and having the discipline to stick to them

Having and using a predetermined system of trading will enable you to take the emotion out of the trading decisions you make thereby greatly increasing your chances of success in trading online.

There are many online trading systems available on the internet and in book stores, and most of them do work to a certain degree. But picking an online trading systems depends on your style of trading, which is possibly hard to do if you have not been trading for any considerable length of time.

All you can do when you find an online trading system that you think may be profitable is to back test it. What is back testing? It is simply taking the chart of a stock currency or indices and going back in time and then advancing the chart bar by bar and making a decision on what you would do...(either go long or go short) with the information you have at hand.

To do this back testing properly for online trading you have to make sure you do not cheat by seeing what happens further on in the chart. What I do is put my cursor on the slide button on the chart, shut my eyes and basically go back in time. That way your decisions can not be coloured by what you have seen prior on the chart.

To find out about a trading system that uses the time and price concept visit: http://www.tradingslingshot.com

Hil Smith is the author of http://www.tradingslingshot.com which is a website with free educational material for online trading.

Reuters - U.S. accounting rulemakers and regulators said they were pushing ahead with new guidance on mark-to-market accounting that has forced banks to write down billions of dollars in assets in the financial crisis.

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Sunday, March 8, 2009

Setting Yourself Up For Futures Trading

I've noticed that many people new to trading are a bit confused about the mechanics of setting up and funding a trading account with a broker. You needn't be, if you can manage internet banking, then establishing and operating a trading brokerage account is a snip.

The first step is to find your broker. As a trader, you are looking for an efficient electronic platform that lets you manage your account and trading activity interactively over the internet. A few things to look for include:

  • Low cost of execution for the contracts you intend to trade. Prices are either quoted as a "round trip" or "per side". As a future trade involves two separate transactions - Buy to open, Sell to close, or vice versa - a "round trip" price covers both sides. If you see an advertisement for $5 per side, you know that a trade will cost you $10.
  • Fast execution of the orders you enter. By "fast" I mean virtually instant execution of market orders. The trading platform must provide a direct electronic interface to the market. Do not entertain any two stage system where orders are submitted to brokers who then submit them to the exchange.
  • Support for all common order types. At the very least, you should be able to enter market, stop and limit orders. If you don't want to be tied to the screen for the full session, you should have orders such as "one cancels other" or "one triggers other" available, so that your strategy can be automated.
  • A chart is the trader's basic tool for analysis and good brokers supply excellent packages as part of their offering. You should be able to display market information in multiple formats and time frames. The package must support the display of common indicators and studies on the charts.
  • Real time data feeds are vital to the day trader. You should be able to watch your charts updating on your screen in real time. You should also be able to see "market depth" information. (This shows the number of orders resting in the market at various bid/ask levels.) In general, there is a monthly charge for this service, which is often waived if you make a certain number of transactions.
  • Access to international markets. The move to electronic markets has enabled brokers to provide direct interfaces with exchanges around the world. As well as the US Markets, you want to be able to trade European and Asian markets. This is particularly important for non-US based investors.
  • 24-hour support service is essential. Most of the time you will never need to contact your broker by phone, conducting all your normal trading activities via the internet. But if something does go amiss, you want to know that there is somebody available to fix your problem immediately. In fast moving markets, time can be of the essence.
  • Last, but not least, it is useful if your trading platform allows you to trade futures options as well as pure futures contracts. As your trading develops, you may want to utilize option strategies and it is frustrating if that means you have to change your broker.
During my career I have used two futures brokers - Xpresstrade and Interactive Brokers. Both provided excellent service. Xpresstrade uses a browser based trading platform which means that you do not have to download any special software onto your computer. I found it simple to use, with powerful features, and the support was first class.

Interactive Brokers (IB) is my current broker and I am delighted with their offering. Everything is automated, and there are a multitude of different facilities available on their trading platform. For example, orders can be entered through a conventional order entry screen, directly from a "book trader" screen, or by using graphic tools directly on the charts.

IB has excellent support services. However, they cater for the knowledgable trader and are not into "hand holding" support. A beginner may find their interface more confusing than some others, like Xpresstrade.

As an indication of prices you can expect, Xpresstrade charges $5 per side for common electronic contracts; IB charges $2.40. Both offer discount structures for volume traders.

As I type this I am following the Corn market at the Chicago Board of Trade. Click here to see my simple trading screen.

I have two windows open. On the right is the charting window set to follow the session using 2 minute candlestick bars, with volume shown along the bottom. It is easy to display studies, or draw trend lines on the chart.

To the left is the "book trader" window which displays market depth at various price levels, and permits one click entry of all common order types. For example, left clicking a particular price level enters a Limit order, and a right click enters a stop order. Buy/Sell buttons at the top of the screen enter immediate Market orders.

This is a great setup for day trading. Screens are easy to customize; so each trader can have their own setup, according to personal preference and the tools they like to use.

I have noticed that new non-US traders sometimes feel reluctant to open accounts with US brokerage firms. Naturally they feel more comfortable and "connected" working with a brokerage based in their own country.

But I advise you to think internationally in this business. The US futures markets are big and the industry servicing them is well established and sophisticated. Look for the "best" brokerage, not necessarily a local one. Remember that your interaction will be totally web based, so it really doesn't matter where their office is.

Another fear I have heard expressed by new offshore traders is that their money is not secure, or may be difficult to access. All that I can say is that in over ten years trading experience I have found depositing and withdrawing funds to be simplicity itself, and absolutely reliable. US futures brokers are strictly regulated, maybe better regulated than brokers in your own country.

The best brokers provide facilities on their website which completely automates the account application process. Be prepared to spend a bit of time on this because because there are several documents to be read and completed. It can be a bit intimidating the first time you do it; there is a lot of boilerplate ensuring that you understand the nature of various risks involved. You are also asked questions about your assets and prior trading experience. It is important to read this material carefully, but avoid becoming too discouraged by all the legal language - the brokerages need to advise you of all worst case scenarios and, naturally enough, ensure that they can not be held responsible for losses incurred during normal trading activities.

Quite soon after submitting your application form you will (hopefully) be advised by email of your account acceptance and provided with details including User Id and Password. Login and change the password as soon as possible.

An offshore trader using a US brokerage has a couple of extra steps to go through. You must fax (or email scanned copies of) your passport and a utility bill to comply with stricter security regulations since 9/11. You will also be asked to fill in a W-8 form for tax purposes. If you have no other business activity in the U.S. and live in a country which has reciprocal tax agreements, completion of this form means that the brokerage does not have to withhold a percentage of profits for taxation purposes. This simplifies matters, because you only need to declare income and pay taxes in your own country.

Once you have a user account and password, you can log into your account. At this point you need to fund it. This is normally done by a standard electronic funds transfer. Offshore traders may need to wire funds, but this is a simple thing to arrange from your bank branch. (In my case, Interactive Brokers provide the facility to deposit funds using the standard Australian funds transfer system which is easily done via internet banking.When the funds arrive in your account, it is activated and you can view your balance on the screen. When you trade, the balance is updated in real time.

Normally there is a facility on the secure web site to set up details of your bank account. Having done this once, you can withdraw funds whenever you wish with just a few clicks of your mouse.

That is all there is to it. Following these few simple steps sets you up with a brokerage account providing access to markets throughout the world, with software facilities which were once the exclusive province of large investment houses.

Now you are ready to start playing the trading game!

David Bennett is an independent Futures Trader. He lives on the Gold Coast of Australia, trading financial and grains futures contracts in Chicago.

Visit http://12oclocktrades.com for more articles.

In this Wednesday, Jan. 14, 2009 file photo, Bernard L. Madoff, the accused mastermind of a $50 billion Ponzi scheme, leaves Federal Court in New York. Bernard Madoff and $50 billion. His name and that number have become inseparable in describing the enormity of what has been called the largest white-collar fraud in history.  (AP Photo/Stuart Ramson, file)Time.com - You can't trust the SEC, so here's how to spot a Ponzi all by yourself.

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Wednesday, March 4, 2009

Automatic Forex Trading Software - Why Should You Get One?

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:

  1. Recognize trends and act on them quickly
  2. Work around the clock trading for you even while you sleep
  3. Make split second decisions much faster than any human can
  4. Analyze the various markets around the world and quickly shift your money around to make the maximum profit
  5. Beat other traders to the best deals by being able to spot opportunities automatically
  6. Trade in several markets together
  7. 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.

AP - A Republican lawmaker is accusing the former chief executive of mortgage finance company Fannie Mae of being dishonest in testimony before Congress about discounts he received on his home loan.

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Saturday, February 28, 2009

Supreme Tactics For Currency Trading

I wanted to take the time to share with you some supreme tactics for currency trading. This is a great business to get involved in because there is a huge potential to profit from home. Think of all the expenses that are associated with your job. Think of all that money you spend on gas and the time you spend in traffic each day. Currency trading allows you to work from without having to worry about that stuff.

  • Be a man and let it go: You're going to have bad trades. Some are going to be worse than others. Some will leave you cursing the market and others will have you cursing yourself. You need to learn to let it go. The second your trade ends, so should your thoughts about it. A lot of people just can't let it ago and they become full of emotion. This leads to them making even more bad trades. This makes it a snowball of lost profits. Just learn to let it go and move on. It will serve you well.
  • Technicals are greater than emotions: You need to look at currencies and their technical information to make decisions. I know deep inside your stomach, you'll just get these feelings. It will just feel right to buy in no matter what the technicals say. This is very dangerous thinking. Typically, when you get these gut feelings, your emotions are associating something that worked out successful before, but rarely is it based on technicals.

The 10 Minute Forex Wealth Builder will help automate your trading and increase your profits with as little as 10 minutes of your time. Check out the 10 Minute Forex Wealth Builder Review.

A view of Fannie Mae headquarters is seen in Washington, DC. Troubled US mortgage finance giant Fannie Mae said Thursday it lost almost 60 billion dollars last year and asked the Treasury Department for a further 15.2 billion dollars in aid.(AFP/Karen Bleier)AFP - Troubled US mortgage finance giant Fannie Mae said Thursday it lost almost 60 billion dollars last year and expected to suffer more losses in 2009, and asked for a further 15.2 billion dollars in government aid.

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Monday, February 23, 2009

F X Trading Tips

F X trading or foreign exchange trading is a great place to earn a second income. I'm going to share with you some of my favorite tips that I have used to help me generate a good amount of quality trades that have let me make a decent sum of profit.

  • Select The Right Broker For You: There are hundreds of brokers that you can use, both online and offline. Since there is an abundance of choice, this can be a difficult task. You face one particular challenge that comes with the internet and that is determining the quality of a broker business. Anyone can put up a website on the internet. You don't know if this is a large reputable business or someone running this out of their parents basement. The best place I've found to get unbiased views on brokers are at forex forums. These can be easily found with any search engine. Traders get together and talk with each other. Often the most hotly talked about topics are brokers. You'll hear everything, from the good, bad and ugly.
  • The News Has Free Information: Have you ever wanted a mentor to tell you what is going to happen in the market, well, you won't really get that advice for free, but the news is the next best thing. It won't tell you what will happen in the currency market, but it will give you economic news that you can figure out how it will affect the currency market. Most economic news is released at scheduled times, typically in the morning. Basically, if the news is "good" and good for the economy it is good for currency. If it is "bad" and bad for the economy, it is bad for currency.
  • High Volume Times: The best time to trade is during the high volume times. There is on simple reason for this: no manipulation. Since so many people are trading and there is so much money moving around, you won't see a big bank make monster trades that can cause currencies to go in a completely different direction. Everything typically moves with market forces at this time.

I'm currently giving a 7 day free forex course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.

Reuters - There was a time when a tumble below $10 in the share price of a company in the Dow Jones industrial average (.DJI) meant ignominy.

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Friday, February 20, 2009

Another Forex Autopilot Trading System?

Are you trading forex and having issues with making the best pips possible? How much time have you spent doing technical analysis or lamenting over making bad trades that are draining your Forex Account, and the second mortgage you just took out for just trading forex?

Sounds like you are in a dilemma! You hear from all over the place that Forex is the rage, and that Forex is ripe with over Three Trillion in Liquidity and that there is plenty for the taking. Who in the hell told you that? Some late night infomercial wanting to rob you thousands of dollars just to tell you the same thing someone on a forum could tell you?

Yeah, unfortunately, just like with business and life, forex does have a failure rate. Except Forex trading has a very steep 95% failure rate for new traders! Why do so many traders fail? Well, for one, they don't feel like spending 10 hours a day investigating the different currency pair charts and doing the exhaustive calculations to see where a likely entry/exit point is going to occur. Another reason, is because there is so much to learn, and so little time. Being the case where some traders have family and friends, and a life, and even a full time job, Forex trading is just not going to work out for them.

Don't fret, as there is a new way to trade the ever growing currency trading markets. Trade with an automated system! Automated Systems are not exactly a new wave of culture in the Forex end of trading, but have been around for quite some time. Almost all trading systems started out as a private system, making their owners very wealthy. Some of these systems the owners have decided to sell to the general public.

One system, the Forex Backlash system works by pinpointing the price action in the Forex Market, and calculates the previous actions and historical data to make a decision: Should I trade or not trade? Now, the automated trading system trades for you and doesn't even need any level of human intervention. The autopilot systems make it easier for the trader, as now, you can spend lost time with family, friends, and have a life. You can have a day job and not need to do life consuming amounts of technical analysis.

Want to see detailed results? click http://www.forexbacklash.info/

Members of the coalition forces participating in Operation Enduring Freedom stand at attention as they wait for the arrival of the head of the coalition, Gen. Tommy Franks, in this Friday, Nov. 29, 2002 file photo taken at Bagram Air Base in Afghanistan. A reader-submitted question about how many countries have armed forces in Afghanistan is being answered as part of an Associated Press Q&A column called 'Ask AP'  . (AP Photo/Pat Roque)AP - You're struggling to make ends meet, but each month you manage to scrape together your mortgage payment, if just barely. Are there any programs out there that might help you lower your payments to something a little more affordable?

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Sunday, February 15, 2009

Beginners Forex Trading

Although forex trading can be lucrative and fun, keep in mind it is highly competitive and risky. If one wishes to join in the fun, it's a must to have at least some basic forex trading knowledge even if it's a beginners forex trading primer.

To get the different aspects of trading, a beginners forex trading course would surely benefit. You would learn the basics including trading concepts, terminology and the necessary processes to build your skills and confidence as you step out into the forex trading marketplace for the first time. Good training looks wisely at the size of the forex market and the volume of trading to ensure that the beginners forex trading experience prepares one to think on his toes and to be able to make quick decisions.

There are certain fundamentals that the new trader should learn, such as the different orders that are placed in buying and selling, bids, margins, rollover and leverage. Also, beginners to forex trading need to appreciate the psychology of trading and the importance of stress management. Included with stress management, are risk management, discipline and patience, to name a few. To gain a sound understanding of technical and fundamental analysis, to master the skills of drawing up and reading forex charts, these are paramount on the road to success.

Beginners forex trading can be challenging. Therefore, it is extremely important to gain knowledge into the background of the forex market by studying its history so that a strategy for trading can be established into todays market.

Fortunately, there are many different ways to study forex trading in today's world and the new trader has several choices, but whichever method you choose, make sure it is the correct one for you personally.

The starting point for some could be a beginners forex trading book as it is fairly inexpensive and can aid greatly in deciding whether forex trading is right for you. Keep in mind that you will want to have some type of interactive training before you begin trading with real cash, which means attending either forex classes or seminars, or more conveniently choosing one of the various online forex courses.

Deciding on which forex course to take will be an investment that will pay off big and well worth it in the end. Not all training courses are the same, so shop around before making a decision. There are many free online trading courses as well, so look carefully.

The world of foreign currency trading is truly exciting, profitable and fun, especially so, now that is open to beginners in forex trading who only have small capital. However, do not be fooled by the excitement - you must prepare yourself and get your training first. After all, practice makes perfect.

Learn well - have fun!

The-ForexEdge offers a broad range of tools for Beginners Forex Trading, including how to open a risk free Online Forex Trading practice account.

The White House is shown lit at night following the return of President Barack Obama from a celebration of the former President Abraham Lincoln's birth bicentenary at Ford's Theater Grand reopening in Washington, February 11, 2009. (Jason Reed/Reuters)Reuters - With Wall Street veering close to the November bear market lows, the market is likely to be awash with caution next week as investors look for clarity on how the government plans to shore up banks, housing and the economy.

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Thursday, February 12, 2009

Where Can I Find Good Penny Stocks to Invest In?

I had always been impressed with the tales I had heard about amateur investors somehow being able to pick the right stocks to invest in and grow their portfolios. In fact I was sick of hearing about friends picking killer stocks that rose 20% or 30% overnight making them huge amounts of profit.

This was a real problem for me until I discovered that their success was not really about their due diligence, any special research techniques or even the newspapers they were reading. What I did to turn my investing around was to use an automated stock picking software service to do the hard work for me.

I want to reveal this invaluable service to you right now. If you are looking to make some healthy returns from stocks then this could be the most informative article you read because the information I am about to disclose has the power to dramatically improve you wealth.

I used to spend hours and hours each week pouring over the financial press and the Internet researching potential stocks to invest in. I was using a combination of fundamental analysis (looking at the companys profits and balance sheet) and technical analysis (looking at price movement trends) and felt I was fairly competent with both despite my lack of results. Occasionally I would pick a winning stock however I would also pick bad ones and I never managed to significantly grow my portfolio of stocks.

What I found really difficult was when I did buy in to a good stock I did not know when to sell. I often found myself sitting on a 10% gain only to see it eroded away over the next few weeks. In a similar vain I was unsure when to buy in to a stock I thought offered value. All too often I would 'miss the boat' and spend my time working out how much money I would have made had I bought the stock.

I was introduced to the service by a close friend that worked in one of the large investment banks. He told me that for some years now the big banks have been using computers to select their trades. The benefit being the huge computational power they offer. He showed me the service and more importantly the profit and loss on his trading account. My trading has gone from strength to strength since that moment.

Now I use a automated stock picking service all of the hard work is done for me. I receive a weekly newsletter with my picks in. I then do some high level research to get some more background on the companies then simply invest when the suggested buy price is reached and sell at the proposed sell price. By doing this and spending just 2 hours per week on my trading I make roughly $5,000 per month more than I did when I was spending 15 hours per week researching the market by myself.

You too can use this stock picking system to your advantage. The service that I use to direct my stock investments can be found at this website: http://www.frogfinance.com/investing/investing_tools.php

This service has helped earn me thousands of dollars and has helped to change my life by helping me plan for my retirement as well as indulging in some luxuries now!

Traders write orders on the floor February 10, 2009 just before the closing bell of the New York Stock Exchange. The White House on Wednesday defended the Treasury's plan to inject up to two trillion dollars into the economy to rescue the crippled US financial system, after a sharply negative reaction on stock markets.(AFP/File/Stan Honda)AFP - The White House on Wednesday defended the Treasury's plan to inject up to two trillion dollars into the economy to rescue the crippled US financial system, after a sharply negative reaction on stock markets.

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Monday, February 9, 2009

Forex Trading - Predicting Forex Prices in Advance For Greater Profits

The aim of many new forex traders is to predict market movement in advance and get better market timing and therefore increased profits. Let's look at how to make money predicting forex prices.

You can win at forex trading but keep one point in mind - you wont do it predicting forex prices because this is simply another word for hoping and guessing and you don't get rewarded for that and your predictions will end up as accurate as your horoscope.

You will here many people say you can predict and they have a scientific theory well if they did they wouldn't sell it to you so forget all the far out theories like Elliot wave and Fibonacci and see forex markets for what they are an odds based game where you need to trade the truth.

I was a newsletter once called trade the truth and the name stuck with me and simply means, trade the reality and what you see on a froex chart, not what you think it might be.

By trading the reality, you will get the odds on your side and a simple way to do this is with a breakout system.

With a forex trading system based on breakouts, you simply execute your trading signals on breaks of chart market highs or lows and its fact most major trends start from these.

Don't try to buy low or sell high or look for perfect market timing you will be predicting again and will lose.

Anyone can use breakouts and make money. The methodology is easy to understand, easy to learn and if you base your forex trading strategy on it you will be trading the truth and will have the odds on your side.

Sure you wont buy market tops and bottoms but you can't do this anyway so don't try!

The real aim of forex trading is to make money, so learn to trade the breakouts and you can be making big profits in 30 minutes, or less per day and enjoying forex trading success.

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General Motors product chief and Vice Chairman Bob Lutz in a file photo. (Gregory Shamus/Reuters)Reuters - General Motors Corp's product chief and Vice Chairman Bob Lutz will retire at the end of the year, bringing to a close a legendary automotive career that spanned 46 years and included top jobs at all three Detroit automakers.

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Friday, February 6, 2009

Forex Day Trading - A 100% Way to Lose Your Money Here's Why

Forex day trading is popular but it's one of the best ways to lose your money. Try and find a day trader with a track record of real gains (not a simulation in hindsight) and you won't find one. Why? Because:

It doesn't work.

You will see numerous e-books and forex trading systems advertised all with great copy and a track record - but check the track record disclaimer and you will see that there all done in hindsight.

Here is a standard CFTC disclaimer:

"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 show".

Well could you make a profit knowing the closing prices?

Of course you could and so could a child.

The reality though is we don't have the benefit of trading backwards when we trade forex, we have to trade not knowing the prices and that's a little more difficult.

So why doesn't forex day trading work?

Quite simply - all short term volatility is random.

Because of this, support and resistance levels are meaningless and you can never get the odds on your side.

If you think about this its common sense - you have millions of traders all trading with different viewpoints and methods and to say that you can predict what they will do in a few hours, or a day session is ridiculous.

So why are forex day trading systems so popular?

There mostly promoted by marketing companies NOT traders - it makes a good story but so to does Harry Potter but that's all it is a story.

Forex day trading appeals to lazy or naive traders, who think forex trading is simply a walk in the park - no effort required, spend a few hundred bucks and get rich!

Well forex trading is not that easy and you wouldn't expect it to be with the huge rewards that can be made.

If you want to trade successfully then you need to get the odds on your side and that means trading longer term meaningful data - not random data where you may as well flip a coin.

Trading success is based upon a logical method that takes into account the odds.

To be successful in life (not just forex trading) accept the fact that no one else will make you rich. Sure you can take advice - but never follow anyone blindly, you need to understand what you are doing and make sure you are trading the odds!

If you don't, you won't have confidence. If you don't have that, you will never make money, as you won't have the discipline to follow your method through inevitable losing periods, to achieve long term currency trading success.

So the next time you see a day trading system with a simulated track record - think twice before investing in it.

If it has a real time track record over a few years of profits by all means consider it - but if you find one let me know, I have been looking for 25 years and not found one!

If you want trade successfully forget forex day trading, trade the odds and that means using longer term data.

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Jeffrey R. Immelt, chairman and chief executive of General Electric leads a discussion with business leaders at an Ecomagination news conference at Universal Studios in Los Angeles, California May 24, 2007. (Fred Prouser/Reuters)Reuters - General Electric Co will evaluate its planned second-half dividend in light of the slumping global economy, the U.S. conglomerate said on Friday, leaving open the possibility of a cut in the payout.

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Thursday, February 5, 2009

Forex Trading For Beginners - 10 Mistakes Which Will Slash Your Profits

Forex trading for beginners is straightforward if you have the right mindset and get the right forex education however, you must avoid the mistakes enclosed which will slash or even worse wipe out your equity...

Here are the 10 most common mistakes in no particular order of importance - there all important.

1. Don't Day Trade or Scalp

All short term volatility is random, you can't measure what millions of traders will do in a few hours so don't try.

2. Avoid Most Forex Robots

I see these forex trading systems all the time and they all claim great profits but the track records are all simulated in hindsight and have never been traded.

If you trade one of these you can kiss goodbye to your equity.

3. Don't Predict

If you predict you are simply hoping and guessing and that won't get you far in currency trading or life - trade confirmation and the reality of change and don't guess.

4. Markets do Not Move to Science

Many people claim they do and follow the methods of Gann, Elliot and Fibonacci but they don't work.

If markets moved to a scientific theory, we would all know the price in advance and there would be no market - common sense yet, many traders fall for this ridiculous idea, don't join them.

5. The harder you Work the More You Make

In a normal job yes, in forex markets no.

You get paid for being right with your forex trading signal and that can take you ten minutes or ten hours - you earn your rewards for results.

Work smart not hard.

6. Following expert Opinion and News Stories

The markets are a discounting mechanism and news is discounted instantly, it also reflects the greed and fear of the crowd who lose. Will Rogers once said:

"I only believe what I read in the papers"

He was joking of course - but it's surprising how many people follow the news and try and trade it - don't do it!

If you do, you will end up losing.

Markets move on trader's view of news and their emotions. The facts are unimportant its how they are perceived that determines the course of events.

7. Using a complicated method

10 indicators are better than 2 - dead wrong.

A complicated forex trading strategy , will not as a general rule beat a simple one as it has to many elements to break.

Simple systems have and always work best, as they are more robust.

8. Making Money in Demo Account Means You Will Make Money for Real

No, a demo account helps you learn how to trade not to make money and you need to understand this:

There is no pressure on you and therefore it's not a real trading experience.

9. Not Being Patient

Many traders think the more they trade the more they will make - wrong. You get paid as we said earlier on for being right and that means waiting for the high odds trades.

I know traders who trade around 10 times a year and make 200% or more.

If you want fun and excitement do something else. If you want to make money, being patient is a key element to learn in your forex education.

10. Snatching Profits to Soon

When you first start trading, you will be tempted to snatch profits - but look at a forex chart - the big trends last for months weeks and years.

if you have the courage to hold them and take short term equity swings against you, you will be well rewarded when the trade is finally closed with a thumping profit.

Traders have more problems holding profits than they do cutting losses, don't make this mistake.

Now here is the major problem that causes most losers to lose - I will ask you the question:

What's your trading edge defined? i.e. why will you win, when the vast majority 95% of traders lose?

What's Your Edge?

Don't know what your trading edge is?

You don't have one and will lose and it's back to your forex education until you do.

We hope you found our forex trading for beginners of use and that you will avoid them in your forex trading strategy and enjoy currency trading success.

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Reuters - A team from the U.S. Securities and Exchange Commission (SEC) is in India to meet the new board of fraud-hit outsourcer Satyam Computer Services on Thursday, the Times of India paper said, citing sources.

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Monday, February 2, 2009

Everything You Need To Know About Online Stock Trading

Do you know that there are 800,000 millionaires in North America and 98%of them increase or create their wealth by investing in the Stock Market? And the most intriguing part of the information is that 80% of these millionaires started investing with almost nothing.

Whatever profession you are in, whether you are in service, are a housewife bringing up kids, doing any business, you must know that billions of dollars are being made daily through online stock trading in the markets of the USA and the world. This gives you a chance to put some of this money in your pocket.

You too can join this exclusive league of millionaires only if you have (some) money to invest, earning mindset and the ability to learn and adopt the money making methods of online stock trading and investment decisions to increase your personal wealth.

Choosing the right options in online trading can find you the treasures beyond your wildest dreams and help you live the freest life ever.

The first and the most important step in making money through online stock trading is to educate yourself and acquire an in-depth knowledge of the subject that will not take you weeks to get through. Self education means investing in your personal resources. You are creating an independent and life-long resource for successful online stock trading.

Education will familiarize you with the basics of stock trading and empower you with some smart trading tricks and tips which will enable you to outsmart your competitors.

Education in stock trading enables you to understand the rules and laws of investing, the psychological dilemmas that often afflict the traders. You get a general knowledge of economics and how it influences the stock market. Education in stock trading will help you to remain out of the 80% of investors who lose their investment right from the beginning of the stock trading. If you want to be one of the chosen few comprising of 20% successful stock traders, you must educate yourself so that you understand the value of discipline, judgment and the art of online trading.

Learn the Basics of Stock Trading

You may have come across two terms, investing in stocks and trading in stocks. The two terms may appear same, but are not. You put your money both in stock investing and stock trading. Both ways are investments. You must, however, understand that investing money in stocks denotes long term investment, but investing your money in trading denotes short term investment. You invest the money in buying stock when the market opens and get it back with profit or loss by selling off your shares before the market closes. This is called stock trading.

A trader will make fast movements in and out of stocks during the course of a day, whereas an investor is in for a long haul. He is more interested in consistent growth and will wait patiently over a long term. As an intelligent investor in stocks, you must distinguish between the two goals. You should keep separate the stocks that you trade and those you invest in. While you are trading, you are interested only in making fast bucks. You are not interested in the stock itself. That means when the value of the stock is rising or falling, you sell it off, of course, at the right moment and reinvest your profits in next trade. In case of long term investment, you almost love your stock and understand its long term potential. You understand that the value of the stock may rise and fall several times over the term you hold it in your portfolio and you remain patient.

Internet has revolutionized every aspect of our life and business. It has facilitated trading in stocks online. A click of the mouse can fill up your coffers and even empty them. So you must learn the tools for online trading provided by your brokerage firm on its website. If you learn to use the online trading tools intelligently, making money online becomes a child's play.

The next logical step is to choose your stock broker. Low brokerage commission is an important factor while settling for your broker especially when you are a day trader, a heavy trader or even a casual investor. But low commissions should not be the only guiding principle in selecting your broker. There may be several other issues like the speed of order execution, ability to contact the real broker when the need arises or customer service that play an important role in selecting a stock broker.

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Graphic shows change in the S&P 500 index for January and the year since 2000; 2 c x 2 7/8 in; 96.3 mm x 73.025 mmAP - Wall Street is bracing for yet more reminders this week that the economy is in rotten shape. Companies from networking-gear maker Cisco Systems Inc. to media giant Time Warner Inc. are set to report quarterly results, while a steady stream of economic readings is also due. The most recent numbers from companies and the government haven't been roundly awful, but most have. That is stirring fears the economy's slide isn't slowing.

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Wednesday, January 28, 2009

5 Tips on How to Become Wealthy Trading Forex

Let 's look at 5 things to avoid if you want to make consistent money with Forex.

Let's start with 5 common errors you should avoid.

1. Stay away from day trading the market. With all the volatility and numerous outside influences, it is a losing proposition to get involved in day trading.

2. Avoid guess work. Trying to predict what is going to happen on the Forex market is difficult at best. The trader that falls into this trap will eventually come back to bite you because trading currency simply cannot be guessed.

3. Don't trade with money you cannot afford to lose. Trading with money that should be allocated on your personal budget elsewhere is plain unsmart. Traders do dumb things when they panic and trading with money you really don't have causes panic.

4. Do not try to buy a currency low and sell it high. This may work in the equity market but with currency trading it is not the way to go. It translates into having to predict again where highs or lows will form.

The truth is many major market moves begin from new market highs not lows. The best way to do it is buying the breaks as the chances are more in your corner and you often see large trends come up if, the breakout is from a genuine resistance level.

5. Do not trade without help. You should start off trading Forex with a practice account.

Most importantly, get a really good, reliable software program that is tested and has proven results.

Get an Objective Review of the Most Popular Forex Trading Software Programs. Forex Trading System Review is the place to visit.

See What Forex Trading Software REALLY Works! forex-trading-system-review.com is the place to visit.

The Federal Reserve on Wednesday said it is prepared to buy long-term government debt if that would help improve conditions in financial markets and signaled some concern that deflation risks were rising. (Graphics/Reuters)Reuters - The Federal Reserve on Wednesday inched closer to buying U.S. government bonds in a new front in its fight against the credit crisis and signaled unease over the risk of deflation with the economy weakening.

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Friday, January 23, 2009

Day Trading - What's it Really All About? Choices That Lead to Stellar Success and Unlimited Wealth

There's an old Buddhist saying, As within, So without.

You may think its all about the charts, the fundamentals, your system and the unprecedented world economy, but haven't there been times when you sensed there was something more to it?

Me too. Being tuned in to all that is what separates the super traders from the guys who are second mortgaging their home hoping to make a come back.

Aside from the obvious, not putting too great a percentage of your overall nugget in any one trade, how does one keep the emotional element out of decision-making? Is this emotional element the same thing as your gut feeling? It's easy to confuse the two and it's well worth learning to discern the difference.

Keeping notes is critical, but not just about the numbers. Taking time to notice your own patterns is invaluable in the long run if there is to be a long run.

Over-confidence can be just as deadly as under-confidence. And playing when you really don't have the juice to, but feel like you need to can also have its consequences,

There really aren't a lot of women out there trading, not relatively, so for a long time I thought it was only because I had focused on my inner work for so long that I was naturally using my trades as way of flushing out my deeper issues---resistance to having more than enough or the compulsion to keep trading when I had already done well enough for the time being.

But then I attended one of those weekend workshops with the best of the best. And on the very first day my trading coach said, the market is mirror---a stark mirror.

That, to me, was worth the price of admission!

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A view of the Belgian headquarters of U.S. pharmaceutical giant Pfizer, in Brussels January 23, 2007. (Francois Lenoir/Reuters)Reuters - Pfizer Inc , the world's largest drugmaker, is in talks to buy Wyeth in a deal possibly valued at more than $60 billion, sources familiar with the situation said on Friday.

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Friday, January 16, 2009

Daytrading Courses

Daytrading courses don't need to be taken in a traditional brick-and-mortar classroom setting with a professor and students. You can enroll in an independent home-study course. Or you can even take courses online via the Internet at your own pace. The important thing is that you get yourself properly educated in daytrading before you venture out and start risking your capital.

Daytrading is fraught with inherent risk due to the volatile nature of the game. You literally have to buy and sell multiple stocks within as short of a time span as possible in order to realize instant, short-term profits. Professional daytraders who do this for a full time living have a limited amount of seed capital that must be put in and pulled out quickly, whether a stock performs well or whether it tanks. The objective of the game is typically to pay the bills. Your grocery, your mortgage, and your car payments are all riding on your daytrading savvy.

Of course the same risk exists even if you are not dependent on daytrading as your sole source of income. But the point of the matter is that daytrading courses are a vital prerequisite for anyone who is serious about making quick profits by investing in the market.

It would be very unwise to shortchange yourself by believing that you can do fine on your own and that you would "learn on the fly" without a proper education. Even seasoned investors are not above the need for some financial education. After all, even as you become more experienced, you still want to learn new strategies and tips for investing, realizing a greater return on investment, and learning how you can improve your profit margins.

Of course the most common excuse that people have is that they are unwilling to spend the money on daytrading courses. Yet we are willing to spend tens of thousands if not over one hundred thousand dollars on a college education, only to wind up in a dead-end career, which will inevitably lead you to want to learn how to become a daytrader anyway! So might as well take the shortcut and get your education in daytrading now! The education will pay for itself many times over, due to the limitless income potential. How many careers other than daytrading could you argue, that offer you a limitless income potential in exchange for your taking a few training courses?

Do you have what it takes to become a professional day trader

In this Dec. 18, 2008 file photo, Mary Schapiro listens as President-elect Barack Obama introduces her as his designate for Securities and Exchange Commission chairwoman during a news conference in Chicago. President-elect Barack Obama's choice to head the Securities and Exchange Commission goes before Congress on Thursday Jan. 15, 2009 at a time when the embattled agency is being called on to help restore investor confidence shredded by the worst financial crisis in over 70 years. (AP Photo/Gerald Herbert, File)AP - President elect-Barack Obama's choice to head the Securities and Exchange Commission promised Thursday to revitalize the embattled agency's enforcement efforts and bring other changes to bolster investor protection.

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Sunday, January 11, 2009

Electronic Currency Trading - an Opportunity For Wealth For All

Electronic currency trading has bought the vast potential of this market to anyone with an internet connection and a computer and some small seed capital. Here we will look at how anyone can learn to trade currencies and enjoy success if they follow some basic guidelines.

The first point to make is that over 95% of traders who try electronic currency trading lose their money and the reason is they either get the wrong education or do not have the mindset for success. So what do you have to do to be successful?

First let's take a look at the advantages trading currency online gives you and here are just a few.

- Anyone can learn currency trading and succeed - no special education is required

- You only need an internet connection and some seed capital

- You can trade for big profit opportunities every day

- There is never a recession, as one currency rises another must fall and vice versa

- You can trade in around 30 minutes a day or less

- You can leverage your investment by 200:1 or more!

As you can see there are many advantages of currency trading but you need to know how to use them and use them wisely especially leverage. Leverage is the key to big gains but it also wipes out more trading accounts than any other factor.

Leverage is simply the ability to invest more than you have in your trading account. If you have $500.00 in your account and leverage by 200:1, you have the potential to trade $100,000!

Be Careful With Leverage

The reason most traders lose is they don't understand how to use leverage. While 200:1 is tempting to use, on small accounts it leads to a swift wipe out of equity. If you have a small account 20:1 is plenty to use.

Be Patient

The other point to keep in mind with electronic currency trading is that while there are opportunities to trade each day, you only want to trade highs odds trades and this means being patient and trading infrequently.

Another reason novice traders lose is they simply trade too much and trade low odds scenarios.

If you want to make money at electronic currency trading, trade high odds set ups and they come around only every few weeks but remember you don't get rewarded for trading often, you get rewarded for being right.

I know traders who trade less than 20 times a year yet make triple digit gains and you can to!

Discipline is the Key

The key to currency trading profits is to have a robust simple currency trading system you have confidence in and can apply with discipline.

You must be able to apply your system with discipline through losing periods, until you hit a home run (which you will if your system is based on sound logic), in currency trading you have to lose to win and not lose discipline.

The Road to Currency Trading Success

Currency trading looks easy but of course appearances can be deceptive and while anyone can learn to trade currencies, you need to get the right forex education and mindset and apply your trading system with confidence and discipline.

Electronic currency trading, if you prepare yourself correctly can be the gateway to a lucrative second or even a life changing income. Its exciting, its fun and if you put in a bit of effort, you can enjoy currency trading success.

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Reuters - An estimated 1.3 million car workers and retirees could see their pensions cut if one or more of the U.S. automakers collapse, the head of the government agency that protects Americans' pensions warned on Friday.

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Friday, January 9, 2009

Lifestyle Of Traders

Trading can be a very active lifestyle. Whereas day traders spend hours every day in front of a computer monitor scalping small movements in price, the active trader does have a "rich" lifestyle both in money and time.

Lifestyle Depends Upon Trading Style

Professional traders usually make their income from scalping short tick charts, day trading from open to close, or swing trading over a matter of days or weeks. The trading style differs with the lifestyle. Scalpers can profit heavily in just a few hours to have the rest of the day to relax and read up on the markets. Day traders benefit from taking positions when they want through the course of the week, often taking full days off at a time. A swing trader has the luxury of placing few trades every few weeks, allowing for plenty of down time.

Improving Your Trading Skills During Your Down Time

Many traders use their down time to participate in trading seminars to meet new people in the financial world. Trading for the big firms is all about whom you know, and indeed, getting involved in the trading community is the only way to work your way to the top of the trading world. For the smaller investor, time may be better spent on an online home study course to further their trading potential.

Skill-building activities, such as looking at old charts, reviewing failed trades, or sharpening your trend line drawing skills, are a great way to spend the surplus of time trading provides. Developing a trading plan planner is another good way to spend the extra time, as a complete trading plan will give you the confidence to trade, even when the market goes against you.

Trading isn't just about investing in the markets, but also in your own ability to trade. Locking in consistent profits means more time off and more time to review your trading plan. Bettering yourself at your own job means less time studying and more time off, while bringing in consistent profits.

Earning a Relaxed Lifestyle

To the person on the outside, the financial district appears to be "stressed out" people huddled around computer monitors for the bulk of the day. For many people on the inside, trading provides a profitable career and a relaxed atmosphere. For the home trader, a job as a day trader provides a luxurious income and the chance to be your own boss. The ability to take off work whenever you want easily trumps the consistency of a 9-5.

About the Author:
Leroy Rushing is an active, professional day trader trading coach and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading.

Employers slashed payrolls by 524,000 in December, driving the unemployment rate to its highest level in almost 16 years, a government report showed on Friday, suggesting that the year-long recession was deepening. (Graphic/Reuters)Reuters - The unemployment rate surged to the highest in nearly 16 years last month as a deepening year-long recession forced companies to axe more than half a million jobs, government data showed on Friday.

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Thursday, January 8, 2009

Best Foreign Exchange Trading Tips And Strategies

I'm here to help you find the best foreign exchange trading tips and strategies that you can use on your daily trades to help you be a better trader. This is an exciting market, and for most people, they are new and want to learn as much as they can. I'm here to share a little knowledge with you.

  • The Point of a Demo: A demo platform (or account) is a way to practice trading without actually having to use your money. It's really just a simulator of the process. Demo accounts won't make you an expert. It isn't designed that way. You will often hear experts claim that demos are a waste of time and that is precisely the reason why. They have a great role for new people though. The first thing is that you get to learn how to use your trading platform. You don't have to worry about making a mistake or pushing the wrong button. If you don't know what something is, push and find out. The second thing is that you can work to develop a routine for yourself. A way to start acting on a regular basis with your platform. Lastly, you can try out some strategies to see how good you are to start with.
  • You Trade In Pairs: All this means is that a single currency in itself doesn't really have a value. It's value is always with respect to another currency. You have to be aware that when you're looking for a good trade, you may not see one. But if you change what currency you're comparing it against, it could be an excellent buy for you. The Euro compared to the Canadian dollar could be considered a bad trade, but the Euro compared to the USD could be a great buy. Always remember you're viewing things in pairs.
  • Software: You should get your hands on software like Forex Killer. All the big banks and corporations have software working for them, so you should take advantage of it too. They allow you to automate your trading process. They also have ways of find trends that could be very profitable for you.

I'm currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.

AP - Share prices on the London Stock Exchange closed lower Thursday.

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Monday, January 5, 2009

7 Things You Can Do To Avoid Huge Risks in Forex

Forex is an extremely difficult market. It has a lot of risks but you can avoid them.

Here are several things you can do in order to avoid huge risks in Forex:

1 - Use a solid and reliable broker. There are a lot of scams with Forex brokers. You need to be extremely careful when you're choosing one. Don't forget to see if they're regulated, not based in 3rd world countries and if they don't trade against you. If you choose a wrong broker, this can means that you can lose all your money, either trading or when sending or withdrawing your funds.

2 - Use a stop loss. There are a lot of strategies and systems out there that don't even use a stop loss. Using a stop loss is essential in Forex. You don't have to insert your stop loss order; it may just be a mental stop loss. This will keep you from having hard losses but also will avoid the fear and greed feelings.

3 - Don't day trade. As you probably know, day trading requires full time attention. This can be very hard in a market like Forex that is open 24 hours a day. Also, waiting for the right trade(s) can be extremely stressful. Remember that even experienced traders don't always make consistent profits day trading Forex. It's better to trade in large time frames.

4 - Use good risk management rules. No matter if you day trading, swing trading or position trading, you need to follow strict money management rules in order to be successful in Forex. My advice is to put no more than 5% of your account in a single trade. This way, you can lose several trades but you'll still have money in your account to get it back.

5 - Use a good risk/reward. Using a good risk/reward will help you make money but also achieve consistency when trading Forex. You should trade with at least 2:1 risk/reward. This means that for every pip you're risking, you're planning to win at least 2 pips. With this risk-reward, you can even lose 50% of the times and still got money in your account. This will help you keep on the game.

6 - Don't trade during news. This is specially targeted for beginners. There are some news releases that make the volatility increase in a matter of minutes, even seconds. If you're on the wrong side of the trade, or if you enter at that moment in the wrong side, this can be catastrophic. This can mean losing part or your entire account.

7 - Keep learning and practicing. You should always keep learning about the Forex market as well as practicing. This will help you become a better trader since you'll learn how to minimize your risks, have consistency and even develop your own strategies.

This article purpose was to show you, in advance, some of the huge risks that you can face when you're trading Forex but also tell you what you can do to minimize or even avoid them.

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.

A logo on the IndyMac Bank corporate headquarters building is seen in Pasadena, California July 8, 2008. (Danny Moloshok/Reuters)Reuters - The assets of failed U.S. mortgage lender IndyMac are being bought by a group of private equity and hedge fund firms, including Dune Capital Management and J.C. Flowers & Co, which are putting up $1.3 billion in cash.

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