A forex trading plan that keeps the market from stealing back your pips

I was taught by a highly adept veteran trader who used to work for the Bank of America that having a trading plan when trading your own forex account is of vital importance.
Without the neccessary intention and clarity, you are going to make it very difficult for yourself to reach any sort of desirable outcome in your trading day.
This is because you don’t know where you’re going, you’ve know idea where you’re supposed to be headed and as a result the market will gracefully take pips without any emotion or hesitation, leaving you with all the emotion.
If I was to start trading a new mini-account tomorrow with any broker I would immediately formulate a workable trading plan, looking ahead at least 2-3 years in to the future with regard to where I want to be with my forex trading business.
Before having a trading plan, I was a small fish in a lake of Great White Sharks so to speak. I had no intention, no edge, no clue as to why the market was doing what it “shouldn’t” have been doing. The only choice was to learn from every little mistake and every little decision and each good choice as well.
Firstly I would want to trade using a demo account with my broker for at least 1-2 trading weeks, just to get very clear and confident with the execution of the platform. I would also use this time to build a relationship with the dealing desk so that they are ready to take care of my business in future.
I then like to break up the trading plan in to 3 monthly targets and sub-quarterly monthly targets in terms of how many pips per day I am committed to take out of the market.
Next I start to think about how much risk I am prepared to take in order to be making the most of my ability and capital whilst giving myself room to improve and maintain a stability and consistency.
I will then be meticulous in writing down actual projected changes in account balance month by month, week by week and with space for day by day actual results.
For example, you want to open an account with $2000 and trade minis (fractions of lots) at first.
In week 1-2 I am familiarising myself with the platform. I am also aiming to take 12 pips each day from the market for each trading day as averaged by the end of each weeks P/L.
So, the real week 1 begins the following week.
Week 1-4: TARGET 60 pips
Lots traded: 0.3, Leverage x 100
Week 1 2 3 4
Day 1 /12
Day 2 /12
Day 3 /12
Day 4 /12
Day 5 /12
T B $2130
(TB = Target balance)
You can imagine filling out the rest of the table, better yet, start creating your own trading plan, including the weekly balance targets. These are just figures, they are not to be used to judge yourself. You are just keeping track of where you need to be to be on-target of your trading plan. They do not affect your strategy. You just have the goal to be in alignment with or ahead of your trading plan.
Moving forwards from here, I will then create a column for the monthly targets 1-3. The aim would be to trade 0.5 lots after month 1 provided everything is going smoothly on the practise month.
Month 1: 60 (pips per week) x 4 (weeks) x 3 (dollars per pip) = $520 profit target by end of month
Target: $2520 by end of month 1
Month 2-3: 60 (pips per week) x 4 x 5 ($ per pip) x 2 (months)
= $2400 profit target in months 2 and 3
Target: $4720 (by end of month 3)
After 3 months of trading and being on track with the plan, it’s time to trade 1 lot for 3 months.
$10 (per pip) x 20 (days per month) x 3 (months) x 12 (pips) = $600 x 12 = $7200
TARGET: $13,920 (by end of month 6).
Ok, so to be on track with your plan you need to average 12 pips per day only and by the end of 6 months (starting with $2000 mini account) you have turned $11,920 profit.
This is where the fun starts to begin.
Decide that by month 6 you will be trading 2 lots and you are talking $20 per pip (for 6 months).
6 (months) x 2 (lots) x $10 (per pip) x 12 (pips per day) x 20 (days per month)
= $28,800
Target end of year 1 = $42,720
Now that you have mastered taking out your 12 pips each day from the market and showed that you can trade for a year you can trade more lots. For example 5 lots for 1 year.
5 lots x $10 x 12 pips/day x 20 (days/month) x 12 (months)
Years target profit: $144,000
End of 2 years target: $186,820
(from a $2000 starting balance)
This is quite a healthy income from 2 years of keeping to your plan. It’s more than a lot of doctors, and imagine the doors that will be open by this time. This is not a get rich quick plan, it is a trading plan where you only need to take out 12 pips from the market each day on average. 2 moves of 30 pips means you’ve achieved your weekly target.
I think its important to keep this long term perspective in perspective. It’s achievable and simple, but not easy. It will require patience, discipline and a strategy to find entry in to the market that virtually guarantee your 12 pips or 2 x trades that take 6 pips in a day.
This last part is always down to the individual forex trader. Others can only lead the way and point the direction. The traders own responsibility and willingness to put forth the neccessary level of independence and strong sense of self belief will carry that person through.

The Fast Track Forex Strategies Work…

Greetings forex traders,
Today it is 7.56a.m. GMT and I have completed my days work in just around 25 minutes.
I am a big believer that if you are going to do a forex training for people, and I’m pretty sure you would agree, that you should “practise what you preach.”
I use a “foundations of forex” trading strategy that incorporates in to it preparation and planning to trade, forex psychology (managing your emotions, kicking out your ego and becoming a “woman of steel”).
I then train you in my “Forex Evolution” strategies. These proprietary Fast Track Forex techniques will help you to hone your skills in trading forex and squeeze more juice out of yourself and more pips out of the market.
People say there’s a whole load of info on the web about making money in forex, why do you need a program. Let me tell you that’s garbage from the outset.
Why? Because there’s so much “online currency trading - what the hek is that anyway? Online currency trading - precisely those three words were invented by a broker I’m sure of that - anyway, without further digression - all this info is going to send you insane…WORSE its going to cost you bad.
I tell you and my clients will tell you I cut straight through the junk and take you straight to what counts, so that you’ve got the cream of the crop of the “free stuff” and how to use killer forex trading strategies that literally are going to get me in to trouble with bank managers because they are so effective.
This is NOT the kind of stuff you learn ordinarily in $5000 seminars from people who really shouldn’t be in business with what they are peddling at some times.
It is the real deal of forex. I don’t like to say the above paragraph, but there comes a time where you’ve got to start protecting your clients and your potential people. I mention people I verifiably approve of on this blog. You can see a couple of them in post http://www.sambeatson.com/?p=55
I placed my trade at about 6.55a.m. shorting the cable using my “One Chart Wonder - Crown & Glory” forex trading strategy.
You can see a video of this strategy in the previous post below this one and my trading it live there.
I also have made a video of my trade today and its exact rules, entry and exit for the trade.
I explain everything in the video.
My entry price (after deduction for forex broker spread) was 2.0212. The current price is 2.0164.
I took an automatic profit at 20 points.
With a 10 point per day forex trading plan (see post http://www.sambeatson.com/?p= ) that means I am 100% on track for the day PLUS another 100% ahead of my plan for the day = 200%.
How long did it take for a person to be able to get 200% ahead of the days plan trading forex - or as you might call it - online currency trading - using the Fast Track forex training package…
If you are a online currency trading professional, I take my hat off to you. However, if you’re not making money in this market, get a good mentor and start taking this seriously. I mention a couple on this blog and I have my own forex training too. And it is a bargain at the current price for sure.Believe in yourself again, fully. I’m 100% convinced that in your thoughts you are doubting if you are not making money in this market. And we deal with that too in my program. Let’s eliminate temptation and get serious about making money.If you take the training I offer via my members site - http://www.fasttrackforex.com/members you will also receive access to the FastTrackForex.com/members Crown & Glory forex trading strategy which I mention in this post and the last. It’s worth $5000 on its own.Here are a couple of testimonials from customers. You can read them here: http://www.fasttrackforex.com/special/testimonials.html
The results with “One Chart Wonder - Crown & Glory” for me are not a freak occurence. I trade on a “full-time” basis but only part-time hours. There are opportunities to trade this system often. It requires some training and knowledge and even some self-directed study of the markets. That’s why I call it UNIVERSITY.fasttrackforex.com. Only I believe I’ve made it simple enough that my grandmother could understand it.
Best regards,
Sam Beatson

MetaTrader 4 Client Terminal

MetaTrader 4 Client Terminal has been created to provide trade operations and technical analysis in real time mode, when working at Forex, CFD, Futures financial markets. A wide range of orders allows flexible management of trading activities.As well as many technical indicators and line studies, there is built-in language for trade strategies programming MetaQuotes Language 4. Using this language, you can create Expert Advisors, Custom Indicators and Scripts. Expert Advisors can analyze the situation on the market, make decisions, put pending orders, and open positions in on-line mode without trader's participation. Custom Indicators, just like technical ones, can analyze the situation on the market and generate various signals. As for Scripts, they are designed for single execution ofsome actions.Client terminal MetaTrader 4 key features:
working with securities of Forex, Futures and CFD markets;
various execution technologies: Instant Execution, Request Execution, Market Execution;
confidentiality of all trading operations;
unlimited charts quantity;support of various timeframes (from minutes up to months);
large number of technical indicators and line studies;
Experts, Custom Indicators and Scripts;
MultiLanguage program interface;
realtime data export via DDE protocol;signals of system and trading actions;
getting on-line news from financial markets;
internal e-mail system;
printing charts and completed trading transactions statemets.
AdvantagesMetaTrader 4 is the best solution for broker companies, banks, financial companies, and dealing centers. The main advantages of the system are:Coverage of financial marketsThe trading platform MetaTrader 4 covers all brokerage and trading activities at Forex, Futures and CFD markets.
Multicurrency basis
The system is designed on a multicurrency basis. It means that any currency can serve as a general currency used in the operation of the whole complex in any country and with any national currency.
Economy and productivity
Implemented data transfer and processing protocols are notable for their economy. It makes it possible to support several thousands of traders through a single server with the following configuration: Pentium 4 2 GHz, 512 DDR RAM, 80 GB HDD. New protocols reduce both the demands on datalink and their operational cost.
Reliability
In the case of damage to the historical data, the complex has backup and restoration systems. Also, the implemented synchronization allows to restore damaged historical databases within several minutes with the help of another MetaTrader 4 server.
Safety
To provide safety, all the information exchanged between parts of the complex is cripted by 128-bit keys. Such solution guarantees safekeeping of information transferred and leaves no chance for a third person to use it. A built-in DDoS-attacks guard system raises the stability of operation of the server and the system as a whole.A new scheme of system working operation was created especially for DDoS-attacks resistance. With its help, you can hide the real IP-address of the server behind a number of access points (Data Centers). Data Centers also have a built-in DoS-attacks protection system; they can recognize and block such attacks. During distributed attacks at the system, only Data Centers are attacked; MetaTrader 4 Server continues its operation in regular mode. Thus, Data Centers increase the system's stability to DoS and DDoS attacks.The implemented mechanisms of rights sharing make it possible to organize the security system with more effectiveness and to reduce the probability of ill-intentioned actions of company staff.
Multilingual support
MetaTrader 4 supports different languages, and a MultiLanguage Pack program is included into distributive packages. It provides translation of all program interfaces into any language. With the help of MultiLanguage Pack you can easily create any language and integrate it into the program. This feature of the system will bring MetaTrader 4 nearer to end-users in any country of the world.
Application Program Interfaces
MetaTrader 4 Server API makes it possible to customize the work of platform to meet your requirements. API can solve a wide range of problems:
creating additional analyzers for finding a trend of monthly increase of traders;
creating applications of integration into other systems;
extending the functionality of the server;
implementing its own system work control mechanisms;
and do much more
Integration with web-services
To provide traders with services of higher quality, the system supports the integration with web services (www, wap). This feature allows realtime publishing of quotations and charts on your site, dynamic tables containing contest results and much more.
Flexibility of the system
The platform possesses a wide range of customizable functions. You can set all parameters, from trade session time to detailed properties of financial instruments of each user groups.
Subadministration
Subadministration mechanisms allow leading many Introducing Brokers on one server quite easily. For processing all accounts and orders of the clients of your IBs, you will need one server only.

Learn Forex Trading To Expand Opportunities

Capitalize on the opportunity to learn forex trading so you can begin the process of branching your portfolio out of domestic stocks and into the global market. Any financial advisor worth his weight will tell you that it is important to diversify your investment portfolio and this is by far the largest volume market in the world. Daily, it does nearly four times the volume of trading than the New York Stock Exchange does.Anyone who holds a basic understanding of how money is converted and exchange rates work can learn forex trading. The sale or trading of currency is at the heart of what forex is. Using one currency to buy another means that your counterpart is using their currency to buy yours. As exchange rates fluctuate and the economies of nations surge and recede, these investments in cash behave in value very much like a traditional stock.As with any new venture, you will need to master the vocabulary that is an inherent part of forex. When you begin to learn forex trading you will be introduced to terms like pip, spread, cross, base currency and trade currency. Foreign exchange trading does have some unique terminologies. While they may be new to you, you will learn them quickly because they describe certain parts of forex quotes that you will need to understand in order to trade.There are quite a few resources available to those who wish to learn forex trading. The reliability of internet access has opened the door to online forex trading, which means that more investors have the ability to participate in trading activity.Since the foreign exchange trade is considered a spot market, the ready availability of internet access is crucial. Business is done on the "spot," thus the name.You can capitalize on many benefits when you learn forex trading. The availability of a 24-hour a day market is one. Since forex involves the trade of currency at banks across the globe, the market never closes. The market is also remarkably liquid, meaning that you will never have trouble finding trading partners. Since most of your trading partners are banks and the medium is cash, you will never be at a loss for customers. Another benefit is the lack of commissions.Since you make the trades on your own, you don't have to spend part of your profit on brokerage commission fees.Taking the time to learn forex trading opens one more investment door for you. As you continue to realize the importance of diversifying your investment portfolio, it may be a good idea to begin looking at what kinds of opportunities are available to you in foreign exchange trading. You may be surprised to see who else is capitalizing on this market and just how easy it is.

How to Find a Broker for the FOREX Trading Market

It's not always easy to know what to look for in a broker in any market, much less a market as complex as the FOREX. But, if you want to trade in FOREX you need a broker. While it might be tempting to simply ask the brokers what they can do for you, you can't always depend on them to give you a straight answer. Here are a few things to consider when choosing your broker.You will want a broker that has low spreads. Since FOREX brokers don't charge a commission, this difference is how they make money. Low spreads will save you money.Along with this, you should be looking for a broker attached to a reputable institution.Unlike equity brokers, FOREX brokers are usually attached to large banks or lending institutions. The broker should also be registered with the Futures Commission Merchant (FCM) as well as regulated by the Commodity Futures Trading Commission (CFTC).Once you've narrowed your choices down to brokers that won't cost you too much, and that are reputable, consider the trading tools that they are offering you. FOREX brokers have many different trading platforms for their clients, just like brokers in other markets. These often show real-time charts, technical analysis tools, real-time news and data, and may even offer support for the various trading systems. Before you commit to any one broker, request free trials of their tools. Brokers generally provide technical as well as fundamental commentaries, economic calendars, and other research to help you make good trades. Shop around until you find a broker who will give you what you need to succeedThe next item that you will need to evaluate carefully is the number of leverage options your potential broker has. Leverage is a necessity in FOREX trading because the price deviations in the currencies are set at fractions of a cent. Leverage is expressed as a ratio between the total capital that is available to be traded and your actual capital. For example, when you have a ratio of 100:1, your broker will lend you $100 for every $1 of actual capital you have. Many brokerage firms will offer you as much as 250:1. If you have low levels of capital you will need a brokerage with high levels of leverage to make reasonable profits.If capital is not a problem, any broker that has a wide variety of leverage options would be a good choice for you. A variety of options will let you vary the amount of risk you choose to take. For example, less leverage (and therefore less risk) may be preferable if you are dealing with highly volatile (exotic) currency pairs.Along with different levels of leverage, look for brokers that offer different types of accounts. Many brokers will offer you two or more types. The smallest account is known as a mini account and it requires you to trade with a minimum of around $300. The mini account also generally offers a high amount of leverage.The standard account allows you to trade at a variety of different leverages, but it requires minimum initial capital of $2,000. And finally, there are premium accounts, which often require significant amounts of capital. They also generally have different levels of leverage available to the traders who use them, and often offer additional tools and services. You will need to make sure that the broker you choose has the right leverage, tools, and services for the amount of capital that you are able to work with.About the Author: Who Else Wants To Trade Inside A Never-Ending Bull Market, Open 24 Hours A Day, With High Leverage And Low Transaction Costs? - Discover My Forex Trading Strategies Click here for FREE online ebook! http://www.forextradingstrategies.org/

Why Trade the Forex Market?

If you are interested in trading currencies online, you will find the Forex market offers several advantages over stock and futures trading.24-hour trading Forex is a true 24-hour market. Whether it's 6pm or 6am, somewhere in the world there are buyers and sellers actively trading foreign currencies. Traders can always respond to breaking news immediately, and P&L is not affected by after hours earning reports or analyst conference calls.After hours trading for U.S. stocks and futures brings with it several limitations. ECN's (Electronic Communication Networks), also called matching systems, exist to bring together buyers and sellers - when possible. However, there is no guarantee that every trade will be executed, nor at a fair market price. Quite frequently, traders must wait until the market opens the following day in order to receive a tighter spread.Superior liquidityWith a daily trading volume that is 50x larger than the New York Stock Exchange, there are always broker/dealers willing to buy or sell currencies in the Forex markets. The liquidity of this market, especially that of the major currencies, helps ensure price stability. Traders can almost always open or close a position at a fair market price.Because of the lower trade volume, investors in the stock market and other exchange-traded markets are more vulnerable to liquidity risk, which results in a wider dealing spread or larger price movements in response to any relatively large transaction.100:1 Leverage100:1 leverage is commonly available from online Forex dealers, which substantially exceeds the common 2:1 margin offered by equity brokers, and 15:1 in the futures market. At 100:1, traders post $1000 margin for a $100,000 position, or 1%.While certainly not for everyone, the substantial leverage available from online currency trading firms is a powerful, moneymaking tool. Rather than merely loading up on risk as many people incorrectly assume, leverage is essential in the Forex market. This is because the average daily percentage move of a major currency is less than 1%, whereas a stock can easily have a 10% price move on any given day. The most effective way to manage the risk associated with margined trading is to diligently follow a disciplined trading style that consistently utilizes stop and limit orders. Devise and adhere to a system where your controls kick in when emotion might otherwise take over. Leverage is a double-edged sword and necessitates the use of proper money management. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.Lower transaction costsIt is much more cost-efficient to trade Forex in terms of both commissions and transaction fees. Commissions for stock trades range from $7.95-$29.95 per trade with online discount brokers up to $100 or more per trade with full service brokers. An average commission on a futures trade is $15 a round turn. Forex brokers offer much lower commission structures.Another important point to consider is the width of the bid/ask spread. In general, the width of the spread in a Forex transaction is less than 1/10 that of a stock transaction, which could include a .125 (1/8) wide spread. And in the futures market, spreads are typically 7 pips or wider. As a rule of thumb, one pip equals $10, which means at 7 pips, a futures trade costs approximately $20 more than a comparable trade in the spot Forex market.Trading potential in both rising and falling marketsIn every open Forex position, an investor is long in one currency and short the other. A short position is one in which the trader sells the base currency in anticipation that it will depreciate. This means that trading potential exists in a rising as well as a falling market. The ability to sell currencies without any limitations is another distinct advantage over equity trading. In the US equity markets, it is much more difficult to establish a short position due to the Zero Uptick rule, which prevents investors from shorting a stock unless the immediately preceding trade was equal to or lower than the price of the short sale.Risk Statement: "Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts."

Is there a best time to trade forex market?

The answer to the question," Is there a best time to trade the forex?" depends on your objectives. If you are trading the forex based on earning a higher rate of interest then Wednesdays are the best day to trade the forex. You earn triple the interest on your currency trades.The Forex market,as you know, is a 24 hour market.Forex trading hours, trading time:New York opens 8:00 am to 5:00 pm EST Tokyo opens 7:00 pm to 4:00 am EST Sydney opens 5:00 pm to 2:00 am EST London opens 3:00 am to 12:00 noon ESTAs you can see there is an overlap in trading times.New York and London - 8:00 am - 12:00 noon EST Sydney / Tokyo - 7:00 pm - 2:00 am EST London /Tokyo - 3:00 am - 4:00am ESTAs trading pairs overlap, they become more active. If you are day trading the forex these would be the times of greatest volatility.Remember that the forex market is unpredictable. As we have just seen the stock market ( February- March 2007) can affect the volatility of the forex market.Have your money and trading rules in mind before entering into any trade. Trade a percentage of your account that you are comfortable with and that will not leave you with a margin call if the market does take a major dip.Have your exit strategies in mind before entering your trades as well. Don't be greedy. There are fortunes to be made in the Forex market but fortunes have also been lost here.The key to success in this or any trading market is to know what level of risk that you are comfortable with and to trade with your money rules in mind and not your ego.
Trade to make a profit not to get high or pat yourself on the back for your own brilliance at the occasional slam dunk.

Forecasting Forex Currency Exchange Rate Movements

Forex currency trading has turned out to be one of the most talked about online trading options. If you read the views of people about Forex currency trading, you would find that some claim it to be some incredible way of becoming rich overnight while others believe it to be a form of gambling.But the fact is that it is like any other trading and as such works on some fundamental principles. And knowledge to these fundamental principles is essential for Forex currency trading.FX for Forex is the abbreviated form of foreign exchange. And if you don't find it mentioned in the media, well I also don't know the reason because Forex currency trading is the biggest trading market in the world and is one of the best places for investors to earn good money.Forex trading could be understood as the sale and purchase of currencies of different countries. When you deal in stocks or commodities, you use money to purchase stocks or commodities. But in Forex currency trading, money is made or lost on the basis of difference in exchange rates between a pair of currencies.When you buy a stock, you are investing in a company but in Forex trading you are actually investing in the economy of the country whose currency you have purchased. Purchasing currency of a country at the cost of some other currency shows that you have faith on the overall economy of the first county in respect to the second.An example can make things quite clear. Suppose you have the US dollar and Euro. If you feel that (actually its research and not feeling) the dollar is going to rise in price and the euro is going to lose value, as per the current market trends, you would sell euro and purchase dollar. Thus, when the price of dollar rises, you would reap profits. That is how the Forex currency trading forecast works.But if Forex currency trading forecast is so easy, why do most of the experts claim that it is risky and one must be very cautious in investment. Well, because it is very difficult to forecast currency movement. It is not easy to predict the general direction of currencies, and since you always trade in a pair of currencies you need to study the overall economic potential of both the countries and then only can you come to any conclusion.There are no rules about sticking to a pair of currencies. You could choose any pair from all around the world. But if you are a novice in Forex currency trading, you would do well to trade in these seven prominent currencies-US Dollars, British Pound, Euro, Swiss Franc, Japanese Yen, Canadian Dollar, and Australian Dollar
Until, and unless, you have a fair understanding of the market, it is advisable to trade in these seven currencies.

Tips in Forex Stock

In ending, Forex trading is a mounting business. Those of you intending to join Forex in hopes to gain, be, sure to scan open information. Having a full understanding of Forex trading can spare you clamor and aid you in buy and soft soap in Forex?Forex rigged market works in comparison to other stock exchange markets, i.e. you must have revolving credit, which once you open an account you can start buying pairs or selling pairs in the stock market. Learn about the pairs, since it is important that you know when to buy and sell. You want to learn about bid/ask, as well as pips and spreads in Forex.If you intend to bank in on Forex, take time to find Forex charts so that you can monitor the market. Forex cabal options often rely on EUR, USD, GBP, JPY, and other pairs of currencies. Right now, the larger currency pairs is the EUR/USD. The US dollar is currently weak, which means that Europe dollar has a greater value. To underpinning your buy on currencies, study the market and focus on the infrastructure currency and price sticker currencies. When you presuppose that the currencies EUR dollar will decline, then you would buy currencies in pairs, such as USD/EUR. Remember however that your best bid is on the EUR currently.Bear in mind that the Japan Yen is a conveniently cabal stock industry with the US. However, India is also working with the US also, which in time you may see exchanges between these unions. This contends that the larger actions factor into buy or dispose in Forex trading. In outline, Forex trading is a tempt fortune*, touch a nerve ending traders assuming to gain from their currencies.
At the moment, Forex cabal is one of the larger than investment organizations, which currency is exchanged with outer cosmopolitan companies, government, large cyber banking institutes, central banks, financial orgs, and so on. Senders may buy or sell pairs of currency, trading with smaller banks and brokers; however, shopkeepers are at a higher face of loss.RateEmpire.com, http://www.RateEmpire.com an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Home Loans, found at http://www.1ahl.com and search engine marketing website http://www.EnginePromoter.comArticle Source: http://EzineArticles.com/?expert=Martin_Lukac

Forex Advice - The Best Trading Advice Is

Your own. Traders who think they can spend $100 on an e-book and buy success from someone else are really mistaken.The fact is most of the information you need is available free on the net and most sold advice is by writers NOT traders.Let's look at how to get the best advice for free.First things firstIf you really want to buy an e-book or system from a vendor check their traders and have a REALTIME track record of success.The fact is most don't and rely on the greed and ignorance of people buying their systemIf you find, practice and use the free advice on the net you can become a successful trader. The fact you have done it on your own will give you confidence in your method and the discipline to trade it through losing periodsGetting startedYou should use a technical based system.Use charts there are plenty free on the net.You can read why it works and about all the formations you need to spot profitable opportunitiesGet a free chart service.A good one is futuresource.com. It has all the charts and indicators you will need.You then need to perfect your method. Use charts to spot the formations and some indicators.You only need a few to combine with charting (and we have outlined one free in our other articles) The best indicators to use in our view are:Bollinger bands, stochastics, moving averages and RSI.You can then test out your skills.The best methods are simple so make sure yours is to.The more complicated a system is the more likely it is to break in the brutal world of trading.Simple systems are easy to understand so you will have confidence if the logic is soundly based and this will give you discipline.Forget short term or day trading, that's a mugs game and you will have the odds stacked against you.Look to use a longer term trading system and base it on a breakout methodology.Now does that sound too complicated?Trading is essentially simple and you can do it on your own for free by doing some research the net.Most e-books and systems sold I have seen never have a real time track record and the systems have no chance of working.Most of the sold advice is either from writers or traders who have never made money, so why not sell advice?If you really must buy advice (and we can't stress this enough) only buy forex advice where you get a real time track record.If they have not made money out of their system why would you want to trust them?Some good paid adviceIf you want to get some good paid advice visit a bookstore and get some books by traders who have walked the walk and made money.There not expensive and are packed with valuable forex advice for you to build on your basic trading plan.Good choices are:Market Wizards and The New Market Wizards - Jack SchwagerThis book interviews a diverse cross selection of traders who have made huge profits and is a very inspiring readTrader Vic - Victor SperandeoLove this book! Packed with insight into how to construct and implement a trading plan.Covers all the topics you need to know to get your plan off the ground.Jake Bernstein - The Investors QuotientGoes in depth to look at human psychology and he has written a lot in this area and its all worth a readThose three books will cost you around $50.00 or less and are all you need to get started.The above may sound simple and it is.If you think about it the only person who can give you success is yourself. So for forex trading advice think about relying on yourself.

Providing Forex Trading Education

Before you decide to dive into trading you need to get a Forex trading education. Just like several other investments, you should never just dive into trading on the foreign exchange market without know what your getting yourself into. With the correct foreign trading education, you will be on the correct track to learn how to make a large sum of profit by trading on the Forex marketSo, what are the lessons that you will discover when you take place in a Forex trading education? You will comprehend the actual nature of Forex trading training. As you very likely knew initially, Forex stands for foreign exchange or the synchronous exchange of a pair of foreign currency to a different pair of foreign currency. By understanding the nature of trading foreign currencies at the correct time, you are certain of gaining profit, although don't expect it to be as huge as the profits earned by professional and experienced Forex traders. To be successful getting a good Forex trading education will teach you how to do it.The starting part of your Forex trading education will center on studying the Forex market background. Recognize that the Forex market has volatile market conditions that are constantly changing, most particularly the foreign exchange rate. Through getting a Forex trading education, you will know how to examine closely such market changes and make suitable decisions.After you study and learn more about the various aspects of the Forex market, the next part of your Forex trading education is to manage the various risks involved. It is wise to learn about the risks that are involved when trading on the foreign exchange market. You need not to over invest or be overconfident at the thrill of opportunity of making huge money. Also on this part, you will learn how you will cut potential losses or getting out of a deal before your losses reach and even exceed your limits. It is natural that you will lose money when you start Forex trading. It is the most crucial part of your Forex trading education because it will determine whether you will end up making your way to riches or to a black hole.Once you learn how to manage the risks, you will then need to know more about manage your Forex trading account. You will be involved in practicing Forex transactions using a demo account and virtual money. Doing so will allow you to get to grips of the best ways to use your trading account before getting into real trading transactions. With a Forex demo account, there is no risk involved yet the nature is just as realistic as the real Forex trade. Moreover, your Forex trading education will also let you know whether you are ready to do the real thing or you need more practice. Only then will you be able to start and manage a real Forex trading account.There are several ways to acquire a Forex trading education. One of the best resources to get a Forex trading education is using the Internet. There are various free sites that allow you to open free Forex demo accounts to practice using your Forex system and trading strategies. There are also free e-books where you can read the necessary information about the Forex market and its attributes. Free webinars (web-based seminars) conducted in real time are available at random schedules. You may also seek some valuable advice from different active Forex traders. These individuals can provide you some insights and important advice regarding the subject of Forex trading

Make Money Fast In Forex Trading

Here we are going to look at making money fast in currency trading and some tips to do it.Much of this advice is not conventional but most currency traders don t make money fast!Here are your tipsWe are going to assume you trade already, and you have a method you are confident in, and can apply with discipline.With simple changes in trades taken and money management we will show you how to increase your capital gains. The trading tips below will work well for traders who want to catch the big profits from the big currency trends that last months or years and will help you make money fast in forex trading. 1. Accept Volatility and RiskAll good FOREX traders understand that volatility and risk mean big money making potential.You can't have a profitable FOREX trading method without taking risk, you need to risk more to gain more. .Risk though is misunderstood by most currency traders and they try and limit risk so much that they actually have no chance of making any profits. They always get stopped out. The perfect example is the day, or intra day trader, trading in one session with a tight stop. If you are after a big gain give the trade room to breathe and place a stop that takes into account market volatility.Also don t trail your stop to quickly leave it far enough behind not to get stopped out by volatile reactions within the long term trend. You can t predict volatility in the day so don t try. Look longer term take bigger calculated risks and go for bigger profits and trade less. 2. Trade InfrequentlyMany traders trade frequently and always like to be in the market, they fear they will miss a move, or that by trading more frequently, they will make money. There is no correlation between how often you trade and how much money you make, so learn to be patient.The big moves in FOREX trading, with the best risk to reward, come a few times a year, and you should trade infrequently.Focus on the trades that make the really big gains and be patient while you wait for them. 3. Don t DiversifyDiversification is a great way to make money slowly not fast you simply are diluting your gains, if you are trading a small forex account. Focus only on trades that you are confident can make big money in and don t hedge or take other trades. If you think the trade is going to be big back your judgment. 4. Money ManagementWe are looking at the BIG opportunities that allow us to make big gains, and this is actually, where money management becomes important. Where taking calculated risks here not just taking risk for the sake of it.The tips below are a great way of controlling risk 1. Buying options at in or close to the money, they will give you staying power and stop you getting taken out by volatility. Be careful not to buy out the money options and make sure that you get plenty of time on your side if using this method. Many traders lose, not because they were wrong about the trend, they simply got stopped out. Options overcome this problem and will give you staying power.2. Many traders start trailing their stops to close as we said earlier to lock in a profit, more often than not they get stopped out. The trade runs on to make thousands more in profit and there not in it!. Keep your stop in its original position and let the move develop without the temptation to move your stop up.You re looking to make money fast, and you re trading selectively so have the courage of your conviction .Consider thisThe fact is in currency trading or any other venture in life that involves making big gains you have to take a calculated risk at the right time and have the courage to go for it. I read all the time about risk management in trading and some traders become so obsessed with not losing they will actually never win and lose their equity over time.

Bollinger Bands A Great Help In Forex Trading

Forex trading is a great activity that can earn you lots of money. If you know what to do and have invested the time needed to understand how the currency markets behave you will surely have a profitable experience with forex trading.The main problem any trader encounters when starting his trading career in the currency markets is how to predict what the market will do in a given future time period with good accuracy so that he can place the correct orders and pull a profit from a given market movement.There are a number of techniques and indicator that can give the trader a pretty good hint of what the market will do next. One of those techniques used to predict the Forex market behavior is that based on what is known as Bollinger Bands.Bollinger Bands are a technical trading tool used in the capital markets (including Forex) created by John Bollinger in the early 1980s. The way this indicator was formulated is based on the need for adaptive trading bands and the discovery that the volatility of the markets was a dynamic phenomena, not a static one as was widely believed at the time.Bollinger Bands consist of a set of three curves drawn onto a forex chart in relation to the currency prices. The middle band drawn in the forex chart represents the intermediate-term trend, and it is usually a simple moving average and it serves as the reference base for the upper and lower bands. The interval separating the upper and lower bands from the middle band is calculated by using the volatility of the market; typically the distance of the external bands from the middle band is a standard deviation of the same data that was used for the moving average.The default parameters used with these analysis technique is 20 periods for the average and two standard deviations for the gap between the bands. But these parameters may always be adjusted to suit the particular trading purposes of the forex trader using the indicator.

Who Or What Decides When To Trade?

When you are looking to find a system of trading forex markets, it does not matter how many books you read, how many magazines you invest in or how many websites you browse, trying to find something 'different".There are basically only two types of Forex trading systems, those that we might call mechanical and those that are human driven or discretionary.In this article, we shall try to investigate which type of system is better, or, if indeed, either one can be shown to better than the other.In general, the trading signals that are generated by mechanical systems are usually drawn from normal technical analysis techniques that are applied in an entirely rigid, automated manner. Human beings, on the other hand, rely on experience, intuition and subjective insights to drive their trading activities. So, is there any objective test that will tell us that one or the other method of trading works best when applied in the real world?Well, both trading systems have both advantages and disadvantages. We might summarize these as follows:Advantages: MechanicalA mechanical system, by definition, assumes that the same action will be taken every time the same set of signals occur. Thus, in theory at least, it is very easy to back-test by applying these rules to situations that arose in the past. The rules dictating when trades are entered and exited are fully automated, so everything is completely black and white. The signals tell you that there is a trade or there is not, period. Emotions cannot therefore play any part in trading decisions. Advantages: HumansHumans have the ability to adjust their actions to whatever is happening around them. Decisions based on experience are predicated on applying many, many factors to the decision that is made, some of which may change almost daily, and a human is adaptive enough to take this into accountDisadvantages: MechanicalAlthough a mechanical system will produce data that is 100% reliable, the trader using this date may not work to the same standards.Forex markets never stand still. They change all the time, introducing new situations that a mechanical system (being based on past data) has never encountered before.Nothing in forex markets ever happens exactly the same twice! Almost exactly the same is not exactly the same, but a mechanically driven system cannot necessarily differentiate, or make allowances for this.Disadvantages: HumansSystematic back testing is not so easy. Heck, it may not even be the same person making the decision this time as it was last! Experience takes time, and, partially at least, relies on learning from mistakes. This could potentially be an expensive way to learn!So, which one is better? Well, guess what? Neither is!Which one is better depends entirely on who you are, how you trade, your ideas about money, risk, reward, and so on. For some people a mechanical system will work. For example, like the proverbial rabbit frozen in the headlights of the onrushing car, some people are too paralyzed by doubts and fears to ever make a decision the dread of being wrong is almost overwhelmingly strong. The pressure of having to make decisions will almost certainly cause this type of person never to make a decision at all!A mechanical system, wherein a trade is only taken when the system says so, will remove all of the pressure in these circumstances, and so, for this type of person, this is probably the way to go.If, on the other hand, you can stay totally on top of your emotions, and are the kind of character that can stick to a highly disciplined regime, then you are almost certainly going to make more money trading forex based on you own instincts and beliefs, assuming that you also boast the necessary experience.As an example of this 'in action', your innate ability to think on your feet would really comes to the fore if, say, you are in profit, having hit your original target, But, in this case, you believe that you could make more, by staying in the market. Your discretionary approach allows you to do so. Say you originally set a 100 pip move as your profit target but, once that number has been hit, you clearly sensed that there is still further to go. In this situation, after applying a few basic security measures like moving your stop loss up, perhaps to your original target if possible (so that becomes the minimum you will make, should the market turn) you just let it ride for a little longer, a decision which is based on your experience and probably also on your 'gut feeling' hunch.That is what applying discretion can do, but the extra pressure that changing your original decision can bring is not for everyone.So, the bottom line is that there are advantages and disadvantages to both approaches, and it is entirely a question of horses for courses. Given that neither approach has, over time, proved noticeably more successful than the other, whichever forex trading style most suits your personality is going to be the best one for you!One final thing. Maybe you are reading this now, thinking, well, heck, I don t actually know what kind of trader I am, never having tried it before.If that is you, I would thoroughly recommend finding a broker who will let you trade a free demo account (which is actually 90% of the online brokerage houses nowadays) so that you can get more idea of where you stand.But do remember that a demo account with pretend money does not really match the pressures and emotions that are part and parcel of trading with your own real money!By: steve j cowan

Make Money with Currency Trading on FOREX

FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.

Investment Strategies: Technical Analysis and Fundamental Analysis

The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.
A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.

Marginal Trading

Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.
EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)
When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

How FOREX Works

Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.

FOREX

For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.
FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.
Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

An overview of the Forex market

The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:
24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
Forex tradingThe investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, 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. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.