Ebook Forex Trading and Commodity (Package 41)

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Label: currency trading, forex futures, forex investing, forex investments, online trading, trading currency

Good Trade so far

Its been a good week. Last week I posted signal for UJ and GU. I was hoping UJ to make the move but instead GU has done it. Over 1000 pip move. UJ is undecided due to the US economic situation and the 700b bailout plan.

At the moment I have closed all post. GU and GJ is making the strongest move of turning but it wont turn just yet. If you are used to these type of market you will understand that it will take time. So next week hopefully all goes well and a trade signal will come up.

Looking at the chart GJ is closer to breaking the trend compared to GU while AU is going flat now. The rest is slowing down except UJ. I dont know where its going.

Happy trading and see you next week. Hopefully :)

FREE FOREX SIGNAL 19 SEPTEMBER 2008

AudUsd has made a double top level 3 (thats what I called it). signal should be as follows

BASELINE TRADER: INTRODUCTION

There are many ways to make money in Forex, not to forget there are a million ways to lose money in Forex market. Its an open market design for open competition. Only the smartest will survive.

A little something about Baseline Trader. I have spend more than 2 years looking at charts. I am looking at charts through technical aspect. Meaning, there must be some logical explanation why forex behave the way it is. Looking thru the naked eyes, forex market is unpredictable, wild and hungry. Its like a tsunami wave, destroying everything in its path but then there are wave surfers who make a living out of surfing waves. How is that possible?

Baseline Trader will be based on Fibonacci numbers. Believe or not, Fibonacci is a wonderful mathematical calculation. In the chart there will be short term and long term trade, fib levels, entry and exit, sl level all bunch up in a single chart. Sounds too much but believe me, once you know how to read it, one glance and you know where you are going to be. It is design to be simple yet precise. If you read the chart right, you will always be with the trend and you will always know your exit.

Below is a chart of GJ trade which I took. I like to share with you the chart since willcare is giving signal in the opposite direction. My entry and exit point is based on Fib levels. In the chart the level is not shown since Marketiva doesnt have the indicator available. My full chart is on MT4. Btw, I missed my entry so I will not trade GJ for now. My entry is exactly on the black line.

Baseline Trader

Its been a long time since posted. On 16 July 2008 that is my birthday, a friend of mine call me up and gave me a birthday present. He said that I should short GBP/USD no matter what. Guess what, till today GU has moved down 2500 pips. Talk about a good birthday present. Thanks Abbas.

I will be posting a short term trading strategy soon. I called it Baseline Trader. It is a short term trade strategy couple with a good money management will give you good result. It is because the high win trade ratio.

USDCAD: TOO MUCH, TOO FAST

Last nite usdcad fall too much and too fast. Is is unexpected. As usual when a pair move too much and too fast, it will lose it balance. As a result, usdcad maybe entering swinging mode for a few days. It doesnt really has direction. It will just goes up and down waiting for it to balance out before a new trend continue.

I am still holding usdcad short for now but in the long run it is not profitable. I will exit soon and wait for the equilibrium of the pair.

FREE FOREX SIGNAL 26/08/2008

Market is swinging here and there but I think its going to settle into a trend soon. Here it goes. Trade with cautions

Short USDCAD @ 1.0550 or better

Long AUDUSD @ 0.8500 or better

The idea of how to be in profit in forex is to have a good system. A system with accuracy of about 80% or better. Then you take trade using a fixed risk. Meaning all your trade have a fixed value of SL but unlimited value of TP. In the long run you will be able to profit since the accuracy is over 80%

Forex history

Forex history

Did you know that more and more business opportunity seekers worldwide are
discovering the powerful profit potential of Foreign Exchange trading? In this
business, there are no employees to hire, no advertising, no products to stock,
no downlines to fill--just you, an Internet connection and a computer. That's all
you need to make money on the worlds largest market. If you are searching for
an alternative to more traditional home-based business opportunities, then Forex
trading may be what you’ve been looking for.
Our purpose is to empower, mentor and train currency traders all around the
world who would like to Day Trade Forex as their main source of income. For
those looking for a significant part-time income, we believe Currency Trading is
the vehicle to use. Our aim is to assist you to:
1. Stay Disciplined—To learn how to manage risk effectively.
2. Keep Objective—To trade in a non-emotional, intelligent way.
3. Trade with Confidence—To know exactly when to trade.
4. Become Systematic—To generate your own Forex buy/sell signals.

Currency exchange is very attractive for both the corporate and individual
traders who make money on the Forex - a special financial market assigned for
the foreign exchange. The following features make this market different in
compare to all other sectors of the world financial system:
• heightened sensibility to a large and continuously changing number of
factors;
• accessibility to all traders in the major currencies;
• guaranteed quantity and liquidity of the major currencies;
• increased consideration for several currencies, round-the clock
business hours which enable traders to deal after normal hours or during
national holidays in their country finding markets abroad open and
• extremely high efficiency relative to other financial markets.
This goal of this manual is to introduce beginning traders to all the
essential aspects of foreign exchange in a practical manner and to be a source of
best answers on the typical questions as why are currencies being traded, who are
the traders, what currencies do they trade, what makes rates move, what
instruments are used for the trade, how a currency behavior can be forecasted and
where the pertinent information may be obtained from. Mastering the content of
an appropriate section the user will be able to make his/her own decisions, test
them, and ultimately use recommended tools and approaches for his/her own
benefit.

Forex info

forex Info

Before we begin looking at the specifics of the FPS and how it works, let’s look at
4 building blocks that I believe to be foundations to the Forex Profit System.

Foundation #1: Currency Trading is not a Get-Rich-Quick Scheme.

Currency trading is a SKILL that takes TIME to learn. Skilled Traders
can and do make money in this field, however like any other occupation or
career, success doesn’t just happen overnight. Here is a great ‘formula’
for success:
Practice + Patience + Persistence = Profits
As they say, there is no substitute for hard work and diligence. Practice
trading on a demo account and pretend the virtual money is your own real
money. Do not open a live trading account until you are profitable
trading on a demo account. Stick to the plan and you can be
successful.

Foundation #2: I highly recommend that you follow 1 or maybe 2 major currency pairs.

It gets far too complicated to keep tabs on all four. I also recommend that
traders choose one of the majors because the spread is the best and they
are the most liquid. The Euro/USD is the most commonly traded pair and
usually has the best ‘spread’ because of its liquidity. The USD/Swiss Franc is
usually the most volatile and moves the most during the trading week. The
USD/Yen moves a lot on the news out of Japan and normally the Pound
Sterling/USD is more stable in it’s moves than the other three.

Foundation #3: Follow and understand the daily Forex News and Analysis of the
professional currency analysts.

Even though this system is based solely on technical analysis of charts, it is
important to get a birds-eye view of the currency markets and the news that
affects the prices. It is also important that you know and understand what the
key technical ‘support’ and ‘resistance’ levels are in the currency pair that you
want to trade. Support is a predicted level to buy (where currency pair should
move up on the charts), resistance is a predicted level to sell (where the
currency pair should move down on the charts).
Fortunately, all the best Forex news and analysis is offered free on the
Internet. Here is what you should do first:
*While you are reading the daily news and technical analysis, write
down on a piece of paper what direction the analysts are saying
about the major currency pair you are following and the key support
and resistance levels for the day.

A. Go to http://www.forexnews.com/ and you will find 24hr news and analysis on
the spot FX markets. The site will give you the big picture of how the
economic calendar and central banks affect the currency markets. A
great resource.

B. Then go to http://www.fxstreet.com/ and click on the ‘Top Forex Reports’. Here
there is a wonderful listing of all the major daily currency analysis and
forecasts with support and resistance and direction forecasts.

C. Click on http://www.currencypro.com/ and go to ‘Today’s Market Research’ and
there you will find more excellent analysis on the Major Currency pairs.
Another great Forex Portal.

Foundation #4: Learn how to use the technical indicators in this course and
always trade with stop losses!

It is worth your time to be patient and learn how to use the technical
indicators on the charts that you will be reading about shortly.

6 It is important when you are trading Forex, to be disciplined and to stick to
a plan. Don’t just trade your ‘gut’ feeling. Use the technical indicators
outlined and always enter in stop losses on every trade. Remember that
everyone who trades has a different tolerance for losses. Depending on
your risk capital, and strategy, set your stop losses accordingly.

Forex info1

Forex info : Six Steps to Success

Step 1. Choose an online Forex Firm
What to look for in an online Forex Firm:

1. Low Spreads.
In Forex Trading the ‘spread’ is the difference between the buy and
sell price of any given currency pair. The lower the spread saves
the trader money. Most firms offer 4-5 pip spreads in the Major
Currency pairs. The best firms offer clients 3-5 pips.

2. Low minimum account openings.
For those that are new to trading, and for those that don’t have
thousands of dollars in risk capital to trade, being able to open a
mini trading account with only $200 is a great feature for new
traders.

3. Instant automatic execution of your orders.
This is very important when choosing a Forex firm. You want instant
execution of your orders and the price you see and ‘click’ is the price
that you should get. Don’t settle with a firm that re-quotes you when
you click on a price or a firm that allows for price ‘slippage’. This is
very important when trading for small profits.

4. Free charting and technical analysis
You need a firm that gives you access to the best charting and technical
analysis available to active traders. The firm that I recommend gives
clients FREE professional charting services and even allows traders to
trade directly on the charts!

5. High Leverage
You want high leverage—the ability to trade a large amount with a small
margin deposit. Some of the best firms offer .25% or 400:1 leverage.

6. Hedging Capability
You want the flexibility of opening positions on the same currency pair in
opposite directions without them eliminating each other and without
margin increase!

Forex info2

4. Forex info : Market hours

Time zone New york GMT

Tokyo open 7:00 PM 0:00
Tokyo close 4:00 AM 9:00

London open 3:00 AM 8:00
London close 12:00 PM 17:00

New york open 8:00 AM 13:00
New york close 5:00 PM 22.00

you can download qlock for accurat market hours

I hope this is usefull for everyone.

My trading accademy

Thanks broo ini mungkin sekedar share aja, siapa tau berguna buat kamu

Pendahuluan
Bisnis=Pekerjaan bisnis Valas (forex) merupakan bisnis yang paling besar dudunia, mengapa? karena sekarang tidak menutup kemungkinan Individual pun dapat berbisnis di bisnis ini dengan mudah dengan hanya bermodal uang min Rp 200.000/ $20 pebisnis kecil2an bisa berbisnis pada bisnis ini, yang membuat perdagangan ini besar, ingat manusia diseluruh dunia, bukan Indonesian people doank. jadi sangat wajar perputaran uang mencapai triliunan dollar. ok that is pendahuluan, sekarang to the point aja,agar seorang newbie trader dapat memperoleh keuntungan rutin (meski tidak besar) hanya dengan dirinya sendiri. kemauan untuk maju, ingin berubah, kerja keras, disiplin, selalu berintrospeksi akan berbuah suatu ilmu (pengalaman) yang sangat berharga. Ada beberapa point yang menurut saya pribadi sangat vital dampaknya bagi bisnis ini. Mengapa saya harus memberikan informasi seperti ini? tentu untuk mencoba memberikan pengetahuan yang telah saya dapatkan selama ini. Setiap manusia tidak akan pernah berhasil dan sukses tanpa dilandasi dengan kemauan, dan kerja keras untuk bisa, tapi bukan itu saja, keberhasilan yang baik juga harus ditunjang dengan menagment keuangan yang baik, disiplin diri, dan selalu mencari ilmu yang akan sangat kita butuhkan. Ingat broo keberhasilan tidak semudah membalikan tangan, juga tidak semulus kulit bayi,ga butuh suatu tekad baja untuk dapat meraihnya. Sebelum keberhasilan terjadi pada diri manusia kadang kala manusia akan terlebih dahulu mencicipi kepahitan, gagal, Rugi, Bangkrut merupakan pemandangan yang lumrah dilihat dalam bisnis forex. Disini lah sebenarnya mental serta penguasaan diri diuji, apa bila seseorang setelah setelah mengalami kerugian, kebangkrutan mampu untuk berintrospeksi, dan mencoba merenungkan apa sebenarnya yang telah ia lakukan yang menyebabkan ia bangkrut. Maka secara tak langsung ia sedang melakuka salah satu perubahan besar terhadap dirinya sendiri. Ada pun point2nya sebagai berikut:

1. Media Informasi
Informasi menjadi sebuah kebutuhan formal yang mutlak ada pada diri manusia, tanpa informasi kita tak akan bisa mendengar berita, melihat TV, tak tahu gosip dan lain2. Tidak terbayang bila kita tidak mengetahui informasi, betul tidak? Informasi pula yang membawa kita pada bisnis ini, kita search digoogle-kata kunci (forex)-muncul informasi2 yang kita butuhkan.

2. Media forex
Sebelum kita melakukan transaksi pada bisnis ini, kita memerlukan media forex untuk dapat menjalankan suatu transaksi (http://media-forex.blogspot.com/) kita mutlak harus mencari dan membaca media itu misalnya e-book, jangan anda kira tanpa bekal ilmu pengetahuan, anda akan memperoleh keuntungan. mustahil meski mungkin (kebetulan). dalam e-book terdapat materi/ilmu yang kita butuhkan dalam bertrading seperti tutorial penggunaan software, Menganalisa pergerakan harga, melakukan analisa, dll. bayangkan bila anda tidak tahu sama sekali tentang dasar2 forex. Apa yang sedang kamu lakukan!!! kamu bisa dianggap GILA boo. Banyak ilmu yang disediakan di e-book maupun media masa dan elektronik. Anda harus mempelajari semua aspek sebelum anda berniat terjun dalam bisnis ini.

3. Praktikum/latihan
Setelah kita memahami segala aspek tentang forex, maka hal yang harus kita lakukan adalah mencoba hasil yang telah kita resapi, cobalah dalam melakukan order transaksi, limit order, serta stop order dan apa fungsi masing2, cara memasang stop loss, take profit dan trailing stop, lakukan menganalisa pasar dengan fundamental serta teknikal analisa, dengan mencoba berbagai indikator yang telah disediakan (cari juga fungsi masing2 indikator), baca2 berita (news), lakukan dalam demo account selama 1 bulan (minimal)/anda bisa mencobanya dengan, live trading dengan lot yang sangat sedikit Rp 50 ingat tapi setelah anda faham. Jangan jemu2 untuk mencoba dan gagal (human error) dengan demikian kita bisa mengetahui apa yang seharusnya dilakukan. Perlu diingat Praktikum/latihan= belajar, belajar=mencari ilmu Ingat baik2 broo.

4. Jagalah keadaan psikologis kamu saat trading
Dalam trading valas terdapat suatu perbedaan yang sangat mencolok antara demo dan live trading. Penangulangan mental serta emosi menjadi berbedan karena saat itu pula pikiran dan perasaan mengatakan " wah minus 20 point apa yang harus saya lakukan, minus $5, demo sih gak pa2 tapi ini duit asli saya." ketakutan muncul pada saat itu, apa yang anda lakukanm anda menutup transaksi itu dengan kerugian, padahal ingat kebiasaan pasar, ia akan naik turun, tidak akan selamanya turun (pengalaman lah yang entar berbicara, tenang saja broo), Sebaliknya ketika transaksi anda profit hati berkata " wah tadi dah profit 20 pips/ $10 sekarang turun jadi $5, pasti ini strategy pasar, pasti akan naik lagi sebentar lagi" tapi tiba2 harga dengan hebat turun sehingga dari profit berubah menjadi loss, maka keserakahan menghampiri mu. itu lah musuh utama seorang trader. Mereka tidak tahu harus berbuat apa, pengalaman belum ia dapatkan. tenang saja, kamu akan mempunyai suatu pengalaman, karena kamu akan mulai introspeksi, kenapa itu bisa terjadi, maka pengalaman itu semakin banyak dan akan semakin mematangkan seorang trader. Dijamin

5. Mulai menjalankan time is money
Mulailah trading dengan hal positif (ber do'a) Lalu jalankan strategi kamu (sistem trading) yang telah terbukti (sebelumnya dipatenkan terlebih dahulu dalam demo account). jalankan dengan disiplin dan jalankan juga managment keuangan dengan tingkat risiko 2%-5%/ transaksi, pasang selalu stoploss (point tergantung dari tingkat risiko yang dipilih) setelah transaksi profit melampoi 20 pips, pasang segera trailing stop (stoploss yang dinaikan) minimal maksimal point profit, apabila profit terus bertambah, anda dapat menaikan lagi trailing stopnya (jangan terlalu ketat dalam memasang trailing, selalu berikan tempat agar chart bisa naik turun) anda bisa juga memasang take profit (optional). semoga berhasil

6. Pengalaman yang melimpah
Berbekal banyak human error yang didapat anda sudah memiliki pengalaman yang sangat melimpah ruah, Apabila hati anda terketuk, untuk berbagi pada sesama, maka bagikanlah pengalaman itu pada sesama/ bila anda ingin pula mendapatkan uang tambahan dengan menjual sistem yang anda peroleh, boleh saja brooo. dan anda pun siap menjadi sejarah baru dalam kehidupan keluarga anda, dan mungkin saja ilmu dan pengalaman anda akan diwariskan pada anak/cucu anda. Amin.........

Tips dalam trading

1. jangan melakukan transaksi dengan tebak-tebakan
2. Tidak memasang stoploss dan trailing stop
3. Sesuaikan time framenya sesuai dengan kemampuan trading anda
4. Tidak terlalu banyak melakukan transaksi pada banyak mata uang
5. Jangan membeli transaksi setengah dari modal anda
6. Jangan transaksi lagi apabila loss terus menerus
7. Jangan memaksakan tubuh anda, bila sudah tidak kuat
8. selalu mempunyai visi, dan misi
9. Selalu berprinsip berhasil pada hari ini, besok harus lebih baik dari hari ini
10. Jangan online lebih dari 5jam, lakukanlah perselangan jam (istirahat)
11. Jangan serakah, dan jangan terlalu takut
12. Jagalah kondisi jiwa ragamu

Selamat anda sudah menyelesaikan pembacaan pengalamanku pribadi, semoga dengan ini akan menambah inpirasi kamu dalam berbisnis ini. salam Forex insider

Forex strategy

Famouse system strategi that professional trader used
I have copied that system from any forum forex

1. System name : Daily swing
Time Frame : 15 and 30 minute
Indicator : EMA 5
EMA 10
RSI 14
Stochastic 10,3,3

Buy signal if : EMA 5 Cross over and above EMA 10
RSI must above 50
Stochastic Turned up

Sell signal if : EMA 10 Cross over and above EMA 5
RSI must <50> 50
MACD Crossed and must >0

2. System name : MACD strategy
Time frame : 5 minut dan 15 minut
Indicator : WMA 5
WMA 13
Slow stochastic 8,3,3
RSI 13
MACD 3,34,7

Buy signal if : WMA 5 cross over and above WMA 13
stochastic turned up
RSI > 50
MACD Crossed and must >0

Sell signal if : WMA 13 cross over and above WMA 5
Stochastic turned down
RSI <50>
MACD Crossed and histogram <0 3. System name : chandlestick strategy did you know just the chart can tell you when to buy and sell with simple click. when I Look thr chandlestick chart I look if the chart is uptrend and the trend will be offer. the chandlestick will show you the pattern. just with 3 chandles you can sell or buy before your indicator tell. if you want to use the strategy, you must understand and save in your memory some of pattern. download the chandlestick e-book in the e-book download zone. enjoy....... All of trading strategy will make profit if you are dicipline to use the strategy, because decipline is a key to be a succses. 4. VOLATILE STRATEGY This strategy was not use tehnical analysis but use fundamental analysis only. this strategy only uses if news come, which that news can be do to market moving (fundamental announcements). news have 2 prospeck good news, and bad news. but that news was given to you become 1, good news. the first step is you must read the news from currency taht you want to trade. for example usd country America, you must read an America news. bloomberg, forex factory, and other are a website which given to you some news (forex calendar/routine news) that day. but you must to understand that news, bad news or good news to it currence. for the function of same news to the market moved, you can download at this site in the download zone. but the little keys are : 1. Interset Rate 2. Unemployment Reports 3. Fed speaking 4. Consumer Price Index (CPI) 5. Gross Domestic Product (GDP) 6. Money Supply 7. Treasury Budget 8. Producer Price Index (PPI) 9. Retail Sales 10. Internatonal Trade

The Forex Market

For the last three decades Foreign Exchange market, - briefly Forex or FX, had integrated into the world's biggest financial market. The volume of daily transactions is about 1-3 trillion of US dollars. The trading instruments on this market are the currencies of different countries, so the fluctuation of currency's rates allows to gain a real profit.

he dollar fell to an 8-week low against the euro

The dollar fell to an 8-week low against the euro and numerous other currencies today, as investors stayed clear of the greenback because of uncertainly of the struggling US car manufacturers and its economic impact.

Late last week, the White House said it was considering a $700 billion bailout to prevent the collapse of the US car manufacturers; this was after the US Senate had rejected the plans on Thursday.

In the early session, the dollar was 0.7% down against the euro at $1.3470, as investors are wary that the collapse of any one of the US car manufacturers could drag other companies under with it.

The dollar was also under pressure because of the Federal Reserve’s policy meeting later this afternoon, where it is widely anticipated that the Federal Reserve will cut interest rates by another 0.5%.

Margin Trading

The forex market is a 100% margin-based market. This is a familiar thing for those used to trading futures.

In fact, spot forex trading is essentially trading a 2-day forward (futures) contract. You do not take actual possession of any currency, but rather have a theoretical agreement to do so in the future. That puts you in a position of benefiting from prices changes. For that your broker requires a deposit on your trades to provide surety against any losses you may incur. How much of a deposit can vary. Some brokers will asked for as little as 1/2%. That is fairly aggressive, though. Expect 1%-2% on the value of the position in most cases.

Now, unlike the stock market, margin trading does not mean margin loans. Your broker will not be lending you money to buy securities (at least not the way a stock broker does). As such, there is no margin interest charged. In fact, since you are the one putting money on deposit with your broker, you may earn interest in your margin funds.

Foreign Exchange (FOREX)

s the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

Foreign Exchange (FOREX)

Swing Trading - The Best Way to Trade Forex

Ideal Trading

Swing trading can mean a lot of things. So, a definition is a good place to start. I call anything swing trading that doesn't require you to look at your trades more that several times a day at most.

That's the whole point. Check the market. Put on trades if the market warrants it. Shut off the computer and get on with your life. Sounds good to me.

Timeframes

Usually you wouldn't try to swing trade on anything less than a 1 hour chart. I prefer the 4 hour chart myself. If I had more patience, I would trade the daily chart. However, anything smaller than the hourly charts, and you are starting to get into the market "noise." Trends and breakouts are much clearly the slower the timeframe. Why not take advantage of that?

Does It Fit You?

The thing about swing trading is that it can definitely get boring. You see, you might come upon a stretch where for a week or more, no trades present themselves. Do you have the patience to watch and wait? Or will you jump into the market? Don't answer the question. You really don't know until you've been there and done that.

However, don't go running to day trading if you're having trouble swing trading. First, day trading is harder. Second, just like swing trading, you will have dry spells in day trading too.

Your System

Of course, you need to have a system or methodology. I'm not going to discuss it here as I've already got a page devoted to it. For a very important bird's eye view of the process, have a look at my forex trading system page.



More articles on non-day trading.

Want a forcast of where the rates will be in a 1 1/2 years?
18 Month Forecast of Exchange Rates

Want to where where the best places are to get the inside story on the forex market?
Best Forex Commentary

Can you be totally hedged and still make money?
Forex Trading. Full Hedging, Is It Possible?

Your choices if you choose to enter this market
Forex (fx) Trading Options - What Choices Do You Have?

What makes the best wealth hedge against uncertain times?
The Best Hedge Against Uncertainty - Gold or Foreign Currency?

Day Trading Forex

Profit Potential

Why would anyone want to day trade? Simple. To paraphrase Bill Clinton, "It's the money, stupid. " If you can make money at a modest rate swing trading, why not increase the rate money is made by trading intra-day. That's the attraction. Just remember that just like any kind of trading, however, the money doesn't just flow in. There are things that you will need to watch out for.

Pitfalls

There are three things that people considering day trading don't seem to consider. (I know I sure didn't.)

1. Uneven equity curve. You will not steadily make money. I admit I get really sick of this "Make $500 a day!" nonsense. There is no such thing as steady money in trading. You will make some and then lose some. The idea is to make more than you lose. When you day trade, this is all taken to a new level. You lose and you make it so much faster.

As a side note, it's normal to have a larger trading account 5% of the time. In other words, only once a month will your bankroll set a new high. Most people don't know that.

2. Losing days. Having an uneven equity curve means that you will have losing days. You could have a day where you lose $1000. Yes, it happens. The sooner you accept that as a day trader, the more likely you are to succeed. (And you'll have a lot less stress.)

3. Days with no trades. The market does what it wants. There are days where no good trades materialize. So, that means that the winning day trader doesn't trade. Almost nothing is harder (at least for me) that sitting in front of the screen watching the price all day and taking no trade.

Myths

Day trading has taken on almost mystical proportions in some people's minds. I've heard some talking about how day traders make hundreds of trades daily. No day trader I've ever met does that. Try making one hundred trades a day and the spread with financially murder you. Day traders make from zero to maybe three trades in a day.

All of the hype advertising, purports that day trading is easy. Wrong! Anyone who has tried it can tell you that. However, then many of the people who tried it, and then failed, believe that it is impossible. It's not.

Steps To Success

That begs the question, how do you do it then? Here are the steps to success as a day trader as I see it.

1. Success at trading. Don't try to day trade until you've proven to yourself that you can trade successfully at a much slower pace.

2. Sufficient capital. If your trading account isn't in the high five figures, you shouldn't day trade (if that's going to be your only source of income).

3. A winning system. Day trading is harder than any other kind of trading that I know of. You really need to make sure your system will hold up. A system that works in a slower time frame will not necessarily work for day trading. Make sure you're system has a positive expectation.

4. Practice. Practice makes perfect. Yes, it's a tired old phrase, but it's true.

5. Patience. The market will try to destroy you as a new day trader. Have patience. Hang tough. You will make it, provided the previous four items are in order.

Winning Forex Trading

Winning Forex TradingThe Whole Point Of Trading

Why do we trade? Money. Let's keep that is the front of our minds. Traders get carried away with all the fun fancy stuff they can do. They get carried away with the thrill. They get carried away with the analysis, but trading is all about making more money.

Your Focus

That's the whole point of this website. It's to show you how to win more. Why did you start trading in the first place (or if you're not trading yet, why did you originally think about it)? It was the financial reward. Okay, so together let's take a journey down the path of becoming better traders.

Overview Of Winning

Really quickly, I just want to give you an overview of the three most important things that are forgotten by many traders (dooming them to become losing traders).

* Keep it simple. The simpler your trading regimen and trading rules are, the more likely you are to follow them. Make it easy. Make it simple.
* Don't care. This is the hardest thing for traders to master. You need to figure out a way to not care about your individual trades. You start caring, and you start stressing. You start stressing, and you'll make a mistake. Make a mistake, and you've lost. I guarantee you this is the reason professional fund managers never consistently make large returns. The managers are thinking way too much about what the investors will think of their every move.
* Be sure you have an edge. For much more detail on this see my trading systems page.

P.S. Why Trading Isn’t Gambling

There appears to be a lot of correlation between gambling and trading. Both can seem random. Both have more losing participants than winners. Both use similar terminology.

So, is trading gambling? No.

You see, trading does one thing that gambling doesn't. It creates value. When two businesses in different countries want to do business, they need to exchange currencies. When a traveler visits another country, he/she needs currency exchanged. When a high net-worth individual wants to invest overseas, currency needs to be exchanged yet again.

Yet, if there were no small forex traders, there wouldn't be anyone to take the other side of the trade for these necessary transactions. So trading creates value, because it allows money to flow freely from country to country as business is done.

Gambling on the other hand creates no value. It was created strictly for the entertainment value, and that's the difference between the two.

Forex(FX) Trading Strategy

A forex trading strategy can provide profit for a skilled speculator. A FX trading strategy is, simply put, a method for using foreign exchange rates of currency from various countries to buy one country’s currency when it is undervalued, and exchange it for another country’s currency with it is of normal or higher value, with the difference being profit.

A common forex trading strategy could involve US dollars and the Euro, the official currency of most European countries. To use a simple example of a forex trading strategy, a speculator would buy Euros when they were undervalued; let’s say two Euros equaled one US dollar. This would be unusual because normally the two currencies are almost equal.

By spending one hundred US dollars to buy two hundred Euros a speculator would be able to buy more goods in Germany, France or other European countries. When the market changed and became more even, the speculator would have twice as many goods as he normally would have, and would be able to exchange those goods for US dollars once again.

The difference would be profit. This is a very simple explanation of a forex trading strategy, but gives the basics to the new speculator.Of course, when coming up with a forex trading strategy the trader should only use money that he or she can afford to loose. This is speculation, as opposed to investment. The chances for profit are real, and could come quick but if the market turns the opposite way than expected the trader could actually loose money.

A forex trading strategy can reap large profits, but if anyone tells you that all trades will result in profit, they haven’t studied the market as well as they should have and they are not correct. Still having a sound forex trading strategy for a competent businessman can be a profitable venture. It requires study of the markets, which takes time and is usually best accomplished by reading financial newsletters and using tools available on the Internet.

Getting the advice of a professional forex trading strategy specialist can also be a sound choice. Professionals have the time, education and skills and can generally help a trader come up with a forex trading strategy that will result in profit more often than one could do without their help.The most sound forex trading strategy options are generally used by large multinational corporations who are often able to make steady profits.

Watching what large corporations do who are involved in forex trading, looking for patterns they may have set, can help a trader to get the benefit of the very expensive expertise used by these large companies. Making watching of the large traders a part of a person’s education is definitely a good place to start a forex trading education. Identifying the state of the market, determining the time frame you are working in, and the currencies that have fluctuation and getting the advice of professionals through self study can be the wisest forex trading strategy option available.

Related Articles

The statistics on the US dollar are ghastly. Through the month of May, the world’s most actively traded currency plunged 547 pips or 6.5 percent on a traded weighted basis to its lowest level this year. With the momentum building, there was no shortage of reason to sell this currency.

The statistics on the US dollar are ghastly. Through the month of May, the world’s most actively traded currency plunged 547 pips or 6.5 percent on a traded weighted basis to its lowest level this year. With the momentum building, there was no shortage of reason to sell this currency. The 1Q GDP revisions confirmed the country’s worst six month period of economic activity in 51 years. Policy officials warned that a recovery could be pushed back into 2010. Rising national debt levels intensified speculation that the US sovereign debt rating was in jeopardy. And, once again, international calls to abandon the US dollar as a reserve currency were amplified. All of these are legitimate concerns; but none of them are new or immediate problems. This is what is important to remember heading into the coming week. Risk appetite will no doubt has its influence on the greenback; but a dense list of high-level event risk (from the US docket and abroad) will cast the battered currency in a more objective light as we see where the US really stands in the global scale between economic depression and recovery.

Referring to the dollar’s own calendar, fundamental traders will respond to a wide range of proven market movers. The scope of the list will cover nearly every facet of the US economy and will therefore better qualify speculation as to whether the there are signs of ‘green shoots.’ This is a misleading and perhaps overused term that allude to the beginning signs of growth. Like the rest of the world, the United States if far from growth; and what speculators benchmark now is the deceleration in the pace of contraction. Topping the list for potential impact (as it usually does) is the monthly non-farm payrolls report. The consensus from Bloomberg’s survey economists projects another 521,000 jobs lost through May. It is first interesting to note that the spread on expectations has grown to be relatively tight (forecasts range between a 450,000 and 600,000 drop). More important though is the pace of job losses. If this figure prints as expected, it would mark the second month that the rate of payroll reductions slowed and it would be an overall, significant improvement on January’s record breaking 741,000. As the leading indicator for economic health, a steady improvement of this caliber could single-handedly convert a bulk of the market to believers that the world’s largest economy is on track to recovery ahead of its major trade partners.

Nothing to scoff at itself, the rest of the data crossing the wires over the coming week will cover the health of the individual sectors in a little more detail. Consumers – whose spending accounts for 70 percent of the economy – will evaluated through personal income, spending and credit figures. If we are to expect a genuine economic recovery before the end of the year, we should see a turn in these figures relatively soon. From the business side of things, the ISM manufacturing and services sector surveys are due on Monday and Wednesday respectively. The outlook for factory activity has been negative for 15 months now and services seven – though the reversal since the end of 2008 has been relatively aggressive. Finally, the pending home sales figure will be a lagging indicator for the housing market, but consistent improvements from data in this group will eventually pan out to a true revival.

Alone, the round of US data will gauge how the American economy is performing compared to last month, last quarter and last year. However, for currency traders, the Forex market is a relative game in which the pace of US growth and returns must be set against its global counterparts to gauge the strength of the dollar. In this capacity, we must set the dollar against the backdrop of the major releases from other economies next week. The list of notables includes: the RBA, BoC, ECB and BoE rate decisions; Canadian 1Q GDP; Australia 1Q GDP; Swiss 1Q GDP; Canadian employment; and 1Q Japanese capital spending among others. – JK

Learn Forex Trading and Multiply Your Wealth

To many people that sounds amazing, and perhaps it is. It can be very profitable for investors and fortunes have been made by many. The incentive to learn forex trading is the oldest incentive by far, the incentive to make profit. If you learn forex trading you are learning how to make your money make more money for you, the goal of all investors.

If you choose to learn forex trading online you are not alone since thousands of people choose this method every year. If you learn forex trading online you have the benefit of choosing an instructor from almost anywhere in the world, or to choose multiple instructors.

When you learn forex trading in this fashion your virtual classmates could be from England, Hong Kong, Singapore, Paris, or any other exotic locale that you may have only read about in the past.

Obviously this diversity of culture and knowledge will be beneficial. During online chats and student discussions questions will be raised that you may not have thought of yourself, and you’ll be able to benefit by hearing the answers.

The ultimate goal of forex trading is to trade currency in a consistent manner that will result in profit. For instance, buying Euros with US dollars and then selling the Euros for more than you gave for them when the market changes.

This is the oldest rule of business, buy low and sell high. If you learn forex trading you’ll be able to do this on a scale you never would have thought possible, limited only by the amount of investment funds you have and by market conditions.

Trading characteristics

There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currencies instruments are traded. This implies that there is not a single exchange rate but rather a number of different rates (prices), depending on what bank or market maker is trading, and where it is. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs instantaneously. Due to London's dominance in the market, a particular currency's quoted price is usually the London market price. A joint venture of the Chicago Mercantile Exchange and Reuters, called Fxmarketspace opened in 2007 and aspired but failed to the role of a central market clearing mechanism.

The main trading center is London, but New York, Tokyo, Hong Kong and Singapore are all important centers as well. Banks throughout the world participate. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.

Fluctuations in exchange rates are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in gross domestic product (GDP) growth, inflation (purchasing power parity theory), interest rates (interest rate parity, Domestic Fisher effect, International Fisher effect), budget and trade deficits or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow.

Determinants of FX Rates

he following theories explain the fluctuations in FX rates in a floating exchange rate regime (In a fixed exchange rate regime, FX rates are decided by its government):

(a) International parity conditions viz; purchasing power parity, interest rate parity, Domestic Fisher effect, International Fisher effect. Though to some extent the above theories provide logical explanation for the fluctuations in exchange rates, yet these theories falter as they are based on challengeable assumptions [e.g., free flow of goods, services and capital] which seldom hold true in the real world.

(b) Balance of payments model (see exchange rate). This model, however, focuses largely on tradable goods and services, ignoring the increasing role of global capital flows. It failed to provide any explanation for continuous appreciation of dollar during 1980s and most part of 1990s in face of soaring US current account deficit.

(c) Asset market model (see exchange rate) views currencies as an important asset class for constructing investment portfolios. Assets prices are influenced mostly by people’s willingness to hold the existing quantities of assets, which in turn depends on their expectations on the future worth of these assets. The asset market model of exchange rate determination states that “the exchange rate between two currencies represents the price that just balances the relative supplies of, and demand for, assets denominated in those currencies.”

None of the models developed so far succeed to explain FX rates levels and volatility in the longer time frames. For shorter time frames (less than a few days) algorithm can be devised to predict prices. Large and small institutions and professional individual traders have made consistent profits from it. It is understood from above models that many macroeconomic factors affect the exchange rates and in the end currency prices are a result of dual forces of demand and supply. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange.

Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology.

Economic factors

These include: (a)economic policy, disseminated by government agencies and central banks, (b)economic conditions, generally revealed through economic reports, and other economic indicators.

1. Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government's central bank influences the supply and "cost" of money, which is reflected by the level of interest rates).
2. Economic conditions include:

   Government budget deficits or surpluses

   The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. The impact is reflected in the value of a country's currency.

   Balance of trade levels and trends

   The trade flow between countries illustrates the demand for goods and services, which in turn indicates demand for a country's currency to conduct trade. Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. For example, trade deficits may have a negative impact on a nation's currency.

   Inflation levels and trends

   Typically a currency will lose value if there is a high level of inflation in the country or if inflation levels are perceived to be rising [. This is because inflation erodes purchasing power, thus demand, for that particular currency. However, a currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest rates to combat rising inflation.

   Economic growth and health

   Reports such as GDP, employment levels, retail sales, capacity utilization and others, detail the levels of a country's economic growth and health. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be.

   Productivity of an economy

   Increasing productivity in an economy should positively influence the value of its currency. It affects are more prominent if the increase is in the traded sector [3].

Option

A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. The FX options market is the deepest, largest and most liquid market for options of any kind in the world.

Speculation

Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, economists including Milton Friedman have argued that speculators ultimately are a stabilizing influence on the market and perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do.^[16] Other economists such as Joseph Stiglitz consider this argument to be based more on politics and a free market philosophy than on economics.^[17]

Large hedge funds and other well capitalized "position traders" are the main professional speculators.

Currency speculation is considered a highly suspect activity in many countries.^[where?] While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation does not; according to this view, it is simply gambling that often interferes with economic policy. For example, in 1992, currency speculation forced the Central Bank of Sweden to raise interest rates for a few days to 500% per annum, and later to devalue the krona.^[18] Former Malaysian Prime Minister Mahathir Mohamad is one well known proponent of this view. He blamed the devaluation of the Malaysian ringgit in 1997 on George Soros and other speculators.

Gregory J. Millman reports on an opposing view, comparing speculators to "vigilantes" who simply help "enforce" international agreements and anticipate the effects of basic economic "laws" in order to profit.^[19]

In this view, countries may develop unsustainable financial bubbles or otherwise mishandle their national economies, and foreign exchange speculators allegedly made the inevitable collapse happen sooner. A relatively quick collapse might even be preferable to continued economic mishandling. Mahathir Mohamad and other critics of speculation are viewed as trying to deflect the blame from themselves for having caused the unsustainable economic conditions. Given that Malaysia recovered quickly after imposing currency controls directly against IMF advice, this view is open to doubt.

Exchange-Traded Fund

Exchange-traded funds (or ETFs) are open ended investment companies that can be traded at any time throughout the course of the day. Typically, ETFs try to replicate a stock market index such as the S&P 500 (e.g., SPY), but recently they are now replicating investments in the currency markets with the ETF increasing in value when the US Dollar weakens versus a specific currency, such as the Euro. Certain of these funds track the price movements of world currencies versus the US Dollar, and increase in value directly counter to the US Dollar, allowing for speculation in the US Dollar for US and US Dollar denominated investors and speculators.

Market size and liquidity

The foreign exchange market is unique because of

• its trading volumes,
• the extreme liquidity of the market,
• its geographical dispersion,
• its long trading hours: 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday),
• the variety of factors that affect exchange rates.
• the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
• the use of leverage

As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks. According to the Bank for International Settlements,^[2] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this. This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:

• $1.005 trillion in spot transactions
• $362 billion in outright forwards
• $1.714 trillion in foreign exchange swaps
• $129 billion estimated gaps in reporting

Of the $3.98 trillion daily global turnover, trading in London accounted for around $1.36 trillion, or 34.1% of the total, making London by far the global center for foreign exchange. In second and third places respectively, trading in New York accounted for 16.6%, and Tokyo accounted for 6.0%.^[4] In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.

Exchange-traded FX futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts.

Several other developed countries also permit the trading of FX derivative products (like currency futures and options on currency futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Most emerging countries do not permit FX derivative products on their exchanges in view of prevalent controls on the capital accounts. However, a few select emerging countries (e.g., Korea, South Africa, India—[1]; [2]) have already successfully experimented with the currency futures exchanges, despite having some controls on the capital account.

FX futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).

Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues have made it easier for retail traders to trade in the foreign exchange market. In 2006, retail traders constituted over 2% of the whole FX market volumes with an average daily trade volume of over US$50-60 billion (see retail trading platforms).^[6] Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 34.1% in April 2007. The ten most active traders account for almost 80% of trading volume, according to the 2008 Euromoney FX survey.^[3] These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203 on a retail broker. Minimum trading size for most deals is usually 100,000 units of base currency, which is a standard "lot".

These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100/1.2300 for transfers, or say 1.2000/1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e., 0.0003). Competition is greatly increased with larger transactions, and pip spreads shrink on the major pairs to as little as 1 to 2 pips.

Foreign exchange market

The foreign exchange market (currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. ^[1]FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.

Presently, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.^[2] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.^[3]

The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc., and the need for trading in such currencies.