Developing A Trading Plan - Pt 4

Testing a trading Plan

Before they begin in the market, some traders find it helpful to 'paper
trade' the market for a while. This involves taking 'hypothetical' positions
in the market and then monitoring these to see what the outcome will be.

Before doing any physical futures trading at all, the first move is to start
by paper trading. A trading plan must be able to be measured. E.g. "I'll
risk no more than 2% of my capital on any given trade". It can't say "I
won't use too much of my equity for margin."

Traders whose systems are more technical in nature will 'back test' their
system against historical market data to determine the success of the system
in that particular market. A trading system can be as simple as a few rules
or as complex as a Black box technical analysis package. The key is that the
system matches your personal trading style. You can either create a system
from scratch or buy a readymade package. Either way it is advisable to test
the system with dummy trades before doing the real thing. Some experts
recommend 10 years of back testing with historical data (black box systems)
where as others recommend a shorter time span for the testing of a simpler
system. It is very important to perform your own testing on any 'off the
shelf' systems, and not rely purely on the seller's recommendations.

While all of these techniques are beneficial, prospective traders need to be
aware that simulated trading - no matter what its form, does have its
pitfalls.

Experienced traders will often say that there is no substitute for having
real money in the market. Depending upon traders own discipline, the way
they react in this circumstance could be very different compared to when the
trade was purely hypothetical. In addition, while a market's past
performance can provide some general clues as to its price behavior, there
is no guarantee that this will be repeated in the future.

Individuality

Trading plans are individualistic, based on such factors as personal
experience, education, risk capital and tolerance toward risk. For this
reason, trading plans may differ greatly from one trader to another. A
trading plan may work better with some people than others. Consequently, you
must develop a trading plan that works best for you. Among other things,
this requires patience, rigid adherence to the rules that you establish,
meticulous record keeping of trading performance (which provides valuable
feedback) and an open mind to try new methods. There are no guarantees of
profitability in the world of futures investing, but the discipline of a
trading plan goes a long way toward making you a successful futures trader.

Now let's look at some of the
SAMPLE TRADING PLAN (GENERAL SUMMARY OF MARKET ACTION)

Trading Philosophy / Trading Psychology:

I believe that Financial Markets are 100% psychology driven.Price patterns
are a reflection of the collective psychology of a large number of
traders.Trading psychology also a major factor in my own trading. It is
identified as my trading state. Fear and Greed are powerful enemies to
profitable trading and I can overcome this by training my subconscious mind
to be focused on following a defined trading plan versus focusing on wins
and losses.I am a disciplined trader committed to trading only for profit
strictly adhering too my trading rules, plan and standard operating
procedures.My style of trading is aggressive with my preference to trade
directional, and pattern set ups. I will trade full time as a day trader and
also seek other trading opportunities especially dealing with Options.I will
not have a bias as to where the market may or may not head, I will react to
the price, patterns and my tools as they present themselves applying my
trading rules.I trade what I see… Not what I think!I understand that I
cannot control the market, I can control only myself. My trading state and
mindset is the key to the success of trading. I must be rested, fit, healthy
and mentally alert. Accepting the stress of trading by keeping focused,
calm, disciplined and not distracted is essential for being a professional
trader.Losses are acceptable, not desirable but I can minimize them with
compliance to the rules, especially avoiding impulse trades and never being
in a trade without a plan or a stop.Trading is a business and I am here for
the profit.

Golden Trading Rules:
Check for Stops and targets resting in the Market then update or remove
them.Look left for previous structure.Always Set a Stop Loss.
Always!Maintain Discipline.Avoid impulse trading.
Trade with a plan and stand by the rules.Identify, Predict, Decide and
Execute (IPDE).Do not enter a market within 15 minutes after a news
event.Get S.E.T. (Stop, Entry, Targets) before every trade. (Know where and
how to Exit…)If I lose my ISP then call my Broker immediately and go flat,
then work on the technical challenges to get back online.Keep it simple.

Money Management, Risk Reward and Financial Goals:
I will trade 4 contracts as a unit maximum for the S&P e-mini.I will trade 3
contracts as a unit maximum in the Russell e-mini.For every $5K that I add
to my account I can add a contract to a unit. If I reduce my account by $2K
then I will reduce the contract size.Commissions, fees, charting services,
continuing education and other business related costs are considered
essential to trading.Risk to Reward is preferred a 2 to 1 ratio, but waiting
for the set up and trading the rules is paramount and given the opportunity
this standard is a guideline. My goal is to successfully net 9 combined
points per week in the market.My desire is to train for the FOREX so that I
can diversify looking for the best opportunities as I see them.

Daily Routine
I will only trade on days when I am well rested, relaxed and not mentally
distracted by matters that will divert my focus. I will spend at least 15
minutes relaxing to music or a form of meditation after a good nights rest
before trading.Conduct a Pre-Market Analysis myself, perform a top-down
review of the major markets and develop a plan of the day. The trading day
is from 9:30 a.m. (EST) to 4:15 p.m. divided into a morning session, lunch
and afternoon session.I do not trade for the first hour on Mondays.I do not
enter any new trades the last half an hour of the market hours (1545 - 1615
EST).After I have met my goal or the market is closed I will log my journal
and then spend quality time with my family.At some point before the end of
the day I will revisit the S&P trading day and back test my plan and system.

Pre-Market Analysis

Understanding that 70% of the volatility occurs during the first 2 ½ hours
of trading, this step is very important. The goal here is to recognize
probable entry or exit points.
Check for - and note important reports, events, and or news releases.
Include in the plan of the day candidates and times for probable heightened
price volatility.Look at Daily chart with ATR, 60 min and 13 min charts. Was
there expansion or contraction?Annotate the previous days high and close
with a black line.Determine Market Bias. Where is the price relative to the
Daily Pivot (Above the Daily Pivot is bullish bias, below the daily pivot is
bearish bias)Note overnight support / resistance levels, double tops/bottoms
and trends.Locate and note significant Swing Points.Where are the dynamics /
stops?Calculate the previous days Average True Range (ATR).Review the cash,
$OEX Globex and the DAX markets.Note the %ATR reached up until this
point.Review the charts of the top 10 stocks in the S&P.Top down analysis -
is underlying (Weekly)
(Daily) trend up, down or sideways? Is current trend with the underlying
trend, or against the underlying trend?Create a Plan of the Day (POD) and
Trade what I see with the POD outlining probable entries and exits.

Dailly Record Keeping

Every trade made during the day should be entered on a "Daily Trade Ticket".

This will allow ease in reviewing previous trades, noting errors that may
have been made in entry or exit setups and an audit trail of winners and
losers. The daily results will be tabulated each night, after market
closure, and entered on the Weekly Summary Sheet.

About The Author: Jason Brumbalow COO The Trading Authority
http://www.thetradingauthority.com

We Should All Be Grateful To Day Traders

Day traders play an essential and often uppreciated role in our economy. And
do not most things and events in life come back to the subject of "money ".
Day traders allow the stock market to put a price on the companies that are
a constant, vital part of our lives. We know these companies. As they touch
our lives in many ways. They build our homes, produce our food, make our
clothing and build our cars. They broadcast our TV show we watch and pipe
the internet as well as telephone and cable service into our homes. They
provide jobs for our friends and families. As an integral part of our
economic cycle, these are companies that need capital to develop the
products that will improve that will improve the quality of our lives in the
years to come.

The stock market allows day traders to put a price on these companies every
second of the trading day. By actively trading, day traders provide the
liquidity that is the cornerstone of our markets. Without liquidity,
companies would not be able to raise the money they need to produce the
goods and provide the services that we demand. Without liquidity, investors
would not be able to commit capital. It is this capital that allows these
companies to grow and prosper in our economy. And it is the day trader who
plays a pivotal role in creating the markets that allow our economy to
flourish.

Day traders add immense depth and liquidity to the stock markets. Liquidity
enables any individual, institution or financial institution to rapidly sell
its stock for fair value and that is a direct consequence of the large
relative numbers of day traders providing active financial markets.
Liquidity does not just mean a rapid turnover: it means a rapid turnover at
fair value. It could be said that anyone could sell a Rolex watch on the
street for $ 25 dollars, but this would not constitute or represent a fair
price for the product and therefore could not be said to represent fair and
present value. Thus to blow out product at prices below fair and reasonable
value does not constitute true and trustworthy liquidity. Other products of
wealth such as Real Estate or large expensive boasts may sits for many
expensive years before buyers appear on the market that are willing to pay
fair value for the product to be liquidated into cash... On the other hand,
the stock market allows trader to place a value on capital investments and
more importantly affords investors and traders the opportunity to enter or
exit their equity positions efficiently in an effective manner. The economic
functions of the markets, coupled with unparalleled liquidity and a myriad
of constantly arising new opportunities, communication tools and ongoing
technological advances make the stock market the ultimate way to speculate
and as well provide a value function of the value of assets as well as a
quick means of liquidation and accumulation of vital capital

About The Author: Amy F. Goodmann Senior Financial Analyst Forex Forex Forex
Forex frxforex@yahoo.com http://www.substantialincomes.com
http://www.listmymanitobacottageonline.com
http://www.forexforexforexforex.com

How To Start Trading The Forex Market? (Part 8)

HOW TO predict the Future ?

by studying the Past (Technical Analysis):

1) The best traders don't discount one or the other but understand that
having an understanding how the fundamentals influence market sentiment
gives him/her an edge over those traders who don't.

2) In my opinion, TECHNICAL analysis is the easiest and most accurate way of
trading the FOREX market.

3) "The number's don't lie" - all available information and its impact on
the market, are already reflected in a currency's price.

4) Prices move in trends - the foreign exchange market is mostly composed of
trends and therefore a place where technical analysis can be very effective.

5) History repeats itself - over time, certain chart patterns become
consistent, predictable and very reliable. The question is SEEING them.

PRICES MOVE IN TRENDS

The traders who don't believe this obviously have no need to implement a
trading methodology on technical analysis. But, research has shown that
those who trade "with the trend", greatly improve their changes of making a
profitable trade.

Finding the prevailing trend will help you become aware of the overall
market direction and offer you better visibility,especially when
shorter-term movements tend to clutter the picture.

HOW does technical analysis help to determine what the trend is and HOW to
trade with then trend versus against it?

Even though, you learn you how to use and read various technical indicators
to identify a long- term trend, spot predictable chart patters and use
certain rules to enter and exit a high-probability trade, and even though a
ll this involves sound logic, parameters, methods, formulas, data, and
research, these technical indicators, by themselves, are not the Holy Grail
of FOREX trading.

It takes discipline and emotional control to stick with trading following
through the inevitable market ups and downs. Keep in mind, good technical
traders expect ups and downs.

Which technical indicators are the BEST?

NONE - technical indicators should simply be components of your overall
customized, personalized trading system, and not a stand alone system.
The objectives as a FOREX Technical Trader are:

1) To figure out the price action of the currency pair. Price is the main
concern. If the EUR/USD is at 1.2224 and goes to 1.2020, 1.1980, 1.1940- the
market is in a down trend.

Despite what every technical indicator might predict, if the trend is down,
stay with the trend. Indicators showing where price will go next or what it
should be doing are useless.

A trader should only be concerned with what the market is doing, not what
the market might do. The price tells you what the market is doing.

2) Always remember that technical indicators are only giving you
confirmations based on what the market is telling you. So listen to the
market and let it tell you which method, strategy or techniques you should
use.

About The Author: Veteran Trader Martin Maier is the Founder of
http://www.fenixcapitalmanagement.com .He is the developer of various
futures and commodities trading programs and has received many Trading
Awards.

Forex Trading: Do You Have It In You

Forex is short for Foreign Exchange, where money from one country is
exchanged for that of another or the simultaneous buying of one currency and
selling of another.

When one deals in forex trading the profit or loss, he incurs is the
increased or decreased value of an investment caused solely by currency
movements. For example, if an investor thought that the US dollar was weak,
he might purchase German Mark. The investor's, the real profit or loss could
then be in how the Mark moves against the US$.

Being the largest financial market in the world, the Forex market has a
volume of more than $1.5 trillion daily. Also the Forex market, unlike other
financial markets, has no permanent location, no central exchange and just
happens 'Over the Counter.' It operates through an electronic network of
large banks, central banks, currency speculators, multinational
corporations, governments and other financial markets and institutions.
Retail traders are individuals who are a small part of this market. They
participate indirectly through brokers or banks.

The foreign exchange market is unique because of its trading volume, the
extreme liquidity, the large number and variety of traders in the market,
its geographical dispersion, its long trading hours i.e. 24 hours a day and
a host of factors that affect exchange rates etc.

Currencies are traded against one another. Each pair of currencies are
traditionally noted as XXX/YYY, where YYY is the ISO 4217 international
three-letter code of the currency into which the price of one unit of XXX
currency is expressed. For example, EUR/USD is the price of the euro
expressed in US dollars, as in 1 euro = 1.2045 dollar.

73 % of the forex trading is done by 10 top international banks. These large
banks continually provide the market with both "bid or buy" and "ask or
sell" prices. The difference between the price at which a bank or broker
will sell and the price at which a broker will buy from a wholesale customer
is called the "spread". This spread is very less for actively traded pairs
of currencies, usually only 1-3 pips. One pip is the smallest unit of price
move used in forex trading. For example, if the currency pair EUR/USD is
currently trading at 1.4000 and then the exchange rate changes to 1.4010,
the pair did a 10 pips move. The pip is the smallest unit regardless of the
fractional representation of the currency exchange rate.
Thus, 1.3000 to 1.3010 is the same move in pips terms as 110.00 to 110.10
For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum
trading size for most deals is usually $1,000,000.

Whew! What a market!

About The Author: NamSing Then is a regular article contributor on many
topics. Visit his other websites at
http://www.forex-foryou.info/sitemap.html,
http://www.forex-foryou.info/forex-broker.html and
http://www.forex-foryou.info/forex-trader.html

How to Find a Successful Forex Trading System

How to Find a Successful Forex Trading System The Foreign Currency Exchange
Market, or more commonly known as the Forex market is the largest financial
market in the world. Over $2 Trillion dollars are traded on the Forex market
every day. Forex traders make money in the currency exchange market by
playing one currency against another. They play currency pairs and bet that
one currency will either increase or decrease in value and the other
currency (or cross currency) will go in the opposite direction.

As I mentioned, Forex traders trade currency pairs. For example a trader
might play the Euro against the US Dollar (EUR/USD pair). If the trader
thinks the EUR will increase in value over a certain period of time, the
trader will go "long" the EUR/USD pair. If the trader goes long this
currency pair, he/she is betting the EUR will "increase" in value against
the USD. If the trader is right, they make money. If they're wrong, then
they lose money. Successful traders always employ a good forex trading
strategy so they consistently profit from their trades.

There are two ways to play the Foreign Currency Exchange Market that all
experienced Forex traders use. One is called Fundamentals and the other is
called Technicals.
Fundamentals refer to news events that move the markets.
For example if a country increases interest rates, then most likely that
will cause the currency to increase in value. If a country releases poor
housing numbers then that could cause the currency of that country to
decrease in value.

The technical side of trading the Forex markets refers to using charts and
indicators. Price charts and other technical tools are used to determine a
possible trade.
Indicators like MACD, Stochastics, moving averages and more are just a few
of the tools in the technical traders toolbox. The best Forex traders use a
combination of both fundamental and technical trading. Great traders never
rely on just one side.

Some traders trade longer term and some trade short term. A long term trader
is considered a position trader. Position traders take a longer term
approach to trading the forex market. For example if one currency looks like
it could be bullish over the next few weeks or months, they may place a long
position trade and let it ride for weeks or months until they exit their
trades to take profits.

Traders who take a short term approach to trading are considered day traders
or intraday traders. These traders only have open trades for a short period
of time and most of these Forex traders open and close their trades in the
same day or within hours. Most technical traders don't like to have open
position around news time because some major news events can actually cause
a great technical trade to fail because of an unexpected news surprise.

No matter what style of trading you use, as long as you use a great forex
trading strategy and stick with the rules of those strategies, trading the
forex market can be a very profitable way to make a living. Not only is a
good forex trading strategy important but good money management plays a big
role as well. As long as you manage your winners and losers and set the
appropriate stop losses and profit targets, you will quickly find that
trading the Forex market can be a very profitable business.

----------------------------------------------------
Andrew Daigle is the owner, creator and author of many successful websites
including ForexBoost at http://www.ForexBoost.com , a Free Forex Training
Resource for the Novice and Advanced Forex trader.

Global Forex Trading - The Easy Way To Make Money

Global forex trading was founded in 1997 and is today one of the world's
leading providers when it comes to forex real time trading. Global forex
trading offer you the chance to deal in real time online currency trading
that is making millions of forex brokers rich each day.

Global forex trading serves over 100 countries, using its DealBrook FX2
software and 24 hour market access with one of the highest levels of
customer service available in the forex trading industry. With Global forex
trading forex brokers have access to pricing for more than 60 currency pair
and excellent analytical services from renowned experts. There are up to the
minute currency news bulletins and advanced forex charts available. Global
forex trading boasts that they provide the only forex trading platform that
is suitable for both beginners and professionals.

Forex Trading Advantages

The forex trading market is open 24 hours a day and is today the most liquid
market in the world. With forex and the available leverage strategy you can
use 100 to 1 leverage which in turn reduces the need for large amounts of
capital to be placed in your account. Forex trading is also commission free
and trading is available on more than 60 currencies worldwide.
Another advantage of forex trading is of course the fact that it is global
and there are not restrictions placed on shorting which means that you can
enjoy your profit opportunities no matter what the market condition.

Prior to reading this information you may have assumed that forex trading
was only available for large investors but thanks to Global forex trading
smaller transactions are now available which allows all traders to take part
giving everyone the opportunity to profit from forex trading. Don't you
think it's time you started profiting? Well, it is. Start forexing and have
fun doing it.

About The Author: Our mission is to gather all Forex info on one place. Find
it only on http://www.leandernet.com/Forex/Online_forex_trading.php. All
about forex trading on LeanderNet - http://www.leandernet.com

An Introduction To Day Trading

Many people often get confused by the financial terms such as currency,
forex exchange, trading etc. It's a big complex financial world and one of
the new trading concepts is day trading.

Day trading in its simplest term means buying and selling securities, stock
and other financial investment within a single trading day. It covers a wide
variety of financial products such as stocks, currencies, forex, equity
index, futures and commodities.

The financial products that are brought are only held with a trading day and
must be sold at the end of a trading day

Due to the short time period in which to buy and sell stocks, day trading is
considered risky. If you are interested in day trading, be prepared to have
sufficient capital. You need to purchase at least 1000 shares of a stock. Be
prepared for this capital to be expendable.

Although day trading is risky, it does have big rewards if you know how to
play in this game. Many day traders never allow themselves to get emotional
with any one stock. They should know when to cut their losses when the need
arises as well as able to analyze the current market trend particularly in
the short term.

One advantage of day trading is that the intraday margin is 50 to 1. That's
means you are allowed to trade up to 50 times your initial capital.

So what if you do not have the necessary capital to invest in day trading.
Thankfully, you could try day trading currencies.
Trading currencies requires less capital. You only need a couple of hundred
dollars to be able to open a forex mini account.

One major disadvantage of day trading is the stock market is only open for
about 8 hours each day. However for currency trading, the forex market is
open 24/7. That means you can trade just about any time of the day.

Another advantage of day trading currencies is that most day traders get an
intraday margin of 4. That means with the same capital, you can trade up to
4 times your capital. For example, if you have $10,000 as capital, you can
trade up to $40,000.
This gives you more leverage if you decide to buy higher price currencies.

Day trading currrencies are also easier to monitor and predict compared to
stocks as there are less of them and the factors influencing global forex
market are lesser

In day trading, you can lose big as well as win big all in a single day so I
would not recommend anyone to take up day trading until you have sufficient
experience and knowledge in the stock or forex markets. Wise and quick
decision making is needed as well as the usual stock research analysis,
market analysis etc.

About The Author: Ricky Lim runs a day trading guide site.
Visit his site today at
http://daytrading.onlinetradingpedia.com for more info on how day trading
works and day trading training software.

Learning The Basics At A Forex Seminar

The Forex seminar is an essential commodity to the novice trader and the
experienced professional. Seminars of note are hosted by professionals
within the Forex market. Whether these experts are themselves investors or
traders, or whether they are analysts or forecasters they all add value to
the knowledge of attendees.

In fact, gaining insight from as many groups of people could prove to be the
decisive factor in the success of any trader.
Analysts can offer well rounded knowledge that is based almost purely on
fact whereas traders can give excellent advice based on their own first hand
experience of Forex trading.

First time traders may find some of the more technical seminars to be
daunting to say the least. Seminars have been established that cater solely
to beginners and are presented in such a way that novices will gain a lot of
information from every step of the program.

Coversely, a Forex seminar designed for experienced traders will be more
likely to discuss impending fundamental news or new patterns that have been
discovered during technical analysis. Again, this is all excellent
information, but a little premature for the inexperienced Forex trader.
Traders should ensure they utilize the right seminars to get real value.

Webinars are the latest addition to the Forex education arena.
They are basically seminars hosted on the Internet. These are generally
recorded to be played back at will by visitors to the website. While these
may not present the usual question and answer sessions they do still impart
news, information and resources upon the visitor.

Seminars are also usually broken down further than by technical experience
or trading level. There will often be a separate Forex seminar for the
technical analysts and further seminars for fundamental analysts and
intermarket analysts. Traders often do choose to buck their own trend by
visiting seminars they wouldn't usually consider relevant to themselves.
This provides them with information that may prove beneficial and that they
would not have otherwise accessed.

As well as covering basic topics on Forex trading, seminars also help to
identify the important aspects of data. This is true of fundamental and
technical seminars. They will also teach traders that the actual result of
certain fundamentals on markets are not as important as the perception that
the market will take from that particular item. That is, data might be
released that will mathematically see the price of the USD increase in the
short term, however, if traders see that it will decrease over the long term
the market may still predominantly lean towards the falling dollar. As a
trader it is imperative to spot this kind of information.

Forex Trader Education, at http://www.forextradereducation.com,
provides a valuable resource of information on many aspects of Forex
trading. A lot of the content will have been covered in a Forex seminar in
the past but the theory receives much more attention on the Forex Trader
Education site than it did previously. This attention can help traders to
determine how relevant the information really is.

About The Author: http://www.ForexTraderEducation.com is dedicated to
helping traders with Forex Seminar as well as futures and options about
trading and important concepts.

All About Forex - What You Need To Know

In order to succeed successfully in forex trading you need to know what the
purpose of trading forex is. Forex trading as you know is the trading of
online currency and the key to success is to buy low and sell high just as
with any other market. You task as a forex trader is to try to determine the
trend of the particular currency you are looking to either buy or sell and
to utilise the forex trading strategies to ensure that a profit is made.

Now that you know the purpose of forex trading the next step in knowing all
about forex is to understand the codes, definitions and numbers used when
trading. All currencies used in forex trading are assigned a three letter
code. An example of this is the US dollar which is USD or the Euro EUR.
Online currency trading is done in combinations that are known as a cross
and these are represented by 6 letter words with the more expensive currency
coming first. An example of this is GBPUSD which will show you how many US
Dollar you will need to pay for one British pound. These rates are shown as
five digit numbers for example GPBUSD = 1.6262 which means that 1 British
pound is worth 1.6262 US dollars. When the rate changes the change will be
displayed in bold, eg GPBUSD = 1.6264 which will mean that the rate has
moved by 2 points. Knowing this is the key to successful forex trading and
your key to profit.

When you enter the forex trading market you will enter as a buyer or a
seller of a particular currency. If you are a seller you price is known as
the ASK price and the buyers price is known as the BID. You can only buy
currency from a seller with an asking price the same as the BID price.

These are the main beginner's points to note when it comes to forex trading
and knowing what the purpose of trading forex is and knowing all about forex
before you enter into the market can make a big difference when it comes to
your profits.

About The Author: We have made the most comprehensive research on Forex
trading. Check it out on
http://www.leandernet.com/Forex/Online_forex_trading.php. All about Forex on
http://www.leandernet.com

Finding The Most Effective Forex Trading System

The Forex trading system comes in many different guises ranging from the
genuinely useful to the appallingly useless. As well as the genuine but
still profitless systems that exists there are also the equally common scams
from people trying to earn money for providing no valuable service. Traders
who are interested in finding a profitable system will have to do their
homework.

Systems are only as valuable as their results. Traders should never purchase
any system or software, for that matter, that doesn't show previous results
or offer a reasonable trial period to paper trade the results. Almost all
genuine systems will provide some sort of credentials about the service on
offer because they want to persuade traders to purchase from them. Check the
website of the system in question for historical results.

As well as looking at the results themselves traders should pay particular
attention to the validity of the results. By checking some of the results
against the criteria of the system it is possible to verify the selections
easily and quickly. In the long run, this can save a lot of heartache. A
failed system won't necessarily lose an investor the money they spend on the
system itself. Any money invested on the back of a bad system is also lost
money.

A Forex trading system should give some idea as to how the selections are
determined. While some secrecy is obviously required to ensure the creator
retains the integrity of their system, there should be some information
pertaining to the selection criteria used. An astute trader will look at
this information and either be able to form their own decision on whether it
sounds like a viable system or at least research the theories. It is
unlikely that any system is so unique that no supporting evidence can be
found.

Buyers should never rely on the testimonials that appear on websites. It
doesn't take much to write these testimonials and without some kind of
verification this means there is absolutely no guarantee they weren't
written by the webmaster themselves.

As well as the Forex trading system, there are also software packages and
forecasts available. The same principles apply to these as to the trading
systems. The most sensible thing a trader can do before taking the plunge
and paying hundreds of dollars for any system or software package is to
conduct thorough research into the theories, the selections, the results and
the service itself.

If somebody has already been stung by a particular scam then there is likely
to be information all over the Internet.
Similarly, a proven Forex trading system is also likely to have generated
some interest from numerous parties.

The Forex Trader Education website has its own software called VantagePoint.
VantagePoint has fully documented results and also offers free forecasts to
anyone interested in purchasing the software. This gives traders the
opportunity to conduct their research and to even paper trade the forecast
and determine the effectiveness of the software. Visit
http://www.forextradereducation.com for more information and to receive your
free Forex forecasts.

About The Author: http://www.forextradereducation.com is dedicated to
helping traders with Forex Trading System as well as futures and options
about trading and important concepts.

How To Pick A Good Forex Broker

If you are doing forex trading, then you know the importance of a good forex
broker. This is especially true if you are just starting out and do not have
a lot of experience. A good forex trader will work with you and provide the
information and tips you need to make the best trading.

Even though your forex broker will be offering you tips and advice, they do
not make the final decision to buy or sell. You do. Therefore it is
important you know what you want and make your own decision. It is ok to ask
a lot of newbie forex questions to your broker if you are new to forex
trading but make your own mind and accept the results.

As you can see, a good forex broker is important as you will be seeking
his/her advice and you certainly want someone who's the best in the forex
business. So how do you go about choosing one? Here are some tips to help
you

1. Registered Forex Broker.

It is important that your forex broker is a registered member of a financial
institution. Ask for his/her credentials. You want the assurance that he/she
will be able to act on your decision and access the funds needed.

Check with the NFA (National Futures Association) if you doubt your forex
broker is registered.

2. On-call Broker.

Your forex broker should remain in contact at all times.
Whether it be via cell phone, email, instant messaging etc.
Your broker should know forex trading is a 24 hour standby job and
fluctuations in trading can happen quite quickly. Therefore it is important
you can get hold of your forex broker when you need him/her

3. Experienced Broker.

Before you select a forex broker, ask for his/her references.
Call those references and ask them about their opinions on the forex trader.
By doing this, you can assert whether the forex broker is experienced and
whether he/she is able to execute a trade effectively and successfully.

It would be best to contact more than one references to get an accurate
feedback on the forex broker.

4. Cost of Broker

Many people when looking for a forex broker are overly concerned about the
cost. Usually more experienced forex brokers as well as those with a good
track record of successful trades demand a higher price.

My recommendation is to select a few forex brokers that you are comfortable
with, have credentials, have a proven good track record. Once you have done
that, then you can talk about cost.

Sometimes the price for a forex broker with the above qualifications can be
high, however you need to keep in mind, they can help you make more money in
the long run and offset the cost.

About The Author: Ricky runs an forex trading site at
http://forextrading.onlinetradingpedia.com Visit his site today for more
forex trading tips as well as other investing topics such stock investing,
day trading etc

E Currency Exchange, DXinOne Scam ??

I wasn't going to weigh in the scam articles and angles regarding E Currency
Exchange, but I felt I had to because of a couple of emails I received.

One was from a rather frustrated gentleman regarding the DXinOne system that
is promoted and utilized via the many E-Currency Exchange learning programs
on-line. This guy is certain that the DX system is a scam and that the well
known e-currency guru with whom he signed on to learn the system, basically
jerked him around. I won't use the term he used.... I really felt this guy's
frustration, and completely understand it! Many of us just want to find what
works, build it, and make some money. The money is, after all, out there to
be made! And, E-Currency exchanging makes sense; as the E-Commerce industry
is burgeoning globally, so goes E-Currency trading, right?

Another gentleman sent this email to me:

"Sweetie, I have seen this before and also read an article
that it was a SCAM! Why do you portray it to be legal? I
will be praying for you."

While I don't believe this man is genuinely concerned for me, I do get the
sense that he got caught up in all of the back and forth hype about
E-Currency. All you have to do is just Google E Currency and jump into the
rabbit hole.
There's a never ending stream of information, much of it contradictory. You
can read one review, believe it's a scam and walk away satisfied that you
didn't buy in. Or, you can read another, feel positive and buy into it.

The problem with some of these "Learn E-Currency Exchange"
opportunities is that they present the trading of E-Currencies as an easy,
quick "investment" opportunity, a sure thing. and the more you can invest,
the more you can make. But the DX system claims to be a "credit and storage
system" not an "investment scheme" - their words. The money is always in
your account and the DX simply uses it in the daily trading of E-Currencies.
The only profits the DX makes is on the premiums they charge. With the after
effect of the recent DX internal changes, premiums are now taken up front
and newcomers don't see profits right away, like you did prior to these
changes. Still, you are "investing"
your hard earned dollars into a profit building portfolio.
Otherwise, why would you do it???

DX initially grew too quickly and has had to re-organize from being drained
by quick-profit seekers who found holes in the system and benefited
financially. DX is going through growing pains and would buckle under if
they didn't re-organize. They have had to fill in the holes in order to grow
and prosper as an organization.

DX knows they have a good thing going and are growing and shifting
accordingly. The many get-rich-quick people who abused the system will have
been weeded out and moved on.
This is actually one of the many benefits of the re-organization. DX needed
to clean up and weed out. This creates a healthier organization.

It's important to view E-Currency Exchange on the whole as a long term
opportunity. As with all trading systems, there are profit-up days and
profits-down days. The DX system's internal reorganization will make them
even stronger in the long haul. Those who honestly teach and inform about
the system will have evolved with the changes and instruct accordingly.
Those looking for a quick buck will have moved on. DX Synergy is simply
another viable way in which to build a profitable portfolio over time, while
participating in the on-going E-Currency trend.

When it's your money, it's always important to do your own due diligence in
order to make informed decisions. Decide for yourself if E Currency Exchange
is right for you. But make sure you're not getting caught up in the hype!

----------------------------------------------------
The Heather Wolf Resource Network wants you to make informed decisions that
save you time and money! Heather Wolf prowls around for viable, no-nonsense
on line opportunities.
http://www.heatherwolfnetwork.blogspot.com ,
http://www.ecurrencyprofitsystem.com

Online Forex Trading - Beginners Guide

When it comes to forex trading, understanding the terminology and the forex
trading strategies before you begin is vital.
There are many web based companies that provide online forex trading
tutorials that revolve around real time forex trading.
Using a forex tutorial will give you the beginner knowledge you need to take
part in trading forex.

After you have completed your forex tutorial there are some basic forex
trading tips that all beginners will find useful.
The most important thing to remember when trading forex and the most
important forex trading strategy is to remember to always place stop loss
orders. Using this strategy in your online forex trading will help to
prevent and limit your losses.

The next important step for online forex trading is to take profit orders at
the same time as placing your stop loss orders. This is done by using the
OCO order function that is available with most online forex trading systems.
Take profit orders work on the same basis as the stop loss orders and help
to eliminate the risk of locking into a profit too early.

Another beginner's tip is to use a positive risk/reward ratio.
This means that you should choose the amount you are willing to make on your
forex trade beforehand and it should be more than or equal to the amount
that you are willing to loose. This tip is essential if you want to be
successful in your forex trading.

It is important for any forex trading beginner to note that successful
online forex trading takes patience and is a long term investment. It takes
controlled forex trading along with discipline and patience to make your
forex trading profitable.
Continued research and forex tutorials and guides will help you to learn
more and remember as with all successful ventures; knowledge equals power.

About The Author: We have made the most comprehensive Forex trading
strategies research. Find it only on
http://www.leandernet.com/Forex/Online_forex_trading.php . All about forex
trading on http://www.leandernet.com

Expect Success With Your FOREX Software

Advances in foreign exchange technology have dramatically influenced various
trends in the market. And with the arrival of improved computer systems,
real-time streaming and better business service, currency trading is
increasing at a rapidly growing pace.Multinational corporations, global
money changers and an increase in private speculators give evidence that
involvement in foreign exchange is not what it was even a decade ago.

FOREX is a twenty-four hour market that allows you to trade any time of the
day or week and anywhere in the world. This obviously contributes to the
booming effect FOREX has had on the market. To attract traders and gain
their trust, FOREX websites must be reputable and abide by Foreign Exchange
regulations. FOREX utilizes foreign exchange trading software that assures
compliance. As such, dreadful information is uncovered to avoid any
discrepancies.

Using software for foreign currency trading should not be overlooked. This
software plays an important role in building up the trading endeavor and
establishes trust in a website. A foreign exchange website must have
everything necessary to obtain the information that traders are searching.
The information must be accurate and factual.

With foreign exchange software, information is always accessible. There is
no need for a trader to be burdened down when vital information is needed.
No matter what information needs to be discovered, the information will be
right at the searcher's fingertips. When visitors find an exchange website
to have a solid reputation, is informative with services paramount, they
will stay with you.

Traffic is highly important to your venture. The more visitors you have, the
better the possibility of trading and therefore you will have a greater
gain. There are numerous search engines available on them internet. Make
sure you know how to get visitors to the site by using significant key words
and tags.

FOREX can be a venture that is very rewarding and exciting.
Your
success depends a great deal on planning and strategy. Among the best
strategies is to obtain reliable currency trading software. This can be your
venture's leading edge for success.

About The Author: Geoff Spencer is a staff writer at
http://www.investors-journal.com and is an occasional
contributor to several other websites, including
http://www.onlinebusinessgazette.com.

Choosing A Forex Trading System

Forex market or Foreign Currency Exchange market is one of the biggest
trading market in the world with over USD 1.3 Trillion traded in a day. It
is drawing attention ever since it is open to Online trading. Forex trading
can be very profitable if you take your time to do a proper research,
understanding various options and choose a system that works for you. The
most used Forex trading system may not be the most suitable for your needs.

There are many different kinds of Forex Trading Systems and you need to know
a few facts as mentioned below, before choosing and funding a system.

1. Testimonials: Is there anyone out there who is trying to sell a system
and show you testimonials from the people who actually didn't like the
system? Highly unlikely. You should do proper research before indulging into
a system that is completely new to you.

2. Impression: Do not be over impressed from high percentage of winning
forex trades because a 90-95% winning trades with with average value $10
gets you $900. If you have 10% losing trade and unfortunately average losing
trade is $200, then your account is reduced by $2000. This is an explanation
that people often tend to ignore while doing Forex Trading or any trading in
general.

3. Profit: Do you want to work with a Forex Trading system that breaks even?
Why? If you keep the money in your home, you will still break even, then why
take all the hassles of setting up an Forex Trading account and do all the
work. Really speaking, you should always do some research on how profitable
a particular trading system is?

4. Drawdown: The maximum drawdown of trading system is defined as the
greatest peak-to-valley drawdown in a trading system's equity. Maximum
drawdown gives us a measure of the survivability of the trading system.

5. Time to profit: The actual time it takes to achieve the results with a
particular trading system. You should plan to have a long and profitable
relationship with your trading system.

Try to use a trading system that let you open a Demo account so that you can
practice and learn about Forex Trading without risking any money.

About The Author: Girish Jaju is an affiliate marketer and webmaster of
http://www.forexcurrencytrading.name/ and http://www.forexdude.com/ blog.

What Is Forex Trading?

Forex Trading, also technically referred to as Foreign Exchange Trading, is
the financial market of the world. Forex consist of selling and buying
currencies on the market. Forex generally used by businesses and
entrepreneurs looking to conduct international business and transactions.

To give you an example of Forex Trading, let us say that the United States
is selling products to Canada. Canada would have to convert their money, the
Canadian Dollar (CAD) into the United States Dollar (USD) to perform the
transaction. So, essentially, what is happening is that Canada is buying USD
currency with CAD currency for the conversion.

How can I trade in the Forex Market?

The Forex Trading market, works very similar to our stock market, with the
exception that it deals with currencies. In order to trade on the Forex
market, you must have a broker.
Just like with the stock market, not just anyone can enter the market for
trade. The Forex Market does differ from the stock market in that there is
not a centralized exchange or clearinghouse to trade from. You must have a
Forex Broker in order to take part in the trading.

How can I make a Profit?

To make a profit you will need to obtain a Forex broker specialized in the
area. In some cases, in less serious trading cases, some people will use
their local bank to handle the trade. However, if you are looking to hedge
risks, convert receipts or profit at all in the Forex market, the first
thing you need is a broker.

It takes a large amount of experience to begin earning large profits in
Forex trading. Some people enjoy a thirty-percent return on their
investments each month. To do this you must learn everything you can about
Forex trading and speak with your broker about investment strategies. The
internet can be a valuable tool in this area as well, there are many online
Forex trading courses where you can learn just what it takes to become a
competitive, profitable investor.

About The Author: Van Whitsett has published a number of articles, both
online and off. See http://forextradingservices.info/ for more information
about this topic.

Jedi Mind Games For The Forex

"Your worst opponent is yourself Young Jedi"

When it comes to marketing on the forex exchange, victory is a matter of the
mind instead than mind atop matter. Any dealer wh's been in the game for any
extent of time shall recount you that psychology has a lot to do with both
your own execution on the trading floor and with the way that the exchange
is progressing. Playing a superior hand depends on understanding your own
shrewdness and comprehending the way that psychology moves the exchange.

Studying the psychology of the exchange is not anything new. It doesn't
require a genius to be aware that any arena that rides and falls on
decisions made by folks is bound to be thoroughly bested by the minds of
folks. Few individuals take into account all the different levels of
intellect games that galvanize the exchange, albeit. If you keep your eye on
the way that psychology influences others including the mass psychology of
the folks that use the currency on a regular period but overlook to
comprehend what moves you, you're eventually to end up hurting your own
stance. The superior forex coaches shall relate you that before you can
genuinely become a well-heeled dealer, you have to grasp yourself and the
triggers that control you. Understanding those will aid you suppress them or
use them. Are you saying Huh? about now? Believe me, I recognize. I felt the
selfsame way the first time that some person tried to elucidate how the mind
games we frolic with ourselves control the trades and decisions that we
contrive.
Let me split it down into other teachable pieces for you.

Anything involving winning or losing big sums of currency becomes
emotionally electrifying.

All precise. You've heard that playing the exchange is a mathematical sport.
Plug in the fitting numbers, devise the perfect calculations and you'll
advance out ahead. So why is it that so innumerable traders end up on the
ungainful end of the exchange? After all, every tom has entry to the same
numbers, the same information, the same rumour ! if it's math, there's just
one precise answer, isn't it so?

The rejoinder lies in diagnosis. The numbers don't lie, but your intellect
does. Your hopes and fears can contrive you see things that simply aren't
there. When you sink in a currency, you're investing more than just savings
you forge an emotional investment.

Being accurate becomes significant. Being wrong doesn't simply cost you
currency when you let yourself be ruled by your feelings it costs you
self-esteem. Why else would you let a loser fly in the hope that it shall
leap back? It's that minuscule object inside your head that says, I KNOW I'm
correct on this, dammit!

Bottom line: You can't push feelings out of the scenario, but you can
discover not to let them govern your decisions.

To many folks, being correct is more significant than making revenues.
Here's the deal. The way to rake in real currency in the forex exchange is
to cut your losses short and let your winners ride.
In order to do that, you must GOT to accept that various of your trades are
going to fail, cut them free and advance on to supplemental trade. You've
got to allow that picking a lemon is NOT an implication of your
competence-worth, it's not a image on who you are. It's merely a loss, and
the superior way to deal with it is to refrain losing currency by moving on
and really progress on. Moving on implies you don't keep a running aggregate
of how numerous losses you've had that's the way to paralyze yourself. This
brings us to the following mark:

Profitless traders see loss as failure. Victorious traders see loss as
erudition.
Not too long ago, my twelve year old son told me that previously Thomas
Edison conjured a working light bulb, he crafted 100 light bulbs that didn't
function. But he didn't surrender because he knew that creating a birthing
light from current was feasible. He stood by in his complete concept so when
one pattern didn't work, he merely knew that he'd eliminated one
plausibility. Keep skipping possibilities long enough, and you'll ultimately
detect the possibility that works.

Victorious traders see loss in the same way. They haven'
succumbed, they've mastered something novel about the manner that they and
the exchange functions.

Excelling dealers can look at the overall tapestry while playing in the
small field.
Suppose I told you that previously, I launched 70 trades that lost big time,
and 30 that brouight me the rocks. In the eyes of folks, that would make me
a pathetic dealer. I'm failing 70% of the time.

Now what if I shared with you that my average loss was $10000, yet my
average gain on a winning trade was $100,000? That means that I failed
$70,000 on exchange yet I gaimed $250,000, making my final bottom line
$170,000.

Yes, it is a pretty clear numbers game but how do you keep on playing when
you are failing in trade after trade after trade?
Merely remember that one trade does not make or break a dealer.
Focus on the exchange on the table, thenfollow the triggers that you've set
up but clarify to yourself by what really matters :
the overall record and bottomline profit.

About The Author: Mine my Mind Now:
http://www.exceedglobal.co.uk

What Is Day Trading?

This guide is aimed at beginners in the financial trading industry. Day
trading is the buying and selling of a security within the single or the
same day. Day trading can occur in any market place in the world but most
common in the stock market and FOREX.

1. Don't Believe The Hype

First and foremost, don't believe the hype surrounding day trading. If it
were that easy to make quick cash with no risks attached, wouldn't everyone
be doing it? The sharp reality is that while lots of day traders do make
lots of money, the reason why they are able to do it is because of years of
experience and a constant finger on the pulse of the market trends. The
complete beginner is unlikely to make money without great amounts of aid.

2. Manage Your Money

In order to sucessfully manage a day trade, it is recommended that you
consult with a financial professional - at least, for the first month or so.
Keep in mind that some people are immovably convinced that day trading
demands strategies for making even a single dollar. Most day traders are
well educated and funded. They use high amounts of leverage and short term
trading strategies to capitalize on price changes in highly liquidated
stocks and currencies. Also, because there are so many traders, you can
always be sure that there will be a buyer for whatever you are selling.

3. Trading Tips

- Expect to lose money if you don't have the proper training
- Have a lot of capital at the ready
- Only trade with money you can afford to lose
- Limit your losses as much as possible
- Use high tech tools such as software

4. A Turbulent Market

True, there is a lot of money out there to be had, but that's also the
problem. There is a reason why all that money is out there - people are
losing it. You must be ready for the consequences that can affect you
emotionally and financially.
Even as it is becoming hugely popular among inexperienced traders, consider
knowledge and preparation your two best friends.

About The Author: For more great day trading related articles and resources
check out http://makemoneyinformer.info

How To Make A Well-balanced Investment Portfolio

Getting a good investment portfolio is something that everyone needs who
does any kind of investing. Having a good spread of investments is also a
good idea, in the event that one area of investments takes a loss. Here are
some tips about how to get an investment portfolio that is well balanced and
should enable you to weather most storms.

By investing in only one area of the market, you are more apt to run into a
larger loss if that part of the market does poorly during a given time
period. On the other hand, if you diversify enough, other profitable areas
can make up for poor growth in one area. This allows you to continue doing
at least reasonably well in some areas - in other words - all is not lost.

Diversify Into More Than Type of Market

A balanced portfolio will not resort only to trading in various types of
stocks, but should also include some items that are more financially sound,
even though they may not yield such a high increase. To your stock trading,
you need to include bonds, trust funds, and possibly even property. The
principal, simply stated, is that you do not want to risk losing everything.
Though the interest rates are not as good on the bonds, yet they are stable
and will provide a good hedge against loss - even in a rather economically
strapped time.
Trust funds do even better with interest than bonds, they are much more
stable than stock in general, but they also can have their bad days, too.

A general rule in investing in stock is that you should never invest more
than you want or can afford to lose. The reason is obvious - you could lose
it all. But by taking a percentage of your investments and dividing them up
between these various investment instruments, you should be able to gain a
much more stable portfolio, and still end up with some for retirement.

Market Transactions By Sectors

The market is generally made up of a number of sectors - each one consisting
of several groups of industries, and each one with their own share of
stability and instability. While one sector, such as telecommunications, may
not be doing as well as it once was, other areas may really be thriving.
Only by a constant watching of the market will you be able to discern these
developments, and know which one is worth investing in. A safer way to pick
stocks is to be careful what advice you receive (the best being those who
have successfully traded for years), as well as the means used to determine
which ones are "good investments."

Instead of just going out and buying the stock of a particular company, it
is a real good idea to use stock options. These "tickets" (my word for a
call option, or a put option) allow you to be ready to make stock purchases
or sales, depending on what you want to do. They can save you a considerable
amount of money and give you a window to see what may transpire with the
company you are looking at. For instance, if you buy a "ticket," and it
costs you $400, you have a window of opportunity that will give you a little
time to make your transaction. It is not an actual commitment to do so -
just a readiness. Instead of just going and buying that $5,000 worth of
stock, and possibly losing thousands, by using this ticket method, you may
only lose the cost of the ticket.

Learn the Options Available To You

When you want to create a really stable portfolio, it is a real good idea to
make a strong effort to learn all you can about the various techniques of
investing, understanding the stock market and mutual funds, as well as
products that you can successfully invest in. You may even want to invest in
foreign properties, such as in Costa Rica, or consider the FOREX (foreign
exchange) market.

About The Author: Joe Kenny writes for the UK personal finance sites
http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk

Forex Online Currency Trading

FOREX is an international online currency exchange that was established in
1971. It is now the premier foreign currency exchange market in the world,
with an average daily trading volume reaching as high as one and a half
trillion. Three types of traders make use of FOREX-banks, individuals, and
corporations. When they have need to exchange currency online, FOREX is the
number one place to do it.

There are two basic reasons to do your online currency trading with FOREX.
First and foremost, FOREX trading is done to make a profit. Depending on
the market, a bank, corporation, or individual can make a windfall profit
through FOREX trading. Another reason to do currency trading is to get into
a secured position by eliminating trading risks arising from foreign
exchange rate movement.
In other words, FOREX online trading can help a bank, corporation, or
individual to weather changes in foreign exchange rates by already having
the foreign currency they need on hand.

FOREX is unique in terms of trading exchanges. Rather than the typical
exchange like Wall Street or the Tokyo Exchange, FOREX is an entirely
digital foreign currency exchange system. The rate of foreign exchange
changes so quickly that traders must be able to react to market shifts
within seconds. Online FOREX trading makes this possible by eliminating the
classic stock broker. Rather than trading telephone calls and trying to
catch a great deal by shouting and waving papers, FOREX trading is
accomplished with a touch of a button on the computer.

The ease of online FOREX trading appeals to many, both businesses and
individuals alike. All the information one needs to get started with FOREX
trading is available online. FOREX exchange rates are continually updated
on many websites. It is simple to buy one currency when it is low and sell
it when it is high. However, what goes up can also come down, and new
traders on the FOREX online markets must be prepared for losses. Still,
despite the risks, more and more people are participating in online FOREX
trading every day.

Keeping updated with the world market is the best way to prevent losses with
currency trading. Learning which countries are experiencing economic growth
or recession is essential to make the best currency trading decisions. It
is always good to invest in currency from nations who are experiencing
growth. Likewise, avoiding countries that are historically unstable or are
experiencing war or international economic sanctions is only wise. FOREX
online trading is not for everyone, but with some knowledge and skill, it
can be very lucrative.

----------------------------------------------------
David O'Connor Researches the best online opportunities so he can help
people get started in online marketing.
http://forex.future-wealth.net. The need to be successful.
This is the bottom line for us all.
http://www.relaxwithmoney.com

Forex Trading - The Basics

Is forex trading for you? Well, the fairest way to answer that is by
explaining the basics of foreign exchange trading to you.

First things first, the Forex is a market on which the currency of one
country is "compared" to the currency of another country in order to
determine a value. This value is what you will be trading.

The forex, or foreign exchange market is open and availalbe for trading 24
hours a day, 5 days a week. This gives the currency trading markets a
distinct advantage over all other financial markets available to investors.

Also, the size of the forex absolutely dwarfs all other financial markets
combined. This massive size creates unique advantages over all other trading
tools.

According to most forex brokers, all stop orders (with few exceptions) will
be filled at their enetered price. In trading terms this means no slippage.
I can't even begin to put a value on this feature.

Due to this quality you can have orders filled of up to $20 million of
currency at the market price. Again, an almost unnatural feature when
compared to other trading markets.

A more advanced feature is the ability to sell short with no regulations.
Ok, technically you are never selling currency short, but I won't get into
that in this article.

What this means is that, if at any time you believe the value of a currency
is going to decrease, you will be able to take act on your hunch without
delay.

Another one of a kind characteristic of the forex market is it's amazingly
accurate technical analysis. Like all other financial trading tools, the
forex market has all of its' "stocks charted". This is no big surprise, or
advantage.

However, unlike other tools, all points on a chart in the forex are based on
the bid price. So, Eddie, why does this matter to me? Because this means
that the spread is not factored into the chart price. This leads to a much
more accurate and readable chart.

In fact, the spread is constant on all forex currency pairs. Some have
spreads as low as 2 pips and others as high as 10 or even more. However,
they remain constatn with almost all forex brokers and forex banks. This is
yet another reason to look at the forex markets.

In my incredibly humble opinion, there is no market that provides the
opportunity and benefits like the foreign exchange. The forex has been
traded by banks and financial institutions for decades. Now, you, as an
individual can climb into the ring and take your shots.

Ok, hopefully this gives you some sort of direction of whether or not forex
trading is right for you.

Stay tuned, there will be much more info to come in the near future.

Eddie's Trading Tools:
Forex Seminar | Forex Trading Course | QQQ

What are Your Options Regarding Forex Options Brokers?

Forex option brokers can generally be divided into two separate categories:
forex brokers who offer online forex option trading platforms and forex
brokers who only broker forex option trading via telephone trades placed
through a dealing/brokerage desk. A few forex option brokers offer both
online forex option trading as well a dealing/brokerage desk for investors
who prefer to place orders through a live forex option broker.

The trading account minimums required by different forex option brokers vary
from a few thousand dollars to over fifty thousand dollars. Also, forex
option brokers may require investors to trade forex options contracts having
minimum notional values (contract sizes) up to $500,000. Last, but not
least, certain types of forex option contracts can be entered into and
exited at any time while other types of forex option contracts lock you in
until expiration or settlement. Depending on the type of forex option
contract you enter into, you might get stuck the wrong way with an option
contract that you can not trade out of. Before trading, investors should
inquire with their forex option brokers about initial trading account
minimums, required contract size minimums and contract liquidity.

There are a number of different forex option trading products offered to
investors by forex option brokers. We believe it is extremely important for
investors to understand the distinctly different risk characteristics of
each of the forex option trading products mentioned below that are offered
by firms that broker forex options.

Plain Vanilla Forex Options Broker - Plain vanilla options generally refer
to standard put and call option contracts traded through an exchange
(however, in the case of forex option trading, plain vanilla options would
refer to the standard, generic option contracts that are traded through an
over-the-counter (OTC) forex dealer or clearinghouse). In simplest terms,
vanilla forex options would be defined as the buying or selling of a
standard forex call option contract or forex put option contract.

There are only a few forex option broker/dealers who offer plain vanilla
forex options online with real-time streaming quotes 24 hours a day. Most
forex option brokers and banks only broker forex options via telephone.
Vanilla forex options for major currencies have good liquidity and you can
easily enter the market long or short, or exit the market any time day or
night.

Vanilla forex option contracts can be used in combination with each other
and/or with spot forex contracts to form a basic strategy such as writing a
covered call, or much more complex forex trading strategies such as
butterflies, strangles, ratio spreads, synthetics, etc. Also, plain vanilla
options are often the basis of forex option trading strategies known as
exotic options.

Exotic Forex Options Broker - First, it is important to note that there a
couple of different forex definitions for "exotic" and we don't want anyone
getting confused. The first definition of a forex "exotic" refers to any
individual currency that is less broadly traded than the major currencies.
The second forex definition for "exotic" is the one we refer to on this
website - a forex option contract (trading strategy) that is a derivative of
a standard vanilla forex option contract.

To understand what makes an exotic forex option "exotic," you must first
understand what makes a forex option "non-vanilla." Plain vanilla forex
options have a definitive expiration structure, payout structure and payout
amount. Exotic forex option contracts may have a change in one or all of the
above features of a vanilla forex option. It is important to note that
exotic options, since they are often tailored to a specific's investor's
needs by an exotic forex options broker, are generally not very liquid, if
at all.

Exotic forex options are generally traded by commercial and institutional
investors rather than retail forex traders, so we won't spend too much time
covering exotic forex options brokers. Examples of exotic forex options
would include Asian options (average price options or "APO's"), barrier
options (payout depends on whether or not the underlying reaches a certain
price level or not), baskets (payout depends on more than one currency or a
"basket" of currencies), binary options (the payout is cash-or-nothing if
underlying does not reach strike price), lookback options (payout is based
on maximum or minimum price reached during life of the contract), compound
options (options on options with multiple strikes and exercise dates),
spread options, chooser options, packages and so on. Exotic options can be
tailored to a specific trader's needs, therefore, exotic options contract
types change and evolve over time to suit those ever-changing needs.

Since exotic forex options contracts are usually specifically tailored to an
individual investor, most of the exotic options business in transacted over
the telephone through forex option brokers. There are, however, a handful of
forex option brokers who offer "if touched" forex options or "single
payment" forex options contracts online whereby an investor can specify an
amount he or she is willing to risk in exchange for a specified payout
amount if the underlying price reaches a certain strike price (price level).
These transactions offered by legitimate online forex brokers can be
considered a type of "exotic" option. However, we have noticed that the
premiums charged for these types of contracts can be higher than plain
vanilla option contracts with similar strike prices and you can not sell out
of the option position once you have purchased this type of option - you can
only attempt to offset the position with a separate risk management
strategy. As a trade-off for getting to choose the dollar amount you want to
risk and the payout you wish to receive, you pay a premium and sacrifice
liquidity. We would encourage investors to compare premiums before investing
in these kinds of options and also make sure the brokerage firm is
reputable.

Again, it is fairly easy and liquid to enter into an exotic forex option
contract but it is important to note that depending on the type of exotic
option contract, there may be little to no liquidity at all if you wanted to
exit the position.

Firms Offering Forex Option "Betting" - A number of new firms have popped up
over the last year offering forex "betting." Though some may be legitimate,
a number of these firms are either off-shore entities or located in some
other remote location. We generally do not consider these to be forex
brokerage firms. Many do not appear to be regulated by any government agency
and we strongly suggest investors perform due diligence before investing
with any forex betting firms. Invest at your own risk with these firms.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Options Brokerage

The Top Four Forex Brokers

This article contends that the best forex brokers are: Saxo Bank, GAIN
Capital, GCI Financial Ltd., and CMS Forex. CMS Forex accepts no commission,
demands a small amount of only $200 to establish a mini account, provides
users with a Free Demo account, provides leverage as high as 400:1, and has
a 3 to 4 pip spread on major currencies.

Saxo Bank's ForexTrading.com offers 24 hour online trading, streaming news
from three major providers, detailed analysis from in-house experts, direct
online chat to dealers, and a secure trading environment.

GAIN Capital gives its asset managers robust technology, wholesale dealing
spreads, consistent liquidity, fast execution, and access to a wide range of
sophisticated tools. GAIN Capital's proprietary trading technology today
supports over $60 billion in monthly trade volume. GAIN Capital's
FOREXTrader has streaming prices in 14 currency pairs, real time profit and
loss account information, sophisticated risk management tools, a variety of
simple and complex order types, and full reporting capabilities.

Professional dealing practices and a service-oriented approach has earned
GAIN Capital a reputation as a world class provider of foreign exchange
services. Client and partners from over 110 countries currently rely on
their technology, execution and clearing services, and administrative tools.

For individual investors, GAIN Capital operates FOREX.com, which offers
advanced, yet easy-to-use trading tools along with lower account minimums
and extensive educational resources.

GCI Financial is one of the world's largest online brokers offering
commission-free trading in Forex. GCI Financial offers Internet trading
software, fast and efficient execution, and the low margin requirements. GCI
Financial's free trading software gives the investor the edge in execution,
market information, and account management.

GCI Financial offers forex and indices on an online dealing platform. In
their forex trading platform the trader can add and remove instruments from
the ""dealing prices"" window to fully customize the trading.

Forex Broker Info provides detailed information on forex brokers, forex
trading and market makers, and other forex-related topics. Forex Broker Info
is the sister site of Incorporating in Florida Web.

FOREX 101: Make Money with Currency Trading

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.

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.

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.

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.

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.

Rich McIver is a contributing writer for The Forex Blog: Currency Trading
News ( http://www.forexblog.org ).

The Size Of The Forex Market

Most of the experienced traders around the world consider the Forex market as the best and most profitable of the capital markets. During many years forex trading had been the great and exclusive domain of major banks, very large financial institutions and the countries central banks; a good example of such a bank would be the U.S. Federal Reserve Bank. But over the last few years, thanks to the internet era, the market has been opened to anyone willing to learn the right techniques in forex trading and with the intentions of making substantial profits as the above mentioned institutions, that annually and consistently make pretty high profits from
trading in the Foreign Exchange market.

The foreign exchange market (FOREX) will exist wherever one currency is being traded for another. This market, also known as "currency market", is by far the largest market in the world in terms of all the cash value traded per day, this trading includes all that is being performed between large commercial banks, central banks, currency speculators, governments, and other financial markets and institutions. The trades taking place in the forex markets across the globe it's known to exceed on average $1.9 trillion/day. Retail traders, this is, small speculators are only a small part of this market, but this doesn't mean they can't grab huge profits if they have learn the right way to trade the Forex. These individual traders participate in the market through broker firms.

According to many experts, the foreign exchange market will have doubled in size in just three years, this thanks to increased participation by fund managers and pension funds. A financial services research firm said it expected the total global average daily volumes on the forex market to exceed $3,000bn next year (2007). Forex volumes, which rose from $1,770bn in 2004 to $2,000bn last year, were set to rise to $2,600bn this year and $3,600bn next year.

With these numbers you can easily realize why they say that the Forex market is a huge market that offers great opportunities for traders of all sizes.

Adrian Pablo is a Forex freelance writer with articles published in a number of places. Get a free report on Fibonacci Trading and learn more about the world of forex trading , visit:

=> www.1-forex.com

Automated Trading Orders in Forex Trading

Practical trading involves lots of simulations and automated trade orders using the power of computer. Charting, graph plotting, and automated trade orders; all these are used to enlighten your routine trading work and it spares you more time in studying the market.

Some of the well known trading orders are zero stops, stop order, limit orders, good till cancelled (GTC), as well as market on close order. These orders are used along with different trade strategies in different trading market. In Forex trading, limit orders and stop loss orders are the two auto-trade order used.

Limit orders:

As a trader, you can place these orders when you wish to buy/sell the currency at a better price compare to current market. Limit orders are often used to take win automatically when the price reaches certain level. For example, current EUR/USD is at 1.2693 and your predetermined limit order is to sell all at 1.2700. The order will auto-execute whenever the price reach 1.2700.

It is important to learn that limit orders can be only placed at least the minimum distance from the current market price. Also, such order can be cancelled or modified anytime by you as long as the limit order price tag is set further than the minimum distance allowed.

Stop orders:

Stop orders, or sometimes known as stop loss orders, are automated orders used to restrict and limit the losses of an open position. It can also be used to lock on a profit in your trade when the market is going in your favored direction.

Stop orders work similarly to limit sell orders, it predetermine what is the lowest price to sell in certain deals. For example, EUR/USD 1.2693 with stop order at 1.2685, the system will sell your portion of USD if the price touches the 1.2685 level. The price 1.2685 is guaranteed on such case, meaning even if the market sink too fast and it falls below 1.2685, you still can sell your money in the price that you set earlier. Stop order works perfectly well in handling your risks profile.

Forex nowadays had become one of the most fast growing trading markets in the world. Since the currency exchange market is opened to public in year 1998, we are seeing more and more traders involve in the FX market. Trading Forex might sound easy but the risks involved are extensive. We suggest beginner traders to sharpen their skills and fully utilize trading orders to maintain their risks profile.

Teddy, experienced writter and webmaster. Get useful Forex trading tips and secrets at http://www.golearnforex.net

Day Trading Forex Currency, Hype, Lies and TANSTAAFL

Day trading Forex currency is all about making big money. Some investors have found it quite easy to make a large amount of money by day trading the Forex currency markets as they change hour by hour. But, you see that "some" in the previous sentence? What that means is that a lot of people don't make a dime and even lose a lot of money.

Usually a Forex trading system course is hyped as an easy way to make a bundle. Get your Forex trading secret and your Forex trading tool and you're golden - day trading Forex currency for vast riches. Lies. What you tend to find is that there isn't any Forex trading secret, it's the same old tired stuff repeated over and over on sales page after sales page, generally by so-called "experts" who aren't. And that so-called Forex trading tool or software? Another lame canned system that promises but won't deliver.

And now, what's TANSTAAFL? Online and offline this is the antidote to the big con. There Ain't No Such Thing As A Free Lunch. Fast, easy, no work, instant riches. Doesn't exist. Absolutely anything that is worth your attention is going to cost you effort, time and probably money. Anything else is a pack of lies, hype or deceptive sales yap.

You will probably not make much money day trading Forex currency. In fact, you will probably lose money. Unless you are really smart about how you do it and who you listen to. Sorry, but that's the real truth. There is no secret, no magic tool, no perfect Forex day trading strategy.

What you're going to find are a bunch of Forex trading systems, courses, techniques and tools that purport to tell you just what to do and when and how to do it. If you buy into one of these things - a ready-made off-the-shelf turnkey Forex trading system course, you're going the wrong way. This is just the same old tired search for a magic, easy, thought-free and work-free solution that lies behind every successful scam. If it were that easy, we'd all be rich already, wouldn't we? If there really were a genuine Forex trading secret, tool or strategy that would make you rich, do you actually think anyone would be stupid enough to sell it? Think about it
when you see one of those hyped sales pitches claiming it's easy and quick and the money will be rolling in.

In the Forex currency market, despite all the nonsense about leverage, timing and signals - if you test it out, you'll find most signals are little better than random noise and that trying to time the market will usually end up with you experiencing consistently bad timing. Canned, simplistic
approaches to a complex market just don't work.

How about technical analysis like you'll find in many a Forex trading tool? It's been said (though not by the "wizards" selling technical analysis systems with some spiffy name) that of all the major markets, Forex is the least amenable to technical analysis.

Even the basic wisdom of "buy low, sell high" needs to be seen within a special context when you start working at day trading Forex currency.

If this seems overly discouraging overall, you need to remember the sheer amount of hype and outright lies that are prevalent in this area. You need to be prepared to be coldly realistic. You absolutely have to think of Forex as a serious, complex real business. One that requires close attention and serious study. You need to be careful getting into it, careful whose advice
you take, and careful about learning as much as you can from a real expert.

Certainly it's possible to make money. But, your chances of making money by day trading Forex currency will be vastly increased if you are wide awake when you get into it. Stop dreaming about fast easy money with no work or effort. Get to learning the realities so you can develop your own Forex trading strategies, ones that work for you. It will take time and effort, but then, maybe Forex trading will truly be your road to financial freedom.

Copyright (c) 2006 Richard Keir

Richard is a researcher, writer, programmer and marketer and he's tired of all the hype. Discover the realities of day trading Forex currency now.