Tag Archives: Strategies

Forex Trading Articles

Forex Trading Strategies For Beginners

For the beginner who wants to trade on the Forex market it is imperative to decide on what your trading strategy must be. There are many trading systems which suggest fantastic things but I should sound a word of caution. Many systems DO perform, or at least they work for the person who devised them. But it could well mean it does not work for you. We all exhibit an different methodology to everything that we carry out and one persons approach in the developing of a trading system might not suit another.

One tactic might rely on following a trending indicator for example. Practically all indicators are lagging, that is to say they tell you what has happened after the event. They will not tell you what is around the next corner. So such an approach is likely to be deficient in certain areas.

The soundest method when trading is to look for either continuation or reversal patterns. These are patterns, which historically have shown that the price is most likely to move either up or down. I say most likely quite deliberately. Remember, no one KNOWS which way the price will move. We are looking simply at probability and various patterns reveal a higher level of probability than others.

There is nothing puzzling about price movement despite what some would have you believe. Remember, it is a constant battle involving buyers pushing the price up and sellers pushing the price down. Just like buying and selling fruit and vegetables from a market stall. It is a easy as that.
You will need some form of charting package if you are intending to trade but be wary not to get carried away with the array of indicators on offer. They may well look very high tech but the majority of them are not. Remember, they are indicators, they can merely help to confirm or otherwise a specific price movement. As I mentioned above virtually all indicators are lagging and only show you what has happened (which you can already establish from the price movement). They are all based on price and/or volume data, although there is no volume on the Forex market.

So do not get carried away with indicators, only focus on price movement and chart patterns instead. There are just 3 indicators that I can think of that are leading indicators. These are fibonnacci retracements and projections, pivot points and the Gartley pattern. I am a great believer in fibonnacci patterns simply because they have a tendency to perform and I make use of them routinely. Many traders place major significance on pivot points. Consider this though. Pivot points are derived from a mathematical calculation taking the high and low price from the preceding day or so. I can see no technical explanation why that can mean something. All you can say is that if lots of traders employ it and respond to it the movement of price based on this can be a self- fulfilling prophesy. You decide. The Gartley pattern is a little known pattern that is somewhat hard to put into words. However once one does present itself a highly profitable trade can result.

Forex Trading Articles

The Importance Of Forex Strategies In Foreign Exchange Trading

Every experienced trader will tell you that in order to be successful at Forex trading, you need a strategy. You cannot just use a modern robot and let it work for you and get you big profits. The real winning is in making profits on the long run. There are no perfect Forex strategies, but even if you take some losses every now and then, if you strictly follow a well defined and tested strategy you should make consistent profits from this colossal market.

The first thing that you need to understand about currency trading strategies is that not all individuals have the same trading style. Many beginners believe that there are Forex systems with iron-clad directions that by following can guarantee wealth in a short period of time. The reality however is that you have to spend considerable time and effort back-testing and actually trading according to several Forex strategies, and even after you find the one that works best for you, the best you will get at first is some marginal profit.

If you are wondering why you need a strategy to trade foreign exchange currencies, the answer is because you need a psychological framework that has to be created to counteract the biggest enemies of any trader, which are fear and hope. Nevertheless, you need to understand that there is no magic system that will make you huge profits.

Even if numerous traders would follow the same system with the same rules, they would still get different results. Moreover, successful trader with many years of chart-reading experience behind may get excellent results from a mediocre system, while a rookie trader may find success very difficult even when following a great trading strategy.

If a trader is successful, this is not because he or she has managed to beat the market, but because he or she has managed to beat himself or herself. Keep in mind that trading will emotions is the biggest mistake that you can make, and on the long run it will always ruin your profits. This is why you have to use Forex strategies and systems to keep your emotions under control.

A good Forex strategy should provide you with a logical and rule based framework, which will ultimately override your counter productive emotional instincts. These strategies usually include clear entry and exit conditions that will keep the number losing trades low and insignificant, while the cleverly implemented profit and loss targets will get you more chances of winning.

General Business

Strategies to be Followed by an Austin CPA

Progressively high level business requires a team of hard workers and magnificent leaders. To run the business in long terms we should adopt a perfect strategy to implement our work with accuracy. Besides the team of hard working persons we also need smart and brilliant brains to optimize our business perfectly. More clearly we can say this requires an intelligent person who can handle all the financial works in a proper manner and that could be none other than an Austin CPA.

A CPA is a highly skilled professional that assist the businessman to maintain the financial records in positive way. Moreover they give perfect advices to their company holders from saving them through backward cases. The task of solving accounting operations need fine work capability. An Austin accountant should be capable in working for the worth gains of a company. For this we need a highly skilled, trained and a knowledgeable professional. General accountants may be worth for you but they may not be able you to deliver all the proper informational works as much appropriately that a CPA may offer. May be hiring a CPA is costlier than a general accountant. But he is going to be the better option for you. That’s the reason it is said that all CPA are general accountants but all general accountants perfectly not a CPA.

Before hiring an Austin CPA every company observe some special qualities. So stated below are some special kind of features that a good Austin CPA must possess:-

  1. BRILLIANT KNOWLEDGE ABOUT ITS WORK – A CPA must be hard working, only then he is being able to rule on such good positions. Besides doing hard works they should have sharp mind to handle some of the complicated situations of his company. He should be good in building tricks among the complicated tasks.
  2. GOOD COMMUNICATION SKILLS – An Austin CPA should adopt good communication skills as working in such professions. Besides this, he should be well mannered person. This feature is not only required in a single profession besides it is quality to be needed in all professionals.
  1. EXPERIENCED– Before hiring a CPA one must keep this thing in the mind that your CPA has enough experience while working under another CPA. This will impart him the basic knowledge about how to work for any company. It will help him in building his knowledge and improving his skill power and efficiency.
  2. OUTSTANDING ABILITY TO HANDLE BAD CIRCUMSTANCES – Probably if the firm meets with some of the bad circumstances in future, a CPA must be able to save his company from the legal drawbacks.

These are the specialties to be looked in a CPA. So if you are interested in hiring a good CPA for your company you can contact with our firm AUSTIN-ACCOUNTANTS.com. According to your choice you can decide up the best and a suitable CPA for your company favoring the best price quotes.

General Forex

Forex Tips And Strategies For Novice

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People usually the beginners have a misconception about the forex market that it will fetch them easy and handsome money. Yes, off course it is true but not as easy as they think it is. They also are fascinated by the large number of products and the options being provided to them. A lot of the resources and the items are there which attracts the new forex traders and the beginners. They find it as the quick way to make big money with the help of minimum effort. This can only be possible if we follow some strategies and some tips if we want to be successful in this forex trading market. You need to have a proper systematic approach towards the aim.

Firstly, you should have the right frame of mindset when you are trading in the forex market. The new forex beginners should not think that they will always make good money in the trade forex market. This is absolutely wrong concept. This is off course true that one forex market trader is her only for that purpose only. Make plans accordingly that you are here for making profitable deals rather than good sum of money. By implementing this approach and strategy you will come to know that naturally there will be lots of profits and gains coming your way. Another very important tip is that you shouldn’t follow any kind of system or the experts because it has been seen that even the experts like Warren Buffet and George Soros has committed errors in this market. Always remember the fact that these currency markets are a bigger platform and there are lots of experts sitting over here.

The geographic, political and the economic information are very important from the point of view of the forex trading market as they play an important role in deciding over the planning and the strategies. These data and the facts are very important and have been made mandatory by the financial institutions and the forex traders. You should also monitor and have a close look at the charts for your records on a daily basis.

The traders should apply that trading strategy which suits him the best; never apply that strategy which is complicated and hard to follow. By paying some attention to the ups and downs of the market, the trader can simply increase his profits. There are many ways to minimize the chances of risks and losses in forex market. Thus, by this way a trader can easily deal with his forex trading successfully.

Forex Trading Articles

Types of Option Strategies

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Option strategy is the purchase and/or sale of one or various option positions and possibly an underlying position. Options strategies can favor movements in the underlying that are bullish, bearish or neutral. The option positions used can be long and/or short positions in calls and/or puts at various strikes. Let us have a look at the various types of option strategies that are available at our disposal.

A straddle is one of the most popular trading strategies. This spread strategy involves purchasing a put and a call as opposed to one or the other. When you buy an options put call to hedge your risk, it is called a long straddle, whereas if you sell an options put call it is called a short straddle. A straddle is therefore the simultaneous buying or selling of a combination of puts and calls. The purpose of the straddle strategy is to hedge your risk in a market. A long straddle is established by buying both a put and call on the same security at the same strike price and with the same expiration. The short straddle options strategy is the opposite of the long straddle. It lets you take advantage of, instead of being shorted by, the time value as the expiration date approaches. If the options are not exercised then you keep the premium amounts.

Vertical Spread is one of the simplest option strategies where you buy and sell different options with the same strike prices and with the same expiration dates. In other words, you buy a put and a call at the same strike price which is near in the money. It involves the buying of options and the writing of other options with different strike prices, but with the same expiration dates. Another example of simpler option strategies is the bull spread which involves being long on a closer expiration date and short on an expiration date farther away. You can also purchase an option with a lower strike price and sell an option with a higher strike price with both options having the same expiration date. A bullish spread increases in value as the stock price increases. A bullish spread as compared to a bearish spread increases in value as the stock price increases. The bearish spread increases in value as the stock price decreases. In general, the writing of options helps to purchase long option positions.

Another one of the option strategies is the calendar spread where you buy options with the same strike price but with different expiration dates. This strategy is also called a time spread. A time spread, or calendar spread, involves buying and writing options with different expiration dates. A horizontal spread is a time spread with the same strike prices. A diagonal spread has different strike prices and different expiration dates. The purpose of the calendar spread is to take advantage of the fact that the time value of an option will decay at a more rapid rate the closer the expiration date approaches. For example, you might write a put or call that has an expiration date in the near term. Then you would simultaneously buy a put or call with an expiration date that is further away.