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Forex Trading Articles

The No Stop, Hedge Foreign Exchange Trading Grid Technique

This no stop loss, hedged Foreign Exchange trading Grid technique is now extremely popular due to the fact that same currency hedging gives a chance to transact with no stop loss loss order . This is exceptionally appealing to many Currency traders.

So how does it work:- In essence after you have sold and bought a currency (creating a hedge) you would decide a trading grid consisting of price levels above the current price and below the present price. These price levels are normally exactly the same range apart (say 200 pips). Each time the price reaches one of the price levels you would buy and sell the currency (thereby generating a hedge). You would also liquidate or close your positive transactions at that time. Sooner or later the amounts you cash in will be even larger than the cost of your open transactions (hedges) and you would liquidate all your deals at a net profit and then take a break or start all over again. In case this sounds overly basic for you there are a few excellent videos readily available on the Internet which explain these ideas in more detail.

As you can notice it is very mechanical and does not require any thought – just follow the rules. Because of this it make the Grid system an ideal automation system – you do however need to know the mechanics of the technique exceptionally well in order to determine the optimal grid size and currency cross pair to use.

This no stop, hedge, currency trading Grid system however remains one of the most misunderstood and abused forex methods around. This is due to the fact that the no stop, hedge Currency Grid Method is more of an investment technique than a trading technique. Moving from a quick day trading strategy to a long term investment technique is something tremendously few Currency traders can do. It requires such a paradigm shift in trading that day traders become impatient and reckless and lose their trading account tremendously quickly by adopting inappropriate grid sizes or using the wrong currency cross.

A fact that Forex traders can’t come to grips with is that you don’t need forex charts to transact the Grid system. Currency trading is almost totally based on fundamental and technical analysis that uses Currency charts to determine optimal trading entries and exits. Not the grid technique. If you know that you are going to be selling and buying (hedging) a particular currency at predetermined price levels no matter what, why would you need forex charts.

The investment technique uses some of the aspects (not all) of the dollar cost averaging investor’s use. If you invest at a certain price level and the price moves to a increased price level and you invest again, your average purchase price is lower than your most recent purchase price. As long as the price stays higher than your average price you are in profit. Likewise if you buy at a certain level and the price falls to a lower price level and you buy again, you have decreased your average purchase price and it does not need to go up much for you to breakeven. In the same way, the Grid technique trades until the cost of the hedges is lower than the earnings from cashing in the positive transactions.

By buying and selling at each Foreign Exchange grid level and also liquidating positive transactions the investor is moving closer to the point where at some point the total investment will probably be cash positive and can then be liquidated.

Forex Trading Articles

Partial Close – Technique for Preserving Forex Profits

Partial close is one of the forex exit strategies that are available at the disposal of forex traders. Partial close is a forex exit strategy that a trader can use to exit his trade in a piecemeal fashion instead of just exiting the trade at one time. It is used to close a portion of a trade as the profits start to roll in so as to secure some level of profit no matter what could happen later. Partial close helps ensure, at least, small amount of profit when trading is favorable.

The Problem with Partial Close

There is, however, a big downside to partial close is that there is no balance between risk and reward. The risk that a trader decides to take up when a trade is opened is seldom the same as the profit that could be realized. As vital as partial close is, it could also affect a trader’s profit in a negative manner.

Partial Close Example

An example would be helpful in demonstrating here. Imagine a case where a trader, utilizing a 40 pip stop loss, he would then have risk 40 pips as his total amount risk for that single trade. Let us now say that the he decides to perform partial close when his trades are in 20 pips profit.

If the trader decides to partial close fifty percent of his trading positions, he would have, thus, covered 20 pips out of the 40 pips risk. To maintain a 1:1 risk-reward ratio, the trader would have to close out the remaining positions at a higher profit level than 40 pips due to the fact that the remaining positions are traded with a lower contracts sizes.

The problem that partial close could give rise to is sometimes aggravated by the actions of trader. There are some traders that do shift their stop loss to break even immediately after they have used partial close to secure some profits.

The implication of this, based on the earlier example, is that they have put 40 pips at stake in any single trade to gain 20 pips should the remaining position close out at break even. Not only that, should the next trade stop out for the total initial 40 pips, it then means they have to make up for another 20 pips in the trade that comes after, that is, if the trader continues to trade on the same amount of contract size.

Partial Close Protect Profits Reduce Rewards

The fact that there is a disparity between risk and reward indicates that the trader who uses partial close must record a greater success rate relative to another trader that does not use partial close at all. This is because a single loss is capable of reversing whatever profits a trader has realized. The discrepancy in the risk-reward ratio requires a forex trader who uses partial close to record large number of winnings. Else, it would be better for the trader not to use partial close technique at all.

Market Analysis

Article Marketing – Article Submission as Organic SEO Technique!

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There is no doubt that search engine optimization (SEO) plays a very important role in the internet marketing field. If you are someone who is looking to take part in internet marketing, chances are that you may want to consider article submission as an organic SEO technique. Here, through this informative article, we will take a much closer look at how article submission works, as well as some of the ways that you can have the most success with this SEO technique.

Article submission is also referred to as article marketing. The way that this SEO technique works is when you decide to pay a company to have articles written for you, or if you decide that you have enough knowledge on the subject to write them yourself. Once you have the articles written that you are interested using for your company or whatever area you are interested in trying to promote, you will then submit your articles to directories.

The entire concept of article submission is very easy to understand. Keep in mind that there are a number of different things that you can do to improve the overall success that you have with article submission as the SEO technique that you are interested in using or visit www.internet-copycatting.com.

The most important thing that you will want to take into consideration is that you will want to make sure that your articles have the right amount of keyword density. It is typically recommended for you to have articles which offer two to three percent keyword density. This will help improve the overall search engine, or directory, ranking that your submitted articles will have. Another one of the most important things that you will want to take into consideration is the fact that your articles should be much more than just keyword dense. While this is very important to the amount of success that you have with article submission, it is also important to keep in mind that the content of your articles is very important as well. Not only should they be well written with perfect grammar, but your submitted articles should also be relevant to the subject which they are about. Although you may have thought about offering the information that you want included in or go to www.yourarticlecash.com
Your articles in a playful manner, chances are that you will find that you will have the most success when you decide to present your information more professionally. This will help you gain the credibility that you need to gain the most success for your company or product. One of the main benefits that article submission has to offer you is the fact that it is known to be very successful. If you are interested in getting the internet marketing results through one of the best SEO techniques which is out there, then article submission can really do a lot for you. Another one of the main benefits of this marketing solution is the fact that it is known to be very cost effective, which is great for anyone who has a low marketing budget to begin with. Whether you have a large or small business, you very well may find article submission to be one of the best internet marketing solutions for you.