Tag Archives: Trading

Forex Trading Articles

Low Latency Your Forex Trading Edge

Latency is defined as the delay in the time it takes for data to travel from point A to point B. In the case of Forex trading, this equates to the distance between your broker and their respective liquidity sources.

Latency tends to be one of the most overlooked aspects of Forex trading. From a trader’s perspective the focus has always been on the front end trading software. However, reductions in latency should be one of the most important considerations in selecting a Forex broker. It is essential that an STP broker that connects to various liquidity sources lessen the time that trade messages takes to reach those sources of liquidity.

The Case for Colocation

As is the case with many businesses, a major key to success is “location, location, location”. Numerous studies have shown that the most effective way to limit latency is to make sure the physical location of the broker’s servers are in close physical proximity to the data source. DivisaFX accomplishes this by locating their servers within the same facility where Currenex hosts their servers. This means that trade messages travel the shortest distance possible and offer clients precious milliseconds advantage over other brokers.

Many algorithmic and high frequency traders take advantage of the improved execution times by hosting their trading system in a collocation with their broker. Through a partnership with TradeSpotFX, traders can now use the VPS (Virtual Private Server) service to reduce latency and maximize the effectiveness of their expert advisor or other automated trading system they might use.

Another benefit of server collocation is security. Financial institutions are required by law to adhere to the strictest levels of security and data integrity. They must also maintain server uptime of 99.99% so numerous backups are implemented to insure uninterrupted trading for clients of DivisaFX.

Forex Trading Articles

Stop Loss in Forex Trading

A Stop Loss order is placed to protect the trader from losing more money on a trade than they are willing to risk. A trader opens a position either long or short a trading vehicle. At the same time the smart trader will enter a Stop Loss order opposite the opening trade. If the first order was a buy, the Stop Loss will be a sell order for the same amount of units. This helps to keep emotion out of a trade or making it a hope trade. “I hope it quits losing me money soon” is a hope trade. Do Not Begin Trading without an order to protect your capital. Hope trades are for amateurs, and will cause only losses, be it in the stock market, the futures market or the Currency Market.

Although many traders do not use this method of trading, the traders that do use them are more likely to be winning traders in the long run. They have analyzed the trade and have a very good idea of how much risk they are willing to accept as part of the trade. If the trade goes against them, the Stop Loss will protect the capital and keep the loss at an acceptable level. Without an order in place, the trader has to manually get out of the position by putting in an order to close the position. This is where the good trader and the lucky trader part company. The good trader controls losses and the lucky trader just depends on being able to move when he is forced to move. This where the trade can turn into a hope trade and the trader lets emotion control the trade rather than logic. This is the easiest way to turn a small loss into a big loss. Do not be a fool and trade without Stop Loss orders.

Placing Stop Loss orders is an art form and there are considerations to be made. One is where to place it, perhaps at the level in which the trader first entered into the trade. Traders might prefer a trailing stop loss to protect a profitable trade. The trailing stop could be used as the trade makes money. Entering new orders and canceling the old order at the same time makes this a trailing stop. This can also be used as a way to further protect a profitable trade by closing up the current price level and the stop order price. Eventually the order will be triggered, but the profit may be greater than just getting out of the trade by feel. As with all trading, the idea is to use as little risk as possible and still give the trade some breathing room.

Stop Loss orders should be used at entry and then later to keep as much of the profit as possible. These are two very distinct and different uses of this valuable order. It means lower losses and more possible profit.

Remember that Forex Trading involves substantial risk as well as chance for substantial profit. Protect yourself with Stop Losses and other tools at your disposal, and trade wisely.

Forexpros.com

Disclaimer:
FusionMedia or anyone involved with FusionMedia will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Forex Trading Articles

How to Benefit From Forex Trading Systems

Many people are looking for something other than an office job to make money. The people are ready to experiment with things in order to find something that can yield residual income.

You can try various things and can experiment with different methods to make residual income. However, if you do not want to waste money and time, then you should invest in forex trading. Foreign exchange is an easy business that anyone can join. You only need a computer connected to the internet to start trade. The early investment is only $250 in most of the cases.

In order to stay safe and to trade profitably, you need to find a reliable system. Traders will find hundreds of forex systems that claim to be the best ones out there. You will also find systems that will advertise themselves as the ultimate money making machines. However, you need to stay away from these systems. You should only go for the system that is highly recommended by the other traders. Such systems will enable you to keep your trades organized and will allow you to manage your money more efficiently.

If you want to take maximum benefit from these systems, then you have to find the right one. You have to look for a system that is easy to use. If you have found a system that is not easy to use, you will face problems doing different things on that system. You will have to read guides and watch videos in order to set up the system. On the other hand, an easy to use system will give you ability to handle things on the fly. You will not even need a tutorial to setup the system.

Reliable systems will help you a great deal. You will have the luxury to trust these systems and will be able to stay relaxed even when you are not in front of your computer.

Market Analysis

Trading Method In Stock Market

With the proliferation of computers, trading system development seems to have replaced stamp collecting as the hobby of choice. Trading system development is the area where a lot of traders focus the bulk of their attention. And this is not necessarily a bad thing. Using an unemotional systematic approach to trading can greatly increase your odds of success because it can remove your ego from the day-to-day decision-making process and can reduce your emotional attachment to the money in your trading account.

The beauty of a trading system—which automatically generates buy and sell signals based on some preset objective criteria—is that it doesn’t care what the weather is. It doesn’t care if a big announcement is forthcoming, if the Fed chairman is speaking in 20 minutes nor about the price of tea in China. All it knows is that if a certain set of criteria is met it will say “buy” and if another set of criteria is met it will say “sell.” In essence, it never makes a mistake. This is not to say that it won’t have losing trades. It just means that it always

does what it is suppose to do.

Compare this to the trader who flies by the seat of his pants, buying or selling short based on subjective decision making. He buys and the Stock market goes down; he reverses to short and the stock market rallies. He thinks he should buy but decides to wait. The stock market then explodes higher and he misses the big move, the one which would have made back the losses and amassed a sizable profit. This scenario can happen to a trader using an objective trading system also. However, the difference is in the emotional aftermath.

The system trader may begin to question his system after a particularly bad period of trading, but this is a far easier position to be in than the subjective trader who just made three big mistakes back to back to back. It is hard enough to stomach losses when the stock markets knock you around. It is far more painful when you do it to yourself. Subjective trading involves entering into trading with the idea in the back of your head that when the time is right to enter or exit a trade “I’ll just know.” This approach is fraught with peril. On the other side of the coin, it should be clearly understood that utilizing a purely mechanical trading system in no way guarantees that you will be trade profitably in stock market. What it does mean is that you may be able to drag around a lot less emotional baggage than the subjective trader. A subjective trader who “makes it up as he goes along” will likely have a number of opportunities to “beat himself up” over the bad trades he has made that he shouldn’t have and the great trades that he didn’t take when he had the chance.

Whether you choose to trade systematically, subjectively or somewhere in between there are certain criteria that you need to address in stock market. The more clearly stated and objective your answers to these questions, the greater the likelihood of your long-term success in stock market.

Forex Trading Articles

Impressive Trading Software Nails 15%+ Profit Consistently Monthly

Robot Achieves Almost 400% YTD
Fx Megadroid NEW Trading Statements Proof

Dear potential investor,

The response from the market has been truly awesome… Forex Megadroid landed on the Forex industry like a BOMB… no other way to put it!But… it gets even better than we’ve seen until now. Pay close attention:

John and Albert (creators of this revolutionary robot) have posted TRADE by TRADE results of the robot.And by the way, from 4 days prior to the launch of the robot up until today (8 days), it has achieved 100% accuracy for over $5,000 in NET profit!

You can now see every single year’s performance, day-by-day, trade-by-trade here:

(2009 WAS 330.20%… it’s NOW 387.18%!… a 57% increase in only 8 days!)

You will now see from the trade by trade results that this is truly the first robot that trades with over 95% accuracy YEAR after YEAR…

…that this is the first robot which is a true multi-market condition performer.

Forex Megadroid is the only robot on the market that has proven itself to withstand any market condition for quite a few years.Its new Artificial Intelligence technology (RCTPA) allows it to see what will happen in the market within the next 2-4 hours and this is EVIDENT from each year’s performance.

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PRICE Is Going UP…
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The launch of Forex Megadroid is almost over and, as promised by John and Albert, the price is going up.Remember, Forex Megadroid has unique features that NO other robot on the market has:

– Broker buster in-built mechanism (no broker in the world will ever know you are trading with it and hence cannot stop you from doubling your account every month)Consistency – Year-by-year impressive performance. In 2009 alone the robot has almost QUADRUPLED the deposit!

– Multi-Market Performance – the only robot that is capable of trading with 95.86% accuracy in every single market condition: trending, non-trending, volatile, non-volatile. This is HUGE since it’s the reason the robot is able to trade every month with an uncanny accuracy rate.

– New Artificial Intelligence technology (RCTPA) which allows the robot to see what will happen in the market within the next 2-4 hours with unheard of accuracy rates.

You can get Forex Megadroid here and view year-by-year detailed trading statements before price goes up. See live proof by visiting the link below. Testing includes both forward live trading, as well as backtesting results:

E Graham

P.S. Make sure you look at every trade the robot has placed in the past… especially for 2009 and you will understand why John and Albert are positive it will break the 1,000% net proflt barrier this year: