Tag Archives: Trading

Market Analysis

Principal Investment For Global Trader’s Market Trading Strategy

I was just hanging around forum sites the other night when suddenly, I got stuck and participated in the discussion. I couldn’t be able to prevent this feeling of bit amused on different traders’ opinions and reactions in the thread. Trading seems to be very influential that gives drastic impact to various people all over the world. Since trading is not a sure thing in most cases, I consider it pretty much like a game wherein you won’t be able to find out the result unless you give it a try, play and win. Surely, just like any other competition you need to have your own strategy. It is a tried and tested method of application to achieve great result and sure win.

A trading strategy is your principal investment to control things according to what you want to accomplish. For a global trader, it is basically a complete system on how you will execute a trade to meet substantial trading profits in a specific timeframe.

The stock and Forex market are two essential places for trading, they are kissing cousins. There are many evidences that stock market can make sparkling collision to Forex in various means. Surely, you won’t be able to comprehend the whole market scenario unless you made research and studied trading courses. The market is a very perplexed place that needs to be totally absorbed and understood. I would suggest that anyone who wants to trade in the market live should begin his career by learning the business completely. Stock trading basics will surely help but proficient education will be an edge for you to handle risky market situations.

The good thing about our current status in trading is that there are various training courses that offer in-depth trading education and seminars for both novice and expert traders. Of course, some traders will disagree and would probably raise an eyebrow for telling that experts should also need to enroll in some stock market trading courses. Learning is a continuous process of growth and development. There are so many things that need to be furnished and enhanced. No matter how successful you are, there would always be a tendency for you to lose. All you have to do is to prepare yourself to combat any unnecessary incident that you may encounter in the real-time marketplace. You have to know when to enter and exit a trade so you won’t be able to lose fortune and make bad credit.

We have to admit that we are not perfect. Traders must realize that the only safe way to make unyielding profits is to provide yourself some investment for future success. The principal things you need for investment are solid trading education, personal training and trading software. These principal investments will facilitate you in getting great financial freedom. From these, you can build up strong market trading system and risk-tolerance strategies.

Now, I knew why Shamus Bradley strictly imposes traders to have a goal prior to executing trade in the market live. He wants traders and investors to get great strategy for reaching that goal in the safest and most certain way.

General Forex

Forex Trading Tips – Prepare Yourself Well Or Lose Everything

There are iron rules in each business and ignoring these rules will make the players kicked out quickly from the game, this is also applied in forex trading. Apply these forex trading tips in your trading career to make steady profits, keep your account save, and play by the rules:

1. Never Make An Entry Without Doing Analysis First

There area always times when you will stumble upon something that looks very promising, perhaps from news or trends. These ‘hunch’ may bring you profits once or twice, but it just coincidence, you will never survive in forex trading if all that you got is ‘hunch’ instead of proper analysis and logical decisions.

This has happened to the majority of the traders when they started; they manage to make a profit by speculating, thinking that they already master the secrets of forex trading, and start giving forex trading tips to their acquaintances. This attitude is identical to a gambler in a casino: throw the dice and pray. You’ll be thrown out from the game in no time with this kind of attitude.

2. Learn Step by Step

Foreign exchange has many factors and elements; it is purely not possible to grasp it instantaneously. If you are a novice, do not deposit USD10,000 in your new account and have various tests with it. Trading currency is similar to gambling; when someone lose, there are always a winner at the other side. These winners will finish your USD10,000 in no time and by reading this forex trading tips you have learned to avoid it.

The best ways to go is take it slow. Start with a practice/dummy account while learning. It is possible to test a variety of methods, currency pairs, robots, and signals there without concerns. If you have discovered a system that is effective, you can proceed to a mini account for further test. Nevertheless, if you have confidence in your system, go ahead and open a live account.

By “system that works”, I refer to a system that can generate profits on regular basis at the end of the month without you have to spend your entire time maintaining your open positions. If you have confidence in it, learn to control your emotion and allow it to do the work.

3. Utilize Trusted Forex Trading Platform/Forex Broker

No matter how good your system is, trading in a poor quality platform will ruin your opportunity to gain profits. Usually, you will get free trading platform from your broker; these are what you need to look in your trading platform/forex broker:

– Support all currency pairs that you interested in. At the minimum it must support popular currency pair like EUR/USD, GBP/USD, and USD/JPY.

– Allow you to put take profit and stop loss order; this is very important risk management method.

– Provide charting feature, news feed, advices, and research material; to make it short: all that you need to make proper analysis. If possible, a daily forex trading tips can be beneficial as well.

– Customer support available. If possible, get the one that provide 24 hours support so you can contact them any time when you get problems.

– Currency trading is a global business, so it is great if your broker take deposit in multiple currencies.

– Simple procedures applied in their services, including withdrawal.

4. Figure out how to Use Stop Loss and Take Profit Order

Stop Loss and Take Profit is orders that you put to close your position at certain price. Instance: you buy GBP at 1.678; then you place Stop Loss order at 1.648 to limit your loss by 30 pips. You also put Take Profit order at 1.708 which means you will close it when you get 30 pips profit.

This is important so that you can prevent your emotion to take part on the “close decision” and screw it up. If the market is move against you, you won’t close the position since you are hoping the market to swing back to your side, thus turn potential loss into profits. In most cases, this will only bring you more losses. This is very important since it is the cause of many traders falls. If you don’t remember everything that I mentioned in this forex trading tips, remember this: emotion is only going to make your trader career short.

Other possibility: the market moves in your favor and you start to gain profits, but you still hold it because you want even larger profits. You can ever predict when the market will moves against you and when it really does, it will be already too late. In both scenarios, greed is the one in movement. But when logic dictates, you can control greed.

Main point here: you should not rush everything when you learn or trade forex. Take your time to learn the rules, test, practice, analyze, and read several forex trading tips for the day. However, I don’t recommend you to do it by yourself since it can be long and painful process.

Forex Trading Articles

How To Engage In Profitable Forex Trading

Markets are known to reward those who pursue correct behavior. Our whole economic paradigm is based on the market structure and there is no bigger market in the world than the forex market. This is why forex trading is one of the most rewarding professions in the world today.

Here are some guidelines on how to do this profitably.

* Seek Expert Advice: Currency trading is very dynamic and you need to be up to date with all the happenings in the world. This quite honestly is impossible. There are a large number of central banks, dealers and other participants that may have more information than you. As a retail investor, it is impossible for you to keep track of all of these. So if you cannot beat them, join them. However, be careful whose advice you heed. Test their records and align yourselves only with the best.

* Cut Transaction Costs: Transaction costs have a tendency to eat chunks of your profit. The world’s greatest investors, Warren Buffet and George Soros, are very averse to transaction costs. FX Trading requires constant buying and selling and transaction costs have a potential to dent your margins largely. The best intermediaries will often have the best costs because of their large transaction bases. This is another benefit of aligning yourself with the best.

* Understand Derivatives Instruments: Derivatives instruments are what make foreign exchange markets exciting. They offer you leverage, which enables you to amplify your profits. However, at the same time, they also create risk, which needs to be managed. There are various strategies available, which enable you to hedge risk. This means you can decide the upper and lower range of possible outcomes. What’s more, instruments such as options allow you to get asymmetric payoffs, which mean that you can control your risk while maintaining full upside potential. The largest volume of derivatives instruments is traded on the forex market and its total value is close to seven times the GDP of the entire world! There is a lot of money to be made and there are options to control your risk too.

* Technical Analysis: Apart from predicting movements based on current events, analysts use statistics to predict movements. They create charts and identify patterns that repeat. On an average, these people make more returns than the market because the market tends to behave in similar ways repeatedly. Ensure that you are in touch with a technical analyst and make a decision only after considering both fundamental and technical analyses.

Forex trading requires understanding of the marketplace and the instruments available. Explore your options well. Perfecting the marketplace is a utopian strategy that can get you stuck in an endless analysis paralysis loop. Most investors tend to get better with time. Start with smaller bets and ensure that you do not risk too much on one bet. Spread them over time and currencies for steady profit.

Forex Trading Articles

Five Forex Tips To Help You Make Money in Currency Trading

If you want to invest into something that could really be worth your time and effort, perhaps you’d consider getting into forex trading. This is really a great way to make money, even without doing a lot to achieve it. But diving head-first into the world of forex currency trading without knowing anything about it could be very risky, and this could cost you everything that you’ll invest in this endeavor. In order to be successful in this field, you need to know some of the best tips that will not only help you make money,but will guide you to long run success in currency trading.

There are actually a lot of forex tips to help you make money in currency trading, but not all of them are useful. You also need to filter the tips that would apply to your situation, and would actually lead you to success. This article will walk you through five of the best forex trading tips to help you make money,and ultimately make your venture into the world of forex a success.

Tip #1: Don’t gamble
Forex trading and gambling are two different things,and the lattershould never be used with the former. All your moves and actions in Forex trading strategies should be calculated in order to avoid losses.Of course, there are times that even when you calculate your moves, you’d still incur losses, but at least you didn’t lose big because of your unwarranted hunch. Attempting to trade without analysis and market study is like playing a game of chance.Of course playing a game is quite fun and interesting,if it remains as a game and not a real-world event. If it involves money, as you’d expect with forex trading,this already turns serious, so losing your money won’t really be fun anymore.Don’t risk even a cent without thinking your moves through first.You might get lucky at some instances,but as you continue with your uncalculatedmoves,you’ll run out of money a lot sooner than you think.

Tip #2: The current trend is your best guide
there is a saying among professional traders and investors which is “the trend is your friend” If you want to be successful in the field of forex trading,always go with the trend, especially if you’re just starting to know about things related to forex. The trend is indeed your friend,because this will help you maximize all your chances for success. Of course, there are instances that you’d like to trade against the trend,based on your calculations or your projections.However,going against the trend would require more attention from you,wherein you’ll need to have nerves of steel and sharp skills to reach your goals.You can try to go against the trend once in a while if you have already amassed a good amount of experience(and hopefully, a good amount of money) while you were tradingwith the trend.

Tip #3: Trade with a calm, straight face
When you’re trading with your emotions, you’re prone to risking all you have because you’re disappointed with how things are going.You’d also be more hesitant to take risks,even if you’re going with the trend, because you’re emotions tell you that you’re just risking your investments. Being cautious is not really a problem, but doing so most of the time won’t really bring you anywhere.Keep a calm straight face and make reasonable moves to avoid digging a deeper hole for your forex account.Never try to do revenge trade,or trying to avenge a lost trade in just one go.When you’re winning, don’t be greedy and put all your eggs in just one basket. Always remember to think clearly in order to avoid overreaction, as it could clearly cost you a lot of money in the end.

Tip #4: Do your trades on the right time frame
One common error that could lead to great loses in terms of forex trading is not choosing your most comfortable time. Forex trading is just like other duties or activities that you have in your life.If you feel that you’re not in your element, chances are high that you’d be doing bad moves and be making bad decisions.Choose the right time frame so that you are comfortable enough to analyze the market.This way, you’d be able to place and close orders at your own pace.

Tip #5: Practice with a Forex demo account
Before you invest your money, you should first have an idea how the forex system works.In forex trading, you’ll be able to know more about these by practicing on a Forex Demo account.Never invest all your money into a real Forex account without trying out the demo account.If you do,then you’re doomed to fail because you really don’t know what you are doing. By using a forex demo account, you’ll be able to gain knowledge and build discipline as you practice trading.

Forex Trading Articles

Forex Currency Trading Software How to Find The Best Trading System For You

Forex Currency Trading Software: How to Find the Best Trading System For You

The Forex industry is full of gimmicks and so called Forex “gurus” who don’t even trade themselves! Therefore A lot of forex traders are misinformed and have a extremely hard time finding the best Forex currency trading software.

In this article I would like to discuss with you a list of practical tricks on how to find the best Forex currency trading software for you.

Always back test a new trading strategy: Manual backtesting is far more competent than automated backtesting. The reason why I say this is because when you manually back test a strategy you understand the strategy more profoundly and you become one with the strategy.

What’s more, you will also be able to spot mistakes and weak points within the system that automated testing software cannot discover.

Do your homework before you put that credit card out! : This is an essential step. Before you purchase any trading system you need to make sure you do your homework and shop around for other trading systems.

Be very careful with the very low-priced trading system because as they say “You get what you pay for”, typically the $97 trading robot will not do anything but lose you money.

When you choose to buy a trading system make certain to get in touch with the seller as soon as you acquire it. This way they will notice that a new customers just joined. This will make their customer assistance make up and stand by in case you have any problems.

Get to know the person behind the Forex currency trading software you decided to buy: Whenever I buy a product I always want to know more about the company or the creator of the product. Simply because I want to know the level of expertise of the creator or creators.