Thursday, October 30, 2008

Currency Trading Software - What Are The Benefits Of Using One?

Most successful currency traders on the Forex market use some sort of Currency trading software. It's nearly impossible to trade efficiently on the forex market without such a software, but what are the actual benefits of such a software?

Benefits of Using an Automatic Currency Trading Software

1. The biggest benefit of using a Currency trading software is that it can trade for you automatically. This means that even if you're not sitting at your computer, you can still make transactions and earn a profit. Since the forex market works around the clock, you make the most of the time.

2. A currency trading software can work in multiple markets at the same time, which is something a human being cannot do. It's as if you double or even triple your efficiency.

3. A good currency trading software can make transactions in a split second decision. It's a software so it's much faster than you can be and can take advantage of opportunities in a much faster way.

4. Using a software means that your trading is now based on strict and established mathematical models and comprehensive analysis of the market situation. This means that the risk of your transactions should diminish.

5. By using a trading software you can save time on market analysis, following the market's parameters, enjoy watching data in a structured and easy to understand format on your screen, and save a lot of time and effort.

Overall, it's important to use a currency trading software since the market is complicated and fast. You need to be on top of your game in order to succeed.

To read more currency softwares, click here: Currency Trading Softwares Review.

John Drummond works from home. He writes often on business, trading, and finances. There is more than one forex trading software. To read John Drummond's review of the 2 best ones, click here: Automated Forex Trading Software.

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Tuesday, October 28, 2008

Trading Forex the Smart Way

I'm going to share with you some tips for trading forex the smart way. This is a great market place to get involved in because you are in the potential of making great sums of profit all from home. That's not to say it's easy, but you're given an opportunity to build your own wealth and not rely on your "boss" for it.

  • Demos: A lot of experts don't recommend this, but they have forgotten what it was like when they were new. As an expert trader making huge sums of money already, a demo account really isn't going to help you. If you're new or someone that isn't make that much profit a demo account can really help you get your head straight. The first thing it does is allow you to properly learn your trading platform for optimum use. Secondly, it allows you to develop those routines that lead up to trading. These routines are the things that make you the profits. Lastly, it allows you to test strategies out without the fear of losing your money.
  • Emotion: Emotion is your enemy in this business. You have to recognize what emotion is meant for. It is designed from primitive human caveman. Your emotions came out as a way of protecting you. You felt fear and anxiety as away of allowing yourself to survive. Those emotions aren't going to help you when you're trading.
  • Software: All the big trading firms and banks have software, so you should too. It can make the process of trading a lot easier and allow you to do more important work.

I'm currently giving a 7 day free forex course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.

Morning commuters walk past the New York Stock Exchange October 28, 2008. U.S. stocks rose on Tuesday as investors followed Asian and European markets higher, buying shares beaten down in recent sessions and putting aside concerns about a plunge in consumer confidence. (Brendan McDermid/Reuters)Reuters - Hopes rose on Tuesday that the United States, Japan and Europe will cut interest rates to ease the pain of the financial crisis, and battered U.S. stocks surged 10 percent despite gloomy news on the economy.

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Monday, October 27, 2008

Day Trading

There was a time when day trading was considered as the forte of the professional stockbrokers and avid stock market followers. With the growing popularity of online broking, now day-to-day trading is no more a specialized area of investment. Investors with little or no knowledge of the stock market are doing day trading in a big way and there success rate is quite remarkable. Gone those days when day traders needed to devote significant time for trading on day-to-day basis.

With the encroachment of online trading, you have the same flexibility and freedom of doing day trading as with any real form of stock market investment. You can choose a particular time of the day of your convenience to get on the horses of trading. With the online stock broking organizations, you can even pre program your investments and schedule your stock buying and selling actions. So, with online stock market investing opportunities things have become much more convenient.

A common notion about day trading persists that it is total gambling. But, the truth lies far away than that notion. It is actually a calculated risk that needs to be headed. Like any other investment, you need to do your research to trade stocks as well and day trading is no exception to that. You can just go ahead and buy a few stocks simply because your friends are having them. They might have invested at a particular time when the stocks were promising, they might be doing that on the basis of some news in the market or they can have a long-term investment plan.

In fact there are host of other factors that determine the prospects of a stock. You need to set your priorities and do your research based on your resources and goal. As far as day trading is concerned you need to intensify your research, as the risks are greater here, you have just one day, in fact to be precise a few hours to make your profits. You dont get a log time to recover or make up for the losses. So, just be wise and get professional helps to make the best deals.

Many online brokers are offering great online stock market investing solutions for all types of investors. Whether you are a new in stock market investments, a long time investor or a professional, they have perfect investment plans and services for you. They definitely negotiate over the terms and facilities provide to you and hence, try and fetch the best deal out of them.

The best deal lays getting stock market investment solutions at low cost. Their Automated Investments may be priced as low as $1 per trade and for the real time trades as low as $1 to $3.5, irrespective of the volume and type of trade i.e. whether you trade stocks on market or limit basis.

Another advantage of investing online after a thorough research work is that, you will find some online brokerage companies provide automated investment plan and they even allows you to buy fractional share for expensive stocks for any amount. There is no lower limit to trade in these stocks as US traded stock or ETF can be purchased fractionally. You may buy of an $80 stock with $20.

However, they are features secured transactions. Your account is absolutely protected from hackers and other frauds. Moreover, insurances with cash coverage are additional benefits provided by few online companies. They adhere to stringent security practices to keep your personal and account information in encrypted databases.

Moreover, opening an account to trade stocks online is quite easy. It takes merely five minutes to complete the process and just a few clicks can kick-start trading online.

Open an account with sogoinvest
If you are new to sogoinvest: Online stock trading investment

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Thursday, October 23, 2008

Day Trading For A Living

I was reading an article today which maintained it is not possible to make money day trading. Naturally this piqued my interest because I day trade for a living and last time I looked I was doing OK.

The article began by making the very valid point that the vast majority of day trading articles are not written by traders at all, but rather they are written by people marketing systems with hypothetical track records created with the benefit of hindsight.

That is absolutely true.

It is equally true of articles about every other trading style in commodity futures, stocks, forex and options. Whether it is covered calls, trend following with our extra special absolutely never seen before new indicator, swing trading, pairs trading, spread trading, or selling naked options, or any other style, it will often have a hypothetical track record. The time period of the method being promoted is absolutely irrelevant.

The article quotes CFTC rule 4.41 which every futures trader has seen many times. It says:

"Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown."

This pertinent warning is not confined to day trading systems. It is applicable to ANY trading system in ANY time frame where hypothetical or simulated track records are provided.

You see, most system developers research historical data to find high probability setup patterns. They develop indicators and trading rules to exploit these patterns. There is nothing wrong with that, so long as it is realized that the resulting system is optimized over this data set. The only valid way to test the system is on a completely different, independent set of data. Often a system that looks spectacular on the data the developer was originally working with will fail miserably when applied over a different period or in a different market.

The article went on to say that all day trading systems lose because "volatility in short term time frames is random and prices can and do go anywhere, meaning that if you try and use support and resistance levels they wont help you with your trading signal or help you get profitable market timing. You therefore cannot get the odds in your favour and will lose over time. This is fairly obvious when you consider that the price in any financial market is made by a vast diverse group of traders".

Well, that is quite a statement. The fact is "volatility" exists in any time frame and, by definition, it is random in the time frame considered. Indeed, prices can and do go anywhere, whatever time frame you are looking at.

Support and resistance levels are identified from trading charts. If no time scale is displayed it is impossible for any trader to differentiate between a 1 minute chart, a 1 hour chart, a 1 day chart, a weekly chart or a monthly chart if they are not told which market they are looking at. The fact is all charts, in all time frames, exhibit similar characteristics. You will find trends, ranges and most importantly support and resistance levels. It follows that whatever edge you think you can get from identifying support and resistance levels in one time frame is equally applicable in the other time frames too.

Most successful traders use strategies which either (a) sell support and buy resistance, or (b) buy breakouts through resistance and sell breakouts through support. These core strategies are available to any trader working in any time frame.

The distinguishing feature of the day trader is that (s)he always exits trades before the end of the trading session. No positions are held overnight or over weekends. By adopting this approach the trader minimizes "event risk" which is the chance that some dramatic event will so disrupt the markets that you suffer a major loss. (Stop losses are ineffective in this scenario because the market "gaps" through your stop loss level.)

The REAL drawback to day trading is trading costs.

Say that in some hypothetical market, the typical trading costs are commissions (2 points) and slippage on entry and exit (1 point each). So for each trade, trading costs average about 4 points. Now, if a long term trader typically targets 100 points, trading costs would be 4%. For a medium term trader targeting, say, 40 points trading costs are 10%. But for a day trader, targeting 8-10 points, trading costs are 40-50%! Obviously, if a trader is determined to trade this market, then medium to longer term trading is the only sensible option. It would not be surprising for a trader focussed exclusively on this market to form the opinion that day trading does not work.

Clearly, then, not all markets are good for day trading. If the average market movement is just a few points, the trader will be unable to find short term trades which cover the trading costs. Even where the trading costs can be covered, they often turn what looks like a good system into a poor one. This is because, as a rule of thumb, trading costs are nearly always deducted from theoretical profit in successful trades, and added to the theoretical loss in losing trades. This significantly changes the average win to average loss ratio for the system.

To prosper, the day trader seeks out volatile markets where the the projected trading costs are a small percentage of targeted gains. The Expectancy of the system used, allowing for the impact of trading costs on the average win to average loss ratio, must be positive.

Fortunately, many such markets exist. The rather stodgy forex market, with its high trading costs, is NOT a good example. However, there are commodity markets and many individual stocks which exhibit the required volatility.

David Bennett trades US commodity futures from his home on the Gold Coast in Australia. He provides coaching and mentoring services for people wanting to start trading for themselves. Visit http://www.12oclocktrades.com to read more futures trading articles.

Former Citigroup Inc. Chief Executive Sanford Weill is seen in this September 25, 1997 file photo. (Jeff Christensen/Reuters)Reuters - Former Citigroup Inc Chief Executive Sanford Weill is in talks to launch a private equity fund that would invest in beaten-down financial companies and assets, the Wall Street Journal reported.

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Wednesday, October 22, 2008

"Leaning" on Bids and Offers - How Pros Really Trade

This is one of the setups which professional day traders look for on a daily basis.

Leaning

"Leaning" is a term used by day traders. It refers to leaning on a bid or offer. In other words, if the market has been ranging between 5 and 10 and it's currently trading 9 bid / offer 10, traders who are short at 8 and 9 are leaning on the 10s. They are hoping that offer will hold. If it looks like it's going to go, they will try to buy 10s as they are leaving. Other traders are also looking to buy 10s because they know shorts are "leaning" on them. This means 10 will probably be a good spot to get the edge. However, this is also a spot where big traders make moves.

A trader might be long 8s and be the offer at 10. When it gets heavy bid at 9, he lifts his offer at 10, then turns around and bids 10 (this is called flipping) and this causes other traders to instantly buy at 11 and 12. Virtually no contracts trade at 10. In this situation, the shorts are up the creek. They were looking to risk 1 or 2 ticks and now they are forced to cover for a 4 or 5 tick loss. Other people who had no shot at 10s are going to buy 12s and 13s. This is why you must anticipate. If you think it's going to go, just buy the 10s. If you don't get them, you don't want to be buying 14s. 14 is where the guy who flipped is going to be selling. If you miss it, you miss it.

By the way, most of the time these spots are not support or resistance levels on a chart. There is no technical reason for someone to buy or sell there. You would never know traders are leaning on the price unless you know how to read the order flow. And if you don't know traders are leaning on a price, you cannot take advantage of that setup.

John Grady has been profitably trading futures and stocks for over twelve years. He has documented proof of his track record and has written "No B.S. Trading", a book which explains, in detail, how real professional day traders make their decisions. For more information on how to become your own day trading system, go to http://www.nobsdaytrading.com

A tourist bus passes a Yahoo sign in San Francisco, California October 21, 2008. (Robert Galbraith/Reuters)Reuters - Yahoo Inc posted a sharply lower quarterly profit on nearly flat sales, but its shares rose 8 percent on the Internet media company's plan to cut at least 10 percent of its work force to save costs.

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Monday, October 20, 2008

The Stock Market's Best-Kept Inside Secret - The E-Mini

I received an interesting magazine (or, maybe better described as a catalog) in the mail the other morning entitled "Home Business Connection". It was apparently sent to me because my name is on some mailing list. Beautifully designed and bearing a price tag of $5.95 per copy, I was tempted to open and read what it was all about. It is mostly full-page ads of 'home business' ideas...one after another, covering every possibility from the proverbial stuffing envelopes to much more sophisticated endeavors. Of course, each was headlined with bold declarations of being the "world's greatest home business" with promises of getting fabulously rich quick "absolutely guaranteed"! As I read through some of the ads (many were actually feature articles about certain types of home businesses), I couldn't help but compare all of them to my 'home business'.

Most were of the conventional type: find a product (usually made by someone else) then set up a way to promote, advertise and market it. Most were centered mainly on MLM or the Internet as the way to get fabulously rich. None bothered though, to explain how difficult it is to build and keep a good MLM downline, or, to get traffic to a web site. Made me wonder if those ads were directed to people who've never been 'round the block' at all, those whom it would be easy to put stars in their eyes with a little talk about making fabulous money in very short order? But, it is a good collection of home business ideas ...for anyone to peruse.

My home business is so simple I still have difficulty sometimes believing it myself. I sit down at my home computer each morning, turn on my e-mini trading charts and start watching for a good trade signal. What? You've never heard of an "E-mini"? Well, don't feel bad; I hadn't either ....until early 2002, even though I had been an active trader of stock options for over twenty years by that time. You see.... the 'e-mini' was introduced into the stock market when the Internet and personal computer were really coming into their own...back in 1997, as a trading instrument that average folks could afford to learn to trade, and take active roles in the stock market.

Most folks don't know much about trading; they think you just invest in stocks. That's all that the mutual funds and stock brokers have ever talked about (in their TV commercials and all of their advertising), but, in reality, those guys are not investors themselves...they are traders. But, they convince the rest of us that the smart thing for the public to do is turn all of our 'retirement dreams' over to them and let them manage our 'investments' for us...because they are the "professionals". Meanwhile, they are trading everyday...with their clients' money, but the account managers and the mutual fund company pockets all of the profits. Their clients (in those mutual funds) only get a mutual scr*****!

Oh, the typical mutual fund does realize [on average] about 10-15% appreciation growth of each portfolio per year, but the stock market [itself] -on its own, has historically done that, even through all of the Wars, Great Depression and even with 9-11 thrown in! Makes you wonder if brokers and mutual fund managers are, in reality, worth anything at all!

Anyway, back to the home business I found in trading E-mini's: I trade a couple of hours each morning, making 3 or 4 trades on my computer and put as my daily average goal about $500 dollars into my pocket. I never get greedy and try to stretch it....even though many days the market easily would let me. Just a nice little daily cash flow generator...that lets me grind out $500 a day, $10 grand a month and $125,000 a year. Not bad, eh? It really is that simple. The market is always there for me...every morning. I don't care whether it is going up (bullish) or down (bearish), I can make money either direction. (Something else those brokers and mutual fund managers will never tell you, or explain to you!) They'll just tell you to bring them as much money as you can and be prepared to invest with them for the long haul. 'Hold...and Hope' - that's the best the mutual fund investor has going for him or her.

If you've been thinking about or looking for a little home business idea that can generate a little extra cash flow for yourself, you'll enjoy checking out trading "E-mini's". You're invited to visit my web site where I provide 2-3 hours (a 'road map' for you) of free information on how you can get started trading e-mini's.

Don't bother to call up a mutual fund manager and ask him or her about it, though. They'll just laugh at you.

Mel Hardman
http://www.melhardman.com

Sign stands outside unsold new home in a subdivision northwest of Albuquerque, N.M., on Wednesday, Sept. 24, 2008. The Commerce Department reported Friday, Oct. 17, 2008, construction of new homes plunged by a bigger-than-expected amount in September as builders slashed production to the slowest pace since early 1991. (AP Photo/David Zalubowski)AP - The nation is on track to build fewer homes this year than at any time since the end of World War II, adding to the woes of an economy that analysts said Friday has almost certainly entered a recession.

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Friday, October 17, 2008

Forex Trading Strategies That Can Change Your Life

Do you want to trade in the exciting currency exchange, known as the forex market? If you do, there are many things that you need to know, One thing is certain. You need to known which strategies are the best strategies available. Which strategies allow you to make more consistent and biggest profits. Here are the top three trading strategies that professional forex traders use.

The first strategy is the scalping strategy. This strategy has very little risk. But because it has low risk, it has low margin of return. That may seem like a downside, but it steady, repeated profits. To use the second strategy you must first establish a position on a currency pair. Afterwards, you then place a buy or sell stop order to that trade. If there is a large price movement, you will then gain or lose, based upon the change for your pair.

If you want to make profits, follow the market trend. You can see trends by using the something called a pivot point. Assess the forex market to see trends. Once you get familiar with this, you can then place your short to long position based upon your directional bias.

The third strategy is called the three day rolling pivot. The rolling pivot range, acts as a reference point for entering and exiting trades. It shows you how to exit trades that you are losing. It also shows you how to stop a winning trade from becoming a losing trade.This strategy is an easy to follow system.

These strategies should help you to become a better forex trader and to make bigger and more consistent profits.

Lane shows people about Forex Trading Strategies by writing articles about Forex Trading and many other topics.

Billionaire financier and Berkshire Hathaway Chief Executive Warren Buffett greets shareholders during the Berkshire Hathaway Annual Shareholders meeting in Omaha, Nebraska in this May 3, 2008 file photo. (Carlos Barria/Reuters)Reuters - Warren Buffett tried to persuade demoralized investors the U.S. stock market is not falling off a cliff. Not everyone was immediately convinced.

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Thursday, October 16, 2008

Simple Online Business - Earn Big Profits in Less Than 30 Minutes Per Day!

This is a simple online business which can be learned by anyone, only requires small capital and is all about working smart and learning the right education rather than working hard. After a learning period of about two weeks, you can run it in about 30 minutes per day and no selling is required!

This business involves you taking responsibility for your destiny and allows you to build a great second or even life changing income. If you have the right mindset, a willingness to work hard and a few hundred dollars, you're all set to get started.

The business is becoming a forex trader from home. Hang on! You may say, I couldn't do that!

Well the answer is you can, as everything about this simple online business can be learned.

Let's check out the advantages which are numerous:

- You don't need a college education and can learn this business in about 2 weeks

- You can then run the business in about 30 minutes per day

- You only need an internet connection, a computer and a few hundred dollars

- No selling is required and no stock

- There is never a recession as one currency goes up, another must come down and vice versa

- You can take holidays when you wish

- There are opportunities everyday

And now the really big advantage which gives this business such profit potential, you can leverage your investment.

- Put down $500 with a broker and they will allow you leverage of 200: 1. This means you can trade $100,000! This leverage is granted to you as soon as you open an account and you can use it to your advantage.

Of course, leverage increases rewards and also increases the risk - but if you have the right risk control and mindset you can leverage your money and make huge gains.

Currencies trend for weeks, months or years i.e. they move in the same direction and these trends are the ones you need to lock into - cut your losses quickly and run your profits.

The best way to trade is to use forex charts and learn to spot repetitive chart patterns and this is a learned skill.

You then simply buy or sell when the odds are in your favor. These formations can be learned in a few weeks and will put the odds on your side when trading.

The real difference between winning and losing is risk control. You must take your losses quickly and hang on and hold your profits but this again is a learned skill.

This is a business where your income can be a great second income or even a life changing one in time.

Becoming a professional forex trader is easier than most people think and doesn't require much to start but has huge potential.

If you have never considered being a forex trader before and you are interested in a simple online business, then this one is hard to beat, in terms of what you can get for a modest investment of time and money.

Explore more about being a forex trader from home and you maybe glad you did.

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For free 2 x trading Pdf's with 90 of pages of essential info and a Currency Trading Course visit our website at: http://www.learncurrencytradingonline.com.

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How I Became a Forex Trading Professional

All my friends ask me, "hey how do you always have so much money". I always respond with "I do forex trading from home", which they look at me with such confusion. If you are reading this you probably know what forex trading is already if not, I will quickly go over it.

Forex trading is the stock market for currency. You trade each countries currency the same way you would do it with stocks. Buy low value currency and sell it when it gets to a higher value. When you do this you make an easy profit, and in my case a lot of money.

Now you probably wonder how I became a forex trading professional and the secret is simple. If you want to be the best, at some point you need to learn from the best. You cannot get anywhere in life if you don't challenge yourself or try to get better. It was no different for me when I first started trading forex.

I was frustrated with my slow progress and losing money so I had to look for another way to succeed. I joined a website that was run by forex trading professionals who were looking to teach others how to succeed. Well I felt this was the perfect opportunity so I paid the membership fee and started learning from day 1.

Within a matter of weeks I was making my first profits and had already made enough to cover the costs of my membership. From that point on I kept learning more and more and what would you know - I made more and more money!

So even though my story was short remember this, "if you want to be the best, learn from the best!"

Like I said before, I am now a forex trading professional because I learned from the best.

Want to be like me? Click here and learn from forex trading professionals!

Traders work on the floor of the New York Stock Exchange, October 15, 2008. (Brendan McDermid/Reuters)Reuters - Stock index futures cut gains in choppy trade on Thursday as persistent worries that the global economy is headed for recession drove a global equity sell-off and investors turned cautious before key economic reports.

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Tuesday, October 14, 2008

Emini Trading Systems - Albert Einstein and Emini Trading Systems

Albert Einstein was born in 1879 in a small German town of Ulm. He died in 1955 in Princeton, a small town in New Jersey, USA. He was a theoretical physicist, first and foremost, although it is not so unusual these days to see questions "what would Einstein do?" related to things that have little to nothing to do not only with theoretical physics but with science in general.

Could thus Einstein offer any insight into trading emini futures markets? Such as the futures for the S&P 500 index?

The full size contract for this financial market was established in 1982, its emini version, and the first emini market at all, appeared on the financial scene in 1997, in both cases a few decades after the death of the fellow in question. It seems therefore rather obvious to assume that Einstein would have absolutely nothing to say about trading emini markets, or emini systems, for that matter.

But this would not be entirely true. In fact, we believe, that this would be pretty wrong. For while Einstein was a physicist first and foremost throughout most of his active professional life, he was also a wise man and his profound statements about scientific matters can be applied to things outside science as well. Or, at the very least, some clear parallels to Einstein's pronouncements on science can be found in the world of emini trading systems.

Let us use two rather famous Einstein quotes to prove our assertion.

The first of these quotes is: "I want to know God's thoughts... the rest are details." When designing emini trading systems, or systems for other markets, you want to know what makes these markets tick, what drives their dynamics, what determines their behavior. In other words, you want to know Mr. Market's thoughts for it is he that rules them. Knowing his thoughts is like knowing God's thoughts in the matters of science. He is the utmost authority of the markets. He, Mr. Market, a mythical figure that even the least religious of traders believe in. You want to know his thoughts to design systems that the market forces respect, and vice versa, that respect these forces, that properly reflect these markets' nature and their intraday or longer term behavior, depending on the system primary time frame. You want to know what's essential as opposed to what's spurious and accidental. If you approach designing your emini systems this way, you stand a very good chance to come up with robust and profitable ideas.

Another famous Einstein quote, that perfectly applies to designing emini trading systems, is: "Things should be made as simple as possible, but not any simpler." There are many simple systems out there. Such as, say, the one based on trading the breakout of the first hour range, that for reasons inexplicable to this author, retails in the vicinity of $1000. Good luck making money with it, though. It may turn out to be a painful experience. The reason this system is not particularly good is because it is too simple. Systems like that are fine for educational purposes, but using them for trading in their crudest form is not very advisable. A good, sound, robust emini system needs to employ filters that would limit circumstances that are less likely to lead to a profitable outcome. Not all breakouts of the first our range, to use our example again, are created equal. Systems that are too simple usually do not employ any filters. In fact, some of them may even not be amenable to imposing filters that could improve them.

As you can see from these two examples, Einstein would certainly have quite a bit to say about how to design a profitable, robust emini trading system or other trading systems, for that matter.

If you would like to experience trading an emini futures system designed using ideas Einstein would approve of, please visit this page: http://www.eminimethods.com/system_g4.html

Waldemar Puszkarz, Ph.D., is a web veteran with 15 years of web surfing under his belt. By training, he is a theoretical physicist, but his interests are much broader than science and include trading financial markets, sports betting, poker, and researching online business opportunities. He is also an avid book reader and sports afficionado. Currently he is making his living mostly as a day trader. He has been in the trading trenches for almost a decade during which he has traded a variety of financial instruments. He is the owner and webmaster of Eminimethods.com (http://www.eminimethods.com) which provides free common sense trading education and simple trading systems for e-mini and stock markets as well as reviews of honest online business opportunities in Meet HOBO section of his site.

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Foreign Currency Trading Tactics

I'm here to share with you a little about my foreign currency trading experiences and the tactics I learned from that. This market offers such an opportunity that is much more than monetary. The chance to tell your boss that you quit is one of the best feelings ever. Knowing you can make money from home, completely on your own skill. The ability to know you don't have to go out and pay outrageously high gas prices just to earn a living. This is by far the best decision I've ever made in my life, regarding my finances, and I highly recommend it to other people.

Since this is a business that relies on you and you alone, there needs to be somethings worked on. You don't have a boss to tell you what to do or to keep you in line, so you're your own boss. I suggest the first thing you try to accomplish is a routine. A routine will allow you to get the most work done without wearing yourself out. You need to try out somethings and learn a little, but your main goal is to figure out what is more important and incorporate it into a routine.

With that said, foreign currency trading isn't this complex and complicated task for making money. Don't allow yourself to build it up in your head as hard. It's often the simple tasks and strategies that will make you money over the long term. You need to focus on keeping it simple and everything will work out.

The Forex Tracer is a tool that can really simplify your working since it is an automated tool for finding good trades. You're not always in the position to watch over the market 24hrs a day and there is no reason for you to miss out on good trades. All traders use software, so you need to get some too.

Learn more at the Forex Tracer Review

Staff at the Tokyo Stock Exchange work at the bourse in Tokyo October 14, 2008. (Issei Kato/Reuters)Reuters - The Nikkei average soared more than 14 percent on Tuesday, the biggest one-day gain in its 58-year history, after governments around the world pledged to support struggling banks and restore confidence in the financial system.

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Monday, October 13, 2008

Day Trading Skills - Tips For Becoming A Skilled Trader

Despite the dire caveats by the Securities and Exchange Commission cautioning investors against the controversial yet potentially lucrative world of day trading, people attempt to try and attain day trading skills, and a day trading stock tip is literally worth it's weight in either gold, or dross! Below is some information on learning trading techniques, the risk involved, and tips for becoming a proficient trader.

Just what is day trading and how do individuals acquire day trading skill? Day trading is the system of rapidly buying and selling stock throughout the day in order profit from the marginal fluctuations in the market for that specific day. In the ideal world, day trading strategies permit investors to secure profits from the tiny increases in the market.

Day traders watch a specific set of indicators when determining whether a stock is suited for day trading. First, the stock should have high liquidity. This means that the stock in question has a large number of buyers and sellers. The liquidity allows day traders to rapidly acquire and then sell stock. Liquidity is determined by the volume of transactions on the market, the number of outstanding shares, the total number of shareholders and the number of market makers. Almost all stocks on the NYSE and NASDAQ have a high degree of liquidity.

A day trader also watches volume individually, in addition to using it as criteria for liquidity. To be eligible for day trading, a stock needs to trade at least 500,000 shares each day. Stocks with 500,000 trades a day or more enable the day trader to acquire or sell a large amount of stock without greatly altering the price of the stock. Volatility is another factor in evaluating a stock for day trading. The word refers to the actual or expected price movement of the stock. This movement is up or down over a period of time. Day traders study the pattern and volatility of stocks over an individual day. Stocks that change price many times over one trading day are ideal candidates for day trading. A fluctuation of at least $2.00 per day is recommended.

Finally, a day trader evaluates the price transparency of stock. This term refers to the ability to gather information on the order flow of a stock. Also called market depth, price transparency helps the day trader calculate just how much money there is to be made on a certain stock. The NASDAQ II quote system offers data on all bids. Day traders who are able to access the NASDAQ level II quote screens can evaluate the performance of a stock and watch its swing in price.

While these trading practices are entirely legal and entirely ethical, they are highly risky. Day traders generally buy on borrowed money with the hope that they will realize higher profits through their acquisitions and sales. People who are determined to be "pattern day traders" by the NASDAQ and NYSE must have at least $25,000 in their accounts and can only trade in margin accounts. Margin accounts are brokerage accounts in which the broker lends the investor cash to purchase securities. If the value of the stock drops a great deal, the investor is required to deposit more cash to cover the margin or sell the stock. The SEC warns against day trading and acting on a day trading stock tip, and has taken many steps to inform people of the corresponding risks.

The first few months, a huge majority of day traders suffer tremendous financial losses and only a few make it through to become profit-making day traders. For this reason, day traders should only invest funds that they can afford to lose. They should never invest money set aside for necessities like living expenses or second mortgages.

Keep in mind that day traders do not own stocks for longer than a few minutes at most. Stocks are never kept overnight because of extreme dangers of prices changing to the detriment of the trader. Day traders do not invest, instead, they speculate on the movement in price of a stock throughout the day.

There are lots of websites whose sole purpose is to profit off those who are trying to find a day trading stock tip. These websites assure rapid results and offer hot tips to their members for a fee. The sources are most often paid to make these recommendations and are best avoided. Seek the advice of a proven professional, and take plenty of time to learn trading strategies for longer term success. Remember, there is no free money, and day trading skill is often paid for with enormous stress and cataclysmic losses.

For a wealth of free info on understanding stock trading, check out the articles at Stock Trading Information Resource, or make sure to read The Wall Street Journal - my #1 pick for stock information. Ron King is a web developer; visit his website Authoring Articles.

Copyright 2008 Ron King. This article may be reprinted if the resource box is left intact and the links live.

A trader gestures on the floor of the Philippine Stock Exchange (PSE), where shares ended one percent higher in today's trading, in Makati City, Metro Manila October 13, 2008. (Cheryl Ravelo/Reuters)Reuters - Stock index futures were sharply higher on Monday, pointing to a rally on Wall Street as a flurry of moves by governments to restore confidence in the global financial system spurred a rebound in stocks worldwide.

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Friday, October 10, 2008

How To Stop The Bleeding - Why 95% Of All Traders Fail

I was in a trading forum the other day and a new trader asks the question, "Does anyone make money day trading?" What a great question! The fact is that 95% of all traders lose money. That's right...they blow their account out and never make money. Quite shocking, isn't it? But if the above statement is true, that means that 5% of traders do, in fact, make money. The question becomes, "Why do such a small percentage of traders in the vast universe of day trading make money?

Undercapitalized

It is true that you do need money to trade. How much is enough? For the beginning trader, more is better. There is going to be a certain amount of mistakes a beginning trader makes no matter how careful he or she is. Trading firms have margin minimums to help protect the trader (and the firms) from immediate disaster. My thinking is that those minimums are too small for the beginning trader.

Success In Another Profession

A good many traders come from a profession that they are already successful in. They come into the day trading world with a sense that they can do anything. And because they are already successful, they usually come into the trading game with a fair amount of money. Trading requires an entirely different skill set than most any endeavor in the world. Just because a person is successful in one aspect of their life, they may not be successful day trading. There have been documented cases of doctors, lawyers, or successful salespeople who did well in their chosen profession only to fail dismally day trading.

Instant Gratification

In our fast paced, get every thing you want without waiting, society, it stands to reason that anyone considering trading would come into it with the mind set that trading is easy and there is money to be made at the drop of a hat. That simply is not true. Trading requires a tremendous amount of dedication and screen time to become consistently profitable. Trading is not one of those things that can be mastered with little or no work.

Poor Money Management Techniques

Finally, poor money management techniques contribute to many traders inability to consistently make money. There have been many books written to cover this aspect of trading. The scope of this article is not to re-write those books but to point out that money management is much more than taking a trade and deciding where to place stops and limit orders. The real issue is how a trader deals with all of the influences a trader faces while in the trade. If a trade is up, do you move your stop? If so, when, and by how much? If your trade is approaching a critical resistance area, do you cut the trade short? There are so many different ways to manage the same trade. How a trader manages the trade will, to a great degree, determine if the trader is profitable.

In summary, these are just a few reasons why most traders fail. The best thing for the new trader is to come to the table with few, if any, pre-conceived ideas about trading. Then develop the necessary skill set specifically designed for trading. Those skills can be honed by studying, screen time and reading books that help the trader to have the proper mindset. Is it difficult to accomplish? Yes! But the rewards are well worth the effort.

Ron Lewis operates http://www.futuresinvestingmadeeasy.com an educational blog about investing and trading. For more trading tips and investment strategies, or to contact the author, or to receive the article "HOW TO MAKE $12,000 A MONTH ON A $5,000 ACCOUNT," visit his blog at http://www.futuresinvestingmadeeasy.com and request the FREE gift in the upper right hand corner.

General Motors Corp Headquarters is seen along the Detroit River in Detroit, Michigan September 17, 2008. (Rebecca Cook/Reuters)Reuters - General Motors is in preliminary talks about a possible merger with fellow U.S. automaker Chrysler, The New York Times reported late on Friday.

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Currency Trading Education Tips

I wanted to take the time to share with you some of my currency trading education tips. This will help you learn the important parts of this business a lot better. Knowing the basics just isn't good enough. It's often the little things that make up the trader and make them a good trader. Too many people end up losing a fortune of money because they're just not prepared for the little things. I've been trading a long time now and I learned a lot about what it takes to be successful at this. I'm going to share a little of what I've learned during that time.

Everything you'll learn in a typical currency trading education course or book is for an ideal state. The "perfect" scenario. It doesn't exist and that makes a lot of the training completely idealistic. Most things will work on a regular calm day. I think an important skill to get down is identifying with things will get chaotic and volatile. I found the regular news was good enough for that. If you watch it, they'll talk about economic information, which is typically announced at a scheduled time. If there is an announcement coming up about the Federal Reserve interest rates at 2pm, that means the markets will be quiet up until that point and at 2pm it will go volatile. You'll want to avoid these times.

Having software is an important part of properly competing in this market. You're going to be going up against big firms and banks that have a staff to work the market 24hrs a day. You on the other hand are an individual. By having software it can automatically watch the market and make profitable trades at all hours of the day.

The 10 Minute Forex Wealth Builder is an excellent automated software tool that is unique because it only requires 10 minutes of your time to set it up for the day.

Learn more at the 10 Minute Forex Wealth Builder Review.

Investor's Business Daily - Home loan demand rose 2.2% in the week ended Oct. 3, according to the Mortgage Bankers Association's index. Mortgage applications for buying a home rose 3.2% -- from the prior week's 6-year low -- with the Federal Housing Administration continuing to gain market share. Refinancing activity edged up 0.9%. The average rate on a 30-year fixed-rate loan fell to 5.99% from 6.07%. The rate on a 15-year fixed mortgage decreased to 5.71%, the lowest in three weeks. A one-year ARM dipped to 6.6%.

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Monday, October 6, 2008

Forex Market - News Trading, Part One

The methodology for predicting and trading these trends is simple and straightforward: monitor the economic calendar and trade the news.

Complicated Forex Trading Formulas and Technical Indicators

Tired of complicated, proprietary Forex trading formulas and the endless barrage of technical indicators no one seems to understand? You are certainly not alone. The Foreign Exchange Market, in its most basic form, is really quite simple. It doesn't consist of magic wands, potions, or secret handshakes. You do not have to be an economist, political analyst, or mathematician to grasp it. There is no Holy Grail of Forex trading. There is, however, a better way. Thankfully, it is also the most basic, elemental form of trading on the Foreign Exchange. If a country's economy is in a growth trend, the obvious conclusion is that its currency will grow in strength versus a country whose economy is holding steady or in decline. The methodology for predicting and trading these trends is simple and straightforward: monitor the economic calendar and trade the news.

Is Trading the News Risky Business?

While some will consider this too risky, the facts just do not support their fears. Certain news releases consistently produce 30 to 50 pip moves in a predictable direction. Knowing and following a solid strategy is essential to successful news trading in the Forex Market.

News Releases consistently move the market upon their release.

We are talking about news releases that come directly from government agencies and other research departments devoted to studying and monitoring economic trends. It is critical to know the various news releases and how they typically move the market. Not all releases are created equally. Some are very consistent and predictable. These A-list news releases provide rewarding trade opportunities, provided,

1. you know the expected number;

2. you know how much deviation is required to move the market enough to gain a profit;

3. you know how the market will react if a number comes out higher or lower than expected.

As simple as one, two, three... Knowing the three key factors listed above is not as difficult or mysterious as it may seem. Number one is taken care of in the related news releases. Number two can be ascertained, either through personal trial and error, or by learning from a verified market expert like Dustin Pass, whose extensive research and work in trading the news has made him a recognized authority. Number three is much less difficult a hurdle than it appears. When the numbers do not meet expectation, when they are higher or lower, they will affect each release in a particular way. In Part Two, we will share the A List and B List news releases, talk about their required deviations, and explain how variances in the numbers affect each.

Dustin Pass: Please Visit http://www.forextradersdaily.com For Further information.

U.S. President George W. Bush (L) stands with Treasury Secretary Henry Paulson, after thanking Treasury workers for their efforts after the House passed the $700 billion financial rescue legislation, outside the Treasury Building in Washington, in this recent photo from October 3, 2008. (Mike Theiler/Reuters)Reuters - U.S. Treasury Secretary Henry Paulson is expected to name Neel Kashkari to oversee the $700 billion program to buy distressed assets from financial institutions, The Wall Street Journal reported on Sunday.

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Sunday, October 5, 2008

Why Price Moves - An Introduction

You'll find in many trading books, websites or courses a statement to the effect that 'price rises because there are more buyers than sellers', or 'price falls because there are more sellers than buyers'.

While I understand what the author is trying to say, it's not quite correct.

There are not more buyers than sellers, or more sellers than buyers. Any transaction involves both a buyer and seller. The number is the same - one buyer and one seller. So, across the whole trading session, the number of buyers will always match the number of sellers. It's fairly obvious when you think about it.

So, why does price move?

Let's move away from the markets for a second and think of a housing auction. Someone starts off the auction by making a bid. But the auction process doesn't end there. A second bidder soon comes into the market and outbids the first. Why do they do that? They want a piece of the action. They want the ultimate prize - in this case, the house, and they're willing to pay a higher price to get it. Then another bid comes in higher, and again, and again.

At some point it will come down to two parties competing to get the house. Eventually, one party gives up - they've hit their limit and won't pay any more, so they drop out of the auction. There are no more buyers, so price doesn't go any higher.

So price rises only while there are people willing to pay a higher price. Once no-one is willing to buy at a higher price, price will stop rising, and the house will be sold. The winner is the one most desperate to get the house.

The financial markets work through a similar auction process, except that it works in both directions, up and down.

At any given moment there is both a bid and an ask price. A number of buyers are sitting in the market trying to buy at the bid, and a number of sellers are waiting, trying to sell at the ask. Sitting on the sidelines as well is a quantity of people waiting to enter the market, either through a buy or sell transaction.

Which way price will move from here is a function of which side is more desperate to make the transaction. If buyers are not desperate to buy they will place their orders at the current bid, or lower, and wait for a seller to hit their price. However if buyers are desperate to get into the market - if they perceive the price as being great value and are willing to pay a little more because they want in - they'll be happy to take the ask price. If this happens in sufficient quantity to exhaust all the sellers at that ask price, then the ask price will rise to the next group of available sellers. The desperate buyers will now have to take even higher prices, if they still want to get into the market. So, price rises while the buyers are more desperate, or more eager, than the sellers. Price rises while there is more demand for buying, than there is for selling. Price rises while the greed of market participants is greater than the fear of market participants. Price rises while buyers are willing to pay a higher price to get into the market.

As price rises though, fewer buyers will perceive value in buying this high, whereas more sellers will be attracted to the higher prices. Eventually, the market runs out of desperate buyers - no one is willing to pay a higher price at this time - and the rally will stop. Equilibrium has been reached.

Consider now, what happens if the sellers decide they have to get out, for whatever reason - perhaps they believe price will shortly fall. They become desperate enough to accept the bid. If this occurs in sufficient quantity to exhaust the buyers at this bid price, the bid price will move down to the next group of buyers. If the sellers are still driven by fear of missing out on a sale, they'll then have to accept the lower bid, again driving prices lower. So, price falls while the sellers are more desperate, or more eager, than the buyers. Price falls while the fear of market participants is greater than the greed of market participants. Price falls while sellers are willing to receive a lower price to get out of the market, or sell short.

As price falls though, fewer sellers will perceive value in selling this low, whereas more buyers will be attracted to the lower prices. Eventually, the market runs out of desperate sellers - no one is willing to sell at a lower price at this time - and the price fall will stop. Equilibrium has been reached.

So, basically, price rises when demand is more desperate than supply. And it rises to a point at which there are no more buyers willing to pay a higher price.

And price falls when supply is more desperate than demand. And it falls to a point at which there are no more sellers willing to sell at a lower price.

That's why price moves. It's not because there are more of one side than the other. It's because one side is more desperate than the other.

Happy trading (not too desperately though),

Lance Beggs

Copyright 2008. Lance Beggs. All Rights Reserved

Would you like to learn more about how I trade the forex and equity index markets? Check out the articles, videos and trading resources on my website right now at http://www.YourTradingCoach.com

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