By admin | November 30, 2008 - 11:47 am - Posted in Articles

One of the fastest growing investment opportunity is the foreign exchange, also known as “FX” or “forex.” The forex system is an investment vehicle in which you trade large volumes currency and make money by taking advantage of the changes in currency exchange rates. Many times, this requires that trades be conducted at odd hours, over long distances, and in large quantities. It’s important for an investor to have good software so as to insure that their on-line forex trading is profitable.

Automated forex trading systems can make sure that an investor will not miss out on profitable trades, and that these trades are completed quickly. Automatic forex software can be tailored to fit any FX strategy and will pro-actively seek out the best trades and conduct them quickly. These “software robots” remove much of the hassle involved with using human traders to conduct business on the currency exchanges, but more importantly, they are able to gather and accumulate information quickly and respond to it instantaneously.

The unique worldwide nature of the currency exchange market means that good deals may occur late at night or thousands of miles away, and the information regarding the trade may be buried deep within exchange rate listings. Currency exchange rates often change rapidly in response to government intervention or financial news, and forex software insures that trades in response to such actions are conducted immediately. There is often very little time to react in the constantly changing world of currency exchange, but good forex software insures that the trades get done on time, no matter when or where they need to happen.

While it is still possible to conduct trades the without automated software programs, essentially all investors trading in the FX market are relying on some type of quality trading/analysis software. Forex software opens the doors to smaller investors with less currency and resources to trade with, and enables them to do profitable day trading.

Since the forex markets are open twenty-four hours a day, five days a week, it’s extremely difficult for small investment firms and individual investors to manually keep track of the constantly shifting exchange rates. is always active to monitor and make the trades that it has been instructed to look for.

Alison Wells is an avid Forex Trader who relies on automated Forex software trading systems to make winning trades. She has many years of foreign currency trading experience and writes frequently on Forex trading systems and self-adaptive trading software. She can be found at

By admin | November 29, 2008 - 11:30 pm - Posted in Articles

Almost everyone wished to be successful in forex trading, but has anyone planned on the path to be a successful currency trader? I believe not many. If you have not or not sure how to plan, below are the steps that can lead you to the path of success in forex trading:

Step 1: Get yourself a forex ebook or forex course to begin with, so that you can understand the basics of forex trading and how does it work. If you have gotten my free ‘Forex Trading To Riches’ ebook, you should be able to grab hold of what foreign exchange is about.

Step 2: Open a FREE forex DEMO (practice)account with online brokers.

Step 3: This is an important step. Make sure you read the psychology part and money management rules of forex trading before you start on demo trading. Take note, always start with good habits. Getting rid of bad habits is much harder than to build good habits.

Step 4: After you have gone through the whole ebook or forex trading course, you will probably know how a forex trading system works. Moreover, my PIPS MOVER™ trading system is easy to understand. So let’s get practical and practice it on the demo account. Practice makes perfect!

Step 5: Demo trade for about a few weeks until you get used to the forex trading system. If you have developed some bad habits along the way, carry on demo forex trading until you get rid of them, you do not want to make those mistakes when you go live trading! I would recommend students to go live trading only when they hit a success rate of 70% and above.

Step 6: You should be already quite consistent in your demo trading when you have come to this step. Open a LIVE forex trading account, either a mini account or a standard account. I understand that many traders start off with mini account first to build their confidence. That is absolutely alright, but do not get stuck in mini account for too long as you might have psychological barrier to go through. Move on to standard trading account when you feel confident, consistent and making profits in your currency trading.

Step 7: Increase your lot size slowly as your trading skills improve. You may want to increase it when you have 30% ROI(return on investment) in your forex trading account. Refer to the money management rules on how you can keep increasing your trading lot size.

Step 8: At this point of time, you are a successful forex trader if you have consistent profits every month. You don’t have to be a institutional trader to be successful! And you seriously should start planning and considering to be a full time forex trader from here onwards.

The above may sound easy, but trust me, it’s not easy at all, or else why 95% of the people failed in forex trading? So you really have to drill on the psychological, discipline and money management parts before you can go far in forex trading.

To learn the more ways to be a successful forex trader and discover a time tested, proven trading system, download my 56-page “Forex Trading To Riches” ebook free at

The author, Daniel S, is the owner of where he provides premium forex tips and resources.

By admin | - 11:13 am - Posted in Articles

If you are someone who is interested in investing, you must certainly have heard the term, Forex Trading. What many investors don’t know is that “Forex” is not a new term by itself, but rather a short form of “Foreign Exchange”. As the name implies, Forex Trading simply refers to Foreign Currency Trading.

As recently as ten years ago, Forex Currency Trading was confined to the large institutions and banks as they only had access to the tools and systems required to meet the then high barriers of entry set in the Forex Trading game.

Today, things have changed drastically. Recent advancements in technology have empowered the individual investor to participate in the game, and trade with any of the various online trading platforms that exist today.

Once you get started with buying and selling in the Forex Currency Trading market, it will become obvious to you that there exist four “Currency Pairs” that completely dominate the Forex market. The four pairs are “US Dollar vs. Euro”, “US Dollar vs. British Pound”, “US Dollar vs. Japanese Yen” and “US Dollar vs. Swiss Franc”.

The prime goal of any investor who deals in the Forex market is to hold a currency that is appreciating in value in relation to the other currencies. To illustrate with an example, if you choose to buy 100 British Pounds in exchange for 200 US Dollars, hold the 100 British Pounds for a week and in that period, the value of the British Pound appreciates in relation to the US Dollar, you get to convert those Pounds back into Dollars for say $250 and make a tidy profit.

Unlike domestic stock markets around the world that operate for only a few specified hours each day, Forex Currency Trading is open 24 hours a day. Since every country trades on the Forex market, it’s always business hours in some part of the world and so it’s open all day. The volume of trade on the Forex market is roughly a whopping $1.2 Trillion.

Another important distinction is that Forex Currency Trading is not centered on any exchange such as the NASDAQ. There is no central governing authority or organization and trading is carried out between all the major banking institutions of the world.

The advent of the internet has given rise to online Forex Brokers which are similar to an online stock trading account. These brokers have thousands of investors placing orders through their online portals and so are able to allow anyone to open a Forex account and buy and sell in any quantity.

Times have changed and made it extremely easy for anyone to trade on the Forex Currency Market. But, a new investor must keep in mind that it is a very complex and complicated environment that may offer amazing opportunities for wealth creation, but is also capable of relieving you of your hard-earned money in an easy fashion. A would-be investor is advised to do a lot of homework and gain as much knowledge as possible about the Forex market before choosing to make an investment.

For more information on visit our site: All You Need to Know About .

By admin | November 28, 2008 - 10:35 am - Posted in Articles

Not many people realize the dangers of dividends. They believe that shopping for stocks that pay out high Dividends is the best way to make money month after month.

The average person will look for stocks with high dividends. It doesn’t matter if it is a good company or what the price is doing.

The problem with that is because in order to invest successfully a trader must know something about the stock that they are investing in. Let us look at an example.

Stock A is trading at $40 but they pay out $.5 in dividends every 3 months. The only problem is that it has been in a downtrend for the last 6 months. Stock B is also trading at $40. It has been in a very nice uptrend for the last 6 months. The stock is strong; the only problem is that they do not pay out dividends.

Most beginning traders are likely to pick Stock A. They see it as a nice way to pull out income from their stock. Most professional traders would likely pick stock B. Because the stock has been in an uptrend it is likely to continue going higher. Likewise Stock A is likely to go lower.

After a year the buyers of Stock A made $2 or 5% return from their dividends. They accomplished in making an income. Stock A however is now trading at $24. This is because it was a weak stock to begin with. They may have only paid out dividends to get people to invest in their company.

The owners of stock B however didn’t get any income from their stock. They were however rewarded in buying a strong stock. The stock they once bought for $40 is now trading at $120. They made a 200% increase from this trade.

Most traders will make money by investing in high quality stocks. They do not care if a company is paying out dividends or not.

Now that is not to say that it is wrong to buy stocks with dividends. That just should not be the reason someone buys a stock. An extra 5% income from dividends is not going to make much of a difference anyway.

For more information on trading the stock market visit

By admin | November 27, 2008 - 7:21 pm - Posted in Articles

You probably heard about Forex (Foreign Exchange). It’s where currencies of different countries are bought and sold using the constantly varying exchange rate to turn a profit. The Forex market is huge and an estimated $3.2 Trillion change hands every day.

Forex Robots

So what are these forex robots everyone’s talking about? This robots are actually computer programs that carry an algorithm to analyze, interpret and execute a command. The Forex market is a fast pace market. Many opportunities are missed because of that. Contrary to a human being, Forex robots are constantly scrutinizing every change in the market and recognizing patterns. No human person can process the way these robots do. When a pattern is recognized the robot starts choosing low risk trades where it can turn a profit exchanging currencies. It will do this a couple of times a day in what is called day trading.

The great thing about these forex robots is that they require minimal user intervention. Once you purchased your software, you only need to set a couple of parameters or instructions by which you’re robot will execute commands.

How Risky is it, really?

Like I said, forex robots are always recognizing trends in the market. Once the robots have determined safe trades they execute a trade. Most forex robots have a 92% success rate which is very high. Algorithms of previous versions of forex robots have been updated in order to increase the trade success ratio.

Do I need a large investment?

NO! You can start trading with as little as $500 plus your forex software. You will recover your investment in a few days anyway. Also, setting up your forex robots parameters takes only a while which means you can get started right away.

How Fast do I start Earning Money?

You start earning money from day one with forex. All of the people that start using forex robots usually make about $20 their first day. Of course, it would be recommended to reinvest those $20 so you can later start plucking out $200/day or maybe more.

Personally, I recommend this software for your forex trading. I make about $200 per day with it.

By admin | - 7:07 am - Posted in Articles

During the chaotic uncertain times we live in, people often look at different outlets for income. Whether they are searching for a full time income to replace their job or a part time income so they can save a little each month. One venue people like to look at is trading or investing. Many people look to trade stocks, options, and futures. But most recently forex trading has grown immensely in popularity And for good reason. Here are some of the benefits of learning to trade forex:

1) A 24 hour trading market - With stocks and futures, the markets close at 4 pm est. With forex having an international platform, currency rates are constantly trading even if the US markets are closed. So if you come home from work at 5 pm. (like most people) you’ll always find a currency pair you can trade with forex. If you are a stock trader, by the time you get home, the market has already closed.

2) Completely recession proof – No matter how good or bad the US economy is doing, you can always be successful trading forex (as long as you know what you are doing). The dollar can always be traded with or against. As long as you can trade either way of the market, recession is something you never have to worry about, since money can be made on both sides.

3) The ability to trade anywhere - How many people in this world can say that they can travel when and where they want and still do their job? Not too many. Learning to trade forex correctly can lead to the freedom and time to do that. All it takes is a laptop and internet connection.

4) Trading flexibility – Most investment vehicles require a large sum to start trading. Most accounts require you to have 5K-10K to get started if you plan on trading stocks or futures. To be honest you’re going to need them, because it takes a lot of shares to make money trading stocks. With forex you can open an account with many brokers for a few hundred dollars. You have the ability to play micro or mini lots so you don’t have to trade with full lot sizes as the big boys do.

5) No commissions - Unlike stock brokers, the majority of forex brokers do not charge a commission for each forex trade you make.

These are just some of the many great benefits of forex trading.

is much easier than people might think. To see how I learned how to be successful forex trading, make sure to check out LearnForexDirectory.com to see more

By admin | November 22, 2008 - 9:40 am - Posted in Articles

With the popularity of forex trading since middle of year 2004 when it even overtook the interest in futures and commodities trading, we have seen a lot of forex trading systems being developed. As new technology evolved, we have also seen the power of the desktop computer being harnessed for running trading platforms involving all sorts of forex trading systems instead of using computer mainframes.

The usual way most traders would want to test their forex trading systems is to use a forex strategy builder and back test on historical data, and then to discover what parameters in that trading strategy are important to the results, and to forward test again on past historical data to check the results.

Some traders will merely back test historical data, and then run the system to test on simulated data. If they find that the system could generate good results based on the system parameters, they then adopt the system for actual use in real trading instead of a paper trade.

There is a lesser known way of testing a forex trading system, and that is to actually port the trading system to test it on actual historical individual stock data.

In other words, you can use the forex trading strategy to test it on historical stock data and to check how the system performed with stock market data.

Stocks and shares normally have less volatility then forex, the difference being trading stocks and shares would involve a study of accompanying volume. In contrast, we are concerned with price and time action in forex and not volume. Further. many forex traders are more familar with trading stocks and shares, and to use a forex trading system on stocks and shares would allow the trader who is transiting from trading stocks and shares to trading forex, an easier way to learn how to trade forex.

A general guideline for testing a forex trading system with individual stock data is this – if you find the forex trading system to perform well with an individual stock data, returning profits consistently, you can have reasonable confidence that the same forex trading system will function as well for trading forex itself. If the forex trading system does not perform well with stocks and shares, the general understanding is that the system may not be robust enough for the volatility and velocity of trades inherent with trading forex.

As always, this is not a dogma, but a general guideline. That is why any forex trading strategy or system have to be tested prior to being adopted for trading.

What is significant is that you can uncover the power of a forex trading stratgey to use on trading stocks and shares in this manner. Some forex trading strategies have been performing very well on stocks and shares, and it follows that these will also perform as well with forex.

Are you still struggling to become profitable trading forex? Discover how you can get help to personalise 3 powerful trading systems from a successful professional forex trader by visiting the author’s blog at

By admin | November 21, 2008 - 9:26 pm - Posted in Articles

What are the best forex trading indicators and how do you use them to make your forex trading strategy succeed? Here we will look at how to do just that.

Firstly, there is no such thing as a best forex trading indicator on its own, as no indicator works all of the time however if you combine the right Forex trading indicators you can build a robust forex trading strategy and seek currency trading success.

Here we are going to give you a subjective view, of the best forex indicators and how to combine them for success.

When trading forex markets, we always like to use simple bar charts and see support and resistance as the initial paint on the canvas. We can see support and resistance and the direction of the market clearly and then decide with our indicators areas of value to buy and sell.

Here are some indicators we have been applying for 25 years and have made money with and the some advantages we think they give to any trader.

Simple Moving Averages

We all know prices come back to an average and we find the most useful the 40 day MA, for defining the biog long term trends and in strong trending markets, we like to buy or sell back to the 20 day MA, to enter fresh positions in the direction of the trend.

Bollinger Bands

Gives you the volatility of the market and they are a great help in determining the standard deviation of the market from the norm. This of course gives you clues to overbought and oversold scenarios, entry points and targets.

Anyone who trades forex, needs to be aware of volatility and standard deviation, so make it part of your essential forex education and use Bollinger Bands.

While you can see trends support and resistance and volatility, this is just setting up areas to trade now you need to do market timing. You should never predict a move, you should always confirm it with momentum indicators to get better market timing.

Here are two great forex trading indicators to do this.

Relative Strength Index

A great indicator you can use it to time entries if the RSI is in your favour and strong, in existing trends – or when it diverges from trends ( particularly when its over bought or over sold) to enter contrary trades.

Stochastic

We love the RSI – But our ultimate indicator to trigger trades is the stochastic; it’s simple and very effective. We always use crossovers to confirm any move we are looking at. In contrary trades we love stochastic crosses with bullish or bearish divergence ( from over bought or oversold areas) against the prevailing trend.

A Great Toolbox Of Indicators for Any Forex Trader

So there you have our best forex trading indicators and they can be used for trend followers, contrary trading or swing trading. We can’t give you every advantage of them here but look them all up and study them and you can blend them, into a powerful forex trading strategy for profit.

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Get free essential forex trading Pdf’s and more visit our website for more essential wealth building info at:

By admin | November 20, 2008 - 8:57 pm - Posted in Articles

When the YM or Dow emini contract was introduced a few years ago, many futures traders moved over to the emini Dow futures leaving behind both the S & P 500 and NASDAQ futures, although both are still popular with traders. The Dow emini offered something new that appealed to traders new to the market since it was not quite as volatile as the other two emini futures contracts.

The emini Dow futures contract trade at five dollar increments for each point which made them more accessible to newer traders that were very often nervous about trading the other index future contracts. However, traders soon learned that what they used to be successful in the other index futures markets also worked with the Dow futures. Mechanical systems trading was and is utilized by traders across all futures markets and has been proven to be the best way for a trader to be profitable when trading across all financial markets.

Mechanical systems trading alert the trader when possible profitable trade setups are signaled by the market. Traders use different types of systems, with many building their own system based on indicators and chart patterns that have proven to be successful for them, while others utilize systems developed by others. Once new traders learn that in order to be successful at futures trading they need a system in place that eliminates human emotion, they seek out proven trading systems used by others.

Until such time that the new trader has the experience and knowledge to design and implement their own systems, a proven mechanical trading system is recommended. A canned system, designed by another successful trader and utilized by the new trader can be the key to success as the new trader learns the dynamics of the market and gains the expertise that will allow the trader to design and develop their own system based on their personality and risk tolerance levels.

Mechanical systems are used by professional traders to compete and win in the index futures market on a daily basis. You can learn more about mechanical systems trading by visiting and discover how you to can be successful trading the emini Dow futures.

By admin | - 8:42 am - Posted in Articles

In a previous article I mentioned that my analysis involves monitoring price action, in order to gain an insight into the short term sentiment of the market. Determining who is in control at that time – the bulls or the bears. And assessing how they’re likely to respond to changes in the market.

I thought today I’d prepare a quick article to give an overview of how I analyze price. Those of you who know me know that I’m a great fan of candlestick charting. However, price analysis is much more than just watching for your favorite candlestick patterns. Too many people just teach the candlestick patterns, which are fine, but in my opinion there’s some essential analysis missing that an astute trade needs to consider BEFORE they look at price action and respond to every candlestick or bar chart pattern.

Let’s have a look at what I mean.

Price analysis for me is essentially a top down approach, working from the macro level of Market Structure (so we analyze the big picture first), then down to the current Trend within that structure, and only then do we look at the current price pattern, whether through candlestick analysis or whatever other method works for you.

So I basically start off with a wide view of the market, and drill down to the detail in the current price bar or pattern.

I prefer to do this over two timeframes.

The market structure is defined primarily on a higher timeframe. For me, as a daytrader, that’s the one hour charts. Of course, if you trade differently to me then that can be any other time period you wish. Just make it higher than the timeframe you trade on – I recommend by at least a factor of four.

Then on the shorter timeframe (what I call the trading timeframe) I refine the market structure a little further, analyze the movement and strength of the trend, and then assess the bullish or bearish sentiment based on the current price patterns.

For me, the trading timeframe’s anywhere from 1 minute to 5 minute charts, depending on the market and its volatility, and how well the price is flowing.

So, what do I mean by market structure, trend analysis and price analysis?

Firstly Market Structure:

* The higher timeframe chart is opened and any areas of major support or resistance are identified and clearly marked on the chart.

* Support & Resistance for me are areas of past price congestion, swing highs or lows, or gaps. That doesn’t include any ‘guessing’ at future support or resistance, via the use of pivots points or Fibonacci levels. I’m not a fan of these analysis techniques. Of course, if they work for you, good on you, keep using them.

* My expectation when I trade is that there is a higher probability of price stalling or reversing at these areas of major support or resistance.

* I then narrow my focus to the shorter trading timeframe and add to the market structure framework, by identifying areas of minor support or resistance. (Typically we look on the current trend first, but you may at times need to look back beyond the current trend, to previous market action, to find applicable areas of minor support or resistance)

* Once again, these come from areas of congestion, swing highs or lows, or gaps. That is, areas which are proven to stall price movement or reverse price direction. My expectation with minor support or resistance is for a higher probability of minor support holding in an uptrend, and minor resistance holding in a downtrend.

* That’s it for Market Structure – simply identifying a support and resistance framework within which price moves. Simple!

Having defined our market structure, or a framework within which price will move, we now focus our attention on the current trend. This occurs, as does all further analysis, on the trading timeframe.

* I conduct analysis on the trend to identify its strength. Is the trend moving strongly, in which case we can anticipate it being more likely to break through the next support or resistance levels, or is it weakening, in which case we have a greater probability of the support or resistance levels forming a barrier to further price movement?

* We determine the strength of the trend by looking at its proximity to the support and resistance barriers within the framework, and also gain clues from changes in momentum or volatility.

* Is the current price swing, faster or slower than preceding swings within that trend? Is the current price swing speeding up, or slowing down?

* Is the volatility changing? Is the average range of the price bars increasing or decreasing?

* These sorts of questions regarding changes of volatility and momentum can give you clues into the changing strength of the trend, and the likelihood of a reversal at, or continuation through, an area of support or resistance.

* If you want to get experienced at this, it takes time. Review price charts over and over, identifying how changes of momentum and volatility precede either a continuation or reversal of that trend.

Having gained an appreciation of the strength of the trend, and its location within the support and resistance framework, ONLY THEN, finally, do I concern myself with the current price action to determine the bullish or bearish sentiment (or more particularly a potential change of sentiment) through candlestick analysis.

What does this little bit of extra work give me?

Here’s an example:

Instead of entering short on a shooting star reversal pattern, just because it matches the shooting star diagram in my book on candlestick patterns, I will first conduct further price analysis regarding the trend and how it moves within the support and resistance framework. For example, the price may have just meandered slowly up to a major resistance level. The current price swing may clearly show less momentum than both the previous upswing and downswing. And the price bar range may be narrowing. This gives a reduced likelihood of the commitment required from the bulls to break through the area of increased supply. The shooting star pattern provides evidence of a clear rejection of prices at that resistance level. This provides me with a lower risk or higher probability trade in the short direction.

Another example:

Instead of entering long on a harami cross reversal pattern, just because it matches the harami cross in my book on candlestick patterns, I’ll conduct further analysis to see where this pattern occurs within the bigger picture of market structure. For example, the trend may show a strong and accelerating move downward, on greatly increased volume, extending price rapidly to great distances below its average, right into an area of major support. This is an area where I expect increased demand is likely to be sufficient to absorb and overcome the force of the bears who have spent all their energy on the climactic move downwards. This is an area where I expect price to find support. The harami cross shows a clear halting of the rapid move down, and allows me an opportunity to enter a low risk trade close to an area of major price support.

Seriously, the end result might be the same, but at least I’ve entered based on a reasonable assessment of the price action in order to maximize the potential for a lower risk or higher probability trade. Over a lifetime of trading I expect this approach will produce more favorable results than just entering because the pattern matched one I’d memorized from a book.

Ok, a bit of a summary, and I know this is a bit of repetition for those familiar with my work, but don’t just blindly take your entry triggers. Think about where they occur within the bigger picture structure of the market.

The market structure defines where you trade. The trigger, whether a candlestick pattern or some other form of entry trigger, tells you when to get in, ONLY when you’ve first met the requirements of the market structure rule.

Think about where the current price movement is within a framework of support and resistance. Think about the changing strength of the current trend, or price swing, as it approaches this area of support or resistance. Watch for signs of strength or weakness in the trend, through the clues evident in changes of momentum and volatility.

And don’t forget – ALWAYS USE STOPS, because there are no guarantees. This is a game of probabilities.

Happy trading

Lance Beggs

(c) Copyright 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