By admin | January 26, 2009 - 10:55 am - Posted in Articles

Some investors love the stock market. They live and breathe equities: the excitement, the passion, the devastation of loss, the victory. Some like the options and futures markets, feeling it takes more skill than equities. And, there are some that prefer the global aspects of the FOREX.

But no matter what you prefer, you come across again and again the problem of whether you should trade with the trend, or trade for range. The impact of which method is chosen affects your chance of success, and, the reason we’re all here, your wallet (or purse as the case may be).

But those dealing in the FOREX have a unique advantage in that the market responds well to both styles of trading. So, what exactly is trading trend and range? Let’s take a look.

Following the crowd

Put simply, a trend is the direction a market, or the price of a single asset, takes. Trends vary from short, to long, to longer and to even longer or shorter.

There are trend identifiers that can tell you which way the wind is blowing. The simplest, and probably the best, method is to look at the higher lows in an uptrend and the lower highs when the market or asset is in a downtrend. There are other methods of course. For example, some investors like to define a trend as “a deviation from a range as indicated by the Bollinger Band.” What’s a Bollinger Band, you ask? It’s a band plotted two standard deviations away from a simple moving average.

But in the end, it doesn’t matter how you define it or look at it because the goal is the same: to make money by buying in on a trend early and holding on until the trend gives out and starts slowing. Most traders use tight stop trade orders (an order to buy or sell a security when its price surpasses a certain point), to limit their risk.

This method of trend trading can have huge payoffs. Leverage in the FOREX, because of its size and 24 hour trading, is typically 100:1, meaning that you only need to put down $1 of margin to get $100 worth of currency control. Given that the stock market is 2:1 and the futures market which is usually 25:1, you can see why you can make a huge amount of money with trend trading in the FOREX.

The Long Term

But trend trading isn’t for everybody. It takes discipline, with many traders meeting 20 or even 30 stop calls before they can catch a trend. If you get emotional about it and try to fight the market, you could lose your shirt.

That’s where range trading comes in. The range trader doesn’t care about direction. He trades knowing that no matter where the currency goes, it will come back to where it started. Range trading is based on the theory that prices will trade at the same levels many times, and the range trader will be there to gather up those profits from the oscillations in price.

But range trading isn’t free and clear either. A range trader will have to have a lot of money they are willing to risk to put the practice into play successfully. But, with more money (in the case of the FOREX, more leverage), there’s more chance of the trader’s enemy (i.e. emotion) coming into play. Positions can go against you many times in a row before you get a profit, and many traders just don’t have the stomach to watch their hard earned cash dwindling while they hang on to the idea of profits in the future. Also, if you’re not careful, with more than a few losses in a row you could trigger a margin call before you’ve had a chance for the currency to produce profits for you.

But, don’t despair. Many FOREX dealers have come up with a solution: they allow you to trade in mini-lots. By trading in mini-lots you can withstand many more drawdowns before triggering a stop order. This allows you to withstand more losses in a row before a margin call is issued.

One or the Other

Regardless of which method the trader chooses, the FOREX market is ready and able for both. As long as the trader remains disciplined and realizes that there will be some losses no matter what they do, they will improve their chances of fattening their bank accounts.

Kevin Davis has been investing online for 10 years and just recently started looking into expanding his investments into the FOREX market. To learn more about Kevin, visit his blog at

By admin | January 21, 2009 - 1:48 pm - Posted in Articles

The thought of investing for long term benefits is an ideal one but this is only an option if you are established and have extra cash that you plan to multiply rather than just save it. The present situation is more important to deal with, than the future solutions.

When we are dealing with present situation, it is mainly focused on clearing any type of credit or loan that you have pending. Clearing them up before you take the next step towards investing is the wisest course of action and the first line in any book of a professional investor. Suppose you have $1000 credit to be paid and also an opening where you can invest these $1000 it is better to clear your credit first. This is especially true if you are in possession of a credit card that has high interest rates. Such high interest credit cards are always best to be exchanged with low interest credit cards. If not you can reschedule your loan scheme to that which has low interest loans. In case you have a outstanding credits, don’t even think about investing first to earn more and then pay through the profits obtained through investment. Out of ten people who try this sort of stunt more at least five of them end up being bankrupt. This is because psychologically even if you do receive any profit, you will be pulled towards gambling tendencies rather than paying up your dues in time.

It is always safe and satisfactory to be debtless while dealing with investments. The progress of your financial situation through investments depends on your stability to manage your finances correctly rather than earning a very large profit and not knowing what to do with it. Stabilize the current situation to be stable in any kind of trading situation. In this way any kind of profit will satisfy you and you will not be disappointed when the income you have received does not equal your credit and loans. Remember that there is not one regular investor in the world has never lost through investments at some point.

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit to learn how to make steady profits through safe trading.

By admin | January 19, 2009 - 3:13 am - Posted in Articles

Learning to trade the forex market is no small job. It is a job that professionals go through all sorts of education and experiences to be able to manage billions and trillions of portfolio funds. Therefore, learning on this profession does not have an end.

The basics of fundamental and techical analysis, therefore cannot be over-emphasized. I will want to discuss the advantages of moving averages and bollinger bands in take profits.

In trading the forex market, emphasis has to be laid on larger time frames, especially when the resistance or support of lower time frames has been broken.

Now, when you plot a bollinger band say 62 band on your chart, enable it on all time frames, you will find out that its resistance and support levels vary for each time frame, hence a break on a larger time frame indicates more pips in the making.

I use a simple moving average (100). A break of this on the 15 minutes chart upwards or downwards may cause a pip rise or drop of over 100, but when this happens on the 1 hour chart, the pips may triple or quadruple.

When there is a break of the 100 SMA on the 15 minutes chart, look to the 1 hour chart, a break of this signifies that the trend has gradually changed from a downtrend to an uptrend even if temporary. It usually results in massive pip gain. However, during the uptrend or downtrend, this moving average or bollinger band, on the larger time frame can be a point for initial profit take. This is because at these point, the market usually takes back some of its gains.

When a currency pair is struggling to break a particular price point, say on the 15 minutes chart, look to the larger time frame because it may have hit a bollinger or moving average of a larger time frame. When this happens, the price retreats initially, then makes another come back.

A break above that resistance or support level is a confirmation of the next rally.

Trading the forex market involves a whole new world of learning. Never underestimate any resource, it will only limit you chances of being a better trader.

I’m just a start up guy with quite a load of experience and still counting. forex trading just got better. Learn the trade, keep the pips.

Most forex brokers that you will use online have developed their trading platforms so that they calculate your profits/losses for you. So why am I writing this article?

Well, it’s pretty simple really.

If you are serious about being a successful forex trader you need to understand the mathematics behind your trades. Plus it makes sure that you can keep tabs on your forex broker, so you can make sure they are not ‘cooking the books’.

As a forex trader, I’d expect you to be numerate, so it should be pretty easy for you to calculate your profits and losses. But I can understand if you are new to forex trading it might not be initially self-explanatory.

The 2 formulae you need to commit to memory.

(In this calculation I’m assuming you are trading in USD.)

When the US Dollar is the second currency (the quote currency), the formula to use is:

1 – Profit is equal to: the price change in PIPs multiplied by the units traded. (e.g. profit = pips price change x traded units)

Secondly if the US Dollar is the first currency in the pair (base currency), the formula to use is:

2 – Profit is equal to: the change in price in PIPs multiplied by the units traded divided by the exit price. e.g. profit = price change in pips x units traded / exit price

So to ‘hammer this home’ and make sure you really understand this process I want to give you a few examples.

To start with we’ll use an example where the US dollar is the second currency, the quote currency, and to make things easy we’re going to use a 1% broker margin. So you can trade up to 100,000 USD with only 1000 USD.

OK?

Great. We’ll take the EUR/USD which for example is trading at 1.5618/9. Your analysis has led you to predict that the Euro is going to rise in value against the dollar so you start a trade to buy more Euros and sell US Dollars.

So you end up buying $100,000 worth of units at a price of 1.5619 – remembering that you are buying so you have to buy at the ask price – this is the last/second number in the quote (so you buy at the ask price of 1.5619 not 1.5618).

Your predictions turn out to be correct. Congratulations, the price rise to 1.5635/6. So you start another trade to sell the Euros and buy USDs. For this trade you use the bid price as you are selling, which is 1.5635.

So here’s where your maths comes in.

As you purchased the Euros at 1.5619 and then sold at 1.5635 your profit is 16 pips, or 0.0016. So before that makes any sense we need to convert that into proper money. So this is where we use our formulae.

Profits = 0.0016 (price change in pips) x 100,000 (units traded) = $160.00

If you are trading standard sized lots of a currency pair as we did above of 100,000, in which you use the USD as the quote currency, a quick rule to remember is that a pip is equal to c.$10. Hence 16 pips = $160.

So let’s take another quick example, but this time we’ll use the USD as the base currency.

You place a buy order for 100,000 units of USD/JPY at 103.20. The price increases and you sell at 103.33. You just made a quick 13 pips. So to calculate your profit in your second formula:

Profit = .13 (pips) x 100,000 (units traded) / 103.33 (exit price) = $110.78

Easy huh?

Do you make these forex trading mistakes? Don’t lose your shirt. Discover how to trade forex for big profits. Visit:

By admin | December 20, 2008 - 8:06 am - Posted in Articles

titleThe Real Secret to Day Trading Forex Currency/titlepYou want to know the real secret to day trading forex currency? Well, here it is: emConfidence and understanding of the market/em. There you go. Theres your real holy grail. If you can accomplish these two feats then you can write your own paycheck. Happy? Ok, so you probably need a little more information. Fine. Here it is:/ppustrongConfidence/strong/u! I cannot begin to tell you how many forex traders in the world are having anxiety attacks watching their trades just as I am typing. If you cant handle a trade or trading or in general, then ustrongdont do it/strong/u. Youll never have success day trading forex currency if you are watching every pip move like its life or death. Emotions can destroy a trader. A traders fear can cause him/her to hold a trade even though the obvious trend is going against them. It could also have the adverse effect in which a trader closes a trade WAY too early because hes afraid to hold it, even though all the signs are pointing in the right direction./ppI could give you the greatest trading system in the world, but it wont do you much good if you dont have any confidence in trading it./ppThe ustrongunderstanding of the market/strong/u goes hand in hand with the confidence. When I say emunderstand,/em I mean just that: Understand what you are looking at. Dont be like everybody else who has to use indicators to tell them what the market is doing. Does anybody understand what these indicators even mean? Can you honestly tell me what using an MACD Divergence does? Its colorful and its pretty on a chart, but what does that have to do with the tea in China? Take the time to understand the underlying causes of price and market movement./ppTake off the indicators on your charts and see if you notice some repeated patterns. If you can start to see them then you can be ahead of the other 95% of forex traders who end up losing money on the markets. After all how can you have confidence day trading forex currency if you have no idea what you are looking at./ppJim Buhs has been a successful forex trader after learning how to trade price action. He was able to have a target=_new href=http://www.squidoo.com/forex-successforex trading success/A after he cleaned his charts of indicators, and his profits soared./ppTo check out Jims Highest recommendation go to LearnForexDirectory.com and look at a target=_new href=http://www.learnforexdirectory.com/forex-education/bird-watching-in-lion-country.htmlBird Watching in Lion Country/A./pbrbr

By admin | December 19, 2008 - 7:31 pm - Posted in Articles

titleManaged Forex – How to Manage Your Forex Trading/titlepMoney changes everything. This line from a song takes a pitch on how money affects man. People from all walks of life – poor or rich – think of numerous ways on how to earn money or even how to grow them into million bucks. We are not survived by love alone, money still matters./ppOne of the most-sought after money-making investments nowadays is the popular forex trading. You watch them in the news, read them in the papers, see them in the movies – everybodys talking about it, and you dont even know a thing that people really do get rich from a well-managed forex trading./ppIf you are a novice, we are providing you with guidelines on how to start with forex and have a successfully managed forex trading all throughout./ppKnowledge is Power. The most successful businessman in the world is the man who has gained true knowledge and master of the business. You cant engage your money at once just because people are telling you this is how you do it. If ever their opinions matter, it is your opinion that matters the most. Search for numerous information about the business. Read them thoroughly and learn them by heart. Try joining seminars or workshops, watching online videos and tutorials, and dont stop until you know you have gathered more than enough information./ppRight Trading System at your doorstep. Before finally making a choice on which broker you have decided to put your money on, study all the different systems of brokers and do some sort of charting or auto trades on the computer./ppWork out your Trading Plans. Get your objectives, market strategies, point of investment and expected return on investments sorted out. If you have not finalized these details, then do not try to jump into the water yet. You will likely lose whatever you have invested. If in case you have a well-managed forex plan ahead of time and still failed to profit from the business, do not fret for there is always room for improvements on everything. Find out where you have mistakenly set your plans./ppManaging your money. In every business or investment, there are always possible risks or dangers. Learn how to manage your money and protect it from losing terribly. As I have mentioned earlier, set your objectives on your profits and set protective indicators on when to make a stop. Because if you lose everything at once, you might miss a great chance along the way since you have no capital anymore. Also, try managing your personal expenses with it./ppEverything is learned thru discipline. Especially if you are about to target a well-managed forex trading success from the beginning, it is important that you learn the art of discipline. Do not be moved by your emotions along the way; do trade with your trading plan at hand./ppOnce you have discovered the right formula to a well-managed forex trading, forex business can really be a smart and beneficial move to grow that capital in hand./ppJohn Callingham shows you which a TARGET=_new href=http://www.ForexReviewInsider.commanaged forex/a techniques, systems, and strategies actually work and which ones do NOT. Learn how to profit off of rising world currencies at a TARGET=_new href=http://www.ForexReviewInsider.comhttp://www.ForexReviewInsider.com/a/pbrbr

By admin | December 18, 2008 - 6:16 pm - Posted in Articles

titleCurrency Trading Strategy – How To Use The Fib 127 For Consistent Profits/titlepA solid currency trading strategy consists of entering a trade at the right place, having a stop that is properly calculated, and setting a reasonable profit target level that works time after time after time./ppMany newer traders set too ambitious profit targets expecting the trade to be the big one and hoping it will help offset the losses they have accumulated./ppHowever, a far more effective currency trading strategy is to set a reasonable profit target each time, not expecting the home run, and being satisfied with smaller profits which on a consistent basis will build the equity in the account surprisingly quickly once the compounding action kicks in./ppHere is where the Fibonacci tool comes in./ppThis article assumes a trader knows how to use the Fibonacci tool which comes as a standard technical analysis tool on most charting software packages./ppWhile the key retracement levels are 38, 50, 62 and 70 percent, two extension levels are commonly used – 1.27 and 1.62 percent./ppbThe Importance Of Fib 127/b/ppIt is the 1.27 level we are interested in./ppWhy?/ppBecause price regularly gets to the 1.27 level, or at least within a few pips of it. Price also gets to the 1.62 level fairly often but not nearly as often as the 1.27 level./ppSo if you are trading with the trend, always a safe currency trading strategy, and price has pulled back to the 50 or 62 retracement levels, there is a very reasonable chance price will reach the 1.27 target./ppIf price pulls back to the 79 retracement level it may not go so far. If you trade from that retracement, you will want to take the first profit at the end of the swing as price may not extend beyond that point to the 1.27 or 1.62 level./ppSome traders just focus on this currency trading strategy when going with the trend:/ppul liIn at the Fib 50 retracement/li liOut at the Fib 127 extension/li/ul/ppbWhy is this such a sound currency trading strategy?/b/ppBecause the Fib 38 retracement level does not offer such a good risk reward ratio many times. There is always the risk price will pull back further and take out your stop./ppOn the other hand, price frequently fails to reach the 62 or 79 retracement levels so the trader is left on the sidelines as the trade fails to get filled./ppThe 50 level is frequently reached so the trader has a good chance of getting his order filled./ppOn the other hand, the 127 extension is not too ambitious. In at 50 and out at 127 will often net a profit of somewhere between 25 and 40 pips. With a 20 to 25 pip stop the risk reward ratio is satisfactory./ppbHow To Use Fib 127/b/ppHere are some other factors to consider when using the Fib 127 extension:/ppLook to see if this level coincides with other factors such as/pliA previous key level of support or resistance on the higher time frames such as 1 hour, 4 hour, daily, or even weekly./liliThe 200 EMA (Exponential Moving Average) on the 1 hour or 4 hour. This often provides quite a strong level of support and resistance./liliA pivot point (Central Pivot Point, R1, R2, S1, S2, or M1-4 levels ) calculated from the previous days High, Low and Close./libr/ulpEven when targeting the Fib 127 as the profit taking point, it is wise to trim a couple of pips of the limit order. So often price will nearly reach Fib 127 and pull back./ppYes it might go on to touch it later but in the meantime price retraces and you have to have the mental stamina to be able to handle that./ppMany traders would rather just take a slightly smaller profit and save themselves one or two hours of price consolidation with the risk they may lose the profit altogether./ppA solid currency trading strategy develops over time. A key ingredient is not being too ambitious. The Fib 127 extension level is a reasonable profit target you can use regularly to extract your wages from the Forex market!/ppbFor a free Fibonacci calculator, pivot point calculator, and the best free economic calendars click here:/b/ppa target=_new href=http://www.vitalstop.com/Forex/tools.htmlhttp://www.vitalstop.com/Forex/tools.html/a/ppbFor a free candle chart pattern recognition reference tool click here:/b/ppa target=_new href=http://www.vitalstop.com/Forex/Candle-Chart-Patternshttp://www.vitalstop.com/Forex/Candle-Chart-Patterns/a/ppbSee how to use trendlines to get an optimum trade entry point:/b/ppa target=_new href=http://www.vitalstop.com/Forex/trendline.htmlhttp://www.vitalstop.com/Forex/trendline.html/a/pbrbr

By admin | December 15, 2008 - 2:38 pm - Posted in Articles

Over the next few lines I will tell you a little story about my experience with my automated forex system, and why it is important that you have one if you want to make money consistently within the forex market.

Forex trading can be a highly profitable business, but as everything in life it all comes down to knowing very well what you are doing. So to make a profit within the forex market you must either be already an expert, or you have to try and become one fast, but then again, becoming an expert in anything within a short period of time is virtually impossible and very risky if it is your investment at stake.

Believe me, even if you are an expert you will make mistakes quite often, maybe not because of a lack of knowledge, but because we as humans sometimes let emotions like fear and greed take us over, and this is where a reliable automated forex system comes in.

I have been trading for quite a while, and I started by trying to educate myself as much as I could, so I began my trading operation on my own. I didn’t do that bad, but I was not making the kind of money I was expecting, considering what some friends of mine where cashing in every month.

After a few months I decided that I have had enough, so I confronted one of my friends to try and suck some information out of him; when I finally managed to break him, he agreed to let me in on what he was doing, and here is what I got:

He confessed to me that in addition to some manually placed trades, he was using an automated forex system that had the ability to place and close over 90% winning trades all by itself.

Initially I took that for a joke and kept asking him to come clean with me, but he insisted that that was it, and to dig me out of my skepticism he sat me at his pc and showed me his forex trading chart. After 15 minutes staring at the monitor, I was surprised by the sound of a new trading order being placed without me or my friend touching anything; it was the automated forex system working. My jaw fell to the ground and I almost strangled my friend for not sharing this with me before.

I stayed there for a several hours because I had to see more to actually believe it. Well, after almost 6 hours and an aching back from my friends crappy chair, I witnessed the automated forex system place 3 winning trades for a $600 profit.

As you might guess, I did not wait until the next day and went straight home to download the software, and after three months using it I can only say that not having it is a waste of your money. You read right, a waste of your money, because you will be missing out on profits that you cannot possibly make all by yourself, and here is why:

1) You can be attentive about what is going on in the forex market for only a few hours a day, because we as humans need to eat, sleep and sometimes even work, and every time you are not following the market trends you are potentially missing profitable entry points for a trade. The automated forex system will be on guard 24 hours per day, and it will take advantage of every good opportunity to place a winning trade, which often occurs during the night.

2) We as humans have a tendency to become scared and nervous when we feel we are about to lose money and that often leads us to make bad calls based on emotion rather than calculated analysis. The automated forex system will never be scared or greedy, it will always act based on the market conditions and therefore will have a much higher rate of winning trades.

This does not mean that you cannot trade based on what you know about the forex market, because having an idea of what you are doing will always place you ahead. However, if you team up with an automated forex system you are certain to increase your profits by 100% or more, and if you are new to the forex market, you will start on the right foot making profits from the very beginning with very little risk.

So if you have ever wondered whether you should have an automated forex system by your side or not, the answer is: Definitely. Not having it will cost you a lot of potential profits.

Visit the: , for details about fully tested and reliable automated forex systems (the one I am using is the first in their list).

Also visit my blog at: , as I am always posting comments on new ideas and giving away useful tools and resources.

By admin | December 14, 2008 - 3:35 pm - Posted in Articles

For most players in the FOREX market, the use currency trading software is no longer a new concept.

In the past currency or foreign exchange (FOREX) traders relied on other people to help them out. Help was provided by those who provided signals. These signals are like warning signs for traders to decide whether it was time to sell or to buy. This was a great way to lessen the risk of a big loss and increase the likelihood of making a profit. Traders did not mind at all if they had to pay for the service because it was worth it.

There are some reasons why some traders are hesitant to pay for providers of signals. Some currency traders simply do not wish to become dependent on signals. If they always had to rely on signals, they would not gain the skills to analyze trends and make decisions on their own.

Some traders also realise that it is not easy to look for signal companies that are quite good and reliable. With the vast number of companies offering their services, it can be a chore to sift the ones with a good track record from the ones that are no better than guessers. If you do not get a good signal provider, you could end up spending more than you bargained for. A worse situation would be spending a total of more than your actual profits can support.

One good option that you can take aside from paying a signal provider would be to get software for currency trading. This can give you the opportunity to get the signals you need while you try to learn the ropes of currency trading. With good software, you get accuracy and reliability.

There are many software products out there for FOREX trading. You can save yourself a lot of trouble, effort and money by trying out two software products that are highly regarded and positively reviewed by real traders. FOREX Killer and Prophet1 Expert Advisor are two of the best software products around that can generate signals. They can work well for you regardless of what type of trader you are.

FOREX Killer provides signals for both short term and long term trading at great convenience. It can perform computations on the Windows operating system after acquiring broker data in csv format. Once it has the necessary information, it can analyze present prices based on the currency pair, time restrictions and loss and profit level specifications that you enter. With all the correct data in place, you can receive signals that can help you decide to buy or sell based on your trading style and preferences. You can use FOREX Killer for currencies, gold and stocks.

An alternative to FOREX Killer is Prophet1 Expert Advisor. Most successful trader users have applied this software for day trading but it has also been known to perform well under other time conditions. Use this software if you are comfortable with using MACD’s and moving averages as signal indicators. This software has the reputation of functioning so well even at default that it has a success rate of 90%.

Despite the advantages currency trading software can provide, you should not rely too heavily on them. If you truly want to be successful in the FOREX market, you should at least learn some techniques to analyze signals and trends yourself.

Whether or not you would like to have a currency trading software to help you in , you may like to read more about FOREX from our site. In case you are thinking about undertaking some , you can also check out our video section or simply do your own course search from our site.

By admin | - 4:02 am - Posted in Articles

The recent turmoil in the worlds equities markets has made it harder and harder to successfully make money from trading equity stocks. The after effects of the credit crisis are having a much longer and more sustained affect on global stock markets than first feared.

Why equities are a bad choice

Virtually all listed companies fund their activities through a combination of both equity (issuing shares to investors) and debt. The debt component of a companies funding can be both short term (such as an overdraft facility) or longer term in the form of a term loan or through the issue of bonds.

The recent credit crisis has occurred because banks have become much less willing to lend money to each other and other large corporate for fear that the counter party will have losses related to the housing crisis in the form of mortgage backed securities. In short they are scared and wary of counter parties losing money through sub prime investments and defaulting on their repayments.

The above factor has had the effect of making borrowing more expensive. If companies have to pay more to borrow their profits will be reduced. As a result of this stock markets have been performing badly.

A lot of investors have been moving their money instead into commodity related investments such as oil, gas and energy. This makes sense for a couple of reasons. Firstly such commodities tend to have a scarcity factor. In other words the supply of oil is limited by the amount that there is in the ground.

In addition to limited supply the demand for these commodity products has been increasing dramatically as emerging nations and economies such as India and China grow rapidly and consume them at a much higher rate. The net effect of these factors has been rising commodity prices.

With neither demand looking likely to fall or supply increasing, investing in commodities is looking like a smart bet, especially at a time of such high volatility in the equities markets.

To learn all you need to know about or please visit one of the links above.