The Benefits Of FOREX Over Futures

From Agricultural Products To Financial Instruments

The current futures market includes much more than agricultural products. It is a worldwide market for all sorts of commodities, including manufactured goods, agricultural products, and financial instruments such as currencies and treasury bonds. A futures contract states what price will be paid for a product at a specified delivery date.

When the futures market is played by speculators, the actual goods are not important and there is no expectation of delivery. Rather, it is the contract itself that is traded as the value of that contract changes daily according the market value of the commodity.

Win Or Lose

In every futures contract there is a buyer and a seller. The seller takes the short position and the buyer takes the long position. The futures contract specifies a buying price, a quantity and a delivery date.

For example: A farmer agrees to deliver 1,000 bushels of wheat to a baker at a price of $5 a bushel. If the daily price of wheat futures falls to $4 a bushel, the farmer’s account is credited with $1,000 ($5 - $4 X 1,000 bushels) and the baker’s account is debited by the same amount. Futures accounts are settled every day.

At the end of the contract period, the contract is settled. If the price of wheat futures is still at $4, the farmer will have made $1,000 on the futures contract and the baker will have lost the same amount. However, the baker now buys wheat on the open market at $4 a bushel — $1,000 less than the original contract, so the amount he lost on the futures contract is made up by the cheaper cost of wheat. Similarly, the farmer must sell his wheat on the open market for $4 a bushel, less than what he anticipated when entering the futures contract, but the profit generated by the futures contract makes up the difference.

Profit In Speculation

The baker is still, in effect, buying the wheat at $5 a bushel, and if he hadn’t entered into a futures contract he would have been able to buy wheat at $4 a bushel. He protected himself against rising prices, but he loses if the market price drops.

Speculators hope to profit by the daily fluctuations in the futures market by buying long (from the buyer) if they expect prices to rise, or by buying short (from the seller) if they expect prices to fall.

How FOREX Differs

The foreign exchange market (FOREX) has several advantages over the futures market.

More Liquid. FOREX is a more liquid market — as the largest financial market in the world it dwarfs the futures market in daily exchanges. This means that FOREX stop orders can be executed more easily and with less slippage. The FOREX is open 24 hours a day, 5 days a week. Most futures exchanges are open 7 hours a day. This makes FOREX more liquid and allows FOREX traders to take advantage of trading opportunities as they arise rather than waiting for the market to open.
Commission-Free. FOREX transactions are commission-free. Brokers earn money by setting a spread — the difference between what a currency can be bought at and what it can be sold at. In contrast, traders must pay a commission or brokerage fee for each futures transaction they enter into.
Instant Transactions. Because of the high volume of trading, FOREX transactions are executed almost instantly. This minimizes slippage and increases price certainty. Brokers in the futures market often quote prices reflecting the last trade — not necessarily the price of your transaction.
Built-In Safeguards. Debits in futures are always a possibility because of market gap and slippage. The FOREX is less risky than the futures market because of built-in safeguards in the trading system.

The advantages of Forex

From how long this stock market is always a large playing field to attract people from the class for seniors to youth, from the university, you race to the popular classes. But the birth of Forex made for shares to cede the position in respect!
Forex so the advantage that so attractive?

1. Forex market is a diversified financial world:
Ko Forex market only to larger stock market, but also a lot more diverse lot. Approximately 4700 central banks and businesses, organizations and multi-national, the flooring trade, the wholesale and governments participating in this market daily. It has classes to attend this very diverse community with more market factors that do large a factor which can control the direction of Forex. This is completely different than stocks. As you see its stock of Vietnam’s past, just a small rumor can right a company or companies that bring skyrocketing. That is the nature of securities.
With Forex, you can be a even when markets go up or go down. The important thing to do is go up market or down, but the most important one in the Forex is you have to go with the direction of the market or ko. Therefore the principle of gold in Forex is "Go with the trend" (Together trend).

2. Financial market is open only 24 h during the day:
Forex can say is a market to overcome any limitation, a banking system, financial institutions, organizations, and Investment, the wholesale money and individual single worldwide are linked together to create a virtual market, operate 24 h day and 6 days a week. Like the internet and it was conducted using the internet. Therefore Forex which currently is earning money through the very "hot". Take the way of counter clockwise, when the floor closed this time is that other floor started on a new business. In other words, the Forex market is open from 5 h pm EST CN hours in Sydney to 4h pm Friday in New York.

3. Market with many changes in the world:
The continuous operation 24h with vast market of the Forex market is highly satisfied that, in a translation often has many changes. This is 1 point attractive to the large investor - because it helps players can freely open or close order as you order your own, 24hrs a day. As fluctuations of Forex especially with the currency pair of real help for the price more stable. Because participants always have the opportunity in order to open a good price. Remember that in Forex, you do have to find buyers like you invest in stocks. In financial markets this is the buyer and seller and you do not ever have to worry about "output" to your order.

4. Can be a market even follow any direction of any:
This factor I consider in this down but still want to remind you again. Advantages of the Forex is you can benefit even if the market is going towards. Ko it is limited by factors such as the sale of securities. In stocks you can and if a stock you buy on price only. This is because you are dealing with a currency pair. Means the currency purchased and sold other currencies should do what’s right based on the direction of the market. All have balance of the purchase and sale of collateral. Just "Together trend" that you can benefit. And even bought or sold, your ability to cash is a completely equal.
These are all advantages of the Forex market that makes this completely different fish.

How To Select A Forex Broker

If you’re thinking of trading FOREX, you’ll need to set up an account with a FOREX broker. Most traders use a broker to handle their transactions. It’s easy to feel overwhelmed by the volume of brokers offering online services. Before selecting a broker, it’s best to take the time to carefully research your options. Become knowledgeable about the available services and the fees charged by various brokers.

Brokers are the people or companies that buy and sell orders according each investor’s selections. Brokers make their living charging commissions or fees for their services.

You could, of course, attempt to decide on a selection of online brokers by getting in touch with their Internet help-desks and see how promptly they respond to your inquiry. You can check out whether their answers to your questions satisfy you. Remember, pre-sales service is likely to be better than post-sales service. This can be the case with any online business, not with just brokers.

Word-of-mouth advertising is always the most believable, and is applicable to FOREX trading as well. See who your family, friends and colleagues are working with and what, if any, complaints or problems they’ve experienced with different brokers.

You will want to be aware in advance about any fees involved. What is the spread and is it fixed or variable according to the type of account? Are there wider spreads for mini accounts? What other charges are there? Smaller spreads equate to higher profits for traders, but there may be a trade-off with poorer service.

Customer satisfaction and safety are part of the equation. Online brokers are supposed to offer automatic execution and have clear policies regarding slippage. They should be able to anticipate how much slippage to expect in both run-of-the-mill and fast-moving markets. You’ll want a broker that responds quickly with minimum slippage.

Margin accounts are the bread-and butter of FOREX trading. Things you’ll need to know include the margin requirements, how it’s calculated, does it vary with the currency traded and is it always calculated on the same of the week? Some brokers offer different margins for standard and mini accounts. Be sure you’re familiar with your broker’s margin terms before establishing an account.

Above all else, look for dependability and the facility to maneuver well in dynamic markets. Moving software is vital to online FOREX traders. The software should offer automatic trading. It may include trailing stops and trading from the chart special features or they may come attached to an extra fee. Be sure you know in advance what your trading needs are and what your broker charges for them. Check out the opportunities available by testing a demo account with a selection of online brokers.

It’s also a good idea to learn whether the broker insures clients’ funds and the scope of the insurance. Other research should include the broker’s policy for minimum account balances, interest payments on account balances, which currencies can be traded and whether non-standard sized lots can be traded.

A FOREX broker should be partnered with a large financial institution such as a bank to facilitate providing the funds essential for margin trading. In the United States brokers should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.

The bottom line is to gather all this information and then look at the overall picture before deciding to go with any particular broker.

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I’m in forex? And the elements to become a successful trader

However ko trader must be a completely professional, but with a period of currency traders over a year I can accumulate a small capital. I do not know for the other trader is but for me, Forex is a real art. And when they "stick" to it, that really is a passion difficult to cut.

Due to that I say, trading is very much reflected in the people and your personality. Someone please say that each: There trader male, female trader, big trader, trader …

Because each trader has an individual personality, an individual plan, a private trading system, a number of funds and an ability to accept risk in particular. Therefore the trade of how each person is different, who do the same and one is generated from the yourself. Factors to help you successfully do that is the way you choose to do the analysis, use market analysis or to follow the analysis which is in you and in the strategy you choose. The way to bring victory for sure I do not have to bring success to you. Should be the same as the business of selling, to be successful you must have its own definition and put a lot of blood to the heart here. Because we are each a separate individual. And based on your personality, how to resolve each situation in your trade that you like is a factor to determine success for you.

To find out how your trade, you must find out how the features of your business. Definition of this type will decide your trade and the tools or analysis for you.

Ask yourself yourself you are like? Your patience or impatient, or you decide to guess text, you are still exacerbates or exciting, or have law ko and dare venture or ko. Or find themselves and overcome the weaknesses, promote the advantages of available friends. Therefore, you will be out of their way. One way you can find this easily is by writing signed Thursday by the trade you. Write today you do how much, how many died, why you win, why you lose and draw experience from.

It is therefore that the successful principles limit they have pips in a day and limit the number of PIP that they will lose. Indeed this is very simple because you have 2 wonderful tool is take profit and stop loss. These people who certainly do not go and adventurous red-tape venture. But the eyes of a trader other strategies this is not any other gambling a trader and the other people it is a code to. Ko are professional. This is the acceptable risk and the focus on a currency. They want every order to the vast numbers.

I also own a venture, like conquering the peak and the path you should choose for me how do the other relevant bit of time.
Finally, the other short-term trader also achieved success that many people dream. While those who call them as I am a firm has less to what they want.

Currency trading is a job it is "serious" to the center’s participants. For me as a trader requires you to have confidence in yourself, be confident in their choices because Forex is a market with many changes may be after the initial order will be losses a bit and then if you have the psychological need to do then you lose because of lack of understanding is that you lose own. But i have confidence that is horizontally opposed, persistent and acknowledge their error. When you see you are serious holes you must review your order open and if true that you went the wrong way then you must acknowledge the truth đấy. Persistence only do you lose to U.S. only. Some people will say to me wait, then please wait Republic capital only.

Right market with the fluctuation of the Forex will make you hòa capital is lost, but how long is important. Is when you do to reduce their capital by foot, while a place with that amount if you accept losing U.S. and investing in a currency other you can recover the funds it? Besides these factors, the players have to Forex are the very basic fields. Because if i have a fear in me one day you will be the market "early afternoon sunshine rain" this will make you lose heart attack. : D. And a factor can do more that is missing is patience because no real interesting tí when you have to sit and allowed the analysis best. It is only interesting when that money flows into the bag you.

Forex made me learn and discover the many yourself. It the daily trade I feel any more perfectly .. And perhaps that is cause for Forex become attractive than the other of money.

Here are some knowledge and opinions of individuals I hope it will help your part before entering Forex. Hope that you do not play read this article to make the choice should participate in the brain need to do this. The player then you have that is completely bring hope will help you to mind a bit. The pro, please comment for me to continue to improve themselves over.

Something helpfull for you

33 Tips in forex I like best

# No one stronger market
# Transactions based on market trends instead of just focusing determine the highest point and the lowest price
# There are at least 3 trends of the market: the trend to increase, decrease trend and the trend is stable. You must have a separate strategy for each trend.
# Dung outside markets is also a 1 in the strategic needs of you.
# Buy quickly sell quickly when the market tends up or down.
# A signal to buy end with a sells signs and vice versa.
# Analysis of the failure of you and to draw lessons from it. All your lessons are expensive price, and you have to pay for it.
# Use the principles of money management.
# No transactions of loading and unloading, must have a plan
# Never leave your account must be in touch "margin call"
# Transaction model Pattern: revesal model, a model Exhaustion, and models breakaway always appear. Learning how to see the model in all transactions.
# KISS - Keep It Simple Stupid, more complex does not mean better but vice versa.
# Buy according rumored, sold by information "Buy The rumor, sell the news".
# Time is the decisive factor in currency transactions.
# Strategy "buy and hold" does not exist in the forex market.
# Always have 2 accounts. 1 My Item real and 1 virtual account. The study will not stop
# Analysis basic research causes of changes in the market, while technical analysis assessing the impact of the fluctuations that.
# In foreign exchange transactions, 4 points need to create a new model triangle (Triangle). Remember that 2 points to determine the direction of 1 cent.
# Road average (The Moving Average) is the only market that follow, not lead the market. It is not appreciated and only react to market. Only average for me know the starting point of a trend, but only after the trends that took place.
Cat # lose reduce losses is very difficult for the transaction. The ability to cut holes to lose the right skills are on the investors wire experience.
# Models is great concern because it is very common: Start Vai, 2 peak, Gap, Co, Gay support, can overcome, Triangle.
# Elliot Wave Theory - 1 trend, including 5-step waves is 1 han long trend
# Elliot Wave Theory - Quantity waves depend on the chain Finobacci
# Elliot Wave Theory - the market can not lower the bottom of the 4th wave.
# Elliot Wave Theory - Step 4 is not the wave lan waves through step 1.
# Support and resistance most efficient tool to identify and point to the market. To use the tools cogn block holes, chart support and protect important one.
# One of the industries affected most by USD is gold market. Prices of gold and USD often changes in the rate of one another.
# Dong Yen sensitive to changes in prices and the impact of market raw materials.
# The national production (Canada, Australia, N. Zealand) depends a lot on Japan than other countries.
# Dong Yen sensitive to forecast the Nikkei index, the Securities and Japanese real estate market.
# Dong money GBP (UK $) is managed in London will often be dropped reduction in U.S. markets, and sold small drops in Asia. Therefore, in New York, the banks stopped the price of lunch in the middle of GDB.
# Market transactions of the world’s largest London is occupied 32% of total market, New York with 18% and 8% with Tokyo. Followed by Singapore with 7%, 5% for Germany and Switzerland, France, Hong Kong accounted for 4% each country
# Do not use the market to meet demand đùa your pleasure.

Learn to accept risk in forex

To be able to invest successfully with many things to think about, but one of the things to consider is finding a transaction by yourself, a way transactions bring results. But very difficult to find an effective suit you, because no one rules, regulations about what you should learn something. That led many people to take up direction when you do not know what to do before entering the currency market. But one thing that any one should know that your ability to accept risk to any degree, in other words is the amount you accept the investment risk is how much. It is a problem related to the investment is considered with any who want to invest successfully in the currency market.

You can accept the risk, how much loss as the market changes with the strength biên, the first major changes sometimes occur in only 5 minutes or even in 1 minute …? You really have a need to consider carefully the risks can affect each transaction that you make? In fact many people have no idea or a feeling that they need to protect themselves from the risk is not necessary. In many cases they are not understanding the risks they are having. In this article we will review the type of risk and how risk management:

- What is Risk?

- The type of risk may encounter

- The rate of risk and profit potential

- Diversifying the list of your investment

What is risk?

Either do any work and what the potential risks. Main character, your lifestyle is a big role when deciding the level of risk you can accept. For investors, risk means the loss, loss of money invested. And if the investment choices you must make formal sports are not sleeping, it shows you can accept is the level of risk is large compared with their abilities.

Ability to earn as high means high risk as well. It can see through the minutes of the fluctuation and the lever in the currency market are reasons that this market is considered to be a market investment risks high. This is clearly the investment is not like anything to risk, to them, accept a risk level promises to give them a one level higher. Some others also have ideas that higher risk means the ability to earn a higher, and also the ability to attach a greater loss. However, not the chance to make a high and always accompanied with the ability to big loss. That is the reasons why many people have to define an investment strategy and implementation of all transactions by their strategy, and it is an important affect investment results. So need to see how to apply a managed money effectively to limit the risk that you may encounter. You never have to deliberately think when you put money investment of currency market, the contract you have to work hard to make one of each? If the answer is it means you belong to the type of investors hate risk. Naturally, if not, you belong to the type of investors like venture risk. But one, whether you invest in any market from any currency, securities, goods, the future market or any one any other market, the market potential risks to anticipating, outside the predicted ability of most people when looking into it.

Types of risk may encounter in the currency market

2 form the basic risks: the risk that the system - the type of risk may affect more progressive. Examples for this type of risk that political events are global, the natural disaster or wars. Remaining type of risk is not systematic - sometimes regarded as a form of risk is individual, separate. This type of risk is of course vice versa, only affect a few types of funds, some progressive. For example, the information economy affect a country or a region that, as a strike or an adjustment in the interest of the Canadian dollar. The diverse list of investment rải are many currency pairs are not related to each other is the only way you can help avoid the risks from non-type system.

So we know through 2 basic types of risk, time to go out kĩ forms of risk.

Risk is not paid money - This is the risk that a company that you open account transactions is the ability to pay when you request cash. Many investment money can still remember the Refco to occur in 2005. It is unfortunate Refco is one of the investment under the form of the world’s largest operations with investment brokers from market goods, the future market and currency have declared bankruptcy and the longer the company’s auction sales for the company or the other. Customers can not withdraw their money and investments from the original company to the entire assets of the company is sold out. And it is still too early to say that the old customers that have received all their funds. Therefore, the choice of the appropriate broker, stability sometimes is better to select the type of companies belonging to the largest.

Risks related to the situation in the country - this risk occurs when a country is the ability to control the economic and financial stability as their own. When a country problems, the debt that will affect the financial activities in the country and other countries concerned, have relations with that country. This risk also affects the financial markets as stocks, investment funds, the right to choose, the future and most important is money in circulation, use of it. Types of risk are often found in countries everywhere, are the developments of the face of large budget shortfalls.

Risks related to currency - When investing in currencies, you must remember that the fluctuation of the exchange rate in the country will affect the cost of money in the corresponding radical. For example, the economic events, political influence pound (GBP) will affect the transaction of the Euro (such as the fluctuation of the EUR / USD will have the same reaction pair GBP / USD before the event economic, political 2 that although money is money 2 separately and not included in the Funding 1). Know the water can affect the radical is a need for that to trade successfully.

Risks related to interest rates - the increase in interest rate reduction during the transaction will affect the amount but you can pay daily to maintain order transaction. The amount of interest is known under various names such as the rollover, swap, which is the time your order is placed and the transaction because the transaction typically order your spot - immediately should not be long-time transactions, This means the broker will have to close and open again under the command of 1 period, and when to open and close commands you will have to pay or receive interest based on the difference in rates of radical you are dealing. If you are selling the type of money with higher interest rates in the progressive, you will be charged at the time of rollover based on the provisions of brokerages on rollover. To learn more about the risks related to interest rate so you will need to contact the broker to have detailed information related to time of rollover, the cost / interest that you have may be subject or be eligible and other requirements of the account.

Risks related to economic, political - this risk is often said to economic events, political water has a direct influence, to immediately change the price of money that country. For example, when the intervention of the state to maintain a low rate of yen to boost exports.

Risk Market risks relating to market - This is the type of risk that we or mentioned, or face. Market risk is the fluctuation of the progressive occur daily. The fluctuations caused by the promotion of the best from the market. Biên level fluctuation is a measure of risk because of the changes is that every time someone searches for investment opportunities, a progressive is not as stable as they have large rate fluctuations, which sometimes means is more and more opportunities for investors.

Risk Technology Risk related to technology - This is the type of risk that many investors do not discount, though that most investors personally perform transactions through the Internet, and this transaction depends to technology. Are you ever concerned that you avoid the risk that a disruption, fails the machine technology or network broken? You have a backup on the network replaced when necessary? You have backup computer when the computer that you use damaged?

As you can see there are many types of risk that an investor needs attention, careful consideration when the transaction. Estimated interest rate but also to managed care, limit the risk is that investors must always be aware.
Risk and the ability to make a

Risk and the ability to make a will create challenges for the investors. Decide the level of risk you can accept, you can even leave your computer without worry, I still night when the commands in the transaction are still being implemented are considered to bring the the most important of a trader. Ratio between risk and profit levels that are considered a trader to see the lowest risk with a high level as possible. Remember that limited risk, the more limited benefit also much smaller, enter accept high risks, the more rates also increased profit potential much. The investment transactions are related to risk and the ability to search by. The understanding and implementation of place and stop the transaction strategy (effectively) will help you limit your risk is increased when the level in a potential.

Each order transaction will put the most money? How much money you accept the loss in each order transactions? Amount of risk you’re accepting with too great? If so, you may apply the wrong way in risk management while using the rate lever in the transaction. Select the appropriate lever and the deposit - a close margin requirement and in risk management.

No one level of risk is appropriate for all

Like no 1 food that everyone likes, as such, does not have a level of risk is appropriate for everyone. Once you determine a level of risk appropriate for you. You will need to estimate the rate of risk you’re willing to bear (on center lí) and the level of risk you can accept happens in reality. Usually almost all investors are willing heart lí ready to accept the risk level 1 is, but the risks they see that they are not interested in commitment acceptable level of risk that. Survive in the currency market in the long - long term - is most important to be able to earn from the market. To do so, you need to learn the ability to accept risk. It also means you will lose money in the school, but if the loss can help you understand the market, how the transaction as you do not lose much charge "fees" this . Money costs of the financial and spiritual account is always "pay" that investors have experienced is also not the exception in the first phase to start investing.

Conclusion

Each person will be able to ready to accept the level of risk varies. The accepted risk is not a number that, it changes the skills and knowledge of you. When you become more experienced, the risk the item may also increase based on the higher strategy, the system of your transactions. But do not let this make you become ngốc nghếch while always trying to find out how a money management perfect. Achieve a rate between risk and potential benefits received will help you achieve your goals and have a delicious sleep.

6 principles when playing gold forex

Play Forex is like observing a fish out swimming.Fishs when the fish swim very regularly, at the swimming amuck. So when we look at swimming, you are sure you can guess the first is our direction? What impact the way people move in? Why have them at very disciplined and by now every victory, there was not time them in a certain direction at all? You can not know unless you can guess what they feel when swimming. Fish have a natural instinct to identify the circumstances and conditions surrounding environment, from which a response accordingly hop.Vi that, if understand the instinct that you can pool the judgments them a more accurate.

Not only on fish, or go back to it .That forex forex game is similar in that view: we need to develop the ability to recognize what is happening around us. Certainly we can not predict everything will be all on the forex market can be based on understanding of market circumstances, to prepare the secret in time to the principles including 6 gold (will show later) , to make selection more accurate in the business. Once training is pho know this time, you have certainly become more common in chốn market and can start with a business plan completely.

Here are 6 principles forex gold while playing, with 6 of the pronouns is very familiar: Who What When Where Why and How ( "Who," "Why," "Where," "What", "When" and "As is"

Who trades forex?
These objects do play forex?
"Know who you know, hundred percent match win." Need to know who is participating in foreign exchange markets, why they are successful and how to compete with them?

? Why trade forex?
Why play forex?
Forex These bring very large profits, but not investors can obtain the benefits that number. You can be one of the investors make profits or not? It’s up to you

? Where should you trade?
Should start in business?
Select service providers that match the style of your business

? What should you trade?
Should business of any?
Select currency pairs, the penetration and leave the market, the methods managed money works best for you, help you can get the highest profit

? When should you trade?
When should the transaction?
Transaction when the situation seems favorable to the system of your business.

? How should you trade?
Transactions like?
Use the media to help maximize the ability to compete with your competitor another potential.

Online forex forums connect traders around the world

Most forex trading is done online, with investors looking at forex charts, considering trends, and making decisions. There’s very little interaction, even via the Internet, with other human beings. That’s one of the reasons that many traders also spend time in forex forums, chatting with other investors and sharing tips.

There are dozens of forex-related forums and message boards on the Internet. Some are tied to brokerage firms, while others are just freestanding forums on forex-related sites. Since the market is active 24 hours a day, you can usually count on the forums being busy at all hours too.

As mentioned, one of the reasons for visiting forex forums is simply psychological: Humans like to interact with other humans, especially when their day jobs require them to be alone with a computer for hours at a stretch.

Furthermore, there are a lot of emotions involved in trading. It’s real money, after all, and often large amounts of it. Online forums give traders a place to discuss the psychological effects of long-term trading, how it can become addictive and nerve-racking, and what impact it has on everyday life. You could think of message boards as being a sort of support group for traders, or the equivalent of the office water cooler.

Forex forums have more practical uses, too, of course. Traders find the tips and strategies offered by their fellow traders to be invaluable. Forums are often rife with people more seasoned and experienced than the average person, which benefits the newcomers. And many experienced traders enjoy visiting the forums because it gives them a chance to share their wisdom with others.

Forex forums are also useful for gauging the general mood of the marketplace. The charts and rates give you the cold, hard facts. But many times making a decision to buy or sell comes from the gut, based not just on the numbers but on how the market FEELS. The forums are a place to see what other traders are thinking right now. Do they feel optimistic? Pessimistic? Are things looking up? Are they discouraged? All of this information can be taken into account when considering a trade.

ForexFactory.com and ForexForum.net are two very popular, widely visited message boards. There are dozens of others out there, too. All forex forums give traders a chance to connect with their colleagues and to learn from one another.

Has Cash Been King for the Past 10 Years?

If you’re like most investors, you’ve been nearly brainwashed with conventional market “wisdom” that stocks are the best way to grow your portfolio.

You would be crazy not to have your money in the markets, right?

But when markets drop, as we’ve seen in this credit crisis, it’s amazing how quickly the story changes.

Steve Hochberg and Pete Kendall, editors of Elliott Wave International’s Financial Forecast, challenged the notion of stocks’ superiority years before this latest downturn.

Learn how cash has been king – and will remain so – far longer than the latest news headlines may have you believe in this free excerpt from Elliott Wave International’s Credit Crisis Survival Kit.

Elliott Wave International has also made the full Credit Crisis Survival Kit available free for a limited time. In addition to this excerpt, it contains 14 other articles, reports, and videos that reveal how to survive and prosper during the credit crisis.

Cash’s Invisible Reign Made Visible
[excerpted from Elliott Wave Financial Forecast, August 2008]

With respect to cash and its status as the preeminent financial asset, however, we are starting to wonder if investors will ever come around to our point of view, which, as we explained in the March special section, is that there are times when “the phrase ‘focus on the long term’ means “get out and wait.’” As we also pointed out, the last eight years are clearly one of these times, as cash has outperformed all three major stock averages over this period. A July 3 USA Today article shows how this outlook is actually becoming more farsighted as the bear market intensifies:

3-month Treasuries Beat
S&P 500 for past 10 Years

The article says, “Investors who bought stocks for the long run are finding out just how long the long run can be.” But the farther back in time cash’s dominance stretches and the rockier the stock market gets, the farther investors seem to move from ever taking anything off the table. After stating that “there can be times, long times, when stocks won’t beat T-bills,” a professor and popular buy-and-hold advocate is cited as “optimistic that the next 10 years will be better than the past decade.” In March EWFF stated, “Cash will continue to outperform until stocks are no longer fashionable.” There is no sign that such a condition is even close to happening.

It’s somewhat amazing that cash is not capturing anyone’s fancy because a tremendous society-wide thirst for cash is spreading fast. “In a deflation,” the Elliott Wave Financial Forecast has stated, “Rule No. 1 is to unload everything that isn’t nailed down. Rule No. 2 is to sell whatever everything remaining is nailed to.” The banking system is surely deflating, because, echoing Elliott Wave Financial Forecast’s wording again, “Desperate American Banks Are Selling Everything That Isn’t Nailed Down.” SunTrust is selling its stock in Coca-Cola, an asset the bank held for 90 years. Merrill Lynch sold its founding stake in Bloomberg as well as various other subsidiaries.

Meanwhile, “Americans are selling prized possessions online and at flea markets at alarming rates.” Pawnshops and auction sites are booming. At Craigslist.org, the number of for-sale listings soared 70% in eight months. This fits with our review of Craigslist’s prospects when it was getting started in 2005: “This is just the set-up phase. Once the global garage sale really gets rolling, truly astounding volumes of dirt-cheap goods will be available on-line and elsewhere.” The global garage sale is on. The chart of the U.S. savings rate shows that the bull market in cash has come to life.

A 30-year downtrend in savings rates ended at minus 2.3% in August 2005. In May 2008, the savings rate skyrocketed to 5%. This jolt may be somewhat overstated due to the arrival of the government’s stimulus checks, but the burst should be the start of a critical new mindset among consumers. When the government showered the economy with 0 checks, many did something they never would have thought of through most of the bull market: They put the money in the bank, which is exactly what the administration did not want. In fact, federal, state and local governments are desperate for the tax revenue that a little ripple-effect spending would have generated.

According to the National Conference of State Legislatures, states must close a billion shortfall in the current fiscal year. “The problem today is that tax revenue is vanishing,” says a story about the sudden appearance of the worst fiscal crisis in New York since 1975. Even cities like East Hampton, New York, where someone paid 3 million for an oceanfront house last year, are out of money. “Nobody understands how it happened,” says one resident. The pages of this newsletter show otherwise. If we are right, a deflationary decline is depleting and destroying cash flows in novel new ways that no one alive has experienced before.

FXDD Today: A recap of today and preview of the Economic Releases for Thursday, November 6th

FXDD Today combines end of day prices, a graphical preview of the economic releases for the next trading day, and a Market Recap of the current days key activities in a concise one page format (in PDF). It is designed to be used through the trading day and also as a historical record for review. We hope you find it to be useful and helps you become more informed, so you can be a better trader

Forex Avenger Live Trade Videos

Hello everyone. In my previous postings regarding the Forex Avenger mechanical forex trading system I forgot to mention that you can view several videos which show how the system works in a live trading environment. Checkout the videos by clicking on the image below:


Cheers, and happy trading everyone!

ZuluTrade Top Forex Signal Providers For Week of Nov 7 2008

Hey everyone. Here are the top forex trading signal providers for this week ending Friday November 07, 2008. My account is up 181 pips. It may not be a lot for some, but considering the huge volatility that manifested itself this week I am happy with anything that is not a loss. Here are the top performers:

Top Signal Providers for this week:

Definitive Guide to Fundamental News Trading

Currency Market Moves Because Of Fundamental News Releases!

Taking advantage of fundamentals is ALL that separates the pro trader from the wannabes.

And the best part is… You don’t need to be an economists or have a degree in finance to make money with news.

Take two traders, both just beginners, both took the same beginner’s Forex course and learned the basics of trading. Both have similar education and background, and both love trading and their goals are to trade for living for the rest of their lives. Let’s call them “John” and “Henry”.

John spends all his time studying the chart, he experiments with new indicators, new parameters, and constantly trying out new trade ideas. He gets his emotions in line. But he never realizes the fundamental factor to Forex trading… as a matter of fact, he purposely ignores news releases and he never makes the simple correction that will make his trades profitable.

John, later in his life, is the guy you might find frequenting discussion forums, public online trade (chat) rooms, posting some amazing trades, but never ever show you his live account statement… that is, if he even have a live account at this point.

Henry, on the other hand, early on senses that there must be more to Forex trading than just looking at the chart. He may not understand the fundamental news effect to the world economy, but he makes a simple adjustment in the way he looks at trading. Despite the warning from die-hard technical traders to ignore the news, he trusts his intuition and does what’s right… not what people told him.

Henry becomes a professional trader. You never see him frequenting Forex discussion forums, or online trade rooms, because he’s too busy making a fortune in his live account…

This is NOT a bogus comparison. You CANNOT become a successful Forex trader as long as you think and act like 95% of Forex traders, who end up losing.

Forex Guide - An Introduction to Forex Trading

Initially, I’d like to say welcome to this blog! This blog was intended to give facts for traders and investors who want to learn about the forex marketplace and what it can offer.

Getting Started: Self-Traders

Your initial step should be to educate yourself about the marketplace and trading in universal. Read books, get courses, learn strategies, and live out, practice, practice! Mainly brokers offer demo accounts which will allow you to practice trading without risking real cash. You can pace up this procedure by using particular forex simulation software.

For a few behind facts on the foreign exchange marketplace, visit the Forex Marketplace Snapshot to learn concerning the size of the marketplace, the majority widely traded currency pairs and where mainly of the trading takes place. For more thorough facts about the terms used in the forex marketplaces as well as a few general and exact forex trading terms visit Forex Basics.

Trading Tips

1^st. Study or expand a profitable trading strategy. Visit the ebooks, courses, books and physical forex systems pages for a few ideas.

2^nd. never over-leverage your account! This may be one of the mainly ordinary reasons besides not having a profitable trading plan that many new sell traders blow out their accounts. A high-quality rule of thumb is to not leverage your account more than 10 times its value. What that means is that you don’t unlock positions worth more than 10 times the value of your account. For example, you wouldn’t open trades worth more than ,000 if you only had ,000 in your account. For a more full explanation on influence, click here. Lastly, don’t spend or risk cash that you can’t pay for to lose.

Selecting a Broker

Astonishingly, this may be one of the mainly important decisions you make outside of developing or learning a gainful strategy and not over-leveraging your account. You require to find a moral broker who will not play tricks with you with their pricing and prevent you out of trades in order to build up their wallet! This is characteristic behavior of marketplace makers who have a financial incentive for you to lose when they are on the opposite side of your trade. Not all marketplace makers act in this way, so it is a good idea to do your research on all brokers and marketplace makers before placing your money with them. You can open an account with one of F4forex’s preferred forex brokers or make sure the Forex Broker Ratings part of this blog to help you make the correct decision when it comes to choosing a agent.

Handled & Semi-Managed Savings

Some marketplace participants may wish not to take the self-trading way but instead opt for a handled account, automated trading system or auto-trading supplier. Once more, don’t over-leverage your account when using an automatic scheme or autotrading provider. Ask your managed account supplier how much leverage they use when they place their trades so that when a drawdown occurs it will be limited to a reasonable level. It is also a great idea to diversify your investments amongst several providers, systems and/or trading styles. When one is up, the other may be down and vice versa. And, though it has been said many times before, don’t invest or risk money that you can’t afford to lose!

With those ideas in brain, this blog has been agreed in a way to take you throughout many aspects of the sell mark forex marketplace so you can study at your own speed and call the parts that notice you typically.

Blog Structure

This blog is classified into 5 main sections:

• Forex Learning - This section supplies a background to the forex marketplace to assist you learn, discover and become informed about a variety of aspects of the foreign swap marketplace.

• Forex Products - This part provides more in depth forex teaching and specialty asset products, including forex books, ebooks, courses, physical systems, automated systems and the like.

• Forex Services - This part provides services for those by now in the marketplace looking to assist them in their trading and/or invest in the forex marketplace.

• Forex Brokers - This division covers how to select a broker, broker listings, comparisons, ratings and reviews.

• Forex Resources - This division provides a broad range of gratis resources.

CURRENCY TRADING SUMMARY – 19th June 2008 (00:30GMT)

US dollar down as credit crisis hits regional banks.

U.S. Dollar Trading (USD) with little economic data out yesterday markets were driven by equities and commodities. US stocks were down again as focus switched to the regional banking troubles hit by mortgage delinquencies. The Dow Jones touched below 12000 for the first time in 3 months. US crude inventories showed a decline of 1.2 million barrels and combined with dollar weakness sent oil higher again. In the US share markets, the NASDAQ was down 28 points (1.14%) and the Dow Jones was down 131 points (1.08%). Crude Oil closed up .29 ending the New York session at 6.20 per barrel. Looking ahead, weekly jobless claims forecasted at 375K. June Philly Fed is also released expected rebound from May’s -15 to -10 this month.

The Euro (EUR) continued to pivot the 1.5500 level as new a direction waits to be established. The Euro bounced off day lows as Oil popped higher. Further gains were tempered by newly elected Italian Prime Minister Berlusconi comment “It is unfortunate that the ECB has done nothing to stop hyperinflation of Euro”. Overall the EUR/USD traded with a low of 1.5463 and a high of 1.5538 before closing the day at 1.5528 in the New York session.

The Japanese Yen (JPY) stock market weakness failed to provide support as continued high Oil and yield differentials weighed. EUR/JPY made new multi-month highs briefly trading above 168. Overall the USDJPY traded with a low of 107.72 and a high of 108.44 before closing the day around 107.85 in the New York session. BoJ Governor Shirakawa is scheduled to speak.

The Sterling (GBP) continued to trade heavy as the BoE minutes came in 8-1 with the lone dissenter pressing for a rate cut. The Cable was lifted off lows from a higher than expected CBI Industrial Trends Orders came in stronger at +1 vs. market expectations of -12. Late day USD weakness also provided support. Governor King commented that Q2 is expected to slow considerably, further delaying any rate rises. Overall the GBP/USD traded with a low of 1.9480 and a high of 1.9610 before closing the day at 1.9597 in the New York session. Looking ahead, May Retail Sales expected to come in at -0.1% up from last months -0.2%.

The Australian Dollar (AUD) was helped to day highs as commodities bounced on general USD weakness. AUS/JPY made new multi month highs above 102. Overall the AUD/USD traded with a low of .9403 and a high .9472 before closing the day at .9469.

Gold (XAU) bounced as oil and risk sentiment started to creep into the market. Questions about the US Fed’s willingness to raise rates have improved Gold’s position as an inflation hedge. Overall trading with a low of USD0.80 and high of USD5.60 ending the New York session at USD4 an ounce.

—–

Euro – 1.5575
Initial support at 1.5461 (June 17 low) followed by 1.5303 (June 13 low). Initial resistance is now located 1.5552 (Jun 17 High) at followed by 1.5587 (Jun 12 high).

Yen – 107.65
Initial support is located at 106.8 (June 12 low) followed by 106.24 (Jun 10 low). Initial resistance is now at 108.61 (Feb 14 high) followed by 108.98 (Jan 14 high).

Pound – 1.9600
Initial support at 1.9472 (June 17 low) followed by 1.9410 (Jun 13 low). Initial resistance is now at 1.9612 (Jun 18 high) followed by 1.9698 (June 10 high)

Australian Dollar – 0.9455
Initial support at 0.9304 (50% retracement of the .8953 to 0.9655 advance) followed by 0.9291 (May 15 low). Initial resistance is now at 0.9491 (Jun 12 high) followed by 0.9527 (Jun 10 high).

Gold – 894
Initial support at 858 (Jun 12 low) followed by 850 (Psychological Number). Initial resistance is now at 895.7 (June 16 high) followed by 900 (round number).

Why Your FDIC-Backed Bank Could Fail

With big bank bailouts dominating the news, there’s no better time to get the truth about bank safety.

This informative article has been excerpted from Bob Prechter’s New York Times bestseller Conquer the Crash. Unlike recent news articles that are responding to the banking crisis, it was published in 2002 before anyone was even talking about bank safety. However, you may find the information even more valuable today than ever before.

For even more information on bank safety, visit Elliott Wave International to download the free 10-page report. It contains details on how you can protect your money from the current financial crisis, updated for 2008.

Risks in Banking

Between 1929 and 1933, 9000 banks in the United States closed their doors. President Roosevelt shut down all banks for a short time after his inauguration. In December 2001, the government of Argentina froze virtually all bank deposits, barring customers from withdrawing the money they thought they had. Sometimes such restrictions happen naturally, when banks fail; sometimes they are imposed. Sometimes the restrictions are temporary; sometimes they remain for a long time.

Why do banks fail? For nearly 200 years, the courts have sanctioned an interpretation of the term “deposits” to mean not funds that you deliver for safekeeping but a loan to your bank. Your bank balance, then, is an IOU from the bank to you, even though there is no loan contract and no required interest payment. Thus, legally speaking, you have a claim on your money deposited in a bank, but practically speaking, you have a claim only on the loans that the bank makes with your money.

If a large portion of those loans is tied up or becomes worthless, your money claim is compromised. A bank failure simply means that the bank has reneged on its promise to pay you back. The bottom line is that your money is only as safe as the bank’s loans. In boom times, banks become imprudent and lend to almost anyone. In busts, they can’t get much of that money back due to widespread defaults. If the bank’s portfolio collapses in value, say, like those of the Savings & Loan institutions in the U.S. in the late 1980s and early 1990s, the bank is broke, and its depositors’ savings are gone.

Because U.S. banks are no longer required to hold any of their deposits in reserve, many banks keep on hand just the bare minimum amount of cash needed for everyday transactions. Others keep a bit more. According to the latest Fed figures, the net loan-to-deposit ratio at U.S. commercial banks is 90 percent. This figure omits loans considered “securities” such as corporate, municipal and mortgage-backed bonds, which from my point of view are just as dangerous as everyday bank loans. The true loan-to-deposit ratio, then, is 125 percent and rising. Banks are not just lent to the hilt; they’re past it.

Some bank loans, at least in the current benign environment, could be liquidated quickly, but in a fearful market, liquidity even on these so-called “securities” will dry up. If just a few more depositors than normal were to withdraw money, banks would have to sell some of these assets, depressing prices and depleting the value of the securities remaining in their portfolios. If enough depositors were to attempt simultaneous withdrawals, banks would have to refuse. Banks with the lowest liquidity ratios will be particularly susceptible to runs in a depression. They may not be technically broke, but you still couldn’t get your money, at least until the banks’ loans were paid off.

You would think that banks would learn to behave differently with centuries of history to guide them, but for the most part, they don’t. The pressure to show good earnings to stockholders and to offer competitive interest rates to depositors induces them to make risky loans. The Federal Reserve’s monopoly powers have allowed U.S. banks to lend aggressively, so far without repercussion. For bankers to educate depositors about safety would be to disturb their main source of profits. The U.S. government’s Federal Deposit Insurance Corporation guarantees to refund depositors’ losses up to 0,000, which seems to make safety a moot point. Actually, this guarantee just makes things far worse, for two reasons. First, it removes a major motivation for banks to be conservative with your money. Depositors feel safe, so who cares what’s going on behind closed doors? Second, did you know that most of the FDIC’s money comes from other banks? This funding scheme makes prudent banks pay to save the imprudent ones, imparting weak banks’ frailty to the strong ones. When the FDIC rescues weak banks by charging healthier ones higher “premiums,” overall bank deposits are depleted, causing the net loan-to-deposit ratio to rise.

This result, in turn, means that in times of bank stress, it will take a progressively smaller percentage of depositors to cause unmanageable bank runs. If banks collapse in great enough quantity, the FDIC will be unable to rescue them all, and the more it charges surviving banks in “premiums,” the more banks it will endanger. Thus, this form of insurance compromises the entire system. Ultimately, the federal government guarantees the FDIC’s deposit insurance, which sounds like a sure thing. But if tax receipts fall, the government will be hard pressed to save a large number of banks with its own diminishing supply of capital. The FDIC calls its sticker “a symbol of confidence,” and that’s exactly what it is.

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For more information on bank safety, including how to choose a safe bank during the current financial crisis, download EWI’s free 10-page report

I’m riding a losing trade, What should I do?

by Corbin Layton and Rob Booker

Have you ever said to yourself, “Well, going long (or short) the EUR/USD looked good at the time I took the trade!“

Perhaps you’ve had an experience where for the past several weeks, you’ve been haplessly watching a poor little EUR/USD trade spiral out of control to the point where you can hardly contain pulling your hair out by the roots. You’ve witnessed this innocent little trade morph into a horrifying beast which you are now referring to as the “drawdown monster.”

We’ve all been there, haven’t we? Paralyzed by fear or — if you’re anything like me sometimes — just stubbornly unwilling to admit defeat and close the darn trade. It’s a difficult thing to confess when we’re wrong, but at what point do we say enough is enough?

So, the question is simply this—what should my next move be? How long should I hang onto this trade that just seems to be going from bad to worse to absolute train wreck? Should I cut my losses and consider it a painful lesson learned or do I hang on to this bad boy and hope it comes back? Stranger things have happened, right?

Well, let’s put something into perspective.

Losing Money

Let’s say I have ,000 in my margin account and I lose ,000. My drawdown in this case would be 50 percent. Now, what percentage of that ,000 would I have to make in order to get back my original ,000? 50 percent, right? Wrong! I would have to make back 100 percent of my ,000 to get back to my original ,000!

The point of this harrowing example is this—it’s very easy to lose money and a whole lot harder to get it back.

“But Rob, I would never lose 50% of my account in one trade.” For your sake, I certainly hope not. But for the sake of argument, let’s just say you do. How on earth do you get yourself out of this pickle?

Perhaps this question is best answered through the sad and forlorn tale of my good friend and currency trader, Shasty McButterknuckle, who is actually the alter-ego personality of a member of the marketing department at IBFX.

Shasty has a heart as good as his intentions, but he perpetuates three tendencies that seem to get him in trouble and constantly keep him in the red:

Tendency #1—A little thing called pride!

Shasty has a penchant for hanging on to trades for nothing more than his heightened sense of ego. He is so committed to proving that his original decision was right that he’s willing to stubbornly cling to it until the very end. And interestingly enough, the more pips he loses, the more convinced he is that his original premise was justifiable. Shasty holds on to losers in an effort to prove that he was right—both in his own eyes and in the eyes of others.

Solution: There should ALWAYS be a reason for your trading moves. A decision based on ego will inevitably come back to haunt you. A trader who fails to maintain a strict trading plan won’t know where to exit a trade or how much money he could make or lose. This “fly by the seat of your pants” style trading more often than not leads to disappointment and frustration.

Tendency #2—Adding to losing positions

Shasty sometimes not only holds on to a losing trade but also actually adds positions to it, rationalizing that his targets will be hit when the currency changes direction. Of course, this method is super-terrific if the currency does, indeed, change direction, but if it doesn’t and he maintains that losing position, it simply hastens the painful demise of that poor little trade.

Solution: Adding to losing positions in order to “save yourself” is an entirely different ballgame than doing so because it’s a valid part of your trading strategy. If a trader is adding positions for the right reason, the key to remaining competitive lies squarely within his psychological ability to ride out a big drawdown—a feat that should never be taken lightly—and then allowing the trade to reach its maximum potential.

Tendency #3—Loyalty

Perhaps Shasty’s biggest downfall is his undying love and commitment to a particular currency pair. In this case, his strength is also his weakness. His sense of loyalty holds him back from making sound, educated trading decisions.

Solution: Fundamentally speaking, your feelings about a given currency pair don’t mean squat. The key to remaining competitive in Forex trading is allowing the market to tell you about the currency and then pouncing, not vice versa. Give more weight to what is happening in the market than to your attachment to the pair.

So, we find ourselves back at the beginning—Riding a losing trade and wondering what to do next.

A dear friend once told me, “Wise people learn from their own mistakes, but super wise people learn from the mistakes of others.” So what can we learn here? Firstly, don’t trade like Shasty! Be ye not so foolish. Learn from his mistakes and your margin account will thank you.

Secondly, take heed to these sound trading principles:

• Grasp a bigger picture perspective on the market. Before you begin trading for the day, have a look at the weekly and/or monthly chart. They can often provide you a broader perspective of a particular currency pair.
• Accept responsibility for your own actions. When you have a losing trade, don’t look for others to blame. You made the decision to place the trade. You control your trading destiny. You and you alone.
• Maintain a strict adherence to sound money management. Buying into the “get rich quick” scheme of Forex trading has left countless numbers of traders with dwindled margin accounts. Manage your assets well and you will be a much happier—and much more competitive—currency trader.

We’re experiencing a once-in-a-decade event in the Forex market, my friends, and it isn’t going away anytime soon. An extraordinary confluence of events has thrown nearly every financial market into chaos and, sadly, Forex was not immune. I’m reminded of a rather macabre but ever so appropriate phrase I once heard that went a little something like this—adapt or die.

Drawdown is a painful reality in Forex trading and despite how much you punch, kick, and fight, it will undoubtedly happen to you at some point. It’s up to you to decide how you’ll handle it. It can make you angry and vengeful or it can make you wiser and more disciplined. I can’t speak for you but I most certainly prefer the latter.

As fellow currency traders, we always welcome your thoughts, comments and questions. We’re always here to help.

Happy trading!

Corbin (from the U.S.)
Rob (from Dubai, UAE)

Learning to Stop Trading

We talk a lot in the trading world about when to trade; we talk about entries and exits and profit targets and stop losses and moving average crossovers. There are endless threads on massive online discussion boards about trading the news, or whether inside price action “Wicked Fairy” candles are better than “Samurai Warrior Face” inside bars. The arguments about the best place to get into a trade are so extensive that, by now, it’s difficult to tell the difference between the methods.

But we don’t talk enough about when it’s time to quit.

I found that learrning when to stop trading was just as difficult — or maybe more difficult — than knowing when to take a trade in the first place. For me, one of the real breakthroughs in my trading was when I realized that I didn’t have to trade, that not every day (or every hour) was suitable for trading, and a day off could be just as valuable as a day spent staring at the dual-screen setup.

The fact that the currency markets are open nearly 24 hours a day for 5.5 days per week — and that a holiday in one country doesn’t necessarily shut down trading for the rest of the world — makes it very tempting to open up the trading platform at nearly any time of the day.

You’ve certainly got to make your own decisions about what’s right for you in your trading, but here are some ideas about why it’s a good idea to stop, or when the right time might be.

Stopping when you’re losing money

This is probably the hardest thing to do, and I’ve seen hundreds of traders lose more money than they ever thought they could, or wanted to, because they just simply couldn’t stop trading when the chips were down.

For example, when we’ve just lost money, we often react hyper-emotionally. I know that when I have a losing trade (especially one that happens really quickly), I want the money back right away. And that desire to get the money back right away leads to a nearly overpowering urge to trade again — now that I’ve seen where the market is really going (or at least that’s what I am thinking), I want to take advantage immediately.

If I can get that money back right away, then I don’t have to suffer any indignity that comes with a losing trade.

The truth is that we rarely recoup all those lost profits back in one big counter-trade, or one big “reaction” trade. This can be the type of situation where we start spiraling out of control, taking trade after trade and losing a significant amount of money.

It’s sometimes just best to quit for a bit when we have lost. This might be for an hour, for a day, even for a week or month. This time away from the market can give us the space we need to think clearly and get ourselves in a productive state of mind again.

Stopping when we are hyper-emotional

One of the worst times to trade is when we’ve had a distressing experience. Ever made a trade after you’ve had an argument with your spouse or partner about money? Or when you’ve had a particurarly tragic event in your life?

These can be terrible times to trade, because our focus is on the recent emotional experience, and not on what we’re doing. When we’re not focused or attentive, we make stupid mistakes that can cost us a lot of money.

I have seen emotional traders remove stop losses to “prove a point,” or get back at someone through their trading. The trading becomes an expression of their emotions, or an outlet for feelings that they can’t say, or didn’t say, or can’t express in any other way.

The market, unfortunately, doesn’t know us personally and couldn’t care less about our individual difficult life experiences. It’s not going to give us a break or go easy on us because we’ve had a bad day.

So if you’ve had a bad experience, consider taking some time to sort out your feelings before you fire up the trading account.

Stopping when we’ve made money

This might sound strange at first, but it can be one of the most powerful additions to your trading plan: a goal for when you are going to stop trading if you’ve made money.

Perhaps you set a goal to make 50 pips a week, or a month. That’s a goal, mind you, and I’m not implying that everyone or anyone can make 50 pips, or that the majority of traders can make that many pips (remember, trading forex is risky, and the majority of traders lose money — that’s a topic for another week) . The fact is, I don’t know what the right number goal-wise is for you. But if you look back over your trading history, can you start to get a sense for what you are able to achieve, if you are a profitable trader?

I have seen traders, time after time, start the week off strong, and get to Tuesday or Wednesday with a reasonable amount of profit, only to see them lose the money in reckless trading during the rest of the week.

In fact, some of these traders consistently lose money week after week, even though early in the week — for most weeks — they are actually profitable.

We sometimes treat profits as “found money,” or money that we can afford to lose. We have a few winning trades and then we give ourselves room to take an “experimental” trade, or a trade just for the hell of it. This is tantamount to gambling.

Idea: go back in your account and see if you recognize a pattern of making money during the beginning of the day, week, or month. Are you more successful at the start of the week or the end of the week? In what ways are the trades you take different at the start of the day compared to the end of the day? Or week? Or month?

Question: Does this mean that there’s never a good time to trade?
It sounds like it’s always time to stop!

Trading is not right for everyone. And trading all the time is probably not right for many people at all.

But that doesn’t mean that stopping your trading before you start is a good idea. I’m not saying that there are never good times to trade. Here are some thoughts:

1. Consider having some quiet time at the start of each day before you trade. My friend Chris McCloughlin has a rule that he never trades unless he’s been awake for an hour — because he realizes (big surprise) that he doesn’t trade well if he is super tired.

2. Measure your emotional state. This doesn’t have to be a sit-down with a professional therapist every time you are about to trade. But it’s not so difficult to take a moment and gauge your own emotional state at the start of the day. If you think you’re a complete wreck today, maybe it’s a better day to go feed the ducks. Or see a movie.

3. Have a trading plan, and use it. Make a version of your trading plan that you can keep near you, or keep you focused. Not every trader needs to have the entire plan in plain sight, but most of us can benefit from a regular reminder of what kind of trades we’re looking for. It’s important to allow yourself to be picky with your trades and wait for the setups that you know you like best.

4. Are you a better trader at a certain time? When you go back through your trade history, do you recognize times that you are more successful? It doesn’t have to be a time of day or day of the week; it could be near the time of some fundamental news. It could be around the time when the currency pairs you watch consolidate in a specific pattern. Recognizing when you do best as a trader can help you get more specific about when you are going to dedicate time to take and manage your trades.

Do you really need to do all this analysis, or all this thinking about stopping and starting your trading? Maybe that’s not your thing. And it’s up to you how deep you go into efforts to learn more about yourself and your trading. I’ve found it to be true that this kind of deep thinking about what you’re doing pays personal dividends — regardless of how useful it is specifically to your trading. I hope you’ll consider some of the things I’ve mentioned here.

Most of all, I invite you to keep in touch with me about this topic, and let me know what you’ve learned about the best times that you trade, or how you know when it’s time to stop trading. We always love to hear from you, and the folks at IBFX are here to talk with you anytime.

Happy trading!

ZuluTrade Top Forex Signal Providers For Week of Nov 14 2008

Hey everyone. Here are the top ZuluTrade forex trading signal providers for this week ending Friday November 14, 2008. My account is down 561 pips :( This crazy market volatility is really challenging. Anyways, without further ado here are the top performing signal providers:

Top Signal Providers for this week:
fxtrader7 277 pips ,403.06
hehehe 986 pips ,363.77
Forest Fx Capital 476 pips ,111.43
newdoug 500 pips ,291.99
MillionaireCMG.com 2032 pips ,539.95

Wow, 2032 pips coming from MillionaireCMG. That’s quite an impressive result. I’m going to keep an eye on this signal provider and if they keep up this stellar performance I will add them to my ZuluTrade portfolio.

Free Video Lessons from Trading Masters

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A New Look at Exit Strategies

Author: Chuck Le Beau
Running Time: 90 Minutes

Many new traders - the majority, in fact - suffer big losses because of a lack of planning and understanding in setting up a sound exit strategy. In this important new exclusive DVD, well known trader and author Chuck Le Beau reveals the methods he has used for years as a successful institutional trader.

Classic Indicators - Back to the Future

Author: Linda Raschke
Running Time: 90 minutes

Charismatic professional trader Linda Raschke employs classic methods handed down by the forefathers of technical analysis. Join in and let Linda guide you in a first rate keynote address given at a recent international trading conference. Get back to the basics and refine your skills by seeking the wisdom of a proven market wizard. Class Indicators is for everyone. Whether you are s short term trader in the S&P 500, enjoying trading stocks or just a student of the markets, you’ll love this exclusive DVD. Recognized in Jack Schwager’s own classic, “The New Market Wizards”, Linda shares her favorite trading techniques in a 75-minute DVD presentation you’ll watch over and over again. Learn valuable techniques, how to stay disciplined and what it takes to keep you running at full speed!

I Am A Turtle

Author: Russell Sands
Running Time: 93 minutes

Russell trades the same way that he always has, following trends the way Richard Dennis taught the Turtles to do fifteen years ago. Russell shows you the exact criteria that the turtles were taught to use in order to get a handle on which breakouts or types of breakouts have a higher probability of succeeding - which have the potential to become the kind of monster trend the Turtles are famous for riding to enormous profits. In this seminar, Russell itemizes a list of approximately twenty different criteria and/or conditions that the Turtles examine every time they look to initiate a trade. He explains each item carefully and demonstrate the effectiveness of each by looking at current charts of various markets.

Avoid Common Trading Pitfalls

Author: Mark Cook
Running Time: 85 minutes

In this fast-paced DVD, trading champion Mark Cook shares his ideas for making winning trades. As the first place finisher in the options division of the 1992 U.S. Investing Championship, Mark credits research, planning and an attention to detail for his astounding 536% return. In this presentation, Mark reveals how he uses common sense and hard work in just the right proportions to dramatically improve his trading success. After viewing this tape, you’ll come away with a realistic perspective on how much money you can expect to earn with your trading and how much time you’ll need to spend to achieve your goals.

Why isn’t there a forex currency index?

Just like the stocks are combined into NASDAQ for example, then why can’t you combine the forex pairs and assign them a mathematical value???

Take a look here:
http://www.fxstreet.com/rates-charts/currencies-glance/

Fxstreet lists 34 forex pairs.

Benefits:
- Less risk.More pairs - less risk. Traders will take advantage because the market is open day/night in contrast to the daily trades among the stock market. That said, the forex traders gain several times more action with reduced risk, thanks to the combination of many pairs at once. No surprises anymore:Think about it: The european bank annouces higher rates, but the expectations were for lower rates. So, if you trade EUR/USD you will lose when you have selled. With such important news you will lose perhaps over 50 pips and if you trade on 100:1 leverage buying more than 1 lot…say goodbye to your money. Even without leverage the big players will lose, unless they utilize some industrial espionage to predict the rates that are going to be anoounced. So…if the one pair goes higher with 50 pips, else will go downtrend with 50, which keeps the balance. Of course if the balance is perfect 50/50 the index won’t move and you will not benefit at all :), but in case where you have 50/25 you get your 25 or less if your predictions are in the right direction.

There is one drawback, of course, like anything in life :): With so many pairs it will be impossible to rely on any news announcements. Your only hope will be the candlestick chart, perhaps combined with some additional mathematical technics(martingales, random walk avoidance, compound interest) and economical such(hedging, options..).
But isn’t the technical data the favourite to the forex traders?

So far, sadly there isn’t a “forex index” to my knowledge??? So the best you can do is simply make your own “portfolio” and assign it a mathematical value.

I plan to create a computer program(…a can do that ;), to calculate and trace such index value of about 40 forex pairs. If I succeed, I will post it here with link to website to see the index in action :).

Thanks.

As function of how the currency exchange market works it is not possible to make an “index” of foreign currencies as the value of each currency is relative to the currency it is compared to. This means that the same Euro for example may be worth .27 US dollars but at the same it it is worth, 122.40 Yen, and 0.8133 British Pounds. Thus a single index for a world wide market is extremely difficult and would in fact be useless, as there are too many currencies world wide to deal with. Further, which currencies would be chosen to make up the index and on what basis, and by who’s decision, under the authority of which country?

There is however an “index” of the U.S. Dollar which measures the dollar’s value against a “basket” of other currencies. The ticker symbol is NYBOT:DX. This allows you to see the strength of the US currency compared to a weighted geometric mean of the Japanese Yen, Euro, Great British Pound, Swiss Franc, Canadian Dollar, and the Swedish Krona.

I believe there are foreign currency brokers in the US that allow you to trade this fund as you would any other stock or index.

CURRENCY TRADING SUMMARY – 19th June 2008 (00:30GMT)

US dollar down as credit crisis hits regional banks.

U.S. Dollar Trading (USD) with little economic data out yesterday markets were driven by equities and commodities. US stocks were down again as focus switched to the regional banking troubles hit by mortgage delinquencies. The Dow Jones touched below 12000 for the first time in 3 months. US crude inventories showed a decline of 1.2 million barrels and combined with dollar weakness sent oil higher again. In the US share markets, the NASDAQ was down 28 points (1.14%) and the Dow Jones was down 131 points (1.08%). Crude Oil closed up .29 ending the New York session at 6.20 per barrel. Looking ahead, weekly jobless claims forecasted at 375K. June Philly Fed is also released expected rebound from May’s -15 to -10 this month.

The Euro (EUR) continued to pivot the 1.5500 level as new a direction waits to be established. The Euro bounced off day lows as Oil popped higher. Further gains were tempered by newly elected Italian Prime Minister Berlusconi comment “It is unfortunate that the ECB has done nothing to stop hyperinflation of Euro”. Overall the EUR/USD traded with a low of 1.5463 and a high of 1.5538 before closing the day at 1.5528 in the New York session.

The Japanese Yen (JPY) stock market weakness failed to provide support as continued high Oil and yield differentials weighed. EUR/JPY made new multi-month highs briefly trading above 168. Overall the USDJPY traded with a low of 107.72 and a high of 108.44 before closing the day around 107.85 in the New York session. BoJ Governor Shirakawa is scheduled to speak.

The Sterling (GBP) continued to trade heavy as the BoE minutes came in 8-1 with the lone dissenter pressing for a rate cut. The Cable was lifted off lows from a higher than expected CBI Industrial Trends Orders came in stronger at +1 vs. market expectations of -12. Late day USD weakness also provided support. Governor King commented that Q2 is expected to slow considerably, further delaying any rate rises. Overall the GBP/USD traded with a low of 1.9480 and a high of 1.9610 before closing the day at 1.9597 in the New York session. Looking ahead, May Retail Sales expected to come in at -0.1% up from last months -0.2%.

The Australian Dollar (AUD) was helped to day highs as commodities bounced on general USD weakness. AUS/JPY made new multi month highs above 102. Overall the AUD/USD traded with a low of .9403 and a high .9472 before closing the day at .9469.

Gold (XAU) bounced as oil and risk sentiment started to creep into the market. Questions about the US Fed’s willingness to raise rates have improved Gold’s position as an inflation hedge. Overall trading with a low of USD0.80 and high of USD5.60 ending the New York session at USD4 an ounce.

—–

Euro – 1.5575
Initial support at 1.5461 (June 17 low) followed by 1.5303 (June 13 low). Initial resistance is now located 1.5552 (Jun 17 High) at followed by 1.5587 (Jun 12 high).

Yen – 107.65
Initial support is located at 106.8 (June 12 low) followed by 106.24 (Jun 10 low). Initial resistance is now at 108.61 (Feb 14 high) followed by 108.98 (Jan 14 high).

Pound – 1.9600
Initial support at 1.9472 (June 17 low) followed by 1.9410 (Jun 13 low). Initial resistance is now at 1.9612 (Jun 18 high) followed by 1.9698 (June 10 high)

Australian Dollar – 0.9455
Initial support at 0.9304 (50% retracement of the .8953 to 0.9655 advance) followed by 0.9291 (May 15 low). Initial resistance is now at 0.9491 (Jun 12 high) followed by 0.9527 (Jun 10 high).

Gold – 894
Initial support at 858 (Jun 12 low) followed by 850 (Psychological Number). Initial resistance is now at 895.7 (June 16 high) followed by 900 (round number).

09 Dec 08 Forex Basic for newbie (Part 1)

My English is not good, thanks.

12 Dec 08 Forex Basic for newbie (Part 2) - Objects involved Forex

Now go on my lession………………………..

Objects involved Forex

During 10 years ago, only the "giant ga" to join a new market was. Conditions for the minimum if you want to transactions during that period that you must have from 10 to 50 million USD to start. FOREX was born at the beginning aims to meet the needs of banks and companies in the industry giant, is not the "chang tí hon". However, with the support of kì di?u Internet, the system transactions online, the company’s transactions have been formed to allow open accounts "odd" to us. Today, the brokers in the market are allowed to break the unit transactions large and allow the transaction Small opportunity to buy and sell any number of any of these values less than this (lots).

Commercial banks have 2 roles in Forex Market

1. Make transactions between the two sides became easier, for example, the companies want to exchange currency (consumers).
2. By the beginning of the buy and sell currency. Bank has role in the currency because certain people believe in the future they will have a higher price (if you buy storage) and lower (if sold soon). People statistics that 70% of the annual income of the international bank was born at the beginning of the currency. The top of the other includes the transaction was successful in the world for example, George Soros.

3 types of Forex include central banks of other countries like bank reserves federal America. Forex their participation to ensure that financial benefits of their country. When central banks buy and sell currency or foreign currency, the purpose is to maintain value for money of their countries.

Forex is very broad and there are many people involved, not a person, only banking center of the new government can control the market. Compare with the level of transactions daily average of 300 billion capital market bond and the government about 100 billion to do transactions on the stock market, the U.S. Forex is very large because the pass rate was 1.9 thousand billion capital per day ( 2006).

Means to participate in market

The word "market" is the name gently mistake in describing Forex transactions. No position money_coin.jpgtrung center for active transactions, as it has in the currency market in the future. Transactions are carried out by telephone and through computers at hundreds of locations around the world. Most transactions were carried out between about 300 international banks where large property transactions for large companies, governments and for their account. The bank continues to provide prices ( "bid" to buy and "ask" for sale) with each other and with the broader market. Only the most recent numbers from 1 in the bank was seen as the current price in the market of that money. The services report separate data provide different information about price "directly" through the internet.

All you need when the transaction is a computer, Internet connection, and the information market.

saga site

……….Go on next week, thanks for read,