The truth is that there are millions of forex traders all over the world. In fact, even your own government invests in the market through the use of government bonds, which are considered to be one of the most secured forms of securities. You may ask then, "Why are there so many who are going crazy over it?" Here are some of the best possible reasons:
1. It operates 24/7. Unlike other businesses, forex market operates 24 hours a day, 7 days a week, except during the weekends. This means that you can trade your funds as many times as you want at any given day. Moreover, since this can already be accomplished online, you can be anywhere in the world too and still reap profits out of your investments.
2. It is not equal to gambling. Here is the common misconception of forex sceptics. They would like to think that investing your money in forex is actually time-wasting because it is almost equivalent to gambling.
It is not. First, you have all the predetermined factors and analyses tools that you can use to come up with your own prediction of the future. If you know how to read trends very well, you can already determine if you are going to earn profits or lose money if you are going to trade today or in the coming days. If you lose, therefore, it is going to be your fault, not on chance.
3. It is liquid. What do we mean by liquid? It means that your money is easily converted to cash without any price discount. If you can just make your decisions properly, it is not impossible for you to obtain thousands of dollars and international currencies into your account within the day.
4. Asking for help is very easy. You do not really have to do trading on your own. It is even recommended that you work with a forex broker if you are totally new into the market. Forex brokers have intermediate to expert knowledge when it comes to currency trading. They can also represent you during the trading, just in case you are planning to do other things on the side. They can analyze reports for you and simply provide you with summaries for easy reading. Most of all, if you need suggestions or confused with what decision to make, you can always rely on their experience and expertise.
5. You can have more control over what you do with your account. Forex does not have any restriction when it comes to directional trading. This means that you can buy certain currencies if you think that they are going to increase in value later. You can also sell what you have if you believe that their exchange rate will drop anytime soon.
6. It aids in international trading. Banks and governments depend on forex trading if they wish to make investments on certain countries. It allows them to decide the best times to make an import or amass funds they need for their export.
Sunday, September 13, 2009
Autotrade Forex Robots Do All the Work For You
Autotrade Forex Robots Do All the Work For You
The Forex foreign currency exchange market has changed for the better, by now implementing a system where trades are performed automatically by an autotrade forex robot.
This is good news because the market does not need to be physically watched anymore as a robot does it all.
With automatic trading, or the autotrade forex robot, a trade is done without any emotion whatsoever involved in the process. Some of these great new systems listed are, the Forex Fap turbo, which is very simple to install and comes with its own forum. Forex Megatroid has been shown to have many successful trades and is quite popular with those a little more conservative.
LMT formula doesn't trade but gives hints to the investor when a trade should occur. Forex Robot trader is another easy to install program and makes quite a few successful trades. The final three are the Forex Auto Pilot software which is an independent robot, the Pro-Signal which makes trading possible for anyone, and the Net Pix which will trade and deposit into the investors account.
Obviously there are autotrade forex robots for everyone and the choices are varied according to the needs of each investor. Trading can be risky, but with an initial investment with losses kept to a minimum, most traders can easily reap profits of four to ten percent returns monthly and more. Much more. The key is to know when to trade and when to sit it out. With a robot trading system in place, the work is already done for the investor to the highest quality standards. Auto trading opportunities abound for all investors interested in expert trading. The software is connected twenty four hours per day and another is a platform which can be logged into and kept running for twenty four hours without shutting down.
Some of the trades with autotrade forex robots are appropriately titled scalp trading, trend, and swing trading. The robot makes the decisions so the investor will not have to. This is what many investors want; Simple, automatic trades which they can have running twenty four hours a day, while at the same time devoting their attention and time to other ventures.
Also pay close attention below...
Starting off with FOREX trading can be a hassle. However, if you are looking for quick profits there are a couple of software programs that trade on autopilot for you and all you have to do is press one button and see the profits rolling in.
The Forex foreign currency exchange market has changed for the better, by now implementing a system where trades are performed automatically by an autotrade forex robot.
This is good news because the market does not need to be physically watched anymore as a robot does it all.
With automatic trading, or the autotrade forex robot, a trade is done without any emotion whatsoever involved in the process. Some of these great new systems listed are, the Forex Fap turbo, which is very simple to install and comes with its own forum. Forex Megatroid has been shown to have many successful trades and is quite popular with those a little more conservative.
LMT formula doesn't trade but gives hints to the investor when a trade should occur. Forex Robot trader is another easy to install program and makes quite a few successful trades. The final three are the Forex Auto Pilot software which is an independent robot, the Pro-Signal which makes trading possible for anyone, and the Net Pix which will trade and deposit into the investors account.
Obviously there are autotrade forex robots for everyone and the choices are varied according to the needs of each investor. Trading can be risky, but with an initial investment with losses kept to a minimum, most traders can easily reap profits of four to ten percent returns monthly and more. Much more. The key is to know when to trade and when to sit it out. With a robot trading system in place, the work is already done for the investor to the highest quality standards. Auto trading opportunities abound for all investors interested in expert trading. The software is connected twenty four hours per day and another is a platform which can be logged into and kept running for twenty four hours without shutting down.
Some of the trades with autotrade forex robots are appropriately titled scalp trading, trend, and swing trading. The robot makes the decisions so the investor will not have to. This is what many investors want; Simple, automatic trades which they can have running twenty four hours a day, while at the same time devoting their attention and time to other ventures.
Also pay close attention below...
Starting off with FOREX trading can be a hassle. However, if you are looking for quick profits there are a couple of software programs that trade on autopilot for you and all you have to do is press one button and see the profits rolling in.
Forex Robots - Is it Worth the Hassle and Your Money?
Forex Robots are software used to identify and trade in profitable currency pairs. These software identify trading signals and monetary stories that impact foreign exchange trading. In Forex trading, the money of the different states is where you get a profit. It involves proper timing when to buy and when to sell your currency. The key is to buy low, meaning to purchase currencies when they are at low price and then to trade high, which is to sell your currencies when it will bring the best profit.
Many have already earned a fortune in Forex trading. Some of these people, like Albert Perrie and John Grace, the creators of the Forex Megadroid, decided to make profit out of their experience in the Forex trading market by making their own automated Forex trading software. They figured there is a huge market for people who want to try Forex trading but does not have the needed experience, resources and time and they thought of making a product that will ease the burden for newbie Forex traders.
Because of this, a new influx of Forex robots have come out on the market in recent years. The FAP Turbo, The Forex Megadroid and the IvyBot are some of the more popular Forex robots out on the market today.
Automated Forex robots offer big promises and they have their own hits and misses. Their main promise is that you do not need to know which trades to make, the robot will be the one to decide that for you. Being automated, these Forex robots also promise that it will work on its own, you just need to have the program up and running and it will keep on making trades and bring you profit even when you are sleeping. They promise that you do not need any experience trading in the Forex market, you just need to purchase their program and plug it in and leave your computer on and you will earn more money. Quite a lofty promise but some of these programs do have money-back guarantees.
If you really want to try in Forex trading but have limited experience and have some cash and patience to spare, you can try one of these Forex robot software. Read first on the reviews of each robot and find out which one fits your resources. The best advice: try the ones with money-back guarantees to be on the safe side.
Many have already earned a fortune in Forex trading. Some of these people, like Albert Perrie and John Grace, the creators of the Forex Megadroid, decided to make profit out of their experience in the Forex trading market by making their own automated Forex trading software. They figured there is a huge market for people who want to try Forex trading but does not have the needed experience, resources and time and they thought of making a product that will ease the burden for newbie Forex traders.
Because of this, a new influx of Forex robots have come out on the market in recent years. The FAP Turbo, The Forex Megadroid and the IvyBot are some of the more popular Forex robots out on the market today.
Automated Forex robots offer big promises and they have their own hits and misses. Their main promise is that you do not need to know which trades to make, the robot will be the one to decide that for you. Being automated, these Forex robots also promise that it will work on its own, you just need to have the program up and running and it will keep on making trades and bring you profit even when you are sleeping. They promise that you do not need any experience trading in the Forex market, you just need to purchase their program and plug it in and leave your computer on and you will earn more money. Quite a lofty promise but some of these programs do have money-back guarantees.
If you really want to try in Forex trading but have limited experience and have some cash and patience to spare, you can try one of these Forex robot software. Read first on the reviews of each robot and find out which one fits your resources. The best advice: try the ones with money-back guarantees to be on the safe side.
Forex Trading Signal Software - How to Find the Right Ones
There is a lot of forex trading signal software on the net that traders find very helpful to their business. However, some traders lack experience and knowledge in finding the right trading signal software. There is trading signal software that is costly, very complicated to use and the quality is not that good. When purchasing a program, make sure that it does not follow the irregular substantial market swing. Consider a software that is programmed to grab gains per day one step at a time and see your earnings multiply.
Firstly, you will need to know what is forex signals. They are information that you can buy, just like forex tips. In this way, by following the right forex signals, you can go into your account and start earning.
The fact is that finding the most efficient forex software is not easy to come by, but there are available. Forex trading signal software is your weapon of massive destruction against hard work, analysis and decision for you... and you can learn a lot if you want in your home too see all the strategies and tactics going on.
This is a way to trade the market based on somebody else's trading system, many times for free. The forex software is clearly your best friend when it comes to forex trading. You do however need to look at buy and sell trades to confirm another forex trading signal software is valid. Forex signal software is being used by upwards of 30% of all traders these days.
Despite having software to do this, there are also personalized signals which more adept platform traders can get the information and do the trading by themselves.
Firstly, you will need to know what is forex signals. They are information that you can buy, just like forex tips. In this way, by following the right forex signals, you can go into your account and start earning.
The fact is that finding the most efficient forex software is not easy to come by, but there are available. Forex trading signal software is your weapon of massive destruction against hard work, analysis and decision for you... and you can learn a lot if you want in your home too see all the strategies and tactics going on.
This is a way to trade the market based on somebody else's trading system, many times for free. The forex software is clearly your best friend when it comes to forex trading. You do however need to look at buy and sell trades to confirm another forex trading signal software is valid. Forex signal software is being used by upwards of 30% of all traders these days.
Despite having software to do this, there are also personalized signals which more adept platform traders can get the information and do the trading by themselves.
Saturday, September 5, 2009
How To Do Good Investment Research
In a previous article we learned that fundamental and technical analyses are two types of research to do. Technical analysis is the most popular but fundamental analysis is the better kind because it looks at a variety of factors to help you make good decisions. In this article, we're going to look more closely at fundamental analysis and see what you want to look at if you want to perform good fundamental analysis.
Start at the top: Find out how the economy as a whole is doing. Is it good? Is it rough? Is the current situation going to last for a while? Don't look just at the economy of the country your target stock's company is in... don't forget to look at the countries where the company does a majority of its business. A strong economy in the US, for example, won't necessarily save a company who exports a majority of its products to Japan... if their economy tanks. Consider government decisions like fiscal and monetary policy.
* Visit www.federalreserve.gov and the sites of the individual banks to get a handle on the economy.
Drill down: Now that you've got your finger on the pulse of the economy, drill down to just the investment world, which can drive the economy. Is the Dow Jones rocky right now? Is the S&P 500 trending upwards? Is the NYSE dipping? Looking at exchanges and indexes will help you get a handle on the investment world. If you're looking at buying bonds, remember that they are influenced by interest rates.
* Visit www.standardandpoors.com and www.dowjones.com to see how the investment world is doing.
Industry analysis: Now it's time to turn your attention to the general industry in which your target stock operates. If they fabricate steel for automakers, don't just look at how other steel fabricators but also consider how automakers are doing. Consider, also, their suppliers. If you are looking to buy stock in a home building company, consider the price of lumber. Is it going up or down? If it goes up, will that put a squeeze on profits?
* Visit http://finance.yahoo.com/.
Company analysis: Next, turn your attention to the company itself. Who is the management team and what is their experience in the company and the industry? What is the financial history of the company itself? Check to see if they serve only one industry or several because the diversity of several clients among different industries will help to weather economic downturns. How is the company perceived among the buying public?
* Visit http://finance.yahoo.com/ and browse for the company and visit the company's website.
Fundamental analysis seems like a lot of work at first... and it is... but it won't always be that way. Spend a few hours getting to know the information then just a few minutes a day monitoring it.
Start at the top: Find out how the economy as a whole is doing. Is it good? Is it rough? Is the current situation going to last for a while? Don't look just at the economy of the country your target stock's company is in... don't forget to look at the countries where the company does a majority of its business. A strong economy in the US, for example, won't necessarily save a company who exports a majority of its products to Japan... if their economy tanks. Consider government decisions like fiscal and monetary policy.
* Visit www.federalreserve.gov and the sites of the individual banks to get a handle on the economy.
Drill down: Now that you've got your finger on the pulse of the economy, drill down to just the investment world, which can drive the economy. Is the Dow Jones rocky right now? Is the S&P 500 trending upwards? Is the NYSE dipping? Looking at exchanges and indexes will help you get a handle on the investment world. If you're looking at buying bonds, remember that they are influenced by interest rates.
* Visit www.standardandpoors.com and www.dowjones.com to see how the investment world is doing.
Industry analysis: Now it's time to turn your attention to the general industry in which your target stock operates. If they fabricate steel for automakers, don't just look at how other steel fabricators but also consider how automakers are doing. Consider, also, their suppliers. If you are looking to buy stock in a home building company, consider the price of lumber. Is it going up or down? If it goes up, will that put a squeeze on profits?
* Visit http://finance.yahoo.com/.
Company analysis: Next, turn your attention to the company itself. Who is the management team and what is their experience in the company and the industry? What is the financial history of the company itself? Check to see if they serve only one industry or several because the diversity of several clients among different industries will help to weather economic downturns. How is the company perceived among the buying public?
* Visit http://finance.yahoo.com/ and browse for the company and visit the company's website.
Fundamental analysis seems like a lot of work at first... and it is... but it won't always be that way. Spend a few hours getting to know the information then just a few minutes a day monitoring it.
The Truth Behind Stock Market Trading
If you happen to watch a business show or business news on TV, you'd probably hear words or phrases like "stock market," 'trading," "stocks" or "stock market trading." What are these things and what is their significance? To answer your questions, here's an overview on what stock market trading is.
Definition
In simple terms, stock market trading is the voluntary buying and selling or exchange of company stocks and their derivatives. Stocks refer to the capital raised by a corporation by means of issuing and sharing shares. These are traded in a stock market just as commodities like coffee, sugar, wheat and rice are traded in a commodity market. The physical or virtual (as trading may take place online) marketplace for trading shares on the other hand is called stock exchange.
Trading Process
Stock market trading takes place as one sells his stocks and as the other buys them. Usually buyers and sellers of stocks meet in stock exchanges and there they agree on the price of the stocks. The actual stock market trading happens on a trading floor-the one usually shown on TV when news on stock market trading are reported. Here investors raise their arms, throwing signals to each other. That auction-like picture of a stock market trading is the traditional way stocks are traded. It's called "open outcry" since the traders cry out their bids.
Key Players in Stock Market Trading
Stock market trading participants vary from persons selling small individual stock investments to institutions trading collective investments, hedge funds, pension funds, mutual funds, etc. Big investors can be banks, insurance companies and other huge companies.
Importance of Stock Market Trading
Stock market trading is required to foster economic growth. It does this by helping companies raise capital or by helping them handle their financial problems. Stock market trading helps ensure that the capital is saved and is invested in most profitable business. Moreover, stock market facilitates the transfer of payments between traders.
Online Stock Market Trading
With the emergence and popularity of the Internet, almost everything can now be done conveniently online. You can go shopping online, join conferences online, read news online and communicate with business partners wherever you are. Even stock market trading can now be done virtually and this has made entering into a business much easier for anyone interested. Aside from conducting stock market trading over the Internet, you can also conveniently check status of your investments online.
The benefits of online stock market trading are just endless. Aside from the above mentioned, choosing where to invest is also much easier online. You can find virtually all kinds of stocks over the Internet; however, it would be best to invest in stocks with moving prices to ensure profitability in the long run.
Disadvantages of Stock Market Trading
One of the greatest drawbacks of stock market trading, whether online or not, is its lower leverage compared to other forms of trading like Forex trading. Also, you cannot easily short sell stocks as it takes time for stock prices to go up. This means that increasing your profit may also take time.
Definition
In simple terms, stock market trading is the voluntary buying and selling or exchange of company stocks and their derivatives. Stocks refer to the capital raised by a corporation by means of issuing and sharing shares. These are traded in a stock market just as commodities like coffee, sugar, wheat and rice are traded in a commodity market. The physical or virtual (as trading may take place online) marketplace for trading shares on the other hand is called stock exchange.
Trading Process
Stock market trading takes place as one sells his stocks and as the other buys them. Usually buyers and sellers of stocks meet in stock exchanges and there they agree on the price of the stocks. The actual stock market trading happens on a trading floor-the one usually shown on TV when news on stock market trading are reported. Here investors raise their arms, throwing signals to each other. That auction-like picture of a stock market trading is the traditional way stocks are traded. It's called "open outcry" since the traders cry out their bids.
Key Players in Stock Market Trading
Stock market trading participants vary from persons selling small individual stock investments to institutions trading collective investments, hedge funds, pension funds, mutual funds, etc. Big investors can be banks, insurance companies and other huge companies.
Importance of Stock Market Trading
Stock market trading is required to foster economic growth. It does this by helping companies raise capital or by helping them handle their financial problems. Stock market trading helps ensure that the capital is saved and is invested in most profitable business. Moreover, stock market facilitates the transfer of payments between traders.
Online Stock Market Trading
With the emergence and popularity of the Internet, almost everything can now be done conveniently online. You can go shopping online, join conferences online, read news online and communicate with business partners wherever you are. Even stock market trading can now be done virtually and this has made entering into a business much easier for anyone interested. Aside from conducting stock market trading over the Internet, you can also conveniently check status of your investments online.
The benefits of online stock market trading are just endless. Aside from the above mentioned, choosing where to invest is also much easier online. You can find virtually all kinds of stocks over the Internet; however, it would be best to invest in stocks with moving prices to ensure profitability in the long run.
Disadvantages of Stock Market Trading
One of the greatest drawbacks of stock market trading, whether online or not, is its lower leverage compared to other forms of trading like Forex trading. Also, you cannot easily short sell stocks as it takes time for stock prices to go up. This means that increasing your profit may also take time.
6 Trading Habits To Strive For
There are many methods to build superior trading habits. Good trading habits will make trading a part of routine, rather than a task. Getting in the habit of doing everything exactly to plan will boost trading profits, marking one more step in the path to financial freedom.
1.Trading Discipline - Following your own trading plan is very important to success. When emotions are left to go as they please, it is easier to lose track of your portfolio. Proven techniques and strategies should not be edited for any reason; follow the plan and let it work for you.
2.Look at Every Time Frame - Even when trading short 5 minute ticks, it is important to evaluate all timeframes for market data. It just might happen that a 200 day moving average is acting to support your position. You’ll never know this unless you take the time to study all timeframes rather than just a few. Long term trends can and do impact short term trading positions. Day traders are more susceptible to trading in only one timeframe because of how time-sensitive their investments are. Swing traders are probably used to checking multiple timeframes for entry points.
3.Trade As Your Capital Allows - Day traders are able to access high levels of margin that can greatly exceed their trading capital. Overextension of credit is dangerous and can compound losses just as easily as gains. Momentum trading with many different entry points can end up in costly mistakes if your account becomes overextended.
4.Understanding Risk - Managing risk is the difference between gambling and investing. Profitable traders can quickly calculate how much of a drawdown they are willing to incur before cutting a position. It is important to have a plan for pruning losses and minimizing the damage of drawdown. 5.Stick to Your Niche - Niche trading or only trading in your specific area of study is the best way to stay profitable. Too often do traders get bored with inactivity, only to take positions that are out of their trading knowledge. Sticking to what you do best keeps your account from being overextended in too many positions and minimizes loss. If you are best in high volume trading, then only trade during periods of high volume. Finding your trading niche will help you to become more a more efficient trader.
6.Trading is Affected by Emotion - It can be difficult to get away from trading. Holding positions overnight can only double the amount of stress that comes with having open positions. For the day trader, try to limit your exposure to overnight markets and keep stress levels low.
1.Trading Discipline - Following your own trading plan is very important to success. When emotions are left to go as they please, it is easier to lose track of your portfolio. Proven techniques and strategies should not be edited for any reason; follow the plan and let it work for you.
2.Look at Every Time Frame - Even when trading short 5 minute ticks, it is important to evaluate all timeframes for market data. It just might happen that a 200 day moving average is acting to support your position. You’ll never know this unless you take the time to study all timeframes rather than just a few. Long term trends can and do impact short term trading positions. Day traders are more susceptible to trading in only one timeframe because of how time-sensitive their investments are. Swing traders are probably used to checking multiple timeframes for entry points.
3.Trade As Your Capital Allows - Day traders are able to access high levels of margin that can greatly exceed their trading capital. Overextension of credit is dangerous and can compound losses just as easily as gains. Momentum trading with many different entry points can end up in costly mistakes if your account becomes overextended.
4.Understanding Risk - Managing risk is the difference between gambling and investing. Profitable traders can quickly calculate how much of a drawdown they are willing to incur before cutting a position. It is important to have a plan for pruning losses and minimizing the damage of drawdown. 5.Stick to Your Niche - Niche trading or only trading in your specific area of study is the best way to stay profitable. Too often do traders get bored with inactivity, only to take positions that are out of their trading knowledge. Sticking to what you do best keeps your account from being overextended in too many positions and minimizes loss. If you are best in high volume trading, then only trade during periods of high volume. Finding your trading niche will help you to become more a more efficient trader.
6.Trading is Affected by Emotion - It can be difficult to get away from trading. Holding positions overnight can only double the amount of stress that comes with having open positions. For the day trader, try to limit your exposure to overnight markets and keep stress levels low.
Understanding Technical Analysis
Charts are important tools used in making a technical analysis of the stock market. Though the fluctuations are marked daily on the charts, for an untrained eye it could be a bit of time before it would be able to fully understand the implications of the variations in the charts from one day to another. Candlestick charts could be very confusing at the outset, mostly because the number of indicator shapes in use is about twenty in number. However, once the person is well-familiarized with the charts, he/she would be in a better position to predict the price movements precisely.
Patterns are something that a technical analyst needs to understand fully well. These go a long way in helping to predict market trends. The analyst will often encounter the Cup and Handle pattern, in which the prices would begin at a high, reach a low level and then begin to rise again, forming a pattern much like a cup. If the cup levels out for a while before rising, then that region is known as a handle on the pattern. Those investors who buy at the handle are buying at the time when the prices are predicted to break out higher. So they stand making very good profits.
One more interesting pattern is the Head and Shoulders. This pattern consists of three peaks – the first is a tiny bump-like peak, followed by a big peak and then another tiny peak. It looks like a head surrounded by two shoulders. This pattern is not a good pattern to invest in. It is indicative of a bearish pattern, which is likely to dip more after the second peak.
Apart from the patterns there are several indicators that an analyst must be aware of. The four most important kinds of indicators are the moving average indicator, relative strength index, money flow index and the Bollinger bands.
1.Moving Average Indicator – This is the most commonly used indicator which shows the average price of a stock over a period of time. It works like an average. Suppose the moving average indicator is for thirty days, then the closing prices of the thirty days must be added and then divided by thirty. Commonly used periods are twenty, thirty, fifty, hundred and two hundred days. More the number of days considered, more stable is the index. Representation of the moving average indicator is done with a line graph. When the price falls below the line, it tends to keep on falling; but if it rises above the graph, then it tends to keep on rising.
2.Relative Strength Index – This index compares the number of days the prices are up with the number of days the prices are down. The average of the number of up days is divided with the average of the number of down days. 1 is added to the number obtained, and then it is divided from 100, and then 100 is subtracted from it. The number so obtained is the relative strength index. The relative strength index is calculated from smaller time spans, such as for 9 or 15 days. Relative strength indices range from 0 to 100. If this index goes below 30, then it may be a good time to buy as the stocks could be overbought. Bullish or bearish nature of markets has a strong influence on whether this index would be of any use or not.
Patterns are something that a technical analyst needs to understand fully well. These go a long way in helping to predict market trends. The analyst will often encounter the Cup and Handle pattern, in which the prices would begin at a high, reach a low level and then begin to rise again, forming a pattern much like a cup. If the cup levels out for a while before rising, then that region is known as a handle on the pattern. Those investors who buy at the handle are buying at the time when the prices are predicted to break out higher. So they stand making very good profits.
One more interesting pattern is the Head and Shoulders. This pattern consists of three peaks – the first is a tiny bump-like peak, followed by a big peak and then another tiny peak. It looks like a head surrounded by two shoulders. This pattern is not a good pattern to invest in. It is indicative of a bearish pattern, which is likely to dip more after the second peak.
Apart from the patterns there are several indicators that an analyst must be aware of. The four most important kinds of indicators are the moving average indicator, relative strength index, money flow index and the Bollinger bands.
1.Moving Average Indicator – This is the most commonly used indicator which shows the average price of a stock over a period of time. It works like an average. Suppose the moving average indicator is for thirty days, then the closing prices of the thirty days must be added and then divided by thirty. Commonly used periods are twenty, thirty, fifty, hundred and two hundred days. More the number of days considered, more stable is the index. Representation of the moving average indicator is done with a line graph. When the price falls below the line, it tends to keep on falling; but if it rises above the graph, then it tends to keep on rising.
2.Relative Strength Index – This index compares the number of days the prices are up with the number of days the prices are down. The average of the number of up days is divided with the average of the number of down days. 1 is added to the number obtained, and then it is divided from 100, and then 100 is subtracted from it. The number so obtained is the relative strength index. The relative strength index is calculated from smaller time spans, such as for 9 or 15 days. Relative strength indices range from 0 to 100. If this index goes below 30, then it may be a good time to buy as the stocks could be overbought. Bullish or bearish nature of markets has a strong influence on whether this index would be of any use or not.
How to trade with Stochastics
Stochastics ( Slow and Fast) are amongst the most popular technical indicators used in Forex Trading. To use them correctly, we must understand their nature. In this article I will mainly discuss about this Stochastics and how to trade using them.
The stochastic oscillator is a momentum indicator to compare the closing price of a commodity to its price range over a given time span. The idea behind this indicator is the prices tend to close near their past highs in bull markets, and near their lows in bear markets. Transaction signals can be spotted when the stochastic oscillator crosses its moving average.
Two stochastic oscillator indicators are typically calculated to assess future variations in prices, a fast (%K) and slow (%D). Comparisons of these statistics are a good indicator of speed at which prices are changing or the Impulse of Price.
The two Stochastics lines:
%K – Is the main line and is usually displayed as a solid line
%D – Is simply a moving average of the %K and is usually displayed as a dotted line
There are two well known methods for using the %K and %D indicators to make decisions about when to buy or sell stocks. The first involves crossing of %K and %D signals, the second involves basing buy and sell decisions on the assumption that %K and %D oscillate.
In the first case, %D acts as a trigger or signal line for %K. A buy signal is given when %K crosses up through %D, or a sell signal when it crosses down through %D. Such crossovers can occur too often, and to avoid repeated whipsaws one can wait for crossovers occurring together with an overbought/oversold pullback, or only after a peak or trough in the %D line. If price volatility is high, a simple moving average of the Stoch %D indicator may be taken. This statistic smoothes out rapid fluctuations in price.
In the second case, some analysts argue that %K or %D levels above 80 and below 20 can be interpreted as overbought or oversold. It is recommended that buying and selling be timed to the return back from these thresholds. In other words, one should buy or sell after a bit of a reversal. Practically, this means that once the price exceeds one of these thresholds, the investor should wait for prices to return back through those thresholds (e.g. if the oscillator were to go above 80, the investor waits until it falls below 80 to sell). In currencies we mainly use the Stochastic Oscillator on the 15 and 60 minute charts.
Use Stochastics in Trending market
The key is when the market is trending up, we will look for oversold conditions (when the Stochastics fall below the oversold level (below 20) and rises back above the same level) to get ready to trade, and in the same way, when the market is trending down we will only look for overbought conditions (when the Stochastics rise above de overbought level (above 80) and falls back below the same level.
Use Stochastic in Trend-less market
Buy when %K falls below the oversold level (below 20) and rises back above the same level.
Sell when %K rises above de overbought level (above 80) and falls back below the same level.
The stochastic oscillator is a momentum indicator to compare the closing price of a commodity to its price range over a given time span. The idea behind this indicator is the prices tend to close near their past highs in bull markets, and near their lows in bear markets. Transaction signals can be spotted when the stochastic oscillator crosses its moving average.
Two stochastic oscillator indicators are typically calculated to assess future variations in prices, a fast (%K) and slow (%D). Comparisons of these statistics are a good indicator of speed at which prices are changing or the Impulse of Price.
The two Stochastics lines:
%K – Is the main line and is usually displayed as a solid line
%D – Is simply a moving average of the %K and is usually displayed as a dotted line
There are two well known methods for using the %K and %D indicators to make decisions about when to buy or sell stocks. The first involves crossing of %K and %D signals, the second involves basing buy and sell decisions on the assumption that %K and %D oscillate.
In the first case, %D acts as a trigger or signal line for %K. A buy signal is given when %K crosses up through %D, or a sell signal when it crosses down through %D. Such crossovers can occur too often, and to avoid repeated whipsaws one can wait for crossovers occurring together with an overbought/oversold pullback, or only after a peak or trough in the %D line. If price volatility is high, a simple moving average of the Stoch %D indicator may be taken. This statistic smoothes out rapid fluctuations in price.
In the second case, some analysts argue that %K or %D levels above 80 and below 20 can be interpreted as overbought or oversold. It is recommended that buying and selling be timed to the return back from these thresholds. In other words, one should buy or sell after a bit of a reversal. Practically, this means that once the price exceeds one of these thresholds, the investor should wait for prices to return back through those thresholds (e.g. if the oscillator were to go above 80, the investor waits until it falls below 80 to sell). In currencies we mainly use the Stochastic Oscillator on the 15 and 60 minute charts.
Use Stochastics in Trending market
The key is when the market is trending up, we will look for oversold conditions (when the Stochastics fall below the oversold level (below 20) and rises back above the same level) to get ready to trade, and in the same way, when the market is trending down we will only look for overbought conditions (when the Stochastics rise above de overbought level (above 80) and falls back below the same level.
Use Stochastic in Trend-less market
Buy when %K falls below the oversold level (below 20) and rises back above the same level.
Sell when %K rises above de overbought level (above 80) and falls back below the same level.
Mistakes Novice Make in Forex Trading
There is one mistake made more often by novice traders than any other. If you make this mistake you will never win and never achieve currency trading success, lets take a closer look at it.
The mistake that most novice Forex traders make is:
They think that they must predict price direction in advance to make money - It’s a fatal error for the following reason:
If you predict you are hoping or guessing that the market goes your way. If you hope or guess, you are going to lose and lose quickly. You can win without predicting but let’s first look at why this mistake is made by so many fore traders.
The Myth Of Prediction
The myth of prediction is common and as vendors selling forex trading systems use it all the time - to appeal to the greed and naivety of traders and the main culprits are those that say markets move to scientific theory.
King of them is Elliot wave and Fibonacci numbers but there are many more who will tell you that you can predict market tops and bottoms with accuracy. Of course, if markets were scientific we would all know the price in advance and there would be no market. Markets move because of opinions and thats a fact and no one can predict these opinions with scientific accuracy.
If the people selling these systems had discovered how to do what they claim they wouldn’t need to bother you - they would be making to much money!
So How Do You Trade?
You don’t predict - you CONFRIM price momentum is going your way then trade. For example – You see prices moving to support, but you don’t just jump in and hope - you wait for price momentum to turn up above support and then execute your trading signal.
If you trade with price momentum on your side you are shifting the odds in your favour.
Two great indicators for doing this are the stochastic and Relative Strength Index – Look them up in our other articles if are not familiar with them. These are not only good for entering trades but also for exiting them as well and you need to use momentum indicators if you want to win at forex trading.
The biggest error a trader can make is trying to predict - always confirm and you will have the odds on your side, which will ultimately lead you to currency trading success.
The mistake that most novice Forex traders make is:
They think that they must predict price direction in advance to make money - It’s a fatal error for the following reason:
If you predict you are hoping or guessing that the market goes your way. If you hope or guess, you are going to lose and lose quickly. You can win without predicting but let’s first look at why this mistake is made by so many fore traders.
The Myth Of Prediction
The myth of prediction is common and as vendors selling forex trading systems use it all the time - to appeal to the greed and naivety of traders and the main culprits are those that say markets move to scientific theory.
King of them is Elliot wave and Fibonacci numbers but there are many more who will tell you that you can predict market tops and bottoms with accuracy. Of course, if markets were scientific we would all know the price in advance and there would be no market. Markets move because of opinions and thats a fact and no one can predict these opinions with scientific accuracy.
If the people selling these systems had discovered how to do what they claim they wouldn’t need to bother you - they would be making to much money!
So How Do You Trade?
You don’t predict - you CONFRIM price momentum is going your way then trade. For example – You see prices moving to support, but you don’t just jump in and hope - you wait for price momentum to turn up above support and then execute your trading signal.
If you trade with price momentum on your side you are shifting the odds in your favour.
Two great indicators for doing this are the stochastic and Relative Strength Index – Look them up in our other articles if are not familiar with them. These are not only good for entering trades but also for exiting them as well and you need to use momentum indicators if you want to win at forex trading.
The biggest error a trader can make is trying to predict - always confirm and you will have the odds on your side, which will ultimately lead you to currency trading success.
What to look for in an online Forex Brokerage Firm:
1. Low Spreads
In Forex Trading the 'spread' is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 3-5 pips.
2. Low minimum account openings
For those that are new to trading, and for those that don't have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.
3. Instant automatic execution of your orders
This is very important when choosing a Forex firm. You want instant execution of your orders and the price you see and 'click' is the price that you should get. Don't settle with a firm that re-quotes you when you click on a price or a firm that allows for price 'slippage'. This is
very important when trading for small profits.
4. Free charting and technical analysis
You need a firm that gives you access to the best charting and technical analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders totrade directly on the charts!
5. High Leverage
You want high leverage-the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.
6. Hedging Capability
You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!
7. A realistic demo account trading capital balance that reflects the actual dollar amount that the trader will start live trading with. It does the demo trader no good to start out demo trading with a $50,000 account, when in real life he will only start out with $1,000. A forex brokerage needs to offer the trader a demo account starting balance other than the standard $50,000.
After alot of research and personal experience, the firm that I recommend with the above-mentioned benefits is Capital Markets Services LLC (CMS Forex LLC).
Open a free unlimited demo account and start practicing!
The goal of the Day Trade Forex System is to instruct and teach potential traders how to day trade the currency markets and what to look for in an online forex brokerage.
The objective of day trading is to trade the intra day market moves to try to gain small to medium sized profits in any given trading day. This is how this guide will help. Most readers will not have the time or resources to 'position trade' like the major institutions and banks do. They tend to look at the big picture holding onto trades for weeks or months.
The Day Trade Forex System is specifically designed for use with the 1, 5 or 10-15 minute charts, with the goal of taking 5-30 pip profits per trade - closing bad trades out using tight stops, or hedging any losing trades. The ability to trade right off the charts makes the CMS trading platform our favorite.
We feel that the CMS trading platform offers traders the most features that fit the criteria listed above.
In Forex Trading the 'spread' is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 3-5 pips.
2. Low minimum account openings
For those that are new to trading, and for those that don't have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.
3. Instant automatic execution of your orders
This is very important when choosing a Forex firm. You want instant execution of your orders and the price you see and 'click' is the price that you should get. Don't settle with a firm that re-quotes you when you click on a price or a firm that allows for price 'slippage'. This is
very important when trading for small profits.
4. Free charting and technical analysis
You need a firm that gives you access to the best charting and technical analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders totrade directly on the charts!
5. High Leverage
You want high leverage-the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.
6. Hedging Capability
You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!
7. A realistic demo account trading capital balance that reflects the actual dollar amount that the trader will start live trading with. It does the demo trader no good to start out demo trading with a $50,000 account, when in real life he will only start out with $1,000. A forex brokerage needs to offer the trader a demo account starting balance other than the standard $50,000.
After alot of research and personal experience, the firm that I recommend with the above-mentioned benefits is Capital Markets Services LLC (CMS Forex LLC).
Open a free unlimited demo account and start practicing!
The goal of the Day Trade Forex System is to instruct and teach potential traders how to day trade the currency markets and what to look for in an online forex brokerage.
The objective of day trading is to trade the intra day market moves to try to gain small to medium sized profits in any given trading day. This is how this guide will help. Most readers will not have the time or resources to 'position trade' like the major institutions and banks do. They tend to look at the big picture holding onto trades for weeks or months.
The Day Trade Forex System is specifically designed for use with the 1, 5 or 10-15 minute charts, with the goal of taking 5-30 pip profits per trade - closing bad trades out using tight stops, or hedging any losing trades. The ability to trade right off the charts makes the CMS trading platform our favorite.
We feel that the CMS trading platform offers traders the most features that fit the criteria listed above.
Quoting Currency Pairs
Currencies are quoted in pairs, such as EUR/USD or USD/JPY. The first listed currency is known as the base currency, while the second is called the counter or quote currency. The base currency is the "basis" for the buy or the sell. For example, if you BUY EUR/USD you have bought Euros (simultaneously sold dollars). You would do so in expectation that the Euro will appreciate (go up) relative to the US dollar.
Currency AbbreviationsSymbol Definition Symbol Definition
EUR Euro NZD New Zealand Dollar
GBP Great British Pound AUD Australian Dollar
USD US Dollar CAD Canadian Dollar
CHF Swiss Franc JPY Japanese Yen
EUR/USD
In this example Euro is the base currency and thus the "basis" for the buy/sell. If you believe that the US economy will continue to weaken and this will hurt the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought Euros in the expectation that they will appreciate versus the US dollar. If you believe that the US economy is strong and the Euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will depreciate versus the US dollar.
USD/JPY
In this example the US dollar is the base currency and thus the "basis" for the buy/sell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will appreciate versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and repatriating funds back to Japan, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.
GBP/USD
In this example the GBP is the base currency and thus the "basis" for the buy/sell. If you think the British economy will continue to be the leading economy among the G8 nations in terms of growth, thus buying the pound, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will appreciate versus the US dollar. If you believe the British are going to adopt the Euro and this will weaken pounds as they devalue their currency in anticipation of the merge, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.
USD/CHF
In this example the USD is the base currency and thus the "basis" for the buy/sell. If you think the US dollar is undervalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that due to instability in the Middle East and in U.S. financial markets the dollar will continue to weaken, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc.
Currency AbbreviationsSymbol Definition Symbol Definition
EUR Euro NZD New Zealand Dollar
GBP Great British Pound AUD Australian Dollar
USD US Dollar CAD Canadian Dollar
CHF Swiss Franc JPY Japanese Yen
EUR/USD
In this example Euro is the base currency and thus the "basis" for the buy/sell. If you believe that the US economy will continue to weaken and this will hurt the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought Euros in the expectation that they will appreciate versus the US dollar. If you believe that the US economy is strong and the Euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will depreciate versus the US dollar.
USD/JPY
In this example the US dollar is the base currency and thus the "basis" for the buy/sell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will appreciate versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and repatriating funds back to Japan, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.
GBP/USD
In this example the GBP is the base currency and thus the "basis" for the buy/sell. If you think the British economy will continue to be the leading economy among the G8 nations in terms of growth, thus buying the pound, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will appreciate versus the US dollar. If you believe the British are going to adopt the Euro and this will weaken pounds as they devalue their currency in anticipation of the merge, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.
USD/CHF
In this example the USD is the base currency and thus the "basis" for the buy/sell. If you think the US dollar is undervalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that due to instability in the Middle East and in U.S. financial markets the dollar will continue to weaken, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc.
How an FX Trade Works
In the FX market you can buy or sell one currency for another. When you buy a currency, you are said to be "long" in that currency and when you sell a currency, you are said to be "short" in that currency. As the value of one currency rises or falls relative to another, traders decide to buy or sell currencies in order to make profits - since the objective is to earn a profit from their position. Placing a trade in the foreign exchange market is simple and the mechanics of a trade are virtually identical to those found in other markets. Because of the symmetry of currency transactions, you are always simultaneously long in one currency and short in another. An open position is one that is live and ongoing. As long as the position is open, its value will fluctuate in accordance with the exchange rate in the market. To close out your position, you conduct an equal and opposite trade in the same currency pair. For example, if you have gone long in one lot of EUR/USD you can close out that position by subsequently going short in one EUR/USD lot (at the prevailing bid price).
Friday, September 4, 2009
Margin Requirements and Policies
GCI's margin requirements are the most advantageous in the industry:
ICTS Forex Account: $25 per lot on all instruments. Equivalent to approximately 0.25% margin or 400:1 leverage.
CFD/Share Account: 5% on individual shares, $25 per lot on indices and other instruments. Click here for exact
margin requirements on each product.
MetaTrader Account: $250 per lot on Forex, $25 per 0.1 lots. Equivalent to approximately 0.25% margin or 400:1 leverage. 5% on individual shares. About 1% for indices and commodities. Click here for exact margin requirements
on each product.
GCI is able to maintain these low margin requirements by enabling automatic liquidation of positions once a margin call is reached. This policy also provides for the protection of client account balances in the event of rapid price movements.
A margin call is reached if a client's account equity falls below the required margin. For example, in an ICTS Forex account, if a client has 10 lots of open positions a margin call will occur if account equity drops below $500. At this point, some or all of the client's open positions will be closed immediately at current prices.
Traders are also able to monitor both usable margin and used margin in real-time from the "Account Information" window of the online trading platform. Positions will be automatically closed once usable margin drops below zero.
ICTS Forex Account: $25 per lot on all instruments. Equivalent to approximately 0.25% margin or 400:1 leverage.
CFD/Share Account: 5% on individual shares, $25 per lot on indices and other instruments. Click here for exact
margin requirements on each product.
MetaTrader Account: $250 per lot on Forex, $25 per 0.1 lots. Equivalent to approximately 0.25% margin or 400:1 leverage. 5% on individual shares. About 1% for indices and commodities. Click here for exact margin requirements
on each product.
GCI is able to maintain these low margin requirements by enabling automatic liquidation of positions once a margin call is reached. This policy also provides for the protection of client account balances in the event of rapid price movements.
A margin call is reached if a client's account equity falls below the required margin. For example, in an ICTS Forex account, if a client has 10 lots of open positions a margin call will occur if account equity drops below $500. At this point, some or all of the client's open positions will be closed immediately at current prices.
Traders are also able to monitor both usable margin and used margin in real-time from the "Account Information" window of the online trading platform. Positions will be automatically closed once usable margin drops below zero.
Learn Forex
CFDs Explained
The "CFD", or "Contract for Difference", was developed to allow clients to receive all the benefits of owning a stock without having to physically own the stock itself. For example, instead of purchasing 1,000 shares of Microsoft from a stock broker, a client could instead buy a 10 lots of Microsoft on the GCI CFD trading platform. A $5 per share rise in the price of Microsoft would confer to the client a $5,000 profit, just as if he had purchased the actual shares that are traded on the exchange. A major difference is that there are no exchange fees and many of the inefficiencies of trading the underlying shares on the exchange are eliminated. GCI can therefore offer CFDs with zero commissions and very attractive margin requirements. CFDs have grown in popularity dramatically over the past few years, and we believe that this will increasingly be the preferred way to trade the financial markets.
The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio of Shares, indices, or commodities without having to tie up large amounts of capital. Using the example above, a client purchasing $50,000 worth of CFD Shares will only be asked for $2,500 margin.
CFD Performance
As with Shares, CFD investors benefit from normal market movements. Clients' open positions are valued in real time, with every tick of the market. Profits or losses similarly are credited to or debited from the clients account equity in real time.
Margin
Unlike physically purchasing stocks, clients only have to deposit approximately 5% of the value of the Shares. So if you want to buy $50,000 worth of Shares, you only need to have $2,500 on deposit with GCI.
The "CFD", or "Contract for Difference", was developed to allow clients to receive all the benefits of owning a stock without having to physically own the stock itself. For example, instead of purchasing 1,000 shares of Microsoft from a stock broker, a client could instead buy a 10 lots of Microsoft on the GCI CFD trading platform. A $5 per share rise in the price of Microsoft would confer to the client a $5,000 profit, just as if he had purchased the actual shares that are traded on the exchange. A major difference is that there are no exchange fees and many of the inefficiencies of trading the underlying shares on the exchange are eliminated. GCI can therefore offer CFDs with zero commissions and very attractive margin requirements. CFDs have grown in popularity dramatically over the past few years, and we believe that this will increasingly be the preferred way to trade the financial markets.
The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio of Shares, indices, or commodities without having to tie up large amounts of capital. Using the example above, a client purchasing $50,000 worth of CFD Shares will only be asked for $2,500 margin.
CFD Performance
As with Shares, CFD investors benefit from normal market movements. Clients' open positions are valued in real time, with every tick of the market. Profits or losses similarly are credited to or debited from the clients account equity in real time.
Margin
Unlike physically purchasing stocks, clients only have to deposit approximately 5% of the value of the Shares. So if you want to buy $50,000 worth of Shares, you only need to have $2,500 on deposit with GCI.
Thursday, September 3, 2009
Tuesday, September 1, 2009
Casio Exilim EX-Z33 Digital Camera with Best Shot
Casio has announced its new entry-level digital camera to its Exilim lineup with the model Casio Exilim EX-Z33 Digital Camera.It comes with the Best Shot function that can be programmed to automatically adjust to the scene being shot.Casio Exilim EX-Z33 is a 10 Megapixel digital camera that features a 3X optical zoom lens and a 2.5-inch LCD display.Casio Exilim EX-Z33 Digital Camera is a compact stylish camera.Casio Exilim EX-Z33 Digital Camera offers face detection and Auto shutter function.It also has the YouTube capture mode that records and saves movies at the ideal settings for YouTube. Recorded video can be easily uploaded to YouTube using the special included computer software.
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