Archive for June, 2011

Article by William R. Alheim, Jr., CPA, MA

If you are new comer to the markets you really have no idea how lucky you have it. The tools you have in the form of Forex trading systems and Forex trading software have so greatly improved your ability to make money that it is nothing short of extraordinary.

When I first started in the markets approximately a decade ago there weren’t any currency trading systems at all. I was forced to do all my research and calculations by hand. This was extremely time consuming and tedious work to say the least. By the time you finally finished, to tell you the truth you had very little time to think about a possible investment and were almost always late to purchase a currency after its price had already increased. This of course cut down on your profits.

There is nothing in the world that produces more critical information than the FX markets. This data must first be captured, second it needs to be scrutinized for relevance and finally investment prospects need to be recognized. Today this is all done by the software. This, of course leaves you more time to examine the findings and fine tune the investment process.

The best of the best of these systems are well equipped at finding possible currencies for you to become involved in. Which as a private investor is exactly what you need you software to do.

My favorite Forex trading systems and Forex trading software are called Fap Turbo and Forex MegaDroid. These products are not only utilized by me, but hundred of thousands investors worldwide as they are widely perceived as the best of the best systems one can acquire. They are thought of in this manner for one reason and one reason only, they produce more income for there users than anything else you can acquire. Each of these products have exceptional websites where they go into much more detail explaining the technology they use and how they will help you achieve you financial goals.

We have years of experience researching and testing all Forex and Currency related software and in that time reviewed 100′s of products. Out of those we have only kept our Top Ten Forex Trading Systems for you to check out and make your own decision on.

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Dangers of Doubling-UP in Futures Trading

Article by Steve James

Doubling-up in futures trading is a strategy that when properly employed properly can get your profit margin soaring to the roof, but on the other hand when wrongly employed can result in a complete run down of your trading account. When doubling up the trader is effectively adding more positions to an already existent trade for example; Mr A purchases one contract of the December Mini Dow futures and in November he figures due to a positive economic report that the Dow stocks are bound to rally, based on this Mr A decides to double up by purchasing a further one contract of the Dow Mini.

The example above is a classic case of doubling up on a trade and this can be applied when you are buying to open a position as well as selling to open a position. But there are certain circumstances where doubling up must be avoided such as:

Doubling up in a losing trade:This is a very risky thing to do and must be avoided at all cost. It is always easy to get frustrated with a losing trade and have that feeling of false hope that if you were to double up on your trade you will be able to cover the losses a lot faster. This is not true because if things turn out for the worse you will suffer a greater draw down for one trade and this can seriously deplete your account and at a faster rate. Do not ever double up on a losing trade, as a matter of fact if you must do anything to a losing trade it is wiser to downsize your contract.

Doubling up for a long term:Doubling up is a trading strategy that must be applied with skill and caution. Double up only for a short term and take your profit quickly. Never allow doubling up make you trade bigger than your account size and initial plan. For instance during news release traders double up to ride the fast and short wave which always follow news releases, but such positions are never held for too long. So it might help to see doubling up as an opportunity that needs to swipe as quickly as possible. Adopt the hawk approach when it comes to doubling up i.e. Move in quickly for the kill take a quick profit and clear out.

However, it is important to only double up when you are completely certain that fundamental analysis and technical agree with you, otherwise stay with your current trade and avoid doubling up. Doubling up can lead to greed and indiscipline such that you might find yourself unable to take profits as you allow the market to ride indefinitely which will never happen. History has show that the market always tends to seek a correction after a long period of bull or bear market.

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Article by Brent Crouch

Conventional Forex trading is not the most common type of trading you will encounter today, but it is certainly a very important type nonetheless. Many people who do not have a large amount of money that they can invest over a long period of time will prefer to try day trading for starters and then eventually move over to swing trading when they get the opportunity, but people who end up with enough money that they can make a number of investments for the future will almost unanimously opt for conventional trading as a way to grow their investment over time.

The main reason for this has to do with the idea of stability. One way to look at it would be through the use of statistics. Assuming that conventional trading, day trading and swing trading are all distributed evenly with respect to their statistical probabilities, the main differences between the three types of trading is that the average return per trade goes up respectively, and at the same time, the standard deviation also tends to increase. This means that you might make a better average amount per trade with swing trading if you do it properly, but your losses are also going to be magnified because of the greater diversity and action that happens at the swing level. Over time, however, those sharp movements tend to even out and conventional trading strategies tend to make you more money with larger investments over the course of time.

If you are interested in conventional trading and have the money necessary to make it a worthwhile endeavor, something you are going to have to do is take a close look at the currency you might be interested in buying or selling. You want to have some idea of how the currency is going to do over the long run, and while nobody can predict with certainty exactly what a currency will do over the long run, you can get a good idea of whether it is going to go up or down based on the economy that is backing the currency.

The US dollar is a very good example of this. The US economy up to the present moment has been growing in leaps and bounds because of the fast pace at which they have been expanding credit. Every financial analyst around knew that the US dollar would gain in leaps and bounds because of the credit being offered to the world in US dollar amounts (and therefore making other countries buy US dollars to get the credit), but they also knew that contraction could mean the implosion of that same currency pair. When the credit crunch hit the US in early 2008, it turned out they were correct, and the US dollar dropped significantly in its value. Not every case is as obvious as this one, but it is good enough to illustrate that if you have a general idea about where the economy of a country is going, you also have a general idea about where its currency is going.

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Article by William McCready

Futures traders come in all flavors but it’s basically a Neapolitan world. You can be a scalper, swing trader or a combination trader. Mindset and methodology generally determine in which sector of the futures trading world you’ll thrive.

SCALPERSScalpers seek immediate gratification. They look for short-term market movements seeking to shave money off the bid/ask price spread. Holding each position for only a very short period of time (often 5-30 minutes) to minimize risk, scalpers make small gains through rapid trading.

Goals and factors scalpers seek to be most productive are:

1. Best money-making strategy: to realize a large gain by the end of the day from the accumulation of many small gains.2. Most productive market environment: Wide-channel, heavy-volume, trending or oscillating markets.3. In their trading tool box: 1- and 3-minute moving averages and oscillators such as stochastic charts.

SWING TRADERSSwing traders are more dispassionate. Fundamentalists at heart, swing traders track price trends and patterns and other quantitative data looking for short-term price momentum. They act quickly to exploit such short-term price movements, looking for gains that can be made in one to four days. Swing traders sometimes mitigate risk by trading in smaller quantities.Goals and factors swing traders seek to be most productive are:

1. Best money-making strategy: To gain from short-term changes in price movements that occur over one to four days.2. Most productive market environment: Tight-channel, light-volume and trending markets. 3. In their trading tool box: 13- and 60-minute moving averages and stochastics charts.

The disadvantage is higher margins required to hold a contact overnight.

COMBINATION TRADERS Quick reflexes and flexibility characterize combination traders. They are able to gauge the market and respond quickly to the existing environment, whether it’s a snap decision or the more patient approach.

To become a successful futures trader, you have to figure out which trading style suits your personality and talents. If you’re quick on your feet, have the ability to look at the indicators and make snap decisions, and can be satisfied with small wins, you could thrive as a scalper. If you prefer a more measured approach to trading, like to back your decisions up with data, and have the patience to wait for the right moment, swing trading could be your milieu. If you can live in both worlds, you’re a combination trader. Each trading style has its advantages and can be quite profitable. The trick is to figure out in which environment YOU can be most profitable.

Bill McCready teaches people to make money trading. For 11 FREE futures trading lessons, and a free ebook, visit http://www.FuturesTradingSecrets.com

Please note that this video is for training purposes and any dates are therefore not applicable or current

www.ForexAutopilotRobot.com – Fibonacci Retracement and Extension – Holy Grail in Trading – Did you find the Holy Grail in trading? If you know when to enter the market and when to exit the market at the right time, you have found the Holy Grail in trading. Fibonacci Retracement and Extensions is the Holy Grail for many traders. They trade by these Fibonacci Levels. Fibonacci sequence is a famous sequence that appears quite frequently in nature. Fibonacci sequence is obtained by adding the last two number to obtain the next number. The first two numbers are 0,1. After that just add the last two numbers to obtain the next number. Fibonacci sequence just develops like 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55,89144233377 and so on. Ratios obtained by dividing a number in the Fibonacci sequence with the number before it and with two numbers before it are always the same. These two numbers 1.27, 0.618 and 0.382 are very important and occur frequently in nature. These three ratios are used to construct Fibonacci Retracements and Extension Levels. When there is a trend, price action is steadily going higher or lower. In case of an uptrend the price action makes higher highs and higher lows. While in case of a downtrend, price action makes lower lows and lower highs. This is hard to explain in words visualizing but I will make an effort. It is much better explained in front of a price chart. In case of an uptrend, price action starts from the support A, goes to resistance B, bounces
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Article by John H. Anderson

Of course, the simple explanation about online futures trading is the same as the offline version, which would be that an investor enters into a transaction and agrees to either buy or sell the commodity at a later date, no matter the price change. Of course, when you do this, you would most of the time be expecting that the price of the commodity increase, so that you gain the obvious profit – but there is a lot more to futures trading that you should know about.

For example, thrust the sell and buy orders, which are taken from a multitude of investors and sources would normally into the trading floor where all transactions would be then executed. One of the major uses of the futures market is of course the transfer and relocation of risk in a transaction, as well as increasing the liquidity factor among traders and market makers. It is one of the methods that traders use to either take away or minimise risk to levels in a market ruled by fluctuations in the price.

Usually, when talking about the futures market, there are two main people that we can discuss here; which is the hedgers and the speculators. The hedgers use this method to protect themselves against any drastic change in market prices and this is essentially done by offloading a lot of the risk to those who are in the business of taking risk. These are mainly made up of financial institutions, brokerages and banks. There are usually two kinds of hedgers, and they are in the sale and purchase quadrant of the market. There is a gamble of sorts in this as nobody can truly predict the behaviour of the market.

Of course, they can be as precise as they can using analysis and strategies, but there is no guarantee that the market forecast will follow the patterns you have set down. Therefore, this sort of strategy should only be adopted by those with plenty of experience of the market of their choice, especially knowing how their commodity will behave and what sorts of factors will affect the price change. Speculators, are mostly interested in turning a profit by trying to predict and forecast the method, buying a commodity now and selling it later at a higher price. Most people out in the market are usually speculators, with hedgers making a smaller population amount, yet they often trade with large amounts of money that more than often eclipse the amounts that speculators are involved in.

These are some of the information that you might be interested to know when concerned about online futures trading and in the scheme of things, and taking into consideration the current status of the economy, the dominating advice would be to skip online futures trading and go with something else. More and more people are getting into the Forex market, because of its nature and the obvious decrease of red tape. If you are thinking about online futures trading, think maybe a year or two down the road, when the economy stabilises (hopefully).

John H. Anderson is a specialist in Forex Trading with more than a decade of experience. He owns Trade-currency.org where he provides his Forex Trading Review !

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Please note that this video is for training purposes and any dates are therefore not applicable or current

The Fibonacci retracement tool is one of several Fibonacci tools that are available to you, but the retracement tool is the only one of them that I use.