Like most people when I started trading forex I had very little time to monitor trades because of my job and other responsibilities.
However this does not mean you can not make plenty of money trading forex.
Intrigued? Please grab nice cup of tea or coffee and read on.
If you have already tried you hand at trading the forex market I am sure you are aware it is not as easy as it looks. Like most newbie's you more than likely started trading the 5 minute or 15 minute charts, the thought of all that money right there in the market waiting to be taken was too tempting. I know, I have been there!
Let me say one thing before we go any further, if you can not make consistent money on the daily charts then you won't be able to do it on the lower time frames!
Trading the lower time frames is where 95% of traders loose there money! You should focus your attention on the daily charts, check them every evening and plan your trades for the coming week.
Almost all the most successful traders plan and take their trades based on the daily charts, do you think they watch the 5 minute charts?
Here is what you need to do, pick several of your favourite pairs to trade, limit yourself to 1 good trade a week, this means your trade needs to be planed and have good technical reasons for price to go in your favour. Keep your charts clean and simple, use support and resistance with price action for setups.
Never risk more than 3% of your account on any one trade no matter what the stop size is. With today's brokers offering micro lots (.10c) it is easy to get your position size correct no matter how small your account is.
If you have two really good setups in one week and you don't know which one to take just take them both but use half of your normal risk per trade on each.
If you do what I have outlined I guarantee you will see an improvement in you trading results it is not difficult to increase your trading account by 10-15% each month while only taking 1 trade a week.
Trading the daily charts of many pairs can be easily done while having a fill time day job, I do it and you can too, you just have to be willing to put in a little extra hard work on planning your trades when you come home.
I hope this helps you on your way to consistent profits from the forex market.
Tuesday, August 14, 2007
Monday, August 13, 2007
The Secret Formula To Picking A Million Dollar Forex Trading Strategies
All successful traders have forex trading strategies that they follow to make profitable trades. These forex trading strategies are generally based on a strategy that allows them to find good trades. And the strategy is based on some form of market analysis. Successful traders need some way to interpret and even predict the movements of the market.
There are two basic approaches to analysing market movements, in both equity markets and the forex market. These are technical analysis and fundamental analysis. However, technical analysis is much more likely to be used by traders. Still, it's good to have an understanding of both types of analysis, so that you can decide which type would work best for your forex trading strategies.
In fundamental analysis, you are basically valuing either a business, for equity markets, or a country, for forex. If you think it's hard enough to value one company, you should try valuing a whole country. It can be quite difficult to do, but there are indicators that can be studied to give insight into how the country works. A few indicators you might want to study are: Non farm payrolls, Purchasing Managers Index, also known as PMI, Consumer Price Index, also known as CPI, Retail Sales, and Durable Goods.
Most traders in the forex market only use fundamental analysis to predict long term trends. However, some traders do forex trading strategies that trade short term on the reactions to different news releases. There are also quite a variety of meetings where you can get quotes and commentary that can affect markets just as much as any news release or indicator report. These meetings are often discussing interest rates, inflation, and other issues that have the ability to affect currency values.
Even changes in how things are worded in statements addressing these types of issues, such as the Federal Reserve chairman's comments on interest rates, can cause volatility in the market. Two important meetings that you should watch for are the Federal Open Market Committee and the Humphrey Hawkins Hearings.
Just by reading the reports and examining the commentary, forex trading strategies in fundamental analyst can get a better understanding of most long term market trends. Keeping up on these developments will also allow short term traders to profit from extraordinary happenings. If you do decide to follow forex trading strategies in fundamental analyst, you want to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also be able to provide you with real time access to this kind of information.
Just like their counterparts in the equity markets, technical analysts in the forex market analyze price trends. The only real difference between technical analysis in forex and technical analysis in equities is the time frame. forex markets are open 24 hours a day.
Because of this, some forms of technical analysis that factor in time have to be modified so that they can work in the 24 hour forex market. Some of the most common forms of technical analysis used in forex are: Elliott Waves, Fibonacci studies, Parabolic SAR, and Pivot points.
Many forex trading strategies in technical analysts combine technical indicators to make more accurate predictions. The most common tendency is to combine Fibonacci studies with Elliott Waves. Others prefer to create entire trading systems in an effort to repeatedly locate similar buying and selling conditions.
Whichever form of forex trading strategies in any kind of analysis you choose, it's best to make sure you learn as much as possible about it and your market. Then you will be able to use you knowledge to create a trading system that will suit your needs, and help you to become a profitable trader in the forex market.
There are two basic approaches to analysing market movements, in both equity markets and the forex market. These are technical analysis and fundamental analysis. However, technical analysis is much more likely to be used by traders. Still, it's good to have an understanding of both types of analysis, so that you can decide which type would work best for your forex trading strategies.
In fundamental analysis, you are basically valuing either a business, for equity markets, or a country, for forex. If you think it's hard enough to value one company, you should try valuing a whole country. It can be quite difficult to do, but there are indicators that can be studied to give insight into how the country works. A few indicators you might want to study are: Non farm payrolls, Purchasing Managers Index, also known as PMI, Consumer Price Index, also known as CPI, Retail Sales, and Durable Goods.
Most traders in the forex market only use fundamental analysis to predict long term trends. However, some traders do forex trading strategies that trade short term on the reactions to different news releases. There are also quite a variety of meetings where you can get quotes and commentary that can affect markets just as much as any news release or indicator report. These meetings are often discussing interest rates, inflation, and other issues that have the ability to affect currency values.
Even changes in how things are worded in statements addressing these types of issues, such as the Federal Reserve chairman's comments on interest rates, can cause volatility in the market. Two important meetings that you should watch for are the Federal Open Market Committee and the Humphrey Hawkins Hearings.
Just by reading the reports and examining the commentary, forex trading strategies in fundamental analyst can get a better understanding of most long term market trends. Keeping up on these developments will also allow short term traders to profit from extraordinary happenings. If you do decide to follow forex trading strategies in fundamental analyst, you want to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also be able to provide you with real time access to this kind of information.
Just like their counterparts in the equity markets, technical analysts in the forex market analyze price trends. The only real difference between technical analysis in forex and technical analysis in equities is the time frame. forex markets are open 24 hours a day.
Because of this, some forms of technical analysis that factor in time have to be modified so that they can work in the 24 hour forex market. Some of the most common forms of technical analysis used in forex are: Elliott Waves, Fibonacci studies, Parabolic SAR, and Pivot points.
Many forex trading strategies in technical analysts combine technical indicators to make more accurate predictions. The most common tendency is to combine Fibonacci studies with Elliott Waves. Others prefer to create entire trading systems in an effort to repeatedly locate similar buying and selling conditions.
Whichever form of forex trading strategies in any kind of analysis you choose, it's best to make sure you learn as much as possible about it and your market. Then you will be able to use you knowledge to create a trading system that will suit your needs, and help you to become a profitable trader in the forex market.
How to Read Forex Quotes
forex quotes can be pretty confusing. However, it takes just a little know-how, to read them.
What does a foreign exchange quote look like? Look at the following example:
EUR/USD = 1.2526
The above formula shows the foreign exchange rate between the euro and the US dollar.
Remember that in any forex quote, two currencies will always be present. This is because with forex trading, you are buying one currency as you sell another currency.
The first currency listed in a foreign exchange quote is called the "base currency." The second currency in the formula is the "quote currency." Therefore, forex quotes show us the relationship between prices for the two currencies in the quote.
The exchange rate is made up by showing how many units of the quote currency you have to pay in order to buy one unit of the base currency.
The euro is the base currency, above, and US dollars are the quote currency. The quote shows how each currency trades relative to the other. If you want to buy one euro unit, therefore, you will have to sell 1.2526 US dollar units.
Next is the "bid/ask" spread. The bid/ask spread is the alternative to broker commissions in the forein exhange market. Brokers get paid for their work via the bid/ask spread.
With the bid/ask spread added to the above example, it looks like this:
EUR/USD = 1.2526/1.2528
Simplified, it looks like this:
EUR/USD = 1.2526/8
Brokers make their money when they sell currencies for slightly more than they buy them. This is legal and every broker does it. However, the spread can differ significantly between brokers.
When you trade forex, you buy at the bid price, the first price in the above example. You then sell at the ask price, which is the second price quoted. The difference between those two prices is called a "spread;" this is what the broker makes as his or her profit on the trade.
In the above example, you've bought at 1.2526 and sold at 1.2528. The 0.0002, or two pips, goes to the broker as payment for executing the trade. When you look at it this way, you can see that the bid/ask spread is relatively simple and straightforward; it is a relatively easy way to calculate trading fees and expenses.
Tip
When trading currencies I would recommend that you stick to the seven major currencies. They are as follows:
USD - US Dollar
EUR - the Euro
GBP - British Pound
JPY - Japanese Yen
CHF - Swiss Franc
AUD - Australian Dollar
CAD - Canadian Dollar
What does a foreign exchange quote look like? Look at the following example:
EUR/USD = 1.2526
The above formula shows the foreign exchange rate between the euro and the US dollar.
Remember that in any forex quote, two currencies will always be present. This is because with forex trading, you are buying one currency as you sell another currency.
The first currency listed in a foreign exchange quote is called the "base currency." The second currency in the formula is the "quote currency." Therefore, forex quotes show us the relationship between prices for the two currencies in the quote.
The exchange rate is made up by showing how many units of the quote currency you have to pay in order to buy one unit of the base currency.
The euro is the base currency, above, and US dollars are the quote currency. The quote shows how each currency trades relative to the other. If you want to buy one euro unit, therefore, you will have to sell 1.2526 US dollar units.
Next is the "bid/ask" spread. The bid/ask spread is the alternative to broker commissions in the forein exhange market. Brokers get paid for their work via the bid/ask spread.
With the bid/ask spread added to the above example, it looks like this:
EUR/USD = 1.2526/1.2528
Simplified, it looks like this:
EUR/USD = 1.2526/8
Brokers make their money when they sell currencies for slightly more than they buy them. This is legal and every broker does it. However, the spread can differ significantly between brokers.
When you trade forex, you buy at the bid price, the first price in the above example. You then sell at the ask price, which is the second price quoted. The difference between those two prices is called a "spread;" this is what the broker makes as his or her profit on the trade.
In the above example, you've bought at 1.2526 and sold at 1.2528. The 0.0002, or two pips, goes to the broker as payment for executing the trade. When you look at it this way, you can see that the bid/ask spread is relatively simple and straightforward; it is a relatively easy way to calculate trading fees and expenses.
Tip
When trading currencies I would recommend that you stick to the seven major currencies. They are as follows:
USD - US Dollar
EUR - the Euro
GBP - British Pound
JPY - Japanese Yen
CHF - Swiss Franc
AUD - Australian Dollar
CAD - Canadian Dollar
What is Forex Trading? - An Introduction to Trading Currencies
Forex trading has become extremely popular recently. Do you know what Forex Trading is? What is it exactly and how can you make money from trading currencies if you are not an expert trader? You will find the basic knowledge in this article.
Forex Trading = Foreign Exchange
Forex trading is also called "currency trading" or "FX," short for "foreign exchange." While foreign exchange does not get as much attention as the stock market, options and commodities do, for example, it is nonetheless the biggest market in the world. The foreign exchange market also offers investors a huge opportunity for profit.
When you trade on the foreign exchange, you do not trade stocks or bonds. You trade in currency. Basically, forex trading involves buying one currency and selling another. As exchange rates fluctuate, you make money or lose money.
With forex trading, you don't invest in a single company or group of companies as you do with stocks or mutual funds, for example. Instead, you are investing in a particular national economy. You are pinning hopes on one nation's economic health versus that of another.
As an example, let us say that you are comparing the Japanese yen and the US dollar. Your research seems to tell you that the US dollar is undervalued and will soon rise in price; simultaneously, you expect the Japanese yen will lose some value. In that case, you would execute a trade to buy US dollars and sell Japanese yen. If you are correct, the exchange rate will go up and you will profit from your analysis.
Even though this sounds easy, though, it is not. In fact, currency prices can be very difficult to predict, because so many things can cause a change in exchange rates. You also have to remember that with currency trading, you trade in pairs. Therefore, you buy one currency while you sell another. Therefore, you won't just look at one nation's economy, but you will be comparing two.
Of course, you do not have to limit yourself to just the US dollar and the Japanese yen, for example. There are many dozens of different currencies to choose from, with seven major ones. Therefore, if you are just starting out, I would recommend that you stick to the seven major currencies. They are as follows:
USD - US Dollar
EUR - the Euro
GBP - British Pound
JPY - Japanese Yen
CHF - Swiss Franc
AUD - Australian Dollar
CAD - Canadian Dollar
If you are a small investor, you will generally concentrate on trading these particular currencies.
Forex Trading = Foreign Exchange
Forex trading is also called "currency trading" or "FX," short for "foreign exchange." While foreign exchange does not get as much attention as the stock market, options and commodities do, for example, it is nonetheless the biggest market in the world. The foreign exchange market also offers investors a huge opportunity for profit.
When you trade on the foreign exchange, you do not trade stocks or bonds. You trade in currency. Basically, forex trading involves buying one currency and selling another. As exchange rates fluctuate, you make money or lose money.
With forex trading, you don't invest in a single company or group of companies as you do with stocks or mutual funds, for example. Instead, you are investing in a particular national economy. You are pinning hopes on one nation's economic health versus that of another.
As an example, let us say that you are comparing the Japanese yen and the US dollar. Your research seems to tell you that the US dollar is undervalued and will soon rise in price; simultaneously, you expect the Japanese yen will lose some value. In that case, you would execute a trade to buy US dollars and sell Japanese yen. If you are correct, the exchange rate will go up and you will profit from your analysis.
Even though this sounds easy, though, it is not. In fact, currency prices can be very difficult to predict, because so many things can cause a change in exchange rates. You also have to remember that with currency trading, you trade in pairs. Therefore, you buy one currency while you sell another. Therefore, you won't just look at one nation's economy, but you will be comparing two.
Of course, you do not have to limit yourself to just the US dollar and the Japanese yen, for example. There are many dozens of different currencies to choose from, with seven major ones. Therefore, if you are just starting out, I would recommend that you stick to the seven major currencies. They are as follows:
USD - US Dollar
EUR - the Euro
GBP - British Pound
JPY - Japanese Yen
CHF - Swiss Franc
AUD - Australian Dollar
CAD - Canadian Dollar
If you are a small investor, you will generally concentrate on trading these particular currencies.
Using the Adx Indicator for Bigger Profits
If you're using charts, then you want to trade the strong trends - and the Average Directional Movement Index Indicator, or ADX, enables you to do this.
Wells Wilder developed the ADX, and outlined it in his classic book “New Concepts in Technical Trading Systems”.
Let’s look at this essential indicator in more detail - and see how to apply it on your forex charts, to give you greater accuracy when generating your trading signals.
Determining the Strength of the Trend
The ADX is a momentum indicator, which aims to measure the strength of the trend - and attempts to determine if the market is trending, or is trading sideways.
The Advantages of the ADX
A core belief of technical analysis is that a strong trend in motion is more likely to continue, than reverse. Therefore, you always want to be trading strong trends - as your odds of success are higher. The Average Directional Movement is a good indictor – and you should consider using it as part of your currency trading system.
The Technical Bit
For the boffin’s out there, here’s the technical bit – don’t worry if you don’t understand the calculation, its easy to use when visually plotted. The ADX is based on the comparison of two other directional indicators, both of which were also developed by Wilder, and they are:
Positive Directional Indicator (+DI) and the Negative Directional Indicator (-DI) to produce ADX as showed in the following formula:
ADX = SUM[(+DI-(-DI))/(+DI+(-DI)), N]/N
Where:
N: Refers to the period of calculation. The formula above produces the ADX line, which oscillates between 0 to 100 values. The +DI and -DI are both present and can be seen to make up the indicator.
You don’t need to understand the above calculation to use the indicator – you only need to accept that the indicator works.
The indicator is easy to use when it’s visually plotted - and you’ll find it included, with most of the good forex chart services.
How to Trade using the ADX Indicator
The ADX it’s not a bullish, bearish trading signal generator - and should never be used as such.
The ADX indicator simply indicates the strength of the trend - and other indicators should be used to enter, and exit trades.
Although the ADX fluctuates from 0 to 100, it rarely moves above 60.
Use the ADX in the following way:
Readings above 40 indicate the strength of the trend.
Readings below 20 indicate range trading and flat periods of consolidation.
You can use the crossing of +DI and -DI to determine the trend direction; when +DI crosses -DI upward, it’s a bullish signal, on the other hand, when +DI crosses -DI downward it’s a bearish signal.
The ADX line is a great momentum indicator and like the RSI (also developed by Wells Wilder), the ADX it will help you trade the strongest trends - and give you advance warning of changes in momentum.
The Bottom Line
If you want currency trading success, you can’t just trade support and resistance levels, and hope they hold or break. You need confirmation of momentum to get the odds on your side - and the ADX indicator will assist you.
Final Words
New Concepts in Technical Trading Systems was published in 1978, and was one of the first trading books I ever bought. Every trader should make this book a part of his or her forex education. If you want to learn forex trading the right way, get the book, and use the ADX indicator to increase your chances of making big FX Profits.
Wells Wilder developed the ADX, and outlined it in his classic book “New Concepts in Technical Trading Systems”.
Let’s look at this essential indicator in more detail - and see how to apply it on your forex charts, to give you greater accuracy when generating your trading signals.
Determining the Strength of the Trend
The ADX is a momentum indicator, which aims to measure the strength of the trend - and attempts to determine if the market is trending, or is trading sideways.
The Advantages of the ADX
A core belief of technical analysis is that a strong trend in motion is more likely to continue, than reverse. Therefore, you always want to be trading strong trends - as your odds of success are higher. The Average Directional Movement is a good indictor – and you should consider using it as part of your currency trading system.
The Technical Bit
For the boffin’s out there, here’s the technical bit – don’t worry if you don’t understand the calculation, its easy to use when visually plotted. The ADX is based on the comparison of two other directional indicators, both of which were also developed by Wilder, and they are:
Positive Directional Indicator (+DI) and the Negative Directional Indicator (-DI) to produce ADX as showed in the following formula:
ADX = SUM[(+DI-(-DI))/(+DI+(-DI)), N]/N
Where:
N: Refers to the period of calculation. The formula above produces the ADX line, which oscillates between 0 to 100 values. The +DI and -DI are both present and can be seen to make up the indicator.
You don’t need to understand the above calculation to use the indicator – you only need to accept that the indicator works.
The indicator is easy to use when it’s visually plotted - and you’ll find it included, with most of the good forex chart services.
How to Trade using the ADX Indicator
The ADX it’s not a bullish, bearish trading signal generator - and should never be used as such.
The ADX indicator simply indicates the strength of the trend - and other indicators should be used to enter, and exit trades.
Although the ADX fluctuates from 0 to 100, it rarely moves above 60.
Use the ADX in the following way:
Readings above 40 indicate the strength of the trend.
Readings below 20 indicate range trading and flat periods of consolidation.
You can use the crossing of +DI and -DI to determine the trend direction; when +DI crosses -DI upward, it’s a bullish signal, on the other hand, when +DI crosses -DI downward it’s a bearish signal.
The ADX line is a great momentum indicator and like the RSI (also developed by Wells Wilder), the ADX it will help you trade the strongest trends - and give you advance warning of changes in momentum.
The Bottom Line
If you want currency trading success, you can’t just trade support and resistance levels, and hope they hold or break. You need confirmation of momentum to get the odds on your side - and the ADX indicator will assist you.
Final Words
New Concepts in Technical Trading Systems was published in 1978, and was one of the first trading books I ever bought. Every trader should make this book a part of his or her forex education. If you want to learn forex trading the right way, get the book, and use the ADX indicator to increase your chances of making big FX Profits.
Forex Trading Strategy – 6 Simple Steps to Success
If you want to win at forex trading you need a forex trading strategy that can help you enter the elite 5% that make money and avoid joining the vast majority of losers.
This article is all about devising a forex trading strategy for success in 5 simple steps.
1. Accept Responsibility
The first point to keep in mind is that you are responsible for your own success – if you think you can buy success from a vendor for a few hundred dollars - you are going to lose.
Only you can make yourself successful and this means you have to develop your forex strategy on your own. The good news is, everything about forex trading can be specifically learned and is free on the net.
2. Learn the RIGHT knowledge
Forex trading is all about learning the right knowledge – This is an important point, many traders simply think the more the better in terms of knowledge, but this is simply NOT true.
You get rewarded for results in currency trading and the accuracy of your trading signals, not the effort you make.
Your forex trading system that you use in your trading strategy should be kept simple and easy to understand. This way, ensures it will be robust in the face of ever changing market conditions.
Simple systems work far better than complicated ones and have the added benefit of being easy to understand by you – This means that you will have the confidence to follow it with discipline.
3. Deciding Your Methodology
You will need to decide if you want to a technical or fundamental trader.
By far the easiest is to be a technical one and use forex charts to spot trading opportunities.
You need to get the odds on your side and this means NO forex day trading!
It doesn’t work, as all short term volatility is random. Instead, base your forex trading strategy on swing trading, or long term trend following.
Both these methods will work and the one you choose is personal preference.
You then need to have a clear understanding of support and resistance and some momentum indicators to help you get into trades ( this is covered in our other articles )essentially you need to confirm price momentum is on your side when you trade.
Finally, learn the concept of “breakouts” it’s a timeless very profitable methodology.
4. RISK and Money Management
If you don’t like risk don’t trade forex markets. Most traders don’t understand risk and are so frightened of it, they end up being to cautious and lose.
If you want to make money you need to take calculated risks, at the right time.
You need to have the courage of your conviction. If you come into forex trading thinking you can risk 2% of your equity and make money do something else, as you will lose.
5. Trading is in the head
Most traders fail because they cannot obtain mental discipline, to follow their forex trading system through bad periods i.e. they lack discipline due to lack of confidence.
If you develop your forex trading strategy yourself, you will understand exactly how and why your system works - this will instil confidence and from confidence flows discipline.
Keep in mind if you don’t have discipline to follow your system you have no system!
6. Realism
Sure people get rich quickly but that’s the norm for most currency traders.
You need to have a realistic forex trading strategy and that means aiming for 50 – 100% per annum.
If you can achieve this you will be up there with the best and this will compound to a lot of money over time.
REMEMBER!
You don’t need to buy any material to construct your forex trading strategy, its all free online.
You just need to research it and avoid people telling you that you can buy success from them, for a few hundred dollars – you cant, there are no shortcuts
The good news is, everything about forex trading can be specifically learned and you can do it all on your own, if you are prepared to put in a little time and effort.
This article is all about devising a forex trading strategy for success in 5 simple steps.
1. Accept Responsibility
The first point to keep in mind is that you are responsible for your own success – if you think you can buy success from a vendor for a few hundred dollars - you are going to lose.
Only you can make yourself successful and this means you have to develop your forex strategy on your own. The good news is, everything about forex trading can be specifically learned and is free on the net.
2. Learn the RIGHT knowledge
Forex trading is all about learning the right knowledge – This is an important point, many traders simply think the more the better in terms of knowledge, but this is simply NOT true.
You get rewarded for results in currency trading and the accuracy of your trading signals, not the effort you make.
Your forex trading system that you use in your trading strategy should be kept simple and easy to understand. This way, ensures it will be robust in the face of ever changing market conditions.
Simple systems work far better than complicated ones and have the added benefit of being easy to understand by you – This means that you will have the confidence to follow it with discipline.
3. Deciding Your Methodology
You will need to decide if you want to a technical or fundamental trader.
By far the easiest is to be a technical one and use forex charts to spot trading opportunities.
You need to get the odds on your side and this means NO forex day trading!
It doesn’t work, as all short term volatility is random. Instead, base your forex trading strategy on swing trading, or long term trend following.
Both these methods will work and the one you choose is personal preference.
You then need to have a clear understanding of support and resistance and some momentum indicators to help you get into trades ( this is covered in our other articles )essentially you need to confirm price momentum is on your side when you trade.
Finally, learn the concept of “breakouts” it’s a timeless very profitable methodology.
4. RISK and Money Management
If you don’t like risk don’t trade forex markets. Most traders don’t understand risk and are so frightened of it, they end up being to cautious and lose.
If you want to make money you need to take calculated risks, at the right time.
You need to have the courage of your conviction. If you come into forex trading thinking you can risk 2% of your equity and make money do something else, as you will lose.
5. Trading is in the head
Most traders fail because they cannot obtain mental discipline, to follow their forex trading system through bad periods i.e. they lack discipline due to lack of confidence.
If you develop your forex trading strategy yourself, you will understand exactly how and why your system works - this will instil confidence and from confidence flows discipline.
Keep in mind if you don’t have discipline to follow your system you have no system!
6. Realism
Sure people get rich quickly but that’s the norm for most currency traders.
You need to have a realistic forex trading strategy and that means aiming for 50 – 100% per annum.
If you can achieve this you will be up there with the best and this will compound to a lot of money over time.
REMEMBER!
You don’t need to buy any material to construct your forex trading strategy, its all free online.
You just need to research it and avoid people telling you that you can buy success from them, for a few hundred dollars – you cant, there are no shortcuts
The good news is, everything about forex trading can be specifically learned and you can do it all on your own, if you are prepared to put in a little time and effort.
2 Simple Tips to Target Bigger Gains Instantly!
Enclosed we are going to give you a simple tip that many forex traders ignore in their pursuit of profits but if you learn it, you will increase your profit potential and enjoy greater currency trading success.
If you want bigger forex profits now then read on.
If you have a forex trading strategy it should have one aim and one aim only –
Making bottom line profits
To do this you need to get catch and hold the big currency trends that offer you the big profits and have the odds heavily in your favour when you enter them – and they don’t come around often.
These trades only come around a few times a year in each currency, so the rule is:
Cut down your trading and bet big on the trades that offer you the most favourable odds.
Where Most Traders Go Wrong!
They make two major errors which are:
1. They equate frequency of trading with profits.
2. They never bet enough to win meaningful amounts or get stopped out to soon before the trade has run its course.
In forex trading you don’t get your reward for how often you trade you get your reward for being right with your trading signals – nothing else.
Forget day trading it doesn’t work and never will - neither will trying to be in the market all the time. In conclusion be highly selective in your trading.
Also, if you do what most traders do and risk small amounts 2 – 10% of your equity you won’t have high risk but you won’t make much either.
To Win Do This
Focus on trading off support and resistance levels that are considered valid by the market - if they break chances are the trend will continue.
Understand this:
Most of the big moves in currency trading, that offer the best risk reward occur from new Market highs - NOT Market lows, so forget trying to buy dips.
Take a Risk
If you don’t like taking risks don’t trade currencies most traders try so hard to avoid risk they create it and guarantee that they will lose.
Don’t place stops to close and trail them SLOWLY – make sure you keep them back behind the market noise and are not stopped out by normal market pullbacks.
If you can’t take dips in open equity, you will never enjoy currency trading success – so get used to them.
Be prepared to risk up to 25% on high odds trades if trading a small account and have the courage of your conviction - if you believe in your forex trading system bet as much as you can afford to.
Trade the Odds Bet meaningful amounts and
Win big – that’s the whole aim of the above tips.
You can use the above tips and make triple digit gains - by trading just a FEW times a year!
You may say, that’s not the advice I normally see or it’s not the norm but personally I wouldn’t worry too much about as:
95% of traders lose and follow conventional advice – the above may not be conventional but if you’re a trader who simply wants to make money, you will understand why it can lead you to currency trading success.
Good luck and good trading
If you want bigger forex profits now then read on.
If you have a forex trading strategy it should have one aim and one aim only –
Making bottom line profits
To do this you need to get catch and hold the big currency trends that offer you the big profits and have the odds heavily in your favour when you enter them – and they don’t come around often.
These trades only come around a few times a year in each currency, so the rule is:
Cut down your trading and bet big on the trades that offer you the most favourable odds.
Where Most Traders Go Wrong!
They make two major errors which are:
1. They equate frequency of trading with profits.
2. They never bet enough to win meaningful amounts or get stopped out to soon before the trade has run its course.
In forex trading you don’t get your reward for how often you trade you get your reward for being right with your trading signals – nothing else.
Forget day trading it doesn’t work and never will - neither will trying to be in the market all the time. In conclusion be highly selective in your trading.
Also, if you do what most traders do and risk small amounts 2 – 10% of your equity you won’t have high risk but you won’t make much either.
To Win Do This
Focus on trading off support and resistance levels that are considered valid by the market - if they break chances are the trend will continue.
Understand this:
Most of the big moves in currency trading, that offer the best risk reward occur from new Market highs - NOT Market lows, so forget trying to buy dips.
Take a Risk
If you don’t like taking risks don’t trade currencies most traders try so hard to avoid risk they create it and guarantee that they will lose.
Don’t place stops to close and trail them SLOWLY – make sure you keep them back behind the market noise and are not stopped out by normal market pullbacks.
If you can’t take dips in open equity, you will never enjoy currency trading success – so get used to them.
Be prepared to risk up to 25% on high odds trades if trading a small account and have the courage of your conviction - if you believe in your forex trading system bet as much as you can afford to.
Trade the Odds Bet meaningful amounts and
Win big – that’s the whole aim of the above tips.
You can use the above tips and make triple digit gains - by trading just a FEW times a year!
You may say, that’s not the advice I normally see or it’s not the norm but personally I wouldn’t worry too much about as:
95% of traders lose and follow conventional advice – the above may not be conventional but if you’re a trader who simply wants to make money, you will understand why it can lead you to currency trading success.
Good luck and good trading
Thursday, August 9, 2007
Become a Professional Forex Trader - Living the Dream in 3 Simple Steps
Everything about forex trading can be learned yet 95% of traders lose however if you follow the 3 simple tips enclosed you could enter the elite 5% who achieve currency trading success. Let’s look at 3 tips for forex trading success.
Forex trading is one of the few areas you can build wealth quickly and the opportunity is open to all - but to make your forex trading successful you need to have the right approach.
1. Adopt The Right Mindset
Forex trading can be learned buy anyone but that doesn’t mean making money is easy – it never is.
This doesn’t mean you can’t do it though you can.
Firstly, when learning forex trading you MUST understand that you cannot rely on anyone else to give you success - it comes from within.
You need to create a system you can have confidence in and follow with discipline.
E-book sellers promising you un told riches on the net wont help you, for the cost of a few hundred dollars - if they were successful at currency trading, they wouldn’t tell or need you – they would be to busy making money for themselves.
Once you realize it’s up to you - you’re ready to move to the next step.
2. Get The Right Forex Education
This means only focusing on the important points and skipping the bulk of forex education that will ensure you lose.
You should base your system on forex technical analysis and use forex charts to spot trading opportunities - that put the odds in your favour.
Don’t try predicting or following a scientific system – they don’t work.
The best you can do is get the odds in your favour however that doesn’t mean you can’t make a lot of money – you can.
2. Base Your Forex Trading Strategy On
A looking at support and resistance levels on your forex charts then calculating the odds of them breaking or holding and here is the key:
Don’t simply buy into support or resistance like most losing forex traders – get confirmation of changes in price momentum, to confirm your view is correct before trading.
If you simply buy into support you are predicting and hoping and the forex markets will wipe your equity quickly.
Don’t rely on hope get some momentum indicators to help you - there covered in more detail in our other articles so look them up.
Above all keep your system simple.
Simple systems work best as they are more robust than complicated forex trading systems that have more elements to break.
3. Be patient and Be Realistic
Only execute trading signals in line with signals from your forex charts and adopt a long term approach.
The big trends in currencies last for months or years and catching them should be the basis of your forex trading strategy not trying to trade the daily noise which will see you wiped out.
You don’t get rewarded for effort in forex trading or how often you trade - you get rewarded for being right and that’s it.
Have realistic aims Rome wasn’t built in a day and a forex trader doesn’t become successful over night either - it takes time to get experience, confidence and discipline and spot the big profitable trades.
If you made 100% per annum you would be up there with the best traders in the world - so aim for this level and you could do this trading just 2 or 3 times a year have patience and realism and you will give yourself a great chance of achieving success.
The Dream and The Reality
Is being able to sit at home and make big profits in around an hour a day, with just a computer and some small seed capital.
The dream can become reality, it’s not easy but that’s totally different from being not possible – it is.
If you have a burning desire to succeed, a willingness to learn and confidence in your own ability, maybe you can become one of the minority who make big consistent profits. The question is:
Are you up for the challenge?
Forex trading is one of the few areas you can build wealth quickly and the opportunity is open to all - but to make your forex trading successful you need to have the right approach.
1. Adopt The Right Mindset
Forex trading can be learned buy anyone but that doesn’t mean making money is easy – it never is.
This doesn’t mean you can’t do it though you can.
Firstly, when learning forex trading you MUST understand that you cannot rely on anyone else to give you success - it comes from within.
You need to create a system you can have confidence in and follow with discipline.
E-book sellers promising you un told riches on the net wont help you, for the cost of a few hundred dollars - if they were successful at currency trading, they wouldn’t tell or need you – they would be to busy making money for themselves.
Once you realize it’s up to you - you’re ready to move to the next step.
2. Get The Right Forex Education
This means only focusing on the important points and skipping the bulk of forex education that will ensure you lose.
You should base your system on forex technical analysis and use forex charts to spot trading opportunities - that put the odds in your favour.
Don’t try predicting or following a scientific system – they don’t work.
The best you can do is get the odds in your favour however that doesn’t mean you can’t make a lot of money – you can.
2. Base Your Forex Trading Strategy On
A looking at support and resistance levels on your forex charts then calculating the odds of them breaking or holding and here is the key:
Don’t simply buy into support or resistance like most losing forex traders – get confirmation of changes in price momentum, to confirm your view is correct before trading.
If you simply buy into support you are predicting and hoping and the forex markets will wipe your equity quickly.
Don’t rely on hope get some momentum indicators to help you - there covered in more detail in our other articles so look them up.
Above all keep your system simple.
Simple systems work best as they are more robust than complicated forex trading systems that have more elements to break.
3. Be patient and Be Realistic
Only execute trading signals in line with signals from your forex charts and adopt a long term approach.
The big trends in currencies last for months or years and catching them should be the basis of your forex trading strategy not trying to trade the daily noise which will see you wiped out.
You don’t get rewarded for effort in forex trading or how often you trade - you get rewarded for being right and that’s it.
Have realistic aims Rome wasn’t built in a day and a forex trader doesn’t become successful over night either - it takes time to get experience, confidence and discipline and spot the big profitable trades.
If you made 100% per annum you would be up there with the best traders in the world - so aim for this level and you could do this trading just 2 or 3 times a year have patience and realism and you will give yourself a great chance of achieving success.
The Dream and The Reality
Is being able to sit at home and make big profits in around an hour a day, with just a computer and some small seed capital.
The dream can become reality, it’s not easy but that’s totally different from being not possible – it is.
If you have a burning desire to succeed, a willingness to learn and confidence in your own ability, maybe you can become one of the minority who make big consistent profits. The question is:
Are you up for the challenge?
Thinking of Buying Forex Advice? Read This First
There is a huge amount of FOREX Education you can buy but before you buy it read this, as in excess of 90% of it will ensure you lose.
So you ensure you get the right FOREX Education follow the guidelines below.
1. Never buy a day trading system!
Most novice traders are enticed by the theory of making money everyday, with low risk and high rewards, but this is not the reality of day trading.
The reality of day trading is:
A quick wipe out of equity – why?
Quite simply, all short term moves are random and using support and resistance as day traders do is destined to failure.
If you don’t believe me try this simple test when buying any FOREX Education from a vendor:
Ask for the real time track record of profits and you won’t get one from a day trader.
At best you will get a hypothetical track record, but that’s done in hindsight, knowing the closing prices and if we know the closing prices its not hard to make money.
If you want to make money don’t day trade!
2. Real time profits
A real time track record is an essential requirement on ANY FOREX education you buy, not just day trading systems.
The fact however is, most FOREX education is sold by failed brokers, or people who have never traded in their lives.
If these people have not had the confidence to trade their own money on their own system why should you?
3. Understand the FOREX Education
Even if you are lucky enough to find a system that does have a track record of real FX Profits you need to be mindful of the following:
You need to fully understand the method and not follow it blindly.
If you don’t understand why a method works you won’t have confidence to follow it through inevitable periods of losses.
Not only must you understand it to follow it with discipline, you must also check it fits your trading personality.
Some traders can take big drawdowns or losses, other traders find them hard to take, so pick a system with a risk to reward you can handle emotionally.
4. The best FOREX education
There is a huge amount of FOREX education and FOREX advice free on the web, so use it.
In other articles we have shown how to build a system that makes profits from free info and it’s a lot easier to learn FOREX Trading this way than many people think.
You can also get some great FOREX education at nominal cost from your local bookstore this FOREX advice is from:
Traders who don’t just talk the talk – they have walked the walk and made money.
Great books to look at are Jack Schwager’s excellent Market Wizards and New Market Wizards – which interview some of the best traders of all time.
Trader Vic – Victor Sperandeo a great all round book and there are many more.
Rather than buying a e-book from someone without a track record, get your FOREX Education free on the net and get some classics from legendary traders.
Most of the courses and systems on the web are over priced, don’t work and you can frankly, do better on your own with the above advice.
So you ensure you get the right FOREX Education follow the guidelines below.
1. Never buy a day trading system!
Most novice traders are enticed by the theory of making money everyday, with low risk and high rewards, but this is not the reality of day trading.
The reality of day trading is:
A quick wipe out of equity – why?
Quite simply, all short term moves are random and using support and resistance as day traders do is destined to failure.
If you don’t believe me try this simple test when buying any FOREX Education from a vendor:
Ask for the real time track record of profits and you won’t get one from a day trader.
At best you will get a hypothetical track record, but that’s done in hindsight, knowing the closing prices and if we know the closing prices its not hard to make money.
If you want to make money don’t day trade!
2. Real time profits
A real time track record is an essential requirement on ANY FOREX education you buy, not just day trading systems.
The fact however is, most FOREX education is sold by failed brokers, or people who have never traded in their lives.
If these people have not had the confidence to trade their own money on their own system why should you?
3. Understand the FOREX Education
Even if you are lucky enough to find a system that does have a track record of real FX Profits you need to be mindful of the following:
You need to fully understand the method and not follow it blindly.
If you don’t understand why a method works you won’t have confidence to follow it through inevitable periods of losses.
Not only must you understand it to follow it with discipline, you must also check it fits your trading personality.
Some traders can take big drawdowns or losses, other traders find them hard to take, so pick a system with a risk to reward you can handle emotionally.
4. The best FOREX education
There is a huge amount of FOREX education and FOREX advice free on the web, so use it.
In other articles we have shown how to build a system that makes profits from free info and it’s a lot easier to learn FOREX Trading this way than many people think.
You can also get some great FOREX education at nominal cost from your local bookstore this FOREX advice is from:
Traders who don’t just talk the talk – they have walked the walk and made money.
Great books to look at are Jack Schwager’s excellent Market Wizards and New Market Wizards – which interview some of the best traders of all time.
Trader Vic – Victor Sperandeo a great all round book and there are many more.
Rather than buying a e-book from someone without a track record, get your FOREX Education free on the net and get some classics from legendary traders.
Most of the courses and systems on the web are over priced, don’t work and you can frankly, do better on your own with the above advice.
Forex Online Broker Trading
Finding a good Forex online broker trading service can be an extremely difficult task, but is essential if you want to ensure that you make as much profit as possible from your trades. Hiring the wrong company could lead to devastating results as if you were actually doing the trading on your own without any training or assistance.
When looking for any firm to assist you with your Forex trading, you should be extremely diligent and carry out as much research as possible with regard to those you would like to handle your investment portfolio.
Look for those firms which will provide you with details of those clients who are willing to provide information with regards to their services and how successful they have been. A reputable firm will have plenty of client testimonials which will indicate to you that they are have a strong knowledge and background relating to this type of trading. However these testimonials should not be used as the way of making a decision in relation to which firm you are going to be using.
Also another way of testing out the reliability of any firm that is providing services for people to trade Forex online is the amount of information that they make available to their clients. Also what sorts of literature and any training that they are willing to provide to those who become clients with them.
So the more that a Forex broker trading firm is willing to do for you then this will then provide you with a way to better understand Forex trading systems and so will make you in to a much more competent trader yourself.
A great way of searching out a reputable and good brokerage firm is through friends and family. Ask them if they can suggest anyone and if they do you will still need to carry out your own investigations with regards to their qualifications and knowledge base before you commit to any type of formal agreement with them.
Finally another thing you will need to consider when looking for a good Forex online broker trading firm is to see what margin of return they are offering to their clients. Avoid those that are offering very low margins of return. It is important to remember that these people are providing a service to their customers and if you find that the firms you are considering are not returning your calls within a reasonable amount of time then it is best that you carry on searching for the ones that will.
When looking for any firm to assist you with your Forex trading, you should be extremely diligent and carry out as much research as possible with regard to those you would like to handle your investment portfolio.
Look for those firms which will provide you with details of those clients who are willing to provide information with regards to their services and how successful they have been. A reputable firm will have plenty of client testimonials which will indicate to you that they are have a strong knowledge and background relating to this type of trading. However these testimonials should not be used as the way of making a decision in relation to which firm you are going to be using.
Also another way of testing out the reliability of any firm that is providing services for people to trade Forex online is the amount of information that they make available to their clients. Also what sorts of literature and any training that they are willing to provide to those who become clients with them.
So the more that a Forex broker trading firm is willing to do for you then this will then provide you with a way to better understand Forex trading systems and so will make you in to a much more competent trader yourself.
A great way of searching out a reputable and good brokerage firm is through friends and family. Ask them if they can suggest anyone and if they do you will still need to carry out your own investigations with regards to their qualifications and knowledge base before you commit to any type of formal agreement with them.
Finally another thing you will need to consider when looking for a good Forex online broker trading firm is to see what margin of return they are offering to their clients. Avoid those that are offering very low margins of return. It is important to remember that these people are providing a service to their customers and if you find that the firms you are considering are not returning your calls within a reasonable amount of time then it is best that you carry on searching for the ones that will.
Wednesday, August 8, 2007
Using Fibonacci in your Forex Trading System
Fibonacci retracement analysis is a very widely known and used technical analysis tool, used by traders to mainly calculate possible targets for entry and exit points, and in determining potential levels of support and resistance. The thought behind Fibonacci retracements suggests that the price of whatever currency or market you're observing will often retrace a certain percentage of a previous move, and find support or resistance at the main Fibonacci levels before continuing in its original direction.
What makes this particular indicator superior to most, is that it's known as a 'leading' indicator, not lagging. In other words it has predictive powers, unlike other technical indicators that are informative of change in trend, after it has already occurred, fibonacci retracement levels show you possible turning points before they occur.
These levels are formed by drawing a trend line between two extreme levels (high & low) of a main market move, then dividing the vertical distance by the main Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%.
The majority of good charting packages have the ability to do this automatically for you. For example in Metatrader, all you have to do is this: First you choose a main market move, select the Fibonacci button (the one that has a couple of horizontal lines on it, along with the letter "F"), hold your mouse button down, and drag the line from the bottom of the main move, to the most recent top (for uptrends). In market moves that are moving downwards you would apply the Fibonacci tool starting at the peak of the move. Metatrader then automatically draws in horizontal lines at the main Fibonacci retracement levels.
You may have heard of a famous trader by the name of William. D. Gann who implemented fibonacci levels in his trading, he also mentions them throughout his books and courses. Of all the levels he talked about, he put the greatest significance on the 50% retracement level. He even went as far as to saying: "you can make a fortune trading this one level alone". (How to Make Profits in Commodities). Hearing this from such a widely known and very successful trader shouldn't be taken lightheartedly. Although this book was about trading commodities, many traders use the same principals today, in markets around the world, including the forex market.
How can Fibonacci retracement levels be used?
So the question now is, can you trade forex based on Fibonacci levels alone? The fact is that it is very hard to determine at which Fibonacci retracement level prices will retrace. That's why forex trading systems that use Fibonacci also incorporate the use of other indicators, or price action. For example, if you were to observe that two other indicators are indicating a reversal, while price is near the 61.8% retracement level, this may give you extra confidence that a change in trend is about to occur.
Or alternatively, you could observe a candlestick reversal pattern occurring at a key fibonacci retracement level. For example if a shooting star was formed at a 61.8% retracement level, this would indicate that prices have reached a natural resistance level, and price action is telling you it's time for a reversal.
Conclusion
Just like pivot points, Fibonacci retracement levels can act as a very helpful guide in determining possible reversal points. But, keep in mind that this is just a tool, and shouldn't be used alone. By combining the power of fibonacci retracement levels, along with your other technical tools, you should be able to develop a sound forex trading system and add confidence to execute a trade.
What makes this particular indicator superior to most, is that it's known as a 'leading' indicator, not lagging. In other words it has predictive powers, unlike other technical indicators that are informative of change in trend, after it has already occurred, fibonacci retracement levels show you possible turning points before they occur.
These levels are formed by drawing a trend line between two extreme levels (high & low) of a main market move, then dividing the vertical distance by the main Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, 78.6% and 100%.
The majority of good charting packages have the ability to do this automatically for you. For example in Metatrader, all you have to do is this: First you choose a main market move, select the Fibonacci button (the one that has a couple of horizontal lines on it, along with the letter "F"), hold your mouse button down, and drag the line from the bottom of the main move, to the most recent top (for uptrends). In market moves that are moving downwards you would apply the Fibonacci tool starting at the peak of the move. Metatrader then automatically draws in horizontal lines at the main Fibonacci retracement levels.
You may have heard of a famous trader by the name of William. D. Gann who implemented fibonacci levels in his trading, he also mentions them throughout his books and courses. Of all the levels he talked about, he put the greatest significance on the 50% retracement level. He even went as far as to saying: "you can make a fortune trading this one level alone". (How to Make Profits in Commodities). Hearing this from such a widely known and very successful trader shouldn't be taken lightheartedly. Although this book was about trading commodities, many traders use the same principals today, in markets around the world, including the forex market.
How can Fibonacci retracement levels be used?
So the question now is, can you trade forex based on Fibonacci levels alone? The fact is that it is very hard to determine at which Fibonacci retracement level prices will retrace. That's why forex trading systems that use Fibonacci also incorporate the use of other indicators, or price action. For example, if you were to observe that two other indicators are indicating a reversal, while price is near the 61.8% retracement level, this may give you extra confidence that a change in trend is about to occur.
Or alternatively, you could observe a candlestick reversal pattern occurring at a key fibonacci retracement level. For example if a shooting star was formed at a 61.8% retracement level, this would indicate that prices have reached a natural resistance level, and price action is telling you it's time for a reversal.
Conclusion
Just like pivot points, Fibonacci retracement levels can act as a very helpful guide in determining possible reversal points. But, keep in mind that this is just a tool, and shouldn't be used alone. By combining the power of fibonacci retracement levels, along with your other technical tools, you should be able to develop a sound forex trading system and add confidence to execute a trade.
Choosing a Broker - your First Step to Forex Sucess
As the online Forex trading market becomes increasingly saturated and the choice of brokers becomes wider, the decision of which broker to run with becomes increasingly important for the trader. Although the majority of brokers provide the same basic trading platform, there can be a vast difference in what they offer their clients, both in terms of trading conditions as well as customer support. By simply visiting a company's homepage it may be hard to separate the second-rate firms from the professionals, therefore this article will examine the main parameters that should be taken into consideration before creating an account and depositing.
Account type
The decision of which type of account to open will most likely depend on the amount of capital you have to invest. Most brokerages offer two main account types: a "Mini" ($100-$200 minimum deposit) and a "standard" account ($1,000-$2,000 minimum deposit). Mini accounts are best suited to new or amateur traders looking to gain market experience and confidence with a smaller investment, and offer higher leverage, which you’ll need in order to make money with such a small amount of initial capital. "Standard" account holders can expect to enjoy a wider variety of leverage options, but will have to invest a greater sum of money for the privilege. Although not as commonly advertised, many brokers provide a premium service for large investors (perhaps $100,000 - $250,000+), including additional VIP services, such as a dedicated fund manager and tailor made conditions.
Common to nearly all online brokers is the offer of a demo account, which allows users to get a feel for the software and gain trading experience without the risk of market exposure. Such simulations are undoubtedly beneficial to potential clients wishing to test the waters, but caveat emptor: they are not always representative of real-market, real-platform conditions, despite claims of full functionality. Do not be afraid to question a brokerage on this matter - an honest, reliable broker will admit the downfalls of a demo account.
Software Considerations
The foreign currency market can move at a fast pace and will often require you to make quick decisions and executions, regardless of where you happen to be. Depending on your level and frequency of trading as well as travel habits, it may be wise to choose a brokerage that offers a web-based Java trading platform, which requires no download and enables you to trade from any location worldwide.
Payment Options
Look for brokers that allow you to pay with credit card, as this is the easiest option by far and does not involve the necessity of transferring funds from online e-account. Other payment options typically offered include wire transfer, which is equally as secure as credit card, but expect to wait a number of days for it to clear and to have access to your funds.
Support
Perhaps one of the most crucial considerations and one that may potentially have a significant effect on your trading success is the issue of customer support. Whether you are a first time forex amateur or a FX vet, having the support and advice of a reliable, dedicated customer service team is undoubtedly invaluable, so it would prudent to do your homework on this one. The only way to gauge the quality of a support team is to contact them and see how they deal with your inquiries: are they fast, do they give reliable technical and market advice; do you get the sense that they know the industry well enough to advise others, or are they simply good sales people? This might not be so easy to find out, but as the only point of contact between yourself and the brokerage, it is important to do so. As with any business, pre-sale service might be more satisfactory than post-sale, so again, try to judge whether or not you are being helped or simply pitched.
Platform, Tools & Analysis
In the present online market place it is rare to find a company which does not offer real-time tools such as charting and price updates, but predictably the quality and availability of such applications will vary from broker to broker. Ideally you should have access to a wide range of tools, enabling you to assess the market 24 hours a day, making your trading decisions accordingly, and in addition your broker should also provide you with daily market reports, prepared in-house by professional analysts. These reports should cover the basics: economic news relevant to the major currencies, technical movements and general commentary. The better known, more reputable analysts have their reports published on a number of the larger online forex portals and forums, which is an indication that their data is considered accurate and reliable, which in turn tells you a little more about the reliability of the brokerage itself.
As previously mentioned, many trading platforms offer the same basic functions, but not all brokers cover all areas of the forex market, so before committing make sure your chosen platform will let you trade the currency pairs you require.
Spreads
Spreads are an important factor to consider before investment and will certainly require some shopping around in order to find the best offer to suit your trading habits. The spread is the difference between the price at which currency can be bought and the price at which it can be sold at any given point in time. FX brokers don't charge "commissions", so this difference is how they make their money; therefore, the lower the spread, the lower the commission, and unlike stocks, currencies are not traded through a central exchange, so the spread may differ from broker to broker. Spreads differ according to account type, with mini accounts offering spreads between 1.5-2 times higher than those offered for Standard accounts, which in turn are higher than those offered to large volume traders with VIP status.
"Fixed" spreads remain the same day or night, and despite market conditions, and although they are usually somewhat wider than the narrowest of variable spreads, they can be safer over the long term by providing a slightly higher level of predictability and a slightly lower level of risk. "Variable" spreads change according to market conditions (which may initially be attractive during a calm period, but once the market becomes busy, they are likely to widen considerably, meaning that the market will then have to move significantly in your favor before a profit is turned).
Leverage
Unless you intend to invest a six-figure sum of capital, the use of leverage will be essential in order to make decent profits in forex. Generally speaking, the sum of money made during a successful trade amounts to just fractions of a single cent per unit, so if you are buying lots worth just a few thousand dollars or less, your profits will be minimal. This is where leverage comes into play: in effect by "borrowing" your broker's funds temporarily you will be able to make larger trades, which, if all goes according to plan, will lead to larger profits. Obviously, this practice involves an inherent risk: if the market takes a turn for the worse you risk losing a substantial sum of money, depending on the amount of leverage taken. For this reason it is advisable to do some further reading on leverage and margins prior to using leverage, so that you are fully informed before exposing yourself to the open market. Under normal market conditions, some common currency pairs are generally less volatile, and may warrant a higher level of risk taking, while more exotic currencies may not be predictable enough and traders would be advised to use less leverage when getting involved with such pairs. Mini accounts provide the highest levels of leverage, with some brokers offering up to x 400.
Education
While practicing on a demo account may help you improve somewhat and trading with real money might teach you some hard-learned lessons, the best way to improve your trading ability and provide yourself with a solid knowledge base is to educate yourself. To this effect, more and more online brokers are offering trading courses or tutorials, ranging from free five minute "introductions to forex" to curricula covering the smallest of details and costing thousands of dollars. Well established educational centers, such as the Online Trading Academy (OTA), with years of technical training experience are your best bet, providing solid instruction that will not only teach you the basics of the market, but also the technical side of the business (advanced technical analysis, charting, chart reading, Fibonacci calculations etc.). Some brokerages produce their own courses in conjunction with such trading centers, such as the course offered by Forexyard.com. Without educating oneself, the vast majority of built in market tools offered by trading platforms will be wasted on the amateur forex trader.
In summary, there are numerous factors to consider before choosing the right online forex broker, all of which should be researched to ensure that your trading account and broker will allow you to get the most from your investment. You must be aware that some brokers do not have your best interests at heart, but do not despair, as there are many reputable and reliable companies eager and capable of providing a professional service. As part of your research, be sure to visit the many online trader forums, where you can discuss any of the issues raised in this article with other traders, many of whom will already have been through the process of choosing a broker and will be able to advise you from their own experiences.
Account type
The decision of which type of account to open will most likely depend on the amount of capital you have to invest. Most brokerages offer two main account types: a "Mini" ($100-$200 minimum deposit) and a "standard" account ($1,000-$2,000 minimum deposit). Mini accounts are best suited to new or amateur traders looking to gain market experience and confidence with a smaller investment, and offer higher leverage, which you’ll need in order to make money with such a small amount of initial capital. "Standard" account holders can expect to enjoy a wider variety of leverage options, but will have to invest a greater sum of money for the privilege. Although not as commonly advertised, many brokers provide a premium service for large investors (perhaps $100,000 - $250,000+), including additional VIP services, such as a dedicated fund manager and tailor made conditions.
Common to nearly all online brokers is the offer of a demo account, which allows users to get a feel for the software and gain trading experience without the risk of market exposure. Such simulations are undoubtedly beneficial to potential clients wishing to test the waters, but caveat emptor: they are not always representative of real-market, real-platform conditions, despite claims of full functionality. Do not be afraid to question a brokerage on this matter - an honest, reliable broker will admit the downfalls of a demo account.
Software Considerations
The foreign currency market can move at a fast pace and will often require you to make quick decisions and executions, regardless of where you happen to be. Depending on your level and frequency of trading as well as travel habits, it may be wise to choose a brokerage that offers a web-based Java trading platform, which requires no download and enables you to trade from any location worldwide.
Payment Options
Look for brokers that allow you to pay with credit card, as this is the easiest option by far and does not involve the necessity of transferring funds from online e-account. Other payment options typically offered include wire transfer, which is equally as secure as credit card, but expect to wait a number of days for it to clear and to have access to your funds.
Support
Perhaps one of the most crucial considerations and one that may potentially have a significant effect on your trading success is the issue of customer support. Whether you are a first time forex amateur or a FX vet, having the support and advice of a reliable, dedicated customer service team is undoubtedly invaluable, so it would prudent to do your homework on this one. The only way to gauge the quality of a support team is to contact them and see how they deal with your inquiries: are they fast, do they give reliable technical and market advice; do you get the sense that they know the industry well enough to advise others, or are they simply good sales people? This might not be so easy to find out, but as the only point of contact between yourself and the brokerage, it is important to do so. As with any business, pre-sale service might be more satisfactory than post-sale, so again, try to judge whether or not you are being helped or simply pitched.
Platform, Tools & Analysis
In the present online market place it is rare to find a company which does not offer real-time tools such as charting and price updates, but predictably the quality and availability of such applications will vary from broker to broker. Ideally you should have access to a wide range of tools, enabling you to assess the market 24 hours a day, making your trading decisions accordingly, and in addition your broker should also provide you with daily market reports, prepared in-house by professional analysts. These reports should cover the basics: economic news relevant to the major currencies, technical movements and general commentary. The better known, more reputable analysts have their reports published on a number of the larger online forex portals and forums, which is an indication that their data is considered accurate and reliable, which in turn tells you a little more about the reliability of the brokerage itself.
As previously mentioned, many trading platforms offer the same basic functions, but not all brokers cover all areas of the forex market, so before committing make sure your chosen platform will let you trade the currency pairs you require.
Spreads
Spreads are an important factor to consider before investment and will certainly require some shopping around in order to find the best offer to suit your trading habits. The spread is the difference between the price at which currency can be bought and the price at which it can be sold at any given point in time. FX brokers don't charge "commissions", so this difference is how they make their money; therefore, the lower the spread, the lower the commission, and unlike stocks, currencies are not traded through a central exchange, so the spread may differ from broker to broker. Spreads differ according to account type, with mini accounts offering spreads between 1.5-2 times higher than those offered for Standard accounts, which in turn are higher than those offered to large volume traders with VIP status.
"Fixed" spreads remain the same day or night, and despite market conditions, and although they are usually somewhat wider than the narrowest of variable spreads, they can be safer over the long term by providing a slightly higher level of predictability and a slightly lower level of risk. "Variable" spreads change according to market conditions (which may initially be attractive during a calm period, but once the market becomes busy, they are likely to widen considerably, meaning that the market will then have to move significantly in your favor before a profit is turned).
Leverage
Unless you intend to invest a six-figure sum of capital, the use of leverage will be essential in order to make decent profits in forex. Generally speaking, the sum of money made during a successful trade amounts to just fractions of a single cent per unit, so if you are buying lots worth just a few thousand dollars or less, your profits will be minimal. This is where leverage comes into play: in effect by "borrowing" your broker's funds temporarily you will be able to make larger trades, which, if all goes according to plan, will lead to larger profits. Obviously, this practice involves an inherent risk: if the market takes a turn for the worse you risk losing a substantial sum of money, depending on the amount of leverage taken. For this reason it is advisable to do some further reading on leverage and margins prior to using leverage, so that you are fully informed before exposing yourself to the open market. Under normal market conditions, some common currency pairs are generally less volatile, and may warrant a higher level of risk taking, while more exotic currencies may not be predictable enough and traders would be advised to use less leverage when getting involved with such pairs. Mini accounts provide the highest levels of leverage, with some brokers offering up to x 400.
Education
While practicing on a demo account may help you improve somewhat and trading with real money might teach you some hard-learned lessons, the best way to improve your trading ability and provide yourself with a solid knowledge base is to educate yourself. To this effect, more and more online brokers are offering trading courses or tutorials, ranging from free five minute "introductions to forex" to curricula covering the smallest of details and costing thousands of dollars. Well established educational centers, such as the Online Trading Academy (OTA), with years of technical training experience are your best bet, providing solid instruction that will not only teach you the basics of the market, but also the technical side of the business (advanced technical analysis, charting, chart reading, Fibonacci calculations etc.). Some brokerages produce their own courses in conjunction with such trading centers, such as the course offered by Forexyard.com. Without educating oneself, the vast majority of built in market tools offered by trading platforms will be wasted on the amateur forex trader.
In summary, there are numerous factors to consider before choosing the right online forex broker, all of which should be researched to ensure that your trading account and broker will allow you to get the most from your investment. You must be aware that some brokers do not have your best interests at heart, but do not despair, as there are many reputable and reliable companies eager and capable of providing a professional service. As part of your research, be sure to visit the many online trader forums, where you can discuss any of the issues raised in this article with other traders, many of whom will already have been through the process of choosing a broker and will be able to advise you from their own experiences.
Tuesday, August 7, 2007
8 Tips To Improve Your Forex Trading By 100% Now
Most traders don't take a rational approach to trading and have unrealistic goals. A return of 200% on your account is possible but it is not possible every month, a return of 10-15% every month is more realistic and possible.
Here are 10 tips that will improve your trading by 100% and help you reach that level of consistence you are looking for.
1. Do not trade on anything lower than 4H charts.
If you are new to trading or loosing consistently you must follow this rule, it will keep your trading account alive and growing. The higher the time frame the easier it is to make money, you can easily grow your account by 10-15% each month only taking 2-4 trades a month.
2. Only take the A trades.
Be Patient, the markets will be around longer than you, plan your trades and wait for the perfect setups then pull the trigger with out hesitation.
3. Never risk more than 3% of you account.
No mater if your stop is 150 pips or 30 pips your risk should be exactly the same, most brokers allow micro lots (.10c) which make it easy to get the correct position size.
4. Keep your system very simple.
My core system's are very simple and and very profitable! You do not need to have 10 indicators pointing in the same direction to take a trade.
5. Back test your system.
Candle by candle back testing your system will give you great feeling of confidence in you trading.
6. Use price action.
Although there is nothing wrong with indicators try to keep them to a minimum, start learning how to read price action, it will reward you greatly.
7. Don't over trade.
This is the most common problem with traders, 95% of traders would be more profitable if they just took 1 trade a month and no more, this would force them to plan that trade with immense forethought and more often than not it would be profitable.
8. Cut your losses short and add to your winners.
This has been said time and time again, but how many of you actually do this? Your wins should be at least twice the size of you losses, preferably three times the size. Start trying to build on profitable positions instead of taking profit as soon as it appears.
If you are a newbie looking to get into the forex market or even a trader who just cant seem to stay consistently profitable. Following these rules will get you on the right track, stay with the higher time frames and you will find your trading more profitable and less stress.
Here are 10 tips that will improve your trading by 100% and help you reach that level of consistence you are looking for.
1. Do not trade on anything lower than 4H charts.
If you are new to trading or loosing consistently you must follow this rule, it will keep your trading account alive and growing. The higher the time frame the easier it is to make money, you can easily grow your account by 10-15% each month only taking 2-4 trades a month.
2. Only take the A trades.
Be Patient, the markets will be around longer than you, plan your trades and wait for the perfect setups then pull the trigger with out hesitation.
3. Never risk more than 3% of you account.
No mater if your stop is 150 pips or 30 pips your risk should be exactly the same, most brokers allow micro lots (.10c) which make it easy to get the correct position size.
4. Keep your system very simple.
My core system's are very simple and and very profitable! You do not need to have 10 indicators pointing in the same direction to take a trade.
5. Back test your system.
Candle by candle back testing your system will give you great feeling of confidence in you trading.
6. Use price action.
Although there is nothing wrong with indicators try to keep them to a minimum, start learning how to read price action, it will reward you greatly.
7. Don't over trade.
This is the most common problem with traders, 95% of traders would be more profitable if they just took 1 trade a month and no more, this would force them to plan that trade with immense forethought and more often than not it would be profitable.
8. Cut your losses short and add to your winners.
This has been said time and time again, but how many of you actually do this? Your wins should be at least twice the size of you losses, preferably three times the size. Start trying to build on profitable positions instead of taking profit as soon as it appears.
If you are a newbie looking to get into the forex market or even a trader who just cant seem to stay consistently profitable. Following these rules will get you on the right track, stay with the higher time frames and you will find your trading more profitable and less stress.
Simple Tips for Bigger Fx Profits
This article is all about using technical analysis the RIGHT way - and using Forex charts to make big consistent profits.
Here we are going to look at some proven ways of analyzing forex charts and some great indicators.
You can then use them to generate trading signals, to zero in on the low risk high profit opportunities all traders want.
1. Trend Lines
You need to start and learn to draw basic trend lines to spot opportunities, it may sound old fashioned but it’s the best way to spot trends.
2. Support and Resistance
The basis of most of the top trading systems.
Support and resistance is simply defined as levels where prices move to and then reverse.
In a rising market prices rise to resistance levels and fall while the exact opposite occurs in a bear market.
When prices break above or below significant support or resistance, a good trending move could be on the way - especially if the resistance or support is valid.
So how do you know if support or resistance is valid?
Look for lots tests - and look for how many different time periods tests have occurred in - by looking back at your Forex charts and also the distance in time between them.
3. Breakouts
If prices break through important support or resistance, then the odds are that the supply and demand position is changing and a new trend will develop.
Trading with breakouts, and trading in the direction of the break is profitable but most traders can’t do it.
Why?
Because most traders like to buy low and sell high.
They wait for a pullback to buy at a better price - and it doesn’t come and the move is missed.
Most major currency trends start from new market highs - NOT market lows.
To catch the trend you need to go with the break and forget about buying low, however not every breakout will work but how do you spot the ones that do?
You need to watch price changes in terms of momentum and volatility.
Volatility Changes
Volatility is a term used to describe the magnitude, or size, of day-to-day price fluctuations - regardless of their direction.
Generally, changes in volatility give clues to changes in price. A breakout that is accompanied by high volatility, is the ideal set up.
An indicator you should look at to determine volatility is the Bollinger band.
Bollinger bands can also help you identify support, resistance and targets for the move and are an essential indicator.
Price Momentum
Momentum is a general term used to describe the speed at which prices move over given time-periods. Momentum indicators can therefore determine the strength or weakness of a trend by looking at shifts in price momentum.
If price momentum increases on a break, then the odds are that the break will continue and a new trend will develop.
There are two good indicators for looking at changes in momentum:
The Stochastic and Relative Strength Index (RSI).
There is not enough room here to go into how they work simply see our other articles or look them up on the net, both give a highly visual picture of changes in price momentum and are easy to use.
Finally
If you can draw trend lines, spot breakouts and use volatility and momentum indicators that we have outlined above you could soon be on your way to making big consistent profits with your forex charts.
Here we are going to look at some proven ways of analyzing forex charts and some great indicators.
You can then use them to generate trading signals, to zero in on the low risk high profit opportunities all traders want.
1. Trend Lines
You need to start and learn to draw basic trend lines to spot opportunities, it may sound old fashioned but it’s the best way to spot trends.
2. Support and Resistance
The basis of most of the top trading systems.
Support and resistance is simply defined as levels where prices move to and then reverse.
In a rising market prices rise to resistance levels and fall while the exact opposite occurs in a bear market.
When prices break above or below significant support or resistance, a good trending move could be on the way - especially if the resistance or support is valid.
So how do you know if support or resistance is valid?
Look for lots tests - and look for how many different time periods tests have occurred in - by looking back at your Forex charts and also the distance in time between them.
3. Breakouts
If prices break through important support or resistance, then the odds are that the supply and demand position is changing and a new trend will develop.
Trading with breakouts, and trading in the direction of the break is profitable but most traders can’t do it.
Why?
Because most traders like to buy low and sell high.
They wait for a pullback to buy at a better price - and it doesn’t come and the move is missed.
Most major currency trends start from new market highs - NOT market lows.
To catch the trend you need to go with the break and forget about buying low, however not every breakout will work but how do you spot the ones that do?
You need to watch price changes in terms of momentum and volatility.
Volatility Changes
Volatility is a term used to describe the magnitude, or size, of day-to-day price fluctuations - regardless of their direction.
Generally, changes in volatility give clues to changes in price. A breakout that is accompanied by high volatility, is the ideal set up.
An indicator you should look at to determine volatility is the Bollinger band.
Bollinger bands can also help you identify support, resistance and targets for the move and are an essential indicator.
Price Momentum
Momentum is a general term used to describe the speed at which prices move over given time-periods. Momentum indicators can therefore determine the strength or weakness of a trend by looking at shifts in price momentum.
If price momentum increases on a break, then the odds are that the break will continue and a new trend will develop.
There are two good indicators for looking at changes in momentum:
The Stochastic and Relative Strength Index (RSI).
There is not enough room here to go into how they work simply see our other articles or look them up on the net, both give a highly visual picture of changes in price momentum and are easy to use.
Finally
If you can draw trend lines, spot breakouts and use volatility and momentum indicators that we have outlined above you could soon be on your way to making big consistent profits with your forex charts.
Forex Charts - Novice Trading Mistakes
Using Forex charts is like being a ships captain at sea: Your charts can help you navigate successfully to port or you can hit the rocks and drown - the choice is yours.
It’s the same with forex charts 95% of users drown – Let’s look at common errors that novice traders make and how to avoid them.
1. Predicting Price
No one can predict price movement and if you do - you are simply hoping levels will hold.
Do this and you will be wiped out quickly the market wont reward you for hoping or guessing.
If you want to win, act on the reality and that means - trading with price momentum AFTER a test of the level you are looking at.
Trade with momentum on your side and you are trading a fact and your odds of success are increased dramatically.
If you don’t use momentum indicators in your forex technical analysis learn what they are quickly.
2. Indicators Chosen and Misuse Of Them
A common error is to use lagging indicators to enter trades such as moving averages – This really leads on from the above: A
Always use momentum indicators to enter trades and only use lagging indicators to determine levels of support and resistance.
Many indicators traders use are useless good examples are:
Fibonacci levels and cycles - they again involve prediction and simply help wipe out equity.
3. Trading Invalid Data
Day traders are the worst offenders here. They are picking a short time frame where volatility is random they can’t calculate the odds - so they lose.
4. Systems that are to complicated
Some people devise very clever systems and lose.
Fact is - in forex trading you get your reward for being right – NOT Being clever.
Simple systems are best - as they are more robust and have fewer elements to break.
5. Not understanding volatility
Do you know what standard deviation of price is? If you don’t learn it backwards as this will help you determine everything from stop levels to targets for your trades and help you stay in winning trades longer and get better money management.
6. Your edge
Ask yourself this question:
What is your trading edge which will see you win when 95% of traders lose?
If you don’t know what it is – then find out or do more work on your forex trading strategy!
If you don’t know what your edge is kiss goodbye to your equity.
7. Following a method
Many traders have perfectly good methods but simply don’t have the discipline to follow them – if you dont have discipline you have no method in the first place.
If you want to enjoy currency trading success don’t make the mistakes above or you will lose.
Finally, there are a lot of vendors on the net promising you untold riches from their currency trading systems, for just a few hundred dollars – its not that easy so don’t buy them.
Trading is hard, but for the forex trader prepared to put in the work, the rewards can be immense.
Do your homework, be realistic and you could soon be making big returns from forex charts and executing some great trading signals for big profits.
Good luck!
It’s the same with forex charts 95% of users drown – Let’s look at common errors that novice traders make and how to avoid them.
1. Predicting Price
No one can predict price movement and if you do - you are simply hoping levels will hold.
Do this and you will be wiped out quickly the market wont reward you for hoping or guessing.
If you want to win, act on the reality and that means - trading with price momentum AFTER a test of the level you are looking at.
Trade with momentum on your side and you are trading a fact and your odds of success are increased dramatically.
If you don’t use momentum indicators in your forex technical analysis learn what they are quickly.
2. Indicators Chosen and Misuse Of Them
A common error is to use lagging indicators to enter trades such as moving averages – This really leads on from the above: A
Always use momentum indicators to enter trades and only use lagging indicators to determine levels of support and resistance.
Many indicators traders use are useless good examples are:
Fibonacci levels and cycles - they again involve prediction and simply help wipe out equity.
3. Trading Invalid Data
Day traders are the worst offenders here. They are picking a short time frame where volatility is random they can’t calculate the odds - so they lose.
4. Systems that are to complicated
Some people devise very clever systems and lose.
Fact is - in forex trading you get your reward for being right – NOT Being clever.
Simple systems are best - as they are more robust and have fewer elements to break.
5. Not understanding volatility
Do you know what standard deviation of price is? If you don’t learn it backwards as this will help you determine everything from stop levels to targets for your trades and help you stay in winning trades longer and get better money management.
6. Your edge
Ask yourself this question:
What is your trading edge which will see you win when 95% of traders lose?
If you don’t know what it is – then find out or do more work on your forex trading strategy!
If you don’t know what your edge is kiss goodbye to your equity.
7. Following a method
Many traders have perfectly good methods but simply don’t have the discipline to follow them – if you dont have discipline you have no method in the first place.
If you want to enjoy currency trading success don’t make the mistakes above or you will lose.
Finally, there are a lot of vendors on the net promising you untold riches from their currency trading systems, for just a few hundred dollars – its not that easy so don’t buy them.
Trading is hard, but for the forex trader prepared to put in the work, the rewards can be immense.
Do your homework, be realistic and you could soon be making big returns from forex charts and executing some great trading signals for big profits.
Good luck!
Amazing Diet Secret - Natural Appetite Suppressant
The worst thing that you can have while on a diet is sudden and profound hunger pains.
Here is an amazing diet secret, direct from the Aryu Veda.
The Aryu Veda is the oldest medical book in existence, written thousands of years ago in ancient India.
There are some foods, which eaten in combination will naturally suppress your appetite. The trick is so easy, and works so well, that you will wonder why everyone does not know it.
The Human Appestat
We all have a sort of switch in our brains that tell us to stop eating. Many obese people have defective switches (call the appestat).
Most of us have good working appestats, but our bodies still crave food, against our basic natures.
Eating Cycles
Many doctors and dieticians advise on eating smaller meals but more frequent that three times daily.
After eating only a small meal, and waiting for the chemical and physical reactions to hit the brain and activate the appestat, we stop feeling hungry.
If you are dieting or even not dieting, try the 5 small meals a day plan anyway. It's very good for your health and your stomach is not obliged to digest a massive meal. You will feel better for it.
Sudden Hunger Pains
We all have them, and when we do, we often reach for some convenience foods. This is the worst thing that can be done for a diet.
If you are hungry you must eat a fruit or something that will not add calories and fats to your diet. The obvious bad choice is chocolate candy. Nothing could be worse for a diet/
The Natural Appetite Suppressant
If you take a few (no more than 10) raw peanuts, and eat each one slowly, downing it with a few sips of hot coffee, you will have added only 30 calories to your diet, but you will see your hunger pains completely disappear for more than 3 hours. It works every time.
You must however wait 10 minutes after you finish before the hunger pains leave you.
Hunger pains, like most natural sensations come slowly and leave slowly, so don't expect an instant disappearance.
After you eat the nuts and drink the coffee, so something to entertain your mind and body.
Walk and window shop, or if you are in the office, do some stair climbing on the stairwell. Just pass your 10 minutes without thinking about food or how hungry you are (and soon to be 'were').
With your hunger gone, go about your business and if you are on the 5 meal a day plan, enjoy a small but tasty meal at your next opportunity
Here is an amazing diet secret, direct from the Aryu Veda.
The Aryu Veda is the oldest medical book in existence, written thousands of years ago in ancient India.
There are some foods, which eaten in combination will naturally suppress your appetite. The trick is so easy, and works so well, that you will wonder why everyone does not know it.
The Human Appestat
We all have a sort of switch in our brains that tell us to stop eating. Many obese people have defective switches (call the appestat).
Most of us have good working appestats, but our bodies still crave food, against our basic natures.
Eating Cycles
Many doctors and dieticians advise on eating smaller meals but more frequent that three times daily.
After eating only a small meal, and waiting for the chemical and physical reactions to hit the brain and activate the appestat, we stop feeling hungry.
If you are dieting or even not dieting, try the 5 small meals a day plan anyway. It's very good for your health and your stomach is not obliged to digest a massive meal. You will feel better for it.
Sudden Hunger Pains
We all have them, and when we do, we often reach for some convenience foods. This is the worst thing that can be done for a diet.
If you are hungry you must eat a fruit or something that will not add calories and fats to your diet. The obvious bad choice is chocolate candy. Nothing could be worse for a diet/
The Natural Appetite Suppressant
If you take a few (no more than 10) raw peanuts, and eat each one slowly, downing it with a few sips of hot coffee, you will have added only 30 calories to your diet, but you will see your hunger pains completely disappear for more than 3 hours. It works every time.
You must however wait 10 minutes after you finish before the hunger pains leave you.
Hunger pains, like most natural sensations come slowly and leave slowly, so don't expect an instant disappearance.
After you eat the nuts and drink the coffee, so something to entertain your mind and body.
Walk and window shop, or if you are in the office, do some stair climbing on the stairwell. Just pass your 10 minutes without thinking about food or how hungry you are (and soon to be 'were').
With your hunger gone, go about your business and if you are on the 5 meal a day plan, enjoy a small but tasty meal at your next opportunity
the Secret of Building Huge Profits Quickly
The secret of how to make big profits with online FOREX trading is staring traders in the face - but most traders don’t see it. The secret is ...
Ignore the usual advice you are given, on how to make money in online FOREX trading - and do the opposite!
Read each myth outlined below - which are touted as the great ways to make money on the FOREX – then, when you know what’s false, read the truth in the “Reality” that follows each myth.
Myth 1: Day Trading Makes you Money
No, it doesn’t - and it’s obvious why.
Daily movements are totally random - and by the time you throw in commission, and slippage, you’re guaranteed to lose money.
This myth is perpetrated by brokers, and vendors on commission kickbacks - that’s why it’s such a common myth. Remember you lose they win – period.
Reality - the way to make money in online FOREX trading is to follow the longer-term trend.
The big currency trends last for months, or years – so lock into them, and pile up huge profits.
Myth 2: You can Buy Success - by Following a Guru or Tip Sheet.
For just a few hundred dollars, you can learn systems that trade with 90% accuracy or more. – Yeah, right. If that’s the case, why don’t the vendors and gurus simply keep quite, and make money for themselves? Answer - because they can’t - it’s all sales hype.
Reality - if you want to make huge profits by FOREX trading, the reality is - no one can give you success - you need to take responsibility, and do it for yourself. All the great traders do this - and you must too.
Myth 3: There is a Safe Way to Trade Currencies
Most traders don’t like risk - they believe people that say that you can trade “safely”.
Traders try and follow scientific theories - and believe it when told, that they only need to risk a few hundred dollars, to make thousands.
Reality - online FOREX Trading involves risk - pure and simple. If you don’t want to take risks, put your money in the bank, and earn interest.
If you want to make money, be selective on the trades you make - and have confidence in your own judgement.
If you take calculated risks on trades with good odds, you will pile up huge profits.
Myth 4: Buy Out of the Money Options for Leverage
In FOREX trading, options give you unlimited profit potential with limited risk - so brokers tell you to buy out of the money, cheap options with little time value. These options give you greater leverage - and you can then make huge profits, when your option trades “in the money”
Reality - out of the money options, with large time decay, are cheap - because the odds of them trading in the money are small.
In FOREX trading, this is the same as backing the outsider in a horse race - of course, you can be lucky, but over time, you lose.
Buy in the money options, with lots of time value. You won’t make as much per trade, but you will make huge profits over time - and your odds of success are far better.
Myth 5: Timing the Entry to a Trade is Crucial
Many brokers and gurus say you need to be in, ahead of the move - and predict the market tops and bottoms. You will then get all the profit from the move.
Reality - trying to pick tops and bottoms is a mugs game - wait for confirmation, and then catch the trend as it gets underway. Sure, you’ll miss the absolute top and bottom, but no one can pick those anyway - so don’t even try. If you get even 70% of the big moves in FOREX trading you’ll make huge profits. Read articles on breakout systems, for more information on how to do this.
Step Away from the Crowd
As you can see, the way to make money in online FOREX trading is to step away from the 90% of traders who lose money - and join the elite 10%, who make the big profits from the big moves.
Ignore the conventional wisdom, and understand the reality - and get rich!
Ignore the usual advice you are given, on how to make money in online FOREX trading - and do the opposite!
Read each myth outlined below - which are touted as the great ways to make money on the FOREX – then, when you know what’s false, read the truth in the “Reality” that follows each myth.
Myth 1: Day Trading Makes you Money
No, it doesn’t - and it’s obvious why.
Daily movements are totally random - and by the time you throw in commission, and slippage, you’re guaranteed to lose money.
This myth is perpetrated by brokers, and vendors on commission kickbacks - that’s why it’s such a common myth. Remember you lose they win – period.
Reality - the way to make money in online FOREX trading is to follow the longer-term trend.
The big currency trends last for months, or years – so lock into them, and pile up huge profits.
Myth 2: You can Buy Success - by Following a Guru or Tip Sheet.
For just a few hundred dollars, you can learn systems that trade with 90% accuracy or more. – Yeah, right. If that’s the case, why don’t the vendors and gurus simply keep quite, and make money for themselves? Answer - because they can’t - it’s all sales hype.
Reality - if you want to make huge profits by FOREX trading, the reality is - no one can give you success - you need to take responsibility, and do it for yourself. All the great traders do this - and you must too.
Myth 3: There is a Safe Way to Trade Currencies
Most traders don’t like risk - they believe people that say that you can trade “safely”.
Traders try and follow scientific theories - and believe it when told, that they only need to risk a few hundred dollars, to make thousands.
Reality - online FOREX Trading involves risk - pure and simple. If you don’t want to take risks, put your money in the bank, and earn interest.
If you want to make money, be selective on the trades you make - and have confidence in your own judgement.
If you take calculated risks on trades with good odds, you will pile up huge profits.
Myth 4: Buy Out of the Money Options for Leverage
In FOREX trading, options give you unlimited profit potential with limited risk - so brokers tell you to buy out of the money, cheap options with little time value. These options give you greater leverage - and you can then make huge profits, when your option trades “in the money”
Reality - out of the money options, with large time decay, are cheap - because the odds of them trading in the money are small.
In FOREX trading, this is the same as backing the outsider in a horse race - of course, you can be lucky, but over time, you lose.
Buy in the money options, with lots of time value. You won’t make as much per trade, but you will make huge profits over time - and your odds of success are far better.
Myth 5: Timing the Entry to a Trade is Crucial
Many brokers and gurus say you need to be in, ahead of the move - and predict the market tops and bottoms. You will then get all the profit from the move.
Reality - trying to pick tops and bottoms is a mugs game - wait for confirmation, and then catch the trend as it gets underway. Sure, you’ll miss the absolute top and bottom, but no one can pick those anyway - so don’t even try. If you get even 70% of the big moves in FOREX trading you’ll make huge profits. Read articles on breakout systems, for more information on how to do this.
Step Away from the Crowd
As you can see, the way to make money in online FOREX trading is to step away from the 90% of traders who lose money - and join the elite 10%, who make the big profits from the big moves.
Ignore the conventional wisdom, and understand the reality - and get rich!
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