What You Need to Know Before You Even Start Trading

Determine Your Risk Tolerance
Risk tolerance differs for every person. Your stock analyst and broker know this quite well and they will help you assess your risk tolerance, making sure that your investments do not surpass your risk tolerance.
Risk tolerance is determined by considering various factors, like how much money can you afford or allocate to invest, and what your long-term financial objectives are.
Let's take an example. Consider that you aim to retire in the next ten years and have no savings yet. In such a case, you have to have a large risk tolerance so that you can fulfill your aim of retiring.
In case you are twenty as of now and plan to start investing for your retirement, then you can do with a lower risk tolerance.
One simple thing has to be noted that how you feel or how much risk you feel in the investment is in no way related to your risk tolerance related to your long-term financial objectives.
For instance, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?
Now, having invested in stocks, if you observe that the stock prices are dropping a bit, what can you do?
You might sell out if you have a low risk tolerance or let your money ride and wait patiently for things to improve. This risk tolerance, though, is based on how you feel about your money and not on your financial objectives.
Any good stock analyst or an expert stock broker can easily help you figure out your investment risk tolerance, and they will guide you on investing correctly, as per your case.
To put it shortly, your risk tolerance has to relate with your long-term financial objectives and also with how you feel about investing your hard earned money.

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com

Forex Automatic - Forex Auto Pilot System vs Forex Easy Cash

Forex automatic is there such a thing? As an experienced currency trader this is a question I am often asked. There is a lot of suspicion surrounding automatic forex trading systems, more commonly known as forex robot's, and for good reason. There have been many attempts at creating a successful forex robot, but most have failed. In the past month there have been 2 new additions in terms of automatic forex trading systems: Forex AutoPilot System and Forex Easy Cash.
Over the past 6 months I have marvelled at all the new forex products coming online promising instant riches and so called 'new' forex tactics never been released before. The truth of the matter is quite simple however, if you want a forex automatic solution, all you need is a system that can identify and predict trends accurately and act upon them with precise timing. This is the core of successful currency trading and it is based on what is known as the Fibonacci formula.
There will always be risks involved in using an automatic forex trading system, and it is no different for these recent products Forex AutoPilot System and Forex Easy Cash. These products are so similar, and ultimately it will be a personal preference as to which interface will please a user. The fact that Forex AutoPilot Sytem runs on the Meta Trading platform is certainly a distinct advantage. Both systems allow for automated trading which can be experimented via a demo account so there is no need to risk any of your own capital.
Conclusion
Whichever forex automatic system you decided on ensure it comes with a money back guarantee. In terms of Forex AutoPilot and Forex Easy Cash the products are so similar it might be worth purchasing both and refunding the product which doesn't perform the way you want. Ideally user's should have a basic grounding of currency trading principles before considering an automatic forex trading system.

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Forex Trading: ADX Method Showing Results by John S. Houston

We are pioneering a method of trading the Forex using the Average Directional Index (ADX). We are beginning to see some results. Starting with an initial investment of $5,000 in early April we're up 60% to $8,000 thus far - just four trading sessions later. I detailed in an earlier article the basics of the ADX. It's a trend identification indicator...and it tells the strength of that trend as well. It's not science, not an art...more of a craft. There are some variables: which currency to trade, what hours of the day to trade, which timeframe to trade, which settings to use, where to set profit targets and so on. This approach does take a modicum of time and attention from the trader. It is not a set-and-forget system as the many purveyors of the latest and greatest Expert Advisor claim their system offers. I have yet to see an EA that does not eventually fail. It is far better to spend a few hours a days focusing on your trading than depend on a robot to handle the whole matter for you.

Of all the currencies, the Euro is the most liquid - although liquidity is hardly a problem in a market with a daily trading volume of nearly $4 trillion, according to the Bank of International Settlements. The London market accounts for roughly 36% of global currency trading, New York 16% and Tokyo about 6%. Another chunk is traded in derivatives such as futures contracts. Among the banks Deutsche Bank is the king with almost 22% of the market, then Swiss UBS with nearly 16%. In addition to these the top ten are rounded out by three British banks and five US banks.

The most active hours for the Euro are when the London and New York markets are both open. Normally London is five hours ahead of New York, and the European continent (France, Germany) is six hours ahead of NYC. However, Europe does not go onto and off of Daylight Savings Time at the exact same time that the US does...so there is a short period when the time difference between London and NYC is only four hours. In any event, you are safe to assume that from roughly 8 am eastern time to about noon eastern time (US) will be the period when the Euro is being traded in both London and New York...and hence see the most active trading. There have also been studies done to pinpoint what day of the week trends most often begin. We'll address this in a subsequent article.

For evidence of how this ADX trading methodology is working in practice...we invite you to visit our blog to see charts and data of trading results.

Foreign Exchange Basics: The Forex Market

This article on foreign exchange basics will discuss in detail the forex trading or foreign exchange market. There is a lot to learn about the forex market and you will to know how it works if you want to become an expert trader and not just another loser. You will come around so many terminologys for the forex market. Forex and FX are both abbreviations of foreign exchange. It can also be called currency market, currency trading market, foreign exchange market e.t.c. All of these terms refer to the same international market where money or currencies are traded or exchanged. The foreign exchanged market is not located in a particular place. Virtually all countries of the world is involved in currency trading therefore the possibility of trading currencies in most countries is high. There are so many reasons for the popularity of for

FOREX SECRECT EXPOSED

THIS WEBSITE IS MAJORLY FOR FOREX STARTERS, THOSE THAT ARE TRYING TO MAKE A LIVING FROM FOREX, HERE YOU WILL BE EXPOSE TO SOME SECRET TRADING SETUP THAT THE SO CALLED FOREX GURU USE TO MAKE 30% OF THERE CAPITAL EVERYDAY.BUT BEFORE I REVEAL THE SECRET YOU MUST MAKE A PLEDGE READ THIS LOAD AND PUT IT IN YOUR BRAIN,I CALL IT (YOUR MINDSET) NOW READ:-1) I Will See What Is On The Charts And Not What I want To See.
2) No Matter How Biased I am Towards A Direction, I Will Make Sure To Trade Only What My Eyes See And Not What My Feelings Tells Me.
3) I Will Not Get Revenge On The Market If I Lose On A Trade.
4) I Will Not Beat Myself Up If I Make A Losing Trade.
5) I Will Stick To Money Management Rules All The Time.
6) I Will Always Stick To My Trading Plan All The Time Either am Losing Or Am Gaining.
There are sections here to go through and I enjoyed you to read through all ,firstly lets start with the introduction, then to our main issue(TRADING SETUP).

I HAVE THREE SETUP THAT I WILL REVEAL HERE NOW PLEASE PICK ONE PRACTICE IT ON A DEMO ACCOUNT FOR SOMETIME,BUT I TELL YOU ALL ARE TESTED AND TRUSTED,BECAUSE I USE THEM ALSO. Have a nice ride

INTRODUCTION TO FOREX MARKET.
The foreign Exchange market, also referred to as the FOREX, or FX, market is financial market in the world, with a daily average turnover of US$1.9 trillion.
Foreign Exchange is the simultaneous buying of one currency and selling of another, currencies a traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). In general the exchange rate of a currency is are reflection of the condition of that country’s economy, compared to the other countries economies. The forex market is unique within the world market markets. It’s like a supermarket where the market is open 24-hours a day. At any time, somewhere around the world a financial center is open for business, and banks and other institutions exchange currencies every hour of the day and night with generally only minor gaps on the weekend.

MARKET HOURS
TOKYO OPEN 12.00AM----9.00AM
LONDON OPEN 8.00AM-----5.00PM
U.S OPEN 1.00PM---10.00PM

TRADING SESSIONS/AVERAGE PIP RANGE OF THE 4 MAJOR IN EACH SESSION


SPECIAL NOTICEBUSIEST/BEST DAYS TO TRADEWhen 2 session are overlapping,
The London session is the busiest out of all.
The middle of the week typically shows the most movement.

WORST TIME TO TRADEFridays
Sundays
Holidays
Don’t trade technical analysis during Newsevents

SIX STEPS TO SETTING UP A SYSTEM (GOLDEN RULES)1. Time frame-15min/5min charts
2. Find out which indicators that help in identifying new trend,(parabolic sar, moving average, Alligator).
3. Find out which indicator that help to confirm the trend,(ADX,MACD,RSI).
4. Define your risk level,(how much you are willing to loose in each trade).
5. Define Your Entries/Exits rules,(know when you will enter/exit a trade in order to get the most profit).some people like to enter the trade as soon as all their indicators
match up and give a good signal, even if the candle hasn’t closed. Others like to wait until the close of the candle before entering a trade.
6. Write down your system rules and follow them/keep a daily records of all your trade either lose or profit.


NOTE:-ALL THE TRADING SETUP THAT I EXPLAINED HERE ARE FOR INTRA TRADER ONLY(SHORT TIME TRADER) ENJOY………TRADING SETUP1.) THE FIRST TRADING SETUP IS VERY SIMPLE AND STRAIGHT FORWARD,IT’S CALLED MAS (MOVING AVERAGE SECRET).

YELLOW - 5min Exponential (Executor)
BLUE - 10min Exponential (Signal)
RED - 15min Linear (Trend)

ENTRY AND EXIT RULES:-
1. Buy when yellow crosses red from below upward
2. Sell when yellow crosses red from above downward
3. When yellow crosses blue it is a signal that there is going to be a reversal/change

2.) THIS SETUP IS ONE TRADE PER DAY WITH HIGHER PROFIT IF YOU CATCH THE TREND EARLY.
a.) Trade on daily chart
b) 5 EMA applied to the close
10 EMA applied to the close
c) Stochastic {10,3,3}
d) RSI{14}
e) Stop loss {30 pips}

ENTER LONG IF:-a) The 5 EMA must cross above the 10 EMA & both stochastic lines must head up (do not enter if the stochastic lines are already in the overbought territory).
b) The RSI must be greater than 50

ENTER SHORT IF:-a) The 5EMA crosses below the 10 EMA & both stochastic lines are heading down
(do not enter if the stochastic lines are already in the oversold territory
b) The RSI must be less than 50

EXIT RULES:-a) Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade
b) If RSI crosses back to 50

3.) THIS SETUP WORKS WELL ON EUR/GBP,NOT THAT IT WOUNT WORK ON OTHER PAIRS BECAUSE OF THE VOLATILITY
a) Open new EUR/GBP on bar chart and put in 1 minute.
b) After we need to apply the stochastic
c) Click stochastic it will bring a window, click inputs, it will show 3 parameters
K Period 5-change this 5 to 120,then click OK
D Period 3
Slowing 3
d) Open another stochastic window, click inputs
K Period 5-change this 5 to 15,then click OK
D Period 3
Slowing 3

ENTRY RULE FOR BUY:-a) stochastic 1 must be 85 or above.
a) stochastic 2 must be 40 or below

EXIT RULE FOR BUY:-a) stoploss is 35pips from entry price, Profit is 50pips OR
b) if stochastic 2 reaches 95 level.

ENTRY RULE FOR SELL:-a) stochastic 1 must be 10 or less
b) stochastic 2 must be 70 or more

EXIT RULE FOR SELL:-a) stop loss is 35pips from entry price, Profit is 50pips OR
b) if stochastic 2 reaches 5 level

Forex Trading Currency Online

Things You Should Know About Forex Trading
How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.
Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others.
Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.
Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don’t consider trading to be an easy task. But, is it harder to master any other endeavor? I don’t think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who never got to the top.
Now that we know it is not easy to achieve consistent profitable results, a must question would be, Why is it that some traders succeed while others fail to trade successfully in the Forex market? There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think different. That’s right, they don’t follow the crowd, they are an independent part of the crowd.
A few things that separate the top traders from the rest are:
Education : They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.
Forex trading system : Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success.
Price behavior : They have incorporated price behavior into their trading systems. They know price action has the last word.
Trading psychology : They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual trade has two probable outcomes, not just the winning side.
Money management : Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.
These are, among others, the most important factors that influence the success rate of Forex traders.
We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results?
It is different from trader to trader. For some, it could take a life time, and still don’t get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it’s not something you can do in a short period of time.
Online Forex Trading :easy-forex
Trading successfully is no easy task, it is a process and could take years to achieve the desired results. There are a few things though every trader should take in consideration that could accelerate the process : having a trading system, using money management, education, being aware of psychological issues, discipline to follow your trading system and your trading plan, and others.
by. forex-trading-currency

Structure Of The Forex Market

First what is Forex: The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.The Forex, or foreign currency exchange, is all about money. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.In the beginning countries would trade with each other using the barter system. If one nation needed lumber but had cattle, they would trade one product for another. This was pure trading. This type of economy has many limitations, but served mankind well for many centuries. However, nations quickly saw the benefit of having a system of exchange, and while some cultures used pretty rocks, or animal teeth, precious metals quickly became established methods of exchange. God and silver were the most popular. Initially gold and silver coins were used, and in fact the name of the British standard currency, the pound sterling, came from the Hasterling region where gold coins were made, and originally meant coins of the Hasterling’s. Up until World War I most nations had central banks that supported the value of their currencies and most used gold as the standard. Paper money was printed and it legally could be exchanged for gold but this did not often happen. Since it was rarely converted, some banks and some nations believed they no longer needed to keep reserves of gold in their vaults, as the US once did with Fort Knox. Inflation then occurred.Near the end of World War II a conference known as Bretton woods had many nations reach an agreement on a reserve currency system based on the US dollar. The World Bank and other organizations agreed, and a fixed exchange rate system was reached. The value of the dollar was fixed on a certain amount of gold, and other currencies were fixed on value to the dollar. Currency trading after this however has evolved and currencies have grown in value, and gone down in value, leading to fluctuation.Today traders take advantage of the fluctuation in value among currencies through the forex or foreign currency markets. It is quite common to see a trader who suspects that the value of the Euro will go up against the yen or the dollar and follow the old axiom of “buy low and sell high.” On of the ways this is done is through margin trading. With margin trading a trader doesn’t have to have all the money in an account that is being traded. If a trader has 10,000 and works with a one percent margin, he is able to trade $100,000 in currency. This adds great leverage to the trade and makes forex trading very attractive to many who are looking for a large and quick return on their investments. Forex traders are also attracted to the low costs associated with trading since most trades are without commission. The fact that there is a 24 hour trading cycle is also attractive to many. Traders have opportunities for large profit, but they also have risk inherent. An aggressive trader may experience profit and loss swings of up to 30% in a day. This can be 30% to the good, or to the bad, so forex trading requires education and courage as well as capital. However there are no daily limits and no restrictions on trading hours other than the weekend when markets are closed. For this reason there are always opportunities. Money will always be made.Some nations in the past have complained about hedge funds and other large institutions involved in forex trading, saying that they have intentionally devalued their currencies to make quick profits. George Soros, the famous billionaire who is involved in politics, has been accused of this practice by the government of Indonesia. Whether it is true or not, and if true whether it should or should not be done is not for this article. However, when institutions control such large amounts of money, the chance of manipulation does exist. As long as foreign currency is traded, there will be such accusations. However, the forex market remains a way to achieve substantial financial gain.There is a wealth of opportunity in the Forex Market. Millions will be made by millions but of course the contrary is also true unfortunetaly. Always be cautious and do not mortgage the farm...

Foreign Exchange Trading Intermarket Analysis

How Stock and Commodity Market Prices Affect Exchange Rates

In our global financial system all of the major world financial markets are interconnected, yet the most popular form of forex market analysis, technical analysis, concentrates only on one market at a time. Most traders that implement technical analysis-based trading strategies may use tools such as candlestick formations or moving averages, but they will only focus on one chart or one market at a time.
Technical analysis can still be very useful to a forex trader. After all, the vast majority of all daily forex trading volume is speculative in nature, and all of those masses of traders working at their computers are likely following the same handful of indicators and oscillators, as well as focusing on the same levels of support and resistance. If enough traders are following a 14-day Relative Strength Index indicator then making successful trades based on that indicator becomes self-fulfilling in nature.
In fact, it is possible for you to completely ignore all other financial markets and only focus on one currency pair's chart, and you could still have a profitable trading strategy. However, the stock and commodity markets (with oil and precious metals playing a large role) of a given country will inevitably affect the value of that country's currency, so it would be wise for any astute currency trader to stay aware of the goings-on of other related financial markets.
An interesting development that comes with the widespread proliferation of forex trading is that there is a relative lack of intermarket analysis compared to most stock or equity markets. If you have even a brief knowledge of stock-picking strategies, then you should be familiar with the concept of diversification (spreading your stock picks across different sectors) as well as using a general index of stocks to rank a specific sector's performance.
This is a good example of intermarket analysis, as these equities traders compare stocks across different sectors, small cap versus large cap stocks, and global stock prices versus domestic stock prices. Most commodities traders commonly practice intermarket analysis as well, by comparing related commodities such as silver versus platinum or soybeans versus corn.
There is not nearly as much intermarket analysis in currency trading on the surface as there may be for other markets, but geopolitical events and the prices of other markets all go into the factoring of exchange rates. A wise forex trader seeks to be as informed as possible, and this includes knowing of all other developments, whether it is interest rates or new stock market highs, that can affect a given currency's exchange rate.
A good way that you can begin to implement intermarket analysis into your forex trading is to stay abreast of the values of certain commodities that affect the value of currencies the most, namely oil and precious metals. There are many different precious metals markets, so if you do not want to spend all day doing your price checks then you can focus on just silver and gold (or even just gold alone if you are feeling lazy, since it is the quintessential precious metal).
Another good way a forex trader will use this type of analysis is to focus on the main stock index for a given country (such as the S&P 500 in the United States). If you watch Bloomberg or CNBC while you are doing your currency trading and you hear that a major stock index for a geographical region is hitting all-time highs, it would be a wise bet that the value of the currency involved will also increase.

Market Analysis

Market analysis is an integral part of placing profitable trades, and the two basic forms of market analysis are technical and fundamental. Which of these two will work best for you? Well that depends on your personality, your tolerance for risk, your level of experience, the way in which you learn the best, and how comfortable you are with trading in general.
Technical analysis has to do with looking at the raw numbers of price data and forex charts to make a decision about where the market is and where it is going. There are many people that like to trade forex using a purely technical strategy, and technical analysis is especially favored by people who are into software programming because they can use it to create automated trading straegies.
Fundamental analysis is much further removed from price charts and has more to do with placing trades based on government policies, interest rates, and economic conditions and indicators. This is the method of choice for people who enjoy the thrill of day trading, and for those who have been trading the currency market long enough that they have honed a particular strategy for making money consistently and have no problems taking their emotions out of the equation.
The best advice for choosing which form of market analysis you will work with is to know yourself, what you are good at and where you might be lacking when it comes to your trading. If you find that you have trouble deciding when to exit the market, then technical analysis might be your method of choice because it comes with predefined exit parameters. If you have no problem exiting the market and feel comfortable locking in a certain number of pips on each trade (say 20), then fundamental analysis might be your best bet because this focus the most on when to get in, and when to get out will be determined by your own developed intuitive market sense.

Define Forex Trading?

Forex trading

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.

When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.