Author: Maya kadouf

They say a wise man learns from his mistakes. A wiser man learns from other people's mistakes. So what have I learnt in these few months of trading? I've learnt a few golden rules.

1. Patience. After losses after losses, you get patience pounded and drilled into your head. Until one day, you no longer feel that you've lost out if you didn't catch that big move.

2. Don't be greedy. It's so much easier trying to achieve a small target than a large one, e.g. taking profit at 20 pips rather than 150 pips. It is doable of course, to achieve large targets, different strategies call for different take profit points. But as a beginner, I feel it's much better to try to catch a small chunk each time. Firstly, even if it's a small chunk out of a big move, it's fine. Some people might have even lost on that same move by being rash. Secondly, if it was a reversal, you've already took profit. You've won while others lost. Thirdly, even when you do lose, it was a small stop-loss.

If you've seen 'The Secret', you would understand the Law of Attraction. They say good thoughts attracts good things, negative thoughts attract negative things. Even if you are constantly thinking about not letting something negative happen, that's exactly what will happen! Because you are thinking about it, you are therefore attracting it. It doesn't matter if you're thinking about something you want or do not want.

So with small targets to achieve, the win-loss ratio will definitely be better than when you try to achieve big targets. You feel good about yourself having so many wins and little small losses. You feel confident when you are trading, and are no longer concerned when a loss happens. You don't think about the losses, you are happy and thankful for the wins. Guess what, that's what you attract. Wins!

SLK Forex Journal

Article Tags: Broker, FOREX, Trading, Strategy, Trader, Currencies, Setup, Signal, Traders

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Author: Varon Sanornoi

For the people who are in financial market, I am pretty sure that no one never hard about Forex trading. It is one of the most financial investments that gain market share to total investment in the world. Many people are interested in this business because it requires almost nothing to do. Forex investment is basically about trading money between currencies. For example, if you plan to trade between USD and EUR, you will have to learn about exchange rate in order to get accurate different rate that could give you profit. However, the most difficult part seem to be the situation that you have to consider about the period that exchange rate can give you profit and many investors are also struggling with this.

According to this reason, some investors have realized that they should hire some one who come to manage their account. This is the fact that many of investors sometimes have money to invest but very lack of knowledge of this business. Therefore, it is likely for them to hire professional to take care and manage of their account. The most distinct benefit of having professional to manage your account is that the client do not have to worry about market situation and what to do with them, the whole process will be proposed by account manager and the client only make decision and they will take care the rest. Therefore, Forex money manager seems to be suitable for investors who do not have much time to keep an eye on every single moment financial market situation.

However, even though there are a lot of distinct benefits of having someone to take care of your money account, but to find an ideal one is much more difficult. You can find this kind of professionals from both offline and online resource. But today, it seems that there are millions of classified, freelance, or company's website who are offering account manager and financial report service, but may be still hard for the investor because they just lack of criteria how to choose professional to help them on this matter. As financial market condition is always changing, especially for Forex trading, it is obvious that no matter you are going to invest in short term or long term project, the profit that you will get from Forex trading will be not much different, because of the market situation which has direct impact to currency exchange rate.

So what to consider if you want someone to effectively manage your account?

According to the fact that, in point of view of investor, they just want to do what ever that can give them profits. Therefore, they may find that it does not necessary to hire professional from the company that has great reputation. Instead, you can find individual freelance who has great portfolio and ensure that he has experience to work and effectively advise according to the market situation. However, hire professional from the famous company may be another option but you may have to spend much more money if you want to hire professional from these companies.

Article Tags: Investment, FOREX, Money Manager

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By Kunal Vakil

What are Corporate Bonds?

A corporate bond is a bond issued by major corporations and can be divided into five major groups: industrials, transportations, utilities, banks and other finance companies, and finally international. Bonds issued from the industrial sector would include manufacturing, mining, and retail oriented companies. Transportation bonds would then be issued by airlines, trucking companies, and even railroads. Utilities would include companies which would fall into the following groups; water, electric, and telephone. International bonds would be issued by foreign entities such as foreign countries, municipalities, and agencies.

Event Risk

Corporate bonds are like no other in that they have an implied event risk. Takeovers, corporate restructuring, and even LBO's can have dramatic consequences to a bonds credit rating and even price. Unless you were acting on inside information, it was nearly impossible to predict these dramatic shifts in a company and therefore; corporate bond issuers were forced to provide additional bond features to remove some of the uncertainty associated with corporate bonds.

Event Risk Mitigation (Special Features)

Poison pill provisions, floating rate notes, and putable bonds are a few key features that were added to corporate bonds to ease the investors' mind.

Poison Pill Provision

The poison pill provision is probably the most important risk prevention measure that a corporation can make; it allows shareholders to buy the stock of the acquiring company or more of the same stock at a heavily discounted price, usually half of the market rate, during a takeover situation. The provision attempts to thwart would be takeover attempts by forcing the acquirer to negotiate terms with the board of directors on the terms of the takeover. If the board is amenable to the terms, they will recant the pill. If not, the pill could be triggered; and shareholders can exercise the option to purchase shares at a deep discount. This would have negative ramifications to the acquirer as it would dilute their interest in the company.

Floating Rate Notes

Floating rate notes (FRN) are corporate bonds that have a variable coupon structure to protect purchasers against interest rate risk. The coupon is reset usually every three months using a benchmark index as a basis; usually a short term treasury instrument or LIBOR. Sometimes, floaters will have a floor in place to provide that much more protection to the corporate bond holder against interest rate movements. The idea behind a floating rate note is to protect the bond holder against rate fluctuations and at the same time keeping the bond value close to par.

Putable Bonds

A corporate bondsporate with a putable feature allows the bond holder to return, or "tender", the bond back to the issuer at par before the bond's maturity date. This feature is designed to protect a bonds value against interest rate fluctuations. The intervals in which this put feature can be executed are specified in the bond indenture. Effectively, a corporate bond with a putable option turns the security into a shorter term instrument.

Putable bonds are not as great in interest rate environments that are shifting sharply; this is so due to the fact that the bond holder will need to wait for specific intervals in which they may tender the bond back to the issuer. Additionally, similar to its callable bond counterpart, the putable bond carries an option premium which will reduce your yield.

Credit Risk

Analyzing credit risk for corporate bonds is a little more complex than a more simple method in which municipal bonds are be evaluated. Corporate bonds have a tiered repayment structure, similar in concept to the one that a CMO has. Each bond issuer may have multiple issuances; each of these issues will receive different ratings from the credit agencies due to the fact that they have different repayment structures and conditions. For example, there may be a senior class of debt, and then a subordinated class of debt which is less senior. Obviously, the senior class will bear a higher credit rating.

Junk Bonds

The term "junk bonds" refers to high-yield corporate bond issuances which are classified as non-investment grade. They are speculative in nature and have very low credit ratings. Standard and Poors defines junk bonds as issues with a rating lower than BBB while Moody's classifies a bond as junk below Baa3. Typically, issuers of junk bonds have just gotten into deep financial issues and need to raise cash immediately; other times, issuers may be trying to re-emerge from bankruptcy. In either case, the corporate bonds credit quality is low and investors who purchase them are speculating on the future of the company. Junk bonds are typically purchased at tremendous discounts to par; many times you can get them for 10 to 20 cents on the dollar.

While junk bonds may seem to be a risky proposition; nearly 1 out of every 5 companies are rated in "junk" status. The market for these bonds has become more diversified; including some bigger names and more recently, public growth companies looking for financing. Junk bonds actually provide a portfolio with diversification since these companies typically are on their own page and doing their own thing regardless of what the general market is doing. Additionally, junk bond yields are quite a bit higher than their treasury equivalents. If you can spot the right investment, the compounding interest can be quite staggering over the life of the bond.

In a nutshell, if you plan on investing in junk bonds, you can expect a riskier investment with great returns if it works out. Be prepared to lose your money if the company does not work out as you thought; therefore, never throw a large portion of your portfolio into these investments.

Conclusion

The corporate bond market can offer very high yields but they come with a price; extra risk. We spoke about a few ways to mitigate that risk but also run your numbers and remember that treasury equivalents in term may have lower yields but offer different tax structures. Therefore, run your taxable equivalent yield formula and solve for tax exempt yield to see if the corporate bond provides you with the added risk premium when compared to a riskless treasury bond. When buying a corporate bond, be sure to ask the key questions: What is the credit rating? Is there a putable option? Is there a callable option embedded into the bond? How liquid is the bond? Is the corporate bond listed on an exchange (these will tend to have more liquidity)?

See You at the Top,

Kunal Vakil is the co-founder of mysmp.com (My Stock Market Power) which provides free trading articles to investors.

Please visit http://www.mysmp.com/ for more free articles.

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Author: Martin Lukac

Savings bonds are a type of Treasury security that earns interest for up to 30 years. They are only payable to the person to whom they are registered and can not be resold. You can cash them in after one year, but if you redeem it before five years you will pay a three month interest penalty.

There are two types of savings bonds issued by the government: the I-bond and the Series EE Patriot Bond. The I-bond is a savings bond that is inflation-indexed. Every May and November, the Treasury Department adjusts the inflation premium. The fixed rate of the bond that you purchased is fixed for the full term of the bond. The inflation premium is adjusted so that you do not lose the purchase power of your investment over time.

For example, you buy an I-bond in December. Your fixed rate was set in November and is your permanent rate. For six months, you will receive the inflation premium that was set in November. In June, you inflation premium is adjusted to whatever rate the Treasury establishes in May. Your fixed rate is not changed.

Each month your I-bond increases in value, and interest is compounded semiannually. The interest is compounded and paid at maturity. You can report the interest each year as it is accrued, or you can defer the payment of federal taxes until the bond is cashed. You decide when you pay the tax.

I-bonds that are used to pay for college tuition and fees are 100% exempt from federal taxes. The bond owner must pay for the higher education expenses at an eligible institution within the same year as the bonds are cashed.

Many financial institutions, including online institutions, will sell and redeem I-bonds. You may be able to purchase them through your employer's payroll savings plan. You can purchase them through financial institutions in eight denominations: $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000. If you buy them online through TreasuryDirect, a $25 denomination is also available.

You can purchase up to $30,000 in paper I-bonds each year. You can also purchase $30,000 in electric I-bonds in addition to your paper bonds.

Article Tags: Savings Bonds

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Author: Scott Johns

A lot of work and time is put into selecting the right stock to invest in but it can be quite difficult, and frankly nerve racking to decided when to sell a stock. This is especially true if youre a new investor and investing in Penny Stocks. Much money can be lost by pulling out at the wrong time or holding onto a stock longer than you should have.

Now logic would say that should probably sell the stock if it is about to drop in price and your broker, if you have one, may even say the same thing but this isnt always the best thing to do believe it or not.

The stock market can be a roller coaster as you may already know. Depending on the economy and many other factors stocks can make dramatic jumps and drops. So its not as easy as just planning to sell before a stock goes down or on its way down. There is a good chance that if a stock is on its way down that it will come right back up again.

One thing is for sure, you must stay on top of the news of any company you invest in. Big and even small changes in a company can dramatically change the share price of a stock. If a company announces great financial figures you can almost always expect a jump in share price. If the company changes CEOs then the price could go either up or down. A change in the stocks particular industry could have a big impact as well. There are many things that when combined can be analyzed to determine what direction a stock will go. It can be time consuming sometimes but it is well worth it.

There are several good times to sell a stock. For example, if you know a stock is realistically valued at $50 a share but it rises to $150 on hype and speculation then you probably want to go ahead and sell. If you have your hands on some news that is going to negatively impact share prices for the long term then this is another good time to sell.

If you are a beginner then it is probably a good idea to talk to a broker and learn more about the best times to sell. Each company and industry is different when it comes to making this sort of decision. Take your time and learn the ropes first. Youll be glad you did.

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Author: anna coulling

Learning how to pick the best stocks to buy can be a daunting process even for those who have been trading for some time, but this need not be the case. The first question we need to ask ourselves is “why are we buying” which is an obvious question but one which many traders and investors do not ask. For example a long term buy and hold investor would have a very different buying criteria to a short term day trader or an equity option writer, so before rushing in to buy our stocks, we need to have a very clear idea of our goals and objectives for the stocks we are proposing to buy. This article looks at the steps needed to select stocks for a long term buy and hold strategy for investment.

There are, of course, many "black box" solutions and get rich quick schemes claiming to give precise buy and sell signals. Whilst these systems may work some of the time, over longer periods they eventually fail, as the markets are essentially driven by factors other than statistical analysis of historic data. The fact that something has occurred in a particular way in the past, is no guarantee that it will behave that way in the future - it this were the case there would be many rich investors around the world!

From my own experience I have found over the years that the simpler the system for selecting stocks the better and the good news is that virtually all the information you need is now freely available on the internet. All that is required is some effort, hard work and lots of practice. The process I use to identify good stocks to buy is largely a technical approach, but also includes elements of fundamental analysis at the macro level. The process is fully explained on my site, but the principles are as follows.

The first step is to consider the economy of the country where you are investing, as some stocks and sectors perform better in recession than in expansion, and vice versa. For example, utility stocks generally perform well in early recession as the professional money is looking for guaranteed income streams. At the moment the gold price is rising as frightened investors look for a safe haven.

The first step is to look at the main indices to establish a longer term view from the charts. In the US this would be the Dow 30 and the S&P500. In the UK it would be the FTSE 100, 250 or 350.
The next stage is to establish the sectors which make up the indices and find the ones that are performing well, and those that are doing badly – clearly we want to find the best stocks in those sectors that are doing well and in a long term uptrend.

Now we start to look at the individual stock charts and at this stage the only technical indicators I use are volume, simple moving averages combined with support and resistance levels. Having identified some possible prospects the stocks are then placed on a watch list and monitored for a daily 2% increase in price.

How long they remain on the watch list will depend on the chart but, assuming an individual stock looks like a possible buy, there is still some more work to do. It is important to look up dividend and earnings dates as well as director dealings as these may give us clues or warning signals as to whether this is in fact the best time to buy.

Finally when placing the buy order we always have a stop loss in place in case the price trend suddenly reverses. Overall we are looking to have a balanced portfolio of stocks in a variety of sectors - we don't want all our eggs in one basket!!

The only software that I use for the above analysis is a simple end of day data charting package - this allows me to run the required filters (either by sector or by price movements) and to do all the analysis of support and resistance and moving averages that I require.

In essence the process starts with the macro and moves down to the micro in a series of stages, using both technical and fundamental data. Although not easy it is a simple process which I have used for many years with great success. For new traders I would also suggest practising either by paper trading or using a free online stock trading game, as it allows new traders to try out strategies, understand the various markets, learn how to place orders, and to become comfortable with all the terminology of stock trading.

To be a successful stock trader you need to know the best stocks to buy - success lies in the effort you put in at the start - I hope the above helps a little!

Article Tags: Online Stock Trading, Best Stocks To Buy, Stock Trading Online

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Author: Alexander Chong

We may not familiar with option but we are sure that most of us know what is stock and bond. Stock is an equity that representing a company value. By purchasing stock, you are actually buying the ownership of a public listed company, which means that you are one of the owners of the company. There are many purposes to purchase stocks. It can for long term investment, short term investment, really intending to own a company or speculation for very short term investment. No matter what is their purpose, usually, they will buy large amount of stock. Especially, for them who want to control the administration of a public listed company. This kind of investor will buy as many stocks as possible in order that they have a majority stock in their hand. In this kind of situation, he or she has the control power to the company administration and can do some modification to the processing and also the management of the company. By owning an amount of stock, you will be paid dividend if the company has declared it. Some company may not pay you any dividend depending to the company highest management decision. Some company may let you vote in their company election such electing a suitable CEO or MD. When you own a stock, you have the total control of this stock. You can sell it anytime if you think that you no longer intended to own it or you think that it is not worth to own it. You can also keep it for your whole life and use it as collateral to borrow money from bank or financial institution.

Bond is a debt that the bond issuer own you if you have bought the bond. When there is a project to carry out regardless it is a big or small project, if the people who intend to start the project do not have money, one of the sources for them to generate fund is by printing bond and selling it to public. By doing this, they can generate fund to carried out the project. This seem like the owner of the project borrows money from you and they give you the bond as evidence that they have borrowed money from you. By owning this bond, you will be paid interest and repaid all the money that you have lent to them at a specific date. Not anybody can print bond and sell it to public. People who want to do so have to apply to the government as a bond issuer. Usually, these people are from corporate agency, states, cities and federal government agency. As a bond holder, you have priority to have your money back compared to shareholder if the bond issuer goes broke. They will pay back the money for you as a bond holder before they pay to their shareholder.

Stock and bond have a tangible value that you can grasp and visualize. The ownership of a stock that you have purchased can last for a long time as long as you continue hold this stock and don’t sell it. The ownership of a stock can not be canceled unless the company goes broke (means that the company have declared bankruptcy). Bond usually has contract type repayment schedule and once they have paid back all the money that you have lent to them, the bond will end. The third type of investment does not give a whole life ownership and does not provide any tangible value. The validity of this investment has expiration date. Once the expiration date has over, the whole investment will become worthless. Apart from that, the value of this investment will decline when the time passes by. These are part of the features that options have. Due the lack of tangible value, worthlessness after expiration date and value declines due to the time has passed by; all these make options seem too risky to be invested for most of the people. However, there are still a lot of investors interested in option investment. Do you know why?

This is because not all methods that had been used in trading option are risky. What had been mentioned just now such as lack of tangible value, worthless after expiration date and option value declines after the time had passed by can work to our advantage. For an example, we can sell option that has a very short period of time to expiration date, which has a low possibility to become in the money option. Like this, when the time has passed by, option value that has declined will be our gain. There are limited strategies to trade stock but for option, there are a lot of strategies can be utilized. For stock, we either buy or sell stock. That’s all what we can do. But for option, we can combine a few positions together to form a synthetic position to earn money from the stock that move either up, down or side way. You will realize that options are very flexible after you have study more about it. You can use options in numerous situations and create numerous opportunities.

An option is a contract of agreement that allows you have a privilege in executing transaction involving 100 units of stock. This agreement only involves the option buyer and seller. This privilege includes a specific stock with a specific fixed price per share and also a specific date in the future for its validity. When we have bought a contract of option, we do not have any equity in the stock and any debt position. What we have is a contractual right to buy and sell 100 units of share at a fixed price within a fixed period of time. You will feel wondering why we need to purchase an option to gain the right since we can always buy or sell 100 units of share at the current market price. The answer is that option has fixed the stock price that you can buy or sell and this is the key to an option’s value. Stock price is unpredictable and this feature makes stock market investment interesting and also very risky. When we own an option, the stock price that we can sell and buy 100 units share is already frozen for as long as the option remains valid. Finally, the option’s value is determined by the comparison of the fixed price and the stock market current price.

Article Tags: Stock, Investment, Government, Fixed Price, Bond, Agreement, Ownership, Short Term, Share, Option, Expiration, Expiration Date, Tangible Value, Bond Issuer, Stock Price, Time Passed, Goes Broke, Specific Date, 100 Units Share, Sell 100 Units, Public Listed Company, Short Ter

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Author: Scott Johns

There are many benefits to investing in penny stocks. That statement is in stark contrast to many statements made by many so called investment authorities. That would have you think that penny stocks are something to be feared and avoided. Im here to dispel some myths and highlight the benefits while being honest about the risks.

Like I said before there are many befits to penny stocks but I will highlight just few here. These benefits include low share prices, potential for high gains, and providing great opportunities for small investors. Well start off by talking a little more about the share prices.

Penny stocks of course get their name because they are worth pennies on the dollar. The share prices can sometimes seems quite crazy. For example, a stock trading for $.0001 might seem silly to you. How in the world can a stock be trading that low and can it possibly go any lower? The answer to the latter is yes it can go lower believe it or not. However here is where one of the benefits come into play. You, the small time investor presumably, can buy a billion shares of a stock with those kind of share prices. Well if you have that many shares and the stock goes up in value even a little then WOW!

Well you can already see the potential for gains right. Its not uncommon for a penny stock to go up 50% or even 100% or more in a trading day. Its difficult to find these kinds of gains in typical stocks no matter what the industry is. Even if there were experience high gains you could not buy very many shares to benefit from the profits. Not only that but were talking about gains within a matter of hours instead of days or months. Thats a lot more exciting if thats what drives you.

Small time investors can find the stock market frustrating and even become envious of the investors with large amounts funds to invest. It is true that those with money make more money but you too can level the playing field with the right strategy. Penny stocks are risky but they do provide one of the few opportunities for small investors to great increase their current monetary situation.

In conclusion, yes all those consequences that people love to quote about penny stock investing can be true but obviously there are enough people investing in penny stocks for a reason otherwise they would not feel so compelled to warn people. So be aware of the consequences of unwise investing in penny stocks but also be aware of the great benefits if done correctly.

Article Tags: Finance, Investing, Penny Stocks

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Author: Kelly Price

There are many different forex trading strategies as there are many different ways of achieving forex trading success but if you are devising one for yourself there are some key elements the best forex trading strategies incorporate and that the subject of this article.

1. They are Simple

There is a big myth that science can help you trade and the buzz words are neural networks and artificial intelligence systems and other complicated trading systems. The problem is complex forex trading systems with to many inputs mean there are more elements to break and these systems fail in real time.

The base of your forex trading strategy should be a simple trading system that will be robust in the face of ever changing brutal market conditions.

2. Objectivity

The best forex trading strategies tend to be based around objective criteria and rules that are clear and do not have too much subjectivity. For example, a moving average cross over is an objective forex trading signal - Elliot wave and cycles are not and involve subjectivity.

By keeping your strategy objective rather than subjective, you will keep your emotions out and stay disciplined.

3. Trade Valid Data

If your forex trading strategy involves technical analysis and forex charting then you need to use valid data. Forex day trading systems don't work, as volatility in short time frames is random and prices can and do go anywhere. You need to get the odds on your side and that means trading longer term - swing trading or long term trend following.

4. Breakouts

Most of the top trading systems use breakout methodology, as it's a fact most major moves start from new market highs not market lows.

Traders who want to get in at a lower price miss these moves - breakout traders know that the odds favour a continuation of the move when a significant level of support and resistance has been penetrated.

5. Money Management

The best forex strategies know there is risk involved in any trade and manage not just the risk per trade but have their eye on the overall risk to the account and the risk of ruin. You need to take care of the losses first and if you have a sound robust currency trading system the profits will look after themselves.

6. Acting on Confirmation

Many forex trading strategies liked to try and base themselves on so called scientific theories of market movement but the fact is trading is a game of odds NOT certainties and this is obvious. If markets did move to a scientific theory we would all know the price in advance and there would be no market.

While this is obvious many traders like to trade far out theories like: Gann Fibonacci and Elliot wave. None of them are scientific by nature and all involve subjectivity from the user - this is a contradiction in terms of a scientific theory.

Predicting means you are hoping or guessing and that won't get you far in life and certainly not FX trading.

7. Realism

The best forex trading strategies have realistic aims in terms of profits and while many can make triple digit profits in short periods of time over the longer term the best do 30 - 50% compounded and if you had one that did similar you would quickly compound a lot of money and be very wealthy.

If you understand the above you will see that forex trading strategies that are successful tend to be simple, robust, objective and have strong money management linked to realistic goals. If you do the same in your forex trading strategy you can make a lot of money in global forex markets.

Article Tags: Forex Trading, Currency Trading, Fx Trading, Forex Trading System, Forex Trading Strategies For Profit

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Author: John Howard

Forex trading signals are communications sent by the firms involved in currency trading. They include forex trade brokers and independent analysts of the currency trading market. Communications are sent by these agencies to their subscribers with an intention make them aware of the changes in the market. The subscriber can positively use these signs to buy and sell currencies. These signs are also known as entry and exit signals among those who are involved in currency trading. They adopt different media such as computer, email, mobile or pager alerts to communicate these to the subscriber.

Before sending signals these analysts and brokers are expected to conduct an in depth research about the existing market conditions. It is only after arriving at a solid conclusion by himself that an analyst or a broker is to send an alert to the customer. They will normally be active only for a short period of time due to the highly fluctuating nature of currency trading.

A number of forex signal service providers are there in the currency trading market now. Majority of them are providing service only for a few popular currency pairs such as EUR/USD, GBP/USD, USD/CHF etc by charging a huge subscription from the subscribers of the signals.

The only positive aspect of subscribing for currency trading signals is that the subscriber will be to save his time by leaving the market analysing part to these indication providers. Most of the subscribers are using this service to substitute their ignorance of currency trading market.

Many still doubt the authenticity of the indications from various sign service providers. According to them a vast majority of these signal providers are not dependable for investing in the currency market.

A number of forex signal soft wares are also now available in the market to help the investors of currency market. They have now become an essential part of a currency trader's kit.

By using sign software a trader will be able to get the up-to-date alerts about currency market to make wise investments in currency. It will also help them to know the entry and exit value of the currencies through the indicator alerts.

The most attractive feature of this software is the real market time analysis from this software. An investor will get up to minute information from the currency trading market to make the investment in currencies a lot more profitable

Tags: Forex Trading Signal, FX Trading Signal, Foreign Exchange Trading Signal, Currency Trading Signal

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Author: Kelly Price

If you are new to forex trading the best way to get started is swing trading - its simple to learn requires very little discipline and can soon be making you huge profits. Let's look at currency swing trading in more detail.

The Objective

Is to capture moves which will typically last between a couple of days and around a week and will trade short term moves within support and resistance levels - normally from overbought or oversold levels.

Why It Does Not Require Much Discipline

Most traders fail because of lack of discipline. They can't run big profits and trend follow because it takes tremendous patience to wait for the right opportunities and great willpower to hold long term trends if open equity dips.

In forex swing trading, you get a lot of trades and you know if you are right or wrong quickly, it therefore is ideal for novice traders.

Building a Swing Trading System in 2 Simple Steps

If you are learning currency trading and a trading system regardless of time period you need to incorporate two facets into it

1. Support and resistance

You need to look and find areas of support and resistance where prices are likely to hold or break and then move to market timing to confirm the move on your forex chart.

2. Confirmation

If you simply try and swing trade into a level of support and resistance without some indication it will hold you are effectively hoping or guessing and you will lose.

Traders who predict on forex charts lose - it's as simple as that.

You need to act on confirmation and here you need to incorporate momentum oscillators into your forex technical analysis - if you don't know what they are, its time to learn. Good ones to start with are the stochastic, RSI, ADX and MACD. These are plotted on most good forex chart services and are visual ( you don't need to know the calculation) and you will soon be spotting the correct set ups.

They will allow you to check changes in price momentum and indicate whether support or resistance will hold or break. We have discussed these fully in our other articles so look them up.

Once you have confirmation you can execute your trading signal

A few other points you need to keep in mind when currency swing trading are:

Always take your profit early - before the next support or resistance level is hit as prices can soon turn around and wipe out your open profit.

Also you can trade breakouts - this is where levels of support or resistance break and prices go to new lows or highs. It's a fact that breakout trades offer some of the best risk to reward trades you are going to get and if you catch them you can enjoy currency trading success.

With stops place it straightaway as you enter the market and don't exit on a stop exit on a profit taking signal.

You can learn to swing trade and put together a robust simple swing trading system in a few weeks and soon be making some great FX profits.

Currency swing trading as we have said is - simple and easy to learn and can be very profitable, so try it and you will soon be getting some great trades and great profits.

Tags: Forex Trading, Swing Trading, Forex Swing Trading, Swing Trading System, Currency Swing Trading

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Author: Monica Hendrix

Anyone can learn currency exchange - but it's a fact that 95% of traders lose and this is simply down to the fact that traders believe currency trading myths or, simply get the wrong forex education. Let's look at learning currency exchange the right way.

1. Risk Goes With Reward

Risk goes with reward we all know that and the rewards in forex trading are potentially life changing, so don't believe its easy, its not - but currency trading success is achievable and anyone can be a successful trader.

Just keep in mind you must approach currency trading with a desire to succeed and a willingness to work smart and take responsibility.

2. Your on Your Own

If you want to learn from someone else and use their knowledge as a basis for your forex trading strategy that's fine - but do not follow someone blindly, or you will not have confidence in what you are doing.

Understanding what you are doing and having confidence in it, is the key to applying your forex trading strategy with discipline and this is the key to success.

If you do not apply your forex method with discipline, you don't have a system at all.

So learn from others but understand what you're doing.

3. Do not Fall for these currency trading myths

The rise of online forex trading has seen the rise of vendors who are out to make a quick buck, most of them are not traders and they are responsible for spreading several myths of which some of the most popular are outlined below:

- Day trading and scalping is a great way to win at forex
- You can predict forex prices in advance
- Buy low sell high is a way to make money
- A forex trading system sold with simulated track record will work
- Forex markets move to a scientific formula

The above are all myths and if you believe any of them you will lose

4. Work Smart Not Hard

You don't need to work hard; you need to work smart when learning currency exchange. You should only learn the information you need to succeed.

One of the best ways to start is to teach yourself forex technical analysis and how to use forex charts. This should only take you a week or so, you can then build your own robust trading system about 2 weeks - that's it.

Once you have your system, its 30 minutes or less a day to execute your trading signals.

Forget all the people who tell you to constantly study and learn - that may help you get a university degree but won't help you in the forex markets. You don't get paid for effort - you get paid for being right and that's it.

5. You Must Acquire This!

All successful forex traders have it and it's a trading edge.

A trading edge is the edge you have over other forex trader's i.e the 95% who lose at forex trading. It doesn't matter what it is - but you must understand it and have confidence in it to give you long term success.

If you don't know what your trading edge is - you need to get back to learning currency trading basics until you do.

6. Mindset

The real key when learning currency exchange is not so much getting a method but learning to apply it with discipline. Learning a currency trading system is easy; applying it with discipline is the hard part.

When you are in the middle of a series of losses, it takes great mental discipline to stay disciplined and not throw in the towel or vary your trading system.

You will understand this feeling better when you come to trade!

To be a successful currency trader you have a combination of learning the right knowledge, which gives you the confidence to apply it with discipline. If you want to learn currency exchange the right way, the above essay will point you in the right direction for long term FX trading success.

Tags: Forex Trading, Currency Trading, Learn Currency Trading, Learn Currency Exchange, Currency Trading Basic

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Author: James Woolley

If you talk to any forex trader, you will find that the vast majority of them use technical indicators to make their trading decisions. However this does not necessarily mean that you need be an expert in technical analysis in order to be a profitable forex trader. Far from it in fact.

There's no question that technical analysis can help you greatly in making trading decisions, and many forex traders would be hopelessly stuck without it, but it is still possible to make good profits without using any technical indicators at all.

For instance you could decide to take a longer-term view and use fundamental analysis to help you make your trading decisions. This way you don't need to be so precise about your entry points and you can sit back and watch your position unfold without having to be constantly watching the markets all day.

This type of trading requires you to be able to interpret the current economic climate and to some extent predict future developments, such as which way interest rates will move in future months.

A classic case of someone who was successful using this method is George Soros, who took a now infamous position on the British pound in 1992. He shorted the pound heavily shortly before the Bank of England withdrew the pound from the European Exchange Rate Mechanism and pocketed over $1bn. This was obviously based on economic factors rather than any fancy technical indicators such as an oversold RSI or MACD crossover.

So you can definitely make big profits from long-term fundamental analysis, but if you are more of a short-term trader then there are still profits to be made. For example, you could look to adopt a strategy based on trading the economic data releases.

This is quite difficult to do, and is not something I'm particularly good at, but it is definitely possible to make profits this way. Indeed I know a few traders who trade the news releases for a living. The major announcements can create wild swings in a currency's price so there are plenty of opportunities to trade these volatile movements in price.

Finally, if fundamental analysis and technical analysis aren't your thing, then you can always use the only meaningful indicator you really need - price. After all the price history tells you how the currency has behaved in the past, and if read correctly can be used to predict future movements as well.

Tags: Forex Trading, FOREX, Technical Analysis, Fundamental Analysis, Technical Indicators, Trade Forex

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