By: Vikram Kumar
There are a lot of things that you have to know about when you enter the industry of forex trading. One of these is forex signals, which is also called trade signals or forex exchange signals. When you are able to comprehend what these signals are all about, it will be easy for you to comprehend other forex details. Generally, trade signals are feeds of information which come from various trading sources. In the late 19th century towards the 60’s, these signals have been usually communicated by way of ticker gadgets which utilize a telegraph. This method is followed by the radio and telephone. Most of the sent data is comprised of price quotes for currencies or stocks for a given time period. The data is limited because of the limitations of their technology.

As technology keeps on advancing, computer networks have been incorporated with the tickers. With this development, there have been different types of data available for forex traders to study, analyze, and use. However, only the traders with enough capital have been able to gain access to these computer networks. But for the past years, small capital traders have been able to access information on trade signals. This is due to the lessened prices and greater accessibility of computer networks. This is paired with the high level of Internet technology for several years now. If you want to obtain forex signals from the most reputable companies, you can look them up through the directory of forex Listing.

Forex Listing is a one-stop website where you can find links to numerous providers and companies. These providers and companies can supply you with various information regarding matters within the forex market, with the inclusion of forex signals. When you avail of the services of a specific organization, you will be supplied with a trading system or model. Either of these is able to indicate the direction of the market trend. On the other hand, you will be provided with constant updates, live price quotes, and free or charged chart analysis. There are some companies which offer intra-day 24 –hour trend charts to its clients. These charts will be given for four primary currency pairs, such as the pairing of the Euro and the dollar. You can receive forex signals through your mobile phone or your pager. This is very convenient if you have other things to do besides wait for possible buy and sell signals.

Forex Listing has links to companies which offer more than forex signals. When you look up its directory, you will be able to search for central banks. These banks belong to categories like international economic organizations, major central banks, reserve banks within the United States, and world central banks. If you want to look for forex brokers, you can widen your search globally. Or else, you can limit it within your country or your continent. Forexlisting.com also provides analysis forecasts and charts. You can even find currency conversion tables and calculators from different providers. What is more, you will be able to avail of education or training if you want to know more about forex trading.

Forex Listing has links to companies which offer more than forex signals. There are a lot of things that you have to know about when you enter the industry of Forex trading .

Article Source: http://www.ArticleBiz.com

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By: Monica Hendrix

If you look online you will find lots of them all claiming you will make money but the fact is 99% of the systems sold don't make money and if you are thinking of buying one, then you need to read this article. Why don't they work? It's simple:

They have never been traded and normally carry this or similar - read and digest it:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Check the forex trading systems sold by vendors and you will see this and what use is it?

It's no use at all.

We can all make track records up if we know the closing prices but that's not the real world of forex trading.

I am amazed that people trust a trading system that has not been traded, when they would laugh at a person who tired to teach them to drive who hadn't past their driving test! It's the same concept - but people in forex markets tend to let greed blind them and then they let themselves fall for the advertising hype:

- Make a six figure regular income - I made $7,000 last week - 80% profits guaranteed - No Losing months

Yeah right - I have been trading for 25 years and forex trading is hard and you would expect it to be with the rewards on offer. You can win but you won't win buying a useless, back tested, curve fitted bit of software from a vendor who, has never walked the walk.

If You Want to Win - Do Your Homework!

You get nothing in life without effort and your forex trading strategy is the same, you need to work at it and put in some effort.

If the above mechanical trading systems made money, no one would bother to work; we would all spend a few hundred bucks and be rich.

Forex trading offers you a life changing income, the rewards you can make can be life changing - but it's a challenge and you must put in some effort to get a reward.

So go and get yourself some proper forex education, learn forex trading the right way and you can enjoy success it really is that simple.

Article Source: http://www.ArticleBiz.com

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Author: Paul Brown

The bottom line with any forex trading system is, does it work and will it give you monetary success? Finding the best forex trading system is usually the best way for a trader to learn how to use the Forex and achieve monetary success. If you only rely on experience and instinct, you may not likely succeed in forex trading. Therefore with an education in forex trading, you will be better equipped to handle the demands and the stress that comes along with the trade. While many of the systems on the market that claim to teach an effective forex trading system are very complicated, the best forex system should be commendably simple. It should be simple enough to both understand and use yet effective enough to produce results that would keep even the more experienced forex trader motivated. Hence, it should not be viewed as a system for beginners only.

The developers of the 5EMA Forex System explain that there are many advantages to trading in the forex market. Although there are many things to learn at first, with perseverance, forex trading can be rewarding to many. The forex trading market is the most volatile in the world and therefore can be a big risk. Some of the features of the 5EMA Forex System that make it enticing are usability, flexibility and versatility. We will discuss each of the features briefly to show you why this forex trading system is the ultimate forex trading system.

Why can you say that this accurate forex trading system has usability? As stated earlier, anyone can learn to gain maximum benefits or profits from forex trading, as long you are in the right frame-of-mind, and you learn to trust the best forex system trading tactics and techniques. This forex day trading system is easy to implement, as the complete user guide is worded with no technical jargon, and you can readily understand what is being relayed to you. The included software with templates is also user-friendly, and you will be able to easily manage with these as your forex trading tools. Also, this day forex signal system trading method is said to be flexible because it was developed and designed for the swing-trader or the day-trader.

It is safe to say that this forex trading system is versatile, because aside from catering to different types of forex traders, the system can also work well for persons who do not have the time to monitor trends all day. The 5EMA Forex System can also view long term signals to help the forex trader decide ahead, and to allow him to keep his normal job, while still being a forex trader in his part time.

With this forex trading system you can: know the classification of forex trading markets, find out who the big players are in this game, and how significant their moves can be, plus understand what the main concepts of the forex market are. Also, in sections of the trading system guide, you will learn the important prerequisites that you need to have before jumping in and starting to trade. You will also learn what types of methods and analytical tools that are used by professional forex traders, and how to apply these skills on your own.

Finally, this forex trading system is explained in detail, including, the rules of trading, screenshots and graphs of sample trends and how to interpret them. You will learn the terms commonly used by forex traders, as well as the main rules of forex trading. These are some of the reasons why this is one of the best forex trading systems online. And as the experienced forex traders have stressed, keeping the rules in mind will not only help you with your trading, but will allow you to reap maximum benefits in the long run.

Source: http://www.articlesbase.com/

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Tuesday, 01 April 2008 11:24:00 GMT

Written by John Rivera, Currency Analyst

German retail sales unexpectedly fell by 1.6% in February, against expectations of an increase of 0.5%.

Fundamental Headlines

• AUDUSD – After consecutive increases over the past two months the RBA left their benchmark interest rate unchanged at 7.25%, as was expected. Evidence is mounting that the Australian economy is cooling. Manufacturing growth slowed in March to 51.2 , as new orders fell to 51.9 from 54.9 the month prior. As the global economy slows speculation is increasing the RBA may have to reverse their policy and consider cutting rates in the near term. For more news and resources please visit our Australian Dollar Currency Room.
• USDJPY – Japan’s Tankan business confidence survey fell to a four year low of 11, as automobile and electronic exports are being pressured by a strong Yen and a U.S. slowdown. Companies also indicated the they planned to cut capital expenditures, which will weigh on future growth. Therefore, the BoJ may consider cutting their benchmark rate by the end of the year in an attempt to stave off a recession. For more news and resources please visit our Japanese Yen Currency Room.
• EURUSD – German retail sales unexpectedly fell by 1.6% in February, against expectations of an increase of 0.5%. Rising inflation is eroding consumer purchasing power and offsetting the strong labor market, which saw unemployment fall to a 15 ½ year low. Meanwhile, Eurozone manufacturing growth slowed to 52.0 from 52.3 the month prior as a strong Euro and slowing global economy weighed on demand for exports. Discuss the topic and your trade ideas in the EUR/USD Forum.

• UBS Seeks Fresh Capital, Expects $19 Billion in Write-downs (link) – Wall Street Journal
• Deutsche Bank Faces Write-downs of About $3.95 Billion (link) – Wall Street Journal
• Radical Action To Fight Credit Crisis Discussed (link) – Financial Times
• Euro Falls Most In Almost Two Weeks as UBS Reports Credit Loss (link) – Bloomberg
• German Unemployment Drops to Lowest in 15 ½ Years (link) – Bloomberg

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Wednesday, 02 April 2008 21:26:21 GMT

Written by Terri Belkas, Currency Analyst and Jamie Saettele, Technical Strategist

While the release of economic indicators, interest rate decisions, and comments by global central bankers tends to spark volatility in the forex markets, there is one phrase to describe the key driver of significant directional moves: risk trends. Indeed, in recent months, sentiment amongst traders has been prone to major periods of risk aversion and flight-to-safety as a credit crunch and financial instability spreads throughout the global markets. While these problems were ultimately triggered by the collapse of the US housing market, the impact of shifts in risk appetite in the forex markets has not been contained to just the US dollar.

In fact, the Japanese yen pairs have served as the best gauge of risk sentiment. With an interest rate of only 0.50 percent, the Japanese yen is sold off en masse during times of low volatility, and bought up quickly when equities fall sharply as traders seek to avoid the market’s riskiest assets.

While the Japanese yen has fallen lower over the past few weeks, the currency is still up almost 15 percent against the US dollar since early August 2007 while the Dow Jones Industrial Average has lost over 8 percent during the same period. As Currency Analyst John Kicklighter discussed in a special report recently, currencies can be used to time equity moves. So what’s next for the Japanese yen? Furthermore, what does that tell us about equities and more importantly, risk appetite in the markets?

Rocky Financial Markets and Dour Economic Data Doesn’t Bode Well for Risk Appetite

From a fundamental standpoint, the outlook for risk sentiment in the markets appears to be anything but bullish for the USD/JPY pair and the DJIA. First, the US credit markets remain tight, as DJ credit default swaps, credit card delinquencies, and mortgage delinquencies have all risen as Moody’s announced it had cut major bond insurer FGIC’s credit rating to a level just above junk. Rumors have been circulating that Fed strategists have been looking into the viability of nationalizing banks, as Norway, Sweden, and Finland did in the early 1990’s. (For more, see our most recent Watch What the Fed Watches report). Furthermore, outside of the US, Swiss-based UBS – the world’s largest money manager – disclosed the biggest write downs on securities debt of any bank to date.

Meanwhile, in his testimony to the Joint Economic Committee on Wednesday, Federal Reserve Chairman Ben Bernanke was bearish on the US economy in the first half of 2008, noting that growth may "contract slightly" as prospects abroad have "diminished somewhat" while domestic homebuilding activity would continue to drop in "coming quarters." Though there are substantial upside risks to price stability in the near-term, Bernanke noted that he expected inflation to moderate eventually, suggesting that the FOMC has been given the green light to continue cutting rates. While the FOMC is unlikely to cut as aggressively as they did in January (125bps) and March (75bps), fed fund futures are fully pricing in a 25bp reduction on April 30, which does not bode well for the US dollar, especially against the Japanese yen.

This is a chart that we have shown many times. It is the monthly chart of the USDJPY since the early 1970s. A picture perfect 5 wave decline appears to be unfolding from the 1971 high in the USDJPY. Wave 3 of the decline was extended and divides perfectly into 5 waves itself. Wave 2 was a sharp zigzag correction and wave 4 a triangle (a-b-c-d-e); which satisfies the guideline of alternation (if wave 2 is sharp, then wave 4 should be shallow and vice versa). If this pattern is correct, then wave 5 is underway now and would not be considered complete until the USDJPY drops below 81.12.



Obviously, we need to look shorter term in order to time the trade. The most recent leg of the decline is a 5 wave drop from 108.59. A 3 wave correction is underway now and will probably end near 104. 103.88 is where wave C of the corrective rally would equal wave A and the 61.8% of 108.59-95.72 is at 103.67. Both levels are in the vicinity of wave 4 of one less degree (it is common for corrections to end near the 4th wave of one less degree). In summary, resistance should be strong in the 103.70/104.00 area. The longer term bearish count remains on track as long as price is below 108.59.

The Dow and USDJPY have exhibited a high positive correlation over recent months and the current pattern in the Dow confirms what we are seeing in the USDJPY. Since the top at 14,198 in October, the Dow has traced out an impulsive decline, corrective advance, and impulsive decline. A second corrective advance is underway now and resistance is strong in the 12,860-12,960 zone. A rally to this level would complete a series of 1st and 2nd waves and give way to a 3rd of a 3rd wave decline. 12,860 is where wave Y would equal wave W (the rally from 11,640 is a complex correction and is labeled W-X-Y). 12,960 is the 61.8% of 13,777-11,640. Potential trendline resistance defends the 12,860-12,960 zone as well.






Written by Terri Belkas, Currency Analyst, and Jamie Saettele, Technical Strategist of Forex Capital Markets LLC, DailyFX.com

Source: http://www.dailyfx.com/

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Author: Vikram kuamr

Forex trading is all about currencies exchange from one person to another with a certain price. When investing in Forex, the game is about gaining profit through selling of currencies at higher price and buying currency at a lower price thus earning profit. So far, there are many investors involved in Forex trading as Forex has one of the biggest financial markets worldwide. With the availability of the internet, Forex has gained so much popularity as it provides accessibility to many investors in the convenience of time and place. Most investors planning to be involved in Forex trading is more involved in Forex Online trading.

One of the advantages of Forex trading is that you can access to it anytime and anywhere. This is made possible through Forex Online trading. As long as you have a laptop and have internet connection, you can do Forex online trading. This can be very beneficial especially that Forex trading does not have a day’s closure. You can access to the market at 24 hours a day – no pause, no offs.

When doing Forex online trading, you can trade foreign currencies in the convenience of time and place. But what you need most is a system that would help you strategize on prices to maximize profit. This way, you would need a Forex Trading system to guide you on the trade. This will also help you in developing strategies and making steps for you to be profitable in the Forex online trading. Without these strategies you will continue to see yourself fail in Forex online Trading.

There are many sites that offer Forex Trading systems. They usually provide valuable tools to be profitable in Forex trading. Supposed to be, the system will guide you for profitability in Forex trading, but most of the time, it doesn’t guarantee an overtime profit. There is a lot of decision making on your part to get the right results in Forex trading. As the common adage says, “Try and try until you succeed.” This is even true in using any Forex Trading Systems.

Forex Trading Systems have entry set-ups and indicators for pricing which you can accept or offer to get profit. There are no limits in the systems that you can use for profitability. As much as possible, you need to have basically as many Forex Trading Systems so that you can take advantage of the tools offered in every Forex Trading Systems available. The strategies and tools are generally available to help you make the right decision or make necessary entries and exits. So all combined strategies may help you make the right decisions. This is even true especially if you are a beginner in Forex trading. However, there is no guarantee of immediate results. Being profitable in Forex online trading takes the right Forex Trading systems, perseverance, mastery of the right strategies, and constant work.

You can start getting the system of Smart Forex Live for your Forex Trading systems. They offer a lot of Forex Trading products. The latest of which is the Forex killer, a Forex Trading system that provides tools for beginners to make it to the world of Forex traders. There are many more Foreign Trading systems but you can try this out first. All you need to do is make the right entries and analysis to get the right price.

Source: http://www.articlesbase.com/

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Author: Vikram kuamr

With advances in computer technology came the dawn of automated systems, allowing for artificial intelligence to replace human intelligence. The forex community has likewise been flooded with a variety of software intended to help traders do away with algorithmic calculations and financial estimations. Almost all forex software in the market promise that forex decisions can be made in less than half the time it took when manual forex systems were used, with the goal in mind that you earn twice more money at half the effort.

However, promises are claims until proven true. Although forex softwares are designed to reduce the onerous burden of sifting through an enormous amount of quantitative data, qualitative random factors (like politics and ideologies existing in the countries whose currencies are being traded) still need human analysis. Otherwise, every financial institution engaged in forex would have no need of its staff. So before buying into any forex software, read forex software reviews and forex trading software review, most of which you can access online.

Forex software reviews can help you decide on the best forex software you need. You might need specific software to do a specific job for you; remember that not all software can do all the jobs you need it to do. Otherwise, there would be no need for the development of a separate forex forecasting software, from forex charting software and from forex trading software. Forex software reviews can assist you in determining the most appropriate forex software primarily because they will describe the functions available therein. However, caution must be observed as online forex software review companies are thinly-veiled marketing arms. Likewise, a forex trading software review must be taken with a grain of salt. Forex trading softwares usually have common features that enable you real-time access to the forex trading market, up to the minute account statements, display of statistical charts and historical data, and trading orders, among others. If a forex trading software review claims additional features that you have not heard of, ask your colleagues about the features or try out the product yourself (use the free trial period, if available).

Smart Forex Live provides forex software reviews and a forex trading software review for a variety of forex software. These include the Forex Killer, the Forex Trading Machine, the 5EMAS Forex Trading System, the Profitable Trend Forex System Review, the Easy Forex Trading Platform, and the FX Instructor. The best thing about Smart Forex Live’s reviews is that it aims to be honest about the capacities and limitations of the software, to enable potential users to use their good judgment when making a full commitment to purchase. Unlike a marketing arm, Smart Forex Live will tell it as it is, including even asserting that forex success demands human motivation and drive, something that even the most perfect forex software cannot provide. And as Smart Forex Live does not directly provide any forex products, you know that they will truly test the product before putting out a review. You have the assurance that the review is impartial and objective.

Source: http://www.articlesbase.com/f

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USD/JPY May Be Set to Break Above 100 - Will Japanese Data Spark the Move?
Mar 22 06:19 GMT, by DailyFX
Business sentiment in Japan is likely to falter in Q1 as a stronger yen hurts exporters and a global credit crunch increases borrowing costs and damag...

What to Expect for the US Dollar
Mar 22 06:15 GMT, by DailyFX
Markets around the globe were closed for Good Friday which led to zero volatility in currencies. After a week of wild swings, the quiet trading gives...

Foreign Exchange Market Daily Update
Mar 21 16:38 GMT, by Union Bank of California
The US dollar edged higher against the yen and Swiss franc as investors hung on to gains from selling commodities and buying the US currency ahead of...

Forex Fundamental Outlook
Mar 21 16:36 GMT, by GCI Financial
Liquidity was thin on account of the start of the Easter holiday weekend and liquidity will also be reduced on Easter Monday. The Federal Reserve has...

Oil, Gold Have Plunged - Could the Australian and Canadian Dollars Fall Further?

Thursday, 20 March 2008 21:17:55 GMT
Commodities have enjoyed unprecedented gains over the past few months, as WTI crude oil futures hit an all-time high of $111.80/bbl while gold futures on the NYMEX surged to a record of $1,033.90/oz early in the week. However, commodity prices have plunged across the board in recent days, as traders liquidate profitable positions. The moves have made a huge impact on the forex markets, as the Australian dollar and Canadian dollars have tumbled over 4 percent this week, while the New Zealand dollar has given up over 3 percent. Will these massive declines continue?

Full Article

Euro Positioning Still Net Negative, But Growing Less Extreme

Thursday, 20 March 2008 16:37:49 GMT
By John Kicklighter, Currency Analyst

The long-standing net negative Speculative Sentiment reading from the EURUSD cooled from last week. This was complemented by underlying price action as the pair finally faltered in its steady rally from the February 8th swing low by retracing 500 points from the euro’s 1.59 high. The SSI now stands at -1.47 compared to -1.40 yesterday and 1.63 last Thursday.

Full Article

Dollar Advances Against Commodity Currencies as Oil, Gold Extend Declines The dollar traded at the highest level in at least three weeks against currencies of commodity- producing nations from Australia to Norway after prices of raw materials tumbled on speculation the global economy is slowing.

Indian Rupee Set to Rebound as India Weathers U.S. Slowdown, BOA Says India's rupee, Asia's second-worst performer this year, will rebound from a six-month low as domestic demand and trade with Asia and Europe will help the nation weather a U.S. recession, Bank of America Corp. said.

Canada's Dollar Falls to Two-Month Low as Prices of Commodities Decline Canada's currency declined to its lowest against the U.S. dollar in almost two months as commodity prices plunged for a second day, clouding prospects for the nation's economy.

Brazil Real Falls to One-Month Low as Global Slump Sparks Commodities Rout Brazil's real fell to a one-month low as a global economic slump drove down commodity prices for a second day, curbing the value of the country's exports of soybeans, sugar and coffee.

U.K. Pound Rises Against Euro as Retail Sales Beat Economists' Forecasts The pound rose the most against the euro in two months, paring a weekly decline, after a government report showed sales at U.K. stores unexpectedly grew last month, and as investors judged yesterday's drop was exaggerated.

Japanese Yen, South Korea's Won: Asia Local Currency Preview for March 21 The following events and economic reports may influence trading in Asian currencies today.

South Korea's Economic Growth Revised to 1.6% in Fourth Quarter on Exports South Korea's economy expanded a revised 1.6 percent in the fourth quarter as exports climbed and business investment picked up.

Japanese Companies to Boost Hiring by 9 Percent, Nikkei Survey Forecasts Japanese companies plan to hire 9 percent more graduates in the year that begins April 1, 2009, the sixth straight year of hiring increases, according to a survey by the Nikkei newspaper.

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Author: Monica Hendrix

Forex scalping is a short term method of day trading and forex scalpers are looking to take small profits regularly by timing moves on hourly charts. The idea is to only take small profits but get lots of them, to build profits over time and earn a big consistent income. There are lots of forex scalping systems for sale but how do you pick a winner?

The first thing you need to do, is look at the track record of the scalping system presented to you and check for a disclaimer. If you see the one below ( or one with a similar wording), you need to forget the system and look at others. Here it is read it carefully:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Basically, the above means the forex scalping system has not been traded and the vendor has simulated the track record in hindsight. A disclaimer like this, tells you nothing about the profitability of the system, as of course if we all knew tomorrow's price today, we would ALL be rich!

Making money in hindsight is easy, but we don't have that advantage in the real world.

Now you may be thinking well that's obvious enough - I Will just find a real time track record of forex scalping profits.

Get ready for a long search then! Why?

Well I have been searching for 25 years and not found a real time track record and the reason is:

Forex scalping doesn't work over the long term, because the logic it is based upon is fundamentally flawed.

The logic is, you can predict where prices will go in just a few hours - but of course you can't do this.

Volatility in short time frames is simply random.

Volatility can go anywhere in a few hours (and does) so, all that happens is stops get hit and you end up with lots of small losses. Because you are not running profits to cover them, you are simply destined to lose.

You can't win long term, as even if you are lucky - luck doesn't last forever!

Vendors know it's a good and appealing story - but that's all it is.

You never see a real time track record of gains and you have to wonder why a vendor if he really believes forex scalping works, doesn't have the track record to prove it.

Article Tags: FOREX, Day Trading, Forex Day Trading, Forex Scalping, Currency Day Trading, Forex Scalping System

Article Source: http://www.articlesbase.com/

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Author: Thomas Eliot

Are you able to remain calm and unemotional and to look objectively at the criteria at hand when you are trading the currency exchange markets? If not, you may wish to look into Avi Frister's Forex Trading Machine system to help take the human error factor out of your trading pattern. Frister, who has been successfully trading for more than ten years now, has designed a forex trading strategy that uses only one major factor in its trading algorithm: that of price and where the price is headed.

Actually, the name Frister chose for his strategy — Forex Trading Machine — is an apt description of the system itself, which is totally mechanical, meaning no interpretation, no confusion, no judgment, no tricks, and no vague chart formations. Combine that with principles which are easy to learn but extremely difficult to spot and interpret in real time, and you've got the essence of Frister's trading system.

In his 180+ page ebook, Avi Frister presents three different forex trading strategies based solely around a mechanical model of trading. The focus of his book is on strict entry and exit rules and looking only at Price Action. Since price is king in forex trading, you are more likely to be profitable trading currencies basing your buy and sell decisions on what price is doing rather than trying to interpret indicators which are mostly all lagging. This is not a system for the squeamish.

Of the three strategies for trading, the Cash Cow strategy is the most popular because it bases itself on the volatility of two major trading currencies: the U.S. Dollar and the Great Britain Pound. One reason why many like this trading strategy is because it only identifies three or four trading situations per month, which allows you the freedom to do other things besides looking at your computer screen all day.

If you have the time and enjoy day trading, then the Flip & Go strategy may be more to your liking. It shows you how to take advantage of a certain characteristic of the EUR/USD pair — the most liquid of all currency pairs. Large profit objectives and VERY small stop losses are the objectives of this trading strategy.

A mechanism that Avi created allows you to stay out of bad trades before you even know you are in a bad trade. Once 90% of traders realize the market has started moving in a certain direction, you will already be in the move and profiting from it. While most traders will struggle in choppy market days (and lose money in the process) Forex Flip & Go will keep you out of this pattern.

If there is one weakness in the strategies that Frister recommends, especially for those new to currency trading, it is in the non farm payroll strategy, which comes as a bonus with the program. Inexperienced traders would do well to gain some experience with this kind of trading opportunity before jumping in with both feet. If you know what you're doing, and what signs to look for, then this can be a profitable trade. But if you don't, the volatility inherent in such trades can dry up any profit you might have thought to have made.

To learn more about this forex trading system, you can read a further opinion at Review of the Forex Trading Machine

Article Tags: Forex Trading, Review, Forex Trading Strategy, Forex Trading Machine

Article Source: http://www.articlesbase.com/

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Author: F. Aldo

The first quarter of 2008 saw the United States Dollar lose about 12% of its value against the Japanese Yen. It also sunk to new lows against the Euro. While these facts may have profound implications for the movers and shakers of the world economies, what do they really mean for those just beginning to break into forex trading?

To make the above data more relevant to the beginner, this particular example can be applied--an American consumer with one dollar could buy 110 Yen worth of Japanese candies at the start of 2008. But towards the middle of March, the same one dollar could only buy about 96 Yen worth of Japanese candies.

This kind of volatility can have disastrous consequences in the real world, especially to an American importer of Japanese candies as the example above would suggest. On the other hand, forex traders, especially those with their ears firmly planted on the ground, could actually have cashed in big time on this kind of currency fluctuation.

During times like this, veteran forex traders might actually issue a caution to those just beginning to test the forex trading waters. The reason is simple--beginners might become too spoiled. They may think that making huge amounts of money is this easy.

The point is, these kinds of big fluctuations do not occur regularly. While the opportunity for big profits does arise when such fluctuations happen, beginners must keep in mind that forex trading itself is a system.

This is a basic concept that some people fail to understand. For beginners, you must first make up your mind and ask yourself two questions before entering--1) do you want to make this a long-term investment? or 2) do you want to make this a full-time career?

The difference between the two is basically that one is passive and the other is active. Either way, a beginner is advised to enroll in a good training course and shop around for a broker that can help you with your needs.

A good forex coach or broker will help you achieve the following:

1. Plan your strategies;


2. Develop discipline in order to carry out your strategies and make profitable trades;


3. Learn risk management;


4. Familiarize you with the software and trading platforms that best suit you;


5. Most importantly, they will make you understand that there are substantial opportunies for huge losses.

Monitoring your trades is one of the most fundamental and important aspects of trading. A good broker will allow you to do this online, anytime, anywhere. Even if a beginner may depend on their broker for advice or guidance, at the end of the day, it is still the trader who must have full control.

Investing in the right currencies at the right moment in a worldwide arena requires an investment in knowledge as well. Even for veterans, the learning process is non-stop. This fact makes it even more imperative for the beginners to know and understand their fundamentals.

If you want to be good in forex trading, then you must make sure that you are in good hands. There are numerous brokers online who can offer you plenty of opportunities to profit handsomely. Study them and choose wisely.

Article Tags: Forex Trading, Forex Brokers, Foreign Exchange Trading, Forex Coach, Foreign Currencies Trading

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Author: Kelly Price

Of course, you can buy one of the numerous mechanical trading systems advertised by vendors (all with simulated track records) or you can use this one - that's FREE and made users millions. How it works is outlined in this article and it's a great way to make forex profits.

This system is simple so simple in fact that you will have no problem understanding how and why it works - don't confuse the fact that it's simple with its profit making ability. Some of the world's top traders have used it and made a killing.

The system was developed back in the seventies, to trade commodity markets by a trading legend - Richard Donchian, who is considered the father of modern trend following.

It was originally devised to take advantage of the four week cycle in commodity markets that also exists in currency markets.

It's called the four week rule and here is the rule:

Liquidate short positions and open long position when a price exceeds the highs of the previous 4 calendar weeks. Liquidate long positions and open short position when a price falls below the lows of the previous 4 calendar weeks.

How simple is that?

VERY - but back test it and you will see it works well on trending markets and currencies trend well. Its problem emerges when markets don't trend, so add this filter:

Eenter positions on the 4 week rule and exit the position on a shorter time frame. Time frames that are frequently used are 1 or 2 weeks. You then simply re enter on the 4 week rule.

That's it!

It works try it - but most forex traders won't use it - Why?

Because it's to Simple

Traders dismiss it straight away - but trading legends such as Richard Dennis have used it so you should consider it - if it's good enough for one of the greatest traders of all time - then its good enough for you.

It's not trendy

Today we have neural networks, Fibonacci systems, artificial intelligence and there more trendy and buzzy than this simple system. Traders like to think they can beat the markets, with trendy systems - but they can't.

It's Not Fussy about Market Timing

True - it doesn't buy market tops or bottoms and most traders are obsessed with prediction and of course prediction doesn't work - it's another word for hoping or guessing. This forex mechanical trading system works on the reality of price change and trades the truth - most traders hate doing this, despite the fact it's the only way to make money.

It's Takes Discipline to Follow

Most traders lack discipline and when a forex trading system is so mechanical and so un fussy about timing they can't do it and throw in the towel.

This mechanical forex trading system works and is based on breakout methodology which is a proven way to make money - if you use it, you will find that you have a free system that will beat 99% of the junk systems sold on the net, with worthless simulated back tested track records.

If you use this forex mechanical trading system you will get a head start on your way to long term profits.

Article Tags: Forex Trading System, Currency Trading System, Best Trading System, Mechanical Forex Trading System

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Author: Nicholas Swezey

There are a few things you should be aware of when it comes to taxes for your investments. Note that many of these tips are specific to 2007 tax returns in the United States.

Taxed on Sells, Not Buys
The first thing to realize is that you are charged tax on the profits of your trades, which means the IRS does not care about your trade until you sell the shares.

Tax Forms from your Brokerage
Your brokerage should send you a 1099 tax form in January that lists all of your sales and dividends from the previous year. Two examples are "Form 1099-B Proceeds from Broker & Barter Exchange Transactions" and "Form 1099-DIV Dividends and Distributions." These forms will be needed to complete your tax return. Note that these forms may or may not include the purchase information for those trades. You are required to get that information from your brokerage records to fill out your tax return so the IRS will know how much profit you you made.

Short-Term vs. Long-Term Trades
If you kept your shares more than a year, they are considered "long-term capital gains" and you are rewarded with a lower tax rate of 15% in most cases. Otherwise, if you held the shares for less than a year the profits will be taxed the same as your regular wages. These are called "short-term capital gains."

Dividends and Interest
Many public companies distribute dividends or other forms of cash and shares to their shareholders when they have extra profits. You will be taxed on them of course. These are usually reported to you on the 1099-DIV form.

Wash Sales
What in the world is a wash sale? This IRS rule was created to try to reduce cheating on investment taxes. Let's say you buy 100 shares of Microsoft at $25 per share, then it drops to $20. You decide to sell it for a loss and then buy it right back at $20, hoping to get a tax deduction on the "loss" you just suffered. Well the IRS doesn't like this practice and they consider it a wash sale if you buy very similar stock within a month (before or after) of your sale for a loss. You aren't penalized for this wash sale, you just have to apply the loss to a future trade. Please read more about wash sales on the IRS website.

Listing All Sales
The tax forms usually ask for a detailed list of all stocks you sold in the previous year, including the company name, number of shares, gross proceeds, and the cost basis. The cost basis is used to determine how much profit you made when you sold the shares. It is the total amount you spent when you purchased the shares, including the commission. The "gross proceeds" is the total amount you received back when you sold the shares, after the commission and SEC fees were deducted.

However, if you bought and sold many stocks during the year it might be too time-consuming to enter in each one individually. An alternative is to combine all the sales into one line and call the company name "Various" and just add up all the numbers. This is a common practice. The IRS doesn't really care which shares you traded, just the total profit you made during the year. In any case, it can be a real time-saver to keep accurate records of all of your trades, perhaps in a spreadsheet.

Other Topics
This article is not a comprehensive list of all aspects of investment taxes, so please do more research if you have any questions. One special topic is "short-selling." If you did any short selling there are some special rules involved. Another topic is "professional traders," who get taxed differently. They can count some investment expenses as tax deductions, for example. The best thing to do is consult with a tax professional, especially if this is your first time to do taxes with investments.

Article Tags: Stocks, Taxes, Trading, Investments, Form 1099

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Author: Chris Viscaya

Stock Options are wonderful! This clever derivative of the equities market has to be one of the most ingenious inventions of modern times. For the trader who can learn how to win at trading options, there are many luxuries in life that can be experienced.

Success in options trading requires a consistent approach for long-term success. This statement is not meant to be some grandiose, idealistic comment made by some 'trading theorist'. Rather, it is a statement born out of the hard knock and success experiences of the author and many other long-term, successful trader contemporaries.

A "consistent approach" to options trading can also be called a "trading system", or an "options trading system" in this case. The term "trading system" is not necessarily confined to a series of computerized "black box" trading signals. A trading system could be something as simple as "buy an option on a stock in an uptrend that breaks the high of the previous bar after at least two days of pull back down movement that make lower lows." A trading system is simply an organized approach that takes advantage of a repeated pattern or event that brings net profits.

Since an Option is a "Derivative" of the stock you must derive your options trading system from a stock trading system. This means your trading system must be based around actual stock price movement. That said, your trading system doesn't need to work for all stocks it just has to work for certain types of stocks, certain volatility of stocks and certain price levels of stocks - So focus your trading system on certain stocks that have price behavior that is predictable to the net results you wish to abstract from a stock.

You can develop a trading system, a trading approach, and a trading methodology by identifying a price movement pattern (or lack of price movement pattern) or some event that occurs on some sort of regular basis. This means you can trade price behavior patterns on price charts such as: traditional chart patterns, trends, swings, pivot points, boxes - or you can trade events that motivate stock price such as earnings runs, post earnings runs, stock splits, or seasonal factors. Bottom line to make the maximum profit in options trading you want your stock to move in your favor fast and you want it to move far. Just a relatively small movement in the price of a stock can double your money in options!

There are so many different strategies and combinations that you can trade with options. You can buy calls and puts for directional trades. You can employ call spreads and put spreads to trade directional movements with a buffered risk, and profit. You can sell or purchase spreads to receive the credit of the premium decay by options expiration. You can trade straddles and strangles if you expect a big move but are not sure in which direction. You can also get into ratio back spreads, condors, and butterflies. And if you're really feeling crazy you can sell 'naked' options (just better use a stop loss or you'll end up like one of my old trading buddies who ran an account to $20 million then gave it all back selling naked options.) You can go to cboe.com for more information on options trading.

Directional options trading systems are the best. Keep it simple, buy calls for and upside trade or buy puts for a downside trade. But this means you need a directional stock trading system in order to trade directional options.

Here are a couple of different approaches for directional systems:

Develop an options trading systems that trades the swings in stock price movement. There are many good swing trading systems available today. We suggest you obtain one. Bottom line with swing trading is that you want to swing trade with the trend. Options brokers these days have advanced order technology that will allow you to enter swing trades based on the price movement of the stock so you don't have to watch this stock all day. That huge advancement to swing trading options.

Swing trade the day bars. Most swing trading systems are based on daily bars on the stock price chart.

Swing trade the Intra Day Bars! Their other fantastic systems based on intraday charts that pin point swing trading entries.

Develop an options trading system that trades three to six month trends. This is where the big money is. Trading the large trends is where many are able to place larger sums of money to develop their net worth.

Develop an options trading system that trades pivot points. Pivot point trading is arguably the best way to trade options, because price action usually is explosive, and happens quickly in our direction when a trade works.

This is good because you can use shorter-term options and leverage yourself a little better. And it's also nice you can make great gains in five days to four weeks on average so time decay issues become less of a worry.

There are many different directional trading methods you could use to trade options. You need to pick one, work it, and never use more than 10% options position size per trade on small accounts 1% to 5 % max position size on larger accounts. This methodical way of money management trading options is the fastest way to potentially rapid account growth, helping you avoid needless setbacks.

Article Tags: Stock Trading System, Stock Trading Newsletter, Stock Option Trading System, Options Trading System

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