Tuesday, March 24, 2009

Lifestyle Of Traders

Trading can be a very active lifestyle. Whereas day traders spend hours every day in front of a computer monitor scalping small movements in price, the active trader does have a "rich" lifestyle both in money and time.

Lifestyle Depends Upon Trading Style

Professional traders usually make their income from scalping short tick charts, day trading from open to close, or swing trading over a matter of days or weeks. The trading style differs with the lifestyle. Scalpers can profit heavily in just a few hours to have the rest of the day to relax and read up on the markets. Day traders benefit from taking positions when they want through the course of the week, often taking full days off at a time. A swing trader has the luxury of placing few trades every few weeks, allowing for plenty of down time.

Improving Your Trading Skills During Your Down Time

Many traders use their down time to participate in trading seminars to meet new people in the financial world. Trading for the big firms is all about whom you know, and indeed, getting involved in the trading community is the only way to work your way to the top of the trading world. For the smaller investor, time may be better spent on an online home study course to further their trading potential.

Skill-building activities, such as looking at old charts, reviewing failed trades, or sharpening your trend line drawing skills, are a great way to spend the surplus of time trading provides. Developing a trading plan planner is another good way to spend the extra time, as a complete trading plan will give you the confidence to trade, even when the market goes against you.

Trading isn't just about investing in the markets, but also in your own ability to trade. Locking in consistent profits means more time off and more time to review your trading plan. Bettering yourself at your own job means less time studying and more time off, while bringing in consistent profits.

Earning a Relaxed Lifestyle

To the person on the outside, the financial district appears to be "stressed out" people huddled around computer monitors for the bulk of the day. For many people on the inside, trading provides a profitable career and a relaxed atmosphere. For the home trader, a job as a day trader provides a luxurious income and the chance to be your own boss. The ability to take off work whenever you want easily trumps the consistency of a 9-5.

About the Author:
Leroy Rushing is an active, professional day trader trading coach and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading.

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Friday, March 13, 2009

Day Trading - What is It?

Day trading is basically the buying and selling of stocks over a relatively short period of time, sometimes minutes. It was once only available to floor traders and investment banks but now the Internet has made day trading accessible to anyone with a computer system. There is good money to be made (and lost) using this method.

As an example, a day trader might buy 1000 shares of stock A at 10:00 as the price begins to move upwards on good news, then sell it at 10:04 when the stock price has risen (for example, by $0.50). The day trader would make $500 profit, less his commission which with today's low commission rates of around $30 or less per trade, that's a nice $440 or better, excluding taxes.

Day trading usually follows one of two approaches, either beating the spread or attempting to catch short term trends. The spread is the difference between what is being offered for a stock (the bid) and the price being asked for the stock (the ask). With spread trading, you attempt to buy at the 'bid' and sell at the 'ask' as many times as possible. Spread traders can make hundreds of this type of trade every day.

ECNs or Electronic Communication Networks are a recent development. They are completely electronic exchanges with very low commissions and very fast execution of orders. As a method of encouraging traders to use their networks, some ECNs offer incentives in the form of a rebate. In some cases, this can allow a day trader to make money simply from buying and selling a stock at the same price.

Day trading can be very profitable if you get it right, but you need to research as much as possible and take advantage of the free simulation software that is available for you to practice with before you take the plunge. Remember, day trading isn't for the faint hearted!

To find out more about day trading software, take a look at my Day Trading Blog

Practice before you dive in with free simulation software at my Day Trading Blog

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Wednesday, March 11, 2009

Currency Trading Profit Tips

I'm here to share with you some of my currency trading profit tips. These should help you make more profitable trades that will yield long term success in this business. These need to be applied on a daily basis because that is how you build the routines that make you successful.

Profit Margins

When you first get into this business, it seems to be that most people want to make small trades for small profits to learn how to do this. That is a good thing to do, but there is something you need to understand and that is your broker is getting paid. When your profits are a slim margin and your broker is taking a slim margin, that means your broker ends up taking a significant portion of your profit. It also means that they add to your loss too. If you look at the overall cash, you might find yourself down, even if you're doing good trading that would show a profit if you had better margins.

What is margin trading?

Margin trading is the ability to leverage your money with the brokers and make larger trades. This means you deposit like $100, and your broker will let you trade $10,000. As long as you're making profits, your broker is happy. IF you make losses, your broker will cut you off as soon as you get close to your original deposit of $100.

Forex Killer

Forex Killer is the most sophisticated piece of forex trading software on the market. It has a trend finding system in it, so you'll know exactly when to buy and when to sell.

The automated software of Forex Killer will give you an immediate edge in the market. Make trades that work for your profit line. For more information on the Forex Killer software, check out Forex Charting Software.

The Freddie Mac headquarters in McLean, Virginia. Freddie Mac, the ailing US mortgage finance giant seized by the government, reported Wednesday a 2008 net loss of 50.1 billion dollars, nearly half of which occurred in the fourth quarter.(AFP/File/Paul J. Richards)AFP - Freddie Mac, the ailing US mortgage finance giant seized by the government, reported Wednesday a 2008 net loss of 50.1 billion dollars, bleeding nearly half of it the fourth quarter.

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Sunday, March 8, 2009

The Differences in Forex Trading Styles

Forex trading is becoming more and more popular. More people are starting to trade in the forex market every day. One of the reasons for the gain in popularity, is the way that the internet has made forex trading convenient and accessible, with forex trading sites popping up all over the web.

Forex trading is the buying and selling of foreign currencies. Many see it as an alternative to stocks and mutual funds, since currencies are much more liquid than stocks. Companies that deal in forex trading for their investments, by buying foreign currencies will have those currencies available if they decide to expand into foreign markets. Another advantage that forex has over stocks is that the trading window is much larger. Stocks are bought and sold only when the stock market is open. Forex may be traded 24 hours a day, Monday through Friday.

The forex market offers different types of forex trading. These different types of trading may seem very similar to each other, but they are in fact different. Each type of trading has its advantages and disadvantages. If you plan on entering the forex market, you should know the differences.

Traditional forex trading one of the common methods. Traditional trading involves buying a currency at a low rate, and then either selling it for a higher price, or exchanging it for another currency when the exchange rates rise.

Spread betting is probably the most common type of trading, even though it differs from the way that forex trading is normally done. It does not involve buying or selling currencies as in the traditional method. Spread betting involves betting on whether a currency will appreciate or depreciate. Despite the image of gambling, many people feel that this method is a good way to earn money in forex market.

Day trading is a notorious type of forex trading. Similar to day trading in the stock market, this method involves buying and selling currencies for one day, rather than holding on to them and waiting for them to appreciate in value. This type of trading can be risky, but can also yield some good results. Because of the risk, however, many experts do not get involved in this style of trading.

Auto trading is an automatic trading system, as you may probably guess from the name. With this method, an investor will invest in a platform that will automatically execute trades depending on its analysis. In this style of trading, the investor can save money since there are no commission and transaction fees. Some people, though, are not comfortable letting a computer handle the trading. They are more comfortable doing the trading themselves.

As with any investment, there is some risk. If you know what you're doing, however, there are much lower risks in forex trading than investing in the stock market. Before you get involved in trading currencies, read up on the market. Know how the trading is done, and what signals to watch for. Knowing forex trading, and knowing the signals will help to minimize the risks of investing.

Be sure to visit Learning Forex Trading to learn more tips and advice for success in the forex market.

Reuters - Lloyds Banking Group will start meeting investors Monday to garner support for its plan to insure 260 billion British pounds ($370 billion) of risky assets with the British government.

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Wednesday, March 4, 2009

Forex Trading Platforms - 3 Questions To Ask When Comparing Trading Platforms

Assuming you've already done you initial research into forex, and understand the basics and the risks involved, you'll probably start searching for a forex trading platform next. Here are three questions to ask when comparing your options to help you make the best choice for your situation.

Tip #1: Is A Demo Account Provided?

Almost every company that offers a forex trading platform will provide a demo account for you to practice and learn on first. Stay away from any trading platform that does not provide this option. It is in every company's best interest for you to learn to trade as well as possible, and demo accounts are one way of encouraging this. Also, once you've chosen your platform, make certain to actually use the demo account first before risking any actual capital.

Tip #2: Is Solid Training And Responsive Support Included?

No matter which platform you choose, you'll likely need some help along the way. See how much training information is offered by the company. Make sure they have a support email and phone number - and test them out. Call and email with a few questions, and see how fast they respond - and how helpful their responses are. This will give you a good indication of the type of personal service you'll be getting if you decide to invest in their platform. Beware of any company that provides canned responses on the phone, or boilerplate email replies.

Tip #3: What Is The Minimum Amount You Can Start With?

Once you've narrowed down your choices with the questions above, you'll need to find out which platform will let you effectively trade with the amount of money you have to initially invest. Keep in mind, although you'll be able to trade larger amounts if you have larger amount to start with - never risk more than you can afford to lose.

Bonus Tip: Before you make you final decision regarding which forex trading platform you're going to go with, make sure to check out user reviews at a free forex forum and chat room like: http://www.freeforexforums.com

The FTSE 100 advanced on bargain hunting while keeping a tab on stimulus signals in China, Japan and the United States.(AFP/File/Ben Stansall)AFP - The FTSE 100 advanced on Wednesday on bargain hunting while keeping a tab on stimulus signals in China, Japan and the United States.

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Saturday, February 28, 2009

Smart Trading Methods

I've been trading forex for a few years now and I wanted to share a few of my smart trading methods that have really helped me profit over the long term. Like most people, when I started out I lost a lot of money. I just couldn't seem to get things to workout in my favor. I'd hear that people were making a lot of money, but I just couldn't seem to be that person. Once I learned these lessons, I got much better at an extremely fast pace.

Simplicity Really Does Work

I'll admit, when I first started out, I thought you had to have some special skill or know the complex systems of profiting with forex. I naturally assumed if simplicity was the key to success that everyone would do it. In reality, I know all businesses follow simple plans. The problem is that most people don't have the guts to put their life, money, assets and comfort zone on the line to do it.

Each day needs to be the same. The less exciting the better. Your routines should never excite you in this business, only seeing a big pile of cash in your bank account should. It takes time and experience to figure out these simple routines that work for you, but it's something you have to do.

Software

Have you ever seen a carpenter that didn't have a hammer? I haven't. That's because each profession has their own tools. Obviously as a trader you're going to need to have software that searches the market.

The Forex Loophole is probably about the most profitable automated trading machine on the market. Use it to exploit all the currencies you can to maximize your profit margins.

Reuters - Leaders of Southeast Asian nations have agreed to ease monetary policy and resist protectionism as they fight the financial crisis that is hurting their export-dependent economies, a draft statement showed.

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Monday, February 23, 2009

Forex Analyzer Automated Trading System - Build Your Own Trading Robot

An automated trading system is a great way to trade the Forex market and some people find great success with this particular method. A trading robot or "Expert Advisor" as it is more commonly known is simply a custom authored program designed to trade in a specific way following a pre-determined strategy.

The great thing about using a system such as this is that the automated trading robot will never make the same mistakes that you will as a human. It has no emotions and it doesn't get affected by external pressures and influences like you and I do. It's a robot.

I've spoken to quite a number of my fellow traders about trading utilizing a robot and I often here the same arguments:

"I wouldn't trust a robot with my money!"

"I don't trust anything I don't understand!"

"How can a robot do something better than I can?"

The problem with all of these comments is that they are all based on ignorance and pride. Not wishing to sound too harsh but the problem with all those people who doubt that automated trading works is they simply don't understand it. Being humans their first reaction when they don't understand it is to doubt it. It's interesting to note that the less a person understands about the subject the louder he protests. Think about that one for a moment.

What's stopping them from actually learning a little bit more about automated trading systems and even, God forbid, writing their own?

The answer is absolutely nothing. It's not hard. You don't need to have any previous programming experience and you can be up and running with you very own automated trading robot in a matter of a few days.

To see how simple it actually is to create your very own Robot System take a look at the free e-course I've created at AutomatedTradingSoftware.com. Start building your own automatic trading system right away.

Reuters - The leader of the U.S. House of Representatives said on Monday lawmakers expect to begin debating legislation this week that would let judges erase some mortgage debt for borrowers who file for bankruptcy.

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Friday, February 20, 2009

Smart Ways To Learn Currency Trading

I'm presenting to you today smart ways to learn currency trading. This is a very powerful business opportunity for individuals everywhere. It gives people the chance to build their own business, from home, with very little investment.

If there is one thing to pay considerable attention to, it would be the Federal Reserve. This is the central bank in the United States. It has one job, controlling the supply of money. Usually news anchors will say there job is to control inflation, but that's typically the same thing. Since we're talking about an entity that is controlling the supply of money, obviously supply and demand is changed, so the price should change. That's very important for the currency trader. The Federal Reserve has two ways to change the supply: raise interest rates, cut interest rates. A raise means it is harder for people to get loans, so this means supply goes down and money goes up. A cut means it is easier for people to get loans, so the supply goes up and money goes down.

The next piece of advice I can give you is to try to view things from a simple point of view. A lot of times people will build up stuff in their head, making everything look more complicated than it actually is. This isn't rocket science. You're not a scientist developing a huge rocket to goto the moon. You're trading currency. It's not complicated.

Lastly, you'll want to get your hands on Forex Killer trading software. It acts as a tool that analyzes currency graphs for you. It will find the profitable tends and tell you where to buy. This makes things easier and it's like having a mentor telling you where to trade.

The automated software of Forex Killer will give you an immediate edge in the market. Make trades that work for your profit line. For more information on the Forex Killer software, check out Forex Charting Software.

People walk past a Citibank branch in downtown Washington, February 20, 2009. (Yuri Gripas/Reuters)Reuters - Bank of America Corp shares sank below $3 and Citigroup Inc tumbled below $2 on Friday, hammered by growing fears that the U.S. government could nationalize the banks, wiping out shareholders.

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Sunday, February 15, 2009

FX Trading Strategy - To Win it Must Contain These 3 Vital Elements

If you want to win with your FX trading strategy make sure it contains these key elements otherwise you will be doomed and join the 95% of losing traders.

1. It must be Your Strategy!

Don't fall for the hype that some junk robot will give you success or a guru or mentor there are plenty sold online with huge profits in simulation but they don't work - no one gives you something for nothing and forex trading is no different.

Even if you have got the forex education from someone else, you must understand it and have confidence in it so you can follow it with discipline - discipline is the key, you must be able to ride out losing periods and wait until you hit a home run.

If you don't have confidence you will never be able to do this make sure you have it.

2. You Must Understand Your Edge

Your trading edge is the reason you will win when 95% of other traders lose and you must have confidence and understand what it is and it must be based on sound logic.

Many people think they have an FX strategy based on sound logic and do the following and lose.

- They try and predict market prices

- They follow bogus scientific theories

- They trade news stories

- They day trade and try and scalp

- They follow experts

All the above will see you lose if you don't know why, continue your forex trading education until you do.

Your trading edge is something that is personal to you and can be based on a simple forex trading strategy you can execute with discipline - that's enough, remember simple systems executed with rigorous discipline work!

3. Play Defence First

When you are trading on leverage you need to trade great defence first and always protect what you have this means rigorous money management rules and money management is much more than placing a stop!

If you don't keep your losses small you will get wiped out - sounds obvious?

Well most traders don't heed it and use leverage of 200 or 300:1 on a few hundred bucks, 10 or 20 is enough.

Forex trading can make you a lot of money but if you expect not to have to work your in for a rude awakening.

Do your homework, get confident and make sure you have the discipline to stick with your FX trading strategy and follow it through drawdown periods, to long term success and the rewards if you can do this are huge.

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Reuters - Merrill Lynch is shifting a majority of its contracts from troubled Indian software firm Satyam Computer Services Ltd to rival Tata Consultancy Services , the Economic Times reported on Monday.

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Thursday, February 12, 2009

Forex Trading Review

Where do we go from here? A Forex trading review is a tough subject to handle in only a few hundred words so I'll be as succinct as possible. We all know that the market is tough and a wise investor will always be looking for a good ongoing education. It is true, most people lose money in the Forex market and a big part of this reason is that they are not prepared. It is really silly to be impulsive when it comes to currency trading. I strongly suggest you get the following when you are looking for a course or software to help you trade better.

Who runs the Forex software company?

Try and find a well established company that has a proven successful Forex trader as the head of that company. Too many software companies and Forex courses are run by people that are looking to just make a buck and really don't know a thing about the the market. For example the software company that I favor is developed by a prior Deutsche Bank Forex consultant/advisor. I made sure that he had a successful background in trading the Fx market. If you would like to know more about his company there is a link at the bottom otherwise let's move on.

Make sure that the software is reliable and the product is trustworthy.

Have there been positive testimonials about the product? Who gave the testimonials and what is their track record? Have there been interviews or reviews on television or radio?

I believe the most helpful products available to Forex traders are those systems that have a signal generator. This type of software prompts the trader when it is time to buy and sell. A proven Forex trading system that is accurate and reliable is priceless, especially if you are serious about making serious money on the market.

Get an Objective Review of the Most Popular Forex Trading Software Programs. Forex Trading System Review is the place to visit.

See What Forex Trading Software REALLY Works! forex-trading-system-review.com is the place to visit.

A foreclosure sign sits on top of a sale placard outside a home on the market in the south Denver suburb of Littleton, Colo., on Tuesday, Dec. 23, 2008. To those on the front lines of the housing crisis, the Obama administration's plan to spend $50 billion to combat foreclosures was a welcome change in the government's approach. But the plan won't be unveiled for at least a week and might not be enough to prevent the housing market's troubles from mushrooming further. (AP Photo/David Zalubowski)AP - Rates on 30-year-fixed mortgages fell this week, offering homeowners a chance to refinance their loans, Freddie Mac said Thursday.

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Monday, February 9, 2009

Day Trading Classes

Day trading classes are not just for newbie rookie investors. Seasoned veteran investors are not exempt from the need to constantly hone their skills, the need to learn more advanced investing techniques, tips , and strategies. In any endeavor there is always room for growth. After all, wouldn't you want to learn the secrets of how to improveyour return on investment or how to increase your profit margins?

In addition to the technical knowledge that they provide, day trading classes also help you to develop and reinforce the mental conditioning requisite for an investor's mindset. Investing isn't 100% technical. You also need to undergo a whole paradigm shift in terms of your attitude toward money, the ability to conquer your fears of investing, to learn to expand your comfort zone, to learn to understand how the market works. Surprisingly, a lot of what holds us back from success is our belief in ourselves and our ability to be successful. That is why day trading classes have one other redeeming quality: They provide mentorship.

If you want to become a superstar investor, you need to learn from the superstars. Believe me, the mentorship of an experienced investor is worth its weight in gold. Day trading classes literally pay for themselves many times over when you apply what you learn. Experienced day traders who have blazed the trail to financial success are an invaluable resource to help you learn to invest properly, to help you learn from their mistakes so that you don't make the same mistakes.

Do you have what it takes to become a professional day trader?

A trader works on the floor of the New York Stock Exchange, February 2, 2009. (Brendan McDermid/Reuters)Reuters - More than 1,000 U.S. banks, or one in eight lenders, may fail in the next three to five years as commercial loan losses rise, compounding problems from record mortgage delinquencies and soaring home equity loan defaults, RBC Capital Markets said on Monday.

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Friday, February 6, 2009

8 Ways To Be a Better Trader

Even the best traders in the market have trading sessions that are less than optimal. Human nature dictates that we make mistakes, and trading the stock market is no exception. Subsequently, there is always room for improvement, whether you are a novice trader or a seasoned veteran.

1. Stick to Your Guns - Don't try to run from the market. The only way to boost trading profits is to stay in the game and keep trading. Running from the trades and the action will keep you out of the market, whether it is hot or cold. Sticking to your trading plan and enacting trading discipline are the keys to producing profits.

2. Set Stop Losses and Take Profits - "Set and forget" trading is generally profitable. When you place each trade, remember to place your exit and stop loss, and then let the market be your guide. Have a preset limit of how much you're willing to win and how much you can lose. Technical analysis will tell you the best price for selling (near resistance) and the best place for buying (near support). Support and resistance points are the best places to put limit orders.

3. Don't Watch Minute to Minute - Swing traders should be keen to avoiding the minute to minute movements. It's easy to set an exit point that will not be hit for three weeks, but then close a potentially profitable trade due to minute by minute movements. There is no reason to get out of a trade for quick profits if you're in for the long haul. Small ups and downs create temporary stress and can reduce swing traders to day traders. Niche trading works because you're specialized in your own area.

4. Eliminate High Probability Trading - You wouldn't expect to make consistent profits at the roulette wheel, and you shouldn't do the same with your investments. The active, professional trader only takes quality trades opposed to quantity of trades.

5. Accept That Full-Time Day Trading Is Rough - The ups and downs of full-time day trading are very stressful. Find something you can do each day to wind down and get rid of your stressful day to day anxiety. Stress will make you think differently and trade differently. A professional trader will need to find ways to vent their frustrations as bad days do happen to the best of traders.

6. Pick Swing Traders or Day Traders - Know exactly what kind of trader you want to be. It is difficult to be very good at swing trading while following the short term movements of day trading. Define what kind of strategy you want to follow and stick with it.

7. Don't Get Attached - You're out to make money, not be married to a stock. Even if you've got the feeling that this stock is "the one," you should be ready to dump it when the price is right.

8. Talk to Other Traders - Talk to other traders with more or different experiences. Getting a feel for the markets is paramount to producing profits. If you can get trading down to a point where it just comes naturally to you, all the better.

About the Author:
Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading

AP - In a story Feb. 5 about Citigroup's residential lending unit, The Associated Press erroneously reported that Citigroup Inc. sold servicing rights on a loan portfolio to American Home Mortgage Servicing Inc. for $1.5 billion. American Home Mortgage Servicing says the dollar amount is not the outright sale price; rather, most of the $1.5 billion includes advances American Home Mortgage is making to the trusts that own the loans.

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Thursday, February 5, 2009

Forex Trading While You Snooze

When a currency is being traded for another currency, a foreign exchange trading is taking place. It is commonly known as forex trading or simply FX. Forex trading is by far the largest financial market in the world with an average daily trading of a whooping $4 trillion. Banks, multinational companies, governments, financial institutions, and currency speculators trade 24 hours a day, 5 days a week. With all the currencies in the world being traded, you can see the extreme liquidity of the market. So, it really is not surprising that people are attracted to forex trading like a moth to a flame. The problem is that not everyone has the patience to learn how the market works. Before delving into the rough waters of forex trading, it is important to at least have a working knowledge on how the market works and how transactions take place.

In a typical forex trading scenario, you buy a currency that you think will either weaken or strengthen against another currency. Say, you want to sell your Euro at a specific bid price because you speculate that it will weaken against the US dollar. When the market moves in your favor, you can then buy back your Euro at a lower price. The difference in your Bid and Ask price will be your profit. It does look pretty easy and you can actually get the hang of it in just a few transactions.

Forex trading can be an attractive investment opportunity if you know how to play the game. The downside is that you need to monitor the movements of several currencies that you want to trade. Since the trading is active 24 hours a day, certain factors can easily affect the rise and fall of certain currencies. If you are not quick enough to catch these developments, you will not be able to cash in on forex trading. The best solution will have to be a Forex autotrader.

A Forex autotrader is a forex trading software that will help you handle all your online trading. It's just not possible to monitor the market every waking hour, so the software can do all your forex trading work for you, even when you are snoozing or relaxing. Of course, you have to check once in a while how your trading is coming along. The great thing about this software is that it is easy to use. You just need to install it in your computer and you can instantly get started. If you are not too comfortable with setting up the system, there are ways to get it done with technical support. The graphs and the numbers you see on your screen are various monitoring system that will allow you to see the performance of currencies against each other. You can also see how much money you are earning and if you decide you want to invest more, you can let the Forex autotrader do its job. It's great when someone does something for you, but it's even better when you earn something in the process.

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Reuters - It might be possible to modify mark-to-market accounting rules for U.S. banks facing steep writedowns of troubled assets without abandoning the underlying accounting standard, a senior Senate Democrat said.

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Monday, February 2, 2009

Algorithm Trading - New Forex Trading Algorithms Software

Algorithmic trading or algorithm trading software is something relatively new to Forex, as trading the Forex market is itself a relatively new trading platform.

Whether you're just getting started or you're a seasoned pro, you'll have noticed that algorithm trading, or algo trading if you like is now an integral piece of machinery in the Forex traders arsenal.

This software, once installed runs its little robot round the clock sourcing out trades on autopilot and carrying out scalping techniques, mining cherry picking trades from ever changing markets. It has transformed home business traders and business traders alike, in the way traders now trade the Forex market.

So, what exactly are trading algorithms:

These complex algorithms and detection mathematics, have largely been built by the Forex Pros's, a group of mercenary Forex buffs who now supplement their living with their automated trading software products.

They have designed algorithm systems which lock in profit and revert to a trailing stop for maximum gains, once stop loss and profit margins are in place.

These trading algorithms have many features, but their major asset is that there able to scalp trades from multiple markets, shaving trades 24/7.

The Forex is a relatively new market platform, and the buying and selling of one currency for another in order to make a profit is an extremely complex procedure. A disciplined trader is one who gets out when he should, however algorithmic automated trading eradicates any subjective response and any chance of loss. This may however reduce potential profit margins but put simply, its like quitting while your ahead.

You can put this system to the test on a Demo account. You can do that here at http://www.forextracertrading.com which allows you to trade with play money, so you won't be risking a penny. After you've tried, tested and retested, you can then open your real account and collect $100 and start trading on Autopilot immediately.

AP - Homebuyers could see lower mortgage rates and get tax credits as part of a sweeping economic stimulus package being considered on Capitol Hill.

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Wednesday, January 28, 2009

Currency Trading Strategy - How To Use The Fib 127 For Consistent Profits

A solid currency trading strategy consists of entering a trade at the right place, having a stop that is properly calculated, and setting a reasonable profit target level that works time after time after time.

Many newer traders set too ambitious profit targets expecting the trade to be "the big one" and hoping it will help offset the losses they have accumulated.

However, a far more effective currency trading strategy is to set a reasonable profit target each time, not expecting the home run, and being satisfied with smaller profits which on a consistent basis will build the equity in the account surprisingly quickly once the compounding action kicks in.

Here is where the Fibonacci tool comes in.

This article assumes a trader knows how to use the Fibonacci tool which comes as a standard technical analysis tool on most charting software packages.

While the key retracement levels are 38, 50, 62 and 70 percent, two extension levels are commonly used - 1.27 and 1.62 percent.

The Importance Of Fib 127

It is the 1.27 level we are interested in.

Why?

Because price regularly gets to the 1.27 level, or at least within a few pips of it. Price also gets to the 1.62 level fairly often but not nearly as often as the 1.27 level.

So if you are trading with the trend, always a safe currency trading strategy, and price has pulled back to the 50 or 62 retracement levels, there is a very reasonable chance price will reach the 1.27 target.

If price pulls back to the 79 retracement level it may not go so far. If you trade from that retracement, you will want to take the first profit at the end of the swing as price may not extend beyond that point to the 1.27 or 1.62 level.

Some traders just focus on this currency trading strategy when going with the trend:

  • In at the Fib 50 retracement
  • Out at the Fib 127 extension

Why is this such a sound currency trading strategy?

Because the Fib 38 retracement level does not offer such a good risk reward ratio many times. There is always the risk price will pull back further and take out your stop.

On the other hand, price frequently fails to reach the 62 or 79 retracement levels so the trader is left on the sidelines as the trade fails to get filled.

The 50 level is frequently reached so the trader has a good chance of getting his order filled.

On the other hand, the 127 extension is not too ambitious. In at 50 and out at 127 will often net a profit of somewhere between 25 and 40 pips. With a 20 to 25 pip stop the risk reward ratio is satisfactory.

How To Use Fib 127

Here are some other factors to consider when using the Fib 127 extension:

Look to see if this level coincides with other factors such as

  • A previous key level of support or resistance on the higher time frames such as 1 hour, 4 hour, daily, or even weekly.
  • The 200 EMA (Exponential Moving Average) on the 1 hour or 4 hour. This often provides quite a strong level of support and resistance.
  • A pivot point (Central Pivot Point, R1, R2, S1, S2, or M1-4 levels ) calculated from the previous day's High, Low and Close.

  • Even when targeting the Fib 127 as the profit taking point, it is wise to trim a couple of pips of the limit order. So often price will nearly reach Fib 127 and pull back.

    Yes it might go on to touch it later but in the meantime price retraces and you have to have the mental stamina to be able to handle that.

    Many traders would rather just take a slightly smaller profit and save themselves one or two hours of price consolidation with the risk they may lose the profit altogether.

    A solid currency trading strategy develops over time. A key ingredient is not being too ambitious. The Fib 127 extension level is a reasonable profit target you can use regularly to extract your wages from the Forex market!

    For a free Fibonacci calculator, pivot point calculator, and the best free economic calendars click here:

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    See how to use trendlines to get an optimum trade entry point:

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    Friday, January 23, 2009

    Learn Forex Trading - Learn How to Trade Forex

    If you have been thinking about how to trade forex and is a newbie, you might be interested in knowing that there is a new software that is fully automated which seeks out profit from the continuously changing and complex currency market and can also complete the trade automatically through auto pilot if you want it to.

    The best way to learn forex trading online as well as to understand how it works is through automated trading. What you need to do is to put, on every trade, a stop loss and trading profit for every order you place so that the system would then lock in profits and then revert to a trailing stop for absolute profit.

    People who ask about "how to trade forex?" is also most likely to ask "do I need capital in order to start trading?" and the answer is, that depends. The need for a capital would solely depend on the broker you use. The usual starting amount is $500. But with the use of automated trading, you can actually "play trade" with the use of fake money. This is done to help newbies, like you, to learn forex trading..

    If currently, you already have a metatrader account, you can merge it with the automated one by simply importing the tracing software package to your metatrader account. From there on, you can start playing with the use of the automated trading software in actual time or in a practice session. If you still want to learn more, there are video tutorials that come with the forex trading software. These videos aim to teach you how to forex trade if you are starting from a novice level.

    Do you want the very best forex trading robot? Well I have some good news for you, I bought and tested the top 7 forex software's and put a review of the top 2 on my website: ForexTradingReview.Info I made over 900 dollars a day with one of the softwares listed on that site. Just Imagine if you purchase a couple of profitable softwares!

    You have to be very careful when purchasing a software though. Some of the software's just sit around and never make you any money. If you want to make thousands every week with forex I suggest you take a look at the website: Forex Trading Review

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    Friday, January 16, 2009

    Using the Internet For Forex Trading

    One of the most convenient resources available today is the Internet. Today the Internet can be used to quickly exchange data and information world wide. Thanks to this convenience people from all backgrounds have been able to use the Internet to do nearly anything, including trading in the profitable financial markets.

    Using the Internet for financial trading is more than convenient. It makes financial trading possible for people all over the world. Before the Internet financial trading could only be done inside the market floor or with the help of an experienced, expensive, broker or advisor. Now all a person needs to trade online is a reliable computer, Internet connection, and easy to use trading software.

    If you are a confident Internet user that is interested in the financial market it is time for you to consider the world of Forex. The surprising growth of the Internet has encouraged the Forex market to relax some of the strict rules regulating who could trade and how they could trade. Now a person does not have to be affiliated with a well known company or have a large amount of investment capital available to begin trading.

    This ability exposes curious investors to an exciting and promising world of Forex. There are many who are unsure about Forex trading and do not believe that they will be able to make any more money in the Forex market than they would in any other investment. In reality, the Forex market is the largest financial market in the world that is active 24 hours a day. This nonstop trading involves trillions of dollars in currency being bought and sold each day.

    With the ability to use the Internet and reliable software to trade in the Forex market anyone with determination can make their fortune with Forex trading. The Internet combined with Forex software gives average people the opportunity to learn and experiment with the Forex market in an entirely risk free, simulated environment before getting started in the real-time market.

    If you are interested in finding out more about Forex Practice Accounts or Forex Trading feel free to visit Forex Automation.net

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    Sunday, January 11, 2009

    Forex Funnel Review - Professional Automated Forex Signaling & Trading Robot

    In this article, I would like to introduce you to professional forex trading software called Forex Funnel. Almost any person on this planet knows what is forex, and how powerful it is. Did you know that currently forex is a $3 trillion industry? Every day there are transactions in forex of over million dollars. If you are still not trading forex, then you should start as soon as possible.

    What I really like about Forex Funnel is that it's very easy to set up. You just download it from the server, and simply follow installation instructions. There is no cracking or hacking. It's a legal software for helping traders maximize their profits. This tool can work 24/7 and you don't have to monitor it, because it's completely automated.

    As you probably know, it's difficult to know which trends are going to be profitable without analyzing forex data, and looking at all those complicated graphs and charts. In order to eliminate guesswork and trade accurately doing the above is vital. However, if you use Forex Funnel, then there is no need to analyze any data, because this tool can locate profitable trades for you, and you just have to accept them.

    This trading system targets one currency pair, which is USD/JPY on the 1 hour timeframe. The focus of the tool will be 100& on this specific currency pair. The software is concentrated on only one pair, so it can produce better results, making you more money. You can be sure that your investment will be double or even tripled.

    Another great thing about Forex Funnel is that you can start off by trading a demo account, where you are not required to invest anything, because you will be able to trade with virtual money. This is an excellent opportunity to test the software, and see how it works. I have no doubts, that you will be amazed by results.

    The truth about this tool is that it's not actually new, and it has been tested for 4 years, before it became public. The trades who were using the software during those years, have managed to earn over $400000 in profit. As you can see, it does work and now it's available to anyone.

    The only problem with Forex Funnel is that it works on MT4 platform only, but considering that it's the most popular trading platform on forex, you should be fine with that. I am sure that using this platform only will help you to stay more concentrated.

    Summary

    Overall, I would say that Forex Funnel is a must have software for any trader, who is willing to make astonishing money with forex. As I said, everything is very simple. When you purchase the software, you will get two files. One is the actually the tool itself, and other file is the manual of how to install and use it. Plus, you will also get special videos, where you will learn how to use the software to increase your earnings even further. You will also be give $100 bonus credit, when you start trading.

    I would certainly recommend Forex Funnel for complete beginners, who has never done forex, because I believe it's so simple that even newbies will be manage to use it and make money with forex.

    So if you would like to know how you can make six figures a year trading forex with this software, please visit http://www.forexfunnelsoftware.info to learn more about Forex Funnel.

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    Friday, January 9, 2009

    Forex Trading Robots - Best Forex Trading EA to Have

    Forex Trading Expert Advisors, or simply put - Forex Trading EAs, are automatic execution forex system trading platforms that render the trading process automatic therefore freeing the trader from continuously watching the market. This also makes it possible to separate the psychological and emotional aspects when trading. The system is setup according to a set of preferences and makes the trade according to these rules. Even the best traders are affected by the emotion we call "fear". Decisions made under duress is often times the wrong one!

    Forex trading robots are normally accessed in the internet. It works very similar to having your own broker but instead of a live person doing the trade for you, it is in the form of a program. And since the forex robots don't sleep, you have your own forex trading EA running 24 hours a day, giving you the advantage of not missing any opportunity when the forex market changes. It is now possible to trade professionally even if you are just a beginner in forex trading.

    There are a lot of forex trading robots in the market today. Forex trading EAs are great tools to have if you want to bring your trading to the next level. But not all forex trading EAs are made equal. You have to first determine if the software can really work to your advantage. You have to determine if it can really trade effectively and efficiently.

    Listed below are a few tips on features you may want to look for in a forex trading robot:

    1. 24 hour a day operation - What good is a forex trading EA if it doesn't work for you 24x7??? Make sure that your software works 24 hours a day so you don't miss any opportunity;

    2. Updated Trading Automation Technology - Since your money is at risk, you should choose a Forex trading robot with the latest trading technology existing in the market today.

    3. Minimum investment requirements - Investments in a Forex trading robot should be minimal in order for you to afford.

    4. For forex trading beginners, the option to have a "demo account" is an advantage. This will allow you to do live trading but without using real money. You can get the feel of the market first before really plunging into the sea.

    5. Highly recommended by Forex Trader enthusiasts. It is without a doubt that forex trader experts have forex robots working for them. Look for their expert opinions on the best forex trading EA on the market and head their suggestions.

    Head of caution: Never forget that although Forex trading can create huge sums of profit in the least amount of time for you, it can also cause you to lose money in the same amount of time. Using a Forex Trading EA minimizes this risk because it takes advantage of the earning potential 24 hours a day, hence you never miss a trading opportunity that comes from a great market trend.

    I'm an automotive enthusiast; my passion is all about cars and auto accessories. And to help finance this hobby, I do extremely well in forex trading and own several online businesses. You know, with the right set of tools and information, you can earn huge amounts of profit in forex trading.

    If you want to read more about it, go to: http://reviewsummaries.com/category/forex-trading/

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    Thursday, January 8, 2009

    5 Forex Trading Myths

    1 - If I trade stocks successfully, I will make money in Forex

    Despite the fact you are successful in the stock market, this does not imply that you'll be successful in the Forex market. There are a lot of differences between the stock market and the Forex market. First of all, the Forex market is open 24 hours a day. This requires a lot more complexity and work. As you know, you cannot be in front of your computer 24 hours a day. You'll have to figure out the best time periods to trade so that you can be successful.

    Also, you need volatility. And here's another problem with the Forex market. There are periods of very high volatility and very low volatility. This difference is much higher in this market than on stocks.

    You may think that as the Forex market is open 24 hours a day, you can day trade whenever you want. You just need to turn on your computer and there it is... a trade just for you. Well, that's not even close to the reality. This may happen from time to time but it's not frequent. You need to develop a good strategy.

    The last point I need to focus is a real important one. If you want to trade Forex you need to find a good broker. Well, this isn't a simple task as in the stock market because this market is not regulated. This means that there are a lot of brokers that don't act in the best interest of their clients. Be ready to spend quite some time finding a solid broker that fits your needs.

    2 - If the Forex market is open 24 hours a day, I can make a profit whenever I want

    Well, not quite... As you know, to make a trade, a trader needs volatility. The volatility can appear anywhere within the 24 hours. As you cannot be in front of your computer all the time, this makes your work harder.

    First of all, you need to figure out the best time to trade (where volatility usually appears) and you also need to adjust your strategy to this period.

    3 - I don't have to pay commissions in the Forex market

    You don't have to pay commissions but you have to pay the spread. The spread is the difference between the bid and the ask of the currency pair you want to trade.

    Sometimes, these fees are not so cheap. If you plan to be day trading, you'll see a major part of your profits to be left for the broker.

    4 - In order to be profitable in the Forex market, I need to predict what will happen

    As Forex is a complex market, you need to constantly learn and evolve as a trader. This does not mean you have to predict; this means you have to react and react fast.

    As a trader, you need to access charts but also need to access to all the information you can. The more information you have, the better your response will be when something, good or bad, happens in the market.

    5 - I'll be more successful if I use a more complex strategy

    This is clearly a myth. Simple things work better in life as well in Forex. If when you're defining your strategy you use 3 indicators, I bet most of the times there will be one that goes against the others.

    Try do define a good but also a simple strategy.

    John Baker is an editor at http://www.ForexTopTen.com By visiting the website http://www.forextopten.com you can read forex traders reviews about forex trading systems, trading courses, ebooks, softwares and brokers.

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    Monday, January 5, 2009

    Best Online Trading Strategies to Use in Forex

    Few people will deny that the Forex market is one of the most lucrative financial markets to trade in. With the large daily price trends and market volatility, it is not uncommon for an experienced and successful trader to make hundreds or even thousands of dollars a day.

    However, trading in this high leverage and high volatility market does have its potential drawbacks. Although one can potentially make a lot of money in a short period of time, it is equally possible to lose a lot of money within a short period of time too.

    The trick to profitable trading is to limit your losses while letting your profits ride.

    The Most Consistent Strategy for Profits

    There are many traders who like to scalp the Forex market. In other words, they like to enter and exit their trades numerous times a day, each time gaining a small amount of profits. Over a few days or weeks, these small profits start to accumulate to form a large sum of money.

    However, such methods of trading require a large amount of effort and concentrate. You'll have to sit in front of your trading terminal for hours upon hours, as you watch intently at each small fluctuation in price. Unless you are a full time trader, this will form of trading will be tough for you to adopt.

    A much better (and consistently) strategy to adopt when trading Forex is to trade on breakouts. There are various forms of breakout strategies, but they generally all work on the same premise: prices cannot keep ranging forever. The moment there is a price break (either upwards or downwards) from a market consolidation, huge profits can be usually be captured. All you'll have to do is to place your relevant buy or sell stop orders, and you can just step away from the computer and go about your daily routine.

    This form of trading is much more consistent, easy to implement and potentially much more profitable.

    To learn more, Click Here to download my free 26-page guide, Forex Trading Traps!

    Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading tips and resources.

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