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abdulla1

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abdulla1 last won the day on December 20 2016

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  1. Hi Username : (abdulla1) Amount To Request (DMT points) : (example: 215) Liberty Reserve ID : (U8952340) Thanks
  2. The Forex market is an extremely large market. In fact, it is one of the biggest money markets to be found in the world as it brings in trillions of dollar trades each day. You will be able to make lots of money with forex trading, but you will need to know what you are doing. As long as you know what you are doing, there are a number of different benefits that you will be able to take advantage of. When you become a forex trader that is successful, you will find financial rewards and a great lifestyle. As we continue this article, we would like to tell you some tips on forex investing. One of the most important tips of forex investing involves money. You see, it is always important that you remember this one tip” when you are investing in the market, you should only do this with money you are able to lose. If this is you last dollars, then don’t put it into the market. When you are investing, there is always risks of losing the money. Each one of the currency pairs will be quoted with both an asking price and a bid. Take note that the bid will always be lower than the asking price. The bid price is the price your broker is willing to buy it at, which means the trader should see it at this price. When you are dealing with the forex market, you will hear pip more than once. What exactly is a pip? It is the minimum move that a currency pair is able to make. Pip stands for Price Interest Point. What is the main purpose of trading? It would be to buy low and sell high, of course. When we look at the forex market, we see that it is an unusual market and there are a number of reasons why. First of all, there are not many markets that are free from outside controls. It is also known for being the biggest liquid financial market. Some of the trades reach anywhere from 1 to 1.7 trillion US dollars each day. If you are looking into forex investing, then you are making a wise decision.
  3. Forex trading is definitely risky. Not all who participate in Forex trading ends up with profits. With fixed ratio money management, you will profit more rather than losing money. It will help you to maximizes your money and limits your looses. It is a defensive strategy in Forex trading. Let me show you how you can turn your $1,000 to $12,000 safely in Forex trading. Follow these steps and start cashing in your profits. Step 1: Open a Forex trading account of $1000 for every lot. Step 2: Determine how many pips you want to gain before you increase your investment in a lot. The minimum pip to start increasing investment varies from people to people. Start with a number of pips that you are comfortable with. Let’ say you decided that 200 pips is enough to start adding to your investment. You’ll need an average of only 10 pips for a day for 20 trading days. Step 3: Increase you’re the percentage of your lot if you achieve your minimum profits. If you haven’t reached your minimum pip, continue trading with the number of pips within your capacity. The increase of on the percentage of your lot should be in the increments of 10% percent per achieved profits. Sample : First 200 pips - $1,000 + (200 pips x 0.1 lot) = $1,200 as your new lot Second 200 pips — $1,200 + (200 pips x 0.2 lot) = $1, 600 as your new lot Third 200 pips — $1600 + (200 pips x .3 lots = $600) = $2200 as your new lot Fourth 200 pips — $2200 + (200 pips x .4 lots = $800) = $3000 as your new lot Fifth 200 pips - $3000 + (200 pips x .5 lots = $1000) = $4000 as your new lot Sixth 200 pips — $4000 + (200 pips x .6 lots = $1200) = $5200 as your new lot Seventh 200 pips — $5200 + (200 pips x .7 lots = $1400) = $6600 as your new lot Eight 200 pips — $6600 + (200 pips x .8 lots = $1600) = $8200 as your new lot Ninth 200 pips - $8200 + (200 pips x .9 lots = $1800) = $10000 as your new lot Tenth 200 pips - $10,000 + (200 pips x 1 lot = $2000) = $12000
  4. Anyone who is serious about trading needs to have a Forex Trading System that is tailored to them, but there is no reason to start constructing your Forex trading system from scratch. Why try and reinvent the wheel when you can benefit from other traders years of experience and borrow your trading system's ideas and concepts? It's easy to do, and there are some pretty good Forex trading systems out there for you to work with. Some of them are free and some are very expensive, but the price tags don't always reflect the actual value of the Forex trading systems. But, many of these systems won't work for you, and I am not talking about out-right dishonesty here, which can be a big problem when trading. What I am talking about is your ability to effectively trade with the system that you may be considering using or buying. You need to use a system that matches your life style and personality. If you have a day job (not trading), a Forex Trading System that requires you to stare at a screen all day wouldn't be appropriate. You would be distracted at work and miss the opportunities to make money, or even worse, you will not close a trade effectively and could lose money. Some Forex trading systems have a potential to lose 20, 30 or 40% of your money before they are profitable. Can you handle a system that can drop your trading capital to half before making money? Or, are you prepared to have a string of 8 to 10 loses in a row before you have a winning trade? Some of the best traders in the world lose money on more than 50% of their trades. These are all important points to consider when you are creating your Forex Trading System. Choose aspects of the different systems that are out there that fit your trading style best, and then build your Forex trading system. An excellent trading method, which was made famous by Richard Dennis and William Eckhardt and is sometimes referred to as Turtle Trading, is one of the best Forex trading systems that I know of. They get returns in excess of 20 to 100% per year using this system. But, could most traders trade their system? Not a chance! Dennis and Eckhardt also loose on over 60% of their trades. Once you know what sort of Forex Trading System will work best for you, look at the components that make it work. Face it; if you are a new, or even a fairly serious, trader how likely are you to come up with a totally new concept? There are some very smart and wealthy traders out there. Why not use their ideas. Consider Dennis and Eckhardt's turtle trading, their system is based on a "breakout" method. I know most traders could not trade using their exact method, but they could take parts of it, such as the breakouts, to confirm a trend. You can also use other Forex trading systems to give you an outline of what parts a system has to have for it to make money. All great Forex trading systems have these three basics: 1. Entry Rules, 2. Money Management Rules and 3. Exit Rules. Study and learn from the Forex trading systems out there, borrow their concepts, and steal their ideas. It will put you on the track to the system that will make you a successful trader.
  5. So, you now have a trading system. You devised it, you tested it and you are already using it to trade the market. You may have automated it or you may still have to put your buy and sell orders manually, but for the moment, you really have nothing much to do apart from following your system with ironclad self-discipline. The question is: Now what do you do? If you are one of those traders who reached this stage, the chances are you may have spent your last few months or years arriving at your system and now that you have it, you have spare time. With this spare time, you may find yourself watching the market day in and day out. The danger with doing this is that you create opportunities to feel emotional about every single one of your trades and this may lead to undoing the results of your hard work. You begin to feel elated when you are making money and you might start breaking your rules. Conversely, you may feel down when you are losing money and you start doubting your system and thus, begin disobeying your trading rules. The problem might be that you have a good system and you are simply not giving it enough time for it to work. If you think this is happening to you, consider that it might be best that you only watch the market when your trading system requires you to. You should also consider other ways in which you can best fill your spare time to serve your need to work, find your purpose and create a meaningful life. You must have other interests and ambitions. Personally, I have always wanted to create a business that would serve the planet and millions of people so I can leave behind a legacy when I die. I know this sounds very grandiose but I know that you, the reader, also have similar aspirations deep inside. I know this because we are both human beings and human beings have the need for self-actualisation and self-transcendence (spiritual needs). As a disciplined trader, you have many skills you can apply to business. You create systems, you are analytical, you are creative, you solve problems and you are results-oriented. These are all strengths that you can apply in the world of business. There are many opportunities out there for you to apply yourself and the lessons you learn from trading the financial markets.
  6. Automated forex trading systems use the latest technology to simplify navigation of the forex market. These systems are made up of sophisticated computer software that uses mathematical algorithms to analyze the right times to buy and sell currency. These programs also make the process even easier by conducting the trades for you. Trusting a machine to make choices when large sums of money are at stake may sound like a bad idea, but automated forex trading can actually work better than trading handled by a human. People frequently make mistakes such as math errors, misreading charts, or simply failing to look at all the factors involved. Another common human complication comes from our susceptibility to emotions. Frequently people allow emotions to get in the way of their better judgment, and this can lead to lost money in the forex market. Using an automated forex trading system eliminates these problems and improves your results by keeping track of all the available data and making the best decisions. Online trading with a forex robot can streamline the entire trading process. Automated forex trading systems don't come cheap. A broker will normally require that you put down at least several thousand dollars as an initial investment. Other additional fees are also possible. However, this extra cost can be easily made up for by the benefits of using an automated forex trading system. Traditional trading methods require an individual to invest large amounts of time in studying the market, and training to make the best decisions. Automated training requires none of this since all the expertise is already written into the program. All that's required is that you know the very basics of the market so you know generally how the automated system is operating. Companies that wish to break into the forex market will also find automated trading systems attractive. Since it requires a minimal investment of resources to get started, this can be a good choice for a company that wants to get into the forex market but doesn't have the personnel to handle this new endeavor. Having a computer system do the trading for you also saves money since an employee doesn't need to be trained and paid to trade. One possible drawback of automated trading systems is their reliance on technical rather than fundamental analysis. The computer programs are only able to examine the performance of the market and general trends, not outside factors that may influence changes in the forex market. Political and social events that have a real effect on the forex market can not be analyzed by an automated forex trading system. However, this does not negate the positive effects of these systems since they have a proven track record of success.
  7. Swing trading in forex is a form of quick trading performed by investors aiming to maximize profits and minimize risks by making strategic trades that last from 3 to 30 days. This is a very popular style of trading among investors and day traders across the globe. Swing trading depends on short-term variations in the market, forcing traders to react to the changes in a rapid manner. This form of trading depends more on stress price patterns than actual value. As a trader, you do not wait for currency prices to hit either high or bottom, but wait for short term fluctuations in the market. Swing trading is highly favored by day traders, rather than by large financial establishments or brokerage houses. Swing trading is most profitable when markets are stable. Advantages of Swing Trading in Forex The reason for swing trading in forex being popular is the many advantages it offers over other conventional forms of trading, like buy-and-hold investing and position trading. The returns tend to be higher for an average trader. You can, for instance, trade for a short while and pay your monthly bills. Swing trading is, however, subject to market fluctuations and conditions. Like all forms of trading, swing trading is susceptible to lean phases. When executed properly, you will experience less risk as compared to other methodologies. Unlike conventional investors whose fortunes are tied to bulls and bears, swing traders are free to exit losing trades and step out. There is an exit strategy for swing traders. Another strategy for a swing trader is to short the market even when the market suffers a slowdown. Swing traders can have a flexible schedule unlike most day traders. All you need is to do some market research after work, and place new trades the next morning when the markets open. This style of trading offers more attractive returns due to its less labor-intensive requirements. You also need not worry about: •Scrutinizing financial statements like most investors •Monitoring market crests and troughs like position traders •See your profits vaporize before your eyes due to unfavorable market conditions •Using complicated systems like other traders Swing trading is popular because of the flexibilities it offers. In short, swing trading gives you the highest returns in the least amount of time.
  8. Keen on starting Forex trading? Why would you not be: Many beginning Forex traders are captivated by the allure of easy money. Forex websites offer 'risk-free' trading, 'high returns' and 'low investment' — these claims have a grain of truth in them, but the reality of Forex is a bit more complex. As with anything in life, what you put in will determine what you get out. There are two common mistakes that many beginner traders make — trading without a strategy and letting emotions rule their decisions. After opening a Forex account it may be tempting to dive right in and start trading. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. You buy and watch the market move against you. You panic and sell, only to see the market recover. This kind of undisciplined approach to Forex is guaranteed to lose you money, and have you waste your time. Forex traders need to have a rational trading strategy and not allow emotions to rule their trading decisions. The two emotions prevalent in the above example is greed (entering the market immediately) and fear (selling when the market temporarily moves against you). Investing and these two emotions do not gel at all. Keep them out of your trading and you will see results. To make rational trading decisions the Forex trader must be well-educated in market movements. He must be able to apply technical studies to charts and plot out entry and exit points. He must take advantage of the various types of orders to minimize his risk and maximize his profit. The first step in becoming a successful Forex trader is to understand the market and the forces behind it. Who trades Forex and why? Who is successful and why are they successful? This knowledge will allow you to identify successful trading strategies and use them as models for your own. There are 5 major groups of investors who participate in Forex — Governments, Banks, Corporations, Investment Funds, and traders. Each group has varying objectives, but the one thing that all the groups (except traders) have in common is external control. Every organization has rules and guidelines for trading currencies and can be held accountable for their trading decisions. Individual traders, on the other hand, are accountable only to themselves. If you do not keep yourself in check, nobody else will. Why should they worry if you aimlessly waste your money? This means that the trader who lacks rules and guidelines is playing a losing game. Large organizations and educated traders approach the Forex with strategies, and if you hope to succeed as a Forex trader you must play by the same rules. That is studying these strategies and rules before starting to trade is so important. Forex Trading Philosophy — Money Management Money management is part and parcel of any trading strategy. Besides knowing which currencies to trade and recognizing entry and exit signals, the successful trader has to manage his resources and integrate money management into his trading plan. Position size, margin, recent profits and losses, and contingency plans all need to be considered before entering the market. This may sound like Greek now! If it does, you have more reason to get to know these terms. Knowledge will empower you on any investment market, including Forex. There are various strategies for approaching money management. Many of them rely on the calculation of core equity. Core equity is your starting balance minus the money used in open positions. If the starting balance is $10,000 and you have $1000 in open positions your core equity is $9000. When entering a position try to limit risk to 1% to 3% of each trade. This means that if you are trading a standard Forex lot of $100,000 you should limit your risk to $1000 to $3000 — preferably $1000. You do this by placing a stop loss order 100 pips (when 1 pip = $10) above or below your entry position. As your core equity rises or falls you can adjust the dollar amount of your risk. With a starting balance of $10,000 and one open position your core equity is $9000. If you wish to add a second open position, your core equity would fall to $8000 and you should limit your risk to $900. Risk in a third position should be limited to $800. By the same principal you can also raise your risk level as your core equity rises. If you have been trading successfully and made a $5000 profit, your core equity is now $15,000. You could raise your risk to $1500 per transaction. Alternatively, you could risk more from the profit than from the original starting balance. Some traders may risk up to 5% against their realized profits ($5,000 on a $100,000 lot) for greater profit potential. As you can see, the novice needs to get through quite a bit of education, understanding and planning before those 'risk-free' trading, 'high returns' and 'low investment' promises will come into play. What are you waiting for? Get yourself a decent Forex Trading Education
  9. RULE #1) ~ Cut your losers; let your winners ride. One important thing that every new trader must know before entering this highly profitable business is that life is not perfect, even in Forex land, and you should always know one fact: YOU WILL HAVE LOSING TRADES. Every Forex trader does. The key to being a consistent, predictable, reliable trader is to, at the end of the day, add up more wins than losses. And, when you KNOW(based off your trading rules), without a doubt, that YES, indeed you are, in a losing trade, don't keep losing money (lowering your stop loss) just to *prove you are right* or your rules are wrong (however you want to look at it). All traders have to face it — you can't turn a donkey into a ferrari. You can't change the strips of a zebra and you can't turn chicken poop into chicken salad. The best trades are usually "right" immediately (the techniques, rules, methods and strategies you can learn in my website will be your best indicator for just what a "right" trade really is). Remember, people have been trading the markets for a hundred and sixty years. The smart traders know there's going to be another trade. Cut your loses short and compound those winning positions. RULE #2) ~ Thou Shall Not Trade the Forex Without Placing a Stop Loss Order. When you place a STOP order, right along with your ENTRY order, via your online trade station, you've just automatically prevented a potential loss from "running" too far. Before initiating any trade, if you haven't already figured out at what point you would be wrong and would want to cut your loses or, at the very least, reevaluate your position from the sidelines, then you shouldn't be putting on the trade in the first place.
  10. Online, Day trading has exploded across America. Some investors have been very successful and boast of huge gains made in incredibly short periods of time. However, there are many others who experience devastating losses because they have not tapped into the 6 critical factors necessary for successful Futures and FOREX Trading. Success in any profession can be broken down into a number of critical factors. Trading is no different. A successful trading strategy incorporates the following 6 factors. 1. Determination of An Edge: Trading Futures is a zero sum game. There must be an identifiable edge over the other market participants. 2. Disciplined Execution:There is no point in identifying an edge if there is no discipline to follow thru. Create a plan, stick with it, then determine if the plan is successful. If it is not, change the plan. The important thing is disciplined execution. 3. Money Management: If the risk per trade is too aggressive, then there is the risk of blowing an account. If trades are too conservative, then the opportunity to optimize returns is missed. It is critical to establish the maximum expected draw down of any system and set money management rules accordingly. 4. Create a Trading Plan: A trading plan will determine what will be done in any given situation during the trade day. A plan helps keep one focused on execution and not distractions. 5. Responsibility: Responsibility lies with the trader. Gains, losses, success, or failure is determined by the skill, determination and discipline of the trader. 6. Commitment: There must be commitment to placing every trade according to plan, even through the losing periods where every trade seems to end up a loser. Trading seems to throw up extremes of good times and bad times. One must not be over confident during the good times, and one must not give up in the bad times. There also must be adequate time every day to compare actual performances against the trading plan.
  11. Oil futures surged to a record intraday high of $70.85 on August 30th, the day after Hurricane Katrina made landfall on the Gulf Coast. While prices have moderated in subsequent weeks, it's worth examining how higher commodity prices and the specter of inflation impacts the foreign exchange (FX) market, particularly the U.S. dollar. Traditional supply and demand factors certainly have contributed to the longer term trend in energy prices. The demand side of the equation has been getting plenty of press this year, with focus on the rapidly growing thirst for oil in both China and India. However, the recent spike in oil can primarily be attributed to hurricane related speculation in the futures market and the limited and centralized (on the Gulf Coast) refining capacity of the U.S. Economic data released in recent weeks has begun to reflect the effects of hurricanes Katrina and Rita, which ravaged the U.S. Gulf Coast in August and September. These data reinforce what the Fed has been implying all along; that the economy is growing at a brisk pace and that inflation, not recession, should be the concern. September jobs data showed the first net job losses since May of 2003, but the decline of 35,000 jobs was much smaller than the decline that was anticipated. September CPI showed the largest monthly gain in 25 years. However, when the volatile food and energy components are removed, inflation was a rather mild 0.1%. That was quite a bit less than the market was anticipating and suggests that the higher energy prices are not being passed through to the core number yet. Similarly, the September PPI headline number exceeded expectation and was the largest monthly gain in 15 years. However, again we remove food and energy and see that wholesale prices were up a relatively restrained 0.3%. This core number did beat expectations though, so one might deduce that higher energy prices are starting to impact prices at the wholesale level and it's just a matter of time before these higher prices are passed along to consumers. Weaker than expected retail sales and a new 13 year low in Consumer Sentiment suggests that higher energy prices are indeed weighing on the American consumer's mind. How that will play out, particularly in the retail sector going into the holiday season is now a major focus on Wall Street. With the word 'inflation' seemingly on everyone's lips these days, we expect the Fed to continue on its tightening schedule. The Fed raised the target for overnight borrowing in September by 25bp to 3.75%, the 11th such hike since June of 2004. Another rate hike is expected in October and at least one additional 25bp bump is all but assured in November or December. Rising U.S. interest rates and an expanding U.S. economy have been the driving forces behind overseas flows into U.S treasuries and the stock market respectively. These flows translate into demand for the U.S. dollar, which has kept the greenback generally well bid in September and October. While we would contend that the equities market is vulnerable at this stage, the interest rate differential picture should continue to favor the dollar through year end. High energy prices and inflation fears are not exclusive to the U.S. Central bankers and finance ministers from the Group of 20 industrial and developing nations are meeting in Beijing this month. A statement released on October 16th said, high oil prices "could increase inflationary pressures, slow down growth and cause instability in the global economy.'' This should benefit the dollar as well because in times of global economic uncertainty, the dollar is still considered a "safe haven" currency. While we may see other countries begin to tighten their monetary policies, U.S. interest rates will remain significantly higher. The definitive move above USD-JPY 115.00 bodes well for additional dollar gains against the yen into the 118/120 zone. On the other hand, the July lows in EURUSD at 1.1868 must be convincingly negated to trigger further dollar gains against the European currency. Such a move would shift focus to the 2004 lows at 1.1759/78 initially, but potential would be for a drop below 1.1500. In times of inflationary pressures, the U.S. dollar tends to lose ground against the commodity currencies. Commodity currencies are the currencies of countries that derive the bulk of their export revenues from the sale of commodities. Prime examples of liquid commodity currencies are the Canadian dollar, Australian dollar and New Zealand dollar. The dollar hit a new 17 year low late in September against the Canadian dollar on the back of sharply higher oil and metals prices. While the dollar recovered from those lows, gains are considered corrective in nature and we look for the longer-term downtrend in USD-CAD to continue. Similarly, AUS-USD and NZD-USD are consolidating below important resistances with scope seen for additional short to medium term gains. At some point, domestic inflation and the rise in the U.S. dollar will return focus to the U.S. trade deficit and balance of payments. As U.S. goods and services become more expensive, both domestic and overseas consumers will look elsewhere. That's the point where the U.S. stock market truly becomes vulnerable. Downside risk in the stock market will result in a negative impact on flows into the U.S. and consequently the long-term downtrend in the dollar would likely start to re-exert itself. Conventional wisdom in the financial services industry suggests that placing 5-10% of one's portfolio in alternative investments, such as those offered by CFS Capital, is desirable to achieve the diversification necessary to protect against adverse moves in the more traditional asset classes.
  12. The Consumer Price Index (CPI) has a major influence on forex trading. As an important economic indicator, CPI impacts not only forex, but also interest rates and stock and bond prices. The CPI is also used to make adjustments to cash flow mechanisms, such as pensions, health insurance and income. As a result, most traders and investors will find that the CPI affects their strategies in some way or the other. The CPI compares a household's cost of a specific basket of goods and services with the cost of the same basket during an earlier period. Economic Indicator: How Does CPI Influence Forex Trade? The CPI is an important benchmark for inflation in any economy. Traders must have their eyes fixed on the CPI. Once investors start feeling the heat of inflation, they are bound to change their investing strategies and look for alternate avenues to invest their capital. An investor who receives about 20% on his/her dividends on an investment stands to lose the value of the investment when the inflationary adjustment on the currency is 20% or more. Governments also keep a close eye on the CPI. There are several measures that a Central Bank or the Federal Reserve can take to ensure that CPI remains within acceptable levels. The CPI is also used to adjust payment disbursements to Social Security beneficiaries, military and federal service retirees. The CPI is also a guideline in adjusting the income tax structure to prevent inflation-induced increases in taxes. All these actions have a very direct impact on the forex market. In China, for example, due to the economic boom in recent years, people are making more money than before. As a result, the purchasing power increased, and prices were raised to counter the difference. Such a cycle of increase in wage and purchasing ability is bound to send inflation through the roof. A CPI report can highlight this trend and encourage the government to take remedial steps. The CPI can also sometimes be affected by a hike in price of a particular commodity. For example, a surge in oil prices can affect transportation, food, utilities and retail sales and, as a result, stretches the budgets of the working class. In this case, a major increase in the price of one commodity can trigger a domino affect, which would affect the strategies of investors and traders in the forex market.
  13. Whether it is in the millions or thousands, trading in the Forex is a bit risky. There are a lot of players involved and if you don't arm yourself properly with knowledge about the Forex you may just get swamped. The Forex is the largest most vibrant market in the whole wide world. The financial world has never had a market that involves so much transaction. Over a trillion dollars worth of different currencies exchange hands everyday. Some losing in the trade, while some hit the jackpot and make tons of money. The Forex is characterized by its unpredictability and the liquidity because it deals with foreign currencies and each one's value influenced by their own country. That's why anyone who is greatly considering joining the Forex trade should think twice, thrice and maybe even ten times before doing so. This is not an arena for the weak and nervous. The Forex is a very complex financial arena and only those with enough knowledge, experience and financial capability can join the foray. Managing the risk factors is a priority task for those professionals who do this everyday. They direct and manage accounts from their investors, full confidence is placed on them and their client's success is also their success. Some professional Forex brokers have placed high-value on their credibility. The more clients they have the more they earn as well. They make a profit by eating a slice of their client's profit. If they have made a name for themselves in the Forex trade, they don't need to go look for clients; the clients will look for them and invest. There are those however who wants to manage their own portfolios. A word of caution though, educate yourself first about the trade. Learn the ropes and tricks of the game before throwing your hat in the ring. Try to gain access to many self learn and self study websites that can impart their knowledge with you. Try out the website of the federal Commodities Futures Trading Commission (CFTC), there they offer consumer reports as well as articles about applicable laws in Forex trading. Many Forex management firms maintain a website that offers free online tutorials and brochures. You may need all the educational information about the Forex that you can get your hands on. They may not outright say it, but the best and the finest and most skilled Forex traders have learned all the secrets of the game. From trading signals technical indicators, and theories that could explain about the market behavior. When you have mastered these skills, you can have a more accurate prediction of the direction of the market resulting to lower risks and higher profits. Even when dealing with money managers they have to be knowledgeable about the trade so they can be on top of their investments. Have a constant conversation with your broker and be updated about your account. For the self-traders, some of them are very admirable to have the courage to act as their own money managers. As with any business, success will come only after hard work and diligent research. With Forex trading you should always be on your toes for developments. A wise Forex trader knows that that learning and educating about Forex trading never ceases.
  14. Todays current futures market is quite unlike the futures of the 19th century. Todays future market is a worldwide one that includes manufactured goods, financial currencies and treasury bonds, and agricultural products. When you speculate on futures it is not the actual good that is speculated upon rather it is the contract for the goods that is traded as value. Every futures contract includes a buyer and a seller. The following is an example of a futures speculation: A farmer agrees to deliver 1000 bushels of corn to a baker at a price of $5.00 a bushel. If the daily price of corn futures falls to $4.00 a bushel, the farmer's account is credited with $1000 ($5.00 — $4.00 X 1000 bushels) and the baker's account is debited by the same amount. Futures accounts are settled every day. Using the above as an example this is how the contract settlement would play out: If the price of corn futures is still at $4.00 the farmer will have made $1000 on the futures contract and the baker will have lost an equal amount. However, the baker can now purchase corn on the open market at $4.00 a bushel — $1000 less than the original contract, so the amount he lost on the futures contract is made up by the cheaper cost of corn. Also, the farmer must sell his corn on the open market for $4.00 a bushel, less than what he anticipated when entering the futures contract, but the profit generated by the futures contract makes up the difference. Speculators profit by daily fluctuations in the futures market by choosing to buy from the seller (buying short) or from the buyer (buying long). The FOREX market has advantages over the futures market. FOREX is the largest financial market in the world. It is a liquid market and stop orders can be executed more easily and with less slippage than in other markets. The FOREX market is open 5 days a week, 24 hours a day. Traders can take advantages of opportunities as they become available. FOREX transactions are usually instantly executed. FOREX transactions are commission free. Brokers earn money on the spread. Some investors feel that due to built in safeguards that FOREX trading is safer than futures trading.
  15. One of the cardinal rules of Forex trading is to keep your losses small. With small Forex trading losses, you can outlast those times the market moves against you, and be well positioned for when the trend turns around. The proven method to keeping your losses small is to set your maximum loss before you even open a Forex trading position. The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. With your maximum loss set as a small percentage of your Forex trading float, a string of losses won`t stop you from trading. Unlike the 95% of Forex traders out there who lose money because they haven`t applied good money management rules to their Forex trading system, you will be far down the road to success with this money management rule. What happens if you don`t set a maximum loss? Let`s look at an example. If I had a Forex trading float of $1000, and I began trading with $100 a trade, it would be reasonable to experience three losses in a row. This would reduce my Forex trading capital to $700. What do you think those 95% of traders say at this time? They would reason, "Well, I`ve already had three losses in a row. So I`m really due for a win now." They would decide they`re going to bet $300 on the next trade because they think they have a higher chance of winning. If that trader did bet $300 dollars on the next trade because they thought they were going to win, their capital could be reduced to $400 dollars. Their chances of making money now are very slim. They would need to make 150% on their next trade just to break even. If they had set their maximum loss, and stuck to that decision, they would not be in this position. Here`s a perfect illustration why most people lose money in the Forex trading market. Let`s start out with another $1,000 float, and begin our Forex trading with $250. After only three losses in a row, we`ve lost $750, and our capital has been reduced to $250. Effectively, we must make 300% return on the next trade and that will allow us to break even. In both of these cases, the reason for failure was because the trader risked too much, and didn`t apply good money management. Remember, the goal here is to keep our losses as small as possible while also making sure that we open a large enough position to capitalize on profits. With your money management rules in place, in your Forex trading system, you will always be able to do this. by David Jenyns
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