Currency Trading - How to make a consistent profit

Would a travel agent barter for currency trading?

admin — Tue, 23 Feb 2010 13:57:29 +0000

Hi,

I am thinking about taking my wife on a nice vacation. What I want to know is do you think a travel agent would give me a nice discount for a trip to say Sandals in exchange for my knowledge of currency trading?

I think it would be a fair trade off. Me showing them how to make money everyday from trading, but what do you think?

Forex Trading Online – Forex Currency Trading

admin — Sat, 20 Feb 2010 16:45:11 +0000

Check it out! Visit StockTips.Weebly.com forex trading forex trading online trade forex forex currency trading forex trading system forex trading software forex day trading currency forex online trading automated forex trading learn forex trading forex trading platform global…

Currency Option Trading For Beginners

admin — Tue, 16 Feb 2010 17:40:52 +0000

For beginners, it is ideal to start with a currency trading platform. It gives you stock trading options. The software trading application provides you with a much easier guide. This makes it handy for beginners, making it a good learning tool to start with.

You can now transact business in the comforts of your own home. You will not have to worry about making a first timer mistake because the program has a built-in trial trading feature. It gives you an option to practice and get used to the program, without losing any money. When you are confident of your trading strategies, you can now start the application and perform trade.

Beginners can really benefit from forex trading. It has a technical analysis tool that helps you in your decision making.The forex platform is the most convenient way for small time entrepreneurs to trade with.

It has a technical analysis tool, which gives you updates and interpretation of the movements, in the volatile market. The analysis tool helps beginners make the best marketing decision. This provides beginners with an informed decision for their trading needs.

The various features of the software make currency trading profitable. You do not need to be an expert in order to anticipate changes in the market. The technical analysis tool provides you the essential things you need. You can now be able to predict the flow of the market. This gives you a heads up to make the necessary changes needed in your marketing strategy.

By: Nidhi Bajoria

100 Pips in Under 25 Minutes – Easy as ABCD! (Forex Trading)

admin — Sun, 14 Feb 2010 18:59:44 +0000

You read that right… how to earn 100 pips (that’s $100 if you trade just 1 mini-lot) in just under 25 minutes! An overview of the ABCD pattern and how to use it together with Fibonacci retracements extensions. … fxKnight forex training fx currency trading Black Knight markets invest learn education

Money Management – Trading With Low Risk High Reward A Live Example

admin — Sun, 07 Feb 2010 02:42:27 +0000

Here we are going to look at some live examples and show you some techniques to enter and set stops to target low risk high reward trades.

Last week we showed you this in the B Pound and our view was right and we made a great profit.

Now let’s look at another live example.

1. Never Buy Dips without confirmation

One of the biggest mistakes novice traders make is to buy into dips or sell into resistance.

Most traders will buy into support even if prices are going down and then they hope support holds.

This is a great way to lose your money “hope” should not be part of any traders vocabulary.

2. Getting The odds on your side

Never ever trade unless price action or momentum supports your view.

If you want to buy into support or sell into resistance wait for it to hold and trade when the momentum turns – You then have the odds on your side.

It will also stop you trying to predict where price action may go.

We did just that shorting the B Pound US Dollar.

We waited for resistance to hold and then used the stochastic indicator (read up on it’s a great momentum indicator) to enter.

As soon as the stochastic indicated waning price momentum by crossing with bearish divergence we went short.

Put the stop behind the resistance and targeted the bottom of the range and thankfully it went well.

This trade had tight stop, price momentum on our side and clear target.

Why confirmation is so important

It stops you imposing your view on the market and will keep you out of losing trades.

A good example was last week we wanted to go short the Yen.

Pull the chart up at a chart service futuresource.com (is a good one)

Here we will use the futures IMM contract but cash is same logic.

We wanted to sell last week but prices rose but we didn’t jump in we need confirmation.

So we waited for stochastics to cross with bearish divergence.

It never came.

Prices broke through resistance and are going up.

The fact we waited for confirmation stopped us imposing our view on the market and saved us a loss.

Outlook for Yen

We are still interested in the short side of the yen and would look for the next level of resistance.

There is heavy resistance at the 8800 level on weekly and daily charts.

We would expect the rally to fail into this area and will look for confirmation from a stochastic crossover with bearish divergence.

This will if we can get it give us clear stop point and with price momentum on our side a target of the lows.

Even if were wrong this trade if the set up comes to fruition will give us low risk and high reward.

Money management is all about keeping risk low and profit potential high.

If you learn to wait for confirmation rather than jumping to soon you will have the odds on your side.

By: Sacha Tarkovsky

Currency Trading Guide – Get Started Today!

admin — Fri, 05 Feb 2010 23:30:26 +0000

What is Currency Trading?

Currency trading is the buying and selling of currencies from around the world. It is the largest and most active trade happening, making trillions of dollars daily. Unlike other trade like stock exchange, currency trading has no specific time of trading. It happens 24 hours a day, 7 days a week.

Currencies

In currency trading, there are currency pairs. A currency pair consists of two currencies, one of which is being bought and the other is the currency used to buy the other currency.

Take a look at this example: GBP/USD where GBP is the British Pound. The GBP is what we call the ‘base currency’ which has the initial value of 1. This is the currency being bought. Next is the USD or the US dollar. This is what we call the ‘quote-currency’ and has the value of how much one of the base currency is worth. For example: EUR/USD 1.2436, one Euro is worth 1.2436 US dollars. If you need 1000 Euro, you’d have to exchange it for 1243.6 US dollars. Other major currencies traded are Canadian dollar (CAD), Japanese Yen (JPY), Australian dollar (AUD, and the Swiss Franc (CHF).

The Spread

In currency trading, a currency pair has a corresponding ‘bid’ and ‘ask’ price. The ‘bid’ price is how much the base currency is being sold by the currency broker while the ‘ask’ price is how much the currency is being bought by the trader. The bid price is usually lower than the ask price and this is where sales are made by the brokers. The difference between the ‘bid’ and ‘ask’ price is called the ’spread’.

Changes in the Currency Values

Knowing how currency values changes is important in currency trading. In a nutshell, buy a currency when its value is low and sell it when its value is high. The changes in currency values depend on political and economic events. Foreigners going in a country triggers currency exchange as well as large purchases of commodity from one country to another. Also, we should not forget the influence of speculators in currency trading. They speculate on the increase or decrease of value of a currency therefore will make decisions in advance. It is important to be updated in these influences to the trade to be able to keep up with the fast-paced volatility of the currency trade.

Why Venture on the Currency Trade?

As mentioned, currency trading occurs 24 hours on a daily basis. Traders can decide when to trade their currencies. As changes could happen any time, the trader should always keep watch on the best time to trade. Currency trade does not need a big capital to start. Beginners can start with small amounts and eventually increase their trading resources. There is also no need to play on all currencies on the market. A novice can focus on two currencies at first while getting the hang of it and then expand later on for bigger profits.

Risks in Trading

Naturally, like all trading, there are risks. A trader should keep in mind that the risk in currency trade is high and wrong decisions could lead to losses. Playing safe is okay but the higher the risks, the higher the profit. Decisions are vital so it is best to ask advice from the expertise of brokers whenever necessary.

By: Jeff C Daniels

Currency Trading Guide : Best Currency Exchange Rates

admin — Fri, 05 Feb 2010 08:58:53 +0000

Find the best currency exchange rates by looking at whether a country is making more money than it is spending. Use currency trading exchange rates to make money that is not tied to the stock market or real estate prices with advice from a financial consultant in this free video on currency trading and investing. Expert: Roger Groh Bio: Roger Groh is the founder of Groh Asset Management. Filmmaker: Bing Hu

Money Management and Forex Trading – The Key to Bigger Gains

admin — Fri, 05 Feb 2010 02:38:22 +0000

Money management is a bit like sex, we all do it but we don’t talk about it much yet, if you don’t employ proper money management you won’t win. Let’s look at some basics to do with money management.

Money management is the difference between making stellar gains or wiping your account out. Here are some important points to keep in mind when adding it to your forex trading strategy.

Risk & Reward

Risk goes with reward this is common knowledge yet, many traders try to restrict risk so much they actually create it and ensure they lose.

For example day traders think their taking small risks as their stops are close but their 100% guaranteed to lose over time because all short term volatility is random.

The risk looks small but the odds are stacked against them.

Another example of trying to restrict risk to much is trailing a stop to close and getting stopped out by normal volatility and sees the trader get stopped out to soon.

These traders need to make a study of standard deviation of price part of their forex education.

Betting to Win

Just like the successful card player you need to load up your bets on high odd hands and fold losers quickly. When you have a high odds trade denoted by your forex trading system up your bet size.

You here many traders bang on about risking 2% per trade but this is ridiculous for most traders.

For example on $10,000 account that’s $200! How close would your stop have to be?

To close and guarantee your stopped out by volatility.

If you want to win bet 10 – 20% on your high odds trades.

Stop placement

In forex trading most traders like to trade with stops behind support and resistance and you will notice on many occasions how many times a price spikes through the stop in the day and then closes below it.

If you can always use a “stop close” this will prevent from daily volatility hitting your stop in the day session or if you cant keep an eye on the market use “at or in the money options”

Trailing a stop

If you are long term trend following you need to give the market plenty of room to breathe and keep your stop back. Don’t jack it up after a day or so like most traders do – leave it alone. When you have good profits move it behind key support say at 40 day moving average penetrated on a close basis which works well.

If you want to follow long term trends, you are going to have to accept that you will give a lot back at the turning point – but if you get 60% of the major trends you will do well.

Targets

I find stop trailing hard and like to work with a target and get out when its hit.

If the move carries on so what? I am happy, as I got what I want.

In shorter term swing trading, targets are essential as these smaller profits can disappear quickly.

Finally Remember This:

How you deal with risk, will be the difference between you losing or winning at forex trading. Try and restrict risk to much and you will guarantee you lose, but take meaningful risks at the RIGHT time, with courage and conviction and you could enjoy fantastic currency trading success.

Remember the old gamblers saying:

“There’s a time to hold them, a time to fold them and a time to get out of town fast”

Its very applicable to forex trading and money management!

By: Monica Hendrix

Money Management Tips for Successful Forex Trading

admin — Thu, 21 Jan 2010 15:40:08 +0000

If you are trading on the forex market or are considering doing so, you are already aware of the great profit potential that exists in forex. While the profits can be wonderful, they only exist because of the great risks also involved with forex trades. There are many systems that can be used which have demonstrated good results in back testing or previous live trading, but the reality is that no system is 100% and the market can move in any direction unexpectedly at any time. Therefore, it is essential to use proper money management techniques for long term growth potential to avoid large losses which may cause you to lose all or most of your investment capital.

These tips should help you to minimize losses while maximizing profits. Almost all forex traders will tell you that money management is the primary key to success in forex.

1. Always use a stop loss. Some traders may feel that they are sure of a trade based on several indicators pointing to a trend, and that they don’t want to use a stop loss to allow the trend to develop fully. While it may be true that eventually the price of any currency pair will reach a certain profit target, the fact remains that it may make a major move in the opposite direction first, which may lead to a margin call by your broker or other losses which cannot be sustained.

2. Determine the weekly or monthly profit level goals you would like to achieve based on the projected results for the system you are using. Take into account the success rate (percentage of winning trades) and average number of trading opportunities your system is likely to present. It is recommended to be conservative in your goals to allow some room for weeks or months when the results do not fully meet the projections.

3. Determine the risk you are willing to take or need to take to achieve the profit goals you set. Keep in mind both the percentage amounts of your total balance that you will risk in each trade and also the maximum you are willing to risk at any one time combining all of your open positions. Figure your stop loss according to your system, some systems will recommend a stop equal to or less than your profit target, others may recommend a a larger stop to allow some cushion before the price hits your profit target. Then, determine the number of lots you will trade so that if your trade is a losing trade, the amount of money lost will equal the percentage of your balance you are willing to risk on that trade.

4. Once you have these limits in place, execute your trades with these stops and targets every time. Stick to your plan, don’t get greedy when things are going well and don’t fear when some of the trades don’t go your way. Stick to your resolve and have faith in your system. All traders experience losses, you will be no different, but if you stick to a predetermined risk plan as a percentage for each trade, you will always live to trade another day.

Putting these tips into action will put you on the path to the discipline needed for success in forex. Believe in yourself and the rewards can be great for you, not only financially but personally as well.

By: Joe Phelps

Is it possible to turn £5,000 into £500,000 trading currency CFDs within 2 years?

admin — Tue, 19 Jan 2010 07:25:20 +0000

I am nearly 18 and I should have saved up £5,000 by this age. I’m looking to trade currency CFDs (Contracts for Differences) starting with my £5,000 in savings. What I’d like to know is if it would be possible to parley my £5,000 investment into £500,000 within 2 years trading currencies, and if it has been done before by anyone?