Posts tagged trading

3 Simple Forex Secrets to Get Your Forex Trading Off to a Successful Start

By on December 20, 2011

How would you like to know some forex secrets? Of course you would. I’d like to let you in on 3 simple forex secrets which are hardly known to the average person. Please keep your eyes glued to this page and hopefully find these tips helpful in unlocking your forex trading success.

Even though there have been advances in computers and software applications, these changes have made little difference to the number of winners. The market is indiscriminate in choosing it’s victims, which is why you need to do your due diligence.

To become successful at trading forex is by no means an easy feat. You’ll need to be very disciplined in how you trade which is inextricably connected to your emotional control. The first secret to being financially successful in forex can simply be by following your plan and not deviating because of the strong effects of emotional interference.

The second secret that I’d like to inform you on is that you must take the time and effort to learn the basics of fundamental and technical analysis. I know that this may sound quite daunting, however, once you are familiar with these tools for assisting your forex trading decisions, you’ll actually start to enjoy your trading more, while at the same time being able to open more profitable positions. You will also benefit from increased confidence.

The third secret involved is automated trading by using expert advisors. Expert advisors are software programs which are written to be utilized on a metatrader 4 platform. This platform is offered by many forex brokers. Expert advisors take away the need to constantly monitor your trade and protect you by keeping your emotional influences to a minimum. But beware, not all forex robots are made the same and even the good ones need continual tweaking for optimal performance.

Anybody can learn how to do Forex trading and anybody can win at it, you only need a simple system. However, getting a disciplined mindset, is harder and is really what separates winners from losers but the good news is it can be done. So rather than look for the secret of success from someone else, look within and you will find the key to unlocking huge profits.

If you follow the 3 forex secrets mentioned above and take the time and effort to develop your understanding of the forex market, you will be well on your way to become a successful forex trader.

Are you ready to become a Forex trader? Sign up for John Eather’s Free eCourse and discover more Forex Secrets. Keep up to date with the latest information on Automated Trading. Go to http://www.MoneyMakingFxTrader.com to get more details.

Article Source:http://www.articlesbase.com/finance-articles/3-simple-forex-secrets-to-get-your-forex-trading-off-to-a-successful-start-1660026.html

This entry is filed under Business and tagged forex, secrets, simple, start, successful, trading.

Forex Charts Are a Must-Have Tool to Expand Your Trading Successes

By on December 19, 2011

Foreign exchange is always an important consideration, whether you are traveling abroad for vacation or your job. Due to it’s ever changing nature, it is extremely problematic to predict the market’s movements in the future.

Forex charts are a very convenient tool which are reasonably simple to use and very informative. These charts come in come in weekly and monthly forms which show past data. You can easily recognize how the Yen is progressing or what the Dollar has been selling at from just a quick peek. These charts summarize the currencies history and their present values.

All leading currencies along with less notable ones are addressed. So if you’d like to change GBP to the EUR or the JPY to the AUD, then you’ll be able to get this information quickly.

A chart is a pictorial representation of figures, thus making it showing clearly for our better understanding the movements of the assorted currencies.

This differs significantly from tables and text of statistics. Based on the currency movements in the past, you could make future predictions with higher confidence. The charts are constantly updated to always reveal the latest information. Apart from being informative, these Forex charts are flexible as well.

You are able to look up the exchange rate of any currency for any time period. The rates from as far back as a decade can be accessed from this thorough resource. You don’t need to be a genius to read and follow these real time charts. They display the highs and lows of all the exchange rates.

Several types of charts exist, such as single currency charts and combination exchange charts which show 2 currencies. More advanced and elaborate charts are accessible if required.

The internet is the perfect place to conduct some research or for examining all the trends once in a while is necessary. But if you will choose to be a serious trader, you need to have access to a these charts much more readily available, without having to go to a Web site. That’s why trading software gives you Forex charts, too but you need to have an internet connected always.

Instead of referring back and forth between two or so charts, you can get all the information you need in one color coded chart. Forex charts may be a panacea to your trading dilemmas assisting you to reaching your financial goals much faster.

Make certain you sign up for John Eather’s informative eCourse and reports about Forex Charts. Obtain the most cutting-edge info about Online Forex Trading. Take a look at http://www.MoneyMakingFxTrader.com now for more details.

Article Source:http://www.articlesbase.com/finance-articles/forex-charts-are-a-musthave-tool-to-expand-your-trading-successes-1657150.html

This entry is filed under Business and tagged charts, expand, forex, musthave, successes, tool, trading.

Currency Trading Basics : What is a Pip?

By on December 6, 2011

Many new traders start out with automatic forex trading using a forex robot without really understanding some currency trading basics. Not surprisingly, when you are relying totally on forex trading programs without some basic fx knowledge this can often lead to problems.

You do need to know a little bit about currency trading basics and the terminology and structure of the forex market before you let your forex robot loose with any real money.

In this article we will look at pips, what they are and why we use them.

First you should know that ‘pip’ simply stands for Percentage In Point. Pips are sometimes called points and you may find it easier if you think of them that way.

Pips are used to measure changes in the price of a currency pair. So you might see a report that EUR/USD fell by 10 pips this morning. Why don’t they say it in dollars and cents? The reason is that not all forex trades involve the dollar, and even where they do, it may not be the quote currency. If your pair was EUR/JPY, you would not want to measure changes in dollars and cents.

At the same time, it is clearly going to be confusing to have changes in each currency pair expressed in the different quote currencies. Therefore we use pips.

One pip is the smallest increment of the quote currency in any pair. In most cases, this means 0.0001 units of the quote currency. The quote currency is the second one in the pair as it is normally written, so in the case of EUR/USD the quote currency is the dollar. This pair is usually quoted to four decimal places, e.g. 1.3875. If it falls to 1.3874, it has fallen one pip.

In the case of EUR/USD and other pairs with USD as the quote currency, one pip is $0.0001 or 0.01 of a cent. Doesn’t sound much, right? But because of the high leverage that you can use in automatic forex trading, with a mini account you are likely to be dealing with lots of $10,000. Then one pip is $10 and a 10 pip movement in the right direction would give you $100 profit (without taking account of spread or broker costs). Not bad when your total funds might only be a couple of thousand dollars.

To calculate the value of a pip in dollars when the dollar is the base currency, for example USD/CAD, you will need to do one more calculation, which is 0.0001 divided by the exchange rate. Say the exchange rate was 1.1180. 1 pip would be 0.0001 Canadian, divided by 1.1180 gives 0.0000894. So in this case 1 pip would be 0.00894 of a US cent.

You should also note that the situation is a little different when the Japanese yen is the quote currency. One yen is worth a lot less than one US dollar, closer to the value of one cent, so for the sake of cross currency comparison, yen pairs are usually quoted to only 2 decimal places. This means that for a pair like USD/JPY, 1 pip is 0.01 yen. Divide by an exchange rate which might be around 100 and again one pip is worth approximately $0.0001.

These calculations will normally be done automatically for you in your broker account, so that you can always see the value of your balance and your open trades in US dollars or whatever currency your account is held in. However it can be useful to understand how the calculations are done. Sometimes you might want to work out ‘what if’ situations instead of relying on automatic forex trading, and then you can set up the formula for yourself in a spreadsheet.

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Article Source:http://www.articlesbase.com/finance-articles/currency-trading-basics-what-is-a-pip-1636484.html

This entry is filed under Business and tagged basics, currency, pip, trading.

1 Biggest Options Trading Mistake Ever

By on December 1, 2011

Recently, I have been answering options trading questions posted by options trading beginners at my website and it amazes me to find that MANY of these questions surround a single theme. Some of these questions are like:

“I just bought a call option, how do I take profit?”
“I bought a put option at XXX strike price, so what does it mean for me to hold this put option?”
“I think I made some money on my call options but how is profits calculated in options trading?”

Options trading beginners asking questions like that are making the biggest options trading mistake ever made by beginners and that is… Buying options without knowing completely what options is in the first place!

It never fails to amaze me how many people are buying options without first knowing what options are and what they do in the first place! Incredible but true! This is the reason why so many beginners lose their shirts in options trading. Stock options, as a leverage instrument, is merciless when it comes to losses especially when you don’t know what you are doing and that has resulted directly in many horror stories surrounding options trading.

Would you drive a car without knowing what a brake pedal does? Would you operate a new machine without knowing what all the buttons does? Why then would you buy options when you don’t know what everything in options trading mean?

After pondering hard on this question of why beginners are buying options when they don’t even understand what options does in the first place, I arrived at the conclusion that too many beginners think buying options is as simple as buying stocks. In stock trading, all you have to do is to choose your favorite stock and then buy it. That’s all you need to do. However, in options trading, there are options of various strike prices as well as expiration months, so, how are you to know which single option to buy in order to fulfill your trading objective if you don’t understand the difference between strike prices and the effects of different expiration months?

Amazingly, a lot of beginners today continue to make this single most deadly mistake and then when they get stuck in a trade, they try to find “quick fixes” on the internet, which of course, doesn’t exist. Perhaps we are now living in a world of quick information and a spirit of adventure and trial and error such that many people think that they can learn options trading the same trial and error way. Of course you can but it will eventually lead you back on the road to learning about what options is completely and the difference is that you would have paid thousands of dollars in school fees to the market. Most deadly of all is that the losses would have affected your trading confidence and cast a shadow of fear in your heart, leading to emotional decisions in your future trading. Yes, it can break your options trading for life!

In conclusion, there is a lot to learn about options and small changes like buying a different strike price can lead to very big end effects and if you don’t know what all these does in the first place, how are you to optimize your profits and minimize your losses? In the end, all options traders who took the easy way out (of course I would regard that as the hard way out) of simply taking the plunge and learning from the experience would still come back to getting a proper understanding of options. I recommend all of you who are contemplating options trading as part of your investment arsenal to learn completely what options is and what it does BEFORE getting into your first trade. You can get such options trading education for free at http://optiontradingpedia.com without having to pay for weekend seminars costing thousands of dollars.

Jason Ng is the Founder and Chief Option Strategist of Masters ‘O’ Equity Asset Management ( MastersoEquity.com ) and author of an Options Trading education site, Optiontradingpedia.com. He is a fund manager specializing in options trading and his revolutionary Star Trading System has helped thousands.Article Source:http://www.articlesbase.com/finance-articles/1-biggest-options-trading-mistake-ever-1627742.html

This entry is filed under Business and tagged biggest, mistake, options, trading.

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