forex

Can You Afford To Invest In Forex? by Gerald Mason

An important question for all investors is: Can I afford to invest?

America always has been a land of promise. Whatever the course of our economy in the years immediately ahead, it is likely that opportunities for investment will be both numerous and attractive. Energetic new companies will emerge, looking for venture capital. Solid old companies will come forth with exciting new products. One industry or another will enjoy a boom period relative to the rest. And, of course, there will be casualties, too. There inevitably are.

For the observant investor this activity, properly evaluated and properly timed, will bring rewards. There will be chances to buy stocks before they have called attention to themselves and begun to rise, or to buy a Blue Chip, temporarily out of favor, at a depressed price. There will be stock splits, dividend increases, new issues, mergers, spin-offs, as well as the tidal rise and fall of stock prices all of this characteristic of the restless life of the market as a reflection of American business.

If you have never invested before, you are bound to be tempted.

Whether or not you yield will depend on your answer to the first hard question about investing: Can you afford it?

It is a lonely question and only you can answer it, for it involves not only how much money you feel able to invest, but what kind of person you are. Actually, it is several questions wrapped into one. You are asking, first, whether your financial condition permits you to invest; second, whether you can assume the risk implicit in stock investment; and, third, whether the market is a safe place for you to be.

Let's take them one at a time.

Your Financial Position: One point should be made clear at the outset: you don't have to be wealthy to invest. Among outsiders you can hear it said that stock ownership is a rich man's game. This can mean any of several things: that the market is too complicated for the little man, that brokers aren't interested in small orders, that only the person who can lose a bundle without feeling it should invest. However persuasive these arguments, they are all untrue.

The fact is--according to a recent New York Stock Exchange Survey--that almost half of all shareowners are in the $5,000--$10,000 a year income bracket. The median income of the 3,860,000 people who have become stockholders since 1956 is $6,900.

This would seem to suggest that an understanding of market operations is not too difficult to acquire, and that an attentive, interested broker is not too hard to find. It can also be assumed that these are shareowners with a fair appreciation of the value of a dollar and in no position to laugh off losses.

The goals a small investor can hope to achieve and the pattern of investment possible within the limits of a modest income will be outlined further on. The conclusion to be reached here is that investment is not a matter of enlarging a fortune you already possess, but of making available some money, however small the amount, to start with.

Regardless of your salary or income level, investment is possible if three conditions can be met:

1. If you are assured of a steady income.

2. If you are meeting your current running expenses and obligations.

3. If you have a cash reserve with which to meet unforeseen emergencies.

These conditions are, first of all, safeguards made necessary by the inescapable fact that stock prices fluctuate. Your judgment of when to buy, when to sell, and how long to hold should never be dictated by outside circumstances. Investment should be undertaken only with funds you can honestly and legitimately earmark as extra. With a regular income and your monthly bills paid, you know where you

stand and what amount can be put aside, in reserve, for any investment opportunity that arises. Or, of course, for emergencies. A sudden demand for ready cash--to pay a hospital bill, an insurance premium, or your income tax--should come, if possible, from your reserve, not from cashing in your investments. Whether your stocks are up or down, you are likely to take a loss--on the downswing because you may be selling at less than you paid, on the upswing because you may be selling at less than the potential.

A reserve also enables you to pick and choose. The fact that you have a few hundred dollars lying idle does not automatically mean the time is ripe to buy stocks. There's no hurry. As the professionals say, "The market is always there." If the trend of the market isn't to your liking, or the price of a stock is higher than you want to pay, a reserve allows you the luxury of waiting for a more favorable situation.

Finally, a reserve permits investment over a period of time rather than all at once. As you learn more about the market, you will hear both sides of this argument. Some experts feel you should back what seems to be a good situation with all the investment funds at your command. Others will warn against getting greedy, and advise partial investment here and there, at different times, to spread the risk. This is not the place to discuss the merits of these techniques. The point is to give yourself the flexibility of moving either way your judgment dictates.

Remember: your income need not be large, so long as it is regular and enables you to put aside a surplus after you have taken care of your bills and the possibility of trouble. The surplus need not be large, either. Saving, as has been said many times, is a matter of regularity. No one considers $5 too small an amount to put into a savings bank; don't worry if that's all you can save each week for your accumulating investment reserve. In most markets, brokers usually can suggest a number of sound, solid stocks, offering liberal yields, that sell for less than $20 per share.

There is no rule about the number of shares an investor must buy. If you can afford a single share (plus commissions), a broker will get it for you. As a matter of fact, through the Monthly Investment Plan you can buy a fraction of a share, although the Plan requires a minimum investment every month.

To invest in the Forex, you will probably need a float of around $400 and invest from $1 to $10 per pip to start with, then reinvest your profits.

So there is a much smaller outlay required to invest in Forex, although it is more speculative.

Good Forex software will help to reduce the risks involved.

Get the basics of online currency trading in Forex

High trading volume, long trading hour, extreme liquidity....a few of many qualities for which forex market is held in high esteem. Previously the market place was open for big business organizations. However, with the proceeding, the market becomes accessible to all. The advent of World Wide Web has made the process simple. Today anyone from any part of the world can land in the forex market to earn substantial profit. Below are a few advantages tagged with online currency trading in forex.

The method of online currency trading is remarkable for fast accessibility and ease of use. You can participate in forex trading from your own home. If you are a newcomer, you can search out important particulars regarding forex through online. Now, if you are an experienced player, online method gives you a chance to stay in touch with updates of the market just with a single click.

Online currency trading is again beneficial because of its real time accessibility. Real time accessibility in online currency trading helps a trader to remain up to date about everything latest in the currency market. A single click and you can access latest forex quotes, charts, graphs, currency assessment tools to name a few.

While trading in forex, you should either select a broker for yourself or you have to trade your own money in your own way. The broker if selected will be assigned to earn profit for you by his own techniques and strategies. Now, if you are trading your own money, you employ your own ideas and assessment to fetch gold in forex. Both the ways are good, but for a newcomer, the best part would be selecting a forex broker for assistance.

Now, how to select a good forex broker for a newcomer? Well, online currency market is ready to help you in this regard. Here, just with a single click, you can access innumerable online forex firms, who specialize in online currency trading. They offer assistance of experienced forex brokers. You can get your broker from these online forex firms. However, before selecting any forex broker for yourself, it is suggested to conduct a rigorous research about the authenticity of the broker and his work experience. This will help you to come up with the best forex broker of forex market.

Online currency trading helps a trader to remain alert 24 hours a day. Here, a trader can trade anytime in a day. It is actually the huge popularity of the market and its nature which made online forex firms to remain open throughout the day. Here a trader can chat with professional and get valuable tips and information regarding a winning online currency trading.

by acmarkets

Forex Charts - Using The ADX Indicator For Bigger Profits

If you're using charts, then you want to trade the strong trends - and the Average Directional Movement Index Indicator, or ADX, enables you to do this.

Wells Wilder developed the ADX, and outlined it in his classic book "New Concepts in Technical Trading Systems".

Let's look at this essential indicator in more detail - and see how to apply it on your forex charts, to give you greater accuracy when generating your trading signals.

Determining the Strength of the Trend

The ADX is a momentum indicator, which aims to measure the strength of the trend - and attempts to determine if the market is trending, or is trading sideways.

The Advantages of the ADX

A core belief of technical analysis is that a strong trend in motion is more likely to continue, than reverse. Therefore, you always want to be trading strong trends - as your odds of success are higher. The Average Directional Movement is a good indictor - and you should consider using it as part of your currency trading system.

The Technical Bit

For the boffin's out there, here's the technical bit - don't worry if you don't understand the calculation, its easy to use when visually plotted. The ADX is based on the comparison of two other directional indicators, both of which were also developed by Wilder, and they are:

Positive Directional Indicator (+DI) and the Negative Directional Indicator (-DI) to produce ADX as showed in the following formula:

ADX = SUM[(+DI-(-DI))/(+DI+(-DI)), N]/N

Where:

N: Refers to the period of calculation. The formula above produces the ADX line, which oscillates between 0 to 100 values. The +DI and -DI are both present and can be seen to make up the indicator.

You don't need to understand the above calculation to use the indicator - you only need to accept that the indicator works.

The indicator is easy to use when it's visually plotted - and you'll find it included, with most of the good forex chart services.

How to Trade using the ADX Indicator

The ADX it's not a bullish, bearish trading signal generator - and should never be used as such.

The ADX indicator simply indicates the strength of the trend - and other indicators should be used to enter, and exit trades.

Although the ADX fluctuates from 0 to 100, it rarely moves above 60.

Use the ADX in the following way:

Readings above 40 indicate the strength of the trend.

Readings below 20 indicate range trading and flat periods of consolidation.

You can use the crossing of +DI and -DI to determine the trend direction; when +DI crosses -DI upward, it's a bullish signal, on the other hand, when +DI crosses -DI downward it's a bearish signal.

The ADX line is a great momentum indicator and like the RSI (also developed by Wells Wilder), the ADX it will help you trade the strongest trends - and give you advance warning of changes in momentum.

The Bottom Line

If you want currency trading success, you can't just trade support and resistance levels, and hope they hold or break. You need confirmation of momentum to get the odds on your side - and the ADX indicator will assist you.

Final Words

New Concepts in Technical Trading Systems was published in 1978, and was one of the first trading books I ever bought. Every trader should make this book a part of his or her forex education. If you want to learn forex trading the right way, get the book, and use the ADX indicator to increase your chances of making big FX Profits.

by Steve Todd

Forex Trading - How to Deal with Currency Trading Volatility

You'll read a lot about the advantages of trading currencies - yet most traders tend to turn advantages into disadvantages - due to a lack of understanding. That's why 95% of currency traders lose money - and there's one thing in particular that wipes out more trader equity than anything else - volatility! Most forex traders simply can't deal with volatility.

Volatility, Deal with it or lose Money

Currencies are volatile, and in theory you can trade for thousands in profits every day, but the reality is:

Most traders make fundamental errors when trying to deal with volatility - and they're wiped out. The main error they make is with stop placement. These traders are so keen to avoid risk, that they actually create it. They do this by placing their stops incorrectly - thus giving themselves no chance of winning.

Volatility is also more of a problem to deal with when you use leverage. Many forex brokers will grant up to 400:1 leverage - and if you can't deal with volatility, then leverage simply compounds the problem.

Many forex traders are great at picking market direction, but these traders are continually stopped out by volatility. They're frustrated when they get stopped out - and then see the trade go onto make $10,000 to $30,000 - and they're not in!

Today, in our world of instant communications, currencies are more volatile than ever before. While you can see the big, long-term trends on any forex chart, the volatility within these trends is huge. This volatility will soon take your equity - if you don't have a forex trading strategy to combat it - and lead you to currency trading success.

If you want to succeed in forex trading, then you need to deal with volatility, so here are some tips to help you:

1. Do you know what standard deviation is?

If you don't, then look it up on the net right now - or read our previous articles. If you want to deal with volatility, then an understanding of standard deviation is a necessity.

2. You Need To Take Calculated Risks

Most traders have their stops too close, and although they appear to have a lower risk, the fact is that the odds are heavily in favour of their stop being hit. It may look a low risk on paper - but it's almost a guaranteed loss in practice - making it high risk.

A perfect example is the forex day trader - who thinks they can place stops using daily support and resistance - and keep risk low. However, all volatility is random in short time periods - so they say goodbye to their equity.

If you want to win at trading, then you need to be like a successful gambler - bet big when the odds are in your favour - and don't bet, when they're not.

Only place stops behind valid resistance and support - and be VERY selective with your trading signals.

3. Accept Drawdown in Open Equity

When trailing a stop, be patient - you need to keep it back far enough, not to be taken out by market noise. This is hard when you see thousands in equity wiped out in a day. However, keep your currency trading system firmly focused on the bigger prize - and accept that you'll have to take losses in the short term - to make longer term meaningful gains.

Volatility in forex trading is a huge advantage - but you must learn to deal with it correctly, in order to achieve currency-trading success. If you can't deal with volatility and risk, then you'll lose money - it's that simple.

by Steve Todd

Forex Trading - 4 Common Myths Guaranteed To Make You Lose

I read a lot of good information online to do with forex trading but most of the information I read is rubbish, yet many forex traders believe it. The myths I am going to cover here are mostly spread by so called market gurus and system sellers, so let's look at them.

First of all before we look at the myths, let's answer a question:

Why do vendors and gurus spread them, if they know they won't make money?
The answer is they make money out of them - by selling systems and courses that don't work for the user, but earn the vendor lots of money. These people simply appeal to the greed and naivety of novice forex traders.

Let's look at a few forex trading myths that are guaranteed to lose you money.

1. Day Trading Works

If it does, why do you never see a day trading track record that has made money?
Because of course it doesn't work, yet vendors continually sell them backed by a hypothetical track record - that's a track record based upon KNOWING the market prices! Well we can all make money doing that.

They sell their systems and dont trade them because they haven't got the confidence to trade their system because they know it won't make money, but they know some mug will believe it and buy the system.

For the record - all short term volatility is random and prices can and do go anywhere in a day, so trading daily ranges is doomed to failure.

2. Markets move to a scientific law

Well if they did there would be no market, as we would all know the price in advance! Duh?
This is obvious to anyone, yet people still fall for the myth of scientific theories such as Elliot wave, or the Fibonacci number sequence.

Elliot wave says markets move scientifically yet gives no objective theory to make money! Well that gets rid of that theory, lets look at another favourite:

The Fibonacci number sequence.

This was actually based on the copulation of rabbits and had nothing to do with finance, but was hijacked by the investment community.It actually predicts nothing in financial markets and the levels break as often as they hold - If you dont believe this try and see how quickly you lose your money.

Apart from the fact these scientific theories can't work, you have to wonder if it was that easy to make money with them, why the vendor will sell it to you, for a few hundred dollars, when he could keep quite and earn millions.

3. Buy Low Sell High Will Make You Money

Try it and you will lose.

No one can predict where a low point will bottom and when a high point will be reached. If you try and predict you are "hoping" that levels break or hold and the market will kill you.

If you want to win don't try and predict, act on the confirmation of a level holding and that means looking at price momentum.

4. You can earn a regular income

No you can't. You have seen the ads earn $3,000 a month, 20 pips a day etc - this myth doesn't need any explaining it's obvious its not true and anyone who falls for it, deserves what they get - an empty account.

If you want to win at forex trading make sure you don't fall for any of the above myths - everyone of them will ensure you lose your money.

The Good News is:

When you trade you take money off losing traders so if they believe the above forex myths it increases your chances of currency trading success!

by sacha tarkovsky

Forex Trading Strategies: Self Discipline Is The Key

The biggest appeal of Forex trading is that it offers instant wealth creation. But an offer is nothing more than an offer and the opportunity will pay off only for those who approach the foreign exchange market equipped with Forex trading strategies. The strategies should be well though out, unique if possible, and leave the trader with the understanding that tactics are only one useful element in the complicated world of Forex trading.

Regardless of whether you want to participate in day trading, position trading, or swing trading, Forex trading strategies will reduce your risk, but only if you have the discipline to stick with them. Traders who are undisciplined can turn the most sophisticated trading plans into hash, but a disciplined and flexible trader can see opportunities to take profgits from even the direst situations.

The Best Forex Trading Strategies There is a school of though among some Forex traders that the very best traders have convoluted Forex trading strategies and are simply blessed with a keenly developed market sense. They also share a belief that there is a faction among Forex traders who are privy to inside information on which they can base their Forex investment strategies.

But no matter what anyone believes, there are some common traits which separate the winners from the losers in the Forex trading arena. What are they?

The best Forex traders take the time to observer market patterns and put together strategies which raise their odds of making money. They repeatedly capitalize on the same knowledge
The best Forex traders never enter a trade without having an exit strategy. They set their getting in price, and they set their getting out price. If the getting-in price never comes around, they don't change it. When the getting-out price is reached, they exit. They know when to cut their losses, and when to lock in their profits. And they have the discipline to do both.

The best Forex traders never become greedy. They are much more comfortable making many small gains than they are trying for the grand slam. They are traders for the long term.

The best Forex traders recognize the wisdom of getting in when others are getting out of a position, and exiting a position when the crowd arrives. They are natural contrarians.

Anyone Can Do It, With A Little Restraint Forex trading strategies are only as good as the discipline of the trader who employs them. For those willing to exercise self restraint, the Forex markets can be very profitable indeed. As long as someone uses only risk capital for Forex trading, and sticks to a plan, there is no reason why he or she cannot become a success at Forex trading.

by Wade Robins

TRADING FOREX ONLINE ON MARKETIVA FREE $5 [REAL MONEY]

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Providing Opportunity Around the World Our mission is to provide opportunity for individuals around the world to trade on financial markets under equal conditions like traders operating in traditionally closed financial centers and institutions. In order to help individual traders make independent and knowledgeable trading decisions, Marketiva provides several types of service completely free of charge: an advanced charting system, daily research reports, market event alerts, expert discussion forums and several other free value added services. Marketiva also offers virtual trading desks within each customer account to make it easy for traders to experiment with strategies, improve their trading skills and get acquainted with the system before buying and selling on a live trading desk.

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by SINJOTARO

Forex Trading - Using Neural Networks for Huge Profits

Today, we are seeing the increasing use of neural networks in financial markets to help forecast prices with greater accuracy and the complexity and research is mind boggling. This article will look at the use of neural networks in financial trading and their profit potential.

The Human Brain V Computers

The human brain is one of the most complex objects if not the most complex object known to man. It is not just its superior processing speed and storage space that make it extraordinary, but more importantly, its ability to learn and adapt.

Neural Networks Defined

Computer scientists have tried to write software that allows computers to mimic the learning power of the brain (computers already have superior storage and processing speed) and neural networks aim to help a computer learn and adapt.

A neural network is essentially a system of programs and data structures that approximates the operation of the human brain. A neural network consists of a large number of processors operating in parallel, each with its own sphere of knowledge and access to its own databank.

A neural network is "trained" by being given large amounts of data and a set of rules.

A computer program can then tell the network how to react in response to an external event and initiate reactions based on the knowledge it has access to.

Therefore in forex trading, neural networks can learn how to trade based upon the data fed to them.

Do They Work?

The answer is at present the human brain is and always will be superior, due to the fact it can THINK independently. A computer can never achieve the learning power of the human brain as it can only work with the rules it's programmed with.

A computer program can trade, but do you need a neural network.

There are computer programs today, that don't use neural networks, that have rules that make money and neural networks don't have any advantage at all.

People think that technology can solve everything, but the markets are one area where simple systems can and do work best.

An Investment Fact

The fact is that 50 years ago 95% of forex traders lost and today the same ratio applies.

This is despite all the advances we have had in market research, computers and speed of information delivery. Keeps this point in mind if you want to win at forex trading:

Trading is an odds game and the application of science to predict is doomed to failure.

There will never be a neural network with the power to learn and adapt like the human brain, as it has to be programmed by a human and there are endless variables.

Keep it Simple For Success

If someone tries to sell you a program or service based upon neural networking, ask for their real time track record and see if you get one - chances are you wont.

People are always looking for science to help but in the markets forget neutral networks and play the odds.

Either with your brain or with a currency trading system, that's simple with just a few rules - that's all you need, don't look for more.

by sacha tarkovsky

Forex Trading for Beginners - Facts You Must Accept To Win

Enclosed you will find some facts that you MUST accept or you won't win at forex trading, so check them out and see if you could succeed in the worlds most excting investment.

1. Markets are Not Scientific

If you think you can win at forex trading by applying science forget it. Scientific theories don't and never will work because humans determine the price of anything and they don't move to scientific criteria!

2. Expect long periods of losses

No matter what system you use you are going top have periods of drawdown that last for weeks or months so get ready for them and be mentally prepared to take them.

3. Currency Trading Is Risky

Most people don't like risk and are duped by vendors who try and tell them they can trade with low risk and make a regular income - Ignore this advice.

Fact is:

The bigger the reward the bigger the risk - risk goes with reward pure and simple. If you don't like taking risks forget forex trading.

4. You can buy success

You will see lots of vendors promising to give you success, but the reality is they can't. Most rely on advertising copy with no evidence they have made any money for themselves!

Don't fall for this, the only person who can give you success is you.

If these vendors could deliver the gains a lot of them claim, they wouldn't need you - they would be to busy making money.

To win you are all on your own and that's no bad thing as we will discuss later.

5. More than 90% lose

Think about it 90% lose so why should you win? If you want to win then you need a "trading edge" Before you start trading think what your edge is and have confidence in it? If you can't think what it is you don't have one!

You may be thinking that's all a bit negative, so let's look at some facts that are positive.

6. You don't need to work hard

You need to work smart - this means not acquiring knowledge for knowledge sake, just getting the right knowledge you need and this wont take long to learn and furthermore:

7. Simple systems work best

A simple system in forex trading will beat a complicated one hands down.

Why?

Because it will be more robust in the face of brutal market conditions, in fact all the best currency trading systems tend to be simple.

8. Everything about currency trading can be learned

You may ask well if that's true why do so many forex traders lose?
The answer is they don't have mental discipline to succeed.

Currency trading is as much if not more so about mindset than just a method.

If you don't have the discipline to follow your method you have no method in the first place. You will have discipline if you develop your own method, you are confident in and that's why no one else can give you success.

9. Take calculated risks and win big

If you accept risk and can take calculated risks at the right time with meaningful amounts, you can win big - this due to the massive leverage at your disposal.

Confronting risk and accepting it, is one of the keys to successful currency trading.

10. Forex trading is simple

In fact it's a lot simpler than many traders believe and you don't need a university degree to win - the opportunity is open to all.

Just keep in mind to work at acquiring the right knowledge, accept risk, rely on yourself, have mental discipline and you can become a winner in the worlds most exciting and lucrative investment medium

by Kelly Price

Forex Trading – 2 Simple Tips to Dramatically Increase Profits

Enclosed you will find 2 simple tips that will help you increase your profitability dramatically and they can be incorporated in any forex trading strategy. These tips are not commonly accepted by most traders but as 90% of traders lose, we wont let that worry us!

Let’s look at these two simple tips and why they increase your profits.

1. Don’t Diversify

If you don’t risk much you won’t make much and that’s a fact.

If you have a small trading account all diversification does is dilute your profit potential. If you trade a small account don’t spread your resources to thinly – when you see a trade go for it and hit it with as much cash as you can afford.

You hear a lot of forex guru’s saying you should risk 2% per trade well, if you have a $10,000 account that’s $200.00! If you risk a small amount, you will end up getting stopped out to soon and never catch a major move or profit.

Risk 10 – 20% and be very selective with your trades. Patience is the key, only trade the really high return low risk trades.

Forex trading is all about taking calculated risks at the Right time – if you don’t like taking a risk find another profession.

2. Hold Your Stop Back

This leads on from the above point.

You already know that you have to risk meaningful amounts to make a lot and it’s a fact that most traders try so hard to avoid risk they actually create it.

They wont risk much as we discussed in point 1 and the most common group who do this are day traders, their stops are so close they are almost guaranteed to be stopped out.

The other critical error traders make is they move stops too quickly to lock in profits, as the market moves up.

The Result?

They are simply clipped out by normal volatility and bank a small profit.

Of course, the trade then continues the way they thought and piles up thousands or ten of thousands in profit and their not in!

Get used to holding your stop back, so that you are not clipped out by random volatile reactions.
This takes courage and conviction and most traders can’t do it. Sure they want big gains, but they simply can’t hold a big profit, as they get to excited or worried it will get away, so they bank early.

Hold the longer term trends and hold your stops back and work with a profit target to liquidate.

Don't Be Scared Of Risk

If you are, stay away from forex trading.

The fact is that most traders are terrified of risk, that’s why they only risk small amounts and can’t hold a profit. There risk control is so conservative, that they give themselves no chance of making meaningful gains and their risk control simply ensures they lose.

By: Monica Hendrix

FOREX Education – Getting the RIGHT Education to W

If you want to win at FOREX trading you need the right education. The fact is 95% of novice traders lose all their equity quickly, that’s not because they don’t work hard or can’t win - they simply put their efforts in the wrong area.

Let’s look at how to achieve currency trading success by learning forex trading the right way.

Use the Internet

You can get all the Forex education you need for free on the net, you simply have to look in the right areas, which we will explain in more detail in a moment.

A fatal mistake

Is to think you can buy success from a guru or mentor on the net.

Most of the information sold is junk or available free anyway.

Many traders are duped by attractive advertising copy, claiming that you can make huge regular profits by buying an e-book for $100 or so, but the reality is:

If the information was so good it would not be sold; these vendors would simply trade for themselves and the fact is they don’t.

They make money from selling you forex education NOT trading and their forex trading systems simply don't work.

If you can find a trader with a real time track record of profits, their information may be worthwhile, but trust me, there are not many who can provide this.

The best way is to do it on your own and you can get it all the Forex Education you need for free.
Working smart not hard

Trading is very different to many other ventures in life, in that the effort you put in has no relation to the money you make.

You get paid for getting market direction right not how much effort you put in.

You should as beginner either start with long term trend following strategy or try swing trading – NEVER attempt day trading.

Forex day trading simply doesn’t work, as the data is to short to be reliable and is meaningless.

More novice traders start with forex day trading than any other method and they lose – don’t fall into this trap.

Long term trend following suits the patient trader, while forex swing trading suits the trader who likes to trade a bit more and is less patient.

Basics

To start get an understanding of support of resistance and technical analysis.

Next, you need to integrate a few indicators to confirm price momentum into support and resistance levels and see the odds of them holding.

Below find some indicators that are great for triggering forex trading signals and determing price momentum:

Stochastics, Relative Strength Index (RSI), Average Directional Movement (ADX)

Below find some indicators to determine help you spot support and resistance (in addition to trendlines) and determine targets and strength of the trend.

Bollinger Bands, MACD and moving averages.

If you learn about all the above indicators, support and resistance and also how a breakout strategy works, you will have ALL the forex education you need.

This will help you put together a simple, robust currency trading system, that can make fx profits.

When devising a forex trading strategy the above will help you make money in swing trading or trend following and you should spend no more than 30 minutes a day.

A Simple way to Forex Profits

A simple system also works better than a complicated one, as its more robust in real trading, with fewer elements to break.

Many traders over complicate their system and think more is better, but the reverse is true.

Final Words

The above will get you started with your forex education for currency trading success and you will have the basics to build on to make great regular profits from forex trading in under an hour a day.

Finally, you wont have spent a cent finding out the basics for this success – good luck!

By: Kelly Price

Currency Trading – GET Bigger Profits Now With These Simple tips

Do you want more and bigger consistent profits? Then this article will show you how to increase your currency trading profits.

There simple to learn, easy to apply and will ensure your forex trading strategy gets a welcome boost in profits.

Here we’re going to assume you already have a methodology, you are confident in and just need to get bigger FX profits so let’s look at the tips.

1. Accept Volatility and Risk

All successful Forex trading systems understand volatility and use volatility to their advantage.
You can't have a profitable Forex trading system without taking calculated risks - and taking losses.

If you can’t accept risk, then don’t get involved in forex trading.

Many traders try to restrict risk so much, that they actually ensure they will lose – they’re simply stopped out all the time by volatility.

To make profits, the secret is to take a risk at the right time risk as much as you can.

2. Patience

One of the best ways to make big gains in currency trading is to be patient and wait for the best opportunities.

Many traders trade frequently and always like to be in the market in case they miss a big trend.

Focus only on the longer term trends and these don’t come around every week. There’s no connection between how often you trade, and how much money you’ll make.

3. Don’t Diversify Your Trading

Most Forex traders are generally investing small amounts of money - and diversifying simply dilutes gains, you wont make much if you don’t risk much.

If you see a trade and it looks good, then risk as much as you can.

4. Have courage

You hear a lot about how important risk control is in any Forex trading strategy - but having the courage and conviction to accept profits is just as important.

Do you really need courage to accept profits? Of course you do!

When a trader makes a profit they get excited – and the bigger the profit becomes, the more they’re tempted to bank it before it gets away, but this is a huge mistake.

As volatility causes dips in their open equity, the trader snatches a marginal profit.

In many cases however, if the trader had the courage to hold the trade for the longer term they could have made a huge profit.

Many traders lose - not because they were wrong in the direction of the market - they just were stopped out by a volatile counter move or simply banked early.

5 Money Management

Taking risks does not mean being rash - here are some Forex trading money management tips to keep in mind:

• Keep your stop in its original position - until the move is well underway and in profit, before moving your stop.

• If you’re trading a small Forex account, don’t diversify - concentrate on one trade only.

• If you are following the longer-term trends, don’t exit a trade until your Forex signals tell you to do so. Have the patience and discipline to hold on for the longer term.

To make big profits in currency trading, you only want to focus on the best moves.

Don’t be tempted to diversify too much - have the courage to hold on for the longer term big profits.

Also understand and use money management techniques that will control risk - and at the same time, take into account the volatility that currency trading presents.

Currency trading involves risk - and you need to confront it and win and the above tips will help you do just that when you trade FX markets.

By: Sacha Tarkovsky

Online Currency Trading - 4 Tips to Build Wealth Quickly

Online currency trading gives you the opportunity to build big capital gains.
Here we're going to look at some simple tips to help you build wealth quickly that any trader can use novice or pro - so, let's get started and look at the tips.

Most of the tips provided in this article are not accepted investment wisdom - but as most traders actually lose, so don't let that worry you!

So, let's look at how to build wealth in online currency trading.

1. Your On Your Own

If you think you can buy success from an e-book on the net from a vendor, you will lose.
If their advice was good, they'd be too busy trading, and making money for themselves -- No one else can make you rich, its down to you, but thats no bad thing, its easier than most fx traders think.

If you want to make money in online currency trading, it's easy if you focus on getting the right Forex education.

2. The RIGHT knowledge

It's a fact that currency trading is VERY simple and everything about currency trading can be learned, yet few traders succeed at making money.

These people think that the more Forex education they have, the better their chances of success.

They build clever, complicated currency trading systems, - but bad news is they don't work.
If you want to win at Forex trading, keep this in mind!

Simple systems are far more likely to make money than clever complicated ones.

Another advantage of a simple currency trading system is that it's easy to understand the logic.
From understanding flows confidence.

Confidence then leads to discipline - you need to be able to stay with your system through losing periods or you dont have a system at all.

3. Risk & Reward

Many traders try to restrict risk so much that they simply create it and guarantee they will lose.
They put stops to close and move them to quickly and want to spread the risk but if you want to build wealth in FX trading this is a huge mistake.

If you want to win at currency trading, then hit risk head on cheerfully.

If you see a trading signal that looks good, risk a meaningful amount.

Small accounts should risk up to 10% or more of your capital and don't diversify.

If you diversify on a small account, it will dilute your profits.

4. Have conviction with trading signals.

All traders want to make big gains from their online currency trading -- but they lack the courage and conviction to accept them.

This may sound odd, as we all want big gains, but our emotions in many instances ensure we dont accept them.

When most Forex market traders see a profit ( even a small one) they get excited and nervous.
The bigger it becomes, the more they want to take it before it gets away from them. When these traders see volatility cause a dip in their open equity, they get nervous and snatch a marginal profit.

What happens next?

The trade goes on to make $10,000 to $30,000, 50,000 or more and they're not in - they were right about the direction but didnt have the courage of their conviction.

Accept Risk - Learn Forex Trading Correctly and Have Courage

If you want to learn online currency trading and build long term wealth - learn the above tips and they will lead to currency trading success - good luck.

By: Sacha Tarkovsky

Forex Trading Strategy – The Ultimate Momentum Indicator for Huge Profits

Many traders in their forex trading strategy simply pick levels and buy or sell into them and hope they hold. This simply sees them lose, as they are hoping levels will hold and NOT acting on confirmation of price momentum to put the odds in their favor.

Here we are going to look at the ultimate momentum indicator that will help you time your trading signals with laser accuracy.

The momentum indicator we are referring to is the stochastic and it simply should be considered by anyone serious about making money in forex trading.

The logic

Of the stochastic is based on the assumption, that when a market is rising, it will tend to close near the highs of the session - and when a market falls, it tends to close near the lows.

Lets look at the calculation – although you don’t need to understand just as you don’t need to understand an internal combustion engine to drive a car – you can look at it visually which we will return to in a minute first:

The Calculation

The stochastic oscillator is plotted as two lines called %K, a fast line and %D, a slow line.

• %K line is more sensitive than %D

• %D line is a moving average of %K

• %D line gives the trading signals

It’s actually similar to the way a moving average is plotted.

Therefore consider %K as a fast moving average, and %D as a slow moving average.

The lines are plotted on a scale of 1 to 100 scale.

"Trigger" lines are normally drawn on stochastics charts at the 80% and 20% level – this indicates when markets are overbought, or oversold and a trading signal maybe generated.

Using Stochastics

The best way to get a feel for stochastics and how they can help your forex trading strategy is to look at them – you can see them free on many services and a good one is futuresource.com
The 80% value is normally used as an overbought signal, while the 20% is used as an oversold signal.

The signals are even more reliable if a forex trader waits until the %K, and %D lines turn upward, below 5% before buying - and in conversely, above 95% before selling.

The most reliable way to trade stochastics is to use the above as a warning sign and wait for the stochastic lines to cross with bullish or bearish divergence.

For example, buy when the %K line rises above the %D line, and sell when the %K line falls below the %D line.

Beware of short-term crossovers these can generate a false signal and cause losses.

The best crossover is generated when the %K line intersects, “after” the peak of the %D line.

Don’t worry if it sounds confusing it becomes much easier when you look at the set up on a chart service such as the one we referred to earlier and you will soon be getting the hang of them.

Why they are so valuable

Because they allow you to shift the odds in your favor instead of relying on hope when you trade into support or resistance you will shift the odds in your favor by knowing the strength of price momentum.

Stochastics are the ultimate timing tool for traders and allow you to enter your trading signals with the odds on your side. In any forex trading strategy you need to trade the odds and the stochastic is a powerful weapon that you can use for currency trading success.

Discover the stochastic indicator and you may be glad you did.

By: Kelly Price

FOREX Education – Getting the RIGHT Education to Win

If you want to win at FOREX trading you need the right education. The fact is 95% of novice traders lose all their equity quickly, that’s not because they don’t work hard or can’t win - they simply put their efforts in the wrong area.

Let’s look at how to achieve currency trading success by learning forex trading the right way.

Use the Internet

You can get all the Forex education you need for free on the net, you simply have to look in the right areas, which we will explain in more detail in a moment.

A fatal mistake

Is to think you can buy success from a guru or mentor on the net.

Most of the information sold is junk or available free anyway.

Many traders are duped by attractive advertising copy, claiming that you can make huge regular profits by buying an e-book for $100 or so, but the reality is:

If the information was so good it would not be sold; these vendors would simply trade for themselves and the fact is they don’t.

They make money from selling you forex education NOT trading and their forex trading systems simply don't work.

If you can find a trader with a real time track record of profits, their information may be worthwhile, but trust me, there are not many who can provide this.

The best way is to do it on your own and you can get it all the Forex Education you need for free.
Working smart not hard

Trading is very different to many other ventures in life, in that the effort you put in has no relation to the money you make.

You get paid for getting market direction right not how much effort you put in.

You should as beginner either start with long term trend following strategy or try swing trading – NEVER attempt day trading.

Forex day trading simply doesn’t work, as the data is to short to be reliable and is meaningless.
More novice traders start with forex day trading than any other method and they lose – don’t fall into this trap.

Long term trend following suits the patient trader, while forex swing trading suits the trader who likes to trade a bit more and is less patient.

Basics

To start get an understanding of support of resistance and technical analysis.

Next, you need to integrate a few indicators to confirm price momentum into support and resistance levels and see the odds of them holding.

Below find some indicators that are great for triggering forex trading signals and determing price momentum:

Stochastics, Relative Strength Index (RSI), Average Directional Movement (ADX)

Below find some indicators to determine help you spot support and resistance (in addition to trendlines) and determine targets and strength of the trend.

Bollinger Bands, MACD and moving averages.

If you learn about all the above indicators, support and resistance and also how a breakout strategy works, you will have ALL the forex education you need.

This will help you put together a simple, robust currency trading system, that can make fx profits.

When devising a forex trading strategy the above will help you make money in swing trading or trend following and you should spend no more than 30 minutes a day.

A Simple way to Forex Profits

A simple system also works better than a complicated one, as its more robust in real trading, with fewer elements to break.

Many traders over complicate their system and think more is better, but the reverse is true.

Final Words

The above will get you started with your forex education for currency trading success and you will have the basics to build on to make great regular profits from forex trading in under an hour a day.

Finally, you wont have spent a cent finding out the basics for this success – good luck!

By: Kelly Price

How You Can Make Ten Times Your Salary- with Day Trading

Day trading - no, it's not something that Bill Murray wished he had in Groundhog Day. It's a style of trading on the foreign currency exchange market in which a trader completes all his trades within a single day. In other words, he may make a few dozen - or more - trades in a day with the objective of buying and selling quickly and making a profit from the fluctuations in a currency exchange rate over the course of the day.

Sound complicated? Depending on the method or system that you use to pick your trades it can be. The idea behind day trading is that currency exchange rates are subject to fluctuations over the course of the day - they go up and down depending on who's buying, who's selling and what rumors are floating around. In fact, day trading in the foreign currency market is probably the single segment of any type of stocks, currency or futures trading market most affected by rumors and real-time, real-world happenings. A savvy trader who is quick on his feet can roll up the profits by paying attention to what the current news is doing to the currency exchange rates.

The currency market, commonly referred to as the forex (short for Foreign Exchange), is the most liquid market in the world. The latest statistics say that daily trading on forex is in excess of $1.3 trillion U.S. dollars. That makes forex the world's largest, most efficient market. A major part of the reason for the liquidity and volume of trade is the practice of day trading. The difference between day trading and other types of trading is in how long you hold your stocks (or in this case, your currency). In day trading, you hold nothing beyond the close of the day's market. Think of it as a game in which the object is to keep trading cards back and forth, increasing the value of your cards - but have no cards in your hand at the end of the day.

Of course, since the currency market is a 24 hour market, there really IS no market closing - so the rules change slightly. The currency market is open from Sunday afternoon to Friday afternoon, with trading going on all the time, so you can pick your times to trade rather than being locked into the Stock Exchange timetable.

How You Make Money in Day Trading People will tell you that the difference between a day trader and an investor is the length of time that each holds onto their stocks. That's a superficial difference. The real difference is in the mindset of short-term vs. long-term and liquidity. An investor buys something that he believes will steadily increase in value, and holds onto it for the long haul. A day trader rides the minute fluctuations in the currency market minute by minute the way a surfer rides a wave. Because you're trading in lots of 100,000, a tiny fluctuation can mean a big profit - or a huge loss.

Limiting Loss in Day Trading One of the hardest concepts for new traders to grasp is that of limiting loss. Let's say you make a trade for a currency that is heading down because you believe that it's near its support point - the point where it will rebound and start heading back up. Instead, it breaks the point and keeps heading down - you're losing money instead of making it. You have two choices - hold onto it because you KNOW it will start heading back up soon, or get rid of it and limit the amount of money you're going to lose. In day trading, the name of the game is limiting your losses and maximizing your wins - decide ahead of time just how much you'll allow each trade to lose before you sell it, and then STICK TO YOUR LIMIT. By the same token, decide how much profit you want to make, set a sell order for when the currency reaches that point - and sell when it hits the mark.

Know what you're doing. Day trading on the forex is like any other business. The people who make money are the ones who take the time to learn the market and understand the ins and outs of the trades that they make. Those who jump in feet first without learning the terms, rules and trends of the forex market are priming themselves to lose - and lose big. Remember, there's no such thing as high profit potential without equivalent risk. Before you jump in, take a course in trading, or read read read all that you can.

About the Author

More of Joseph Plazo's killer articles: Art of Unstoppable Wealth Building, Sneaky Negotiation Techniques, and finding Jobs in the Philippines

Discover Some Magic to Beat The Forex: The Elliott Wave Theory for Forex Markets

One of the best known and least understood theories of technical analysis in forex trading is the Elliot Wave Theory. Developed in the 1920s by Ralph Nelson Elliot as a method of predicting trends in the stock market, the Elliot Wave theory applies fractal mathematics to movements in the market to make predictions based on crowd behavior. In its essence, the Elliot Wave theory states that the market - in this case, the forex market - moves in a series of 5 swings upward and 3 swings back down, repeated perpetually. But if it were that simple, everyone would be making a killing by catching the wave and riding it until just before it crashes on the shore. Obviously, there's a lot more to it.

One of the things that makes riding the Elliot Wave so tricky is timing - of all the major wave theories, it's the only one that doesn't put a time limit on the reactions and rebounds of the market. A single In fact, the theories of fractal mathematics makes it clear that there are multiple waves within waves within waves. Interpreting the data and finding the right curves and crests is a tricky process, which gives rise to the contention that you can put 20 experts on the Elliot Wave theory in one room and they will never reach an agreement on which way a stock - or in this case, a currency - is headed.

Elliot Wave Basics

* Every action is followed by a reaction. It's a standard rule of physics that applies to the crowd behavior on which the Elliot Wave theory is based. If prices drop, people will buy. When people buy, the demand increases and supply decreases driving prices back up. Nearly every system that uses trend analysis to predict the movements of the currency market is based on determining when those actions will cause reactions that make a trade profitable.

* There are five waves in the direction of the main trend followed by three corrective waves (a "5-3" move). The Elliot Wave theory is that market activity can be predicted as a series of five waves that move in one direction (the trend) followed by three 'corrective' waves that move the market back toward its starting point.

* A 5-3 move completes a cycle. And here's where the theory begins to get truly complex. Like the mirror reflecting a mirror that reflects a mirror that reflects a mirror, the each 5-3 wave is not only complete in itself, it is a superset of a smaller series of waves, and a subset of a larger set of 5-3 waves - the next principle.

* This 5-3 move then becomes two subdivisions of the next higher 5-3 wave. In Elliot Wave notation, the 5 waves that fit the trend are labeled 1, 2, 3, 4 and 5 (impulses). The three correcting waves are called a, b and c (corrections). Each of these waves is made up of a 5-3 series of waves, and each of those is made up of a 5-3 series of waves. The 5-3 cycle that you're studying is an impulse and correction in the next ascending 5-3 series.

* The underlying 5-3 pattern remains constant, though the time span of each may vary. A 5-3 wave may take decades to complete - or it may be over in minutes. Traders who are successful in using the Elliot Wavy theory to trade in the currency market say that the trick is timing trades to coincide with the beginning and end of impulse 3 to minimize your risk and maximize your profit.

Because the timing of each sequence of waves varies so much, using the Elliot Wave theory is very much a matter of interpretation. Identifying the best time to enter and leave a trade is dependent on being able to see and follow the pattern of larger and smaller waves, and to know when to trade and when to get out based on the patterns you identify.

The key is in interpreting the pattern correctly - in finding the right starting point. Once you learn to see the wave patterns and identify them correctly, say those who are experts, you'll see how they apply in every facet of forex trading, and will be able to use those patterns to trigger your decisions whether you're day trading or in it for the long haul.

About the Author
More of Joseph Plazo's killer articles: Art of Unstoppable Wealth Building, Sneaky Negotiation Techniques, and finding Jobs in the Philippines

Forex Trading Signals: Do You Need Them?

Nobody has ever claimed that learning the Forex trading system was an easy one. In fact, one of the hardest parts is knowing the good entrance and exit points and is likely the most time intense. Using currency trading signals can greatly improve the experience because they give the researched indicators of these entrance and exit points. The brokerages that send out the Forex trading signals monitor the ever-changing prices in currency and send out these signals to their subscribers.

It is entirely possible to conduct trades on the Forex market with currency trading signals. In fact many professional traders practice this method today. They spend the majority, if not all, of their waking hours in front of a computer screen studying the trends and analyses in order to provide their traders with the most up to date, factual information relating to the market. Most investors prefer not to have to be at the computer constantly monitoring changes in order to assess when the right entry and exit points are happening. Forex trading signals provide the individual investors the opportunity to have life outside of their foreign currency trading affairs.

The reason many investors who try their hand in the system decide against currency trading signal subscriptions is because of the cost. It is not a complementary service when one signs up for a Forex account. To be a subscriber an investor is required to pay for a monthly or yearly subscription. Luckily enough, many well-seasoned brokerages offer Forex trading signals as part of their service and are the main subscribers to the service. This will be included in the broker's fees when initially getting a Forex account of any type.

The companies that initiate the currency trading signals base the information from strict technical analysis to ensure accurate and real time information. Coupled with identifiable indicators to establish trends as well as exit and entrance points, the technical information is compiled into the latest Forex trading signals. They are sent out frequently as the foreign exchange market is a volatile market that is extremely fast paced. Once the trader receives the currency trading signals it is then up to the individual investor to act upon the information and execute trades accordingly.

It is imperative to understand to the beginner that although Forex trading signals are an extremely useful tool, it is not the bible of the foreign exchange market. They are merely implemented to give dependable information as an indication to the investor of how the market is currently performing. The currency trading signals are not a fail-safe to be trading on the market. To put that in perspective, if Forex trading signals were a absolute truth, there wouldn't be any failure in the foreign exchange market at all.

By: Troy Degarnham

Forex Markets - the Perils of Online News Sources

Forex markets are exciting and with the rise of the Internet, we've seen a huge rise in the amount of news available all at the click of a mouse.

However, despite all the advances in communications - and the quantity of news available, the ratio of winners to losers remains the same in the Forex markets:

90% of traders lose money, which may seem a starting fact as more information is seen by many as a key to success

Online currency traders think the news helps them -- however, in most cases the news ensures they lose money - for the following reasons:

1. News is discounted by the forex markets in seconds.

All the news is discounted by the markets quickly, in today's world of instant communications.

If you want to trade profitably, then you need to simply ignore the news.

Markets move on how investors perceive the future and for this you need to study human nature or trader psychology.

Technical analysis is the way to do this; a simple equation will make this clearer:

Supply and demand (Fundamentals) + Investor Perception (human perception) = Price

Humans decide the value of any investment market and that includes currencies.

By studying forex charts, you are seeing the complete picture -- and keep in mind investor psychology is constant and shows up in repetitive price trends that you can profit from.

2. They're stories that's all

When trading forex markets, online currency news is convincing, but their stories and they won't help you make money.

The financial writers are knowledgeable and of course they can explain everything in hindsight - but they're not traders.

If you listened to the news, you could have bought at the top of the market in 1987 - and the tech bubble of the 1990's.

All the news claimed the market would go on forever, but what happened next? Prices dropped like a stone causing huge losses.

Any market is most bullish at market tops, and most bearish at market bottoms, so listening to currency news will simply damage your online currency trading success.

3. Financial news and emotions

The biggest mistake any FX trader can make is letting his emotions dictate his trading.

If you want to win, then you need to remain disciplined with the execution of your forex trading strategy.

It makes us feel comfortable to go with the news and the consensus opinion but in trading, this is a bad trait to have. If you feel comfortable, you will not make money.

In trading, you need to stay disciplined and isolated.

Remember, the majority of traders are wrong! - and they listen to, and trade with the news.

Use a technical system - and try to ignore the news and focus on the reality of price.

In the Forex markets, this will enable you to stay detached, unemotional and disciplined and help you achieve currency-trading success while others fail.

By: Sacha Tarkovsky

Forex Education – 6 Essential books All Traders Should Read

If you want good forex education forget buying an e-book from a vendor for $100 or so, who has never made money in his life and get down to your bookstore and get some forex education from traders who have walked the walk - rather than simply talk the talk!

Of over 600 books I read, I have picked six that are essential reading for any trader and you can get them for $100 bucks or so, which could be the best money you ever invested.

So check out the books below and make them part of your forex education.

1. Market Wizards - by Jack Schwager

Interviews with the top traders in the world. A look at everyday life of people who make a living trading – this is simply a classic and I still find myself visiting it after 20 years and re reading it. If you can’t learn from such trading legends as Richard Dennis, Paul Tudor Jones, William O'Neil, and Marty Schwartz – then you can’t learn from anyone!

2. The New Market Wizards - by Jack Schwager

More interviews with top traders from around the world. This book is the same format as Market Wizards and brings together some top traders and again benefits from Schwager’s great interview technique.

3. Trader Vic--Methods of a Wall Street Master Victor Sperandeo

This is perhaps one of my favorite books and you will see why after reading it, he has been such a consistent trader and his focus on long term results, money management and long term trend following are essential reading - his "2B" test technique, it is worth the price of the book alone.

4. The Zurich Axioms: Investment Secrets of the Swiss Bankers – Max Günter

I picked this book up and read it in one sitting - an absolutely fantastic, if un-conventional book!

If you have accepted investment wisdoms such as diversify to make gains be prepared to re consider your view.

It’s the type of book that is so easy to read, yet gets your adrenalin pumping with every page, until you’re buzzing at the end and want to turn on your computer and trade!

5. What I Learned Losing a Million Dollars (Hardcover) Jim Paul and Brendan Moynihan

An inspiring story of a real person who lost a million and a half bucks and tells his tale, with great insight including, even contemplating suicide at one point. If you don’t think emotions get the better of you in trading this book will show you how they can.

There are too few books that tell us how to avoid losing money they all ocncentrate on how easy it is to make money and thats what makes this book so unique.

All the mistakes that forex and other traders make are outlined, explained, and amusingly told in this boo.

The book gives you an affinity with the author which brings makes his message even more powerful.

This book is not an outline of how to trade, but how to get the right mindset.

These are lessons about how we accept a trading loss, how to learn from losing trades, and finally how each of us can be tempted to rationalize losses.

6. Technical Analysis - by Jack Schwager

There are loads of books on technical analysis and this is simply to most complete guide you can get.

It’s more of a reference book than an entertaining read, but as with all Schwagers books there is a wealth of knowledge you can tap into – Everything you need to know about technical analysis is here and the fact that I picked over John Murphy's work shows how highly I rate it.

So there you have it six different but essential reading for all traders novice or pro.

These six books together, present a great mix of forex education and I personally feel all traders should read these books.

I hope you enjoy the above books as much as I did and that they give you some great forex education and a head start in your quest for currency trading success.

By: Kelly Price

The best investment to learn forex you can ever make is in yourself.

The basic approach of how to achieve success by trading forex looks "a piece of cake" compared to the other markets like stocks, futures and options. Trading the foreign exchange market, in a very simplified way, is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold. The principle is very easy to understand but then, why more than 90% of traders lose their money?

Everybody have access to the same data's: same charts, same quotes, same proven trading methods, etc. but only a few traders make consistent profits over time. And this is because most of traders simply waste their time by trying to reach perfection at the easiest part like how to read charts and data, and trying to perfect entry and exit skills, but they neglect the first step to success: the trader's mind. Think about this. What can you do with the best education and the best forex trading system if don't have the right attitude?

Acquiring the knowledge of the market in not difficult for anyone with average intelligence but it is neither the level of intelligence nor the knowledge that decides the outcome of the market operations of a trader. It is the decision making process that is so hard for most traders to overcome and that is the main reason for a success or a failure for all the traders. Some find it easy to make decisions and stick to it and most find it so hard to make decisions and stick to it. Unfortunately, any decision making process in trading is a pain-taking process and humans tend to avoid pains and go for pleasures even if for temporary ones.

Honestly, how many traders can say they can compromise their wealth when the trade is suggested by their own system and let the profit run for weeks and months when their system tells them, and how many can manage to cut the loss as a routine process when the situation arise. It all sounds so easy when saying it but when your money is on the line, it's difficult to remain calm, rational, and in complete control. What happens if you lose? How will you recover? It's natural to become consumed with self-doubt and abandon your trading plan, or act irrationally. But winning traders control their impulses. They execute a trading strategy effortlessly and flawlessly, even under the most adverse market conditions. Successful traders have discipline, confidence, patience and persistence. If you don't have this characteristics work to build it up.

By: Diana O.

ADB chief economist urges more active forex reserve investment

Asian governments and central banks should invest their foreign reserves more actively in financial markets so they can use the returns to develop their economies and reduce poverty, the Asian Development Bank's chief economist says.

''Today, under very conservative estimates, about 50 percent of reserves that are held by developing Asia are in excess of what would be required under very adverse conditions,'' Ifzal Ali said, casting doubt on the current situation in which a major part of those reserves are held in ''very low-yielding U.S. Treasuries and euro bond issues.''

Developing countries in Asia should benefit from setting up government-affiliated investment corporations to invest excess reserves in global financial markets, he said in an interview with Kyodo News on Monday. But he said such a move would take time due to their fears of taking risks that may hurt their credibility.

Ali, who was in Japan to present the ADB's annual development outlook report for 2007, said foreign reserves held by Asian countries other than Japan have sharply increased due to traumas from the 1997 currency crisis in the region.

Developing Asian countries had $497 billion in reserves at the end of 1997. The amount has so far increased to $2.3 trillion, of which over $1.1 trillion is in China, the biggest holder followed by such economies as India, South Korea, Hong Kong and Singapore, he said.

Asian countries have created a ''firewall to insulate themselves from financial contingents'' by building up foreign reserves, Ali said. But they all have been reckoning that ''this has been greatly overdone,'' he said.

Given many of Asian currencies appreciating recently, he said that ''in domestic currency term, you are losing money...It's in this context that India, (South) Korea, China are all considering options of how to more actively manage their reserves.''

Last month, Chinese authorities said they are to set up a state agency to actively manage part of China's huge foreign reserves through investments in financial markets.

In Singapore, meanwhile, the Monetary Authority of Singapore is in charge of the country's foreign reserve management but the Government of Singapore Investment Corp. manages part of the reserves like an investment fund.

Ali argued such moves could lead to further development and prosperity in Asia.

''If other countries also pursue this route and one assumes, for the sake of argument, that you can make 5 percent higher return through the active management of your resources, then this would lead to an additional approximately $60 billion,'' he said.

''And it will enable governments to employ a variety of reasons to reduce debt (and) increase fiscal space, investing in social infrastructure...It's a lot of money,'' Ali added.

However, he said things ''cannot be done overnight,'' pointing out that governments and central banks in developing Asia should first take time in their efforts to accumulate expertise on the management of foreign reserves.

Ali said there are deep-rooted fears over taking risks in active investments because ''if something goes wrong, credibility of a government and central bank will be adversely affected.''

''So I would expect most countries will hasten very slowly in this regard,'' he said.

Asian Economic News, April 2, 2007

Forex Trading - Combining Internal and External Indicators for Bigger Profits

If you are involved in forex trading, you obviously need to generate forex trading signals for profit and you will be able to make bigger profits and achieve long term currency trading success, if you combine a visual view and then trade off shifts in price momentum, so let's look at how to do this.

A Visual view

Be objective! The right price is the market price and you can see this clearly by using trend lines. There is no better way to spot areas of support and resistance to trade than to use trend lines.

Many traders however like to use subjective indictors to do this like cycles and Elliot wave but these require you to decide where support and resistance lies.

Why bother? Drawing trend lines and looking at support and resistance gives you the reality and objective areas you can trade against.

You can use other indicators such as moving averages and Bollinger bands, but you need to start with trend lines and use these as back up.

Furthermore avoid Fibonacci retracments, they are simply assumed levels and they break at least as often as they hold.

An internal view.

As we have discussed above, good old fashioned trend lines will give you the reality of price and important support and resistance levels clearly right in front your eyes.

You now need to calculate the odds of success of trading into these levels.

You will need some momentum indicators to do this - these will tell you the strength of price movement up or down and help you calculate the odds of success.

For example if price momentum weakens into resistance chances are it will hold if it increases on a break of resistance chances are the trend will continue.

There are two great price momentum indicators that any novice can use effectively:

The relative strength Index (RSI)

Developed by trading legend Wells Wilder (if you have not read new concepts in technical trading get a copy) its over 25 years old but a classic work and this is a classic powerful indicator.

The stochastic indicator

Developed by George Lane, this is one of the best momentum indicators if not the best, you can use.

There easy to use in forex trading and are covered in our other articles in more detail.

Trading is an odds game!

Trading is an odds game and for this you need to see the reality of price as it is and then get the odds in your favour by watching shifts in price momentum.

It is the shifts in price momentum you can use to execute your trading signals and get the odds in your favour.

If you follow the above tips and get both an external visual view and combine this with price momentum, you will have the basis of a powerful currency trading system.

Furthermore, you will be using objective analysis and trading on the facts, rather than using subjective analysis, which means you have to predict, which by its very nature is doomed to failure.

Follow the above tips and they will help you get the odds in your favour when trading forex and lead you to currency trading success.

Forex Managed Accounts Explained

Do you want to trade in the highly liquidated and extremely profitable foreign exchange market, but don't want to learn all those terms, charts, indicators, and technical details that you need to be successful on your own? Then maybe you're looking for forex managed accounts. Don't know what that is? Then keep reading; maybe you'll learn a thing or two after all.

Forex managed accounts are as simple as they sound: accounts in the foreign exchange market which are managed by a trader, paid for by an investor, and result in lots of good money. There are two kinds of forex managed accounts, and each has its own advantages and disadvantages when it comes to trading in the market. It's up to you which you pick.

The first type of forex managed accounts is the robot, or the automated account. This completely automatic program is designed by experienced traders in the forex market and supplied to the investor for simplicity. This is clearly the most efficiently managed account available to you, as it takes into consideration all indicators and statistics open to it. When the time comes, the robot receives a signal--and trades. It's that easy. However, robots do lack an instinct--which can be a good thing, if you're hoping to avoid emotional trades, or a bad thing, if you want someone who'll take advantage of a huge opportunity.

The second type of forex managed accounts is the employee--the investor hires an experienced trader, someone who has long been successful in the market, to make the investor's trades for him. This is at least as good as the robot--probably because the employee designed the robot in the first place--and it's all personalized. Unlike other markets, where money is pooled to maximize profits, your trades are done in your name, and yours alone. It's forex trading by an individual, for another individual, and it stays that way. On the other hand, a personal employee to make your trades for you could cost you a lot more in commissions and fees. You can find out more about forex trading and forex accounts at http://www.forextradingsystemsoftware.com

But why should you have one of these forex managed accounts? Why can't you just casually trade on your own, like a money-making hobby on the side? Because trading in the forex market is hard work, and not just anybody can do it. This is a market in which over two trillion dollars are traded every day, and with a market that size, somebody has to be losing. Statistics indicate that that somebody is 90-95% of new traders. Without the right education, you'll lose quickly in the forex market, and education costs money, too. If you're not getting a forex managed account, then you're not getting a hobby--you're getting a job, complete with prior training and continuous studies.

Still interested in working the forex market as a hobby? Or are you sure that one of these forex managed accounts is the right thing for you? It's up to you which type you use, and it's up to you where you get the program or individual to do your trades for you--but a managed account lets you keep your job if you want and rest easy at night, knowing that you're still making money, even while you sleep, without the hassle of training.

Forex Online Currency Trading

A lot of people are surprised to find out just how easy it is to learn even the basics in relation to Forex online currency trading. You will be surprised just how quickly you can actually start to make a profit through this type of trading, but at the end of the day this will depend a lot on which type of trader are you. Through this article I will be explaining just how easy it is to learn about the basics of forex online currency trading and how easy it is to make a profit.

Certainly if you are someone who is looking to invest some money in order to make a little extra income then Forex currency trading may be what you should be thinking of. However it is vital that you first learn a little bit more about Forex online trading before you do. There are literally hundreds of sites on the internet which can provide you with tips and courses on how to make money from Forex trading.

There are a number of different tutorials now available online which can help explain everything a person needs to know about the Forex market and is ideal for the complete novice. These tutorials will show a person how the Forex market works, what is a Forex technical indicator, plus the types of economic indicators that a trader should be aware of when trading in Forex. Plus there are a number of different Forex trading systems now readily available for people to try and use which will help to make their Forex online currency trading much more successful.

What is extremely important if you really are interested in getting involved in Forex trading is that you do some training first. Forex currency trading is not something a person should dabble in without learning everything that they can about the subject. Certainly, you should depend on luck or based on someone's insider tips as well.

The great thing about many of the Forex online currency trading courses that are now available is that those running them understand what an enormous risk someone is taking getting involved in this type of trading. The people running these courses have made it extremely easy for those who want to learn as they offer their members free training, free demonstrations as well as tutorials and simulations of Forex trading accounts. The great thing about these simulations is that you can try them out without actually placing any of your money in to them and will help you learn the basics of Forex currency trading. Actually finding a course or tutorial is extremely simple all you need to do is key in "Forex currency trading online courses" and you will be amazed at the results that appear.

FOREX Brokers - 9 Essential Points to Consider When You Open an Account

There are lots Forex brokers to choose from when trading currencies online - and finding the right one to work with us critical, if you’re going to maximize your FX trading profits.

Here are 9 points to consider when choosing a Forex broker.

1. Pip Spreads Offered

Spreads between brokers vary dramatically and the difference can be as much as double so first and foremost when trading FX you need a tight spread

Transaction costs mount up - especially if you are trading frequently and impact on your profits and add to your losses. The tighter the spread, the more profits you will make.

Today, many brokers offer 3 - 5 pips - and this is what you should look for.

2. Deposit Online & ease of account operation

Look for a broker who will take online payments to your Forex account via and secure online payment method. This is great for funding your account quickly - and getting your trading profits back to.

3. Negative Balance Protection

Leverage or gearing is one of the main reasons that people are attracted to online currency trading. Of course, leverage is a double-edged sword - and where there are high rewards, there is high risk.

With this in mind many Forex brokers now offer guaranteed stops and negative balance protection which is a big comfort to those traders who are new to the market or want to have a finite risk.

Fees for the service tend to be quite competitive and their a popular option with many traders

4. Leverage Offered

The leverage brokers will give you varies from broker to broker, but today 100 – 200:1 leverage is common and some brokers will go as high as 400:1 meaning you have the potential to leverage your account for greater FX profits

5. Other Charges & Broker assist accounts

Your only transaction cost should be the currency spread - you should NOT pay other commissions.

Avoid broker assisted accounts where a broker supposedly will help you make money from Forex trading they wont! If brokers were good traders they wouldn’t be brokers!If you trade in this way you will lose and you will extra commissions to. You are responsible for your FX profits so accept this fact and go with an execution only broker.

6. Investment Minimum

Today, currency trading is not just the preserve of wealthy individuals and banks - anyone can get involved and minimum deposits have dropped dramatically.

You can open a trading account online with some Forex brokers with as little as $100.00.
This means that novice traders can start off with small amounts.

7. Trading Platform

If you are trading online, you will go through a Forex trading platform.
You want ease of use and reliability – Many brokers offer demo accounts so try them out.

8. FOREX Trading Education

While you should always make your own investment decisions, it’s good to get some freebies that can help you with your Forex trading strategy such as:
• FREE trading guides
• Forex trading seminars
• Trading news and charts
• Trading recommendations & ideas
• Forex trading systems
• Trading books etc

9. Look at the overall package

When choosing a Forex broker you have a lot of choice and the above tips will help you while there are a lot of small brokers around and many are good go for someone who has been around for a while and is established.

Forex brokers are not all the same and some are far better than others in what they offer and if you use the above tips you will find one that will help you maximize your online currency trading profits.

Switch from Casual Trading to Forex Day Trading

Forex day trading is the buying and selling of foreign currency within an individual trading day. Most day traders take on this role as a full time investor and are working with significant amounts of money. Day traders tend to be highly educated as well and without them, there would be no liquidity within the Forex market. Forex day traders have a pivotal part to play by keeping the markets flowing liquidly through their daily activities on the Forex market.

Many people who initially set out to invest in the Forex day trading field are typically funded through various sources and have made it the full time job of choice. There have been many companies that promise huge results to the beginner. Specifically promising large returns in Forex day trading however, the majority of those who try to day trade without a fundamental understanding of the workings of the market generally lose their shirts. Don't be fooled, there is no get rich quick scheme hidden behind the curtain of Forex day trading. It has to be understood and all aspects of the Forex day trading business need to be comprehended fully in order to succeed.

The pivotal difference between casual trader and Forex day traders is usually the amount of capital, which is a definite advantage. The average Joe who gets into Forex day trading hoping to make a ton of money on intra-day movements is in for a huge disappointment. In order to benefit from Forex day trading, a large amount of capital is required as well as able to be lost. Capitalizing on small investments can accrue earnings but it is a much longer process when using small amounts of capital. Like most things, you've got to spend the big bucks to generate the big bucks. But not without the knowledge and safeguarding measures that Forex brokers can provide for any investor.

Gaining a complete understanding of the Forex day trading market will bring forth personal strategies. Coupled with the tried and true strategies that are utilized in by Forex brokers will give an individual investor the tools needed. Forex day trading strategies such as swing trading, trading news and arbitrage are a few of the most common ones that are implemented by brokers and investors. Remember that these strategies that are in print are strategies that have previously tried until they showed effective limit losses and a solid history of profits consistently.

With the Forex day trading system rising so rapidly in popularity there has naturally been a negative connotation associated with this controversial subject. The Forex day traders that are both professional and individual investors keep the Forex market rolling day after day. Many people suggest avoiding day trading at all costs while others will state that Forex day trading is the only way to generate substantial income from the foreign exchange market. If there is not the presence of required skills to navigate the financial markets and the resources needed, it is best the amateurs leave the Forex day trading to the professionals.