The Currency Trading Revolution

The Currency Trading Revolution

I want to share with you the currency trading revolution that has transformed this business into a new market. This is the fastest growing and also largest market in the world with over three trillion dollars a day in trades.

If you go back around 30 years ago, there was currency trading going on, as there is today. But there were much different players back than. Only the biggest banks and firms were trading. A lot of money was moving around, but only a few elite people were in the position to trade. Ordinary people never had access to this, unless they were involved with a bank. Banks would take commissions and there was really nothing an average Joe could do about this.

Fast forward to the 90's and the real birth of the internet. Dial up become a big service for people to have and really transformed the way we communicate on the internet. If you move into the 2000 era, we're experiencing an explosion of high speed internet. In the Western world most people have high speed internet now. What does this have to do with currency trading? The internet has leveled the playing field.

Today, the smallest trader from their home can compete along side the biggest banks and be successful at it. The internet has created a currency trading revolution that has made this market explode in size. Never before was it so easy for just ordinary people to trade in this market. There is an amazing potential for all people to profit and learn.

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Inverted Pyramid Based Forex Trading Strategies

Inverted Pyramid Based Forex Trading Strategies

As a trader, you must develop a Forex trading strategy that will allow you to quickly identify flaws and make adjustments while continuing to trade. A classic approach used to evaluate risks in the currency trading system is the inverted pyramid approach. All macroeconomic factors that affect a chosen currency pair are a function of the top of the inverted pyramid. All technical factors are considered as you move down to the bottom of the pyramid. Traders assign weight to different parts of the pyramid. Purely technical traders may apply more weight to the bottom of the inverted pyramid (upside down triangle) while fundamental traders may apply more weight at the top.

In order to make use of the inverted pyramid you will need to understand the macroeconomic factors that are a function of the top of the inverted pyramid. These include international issues that influence the global trading community. These types of issues may be gauged from news reports and news feeds with global coverage. News networks, such as CNN, provide up to date coverage of terrorism, oil prices and other such issues.

In order to account for the technical factors that apply to the pyramid, you will need to determine specifics and sediment in the particular market within which you are trading and also for any market that impacts the market within which you are trading. You must decide the typeof technical indicators that will be used in your Forex trading strategy. Some traders rely upon randomness and chance while others engage more complicated mathematical computations to calculate weighted moving averages. You must be able to develop and visualize a picture of the market, which identifies events that are of importance to affect the market. You also need to develop a general feel about the market. News reports and specific market reports will assist you in developing a picture of the market and also indicate of the direction in which the market is headed.

You will need to determine which currency pairs are volatile in relation to the macroeconomic environment and market conditions that have been identified. You will need to have knowledge of the market in order to identify and differentiate market indicators from events that bear no real significance. Your analysis of acquired data should indicate whether price movements represent a trend or volatility in the currency trading system. You will then be able to use this analysis to narrow your options to trades that offer the most potential.

You must be able to set floors and ceilings in your technical analysis to establish trading levels and then use those levels in your Forex trading strategy. Technical patterns that indicate the direction of trades in specific currency pairs should be developed. Once you have narrowed down to a specific currency pair for trade, you will then need to reexamine its market sediment as it applies to the technical analysis. You will have to identify entry and exit points for your chosen trades.

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Stock And Option Trading System Review

Stock And Option Trading System Review

Are you thinking about becoming involved with trading the stock or options markets? Are you in need of a reliable and easy course to help guide you in your trading decisions? If you answered yes to the preceding two questions, then keep reading in order to learn more.

Picture yourself as having only 15 minutes a day to do your stock trading. How would you manage to do the research necessary and analyze the various stocks or options you were considering trading? This was the situation that Dr. Stephen Cooper found himself in several years ago when he used to worked 12 hour days as a chiropractor who was also interested in investing in the stock market. He needed to develop a system that would allow him accomplish his goals, and he found a way that helped him to invest in the market while only spending 15 minutes a day.

Today, several years later, Dr. Cooper has developed a system that is designed to help anyone, young or old, experienced or inexperienced, to become a successful market investor. He proudly boasts that: "You don't need to be a seasoned stock investor to make money with online investing, and you don't have to have a lot of money to start." And yet, the trading system he teaches can help you make serious money in the stock market.

The biggest advantage of the system he offers to teach is an uncomplicated online investing system that can be completed in only 15 minutes a day. You can learn this amazing, easy-to-follow investing system without a lot of trouble or bother. His system lets you create wealth quickly, and does not require that you undertake a large amount of trades or do day trading.

With Dr. Cooper's Stock and Option Trading System, you are literally in control of your own destiny without being left to figure things out for yourself. One of the bonuses that prospective students receive are the personal trade recommendation from Dr. Cooper himself. There are direct email alerts along with Watch List changes that are updated on a regular basis. You have access to a members trading area where you can pick the trading brains of your peers.

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Day Trading Coaching

Day Trading Coaching

Day trading coaching is a crucial prerequisite for anyone looking to make a serious foray into the world of professional day trading. Whether you seek to quit your day job and engage in day trading on a full time basis or whether you merely seek to dabble in day trading on the side, one cannot underestimate the incalculable benefits of undergoing some form of day trading coaching before you get started.

Not only is this true before you get started, but it is equally important and of positive benefit to maintain an active coaching relationship on an ongoing basis.

Why is this important?

In order to be successful in any endeavor, there is no resource more valuable than to have a coach, mentor, or a teacher who has blazed the trail before you and who can guide you, inspire you, motivate you, and keep you focused on achieving your goals.

Coaching can be provided for you in many forms:

- Someone you know who is already a successful day trader.

- A local investment company who can offer you one-on-one assistance.

- A local investment group that can offer you guidance in a peer / mentor environment.

- A "virtual" coach who guides you through books, audio tapes / CDs / DVDs / MP3s, or even via courses offered over the Internet.

No matter which way you go, coaching is not something you should underestimate the necessity of.

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Learning a Proven Forex Trading System So You Will Never Lose Money in Forex Trading!

Learning a Proven Forex Trading System So You Will Never Lose Money in Forex Trading!

One should bear in mind that, before starting on Forex trading, one should have proper Forex training. This is because the Forex trading market is a very competitive one. In order to remain competitive and ensure profitability, one should have proper Forex training to familiarise with the Forex trading market. One must not rush into Forex trading.

Forex training brings the knowledge of professionals into your personal trading. Forex training helps you know where to enter a currency based on the direction it is taking and how to forecast that direction. Forex Training allows you to learn how to trade currencies with a live coach. As you trade, your Forex training can truly help you become the master of your money.

There are free Forex trainings online created to teach everyone a strategy to day trade currencies. Forex training sessions are designed to give new and experienced traders all the necessary tools to start buying and selling currencies in the Forex market. Forex training program would not only be for beginners who want to learn how to start day trading, but also for more experienced traders who already had some stock or futures trading experience. Forex training will help you succeed in your currency trading as you learn to trade the Forex like a pro.

As such in order to succeed, one should have their fundamentals right. Do not be impulsive and rush into starting Forex trading. Be patient and go through proper training. This will be beneficial for you in the long term

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What is Day Trading? - The Basics

What is Day Trading? - The Basics

Day trading is the practice of buying and selling financial instruments, such as stocks, stock options, currencies, and futures contracts, within the same day such that your positions are usually closed before the end of the day.

Day trading used to be the sole realm of professional investors. In fact, many day traders work for banks or investment firms. Advances in technology and the Internet, however, have allowed even amateur traders to day trading.

Day traders often borrow money to trade. This leveraging allows for a high potential rate of return and large profits. Some day traders earn millions of dollars a year. However, day trading can also be extremely risky. Without the proper skills and tools, day traders can just as easily and quickly lose money.

Although collectively called day trading, there are several different styles of day trading. Some trading styles include:

Momentum Trading

Momentum trading is a strategy in which one believes that stocks, or other financial instruments, move with a momentum or trend. Thus, stocks that have been rising are assumed to continue to rise. Likewise, stocks that are falling will continue to fall. A momentum trader thus buys stocks that are rising and short sells ones that are falling.

Contrarian Trading

Contrarian Trading sharply contrasts momentum trading. Contrarian traders believe that stocks that have been rising will reverse and fall. The contrarian trader buys stocks that have been falling and short sells stocks that have been rising.

Range Trading

Day traders who range trade look for stocks that have been consistently trading within a specific range. These stocks rise after hitting a "support" price and fall after hitting a "resistance" price. A range trader therefore buys stocks that are near the support price and short-sells stocks that are near the resistance price.

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Discover the Crucial Fact You Need Know!

Day Trading For Beginners - Discover the Crucial Fact You Need Know!

This article is all about forex day trading for beginners and what you need to know, to preserve your equity and win at forex trading...

The most important fact you need to know is that the odds are stacked against you and longer term, it's impossible to win. Have you seen a tempting day trading system with a track record of gains?

Then you will also find the warning below in the small print which is a sobering thought, showing you how the track record has been manufactured:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

All day trading forex courses and systems sold that I have seen have it.

You see some lovely track records, then in the small print, you get the above which simply means the system has never been traded and the track record made up using past data. That's made up KNOWING the closing prices!

Well that's not hard, a child could do it and so could you.

So why doesn't day trading work?

All you need to do is think about the dumb logic it's based on.

We have numerous millions of people all around the world, all with different skill levels, motivations, aims and forex trading strategies and you are going to have to decide, what this vast mass of people are going to do, in just a few hours.

Is it possible?

Of course not.

It's a fact, that all daily volatility is of a random nature and prices can go outside of daily support, resistance, pivot points or any other technical analysis tool you apply.

Look at any forex chart and this is obvious.

Because you can't get the odds on your side, your destined to lose - PERIOD.

The other point you need to keep in mind (if the above is not enough to convince you) is that day trading breaks a fundamental rule of investment:

Run your profits, to cover your losses.

So in day trading, you do keep losses small (and your going to get lots of them) but on the other hand, what does a day trader do if he is lucky enough to have a profit?

Run it? Not a chance - he cuts it!

So you have lots of small losses and marginal wins (now and again when your lucky) and this equates to an equity wipe out long term.

Don't be fooled by all the vendors telling you that you will win, you won't.

You could always ask the obvious question:

If the system is so good, why hasn't it got a real time profitable track record?

You already know the reason why!

You can make money at forex trading big money but you need to get the odds on your side and you need to trade longer term.

If you want a good forex education and to learn currency trading the right way, forget day trading and try long term forex trend following.

Forex markets do trend longer term, you can get the odds on your side and you can win which is more than can be said for forex day trading.

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How to Use Fundamental Studies to Supplement Technical Analysis

How to Use Fundamental Studies to Supplement Technical Analysis

There are 2 methods of trading in a particular stock. And these methods are known as fundamental analysis and technical analysis.

There is a wide difference between fundamental analyst and technical analyst.

Fundamental analysis investors are those people who take the pains to do certain research about the stock. And then take decision whether to invest or not in a particular stock.

Technical analysis investors are the people who try to evaluate a particular stock and then take decision whether to buy a particular stock or not. They try to find a brief history of the stock and then only they take a decision of investing in a particular stock.

It must be noted that both the methods have their own advantages. Technical analysis investors would but those stocks in which a huge investment is done by other thinking that in future the value of these stocks would go high. These are the investors who follow the crowd and don't take pains to take their own decisions.

On the other hand fundamental analysis investors would take pains to do a brief research about a particular stock and then only they would take the decisions of buying that stock.

Some investor can become a specialist in any one the methods. They try to gain specialize knowledge of any one method. The investors who specialize in technical method are considered to be reliable tool. On the other hand fundamental investors consider this method to be superior to any other method.

Since the technical investors try to find he brief history of the stock so they able to predict the future price of the particular stock. This is the most important advantage of technical analysis. And this method is beneficial for short term and day traders. Where as fundamental analysis is beneficial to long term traders.

According to technical analyst a brief history of the particular stock gives the brief idea about its future performance. But according to IPO or mutual fund the history of the particular stock is not the best way to predict its future. Technical investor take look at the brief history of the performance of the stock but do not consider the other factors that might change the situation in the future.

Fundamental analysts are the investors who take care of factors that might change the price of the stock in future. One should try to gain the latest knowledge about a stock that he is willing to invest in.

Learn the Basics of Winning and Successful Forex Trading

Forex Trading Tutorial - Learn the Basics of Winning and Successful Forex Trading

Forex trading tutorial - one of these can be very helpful in giving you the basic knowledge from which to launch a successful forex trading career. In this article, I want to give you a few beginner basics to start you on the right path.

Never Trade On Instinct

Never make a trade based on instinct. Always use logic. Think "Spok" in Star Trek. He would have made an incredible trader!

I had a friend who made lots of trades based on gut feeling. He did well for a couple of months and then he blew it all in a single day. His wife is still not happy about that!

Learn As Much As You Can

The forex market is not for lazy people. Sure, you don't need to know much to start trading. But you owe it to yourself to continually learn.

Don't worry - the great thing about learning forex is that it is so interesting. You learn about the world and it's politics and economics and about the psychology of people in general. You'll love it, I'm telling you!

Always Have An Exit Strategy

Let's say you place a trade because you think the price will go up. So, how long will you ride this trend? What if it goes higher than you expected? What if the price suddenly turns around?

Always have an exit strategy before placing a trade. Either bail out if the price falls against you by a fixed percentage or make a decision as to how long you will hold on if the price goes even further in your favour.

Never Risk More Than You Can Afford To Lose

I'll give you an example of this. I once lost 20% of my trading balance. I decided to go on what I thought was a sure thing and trade the remaining 80%.