Sabtu, 19 Juli 2008

Forex Scalping and Day Trading Success How to Win and Generate a Monthly Income

by Samuel Lesley Berkovits

If you look online you will see numerous vendors selling promising you day trading and scalping success but what do you need to win? Let's find out...

The industry that surrounds forex scalping and day trading that sells systems is huge and it sounds very appealing but if you strip away the gloss the logic doesn't work. We will look at why in a moment for now lets see why the track records always make money that you see and the warning below will give you a clue...

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading.

Ah so they have never actually been traded and how much use are they? Well the conclusion of the disclaimer makes it very clear.

"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".

So you have someone who claims they can make you money but hasn't actually done it themselves so why can't they make money in real time?

Quite simply because forex day trading doesn't work.

It sounds good trading small moves with tight stops for profits and it would be a good idea if the volatility that occurs in any daily trading session was not random but it is. So if you place a stop using daily levels the only way you can win is by luck and your luck won't last forever!

You can apply the best systems, technical indicators and try as hard as you like but if you cannot use the daily ranges you're going to lose sooner rather than later.

Lots of people tell you that human nature can be predicted with science in short time frames but if the markets moved to science and we could predict then there would be no market, as of course we would all know the price before hand.

So if you want to trade forex and win day trading and scalping wont help you. You need to trade longer time frames.

Swing trading is a good option. You are trading valid data, you can have stops quite close and you have plenty of action. It's easy to learn fun to do and can be very profitable.

So leave day trading to the losers and don't believe the hype it doesn't work as the logic it is based on simply doesn't add up.


About the Author

NEW! 2 X FREE ESSENTIAL TRADER PDFS
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For free 2 x trading Pdf's, with 50 of pages of essential info and more Essential Forex Education visit our website at: http://www.learncurrencytradingonline.com.

Forex Trading From Home - Become a Successful Trader in 2 Weeks!

by kelly Price

Here I am going to give you a checklist on how to get started in forex trading from home in just 14 days and then be on target to make triple digit profits in under 30 minutes a day.

What inspired me to write this article is the "turtle experiment" where Richard Dennis taught a group of traders to trade in just 14 days and they went on to make hundreds of millions of dollars. You probably won't make as much money as this group but it shows anyone can learn and anyone can be successful, if they have the right forex education.

Lets get started and the first area to focus on is learning about forex charts and formations and all this information is available free online. You need to focus on long term trend following and base your strategy on breakouts.

We have written about these frequently simply look up our other articles. Once you have this mastered, check some indicators to time you're trading signals and take your time two great ones to start with are the stochastic and RSI, so look them up.

You will now have a simple robust forex trading strategy you can apply for profit. Don't think simple systems don't make money - they do. Simple systems are robust and easy to understand and will enable you to have confidence and discipline which is essential for currency trading success.

Discipline is what separates winners from losers.

You must be able to apply your trading system through losing periods with discipline until you hit a home run and if you cant do it - you don't have a system.

It's always good to get some lessons from the pros and some books which are from traders who have walked the walk and don't just talk the talk.

Here are a few which I think can help any trader.

The Disciplined Trader - Mark Douglas

This is simply one of the best books on trading discipline you will read and for any newbie trader who thinks discipline is easy, read it and you will see why its not and why most traders cant master it.

Another excellent book is.

The Way of the Turtle - Curtis Faith

The most successful of the turtle group we discussed earlier, its essential reading and very inspiring as well.

Finally I simply love the book - Trader Vic Methods of a Wall Street Master by Victor Sperandeo.

This guy is simply consistent decade after decade of huge returns and you get a bit of everything in this book.

The above 3 books will cost you less than a $100.00 but will give you some great insight on the discipline side and what it takes to be a winner and pay for themselves many times over.

When you come to trade your system, make sure that you have enough cash forget trading with $50 d and get a reasonable amount so you have staying power. $500 - 1,000 is a bare minimum and preferably $5,000.

Do not over leverage, take it gently to start, forget about 200:1 leverage and start at 10.

You are in this for the long run and you need to preserve equity and build your base.

Once your system is set you are ready to roll, don't believe all the people who say you should try and improve their system, or keep journals of your losses its complete waste of time.

You are going to lose, that's trading and the perfect system doesn't exist.

I have used the same system for 25 years and never changed it sure it losses but overall it gives me great annual profits for less than 30 minutes work a day and the system enclosed can do the same for you, allowing you to become a profitable forex trader from home.

Follow the above steps and you could be on the road to currency trading success in just 2 weeks and making profits in around 30 minutes day.

About the Author

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info on Becoming a Currency Trader From Home visit our website at: http://www.learncurrencytradingonline.com.

Diary of a Spread Better: Thoughts And Experiences

by Steven Davies

I'm no millionaire trader, so the pro's may want to look elsewhere for their tips, but maybe some of my mistakes and experiences may help one or two people out there out there, and it would be good to share thoughts via the comments.

I've enjoyed a punt on and off for a few years now, sometime successfully, and sometime disastrously. I think that I have learnt from many of my mistakes, and hope one day to become consistently profitable.

I remember when my naive eyes first discovered spread betting; it appeared to me to offer an easy way of making money. It only required a small stake, which could be placed with a stop-loss, and offered unlimited profits if the bet went the right way. How could you lose?

I was quite wrong - Unfortunately it does take some work, and a little luck can be good thing too!

The spread better needs to know exactly what they are up against, of which there are 3.

The perfect market The spread betting company Everyone else

The first thing we need to understand is the perfect market theorem.

The perfect market theorem suggests that at any one time, the price of a share, commodity etc reflect all that is known about it at that time, by all participants in the market. It reflects not only its current worth, but also the participants' future expectations.

In a perfect market, it is not possible to predict the future movements, as only an unknown factor can change the price. It could equally be up or down.

The perfect market theorem is often seen in action before a company releases a profit warning. If the profit warning was widely expected due to market conditions, the price will already have dropped prior to the warning - In line with it's expected worth after the expected news.

If you believe the perfect market theorem, it's probably best to give up on spread betting now, as you accept the mathematical probability that you will win 50% of your bets, lose 50%, and also lose the providers spread each and every time. This would not be a good way to make money.

If however, you believe the market acts irrationally at times (and I don't think we need to look much further than the dot.com bubble or our current housing market for proof of that), and you can spot that mispricing, then spread betting may be for you...

Next up is the spread betting provider. Don't get me wrong, they're not your enemy, but they do need to make money. As a novice, you'll probably swear blind they've ripped you off from time to time - such as when a trade cannot be executed in a timely manner, or when the platform craps out on you, or a trade mysteriously 'slips' a few points. In my experience, spread betting is not well suited for scalping (opening and closing positions in a very short space of time, to make quick profits on a small movement) due to these sometime questionable slips. More of that later.

Finally, it's also worth remembering when spread betting that for ever winner, there is a loser. For every bet you win, someone, somewhere has lost. So you need to be smarter than the other guy.

To sum up...IF:

- You don't believe the perfect market theorem - You can live with a little frustration from time to time - You are better at predicting than 50% of other traders.

Spread betting is for you...

About the Author

Experienced spread betters looking to share useful spread betting information, guides, promotions and other useful hints and tips.

Global Tech ETF Matches USA

by S.C.R. Analysts

Finance Research & Analysis for July 13, 2008

The following excerpts are from interesting observations made during recent financial research revisions:

Excerpt 1: D5 (International) Portfolio Research & Analysis iShares S&P Global Info Technology (IXN) vs. iShares S&P Global 100 with U.S. (IOO): (1) Observation: Continuation of the sell-off affecting most financial markets and securities but with weak indicators. (2) Implication: This has a possibly bullish indication of investors being unwilling to sell technology securities to the level of the overall sell-off. [Charts: D5-1 (relative strength); A5-1A (regression); A5-1B (price performance)]

Excerpt 3: D5 (International) Portfolio Research & Analysis iShares S&P Global Health Care (IXJ) vs. iShares S&P Global 100 with U.S. (IOO): (1) Observation: Continued movement of monies going into the health care sector. (2) Implication: This has bearish implications for the global economy as the health care sector is traditionally considered to be a defensive sector. The relative strength indicator has a bullish positive slope for IXJ across both International (DWM) and Global (IOO). [Charts: D5-16 (relative strength); A5-11A (regression); A5-11B (price performance)]

For most investors, a diversified portfolio approach combining stocks, bonds, money market securities, etc., is optimal. While diversification cannot protect against a loss from a declining market, it can reduce the overall portfolio's volatility.

Finally, to the above analysis, the usual disclaimers apply. Since all Strategic Capital Research publications provide research that is conducted using historical data, a reminder needs to be made that the analysis of past market reactions cannot predict future market actions. In particular, no amount of historical data can predict the sudden changes that occasionally occur in financial markets.

About the Author

The SCR Analysts represent the collective voice of the researchers at Strategic Capital Research (SCR). We provide global financial analyses, and subsequent strategies, from countries to companies. Copyright 2007-2008.

[SCR] Research & Analysis with Excerpts: http://www.strategiccapitalresearch.com/research.html [SCR] Matching R&A Strategies: http://www.strategiccapitalresearch.com/strategies.html

New OTC Penny Stock Picking Robot Available To You Now

by EJ

I was looking for a good system for picking penny stocks, good penny stocks and I ran across Marl who is a robot that can analyze 1,986,832 mathematical calculations per second. Marl can analyze 7 charts per second and pick penny stocks, good penny stocks which is much faster than a professional stock trader who does roughly 1 stock chart every 8-10 seconds and the added bonus is that Marl never gets tired. He analyzes many different pieces of data on each penny stock and the longer he analyzes that penny stock the more data he has and the more precise he can be. Marl is an amazing robot and is responsible for creating 99 millionaires and multi-millionaires combined so far. His picks have averaged 105.28% increases overall and many of the changes have occurred soon after the market opening. I thought I’d give Marl a whirl picking my penny stocks, good penny stocks and so I bought a copy of his weekly newsletter for $47 which will give me one pick a week for as long as the newspaper is around. I consider that to be a bargain considering that to get a fully licensed copy of Marl it would cost 28K dollars. I don’t know about you but I thought I would start out small getting Marl to pick my penny stocks, good penny stocks and grow from there. With that 1 pick a week I can invest as much or as little as I want and I plan on taking all the profits that I make (assuming that I make some) and turn around and keep putting them back into the penny stock picks that Marl makes for me in penny stocks, good penny stocks. That’s what I keep telling myself and of course time will tell but I am jazzed about the fact that Marl was instrumental in producing 99 millionaires and multi-millionaires already, there may be more that I don’t know about yet. Another good thing about Marl is that you can try out his skills at picking penny stocks, good penny stocks for 8 weeks and if you’re not happy in those 8 weeks then you can get a refund of your purchase price. Even then if you ask for a refund because you’re not happy with Marl’s stock picking ability then the creator and owner, Michael will continue to send you picks (penny stocks, good picks) for 6 more months. He believes that you’ll want to come back for more penny stock picks by Marl. If you too are interested in Marl and would like more information or would like to read some testimonials of people who have tried Marl then go to: http://www.profitingpennystocks.info.

About the Author

Ej LIves with her husband and pets near Portland Oregon and likes to write about a variety of subjects.

Forex Trading Strategy - If Yours Doesn't Have This in it You Are Guaranteed to Lose!

by kelly Price

Regardless of the forex trading strategy you use, it must contain the key element enclosed yet, most traders never even consider it and when asked what it is get it wrong! If you don't want to join the majority of losers, make sure your strategy has it and get in the winning minority...

The key to success in forex markets is:

A trading edge which you can define and which you have confidence in can help you NOT join the losing majority or the 95% of traders who burn their money.

Obvious?

Yes it is - but most traders think the statements below are trading edges and they are not! If you think they are, you will soon see your account wiped out.

Agree with any of the following statements and you are odds on to lose

- I have a forex robot with a simulated track record in hindsight and think it will make me money - Forex day trading and scalping are a great way to trade

- I like to trade breaking news stories and react quickly

- I like to predict forex prices in advance.

- I believe in a scientific method of trading and science is the answer

- I am clever so am bound to succeed

- I work hard and will get there in the end

- Knowledge is power and I will learn everything I can about forex

There are many more - but show me anyone who agrees with the above and I Will show you a loser.

The problem is most forex traders just don't understand what an edge is and the above are either myths, thinking forex trading is a walk in the park, or they can follow other people.

Forex trading is hard and that's why the rewards are so big for the small minority who can get a trading edge.

The good news is anyone can learn to trade and get an edge with the right education.

A trading edge is personal but it is the key factor which will give you confidence and allow you to follow your chosen forex trading strategy through periods of losses (and don't believe anyone who says losing periods don't last - they can last for many weeks and this happens to even the worlds top traders) and stay on course with discipline until you hit a home run.

In forex trading its dealing with the losses that is the hard part and if you think it's easy to stay disciplined when the market makes you look a fool time after time, you have never traded.

In forex trading you must love your losses and see them as part of being successful.

A trading edge has nothing to do with being clever or working hard or having a complicated strategy.

It's a fact that simple systems work best and always will, as they have fewer elements to break. Furthermore, your strategy on its own even if its logically based still needs to be applied for this you need confidence and this will lead to discipline.

Lack of discipline is the key reason most traders fail because, if you can't follow your trading system with discipline you don't have one. To win at forex trading you need to work smart not hard; you can learn forex trading in a few weeks, gain confidence, get discipline and then start trading and get on the road to currency trading success.

About the Author

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info on Successful Currency Trading visit our website at: http://www.learncurrencytradingonline.com.

Australian ETF Better Than Most

by S.C.R. Analysts

Finance Research & Analysis for July 13, 2008

The following excerpts are from interesting observations made during recent financial research revisions:

Excerpt 1: D4 (International) Portfolio Research & Analysis SPDR S&P 500 (SPY) vs. SPDR S&P World ex-U.S. (GWL): (1) Observation: While GWL also has a negative price path, it is not as great as the one for SPY. (2) Implication: This is mildly bullish for SPDR S&P World ex-U.S. by the implication that monies are not flowing as fast out of international equities. [Charts: D4-1 (relative strength); A4-1A (regression); A4-1B (price performance)]

Excerpt 3: D4 (International) Portfolio Research & Analysis iShares MSCI Australia Index (EWA) vs. iShares S&P Global 100 with U.S. (IOO): (1) Observation: While suffering a similar fate, EWA has a negative price path with weak indicators. (2) Implication: This has bullish implications for Australia in that it indicates that monies are not flowing out of Australian based securities as fast as the average negative global money flows. To see this, compare the weak indicators for Australia to the strong indicators for France. The MSCI France Index (EWQ) also has a steeper negative slope, which also indicates greater money flows exiting the French securities. [Charts: D4-10 (relative strength); A4-6A (regression); A4-6B (price performance)]

For most investors, a diversified portfolio approach combining stocks, bonds, money market securities, etc., is optimal. While diversification cannot protect against a loss from a declining market, it can reduce the overall portfolio's volatility.

Finally, to the above analysis, the usual disclaimers apply. Since all Strategic Capital Research publications provide research that is conducted using historical data, a reminder needs to be made that the analysis of past market reactions cannot predict future market actions. In particular, no amount of historical data can predict the sudden changes that occasionally occur in financial markets.

About the Author

The SCR Analysts represent the collective voice of the researchers at Strategic Capital Research (SCR). We provide global financial analyses, and subsequent strategies, from countries to companies. Copyright 2007-2008.

[SCR] Research & Analysis with Excerpts: http://www.strategiccapitalresearch.com/research.html [SCR] Matching R&A Strategies: http://www.strategiccapitalresearch.com/strategies.html