Frequently Asked Questions..??

How much money do I need to start trading?

Depending on the amount your broker charges you for commission, you can start trading with an amount as low as $1,000. Remember that starting out with low trading capital may put you at disadvantage because you will only be able to trade forex in small share lot sizes.

I live in Europe, will your trading approach work here?

Although our customer base is 65% North American a great number of people from countries such as United Kingdom, Germany, Holland, Spain, Italy, Singapore, Egypt, Australia, New Zealand ... have been able to successfully implement our strategies. Concepts and techniques that are explained in the course work from anywhere in the world. The course has been designed to be useful in every country

What does the "Forex Trading Course™" include?

The "Forex Trading Course™" covers all aspects of currency (forex) trading and it includes a proven strategy that is explained with real life charts and examples.

Will I be required to buy any additional products from your company in order to be able to implement your strategy?

Absolutely not. We are not affiliated in any way with any software provider, brokerage house or any other investment services firm.

Does the strategy cover currency pairs other than EUR/USD or USD/CAD?

The strategy has been designed to be useful for trading any major currency pair such as EUR/USD, GBP/USD, USD/JPY, USD/CHF etc... The examples in the course are mostly EUR/USD and USD/CAD, however our forex strategy can be easily applied to any other currency pair.

Can I use the strategy at trading instruments other than currencies?

The trading approach taught in the strategy can be used at any financial market. However, if you are planning to swing trade, forex market is highly recommended due to high volatility and a great number of trading opportunities.

Do I need any specific academic background in order to be successful?

Not at all. Successful active traders and day traders come from many different professions. Very often, people who are very successful at school or at their businesses wrongly believe that their success will be automatically translated at forex trading. It is usually not the case. Active trading has its own learning pace and our strategy will prepare you to enter this exciting field.

What kind of Internet connection and computer hardware do I need?

The kind of Internet connection that you should use depends greatly upon your trading style. Active day trading requires high bandwidth, high performance and reliable Internet connection. Although it is possible to successfully day trade using regular phone line connection, we would recommend you to use either Cable or DSL Internet service if it is available in your area.

simple tips for stock market investors:by stock market guide

1. Investment is very easy if you approach stock markets with an open mind. Don’t clutter your mind with numbers like support, resistance and volumes etc. Those are meant for traders. We are investors then why should we waste time in thinking about them.

2. Invest in good companies with sound business prospects at reasonable valuations and give management sufficient time. Treat every short term fall as an investment opportunity. Sincerely believe in fundamentals.

3. Read every good article on businesses and companies. Listen to every expert. Analyse them in your own way then invest in good stocks. Don’t follow any one blindly. I daily spend 6-8 hours in reading and 1-2 hours in listening about stocks and companies. I am passionate about stocks and companies. So I enjoy every moment of reading.

4. Never follow herds and broker tips. Buy good companies when no one is talking about them and sell the scrip when all are buying it. Quarterly results and balance sheets will help you in picking good companies. I bought metal stocks, Bartronics and Tanla Solutions in the last week in spite of steep fall as I believe in their fundamentals and growth prospects.

5. Allocate 25% of money to buy emerging stocks and contra stocks. Those who bought sugar stocks? (Select companies) in 2007 got more than 100% returns in just 10 months. Emerging stocks will take 3-5 years but sometimes give more than 500% returns.

Advice to investors :By Stockmarketguide

A. Decide yourself whether you are a trader or investor or both. I am an investor. I will never do trading but invest for short term. See the difference.

Ex. I first bought Gujarat NRE Coke at 82 in small quantities and bought in moderate quantities at 72. I used my money for these investments as I thought that this stock is a good buy for long term at these prices but it is a risky one for short term. At that time, I am sitting on huge cash from investment offers (I received good investments from 1 NRI and 2 north Indian investors just 4 days back). Suddenly, stock fell to 53 which is a steal. Here is a stock with bonus news, rights offer, good promoters and good quarterly results. Stock was trading at unreasonable valuations. Then I deployed my investment offers money. Why? I need to give just 40% returns in 6 months. Stock needs to reach just 75 to get that money in 6 months. As per fundamentals, I thought that it will easily reach that level by the time of bonus date (1 month). I don’t believe in the technical details like moving averages, resistances and supports etc. I believe in fundamentals and psychology of investors only.

If my company has good fundamentals and my entry price is reasonable, I don’t care about its short term movements.

B. Plan your investments for short, medium and long term. Allocate money accordingly.

C. “Derivatives are weapons of financial mass destruction” – Warren Buffett. Never look at them as investment vehicles. Derivatives are responsible for most of the stock market suicides.

Derivatives are invented by the brokers for the benefit of brokers.

What Is Face Value: By stockmarketguide

Face value is the value of a coin or paper money, as printed on the coin or bill itself by the minting authority. While the face value usually refers to the true value of the coin or bill in question (as with circulation coins) it can sometimes be largely symbolic, as is often the case with bullion coins. For example, a one troy ounce (31 g) American Gold Eagle bullion coin is worth and sells for about $670 USD at current market prices (as of July 17 2006) and yet has a face value of only $50 USD.

The face value of bonds usually represents the principal or redemption value. Interest payments are expressed as a percentage of face value. Before maturity, the actual value of a bond may be greater or less than face value, depending on the interest rate payable and the perceived risk of default. As bonds approach maturity, actual value approaches face value.

In the case of stock certificates, face value is the par value of the stock. In the case of common stock, par value is largely symbolic. In the case of preferred stock, dividends may be expressed as a percentage of par value.

The face value of a life insurance policy is the death benefit. In the case of so-called "double indemnity" life insurance policies, the beneficiary receives double the face value in case of accidental death.

The face value of property, casualty or health insurance policies is the maximum amount payable, as stated on the policy's face or declarations page.

Face value can be used to refer to the apparent value of something other than a financial instrument, such as a concept or plan. In this context, "face value" refers to the apparent merits of the idea, before the concept or plan has been tested.

Taking someone at face value is assuming another person's suggestion, offer, or proposal is sincere, rather than a bargaining ploy. As an example, a professional athlete may demand of team management, "Play me or trade me." In many cases, the athlete simply feels unappreciated, and small signs of appreciation, ranging from praise to a modest raise, will make him happy again. If the team management takes his demand at face value, they believe that the player truly wants to spend less time on the bench, and if they aren't in a position to use him more, they may trade him to a team that can.

Investing in shares

Learn FOREX Trading in 6 Simple Steps

The Six Steps:

1. Attitude

Firstly, it’s a well-known fact that the traders who make the money, approach FOREX trading with the attitude they will do what it takes to succeed. This means they don’t listen to guru’s or read tip sheets - they do it for themselves.

Too many novice traders think they can follow someone else and be successful - but the only person who can give you success is you!

2. Method

If you are going to trade FOREX, you need a method - and this does not involve day trading - it involves long term trend following. The big currency trends last for months or years - and your aim is to lock into these currency trends, and make big profits.

The best way to catch these long-term trends is to use a breakout method - this is a PROVEN way to make money, and breakout methods form the basis of many top-trading systems.

Good software is available form such vendors as Omni trader, Trade station, and Supercharts – any of these programs will allow you to test a method, and then when you’re confident, trade it.

3. Discipline

By developing a method you are confident in, means that you will be apply to apply it to the markets - and stick with it, even through loosing periods.

Most traders who follow gurus and tip sheets can’t do this – and as they haven’t developed a method themselves, they soon throw in the towel and discipline goes out the window.

4. Knowledge

You can learn a breakout method very quickly - but you still need to overcome the psychological pitfalls of trading. Read some books that focus on this area - some of the best include:

· Jack Schwager’s Market Wizards and New Market Wizards

· Edwin Le Feurve’s Remisenences of a Stock Operator

Also, any books by: Jake Bernstein and Larry Williams.

These books are motivational, and will keep you focused on the your task.

Trading is all about applying a trading system with discipline - and these books will help you achieve this.

5. Taking a Risk

When learning FOREX trading, most traders try and restrict risk above all else. However, they do it to such a degree, that they end up taking losses as they get stopped out the market. In many instances, the direction they chose was right – but they just didn’t give the trade enough room on the downside.

If you want to make big money by FOREX trading, keep in mind that with risk goes reward.

Taking calculated risks is quite different from being rash - you simply need to wait for the right opportunity, and have the courage of your conviction.

6. Trade in Isolation

Trade in isolation to stay focused - keep in mind that if you are subject to the opinions and views of others, which may differ from your own - it will put you off.

The fact that you may be doing trades no one else may agree with, is good - Why? Simply, because 90% of traders lose - so the mass opinion is not the one to follow.

Source-investor.thecheers.org

Forex Income Engine 2.0 Review

Forex Income Engine 2.0 is a day trading course from Bill Poulos that provides you with 3 separate intraday trading methods. These methods can be used in any time frame so are therefore ideal for day traders, or people who only have a limited amount of time to trade every day.

I was lucky enough to receive a review copy of the Forex Income Engine 2.0 course prior to it's official launch so let me give you my full review of this product:


Forex Income Engine 2.0 Course Contents

The course itself is a physical product that is delivered directly to your door. It consists of 7 CD-ROMs, full colour reference manuals in a 3-ring binder, trading blueprints that summarise each of the 3 trading methods and a quick start guide to get you up and running.

The 7 CD-ROMs are as follows:

• - Bonus Module - Forex And Trading Basics (51 minutes)
• - Module 1 - Background And Overview (39 minutes)
• - Module 2 - Ignition Method (98 minutes)
• - Module 3 - Overdrive Method (62 minutes)
• - Module 4 - Spring Method (67 minutes)
• - Module 5 - Forex Brokers, Charting Software And Trading Platforms (85 minutes)
• - Module 6 - Bringing It All Together (46 minutes)

Trading Method 1 - Ignition Method

The Ignition Method is a simple trading method that targets short-term continuation trends. Trades typically last between 2 and 6 bars and the profit objective can be anywhere between 10 and 50 pips, depending on the time frame you are trading and the set-up conditions of the trade.

This method, just like the two methods below, employs a two-part exit strategy which helps you to maximise your profits, whilst using a strict stop loss policy to minimize your losses.

Trading Method 2 - Overdrive Method

The Overdrive Method is my favourite method because it's gets you into a trade near the beginning of some of the strongest trends that occur throughout the day. Profit objectives are in the region of 25-100 pips (depending on which time frame you use) and I have to say that most of the time these objectives are fulfilled.

I've been testing this method out on various time frames from 5 minutes up to 30 minutes and my overall success rate is extremely high, particularly on the 15 minute and 30 minute charts where the trends are a lot stronger.

Trading Method 3 - Spring Method

The final method included in the Forex Income Engine 2.0 course is the Spring Method. This method looks for trend reversals and typical profit targets are again between 25 and 100 pips.

The problem with this method is that you don't tend to get as many set-ups as the previous two methods. However from the limited amount of back-testing I've done on this method, it does nevertheless appear to generate some decent profits when set-ups do occur.

I don't personally think I will be using this method as much as the previous two methods, but it's certainly a set-up that you need to keep your eye on because as Bill points out in his course, when a Spring Method trend reversal is in progress, you obviously don't want to be trading either of the other trend-following methods because they will usually fail.

As I've already said, these specific reversal patterns do not occur that often so most of the time you can concentrate on trading the Ignition Method and the Overdrive Method, which is what I've been doing.

Additional Modules

One thing I like about the Forex Income Engine 2.0 course is that as well as the 3 profitable trading methods, there are also modules covering risk management and discipline, which are two crucial elements of successful forex trading. Plus if you are a relatively inexperienced trader, there is also a bonus module that will teach you everything you need to know about forex trading. So this course really does cater for all traders, regardless of their experience.

Learning The Methods

The methods themselves are relatively straight forward. They all use the same 4 technical indicators and these indicators are commonly found in any charting platform.

Each method is explained in great detail and is demonstrated numerous times using lots of different examples of live trades. However I personally had to watch each video about four or five times before I became fully familiar with the intricacies of each method. It's the little things like learning where to place your stops, and where to move your stops as trades move in your favour that take the most time to learn.

If you do buy the course, however, you do have an advantage because you are given trading blueprints of each individual method which you can keep next to your computer for easy reference. (I didn't have this luxury when I received a review copy of this course which is probably why it took longer to learn each method).

How Profitable Are The Forex Income Engine Methods?

I've now had time to test out all of the methods and overall the success rate seems to be very high for each of the methods, and best of all they do genuinely seem to be profitable on all the intraday time frames (although I find the 15 minute time frame to be the most profitable).

It's obvious to me that each of these methods has been tested over and over again because the stop losses and exit points have clearly been designed to extract maximum profits from each and every trade.

In my experience the Overdrive Method is the one with the highest success rate and is easily my favourite method of the three. I've been trading this method on the 15 minute charts of the GBP/USD, EUR/USD and USD/JPY pairs and I've been experiencing a winning ratio of over 90% in the last week or so. After a while you get to know which set-ups are most likely to be profitable so it almost becomes second nature.

The Ignition Method isn't quite as reliable, particularly on the shorter time frames, but nevertheless it can still boast a success rate of around 60% in my experience, and even higher if you use the 15 minute chart or above. Therefore it's still very profitable because you have to remember that the profitable trades will more than compensate for any losses that you may incur because of the two part exit strategy that is employed. Therefore this method still has the potential to increase your account in the long run and I will certainly be continuing to use it on the 15 minute charts.

The Spring Method also appears to be profitable but I haven't tested it out that much to be honest. You wouldn't want to be trading this method in isolation because there are very few set-ups that meet the criteria, but to be fair the price does seem to reverse nicely, and therefore generate some decent returns, on the rare occasions when these conditions are met.

Final Comments On The Forex Income Engine 2.0 Course

I've always been slightly critical about day trading because I've never found any trading methods that have been able to generate consistent returns on these shorter time frames. However I have to say that Forex Income Engine 2.0 is easily the best day trading course I've ever come across because the methods themselves, particularly the Overdrive and Ignition Methods, are actually profitable.

What I like about these systems is there is a clear logic behind them. Any losses you incur are kept small whilst the winning trades employ a two part exit strategy, just like I do with my 4 hour trading strategy, in that half the position is closed for a small profit, and the second half of the position is left to run until it's conclusion, and essentially becomes a free position because you will have moved the stop loss up to break-even by this point.

Another reason why I'm a big fan of this course is that the methods themselves can be used throughout the day if you so wish because they trade a variety of different trading conditions. For example you can use the Overdrive Method to get you into a trade at the start of any strong trends, then you can use the Ignition Method to trade any continuation trends that may occur after a brief pull-back. Finally if the right conditions are met you can then use the Spring Method to trade any trend reversals.

So overall I can highly recommend the Forex Income Engine 2.0 course. It's not cheap by any means but I think that in this case the price really does reflect the quality of the product. You are paying for 3 profitable day trading methods that you can use for the rest of your life, so in the long run it could easily turn out to be a fantastic investment.

If you're not entirely satisfied with the product you can always return it within 90 days and receive a full refund, but if you take the time to go through all of the materials and learn each of the methods, I really don't think you will want to return the product.

Anyway I think I'm ready to wrap up this review now. I didn't intend it to be this long but I really am very enthusiastic about this course and wanted to get across all of the main points.

If you do have any questions about the course you are given unlimited email support for a year after purchasing the course and if you buy the course from the link below, I will be happy to assist you myself as well via email because I'm now using these methods myself on a daily basis.

Here's the link to forexengine 2.0 Course

Forex Income Engine 2.0

By- Forexarticles.com

10 Tips for your success in Forex trading

10 Tips for your success in Forex trading

1. Implement a trading plan.

“If you fail to plan, you plan to fail”. A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation.

Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.

2. Trade within your means

If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings.

Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.

3. Avoid emotion trading

If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.

4. Ride on a win and cut your losses

Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.

5. Love the trends

Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.

6. Stop looking for leading indicators

There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.

7. Avoid trading in a thin market

Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.

8. Avoid trading in too many markets

Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency pairs and drill down your studies in it.

9. Implement a proper trading system

There is hundreds of trading systems available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.

10. Keep learning

The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.

by-golearnforex.net

Good Time to Buy ?

The kind of fall that the Indian stock markets have witnessed over the past few months has been unprecedented. I’m sure that there are a lot of investors at the moment wondering if this is the right time to start buying quality stocks. In my opinion, it is better to wait until the market bottoms out completely, which in my opinion will happen around December. As they say, never catch a falling knife. I think the stock markets around the world are nearing the bottom and individual stocks have already started bottoming out. Hence those investing on a long term perspective can start buying small quantities of shares in blue chip companies which are available in pretty good valuations at the moment.


by-bullishindian.com

Indian Rupee Gains on Global Optimism- by topforexnews.com

The Indian rupee rose at the fastest pace in a week today as the revival of the global stock markets restored the optimism of the traders that the foreign investors will return to Indian, buying the local assets with the local currency.

The involvement of the foreign investors into the Indian stock exchange during the last trading session exceeded the presence detected during the previous 5 trading days. The benchmark SENSEX index grew by almost 0.6 percent today.

After the rupee reached its short-term maximum (in the last two weeks) today, the analysts started to comment the favoring of this currency as the it may seem to be one of the most attractive emerging currencies when the investors’ confidence improves.

USD/INR declined by 0.4 percent — to 48.645 as of 7:09 GMT today — the biggest decline for this currency pair since January 27

How to Invest In Share Market..

Investments in stock market can be both direct and indirect.If you invest in mutual funds,which in turn invest in the stocks, is indirect investment.

On the other hand, if you want to buy and sell shares on your own, you have to register with any SEBI registered broker.You will need a PAN card also, which is made mandatory for all investments and opening a demat account.Find out the brokerage which is nearer to you.You need a savings bank account with cheque book facility also.

Demat account for shares is like savings account for your currency.Your holdings are held in digital form.Whenever you sell, you need to issue a delivery instruction slip which wil be provided by your depository participant.Shares bought will directly go to your demat account if you open a demat account with the broking house through which you want to invest.

Face value as said by the other answerers is largely symbolic.It can be any of the following:1,2,3,5,10,50 or 100.Some companies declare dividends as a percentage of face value, some others declare in rupees per share.EPS is also based on face value.A company earning 2 rupees per share of 1 rupee face value is same as one earning 20 rupees on a share of 10 paid.

Top 25 mutual funds across all categories in India by-rediff-mutualfunds

Annual returns*
ICICI Prudential Mutual Fund
+ ICICI Prudential Gilt Fund - Investment Plan - PF Option - Growth
40.58
JM Financial Mutual Fund
+ JM Nifty Plus Fund - Dividend
40.08
Kotak Mahindra Mutual Fund
+ Kotak PSU Bank ETF - Growth
36.02
Reliance Mutual Fund
+ Reliance Liquid Fund - Treasury Plan - Institutional Plan - Dividend-Monthly
35.86
Benchmark Mutual Fund
+ PSU Bank Benchmark Exchange Traded Scheme - Growth
35.35
Canara Robeco Mutual Fund
+ Canara Robeco Income - Growth
30.38
ICICI Prudential Mutual Fund
+ ICICI Prudential Gilt Fund - Investment Plan - Growth
30.16
JM Financial Mutual Fund
+ JM G-Sec Fund - Regular Plan - Growth - Growth
30.10
JM Financial Mutual Fund
+ JM G-Sec Fund - Regular Plan - Dividend - Dividend
30.07
JM Financial Mutual Fund
+ JM G-Sec Fund - Regular Plan - Growth - Bonus
30.05
Escorts Mutual Fund
+ Escorts Gilt Fund - Growth
28.67
Sundaram BNP Paribas Mutual Fund
+ Sundaram BNP Paribas Select Thematic Financial Services Opportunities - Growth
28.50
Escorts Mutual Fund
+ Escorts Gilt Fund - Dividend
28.33
DSP BlackRock Mutual Fund
+ DSP BlackRock G-Sec Fund - A - Growth
26.57
Sundaram BNP Paribas Mutual Fund
+ Sundaram BNP Paribas Bond Saver - Institutional Plan - Growth
25.12
Reliance Mutual Fund
+ Reliance Liquidity Fund - Dividend-Monthly
24.80
Reliance Mutual Fund
+ Reliance Monthly Income Plan - Growth - Growth
24.54
Franklin Templeton Mutual Fund
+ Templeton India Govt.Sec. Fund - Long Term Plan - Growth
24.33
ICICI Prudential Mutual Fund
+ ICICI Prudential Income Plan - Institutional - Growth
24.18
ICICI Prudential Mutual Fund
+ ICICI Prudential Income Plan - Growth
23.87
Birla Sun Life Mutual Fund
+ Birla Sun Life G-Sec Long Term - Growth
22.96
Reliance Mutual Fund
+ Reliance Banking Fund - Growth
22.87
Reliance Mutual Fund
+ Reliance Banking Fund - Bonus
22.87
Reliance Mutual Fund
+ Reliance Banking Fund - Dividend
22.83
Franklin Templeton Mutual Fund
+ Templeton India Govt.Sec. Fund - PF Plan - Growth
22.54

9 great tips from stock market masters by rediffnews.

Great traders are created, not born. Those who lack discipline, persistence and self-confidence lose the never-ending challenge of trading profits. But those who survive the battle by using the tools used by the masters enjoy the fruits of consistent success.

Different master traders use different methods and approaches. But what is that one aspect that the greats all agree on, masters ranging from George Angell, day-trader, technical analyst par excellence; Gerald Appel, father of MACD, one of the most widely followed timing tools; Bruce Babcock, developer of trading software; George Lane, father of stochastics and one of the most experienced technical analysts in the world; Robert Prechter, the pre-eminent Elliott Wave analyst whose forecasts are followed by traders throughout the world; Welles Wilder, the man behind Delta and RSI and developer of technical tools that have revolutionized the trading world; and Larry Williams, colourful, controversial - a legend in his own time.

No, it's not some glamorous or sexy new fail-safe technique. Rather the one aspect of universal agreement among master traders is the importance of discipline. Discipline is probably the most worn-out term in trading. But that doesn't alter its importance. Also, saying the word is one thing; truly understanding its dimensions on an operational or behavioral level is another. Here are the golden rules of disciplined trading.

Be persistent

This is perhaps the single most important quality a trader can possess. Trading requires the ability to continue trading even when results have not been good. Due to the nature of markets and trading systems, good times frequently follow bad times, and bad times frequently follow good times. Some of a trader's greatest successes occur following a string of losses. This is why traders must be persistent in applying their trading methods and continue using them for a reasonable period of time.

Accept losses

Another important quality that the market masters emphasise is the ability to accept losses and to take them promptly. Perhaps the single greatest downfall of all traders is the inability to take a loss when it should be taken. Losses have a nasty habit of becoming worse rather than better. Unless they are taken when they should be, the results will not be to your liking.

Avoid overtrading

Too many traders feel that they must trade every day. Such traders are addicted to trading. The fact is that some days offer few if any trading opportunities. The trader who wishes to preserve capital and avoid losses as well as unnecessary commission charges should understand that trading, other than mechanical day trading, is not an everyday event. There will be days when no trades are indicated. This is for the best.

Specialise

Successful trading is a time-consuming undertaking that requires close attention. Which is why many market masters specialize in certain markets. In most cases, successful trading requires diligence, follow-through and persistence. Because most trading techniques require close attention, traders should not be involved in too many markets at one time.

I suggest that five to seven markets are sufficient for most traders. In fact, for new traders, I recommend specialising in one or two markets and attending to them thoroughly to develop your skills and increase your overall profits.

Begin with sufficient capital

Perhaps one of the worst blunders that any trader could commit is to trade with insufficient capital. Virtually all the market masters agree on this point. The argument may be made that the futures trader does not need to have substantial capital in his or her account since trades are closed out at the end of the day and therefore the necessity for sufficient margin to maintain positions is eliminated.

While this may be true, those with limited funds cannot play the game as long as those with larger funds. In any venture it is important to start with sufficient capital so that the trader will not feel pressured to perform and can allow the particular trading system or methods sufficient opportunity to ride through periods of poor performance.

Use news to your advantage

Many a trader has learned the hard way that following the news frequently leads to losses. However, I have discovered ways in which the trader can use the fundamental news or developing international, domestic or political news to his or her advantage.

Do not be a follower of the news; rather 'fade' the news. Use the news to exit positions that you probably established before the news became public knowledge. I firmly believe in the old market dictum: Buy on rumor, sell on news.

On an intra-day basis, markets are very sensitive to news well before the news is known by most traders. Insiders buy and sell on expectation, sometimes based on rumor, frequently based on fact. They establish positions before the general public is aware of the news; once the news has become public knowledge, they take advantage of the surge or the drop in prices to exit positions.

Take advantage of brief price surges

At times, markets will drop or rally quickly, seemingly in response to no news. What may be happening is a rumor on the trading floor, a large buyer or buy order, or large seller or sell order of which you are unaware. Such brief price surges or drops are opportunities for you to exit positions at a profit or to establish a new position. It is important to develop this quality as a futures trader since it is entirely consistent with the futures trading objective.

Stick to your goals

Above all, remember that as a trader you have one major goal: to make money. To do so, you must be particularly aware of your net profits at all times. My advice, which is based on many years of trading, is to set yourself specific standards and conditions under which you will begin to liquidate positions. Do so while the trend is still in your favor. You may either begin to close out your positions at that time or you may use a follow-up stop loss procedure to 'lock in' existing profits.

Use market sentiment to find short-term and day-trading opportunities

I have already discussed the importance of going against the majority opinion to find profitable trading opportunities. I believe that this is one of the most important qualities a trader can possess. While there is certainly a great deal of money to be made in trading with the existing trend, it is also important to know when the existing trend has reached a possible turning point.

One of the best ways, if not the best way of doing this, is through the use of market sentiment. The trader must also be a contrarian. This does not mean that you must buck the trend, but it does mean that you must always be aware of whether sentiment is very high or very low.

This will give you important clues as to whether you should be quick to take profits, whether you can allow profits to run and whether you should look for trading opportunities on the opposite side of the existing trend.

I have learned, after many years of trading, that the major difference between those who are successful traders and those who are not is found in their discipline, their psychological makeup and in the skills they have acquired as traders rather than in the trading systems, they use.

What is Foregion Exchange

The foreign exchange market (currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. [1]FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixedas per the Bretton Woods system till 1971.

Presently, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and otherfinancial institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by theBank for International Settlements.[2] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.[3]

In recent years, there are many people are involved in forex trading. Do you know what forex trading is ? Have you ever saw trading on the stock market? OK, Forex trading is just quite similar with that and in this field we make a deals with trading currencies amongst different countries which is usually done with a financial institution or a broker.

At this moment, we can say that Forex becomes the largest market on the planet and it is always changing, worldwide, 24×7. All these aspect is one of the things that makes forex so exciting. With that kind of activity, it is not always accurately predictable, but you need to understand the market so that you can jump on profitable trades and minimize your losses in losing trades, which is all based on the strategy that you utilize.

However, before you start to trade, one important things that you need to know and understand forex trading is a gamble, and like the advice offered to those who want to enter this field, never play with money you cannot afford to lose. Keep in mind There are no guarantees in the forex market, which means that you need to utilize all the tools at your disposal to ensure you have considered all factors that will impact a currency’s value, both now and in the future.

They are a key player when it comes to forex markets and trading. The central banks are located in New York, Tokyo and London. In fact, these are the areas where the concentration of central banks are the largest. If financial institutions suffer a loss in the forex market, the investors will also feel the loss.

If you really want to get serious please take the time to learn the forex market, since the financial rewards are huge, but make sure you also protect yourself by allowing for a potential loss.

Hope this blog will help to overcome this market situation.

The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollars, Euros, Japanese yen, Pounds Sterling, etc., and the need for trading in such currencies