Forex trading

The Pros and Cons of Forex Trading

Wed, 12 Nov 2008 06:39:36 PST

When a person decides to take on trading, whether online or day, it is easy to get overwhelmed with all the tools available for use.

There are so many different places to trade its hard to know where to start. You can choose from stock options, futures, forex just to name a few. But the best advice is to experiment with different ones and then you can find out where you belong, and what you are good at maximizing your investment dollar.

For stocks and futures have a lot of good things going for them, but they also have a lot of bad things going for them as well.

For instance, with stocks and futures, you will need to have a lot of money to get started. It's not meant for those that have limited funds.

I wouldn't expect stocks to give much leverage either. Stocks can be had for 10.00 or less, however stretching your money will take more time for your investment to yield returns. The reason for it to take longer is that the cheaper stocks have a low rate of return.

Investing in futures can be a very expensive and for some a very dangerous venture. If you don't know what you are doing, you are going to wish you had because when each tick value is worth over 10.00 losses can add up rapidly. And people have learned that crashing an account can be done quickly. All you have to do is take a glance at the S&P e-mini. If your are going to consider investing in futures, study up and make sure you know what you are doing, because if you invest you won't be the first that looses a lot, and I bet you won't be the last that looses big.

But forex, is just perfect for all the newbies in the trading world.

Trading markets are 24 hours a day. The markets only close for the weekend but during the weekday, it is open 24 hours a day. This is perfect for those who work during the day, and don't have time to follow the trading charts during work hours. This give everyone time to trade.

Mini and Micro Accounts: Many brokers offer mini and micro accounts for their customers. This is great for those that are just starting out and don't want to risk that much per trade.

Most forex brokers allow you to set up a brokerage account with a small limit of $250.00. Deposits all have low minimum account requirements.

There is great diversification: There are dozens of choices of currency pairs in which to trade.

Our Highest Recommendations is forex mentor.

Make Money with Stocks the Way Professionals Do It

Tue, 03 Jun 2008 02:09:52 PST

For instance, a new trader (investor) in the stock market may buy a stock because its price decreased a lot. This may work if one were to buy a hard commodity such as gas at the pump, a laptop, clothes, etc, but it does not typically work in the stock market.

Here is a system that would be more reasonable to test with the phone to show you ways you may have not considered before. Buy only stocks (never use real money unless it is risk money and you have tested the effectiveness of any method including the method described below), according to the following recipe:

Create a list of stocks that have a positive earning. Never include a stock with negative earning.
Reduce your list of step 1 to only stocks for which the latest earning is higher than earning a year ago.
Reduce your list of stocks that passed step1 and 2 even further. Now your stock must be such that its price today is greater than its price one year ago. This may sound counter-intuitive but if the price price is higher than a year ago it means that it has been performing well, and if it continues to do so you may be selecting a good stock.
Buy a stock only at a pivotal day for the market and for the stock. A pivotal day is the first day when the price of your stock reaches a price higher than the higher price it reached the day before, and the low of price of the day before is lower than the price of two days ago. Do not under-estimate this rule.You essentially want to buy your stock after a retreat, and only when the retreat has ended. The rule described in this step aims at achieving it.
Allocate only 5% of your capital to any one stock.

Test the recipe of this article for a long time before considering trading real-money. Also seek professional advice and learn from professionals. To get you started I am including a link to a trading course containing some elements related to this article. The methods described therein work for any financial market including stock trading as well as forex trading.

Simple Forex Trading Skill

Wed, 02 May 2007 07:36:05 PST

Trade Forex is risky but if you found a “holy grail” you'll easily triple your money in just one trade!

Today I would like to share with you guys a simple way to trade FOREX like pros!. I learn this skill from a FOREX forum named forexfactory.com . This skill is work for me, and i hope all of you will practically doing it.

The skill called SRDC by Orange Roshan- support resistance daily chart. This is the simplest way i ever knew how to trade FOREX like pros! Ok, what we will do?

Open your daily chart candlestick
Put horizontal line for high-low of yesterday price

Ok, that's it. You only have to do 2 things!

When to enter trade?

According to Orange Roshan, you can enter trade if the price penetrate yesterday high or low price. Take profit 5 pips only, but if you make an analysis using previous daily chart, you can see that to get 5 pips is easy! So i suggest that you trade using half of your capital. Even though you only get 5 pips only, but with large amount you'll get big return also.

Forex Broker ?

This skill can be used with all FOREX broker software in the world ! Just remember that what you need to do is to put horizontal line for yesterday High and Low price only.

If you can't monitor the price movement for the whole day, the better way is using pending order. Put your order and leave!