Commodity Futures and Options Trading- Money Management, Risk and Trading Logic, PART 5 by Thomas Cathey
Possibly the most important aspect to get right in trading is survival. This is number one. Without surviving the bad times we are gone, with no hope. Money management and risk may sound like boring subjects, but read on to see how exciting they can be once you learn the concrete reasons and logic for their use. You may never trade the same way again!
If you are trading at 70% accuracy, you can risk perhaps 10% on each commodity trade and survive the bad runs. But, even a 70% accurate commodity futures trader will have times when he is wrong 5-6 times in a row and more. The best traders risk less than 5% on each trade. That's what having a big bankroll is all about. Not to carry large positions, but to survive the bad times and be able to trade another day.
Commodity futures pros do not have the luxury of blowing out their accounts like someone who has a day job and trades for a hobby. It's like playing poker and having the advantage of the most chips at the table. Probability smiles on those who can hang in there the longest to let the odds swing their way. Those who are under-capitalized, thus in for a short spell, (risk a lot on each trade) have to be "lucky" to catch a run before their chips disappear. That's why we need to have a method that attempts to identify, "high probability, low risk" trades. Remember this phrase: "high probability, low risk trades"
If you have less commodity account money to trade with than you desire, you can also gain this "deep pockets" edge by reducing your trading size. Most commodity futures and options traders could easily reduce their normal position size by one-half and instantly become better traders. Reduced pressure and survivability are only two of many reasons to trade smaller.
One more point about losses. Whether you use a mental or actual stop loss order, this exit point must be determined based on the specific market set up or conditions and not based on how much money you feel you should risk that day. You should start by deciding how far the market needs to move to negate your set up to make you wrong.
If price needs to go a long way to make you wrong, then this is not a low risk set up, now is it? Once you determine this distance, then and only then can you decide on how many future contracts or options to buy. If your money management parameters say to risk $1000, and the distance to prove you wrong is $500 a contract, then that means you can hold only two futures contracts. That's it.
Many commodity futures traders do this backwards by saying they want to buy ten futures contracts - now where do they put their stop to risk only $1000? The stop will probably be too close and it will be like giving money away. It's just another form of over-trading. The commodity market doesn't care how much money you want to risk. The only concern for you is at what point are you wrong and that's the point you want to throw in the towel for your predetermined loss.
With a small position you can let the market fight to get your money by traveling a long way, breaking through stubborn support or resistance, or chopping nowhere for a period of time. Whatever you do, don't load up on a commodity position with more than your normal risk amount and then place a close stop and think, "this time is different."
Play the game for the long run with every trade executed as perfectly as you can. The keenest competition out there is trying to get your money by doing things correctly every time. Don't make it easy for them. Stay in the game, trade small, and execute your plan flawlessly every time. This will give you an edge over the vast public. Public speculators are generally poor traders with little discipline and plans. Be better than them and you have a chance of coming out ahead. Don't worry about the superstars. There will be times when you eat their lunches too. Nobody wins all the time.
I focus much on loss strategy because if you can greatly reduce them, then the profits will take care of themselves. Realize that losses are part of the commodity futures and options game and no perfect trading system exists. Demanding trading perfection of yourself is futile and a sure road to failure. To make money, you don't have to be the best trader in the world - just better than most!
Good Trading!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.
About the Author
Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his market forecast TimeLine Trading charts and get his complete 44+ lesson, "Thomas Commodity Trading Course - all free."
Sunday, May 20, 2007
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic, PART 5
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic, PART 4
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic, PART 4 by Thomas Cathey
Possibly the most important aspect to get right in trading is survival. This is number one. Without surviving the bad times we are gone, with no hope. Money management and risk may sound like boring subjects, but read on to see how exciting they can be once you learn the concrete reasons and logic for their use. You may never trade the same way again!
There are commodity futures and option traders who make multi-millions every year. Some have been known to earn several hundred million a year. They consistently make a great living, to say the least. And there are traders who consistently lose. Commodity trading is a big arena, just like the stock market.
I used to wonder why the CFTC didn't come down hard on commodity firms and brokers who consistently lost money for clients. I thought that if it was any other kind of business, wouldn't the consumer protection or some government authority shut them down?
Then it dawned on me. This is a zero sum game! It's actually a negative sum game when commissions and so called "exchange, transaction, etc." fees are added in. For every commodity trader long there is someone short. For every winning uptick for one trader, there is a losing uptick for someone else.
So this means that half of the money must be lost by somebody if half are winners. Or 95% of the money is lost by commodity traders who give it to 5% of the prosperous others. With a zero sum game, there MUST be many losers, and some big losers if there are big winners. If the CFTC did an audit of a commodity brokerage firm, they could well EXPECT to come in and find brokers with customer accounts that are doing poorly. Brokerage commissions and profits won by the best traders must come from somewhere.
This is normal and the way the futures markets (and stock markets to some degree) have worked for over a century. As long as everything was done legally and ethically, there is no problem with customers losing. There is always a winner and loser in commodities. The same with Las Vegas. Vegas is also a negative sum game, given the house odds. The casino house is equivalent to the best commodity traders. (and brokerage houses, of course)
Interestingly enough, theoretically, an exception is the stock market. You could have 100% winning traders if everyone were long and all the stocks kept going up. Even the commissions could be covered. But this is never the case in the real world. There is probably no difference in losing statistics for stock or commodity speculators. It's a strange arena, this trading. You simply must remember that it is YOU against the competition. And there are sharp traders out there. Pure capitalism. You must make it as difficult as possible for them to take your commodity account money away.
Bottom line: When your commodity trading method's accuracy is low by design, you MUST let your profits run bigger than losses and limit your losses in order to be profitable to survive over the long haul. You should also never risk more than 5% to 7.5% on any one trade. When trading accuracy is high by design, you can then let the profit to loss ratio get closer to 1:1, take quicker profits and slower losses and risk up to 10% a trade. Remember that your goal is eventually to risk 5% or less a trade, as many professionals do.
Five of Five Parts - Next!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.
About the Author
Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his market forecast TimeLine Trading charts and get his complete 44+ lesson, "Thomas Commodity Trading Course - all free."
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic, PART 3
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic, PART 3
by Thomas Cathey
Possibly the most important aspect to get right in trading is survival. This is number one. Without surviving the bad times we are gone, with no hope. Money management and risk may sound like boring subjects, but read on to see how exciting they can be once you learn the concrete reasons and logic for their use. You may never trade the same way again!
Commodity option buying can be rough for novices. Some see a TV pitch about striking it rich in gold or heating oil. They load up their entire account buying way out-of-the-money options, lose all of their trading capital through premium erosion and then curse the market. They don't consider to survive they must prepare for the inevitable string of losses when trading at 10% accuracy. We need to survive long enough to be around when that 10% option winner hits big. The other 90% will be losers simply from the probability of the method used.
In this case, it means dividing our trading capital into at LEAST twenty parts to be able to survive the string of losses that probability will surely bring our way, over time. It's about survival and knowing what type of commodity trading we are doing so that we can adjust the money risked on each trade. If we are trading at 10% accuracy, (option buying) and expecting to make money on the first 3-4 trades, it's pure arrogance.
Then there are some commodity option traders who will overload themselves by buying large option positions and are willing to let them erode away, taking a full 100% loss of the total account. They have no plan to exit if the market does not act properly. Not a good idea. Though, some buy a commodity option and use its full loss as a stop loss in itself. That's acceptable ONLY if you do it with small positions. But the sad thing is when these guys get a mere double in the option price, they call that a big profit and grab it. Pure lunacy!
How can one be willing to lose their total investment and at the same time take tiny gains while still trading at 10-20% accuracy? The results are predictable. They consistently lose. Their excuse is the analysis is bad, or the commodity markets are poor or they should have gotten into another trade instead. You can point the math out to them, but they do not get it. No matter what they do, the result will continue to be the same unless money management changes are made. By the way, one definition of insanity is doing the same thing over and over while expecting different results. (grin)
The bottom line is that if your commodity trading method generates an average of 20% (at best) accuracy by design, as option buying way out-of-the-money often does, you had better be seeing your average gains four times larger than your average losses. And, this is just to break even not counting commissions, bid-offer spreads and slippage! This means if you think a $2,000 loss is prudent, you had better be averaging $8,000 gains to break even. Just to break even!
You must sit on your hands and let the profits run when buying options. This is over the long-haul where things even out over time. In the short term you may trade better or worse, but over time, probability will put you where you spend the most time. With a $10,000 account, if you're taking $2,000 profits and $2,000 losses when trading 20% accurate, you will probably be out of the commodity option business in less than ten trades. This may sound like fiction, but believe me, many new traders do exactly this, thinking they will win in the end.
Part Four of Five Parts - Next!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.
About the Author
Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his market forecast TimeLine Trading charts and get his complete 44+ lesson, "Thomas Commodity Trading Course - all free."
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic
PART 2
by Thomas Cathey
Possibly the most important aspect to get right in trading is survival. This is number one. Without surviving the bad times we are gone, with no hope. Money management and risk may sound like boring subjects, but read on to see how exciting they can be once you learn the concrete reasons and logic for their use. You may never trade the same way again!
Here's the harsh reality. On average, many commodity traders trade at perhaps 30-50% accuracy when they hold positions for 2-3 days. That's a GOOD batting average for this time frame. But, the problem is they think they can take small profits and large losses and still survive. It's all about probability and doing the correct thing over a long period of time. Probability will eventually catch up if you are trading at 50% accuracy and taking smaller gains than losses. We must work out a trading plan that makes us take profits in proportion to the accuracy of our trading method.
One area that stands out and magnifies this problem is commodity options buying and selling. Generally, selling options far out-of-the-money with a month to expiration can sometimes give you win/loss accuracy runs of 90% + at times. However, the profits are small and that 10% loss is often a big one that can take back much if not all the little profits. Commodity account risk management is more difficult when the profits are small.
And, conversely, buying options way out of the money can yield results as low 10% accuracy. But IF the rare winning option is held for a big gain, it will make up for the many small losses - but not always. This is where your option trading and analysis skills make the big difference and give you an edge to rise above the crowd.
Just a small edge can mean so much. It's like the difference between a golfer who hits par and one who hits a few strokes under par - who wins the tournaments? Or baseball batting averages of 275 vs: 325 - or pitchers who can throw 85 mph compared to one who can throw 99 mph. It's like night and day. It's the same thing with commodity futures trading. A little means so much. It's worth striving for.
Buying commodity options can be a tough game. Remember, to win when buying an option, the futures contract must move in the correct direction and do it quickly in the time granted. That's the only way to win. The commodity option will lose if the underlying futures contract price goes nowhere, goes in the wrong direction or even goes it the correct direction, but not fast enough! That's why 10-20% accuracy is a good average for buying way out of the money, long term commodity options.
To succeed buying commodity options means you need to exploit the trades that work out. Forget about taking small profits, or play another game where you can take smaller profits, like day trading and other methods. The saying, "you can't go broke taking a profit" does not apply to long term commodity option buying. (And stock option buying)
Conversely, when selling (writing) a commodity option, you will profit if the option simply does not go above a certain point in one direction by expiration time. It's "easier" to be right when selling a far out-of-the-money option, but the profits are small in comparison and the occasional loss that comes along can sometimes be big. The commodity market really does price things accordingly. There's no free lunches. That's why you need to develop your edge or let someone who has one, trade your money.
To repeat, there are three ways to be wrong when buying commodity options, thus the low accuracy rate; and only one way to be wrong when selling (writing) them, thus the high accuracy of the method. The win/loss ratio and the percentage of accuracy reflects this. Call it a wash, if you will. You really need an outside edge to beat this commodity game.
If you do not know what your edge is, then you don't have one and the market pros with an edge will eat your lunch over time. Maybe not right away, but over a long run of probabilities, they will take your money away.
Part Three of Five Parts - Next!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.
About the Author
Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his market forecast TimeLine Trading charts and get his complete 44+ lesson, "Thomas Commodity Trading Course - all free."
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic
Commodity Futures and Options Trading- Money Management, Risk and Trading Logic
PART 1
by Thomas Cathey
"Survival" is possibly the most important aspect to get right in trading. This is number one. Without surviving the bad times we are gone, with no hope. Money management and risk may sound like boring subjects, but read on to see how exciting they can be once you learn the concrete reasons and logic for their use. You may never trade the same way again!
Let's talk more about the most important subject in commodity futures contract and option trading; money management, probability and risk.
First of all, we need three things to be successful in commodity trading. With all three working well, we are like a three-legged tripod standing firm. Take one away and the whole commodity trading program falls apart. First, we need good market analysis to tell us when and where to buy and sell. Next, we need the right psychological frame of mind to effectively carry out the plan with minimum errors. And last, we need prudent money management techniques to stay in the game.
We can have the best buy and sell points in the world giving us 90% accuracy, but if we put all our money on each commodity trade, we will soon be wiped out. Or we can have the best money management, but if our buying and selling timing is bad, we will fail. And we can have great buy and sell points and good money management, but if we are not following our rules and doing self-destructive things to our trading, we will fail. All three must be running well and in sync. They are ALL equally important. The same applies to stock trading.
Let's focus on money management. I have witnessed this area being the most abused of all. Many commodity futures traders spend a lifetime on market analysis but little time on money and risk management. I think it's because many futures traders do not understand the survival mathematics of the game. It's so easy to see once explained.
Let's take a few examples. Say we are trading at 50% accuracy - that is, half of our trades are profitable and half are losers. Fifty percent accuracy is superstar status for way-out-of-the-money option buyers, a great average for long term traders, reasonable for day traders and very poor for way-out-of-the-money option sellers.
As you can see, percentage of accuracy (win/loss ratio) can be anywhere from 10% to 90% for a profitable commodity trader; it all depends on the trading method used and the person's trading skills. Of these two, the biggest effect on the win/loss ratio is the TYPE of trading method used.
To analyze your own trading accuracy, start by discovering the ballpark percentage for your general trading method. This is a rough figure based on simple computer back-testing performance. Then figure your real-world accuracy over a long period of time through actual commodity trading. To break even at 50% win/loss accuracy, we must have a 1:1 profit to loss ratio. For example, our average loss must be $500 and the average gain must be $500 when trading at 50% accuracy to break even. This does not account for commissions and human execution errors and slippage. When counted, the accuracy (win/loss ratio) would have to be BETTER than 50% to break even.
More examples:
If we are completing three out of four commodity trades successfully, (75% accuracy) then we can break even with $750 losers and $250 gains. And if we are trading 25% accurate, then we must see $750 gains and $250 losses to break even.(not including expenses) See the point? Read this again until it makes sense. It is important.
Part Two of Five Parts - Next!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.
About the Author
Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his market forecast TimeLine Trading charts and get his complete 44+ lesson, "Thomas Commodity Trading Course - all free."
Friday, May 18, 2007
Ten Simple Investment Tips
Ten Simple Investment Tips
by John Marston
When I first started trading the stock market, there was not the wealth of information available online like there is today. I read a lot of books and learned the terms and thought I knew everything necessary to make my fortune trading the market. I found a discount broker and started plugging away, and immediately lost my shirt.
Even though I had read these same tips in numerous places, I really didn't understand the importance of them until I had learned them the hard way. As they say, experience is the best teacher, if you survive the lesson.
These are things that I wish I had really used when I first started trading.
1. Never invest money you can't afford to lose.
2. Never invest money you are afraid to lose. If you are too uptight, you are guaranteed to make bad decisions.
3. Never buy a stock you receive in an unsolicited email or in a mass mailing. Many times, these turn out to be low cost, thinly traded penny stocks that some one is trying to pump up the price and dump them.
4. Most of them time, you should buy stocks at the open of the market. The first hour of the trading day typically has a lot of volatility. Stocks tend to stabilize after the first hour; you could end up paying too much trying to get a stock, only to have it settle down in price 30 minutes later.
5. As a new investor, never buy stocks on margin. It is ok to have a margin account; just don't use the margin until you have enough knowledge to keep yourself out of trouble.
6. Don't worry if you think you just missed the biggest trade of the year. Never chase a stock trying to get on board, if you wait 30 minutes, another trade will come along that is just as lucrative. (This one tip would have saved me a fortune)
7. Learn how to use a trailing stop. Immediately after buying a stock, put in a stop loss order, and keep raising the stop limit. This will preserve your gains, but more importantly will preserve your capital.
8. Never buy until you have determined when you are going to sell. You need to know what point you will accept a small loss and move on. Then when you buy, keep that stop loss point; never change this point in the heat of the battle, because this is guaranteed to cost you money.
9. Never get greedy. The old market saying is Bears make money, Bulls make money, Pigs get slaughtered is very true.
10. Don't treat the stock market like it is your private Las Vegas gambling casino. It's ok for a small portion of your portfolio to gamble, but it's called investing for a reason.
If you follow these simple tips, they will save you some of the misery that I went through early in my trading career. Try not to get bogged down in all of the information overload that is coming at you from all directions. Slow down, there will plenty of good trades available to you tomorrow, if your trading capital is still available.
About the Author
If you would like additional trading information, please go to Trade The Stock Market or to my Forex Review Site.
Do You Really Need A Broker To Trade?
Do You Really Need A Broker To Trade?
by John Marston
Is a broker really necessary to trade in the stock market? Years ago, the perception was that only grey haired men in pin stripped suits traded stocks in the stock market. The average person did not know any thing about the market, it was shrouded in mystery. Most people did not know what a Hedge Fund was, or for that matter understood anything at all about options or futures.
This has all changed in the computer age. But even so, just a few years ago, the average person trading in the stock market was limited to calling his broker and executing a trade. Most people relied on the broker to give them advice about buying and selling.
With the advent of online trading, the broker's position has changed. He is no longer giving advice as to what to buy and sell, but is only processing the orders of his clients. With the deep discount brokers, there is very little contact between the trader and a live person at the brokerage. Now, the average person can remove the middleman from the equation, and as a result, have lower trading costs.
Getting involved in the market can be fun and rewarding. It can also be painful and costly. Each person trading the market needs to perform his due diligence and understand the market he is trading in.
There are both pros and cons to trading without a broker. The biggest con is not having the expert advice about a particular investment. Now, the individual investor has to research the stock on his own. Of course, this is offset by the fact that some brokers were nothing more than market churners, they recommended the hot stock of the day, sometimes just to drive the price on a thinly traded share, leaving the investor holding the bag.
There are many pros to trading without a broker. The biggest would have to be cost, it can cost as much as ten times more to use a full service broker compared to a deep discount broker. Also, you do not need a huge bankroll to get started; you can open an account for $500 with some firms. The low fees, along with small initial investments allow even the smallest investor to start trading online.
It is really easy to trade online. Most firms have a simple computer program to allow fast trading. Some firms will even allow naked selling of options. Of course, this is only allowed for the more experienced investor with the larger account.
Eliminating the broker opens up a lot of freedom for the investor and puts all of the control in his hands. The downside, there is no one to blame bad investments on other than yourself.
Trading in the stock market without a broker can be a lot of fun. It doesn't matter if you are day trading or taking a long term holding approach, learning the ins and outs of trading the market without a broker can be exciting and rewarding. Online trading is a trend that is sure to continue.
About the Author
If you would like additional trading information, please go to Trade The Stock Market or to my Forex Review Site.
Opt For Unsecured Loans UK, Keep Your Assets Mortgage-Free
Opt For Unsecured Loans UK, Keep Your Assets Mortgage-Free
by Carmen Cortez
A collateral-free loan has its hidden vices. This is simply not the truth. This was a belief that used to make people doubtful of the deals that are offered by the lenders. But this is not the case now. Unsecured loans UK provide money for the people who do not want to risk their asset and this money is offered at competitive rates to them.
* Wedding expenditure
* Education expenses
* Debt consolidation
* Holiday expenses etc.
Through
Since unsecured loans UK do not demand any collateral, the risk factor for the loaned amount is high. So to make up for that, a higher rate of interest is charged. Although competitive rates can be found out, the rate depends upon the repayment ability that the borrower is able to furnish to the lender of unsecured loans UK.
People having a poor credit rating can also avail unsecured loans UK. The rates offered are higher than the usual rates being offered but still, competitive rates can be found by thorough research which can be done online. A proper comparison of the various quotes of lenders for unsecured loans UK should be done so that only the best offer is accepted.
Unsecured loans UK are borrowed for the purpose of meeting the financial needs without placing collateral. Proper research can help obtain competitive rates of interest from lenders of unsecured loans UK.
About the Author
Carmen Cortez is a specialist advisor of every type of business loan and currently working as financial consultant in Low Cost Unsecured Loans. For further details of unsecured loans UK, bad credit unsecured loans,unsecured loans,low cost unsecured loans,personal unsecured loans,unsecured tenant loans visit http://www.lowcostunsecuredloans.net/
Opt For Unsecured Loans UK
Opt For Unsecured Loans UK, Keep Your Assets Mortgage-Free by Carmen Cortez
A collateral-free loan has its hidden vices. This is simply not the truth. This was a belief that used to make people doubtful of the deals that are offered by the lenders. But this is not the case now. Unsecured loans UK provide money for the people who do not want to risk their asset and this money is offered at competitive rates to them.
* Wedding expenditure
* Education expenses
* Debt consolidation
* Holiday expenses etc.
Through
Since unsecured loans UK do not demand any collateral, the risk factor for the loaned amount is high. So to make up for that, a higher rate of interest is charged. Although competitive rates can be found out, the rate depends upon the repayment ability that the borrower is able to furnish to the lender of unsecured loans UK.
People having a poor credit rating can also avail unsecured loans UK. The rates offered are higher than the usual rates being offered but still, competitive rates can be found by thorough research which can be done online. A proper comparison of the various quotes of lenders for unsecured loans UK should be done so that only the best offer is accepted.
Unsecured loans UK are borrowed for the purpose of meeting the financial needs without placing collateral. Proper research can help obtain competitive rates of interest from lenders of unsecured loans UK.
About the Author
Carmen Cortez is a specialist advisor of every type of business loan and currently working as financial consultant in Low Cost Unsecured Loans. For further details of unsecured loans UK, bad credit unsecured loans,unsecured loans,low cost unsecured loans,personal unsecured loans,unsecured tenant loans visit http://www.lowcostunsecuredloans.net/
Day Trading Tips ... How to pick hot stocks ... Stock Watch ... Learn to Trade.
Day Trading Tips ... How to pick hot stocks ... Stock Watch ... Learn to Trade.
The majority of traders agree that the greatest motivation in online day trading is the possibility of taking advantage of stocks that are breaking out and rising up to new highs. Why? because after all, the rally is where the big money is made. When a stock rallies all the way up, it becomes a traders paradise.CERTAIN stocks can achieve high percentage gains in a matter of minutes or double in price during the same week. Knowing how and when to pick these beautiful jewels can be worth a long lasting gold mine for any day trader.
Unfortunately to many day traders rarely take advantage of those incredibly profitable opportunities on a consistent basis, while others don't even know how to manage the trade, because they either sell to fast or get in to late.
Day trading is definitely not rocket science, but You do have to follow a step by step plan that is practical & simple to apply. The stock market is an incredible place to achieve tremendous wealth for those who are wise, realistic and well preparedRemember that people from many walks of life have made a fortune in the stock market. And it all started when they made the decision to learn how to DO IT. Don't let the lack of knowledge stop you from becoming a successful stock trader.
How to Make Money in the Stock Market
How to Make Money in the Stock Market
by MomentumStockPick.com
One of the most motivating aspects about online day trading is the possibility of taking advantage of stocks that are breaking out and rising fast to new highs.
CERTAIN stocks can achieve extraordinary gains in a matter of minutes or double in price during the same trading day. Knowing when to pick these beautiful jewels can be worth a long lasting gold mine for any day trader.
Unfortunately most beginner day traders rarely take advantage of those incredibly profitable opportunities on a consistent basis, while others don't even know how to manage the trade, because they either sell to fast or get in to late.
Day trading is definitely not rocket science, but You do need to follow a step by step plan that is practical & simple to apply.
Complicated technical systems and information overload can make you slow and confuse you right from the start, making you loose money instead of making your profits grow.
In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader.
Dont' let the lack of knowledge stop you from becoming a successful stock trader.
Remember that people from many walks of life have made a fortune in the stock market.It all started when they chose to learn how to DO IT.
For more information visit us today at Momentum Stock Pick http://www.MomentumStockPick.com
About the Author
Momentum Stock Pick helps stock traders & investors take advantage of hot stock trading opportunities in a practical way every day
Adverse Credit Debt Consolidation Loans: For A Better Tomorrow
Adverse Credit Debt Consolidation Loans: For A Better Tomorrow
by Rick Russel
County Court Judgments, defaults, arrears and late payments are some of the unwanted adverse credit which a person might face or come along while he is in debt. So, to tackle and dissolve all such unnecessary crucial credit phase, adverse credit debt consolidation loans plays vital role. Adverse credit debt consolidation loans aid bad creditors with funds necessary to fight the adverse credits. All the existing grave credits and debts can easily be consolidated in a single loan amount. By paying all the numerous debts in single amount, bad creditors can reduce their debt burden and can also stabilize their financial base.
To function better in every cases, adverse credit unsecured loans are categorized into secured and unsecured loans. Secured adverse debt consolidation loans require borrower to pledge collateral for the loans. Whereas, unsecured form is the alternate option to approve loans for people who do not have collateral to place.
Bad creditors by considering adverse credit debt consolidation loans can also reduce the load of interest rates. In this loan scheme, the rate of interest is offered at low prices than the rates which bad creditors might be paying to the creditors. Adjacently, take the advantage of the competitive market among lenders to obtain a marginal rate by collecting and comparing the proffered rates.
Adverse credit debt consolidation also offers its services through online. To avail the services within seconds online is the most preferred option because it is fast and consumes less time. Moreover, to save time and effort always use the online device. Adverse credit debt consolidation loans have unveiled the tactic to deal with every financial issue very deliberately.
About the Author
Rick Russel has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find Adverse credit debt consolidation loans, Debt consolidation loan UK, Poor credit history loans, Secured homeowner loans visit
Unsecured Tenant Loan: The Collateral Free Loan
Unsecured Tenant Loan: The Collateral Free Loan
by Andrew Baker
Borrowing money without pledging security is no longer considered doubtful. This is because lenders have developed a sympathetic approach towards people who do not own any assets. Non-homeowners and tenants also have a right to borrow money if need arise whether or not they own a property. They can avail unsecured tenant loan to fulfill their needs.
Tenants can borrow unsecured tenant loan to use it for any purpose like debt consolidation, wedding expense, college education, urgent travel expense, vacation etc. Unsecured Tenant Loans does not ask for any collateral to borrow the loan. Even then, they are not charged high rate of interest. An amount ranging from ₤5000-₤25000 can be borrowed. Due to the unsecured nature of the tenant loan, the term of repayment is shorter, of about 5-15 years.
Good credit people surely get low rates of interest but this doesn't mean that bad credit borrowers have to pay a higher rate of interest for unsecured tenant loan. Borrowers having a bad credit history can avail unsecured tenant loan by proving good repayment capacity and conducting a proper research for suitable quotes.
Unsecured Tenant Loans can be obtained by various lending organisations, banks, lenders etc. But along with that unsecured tenant loan is available online also. Time has proven the fact that applying for an unsecured tenant loan online saves money, time and effort of the lender.
The lender of unsecured tenant loan generally offers two type of interest rate in unsecured tenant loan, which are, fixed rate of interest and flexible rate of interest. In fixed rate of interest, the rate is not affected with the change in market forces and other factors. On the other hand, in flexible rate of interest, the rate changes with the fluctuation in the market forces.
Unsecured tenant loan may help tenants and non-homeowners carve a niche for themselves. Competitive rates can be attained by establishing good repayment capacity and thorough researching.
About the Author
Andrew Baker has done his masters in finance from CPIT. He works for the UK Finance World for any type of unsecured tenant loans, UK secured loans,secured loans,unsecured loans,secured debt consolidation loans,mortgage,council right to buy mortgage visit http://www.ukfinanceworld.co.uk
An Introduction to Mini Forex Trading
An Introduction to Mini Forex Trading
by Agnesuma
The Mini FX account could be useful in assisting traders for developing a disciplined, balanced forex trading strategy with no focusing extremely on profits and losses. Relatively forex traders with small balances tend to grip on their equity fluctuations and base trading decisions on moving reactions to these fluctuations sometimes particularly when trading 100,000 currency unit lots in a standard account.
Many forex traders refuse to agree to closing-out failed trades at a loss, as they expect that the foreign exchange market would go round in their favor. Many of them would also have a tendency to take profits directly when the forex market moves in the wanted direction, other than maximizing their gains by permitting profits to run. However with less capital at bet in a Mini FX account, you could simply grow a disciplined trading methodology along with the self-assurance wanted to be a winning currency trader without the anxiety and distractions, which come with large P&L swings.
Money Forex Mini account was planned for those who are fresh to the forex account. Mini Forex account trades in lesser deal sizes of ten thousand units that is 1/10th the size of the typical trading account. The smaller trade size gives forex traders the chance to trade live with less actual risk to the forex market. This Mini account assists traders to know well about the Money FX and to get familiar with them.
Mini accounts are peaceful for traders who are knowledgeable in trading with a demo account, and would like to earn more knowledge before opening a standard GFT trading account. Without taking the risk of capital in huge amounts, mini accounts allow traders can turn into more familiar and satisfied trading with award-winning software. Due to the smaller lot sizes, lesser minimum account deposit needs and the capability to use higher leverage, mini accounts permit beginner forex traders to develop trading strategies and build self-assurance in the FX market. With obtainable leverage of up to 400:1, you could trade more capably by getting one of the highest leverage ratios in the forex trading market through GFT.
About the Author
Uma is a Copywriter of online forex trading . She written many articles in various topics such as forex day trading,forex trading system.For more information : contact her at 1worldforex1@gmail.com
CHEAP PERSONAL LOANS UK: 'COZ CHEAPER SOLUTIONS IS WHAT THE WORLD WANTS
CHEAP PERSONAL LOANS UK: 'COZ CHEAPER SOLUTIONS IS WHAT THE WORLD WANTS
by Marsha Claire
We all have our wants and our unfilled dreams yet to be realised, but reality and today's pace of life holds us back from satisfying them. It all comes down to whether our financial state allows us to spend money on luxuries, holidays and dreams? Besides our dreams, all of us also have our basic responsibilities and many us, many a time find it difficult to cater to them in the first place. This is when we all seek refuge in loans. We in UK especially, take loans rather comfortably and repay it comfortably too. Looking for cheaper financial solutions is the call of the day and with this comes the need for Cheap Personal Loans UK.
Cheap Personal Loans UK are loans that are at our disposal at lower interest rates. This automatically means smaller monthly instalments making it easier for us to stick to our repayment schedule and also allowing us spare cash for small additional expenses. However, this lower interest rate is not a package deal, it's what we offer to get that better deal.
Getting a Cheap Personal Loan UK approved is not at all difficult. All you need to know is the amount you require and whether you can afford a cheap secured loan or an unsecured one. Once you know what you want, you search for the best possible deal you can get - either online, at banks, financial institutions or private lenders and when everything fits your pocket, you apply for it.
Putting the money to use is all up to you. You can use the money that Cheap Personal Loans UK make available to you for any purpose whatsoever - to fulfil a long pursued dream, for emergencies or even for regular household commitments.
If you're not sure of the difference between a secured and unsecured loan, here's what you've been looking for - A Cheap Personal Loan UK (secured) is when you have to offer high valued collateral to convert a regular personal loan to a Cheap Secured Loan UK. It's the value of the collateral that changes the entire scene. More the value of your collateral, lesser is the risk for your lender and therefore lower is the interest rate. So all you need for a Cheap Personal Loan UK is to pledge collateral of high value - something like your home. These loans usually offer amounts between £5000 and £75000 with loan terms of up to 30 years. In case a larger loan is needed, your collateral must have greater equity in it.
A Cheap Personal Loan UK (unsecured) does not need collateral or any such guarantee. However, to assure your lender that you can repay the amount, you need to provide proof of your having had a stable financial past without bankruptcies or C.C.J's. With it you will also need proof of income, employment and a current decent financial standing. However, the lack of any concrete assurance of your repaying the loan, limits the liberty that a lender can offer you. These loans offer limited loan amounts of up to £25000 and limited loan terms too - up to 10 years only.
Although there are fixed boundaries, your credit history, credibility and your camaraderie with the lender cam change things completely. It's ultimately up to you to make a sound choice and take your Cheap Personal Loan UK from the right lender. It's your research and groundwork that will determine this.
About the Author
Marsha Claire is offering loan advice for quite some time. To find Cheap Personal Loans UK, Bridging Loans, Payday Loans, Education Loans, Best Secured Loans, Unsecured Personal Loan visit http://www.chanceforloans.co.uk
Thursday, May 17, 2007
Buy A Car Even With Bad Credit: Take bad Credit Car Loans
Buy A Car Even With Bad Credit: Take bad Credit Car Loans
by Julia Russell
A bad credit history certainly comes in the way of most financial transactions that a borrower makes. It adds to the misery of the already tagged borrower. But this is not the case while buying a car. A bad credit borrower can buy a car easily with the help of bad credit car loans.
Having a bad credit history means either the borrower has a history of late repayments, has defaults, has faced county court judgements and has a bad credit score of less than 600 on the FICO scale. This bad credit history has developed over the past transactions of the borrower.
Bad credit car loans can be borrowed to buy any car that is liked by the borrower irrespective of the make of the car, its model or being new or old.
Having a bad credit history surely is not an impediment in borrowing a car loan, but yes it has its effects. While borrowing bad credit car loans, the rate that is offered to bad creditors is slightly higher than that offered to good creditors. The cost of the car is totally paid by the lender of the bad credit car loans.
Bad credit car loans need an asset to be placed as security. This asset can be a house or even the car that is being financed. But with the car being kept as the collateral, the bad credit car loans that are approved are short term loans that have to be repaid in 5 years as the market value of the car starts to decline.
Traditional lending agencies provide bad credit car loans. Along with this, bad credit car loans are also available online. This helps is getting free quotes from different lenders. The borrower can then compare these and then choose the most suitable deal in terms of the rate, the repayment ability and term and conditions.
Bad credit car loans are the best way to overcome the bad credit tag and buy the long-desired vehicle at good terms and conditions.
About the Author
Julia Russell works as an executive in financial department for Cheap Car Loans. She has a lot of experience in finance field. To gain more information about Bad credit car loans, Bad credit used car loans,Cheap car loans, Cheap car loans UK, Cheap classic car loans visit http://www.cheapcarloans.org.uk
Tax Return Online is an efficient and modern system to pay tax
Tax Return Online is an efficient and modern system to pay tax
by michellebarkley
Federal tax return is a procedure that every organization has to pay. This process has to be done after the end of every financial year. This is a rule and every firm has to follow no matters whether small or big or even it is a private firm to has to file tax return. Even a government organization has to do tax return as the rule is liable for everyone. Tax return online has made the procedure of tax return very simple and less hectic. You do not have to stand in long queue and waste much of your time for paying the tax to the government. Globalization has made everything possible and we are connected to each other without any problem. Advent of latest and high technology has made all this possible and that is the reason we are in contact with our friends and relatives no matters where they are staying.
We happen to know each other generally through world wide web.
Internet has become a requirement of our life and we feel something missing if we are not in touch with this. Paying tax to the government has become very easier with the use of internet. Now you can do tax return online without any worry and effort. It is a modern way to file the tax in a modern world. Everything is influence by technology and this is the reason we come across various new changes in our life. The traditional method of filling the tax is over where you used pencil and pen. This method is swapped by the new method of tax return online. You just have to sit before computer and fill the fax on the site. This all has been done for the convenience of many tax payers who are facing difficulty in filing the tax return. It is for the betterment of the general public who are regular tax payers.
Tax return online is the easiest and fastest method to prepare and file your tax return. It just takes few hours to file your tax and in the matter of hours you have filed your tax for the financial year. You do not have to depend on accounts professional who will fill the tax on your behalf. It is upto your way from where you want to file the tax. You can do it from the comfort of your home or from the office. You can tell your accounts persons to prepare the data that is required to file the tax. If the data is already prepared then you can easily file the tax. You can also choose for the trial version of income tax return as it will make you aware with all the facts that can help you to do a proper tax filing. Look into the tax filing website and you can get some information for your tax return online. You can take help from it and can refer into your tax calculation if needed.
Tax return online has saved much of our time and made our work more easier and flexible. This online procedure has really helped in shedding the tension and worry of many of tax payers and firms. Once you have completed filing the tax return online then all your information gets stored in the database of the government system. Then there is no need of human verification and every information is correctly handled by the computer system.
About the Author
Michelle Barkley is a CPA who advises people on tax preparation and tax calculation.She specializes in Bookkeeping outsourcing,Accounting outsourcing and Tax return online.To know more about Accounting outsourcing services and to use the services visit www.ifrworld.com
Loans For Bad Credit: Borrow Money, Improve your Credit Status
Loans For Bad Credit: Borrow Money, Improve your Credit Status
by Mary Jones
Bad credit is not an uncommon thing nowadays. Most borrowers have a credit history that has a bad credit score, arrears, defaults, County Court Judgements etc. These tags like earlier times do not lead to refusal of loans. So for bad credit people, special loans for bad credit have been designed to help them cope up with financial troubles.
Loans For Bad Credit are borrowed by people who have arrears, defaults or a bad credit score to their name. Loans for bad credit help these people in dealing with bad credit problems. Also, loans for bad credit help bad credit borrowers in improving their credit history by timely repayment of loans for bad credit.
Loans for bad credit are available in two traditional forms: secured and unsecured. Secured form of loans for bad credit, require some collateral as security. This security helps in getting a low APR for loans for bad credit. An amount of ₤5000- ₤75000 can be borrowed via this form.
However, through the unsecured form of loans for bad credit, no collateral is required to be pledged. Due to this, a smaller amount can be borrowed ranging from ₤5000- ₤25000 can be borrowed and has a smaller repayment term of 5-15 years.
The perfect way to search for loans for bad credit is the online method. Here a comparison between quotes from different lenders can be made and then the best deal can be chosen so that the borrower gets money according to his suitability.
Loans For Bad Credit help the bad credit people in acquiring money for their needs. Loans for bad credit not only help in fixing financial problems but also help in improving the credit history by timely repayment of loans for bad credit.
About the Author
Mary Jones is an expert financial advisor in Loans For Everyone.She has done Masters in Finance from London Business School. To find loans for bad credit, loans for everyone, personal loans for everyone, car loans, unsecured loans for everyone, secured loans for everyone visit http://www.loansforeveryone.org/
How to Make Money with a Mobile Home Park
How to Make Money with a Mobile Home Park
by Scott Krager
Here is the scenario: You have extra cash you have saved up over the years and you do not know what to do with it. You can invest in stocks and bonds but you know that this is pretty risky and you will not see your money for a very long time. What should you invest in? The answer is pretty simple. A mobile home park. Here are some of the reasons why a mobile home park could be your ticket to the good life.
Why A Mobile Home Park?
You might wonder why investing in a mobile home park should be your choice. The question is, why not? A mobile home park is a pretty sound investment due to the number of factors that make it an attractive money making venture. Mobile homes are becoming more and more attractive and luxurious these days yet they are still relatively cheaper as compared to their other housing counterparts. Putting up your own mobile home park gives you the chance to own property that makes money every month and yet still have control over it.
Owning your own lot and your own mobile homes in a rental mobile home park is a good idea if you are looking to earn money without too much spending. Since these manufactured houses are cheaper in comparison to other housing choices, you can give your prospective tenants lower rental fees, making your housing option cheaper than other housing options available to these people. You can always expect a huge number of people who will want to choose your mobile homes on your mobile park as their housing choice since the smaller sizes of these manufactured homes make them easier to maintain.
Why Build Your Own Mobile Park?
Why indeed. The question does raise a few issues since buying your own land to place your rental mobile homes on may cost you more than what you expected. You can actually opt to put your mobile homes for rent on an existing mobile park and pay rent for the land usage. This, however, has quite a number of drawbacks.
Aside from the monthly income that is deducted from renting the areas for your mobile homes, you do not have total autonomy on your property. Since you do not own the land, you will have to constantly ask the land owner for permission for certain things that concern your homes. You may also have to adhere to the park manager's and park owners rules even if they go against what you believe would be best for your investment.
When time comes for you to evict someone who may be causing trouble in your rental home, you may not have much say in the issue if the land owner or the park manager does not back you up. Having your own Mobile Home Park to place your mobile homes in will give you the peace of mind to do what you need to do when something needs to be done and to earn the money from your investment without having to worry about other people getting in your way.
About the Author
Scott is an expert on
Understanding Pips : Forex Trading Basics Part-4
Understanding Pips : Forex Trading Basics Part-4
by Srikanth
Understanding Pips in Forex
To forex traders, everything revolves around pips.
"I'm up 35 pips for the day."
"I made a 127 pip profit on my last trade."
That's great, but what's a pip?
Pip is short for "percentage in point" and you may sometimes hear people refer to pips as points.
Put simply, a pip is the smallest unit of price for a currency. It's the last decimal point in every exchange rate or currency pair.
For most currencies its 0.0001. So if you bought USD/CHF 1.2475 and sold at 1.2489 you made 14 pips.
One common exception is USD/JPY. In this currency pair there are only two decimal places so a pip is equal to 0.01.
The reason pips are so important is because they are the basis for calculating profit or loss.
Pip Value. With all these different currency pairs to deal with and with prices fluctuating all the time, how do you know the value of a pip?
It's a simple calculation. For currency pairs in which USD is the base currency, just divide a pip (usually 0.0001) by the exchange rate.
For currency pairs in which USD is the quote currency, its even simpler. The pip value is always one pip (for example, 0.0001).
So in our example above, when the exchange rate for USD.CHF is 1.2489:
0.0001 / 1.2489 = 0.0000800704
That's a pretty tiny number. But remember that in forex trading you are able to leverage small sums of money to move large quantities of currency.
In other words, you can use leverage to make big profits off of that tiny number.
Let's say your broker allows you to trade with leverage of 100:1. This means that in order to buy a standard lot of $100,000, you only need to put up $1,000.
You can see how trading in larger lots affects the pip value, and therefore your profit or loss:
If you are only trading $1,000 in currency, the pip value is calculated as follows:
0.0000800704 X 1000 = $0.08 per pip.
The price would have to go up by a whole lot of pips in order to make a significant profit at that rate. That 14 pip profit only made you $1.12.
But by using leverage to buy a lot size of $100,000 your profit increases.
0.0000800704 X 100,000 = $8.01 per pip.
That's a profit of $112.14. Now you're talking.Learn This Easy To Follow Trading System That Will Earn You At Least 10 Pips A Day.Forex Trading Machine
About the Author
Learn This Easy To Follow Trading System That Will Earn You At Least 10 Pips A Day. Auther is an Online MarketerVisit: http://www.Cbaffiliates.net/ForexTrading.html Use This article Without any Changes in Any Way
FOREX Trading Success - Getting the Right Mindset for Big Profits
FOREX Trading Success - Getting the Right Mindset for Big Profits
by Sacha Tarkovsky
90% or more FOREX traders lose and only 10% or less achieve FOREX trading success.
Everything about trading however can be specifically learned.
The reason so many traders fail, is not they can't be successful (anyone can), they simply cannot adopt the right mindset needed for trading.
If you can adopt the right mindset and have desire to learn, you can enter the minority of traders who achieve FOREX trading success - Let's look at this in more detail.
1. Your On Your Own
If you want to make it in FOREX Trading you are responsible for your success.
Today, more than ever before people don't like taking responsibility for their actions - they want to consult an "expert".
Many people think that they can buy success in FX trading, but you can't.
If you think buying an e-book for $100.00 or so will make you rich think again.
The only way you will be successful is to do it on your own. With this attitude you will now be able to learn the right knowledge for FOREX trading success.
2. Learning the RIGHT knowledge
This means leaving your ego behind and being humble. This may seem a strange trait for trading success, but it's true. Many traders think that learning lots of knowledge, developing complicated trading systems and being clever means success.
They think the fact they are smart, means they have "a right" to be successful.
This is of course is not true you make money not for being clever or working hard, but for getting market direction right.
The really successful traders know this, they learn what they need to know, have essentially simple FOREX trading systems and are humble, in terms of their attitude to the market.
Many traders who make millions have no formal qualifications, yet they make money, that's because they learn the RIGHT knowledge and work smart rather than hard.
3. Confidence and discipline
If you develop your own trading methodology, you will know how and why it works - this means you will be confident in it and apply it with discipline in the market.
Discipline is a hard trait to acquire and it's hard to put into words actually how hard it is.
Staying for example with a trading system through a string of losses can be frustrating and this is where you need mental discipline to stick with your system.
More traders fail due to lack of discipline than any other character trait, but it's essential for FOREX Trading success. It comes from learning your own trading methodology and having confidence in it.
4. Trade In Isolation
If you want to be successful in currency trading, then you need to trade in isolation.
The real pro traders understand this.
They don't discuss their trades with others, give or seek opinions, they focus on what their doing in the currency markets and ignore everyone else.
If you don't trade in isolation, you will find that your emotions get involved and discipline suffers.
5. Patience.
You can't hurry the currency markets, or profits so don't try. Trading requires immense patience to ride out losing periods and wait for good risk to reward opportunities to present themselves.
5. Love what your doing
Trading should be fun and you should love what you do. If you constantly are feeling nervous, don't like risk, constantly checking quotes and willing the market to go your way, then trading is not for you.
If you can approach online FOREX trading with the character traits above, you have the opportunity to achieve FOREX Trading success and make some great long term capital gains.
Good luck!
About the Author
GRAB 3 X FREE TRADER PDF'S AND MUCH MORE!
On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE
Wednesday, May 16, 2007
FOREX Trading Systems - Know What Curve Fitting Is or Lose
FOREX Trading Systems - Know What Curve Fitting Is or Lose
by Sacha Tarkovsky
When choosing a FOREX trading system or back testing your own, you need to be aware of the dangers of curve fitting. While curve fitted FOREX trading systems can look good in theory, in practice they rarely work, lets look at why. Trading In The Past For Profit
When you see most FOREX trading systems you will see a hypothetical track record. A hypothetical track record is exactly as it sounds - one that has been constructed in hindsight, knowing the closing prices.
You never see a hypothetical track record that makes losses!
However, when you try and trade the system for real you do and this is generally because the track record has been subject to curve fitting.
Curve Fitting
Curve fitting, simply involves tweaking the parameters or rules of the FOREX Trading system to make it profitable.
One trader I know once likened this to shooting at a barn door and then drawing bull's eyes around everyone afterwards!
Curve fitted systems normally collapse in the brutal world of trading.
There generally easy to spot:
Look for lots pf parameters or rules and different rules, for trading different currencies.
Generally, a technical system that is successful will have the same rules and parameters for ALL currencies traded and there will only be a FEW indicators used.
I once knew a trader who made a million dollars using just one rule and trading around 50 commodities and currencies.
By tweaking the parameter for each contract traded, he could have made it make more money in theory, but that of course means the system would be less robust in real trading, so he stuck with the best parameter that gave the greatest performance over all the contracts traded.
His real track record closely matched his back testing and that's what you need when you have no real trading to look at.
The Dangers Of Trusting a Hypothetical Track Record
There are many dangers of using hypothetical track records of which curve fitting is just one.
The Impact Of Slippage and Commission
In most instances not shown correctly and hypothetical track records tend to underestimate their impact dramatically.
Most vendors rely on hypothetical track records and you can find some good systems, but you're always best off to go with a FOREX trading system the vendor has traded himself and made money with.
While it doesn't guarantee that you will make money from the system, at least the vendor has confidence in it and traded it.
Ask Yourself This Question
Why would you buy a system from someone who says it's a fantastic way to make money and then hasn't got the confidence to trade it themselves?
In my time trading (and that's 22 years) about 90% of the systems I have seen with hypothetical track records, could not stand up to the brutal real world of trading in real time and in the case of day trading systems, its 100%
Independent Verification
You can find some hypothetical track records that are tracked in real time by independent ratings agencies.
If you have one of these, then at least you know that it's being independently monitored in real time, even though no money is traded.
In conclusion
It's easy to bend a system to fit the data looking backwards, but making it work going forwards without being able to bend the data is quite another matter.
If you do buy a FOREX trading system with a hypothetical track record, make sure its tracked in real time, look at the logic of the system and look for curve fitting.
If you can though the best way to get the odds on your side with a trading system is to find a vendor who has a real track record and had the confidence to trade their system.
About the Author
When choosing a FOREX trading system or back testing your own, you need to be aware of the dangers of curve fitting.
While curve fitted FOREX trading systems can look good in theory, in practice they rarely work, lets look at why.
Types of Orders : Forex Trading Basics Part-3
Types of Orders : Forex Trading Basics Part-3
by Srikanth
Types of Orders
When your broker buys or sells a currency for you, it is called 'executing an order'.
Depending on your trading system, your objectives, and your analysis of where you think prices are going to go there are different types of orders that you can place with a broker.
Here are the most common types of orders that any broker should be able to make for you:
Market Orders. A market order is the simplest type of order, and the most common order used in day trading. It is simply an order to buy or sell a currency at the current market price. A trader places a market order by specifying the currency pair he wishes to trade, as well as the number of lots to trade.
With most online brokers this can easily be done in seconds with just a click of the mouse. The order is executed almost immediately at the price shown.
Limit Orders. A limit order is an order places to buy or sell a currency when it reaches a certain price. For example, say USD/JPY is currently trading at 117.50. The price has been in a downtrend, and your analysis shows that it will drop to about 117.25 and then bounce back up.
You could sit at your computer waiting for it to drop to 117.25 and then place a market order to buy. Or you can place a limit order at 117.25 and when the price hits that point the order will automatically be executed.
If your analysis is wrong and the price only drops to 117.30 before bouncing back up, the trade will never be executed and it will usually be canceled at the end of the day.
Stop-Loss Orders. Savvy traders use stop-loss orders to minimize their losses. Say you expect the price of GBP/USD to go up and you place a buy order at 1.8255 with a stop-loss order at 1.8235. Your analysis was way off and the price drops all the way to 1.8185.
The stop-loss order protects you by automatically selling at 1.8235. Instead of losing 70 pips, you only lost 30.
OCO This stands for "one order cancels the other order." Two orders are placed with at prices above and below the current price. When one trade is triggered, the other trade is canceled.
For example, say the price of USD/CHF has been hovering around 1.2435 for some time. You know its going to break out soon but you're not sure which way. You place an OCO order to buy at 1.2445 or sell at 1.2455. This way as soon as the breakout starts you can jump on board. The second trade is canceled as soon as the first is executed.
About the Author
Start Forex Trading with $100 OnlyFor Complete Forex Info Visit: http://www.Cbaffiliates.Net/ForexTrading.html
Note:You can Use this Article without Changing in any Way.
How To Read Forex Quotes: Forex Trading Basics Part-2
How To Read Forex Quotes: Forex Trading Basics Part-2
by Srikanth
Reading Forex Quotes
To a newcomer in the world of trading, forex quotes can be confusing. But they are actually quite simple to read.
Let's look at an example of what a foreign exchange rate quote looks like:
EUR/USD = 1.2526
Seems simple enough, right? This example shows the foreign exchange rate between the Euro and the US Dollar.
It helps to remember that in any forex quote, there will always be two currencies quoted. This is because when you make a trade on the foreign exchange you are in effect buying one currency and selling a second currency at the same time.
When reading forex quotes, the first currency listed is called the base currency. The second currency listed is called the quote currency. Forex quotes show us the price relationship between two currencies.
The exchange rate tells you how many units of the quote currency you have to pay in order to get one unit of the base currency.
In the example above, the base currency is the Euro and the quote currency is the US dollar. The price quote tells us how each currency is trading relative to the other. In order to buy one unit of Euros you will have to sell 1.2526 units of US Dollars.
Still with me? Ok, just one more thing to add to our example: the Bid/Ask spread.
There are no commissions charged on any trades placed in the forex market. But brokers do get paid for their work through the bid/ask spread.
Let's add the spread to our example and I'll explain:
EUR/USD = 1.2526/1.2528
Or, this can be simplified to:
EUR/USD = 1.2526/8
Brokers make their money by selling currencies at a slightly higher rate than they buy them. This is perfectly legal and all brokers do it, though the amount of the spread can vary.
As a trader, you will buy the at bid price, which is the first price quoted. You will sell at the ask price, which is the second price. The difference between the prices is called the spread, which is retained by the broker as their profit on the trade.
In our example, you would buy at 1.2526 and sell at 1.2528. The 0.0002 (2 pips) would go to the broker as payment for executing the trade.
The bid/ask spread is a simple and straightforward way to calculate trading fees and expenses.
Beginners Opportunity to Begin ForexTrading
About the Author
An Excellent Way to Begin Online Forex TradingTo Read Complete Forex Concepts Visit: http://www.CBaffiliates.net/ForexTrading.html
Forex Trading Basics Part-1
Forex Trading Basics Part-1
by Srikanth
Most people of Online Business,hear About Forex Trading(Also Known as Currency Trading).In Forex Trading there is no Need to Exchange Goods or Stock.This is a Highly Lquidated Business.Generally buying and Selling Currency (any cureency)is reffered as Forex Trading.But it not easy as Say Above Definition.When You Buying or Selling Currency you Have to Forecast the overall Ecomomic Speculation World Wide CurreniesAs a Starter You Have to Know Basic Concepts Of Forex Trading.
1.Understanding Forex Trading
2.Forex Pips
3.Calculating profit and Loss In Forex
4.How to Avoid Failure In Forex
5.How to Choose Forex Broker
6.Forex Vs Stock TradingThere are several Concepts to Know
About the Author
Author is an Online Marketer Forex Tading Made Easy Visit: http://www.Cbaffiliate.Net/ForexTrading.html
Investing in Property
Investing in Property
by Feldman Jones
Investing in property can be an insurance to see you through your retirement years, or a way to increase your cash availability. It is known that you cannot often go wrong with property as an investment. Using a good investment property agent and getting expert advice is imperative to the success of your investment. Before you rush out and buy any property, there is a certain amount of investigating which needs to be done regarding that land/building; buying investment property can be risky, it is important to get professional investment property agents to assist you in the purchase of your investment property.
If you have reached a point in your life where investment property is attainable, getting a professional agent to aid in the purchase of a profitable property is important. Any professional agent is aware that the client needs to make a profit when they purchase the property, not when they sell the property. Looking out for the client's best interests is a main priority for any professional property investment expert. Most property investors have an idea of their personal property investment objectives, now investors can use property investment agents to find properties where client's objectives can be met.
One benefit of dealing through an investment property agent is that your chosen agent will generally find motivated sellers. This can be a great benefit in that un-motivated sellers can waste time, even money for any buyer. Expert property investment agents can be invaluable in helping their clients achieve their objectives, offering clients the opportunity to negotiate for undervalued investment properties. Save time by using an investment property agent, which can supply you with a list of all the investment properties that meet your requirements.
Another benefit of using an investment property professional is that these people are qualified, usually have extensive experience and often have industry knowledge which could help you get a profitable investment property. Many expert agents have an "ear-to-the-ground", where their clients can benefit from industry knowledge such as foreclosures. Many properties can come up for sale at a very reasonable rate for any number of reasons such as missed payments, job interests, divorce and health problems. Get in-depth industry knowledge and experience from top property investment agents and let them do all the hard work for you. Let property be your tool for making money.
About the Author
Feldman Jones is the online reviewer for Cape Town Investment Properties - www.ctip.co.za
Understanding Yourself when trading Forex
Understanding Yourself when trading Forex
by Sarel JP Slabbert
Each person has certain personality traits that make us unique. These traits help, or limit, our progress in life, and especially when aiming for Successful Forex Trading. To live a happy and fulfilled life is easier when you know your own personality traits. Trying to understand what makes you tick can be of great help when you know how you will probably react in certain situations and why. Successful Forex Trading is one area where knowledge of your different traits can be advantageous. Money makes most people emotional at some stages and knowing beforehand how you probably would react to suddenly losing, or making, a lot of money would help you stay afloat. Money has tremendous influence in the lives of people and the lack of money, or the possibility of increasing your money pushes the buttons of your emotions.
That is why being too emotionally involved is so dangerous when investing. Emotions are what make us human. Emotions help, or limit, our progress through life, but it can be detrimental to your investing success. There are probably many emotions an investor can experience, but the two most common are fear and greed. Fear can make you so cautious that you miss a lot of good investment opportunities, or let you get out of a trade too soon, missing the bigger and more profitable move. Being unsure whether the market will react in the way you hope after interpreting the charts can also make you afraid, because what if the market moves the other way? The flip side of fear is greed. And in my mind it is more dangerous than fear. Fear sometimes keeps you out of the market, but greed pushes you into the market as much as possible. Greed affects most people and lets you ignore the warnings. Greed can make you over-optimistic. Believing that the next move will make you rich, increasing the amount of money invested. Greed let you live in a dream world that could make you impatient when profits do not come quickly enough, and this could quickly turn into a nightmare.
Personality traits differ from person to person and for this reason each investor must learn to understand him self or her self. Some people struggling more with making final decisions than others. Struggling with making a decision can cause you to lose a lot of money. The market is always dynamic, always moving, so while the investor is struggling with making decisions the market situation could have changed. The danger of this trait is that this is a way of life for people struggling with it. Struggling to make fast decision affects the whole life of this person. This makes it more difficult when investing since emotions and money are included in the equation. Wondering when to enter or exit the forex market can cause missing opportunities and these mistakes can intensify other emotions like fear or regret.
Some people or very conscientious are being defined as a person who is very meticulous and painstakingly accurate. These persons could be the opposite of the above. Being very sure of there decision since they research it so thoroughly. They would give extraordinary attention to certain details and sometimes checking and rechecking their findings just to make sure. In some areas of life this trait could be beneficial, but when investing it could hamper your success. By the time the investor has checked all his findings the forex market could have moved on, leaving him without the opportunity to enter, or exit the trade at a decent level. The forex market cannot be predicted. Technical and fundamental analysis could only give an indication of the possible direction the market could take in the near future, but there is no guarantee. Spending too much time on research trying to be "absolutely correct" could cause you to react far to late.
Some people are more Open than others. I like to define openness as being able to absorbed changing situations and make corrections in your reactions based on the new information. This could be one of the more positive traits for an investor to acquire. History does repeat itself, but not always in the same manner or under the same situations. Being able to change your outlook when situations change drastically could be advantageous to investing. This does not mean that you alter your investment strategy completely every few months. It rather means that you always make small adjustments when it becomes apparent that there could be some flaws in you investment strategy in regard to the current market situations. Some strategies work better in certain market situations than others. Being open could help you to notice this and make adjustments in time. Openness can also help you to absorb all the viewpoints regarding a share or its possible future and selecting the facts from the fiction, sometimes causing you to avoid a possible investment that appeared good after some warning regarding the company.
Self-discipline is also a trait that could be positive when investing on the market. Investing is something that could be learned, but like all learned behavior it takes time and practice to reach a level of success. Learning something new means getting to grips with failing. Most people do not have a natural tendency to mastering a new concept, like learning to invest on the stock market. It takes time and it means making mistakes. Self-discipline can help you to stick to learning when it appears as if it is not working. Also, discipline is extremely good at helping to curb the effect of emotions. Being disciplined helps you to avoid making irrational decision based on your current emotional state. Self-discipline also helps you to stay patient. I read somewhere that patient money makes money.
So, understanding yourself; knowing your strengths and weaknesses can help you when investing, but what can you do to limit the negatives of your weakness and enhancing the strengths? I believe by designing a good and robust system. If you are someone who is open and willing to integrate new ideas, then designing a robust system could be easier that someone being very set in his ways. A robust system is one that helps you to identify good entry and exit points, which is determined by a balanced blend of technical and fundamental analysis and combined with effective money management techniques.
Finding a good system that complements your personality and sticking to it can advance your success on the market. A good system you trust helps curb the effects of emotions and indecision. Following the system removes some uncertainty. Knowing that most systems are incorrect about 40%-60% of the time helps you to understand that losses are part of the game. Having self-discipline will help in following your system through these inevitable losses. Having good money management, reducing the amount of money to risk and using a good stop-loss system, could help you weather these losses while waiting for the bigger profits. Being disciplined helps to reduce the possibility of greed or fear causing you to be irrational. Knowing yourself, knowing your system and trusting in the positives of both could help you reaching your goal, and that surely is investing successfully in the forex market
About the Author
I have been trading for just over 3 years. Visit my blog at: http://successfull-forex-investing.blogspot.com/
