Thursday, August 30, 2007

A Review Of Some Great Forex Blogs

There are some forex blogs out there that you can learn a lot from. One of them is Baby Pips. This is a very active blog with postings by several experienced, successful forex traders every day or two. This blog gives the actual trades they are making at the time, and explains the reasoning behind them. There's also a lot of learning tutorials that you can read here. It's also funny and easy to understand.

Another good forex blog is Adam Kritzer's Forex Blog. He is considered a guru of forex investing. His website is updated regularly, with a lot of good investing ideas, currency trading news and analysis. His blog started in 2004, so you know he has been actively trading, probably successfully, during all that time.

A third very good and interesting trading blog is Grace Cheng's Blog. Grace has been trading professionally now for several years, and she paper traded for a long time before that. Her site also has a lot of interesting articles that you can read that were written by her, and in her blog she often tells what she is doing at the time. If you're a forex trader or planning to become one I would keep up on these three blogs, because they're updated regularly, have a lot of good information and articles, and are published by active, experienced, and successful traders. Here are the links to these three great forex trading blogs:

Roger Bovee is the editor and publisher of Forex Trading Machine Blog. Go there to read the GBP/USD mechanical trading system that can make an average 70 pips profit a trade, a $39 value, by 11 year forex trading professional Avi Frister!

Online Trading : Three Ways To Make More Money Online

Many people today are rushing to get started in the investment game by opening online trading accounts with the largest brokers in the USA today. However, many people are also losing money each day due to either a lack of trading knowledge or merely having the gambling mindset when doing online trading.

This article highlights there essential strategies that you need to know in order to make more money from online trading.

1.Understand market trends Regardless of whether you are trading commodities, forex or stocks online, you need to have a basic understanding of market trends. Financial analysts generally categorize this knowledge as fundamental analysis which deals with general factors and trends concerning the instrument and technical analysis which is an indicator of market psychology. Regardless of whatever your inclinations are, spending some time reading about these two contrasting theories will help you understand what direction the market is moving and to make money from online trading.

2.Set stop losses One advantage of most internet trading platforms is that you can set stop losses on any trade that you do so once the share price drops below a certain level, the trading system will sell your stock for you. There are two kinds of stop losses normally and they are the trailing stop loss and the fixed stop loss. The trailing stop loss is the one that you should pay special attention to. Always focus on protecting your downside and your upside profits will be protected. Stop losses are therefore essential if you want to ensure that your profits are locked in. Remember that for stop losses to work real well, you need liquidity in that instrument as even if you have a stop loss and the market is not liquid, you would not be able to exit fast enough to avoid a loss. Making money with Online trading in this respect is the ability to cover your downside potential so as to retain your earnings.

3.Devise fast and effective online trading strategies Most people today doing online trading are not day traders with huge amounts of time daily, nor people with huge amounts of money so they are hard pressed for time and yes they have to work unlike some people. Therefore the key to success in online trading is to either devise fast and successful trading strategies or spend time reading or attending a course. You want a trading strategy that works time and time again and that takes little time to evaluate and execute. Imagine the irony today, people are paralysed with information overload and remain unable to trade quickly and efficiently daily without spending either lots of time or losing lots of money.

Spend some time today working on learning all you can to succeed with online trading and you will start making money online with your trading platform.

Copyright 2006 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)

Joel Teo writes on various financial topics relating to Ahwatukee Real Estate Investment. Signup for his free online Real Estate Investing newsletter today and gain access to the Six Day Real Estate Investment Profits Course now at

Online Forex Trading - Why Most Traders Cannot Adopt a Mindset To Win

FOREX trading looks easy yet few succeed.

If you are thinking of trading FOREX then you need to consider the fact 95% of traders lose their equity quickly.

FOREX trading is difficult as it means you have think and act in a totally different way and adopt a different mindset to win.

Here we will outline some of the mistakes novice traders make in adopting the right mindset.

1. Hard work does not guarantee success

In most professions the more you put in the more you get out.

In FOREX trading however this is simply not true, you dont go paid for effort, you get your reward for making winning trades.

Many people say knowledge is power

In FOREX trading the right knowledge is power and this does not mean working hard.

2. Systems have to be complicated

Nothing could be further from the truth.

In todays world of technological advances that astound us each day, it is tempting to think that we can conquer the markets with science, but trading remains simple.

Simple systems can and do work best, as they are more robust in the face of ever changing brutal market conditions.

Dont make the mistake of complicating your system.

3. Leave your ego behind

Most people have an ego and none of us want to look stupid, but if you trade you need to accept the market will make you look stupid on numerous occasions.

Be prepared to look and feel stupid, as the market does this to everyone.

4. Taking loses

Related to the above, people hate taking a small loss, after all if they leave it will turn around and they don't want to look stupid.

In a leveraged market this ends in disaster.

A small lose becomes a big loss, then reaches a stage where a trader faces wipe out and has to take it.

5. You need to have the courage to make big profits.

Surely we all want big gains?

We all do, but:

Most novice traders lack the courage to make big profits..

As soon as they get a profit they get excited and want to take it before it gets away, the bigger it gets the more tempted they get to bank their profit.

Add in the fact, that there are retracements into open equity that play havoc with emtotions when open equity is eaten into and the result is a trader will bank a profit of a couple of thousand and be happy.

If they had the courage of their conviction, in many instances they could make 10, 20,000 or more, by staying with the trade.

Currencies trend for months or years and if you have the courage to trade the major trends you can make huge profits, but you need to follow them.

6. Someone else can give me success

This is the biggest mistake in FOREX Trading and is rooted firmly in human nature.

We feel safe in groups and we are used to consulting an expert on a whole manner of things in life.

In FOREX Trading this is a bad move.

You need to know what you are doing and have total confidence in your own ability, without outside inputs.

Buying an e-book for $100 or so, is not going to make you a winner, neither is agreeing with the majority of so called experts in the media.

Firstly, no one can give you success it has to come from within and you will only be successful if you are confident in something you know will work for you.

Furthermore, the majority are wrong, so why follow them?

Trade in isolation, its not a normal human trait but one that is critical for success in online FOREX trading.

Trading can be lonely, make you look stupid and play havoc with your emotions, but if you can adopt the right mindset, you can and will succeed and the best part is:

If you do the above the rewards are huge.


On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at

Forex Charting Software

Forex charting software can show you just how you are spending your time and money. You do not want to be wasting either. If you are going to become a forex trader, you need the tools the pros use. The charts that the software will provide will give you wonderful insight into the different aspects of the forex market. You will be able to study the behaviors of the market over longer periods and thus, be able to analyze how these behaviors affect forex trading.

Forex charts will allow you to be more informed in regards to various patterns and trends. Thus, allowing the investor to make careful, informed and weighted decisions based on the analysis provided by the forex trading software. As an investor, you want to make a decision that is not rushed.

Forex charting software goes through historical and current information to help predict future trends in forex trading. This gives the trader that uses charting software an edge in trading.

Forex charting software has the ability to analyze prices based on the combinations of open, low, high or close points that are taken and placed on the chart over a particular period of time.

You must make sure your charts are up to date and accurate. They must be meaningful and provide significant information and must integrate with the trading platform the forex trader uses.

Using forex charting software can be an invaluable tool when trading on the forex market. When the investor is properly prepared and they have done diligent research, you can find the right options in charting to suit your investing needs. This than can make forex charting software the answer to many problems you may experience in trading, and instead make your profits increase dramatically. Here are some factors to keep in mind when looking for forex charting software:

is the software user friendly
are the charts easy to follow
will you be able to customize charts to fit your needs
will you be able to save your customized charts
can the software be easily programmed

Make sure that the forex charting software can do everything that you need to do to trade in the forex market.

Thomas D. Houser

Foreign Exchange Rate - Foreign Currency Exchange - Foreign Exchange Student

Several scenarios make a great decline of currency value like political uncertainties, unemployment that leads to higher inflation, other relevant issues that can hamper commerce and business from functioning well, and other macro-economic situations. This simply means you make decisions to buy or sell but dont put any real money down. The official currency of the European Union (EU), the Euro, was launched in 1999 with coins and banknotes issued in 2002.

This World recession effectively killed any growth in FX speculation as disposable income was at a premium. When people or companies hold foreign assets, there is an extra source of possible gain or loss, over and above the rate of interest or rate of profit earned by the asset itself.

If Denars are rare - their price will remain high in DM terms, i.e. But a strong currency (the Denar, in this case) is not always a positive thing. This World recession effectively killed any growth in FX speculation as disposable income was at a premium. Euro is a floating exchange rate, therefore market demand and supply controls the value of the currency.

Placing a foreign exchange hedge can help to manage this foreign exchange rate risk. At the end of WWI there was a brief period of massive currency speculation.

Stock trading is similar to owning part of a company or organization. It is often wise for the beginner to dabble in stocks trading before looking at Forex trading. If its people have the most employment, there are more needs for commodities and supplies that businesses are revolving as well as it use of money. All other currencies were pegged to the dollar at a certain rate.

Investors used to invest domestically mainly, but with the Euro introduction more investors are now attracted to euro areas. The exchange rate refers to the value of the US dollar against the values of currencies of other countries. It is an excellent way to get your feet wet without a whole lot of risk. If the US INFLATION rate is HIGHER, investors are LESS likely to prefer the US -even with higher interest rates- because of the expectation that the value of the dollar will be ERODED by inflation.

This has benefited the poorer member states which had weaker currencies previously for example Portugal, before the euro the Portuguese escudo was not that popular outside its own country or a particularly strong currency but now since Portugal is part of the EU its markets are much more attractive to other EU and non EU countries. Their lenders will also be afraid to lend them money, because these lenders cannot be sure that the borrowers will have the necessary additional Denars to pay back the credits in case of such a devaluation. If Forex exchange rate in our terms is equal to 100 yen to the dollar, the inverse would be $0,01 (one cent) per yen. One important way of encouraging people (and firms are made of people) to do things - is to allay their fears.

Learn more about Foreign Exchange Rate Foreign Currency Exchange Foreign Exchange Student

Build Your Own Profitable FOREX Trading System in Five Simple Steps

If you want to make big profits, then you should know that the best way is do it for yourself - and not rely on others.

Any trader (even a novice) can build a successful FOREX trading system - and this article shows you how to build a profitable system in five simple steps.

What Makes a Successful FOREX Trading System?

Successful trading systems have three main characteristics:

1. They are Simple

Forget complicated systems with lots of rules - its a proven fact that simple systems work better - and are less likely to fail, in the brutal world of trading.

2. They Run Profits and Cut Losses

You need to have a longer term FOREX trading system that milks the big trends for profit, and cuts losses quickly.

3. They Follow Long Term Trends

There is no point in trading for small profits - i.e. day trading, as you will never cover your inevitable loses with small profits.

Focus on long-term trends - its these that yield the big profits, as they can last for years.

Now lets get down to the five steps of building a FOREX Trading System:

1. Your Method

We have said to keep it simple, and this is exactly what you should do - just a few rules, and a robust money management system.

2. Spotting Opportunities

Look for the long-term weekly trends, and then move to daily charts to time entry. When we say long-term trends, we mean months, or years - NOT just a week or two.

3. The Best Way to Trade Currencies is via a Breakout Method.

Breakouts occur in all currency markets all the time - so base your system on a trend following breakout system.

There isnt space here to describe exactly what a breakout system is, but we have articles on breakouts posted on our web site.

Its a fact that most of the worlds billionaire traders use breakout systems in their trading - and you should use a breakout system as well.

4. Timing Entry

The best way to time an entry is to watch for a break on the chart, confirmed by stochastics crossing with bullish or bearish divergence this is a great timing tool.

When you are in strongly trending markets, you can also use Bollinger bands, to time your entries - and take profits.

The Bollinger band is a great filter indicator, and all traders should consider it.

5. Money Management

If you are following a breakout method, either the trade runs quickly in your favor - or the break is false and quickly reverses.

Dont put your stop just below the breakout point! - If the trade does not follow through within the day, exit the market, and use a monetary stop in the day session.

A Simple F0REX Trading System for Profit

With the above system, you will focus on the longer-term trends - and milk them for maximum profit.

You will also not trade frequently, and you will liquidate losers quickly.

We dont have space here to go through how to use the indicators, but with a bit of research and testing you will see why a FOREX trading system built on the above principles, will work, and will continue to work.

The system will give you a lot more profit than the so called predictive, over hyped complicated systems, sold by vendors and gurus these systems only work in back testing.

Build yourself a FOREX trading system - and see for yourself, just how profitable they can be!

New! A valuable FREE Currency Trader CD containing 9 critical trading reports, tips, strategies and currency trading info. Visit our web site now and grab your CD