Archive for June, 2009

Pattern Recognition And Why You Need To Learn It To Be Successful In Forex Trading

Jun 15

Posted by Day Trading editor in learn day trading | No Comments

Unlike the NYSE and other exchanges, the Forex market isn’t localized in one place. Foreign currency trading is done via telecommunications all over the world and the market is open 24 hours a day Sunday though Friday. The market opens Sunday afternoon and runs through Friday afternoon nonstop. No matter where in the world you are you can find a dealer to quote currency exchange rates in just about any time zone.

After choosing what currency an investor wishes to buy, it is handled through one of these dealers and you can even do this online. Just like in the regular markets, it is possible to speculate, and many investors in Forex do this by getting a credit line. This marginal trading technique can help to greatly increase the potential of profits as well as losses, so be careful with it.

Pattern recognition is a method that will help you to be a much more successful trader. Just as with regular stock trading, the foreign currency exchange markets will very often repeat certain patterns over time. Learning to recognize these patterns and gathering the information found around them can give a Forex trader the knowledge and expertise needed to take advantage of them.

Pattern recognition is similar to learning how to diagnose diseases as a med school student or intern. For example, all diseases are defined by their own specific set of symptoms. The student runs tests and observes the patient to gather information needed to determine what the disease is. This is why med school students are required to see large numbers of patients to increase their knowledge as they practice putting all of the information together so that they can accurately diagnose conditions.

Not unlike the huge books carried around by med school students, many of the books on technical analysis for pattern recognition are quite large and cumbersome. Those who hope to become experts in the field use these books and their historical depictions of past trading patterns to help them try to identify current patterns and take advantage of them for profit.

The study of pattern recognition and research answers can often result in different training methods for traders. Most traders gradually improve their trading results though research, data collection, and learning to use better and more comprehensive tools. Those who take the approach of pattern recognition get knowledge straight from experts in the field and by practicing the methods learned, they become very competent in Forex trading. One will continue to become better by constantly trading and taking the advice of qualified mentors.

The other thing that one must be aware of with pattern recognition is that it is very individualized and a successful trader you think is using only pattern recognition is probably employing other research methods as well as their own personal experience in order to make their choices.

Gregg Hall
http://www.articlesbase.com/finance-articles/pattern-recognition-and-why-you-need-to-learn-it-to-be-successful-in-forex-trading-103094.html

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Trading Forex With Pivot Points

Jun 15

Posted by Day Trading editor in day trading techniques | 5 Comments

Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days move and trades are entered when the market hits a support or resistance line of the pivot point providing your OB/OS indicator is in agreement. All the support and resist lines are put in place 1st thing in the morning. then you wait for the market to hit those entry Points.

Contrary to what some might believe, trading Forex with Pivot Points are probably the most popular method used in trading the financial markets today. Long before the invention of computers this was the method used by the traders in the pits to determine hidden support and resistance levels.

The Pivot Point is still used by experienced floor traders and technical analysts alike. The major advantage now is that we now have computers and can calculate our points well in advance. Many charting packages can calculate them for you automatically, thus enhancing the use of Pivot Points.

Whilst there is a lot more to Pivot Point Trading in Forex Trading than we will be mentioned in this article, the purpose of this exercise is to introduce you to the concept of trading Forex with Pivot Points.

Remember the market can only go up, down, or sideways. It is like an elastic band that has been stretched, sooner or later it will rebound to an equilibrium point where the market is in balance, and then stretch the opposite way only to rebound and reach another balance point. Then some fundamental announcement or happening will drive the market in a new direction and so on day after day. Pivot Points can aid us in determining how far that elastic can stretch before it rebounds.

Whilst there are many time frames that can be used for calculating Pivots, for the purpose of this exercise lets concentrate on the daily time frame (i.e.: 24hr) Pivot Points are calculated using the previous days, Open, High, Low, and Close figures. There are many Pivot Point calculators available on the web so you don’t have to waste your time doing the calculations manually. Also bear in mind the longer the time frame you are using the longer you must be prepared to stay in the market or wait for the next entry point.

Pivot points unlike many other indicators are an objective tool. Because they are mathematically calculated, there can only be one answer for a specific time period.

Many subjective indicators like Fibonacci retracements, (and I am a great fib fan) Elliot waves etc. can have different people trading in different directions at the same time due to individual interpretation..

The PP’s can help you to predict the next day’s highs and lows in advance. PP’s can give you anything from 4 to 8 support and resistance levels. However you still have to be able to identify the trend to be a successful PP trader. Pivot Points also work best in a trending market.

Entry and exit points

Pivot Points can give you exact entry and exit points, rather than enter markets that are in the middle of a run, or about to turn the other way. Here is where we use other indicators to assist on the entry or exit. If the market stalls at a Pivot Point level, and you have an overbought or oversold indicator that will be a good time to get in or out. Or if a Fibonacci level coincides with a Pivot Point level it can make a strong case to enter or exit a trade. If the market is bullish and your favourite indicator is not near overbought, when it hits the first resistance level then you probably have a good case to stay in the market and make your profit target the next Pivot Point resistance line. The breakout above the 1st resistance level can then become your new stop or stop reverse.

Obviously the reverse is true of the support level as well. By combining the Pivot Points with your favourite indicator you can develop your own trading system that no one else uses.

Trading for the day will probably remain between the 1st support (S1) and resistance (R1) levels as the floor traders make their markets. Once one of these levels is penetrated other traders will be attracted to the market, and should the second level be breached, the longer term traders are attracted to the market.

Knowledge of where the floor traders are expecting support or resistance can be a distinct advantage especially when there is no outside influence in the market. Provided no significant market news has occurred between yesterdays close and today’s opening, the local floor traders and market makers tend to move the market between the Pivot Point (P) and the first support line (S1) and resistance (R1) If one of these levels is breached then expect the market to test the next levels (S2) and ( S3) or (R2) and (R3)

Whilst there are many other aspects to Pivot Point trading why not try this simple method first and see if you can develop your own strategy by using your existing trading technique’s in conjunction with the Pivot Points.

E.J Sieberhagen
http://www.articlesbase.com/currency-trading-articles/trading-forex-with-pivot-points-76049.html



Day Trading...



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Day Trading – Making Big Profits the Easy Way

Jun 15

Posted by Day Trading editor in day trading systems | 3 Comments

Wherever you go on the internet you see them day trading systems promising you a low risk way to make a fortune however ask any of them to produce a real time track record and you wonâ??t get one.

Because day trading simply is not an easy way to make money itâ??s an easy way to lose all your money. Hereâ??s why.

Day trading is big business and itâ??s a great story.

The story is that you can keep losses small and make profits all the time by scalping the market and build a huge fortune over time all for around $100 or so!

The reality of course does not match the hype.

Letâ??s look at the facts and why day trading does not work and will see you lose your cash.

1. The Odds are not on your side

Normally day trading relies on trying to predict what will happen in a day session.

How can you do this?

You canâ??t.

No one can predict what will happen in such a short term time period, itâ??s the equivalent to flipping a coin.

To trade forex markets you need reliable data and day trading canâ??t give you this.

2. Losses are kept small but

You have a huge chance of being stopped out.

Just like currency movement is unpredictable in a day, so to is volatility.

Day traders normally have small losses on trades but they have a lot of them. Now that by itself is not bad itâ??s a rule of successful trading.

3. Profits canâ??t cover losses

Day trading systems never run profits for a long period of time. They want to get in and get out and scalp a profit.

Now if there lucky to get one (and even day traders get lucky) it can never cover the losses they have and they have a lot of those.

So here is what day trading gives you

Small losses + High Odds Of Being Stopped Out + Small Profits + Low Chance of Success = Loss of Equity

The above equation neatly sums up why never can win and if you donâ??t believe it try this simple test:

Ask any day trader who sells a system to give you a track record of real time profits with real dollars ( not a hypothetical track record ) and you wont get one.

Most day trading vendors have the sense not to trade and make money by selling books itâ??s a lot easier to make money that way.

Sacha Tarkovsky
http://www.articlesbase.com/investing-articles/day-trading-making-big-profits-the-easy-way-109421.html

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Trading Stocks With Support And Resistance Levels

Jun 15

Posted by Day Trading editor in day trading strategies | 2 Comments

What is Support and Resistance Levels in Stock Trading?

Support and resistance are specific price areas or price levels which either support prices on declines in up trends or which resist prices on rallies in down trends.

In an up trend, short term and day traders will attempt to buy at support or at levels of support. In a down trend, short term and day traders will attempt to sell at resistance levels or in resistance areas.

If support and resistance levels cannot be determined, then you cannot define concise levels in which to establish entry or exit positions in your specific trade. It is of utmost importance for traders to develop effective strategies and methodologies for calculating support and resistance levels. These levels can be determined with the use of various trading tools like Point and Figure charts, Fibonacci numbers and Gann angles.

Day traders is in a definite advantage when it comes to the use of support and resistance levels, in as much that the day trader’s trade normally end when the trading day is over and if a bad trade or decision was made based on support or resistance levels it will not be repeated in the next trading day.

Determining support and resistance levels are somewhat different for the day trader than the position trader. This is because support and resistance levels for the day trader must be closer to the current market price that they are for the long term or position trader. Markets can only drop so far in one day, and consequently the determination of support and resistance levels by the day trader must be realistic in terms of what can be expected – however this does mean that day traders must be willing to use realistic technical support and resistance levels in order to establish their positions.

The following rule may appear very simple, yet it is enormously effective at isolating support and resistance levels and can be applied profitably in any market:

1. Follow a 3-day moving average of the highs, and a 3-day simple moving average of the lows.

2. Take the 3-day moving average of the highs to act as your resistance level, and the 3-day moving average of the lows to act as your support level.

3. Add a filter by drawing in the support of the lows if the trade has made a 3-day high in say, the last 3 days (you can use four or five days, depending on your trading methodology) This means that you will only draw in the 3-day moving average of the highs if the stock has made a 3-day low in the last three days – this means that you only want to sell when the short term is down.

This is a very simple method of trading stocks and commodities on a daily basis, and if calculated correctly they will work.

E.J Sieberhagen
http://www.articlesbase.com/finance-articles/trading-stocks-with-support-and-resistance-levels-123639.html

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Forex Trading Secrets You Should Know

Jun 15

Posted by Day Trading editor in day trading courses | 4 Comments

Many think that analyzing forex is hard and filled with mathematical concepts and many is willing to pay millions for market courses so they understand the technical analysis with graphics and so on. But we are confused by ourselves which frame will we choose, single minute, five minutes or daily.

If we think logically, clear, and ease we will see signals that actually exist but we can’t see because there’s indicators blur it. KISS = keep it simple stupid, is basic to be implemented everywhere.

To be successful in trading there’s some principals to follow. When you’re trading then you’ll have to think as a trader, buy at low price and sell at high price is the number one rule. Whether you’re playing stocks, commodities, or forex keep the basic traders’ principals.

Trading forex lasts for 24 hours. If we’re in Indonesia, the Australian market starts at 04:00 early in the morning, then the Japanese market at 14:30. Starts next is European market at 20:30 and the last one to open is the American market which will close at 04:30 the next morning.

Based on experience, time is very important to the outcome of the trade whether we will win or lose. Mostly the price is going steadily from the morning till afternoon Indonesia time. The ups and downs of the price start when the European market opens. Then when the American market sessions are open, we have a very good chance to gain big profits in short time only if we can position ourselves in a good position.

The way to determine the buy and sell position. Looking at the daily phenomena it is better for us to trade at American time. The first step is to count the price range (high and low) from currency pairs that day. There are four commons currency traded:

* EUR/USD Daily range average : 110-120 points
* GBP/USD Daily range average : 180-200 points
* USD/CHF Daily range average : 120-130 points
* USD/JPY Daily range average : 80-90 points

The numbers above is not fixed but at least when we enter the market we know that we’re in the right position. Eventhough this won’t guarantee a 100% win.

If we look at closely there’s a certain pattern from those four pairs of currency that is Euro/USD and GBP/USD walks the line together and 180 degree from USD/JPY and USD/CHF. If Euro/USD and GBP/USD is going high than the USD/JPY and USD/CHF is going the other way, vice versa.

But things don’t always go this way. There’s a moment where a currency is on his own and the other at the usual pattern. If this happens than the curruency that is has a stable movement is on its lowest or at its top and the currency has a mature daily range (close to the currency’s average daily range).

There’s no certain rule that says a pair of currency is easier to trade than the other, every currency have their own chances, and it is better for us to adjust to our margin that we have. The Euro/USD and USD/JPY movement is far more stable at range of 100 points and this make the currency safer to be traded with the smallest of our margin compare to GBP/USD and USD/CHF which range in the 200 points.

From the phenomena above a conclusion can be taken, that money is traded by top-class speculators like George Soros only on four world main currency. This is to balance the daily volume and price so at the closing stage the currency will be at their average range of high and low.

The price movement can actually be determined by the movement of each currency pairs. Analysis approach fundamentally with watching close the news is reflected from the price movement. We can read schedule of economic news just to watch it for hours and only waiting for certain news. Close to those times there are possibilities of extreme price changes.

Knowing when ther’s going to be an extreme price movement we can at least save times and we don’t need a whole day to watch the price movements in the monitors, except it is a hobby and doesn’t bother you that much.

In trading it is better if we adjust to the condition of the field that day. It is too risky if we try to predict that the price will be bullis or bearish at certain price level. Then we have to wait for the perfect moment to enter the market that is when the chance has come. The main key is to stay close to our trades.

Trading must be discipline, disciplne following systems and patterns that we have already set. Greed can cause a very fatal condition. Many failures started only by the simplest of mistakes. Miscalculations happened, and if those happens then we have to cut-loss or else we will beburden. Then think positive that there’s always better times tomorrow.

You can enter without having to know graphics and charts. The basic in decision making is the highest and the lowest price range everyday. If the price moves to the highest price that day, wait, because the price will try to get through the highest price that day. Just look at the daily range. For Euro/USD, the daily range is 98 points when we enter the market, there’s a possibility that it might pass 98 points that day then the price will decline again because there will be profit taking action.

If you are risk taker, you can make profit when there’s a price correction and actually you will get two gains at a time that is when the price goes up for a moment for then goes for reversal. This can be done but beginners are adviced not to do this and everyone who hasn’t a good experience about the market. You could try at the virtual forex first to understand the situation.

Don’t forget to pay attention to the currency that is opposite to the one you are trading. Example in this case you hold Euro/USD, you have to pay attention to opposite currency such as USD/JPY. Because at the same time USD/JPY will try to touch the lowest point before at the end go for reversal.

With the usage of graphics, we can get very good informations. It is also better if we use some softwares for trading we could only watch the time frame for 5-15 minutes. The indicator that is used is Bollinger band and if you’re not pretty sure you can add RSI indicator with 6 as it setting period. But back to basic, the important thing is the daily range of highs and lows. If there is break high and break low, you then go watch the candlestick and focus on the five-minute frame.

Many are trapped focusing on the graphics like the Ma lines has crossed or it hasn’t and many more. Actually at this time, price range hasn’t become mature yet, and of course makes things risky. Once again it is necessary to look at the mature price range.

The usage of pivot, support, and resistant point can also sharpen your decision. But once again the price range is all matter for decision making and you shouldn’t be doubtful because of any other indicators. For example Euro/USD has gone through break high. Look at the five-minute chart than the candlestick will touch the upper bollinger band or even more. You can wait a bit more so it can get to the very top, then when you feel there’s a reversal you can do your entry.

Price movement is very complex that affect four world main currency one another. This can’t be explained in detail. Overbought and oversold aren’t basically call upon the five-minute or the fifteen-minute frame. This signal will come to you as you practice, use your logic and amazing things will happen.

Trading is not a exact science so don’t waste your money for courses that will guarantee your success.

The main key is practice. There are many source of informations such as newspapers, internet, and mailing lists.

Tricks above doesn’t promise you a profit but at least if you implement the logic you will the be on the right track. You will have the basic of decision-making.

The recipee is, at the opening of the market, choose currency that is there.

Nofie Iman
http://www.articlesbase.com/finance-articles/forex-trading-secrets-you-should-know-50711.html



Day Trading...



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Day Trading Penny Stocks

Jun 13

Posted by Day Trading editor in learn day trading | 6 Comments

Daytrading or Swingtrading: Especially online, people will throw around the terms daytrading, swingtrading, and flipping a stock. In essence, they are all similar and overlapping styles of trading. Daytrading is when you buy an sell a stock within the same day once, twice, or many times (intra-day trading). Swingtrading is usually looking for a movement within the month of purchase. Flipping a stock is a style of trading built by targets set by looking at past performance. Flipping a stock is done by buying any given stock at its bottom support levels and selling at its resistance. All of these methods are short-term trading styles. They are influenced by what is going on right now; not what/where this company is going in the future. These indicators of market movement ATM (at the moment) include Technical Analysis, Press Releases, Stock Momentum (public sentiment) and general trends in different sectors.

Trading on Margin: Many investors are timid when opening a margin account. However, opening a margin account is the only way to avoid the “3-day” rule. When you open a margin account, you no longer have to wait 3 days for you funds to settle after a stock purchase/sale. Most online brokers require a $2,000 balance to open a margin account. If you are able to open one then you have the ability to purchase more stock than a normal cash account would actually allow. With $2000 in cash, you would have the ability to purchase $4,000 in stock. However, use caution, because if your purchase goes into the red, you loss also doubles

Shorting a Stock: Shorting a stock is another perk of opening a margin account. When you short a stock, you are actually selling something that you do not have. Usually this is done with the intention that a stock will decrease in price (for a various number of reasons). When it decreases in price enough to make you a profit, then you purchase that stock back (called covering your short position). Basically it is trading, only backwards. This ability gives you a method of making money by catching stocks in a downward (bearish) movement as opposed to looking for stocks on the rise (bullish stocks).

FYI…You cannot short OTCBB, Pinksheet, or any other stocks under $5.00.

Risk Tolerance: If you were to hire a “big-shot” broker or financial analyst than they would discuss your risk tolerance, and probably do it very extensively. I will address it shortly however, becasue I believe it is an essential question you must answer before you begin trading, however the answer is very simple.

First, figure out how much you can start to trade with. $500 will open you an account to help you learn, but will not offer much return. Others may recommend different amounts, but I believe that $1500 – $2500 is a decent amount to begin with if possible. This way, you can play approximately 3 stocks at once and erase a red play with two green ones.

Second, never invest (especially in pennies) what you cant afford to lose. When you begin, it is a learning experience. Don’t think of getting rich quick. The more you know, the safer your money will be. Protecting you initial capital comes first. It is better to not take a loss than to not take a gain. Pennies are not your kid’s college fund. Trusts and Mutual Funds handle that type of low risk, slow growth.

Finally, when it comes to risk (sorry for the cliche) Knowledge is Power. The more you know, the safer your money is. Play safe, play smart. Make the smart trade.

$$$ Practice, Predict, Profit $$$

Opening an Account: The next step is opening an account. By addressing all of the above issues, it will make your decision about a broker much easier. Knowing how often you plan to trade, what your average trade size will be, and various other aspects of your trading style/interests will determine the broker which best suits you. The next post will layout the key points/attributes, pros/cons, and customer service experiences with the most popular, affordable, and reliable online brokers.

Article Written by Rob of Stockhideout.com HREF=”http://www.stockhideout.com” REL=”follow”>Hot Penny Stocks

rob rens
http://www.articlesbase.com/finance-articles/day-trading-penny-stocks-97176.html

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Successful Forex Trading with Pivot Points

Jun 13

Posted by Day Trading editor in day trading techniques | No Comments

Pivot Points are calculated on the previous days move and trades are entered when the market hits a support or resistance line of the pivot point providing your OB/OS indicator is in agreement. All the support and resist lines are put in place 1st thing in the morning. then you wait for the market to hit those entry Points.

Contrary to what some might believe, Pivot Points are probably the most popular method used in trading the financial markets today. Long before the invention of computers this was the method used by the traders in the pits to determine hidden support and resistance levels.

The Pivot Point is still used by experienced floor traders and technical analysts alike. The major advantage now is that we now have computers and can calculate our points well in advance. Many charting packages can calculate them for you automatically, thus enhancing the use of Pivot Points.

Whilst there is a lot more to Pivot Point Trading in Forex Trading than we will be mentioned in this article, the purpose of this exercise is to introduce you to the concept of trading Forex with Pivot Points.

Remember the market can only go up, down, or sideways. It is like an elastic band that has been stretched, sooner or later it will rebound to an equilibrium point where the market is in balance, and then stretch the opposite way only to rebound and reach another balance point. Then some fundamental announcement or happening will drive the market in a new direction and so on day after day. Pivot Points can aid us in determining how far that elastic can stretch before it rebounds.

Whilst there are many time frames that can be used for calculating Pivots, for the purpose of this exercise lets concentrate on the daily time frame (i.e. 24hr) Pivot Points are calculated using the previous days, Open, High, Low, and Close figures.

There are many Pivot Point calculators available on the web so you don’t have to waste your time doing the calculations manually. Also bear in mind the longer the time frame you are using the longer you must be prepared to stay in the market or wait for the next entry point.

Pivot points unlike many other indicators are an objective tool. Because they are mathematically calculated, there can only be one answer for a specific time period.

Many subjective indicators like Fibonacci retracements, (and I am a great fib fan) Elliot waves etc. can have different people trading in different directions at the same time due to individual interpretation.

The PP’s can help you to predict the next day’s highs and lows in advance. PP’s can give you anything from 4 to 8 support and resistance levels. However you still have to be able to identify the trend to be a successful PP trader. Pivot Points also work best in a trending market.

Entry and exit points Pivot Points can give you exact entry and exit points, rather than enter markets that are in the middle of a run, or about to turn the other way. Here is where we use other indicators to assist on the entry or exit. If the market stalls at a Pivot Point level, and you have an overbought or oversold indicator that will be a good time to get in or out. Or if a Fibonacci level coincides with a Pivot Point level it can make a strong case to enter or exit a trade.

If the market is bullish and your favourite indicator is not near overbought, when it hits the first resistance level then you probably have a good case to stay in the market and make your profit target the next Pivot Point resistance line. The breakout above the 1st resistance level can then become your new stop or stop reverse.

Obviously the reverse is true of the support level as well. By combining the Pivot Points with your favourite indicator you can develop your own trading system that no one else uses.

Trading for the day will probably remain between the 1st support (S1) and resistance (R1) levels as the floor traders make their markets. Once one of these levels is penetrated other traders will be attracted to the market, and should the second level be breached, the longer term traders are attracted to the market.

Knowledge of where the floor traders are expecting support or resistance can be a distinct advantage especially when there is no outside influence in the market. Provided no significant market news has occurred between yesterdays close and today’s opening, the local floor traders and market makers tend to move the market between the Pivot Point (P) and the first support line (S1) and resistance (R1) If one of these levels is breached then expect the market to test the next levels (S2) and ( S3) or (R2) and (R3)

Whilst there are many other aspects to Pivot Point trading why not try this simple method first and see if you can develop your own strategy by using your existing trading technique’s in conjunction with the Pivot Points.

Martin Chandra
http://www.articlesbase.com/finance-articles/successful-forex-trading-with-pivot-points-81026.html

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Forex Day Trading – How to Lose your Account Equity Quickly

Jun 13

Posted by Day Trading editor in day trading systems | No Comments

I read a lot of material from e-book sellers and others about forex day trading and how easy it is, but these guys have probably never traded in their lives.

The fact is if you want to make money donâ??t day trade, you will lose your equity. Here we will look at why.

The Odds & Data

The longer and more data you have, the easier it is to calculate the odds.

Currencies represent the overall health of the economy and itâ??s a fact that the longer term trends last for months or years â?? These are the trends that make money.

Day trading is doomed to failure, as you have no reliable data to work with as the time span is to short.

If you have no data to work with then how can you day trade?

You may as well toss a coin.

Day trading sounds appealing, scalping the market, getting in and out quickly – but you wonâ??t win.

CONSIDER THIS FACT TOO:

Letâ??s assume you donâ??t believe me and you think the data is reliable enough.

Well, how about this to consider:

To make money trading â??Run Your Profits and cut your lossesâ?

All professional traders know this is the way to make money.

You need to make sure that your profits are big enough to cover your inevitable losses.

In day trading you can cut your losses but running your profit is a contradiction in terms!

You canâ??t, because even if you have a winning trade you close it too soon.

This would seem common sense, but day traders donâ??t believe it but they should, itâ??s a fundamental rule of investing.

I know long term traders who win maybe 20% of the time and make huge profits.

Why?

Quite simply, their profits are far bigger than their losses, on the other hand, I have seen day traders win 50% of the time and get wiped out.

If you want a thrill then forex day trading is exciting but you will lose your money.

If you donâ??t mind losing money, go ahead but if it were me, I would play roulette itâ??s just as exciting and more fun.

Fact is those e-books and brokers peddling day trading systems normally have never traded and rely on persuasive copy and greed to sell their systems.

Normally they have their eye on the commission they can make.

Forex day trading is great for that but that wonâ??t help you make money.

If you still donâ??t believe me then when you get a broker or e-bookseller who wants you to day trade ask them for the following:

A real time audited track record (minimum 3 years) net of all fees showing a profit.

Try it and see if you get one for a forex day trading system.

Sacha Tarkovsky
http://www.articlesbase.com/currency-trading-articles/forex-day-trading-how-to-lose-your-account-equity-quickly-99661.html

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How to Day Trade for a Living – a Systematic Approach

Jun 13

Posted by Day Trading editor in day trading strategies | No Comments

â??Is it really possible to make a living as a day trader?â?

This question is asked over and over and over again by normal, ordinary people. The answer is simple: â??Yes, it is DEFINITELY possible! And, better yet, you yourself can do it!â? Sometimes people donâ??t believe me when I say that they can become successful, full-time day traders, but itâ??s true. And Iâ??m going to prove it to you right now.

Before we get started, I need you to ask yourself one very important question: â??How much is â??a living?â??â? Many people want to be â??rich,â?? but they fail to quantify what â??richâ?? means to them. Are you â??richâ?? if you have one million dollars? Maybe so, but if you told Donald Trump that he had one million dollars in his bank account, heâ??d wonder what had happened to the rest of it! One million dollars to Donald Trump equals broke!

How to Make $150,000 Per Year

Since I donâ??t want to get into a deep discussion about â??how much money is a decent living for you,â? letâ??s just assume that you would be pretty happy if you were making $150,000 per year, and letâ??s say that you are making this money with your trading. Does that sound reasonable?

Letâ??s break it down: $150,000 per year would be $12,500 per month, or, if you prefer, $3,000 per week. This is assuming that you are taking two weeks of vacation per year.

So, would you like me to tell you how you can make that imaginary figure of $3,000 per week â?? that $150,000 per year â?? into a reality? Because I can. All it takes is smarts and strategies.

Start Small â?? Set a Weekly Goal for Only ONE Contract

When day trading futures, options, or forex, you can use leverage and trade multiple contracts on a rather small account. If you are thinking about trading the futures market, then you can easily find a broker who will enable you to trade one contract of almost any futures instrument that is our there â?? such as e-mini S&P, e-mini Russell, currency futures, interest rates, commodities, etc. â?? on a $2,000 account.

I teach my students to set a weekly goal of $300 per contract. So, if you want to make $3,000 per week, then you need to trade ten contracts. Itâ??s possible that your broker might agree to let you trade ten contracts with $20,000 in your trading account, but if he wonâ??t â?? or if you donâ??t have $20,000 in your account at the moment â?? donâ??t worry. Just stick with me, and Iâ??ll show you how to get there.

How to Achieve Your Weekly Goal

The key element to trading success is having a sound trading strategy, and it must be one that works effectively in a variety of markets. You will dramatically increase your chances of success in trading if youâ??re able to trade in multiple markets. Now, understand that when I say â??multiple markets,â? I do NOT mean different types of currencies! This is a common misconception. What Iâ??m talking about is TRUE diversification, which means watching the two U.S. Stock Index markets, one or two currency markets, commodities like the grains, interest rates, and/or a foreign index market, all at the same time. Here at Rockwell Trading Inc., we teach our students to watch six different markets every single day.

Another obvious key factor is profits; to achieve your weekly goal, youâ??ll ideally have a high average of wins per trade. It goes without saying that your average win should be at least 50% higher than your average loss, preferably even twice as high.

The strategies that I use and teach call for a profit target of $300 per contract and a stop loss of $200 per contract. Youâ??ll notice that the profit target is greater than the stop loss. Thatâ??s the beauty of it: all youâ??ll need is one win, and youâ??ll have achieved your weekly goal of making $300 per contract. ONE WIN!

Just as an FYI, this is why â??scalpingâ? is so much more difficult. Most scalpers try to make $10 – $20 per trade, so you would need 15 â?? 30 wins per week to achieve your weekly goal. Which do YOU think is easier? Making one profitable trade or trying to make 15-30 profitable trades?

â??Sounds Good, But What About Losses?â?

As everyone in trading knows, losses are a part of the business, and you canâ??t avoid them. If thatâ??s something you have trouble accepting, then youâ??re in the wrong industry. However, thereâ??s a huge difference between losing big on a regular basis and losing small in a controlled trading plan. Our trading strategies assume a certain amount of loss, and we prepare our students accordingly. You already know that you should keep your losses small; we simply teach you how to keep them smaller that your average wins.

Letâ??s go back to the scenario I mentioned above: you have a trading strategy that produces $300 in profits for every win and costs you $200 for every loss. Now, if your weekly goal is $300, and if your first trade was a loss of $200, then you need to make two winning trades to achieve that weekly profit goal.

Let me take this a little farther and actually break it down for you: youâ??ve lost $200 on your one losing trade, and then you make $600 on your two wining trades ($300 each). Your net profit = $400. Goal achieved. Itâ??s as simple as that.

Of course, youâ??re not always guaranteed a week with only one loss. Letâ??s look at a week that started off with three losses. With three losses, you are now down $600 ($200 each). So, how many wins do you need to have before you achieve your weekly profit goal of $300? Three wins. Just three wins will result in $900 ($300 each). Subtract the $600 you lost on the losing trades from the $900 you won on the winning trades, and your resulting net profit is $300. Goal achieved. Again, simple as that.

â??Wait A Minute â?? Youâ??re Saying That I Will Achieve My Goals

With a Winning Percentage of Only 50%?�

YES! Thatâ??s exactly what Iâ??m saying! Read the example above again: you lost $600 on three losing trades, made $900 on three winning trades, and came out with a net profit of $300. This means that you could pick a losing trade every other time and STILL achieve your weekly profit goals!

It gets even better: letâ??s just assume for a minute that you do end up achieving an actual winning percentage of only 50%. Now, when you start trading again on Monday morning, what are your chances of having a winning trade? Since weâ??ve already established that you make $300 per winning trade, and since $300 is your weekly profit goal, your chance of achieving that goal after only the first trade on Monday is also an overwhelming 50%! You have a one in two chance of meeting your weekly profit goal in just one, single trade!

So if you DO achieve your weekly profit goal on the first trade Monday morning, what next? Stop trading for that week! Just enjoy life! It doesnâ??t get better than that! Remember, you need to stick to your trading plan and your weekly goal. Do NOT enter into another trade once youâ??ve already achieved your weekly goal; the chance that your second trade may be a losing trade is too great, and you would be giving your money and profits back to the market. Overtrading and greediness are a traderâ??s downfall, so resist them and stick to your strategies.

How to Increase Your Winning Percentage

Iâ??ve just proven to you that you can achieve your weekly profit goal with a winning percentage of only 50%. But wouldnâ??t it be wonderful if it was possible for you to boost your winning percentage to 60% instead, or even 65%?

Well, it IS possible, and hereâ??s how to do it:

Be picky. Seriously, when it comes to trading, being picky is actually a VERY good thing. Donâ??t take the first trade you see just because it looks decent. Analyze your possible trade. Make sure that it fits ALL of your entry conditions and parameters.

As I said previously: you should be watching six different markets. Letâ??s assume that you have a trading strategy which gives you one entry signal in the first two hours of trading. This would result in up to six entry signals per day, since you are watching six markets. Six entry signals per day add up to 30 entry signals per week.

Now, of course, there will be some days when youâ??ll only have 1-2 entry signals in the six markets; however, the chances are high â?? especially if youâ??re watching uncorrelated markets â?? that youâ??ll get at least two entry signals per day, or ten entry signals per week.

Pay attention to your entry signals, and rely on them. You already know that youâ??ll meet your weekly goal with just one winning trade, so be patient. If there are no good trades on Monday, then simply wait until Tuesday. The same goes for the whole week. Donâ??t push it! Wait until the market is ready to be traded. It WILL happen.

Waiting for YOUR trades on YOUR terms WILL increase your winning percentage. By skipping the trades with â??so-soâ? entry signals, by taking only the best that the market has to offer, youâ??ll be on the right path to solid profits and success. Thatâ??s how it works.

Full Circle â?? How to Make $150,000 Per Year

A quick recap: the first step towards financial success is to define your weekly profit target. Next, you need to find a reliable, straightforward trading strategy that will help you achieve your profit goal. When you enter into a trade and your trade hits either your profit target OR your stop loss, exit that trade immediately. Stick to your trading plans and strategies until you achieve your weekly profit goal, and then give yourself a rest until next week.

If youâ??ll think back to the case I gave at the beginning, in order to make $150,000 per year â?? assuming a 50-week year and two weeks of vacation â?? youâ??d need to make $3,000 per week. At a $300 profit per trade, this means that you would need to trade ten contracts. Of course, this illustration can be applied to various amounts. If you wanted to make $225,000 per year with a weekly profit target of $300 per contract, for example, then you would have to trade 15 contracts, and so on, and so on.

If you donâ??t have a trading account that letâ??s you trade the amount of contracts that Iâ??m talking about yet, then now is the perfect time to start building it. Remember, be patient with your trading, be smart, slow, and steady. Trading success doesnâ??t happen overnight, but with the right strategies and structure, you can achieve profitable results in a much shorter time period than you may have thought possible.

Plan your trades and trade your plan. THATâ??S how successful traders make money.

I rest my case. �

Markus Heitkoetter
http://www.articlesbase.com/investing-articles/how-to-day-trade-for-a-living-a-systematic-approach-193440.html

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Forex Online Currency Trading

Jun 13

Posted by Day Trading editor in day trading courses | 3 Comments

A lot of people are surprised to find out just how easy it is to learn even the basics in relation to Forex online currency trading. You will be surprised just how quickly you can actually start to make a profit through this type of trading, but at the end of the day this will depend a lot on which type of trader are you. Through this article I will be explaining just how easy it is to learn about the basics of forex online currency trading and how easy it is to make a profit.

Certainly if you are someone who is looking to invest some money in order to make a little extra income then Forex currency trading may be what you should be thinking of. However it is vital that you first learn a little bit more about Forex online trading before you do. There are literally hundreds of sites on the internet which can provide you with tips and courses on how to make money from Forex trading.

There are a number of different tutorials now available online which can help explain everything a person needs to know about the Forex market and is ideal for the complete novice. These tutorials will show a person how the Forex market works, what is a Forex technical indicator, plus the types of economic indicators that a trader should be aware of when trading in Forex. Plus there are a number of different Forex trading systems now readily available for people to try and use which will help to make their Forex online currency trading much more successful.

What is extremely important if you really are interested in getting involved in Forex trading is that you do some training first. Forex currency trading is not something a person should dabble in without learning everything that they can about the subject. Certainly, you should depend on luck or based on someone’s insider tips as well.

The great thing about many of the Forex online currency trading courses that are now available is that those running them understand what an enormous risk someone is taking getting involved in this type of trading. The people running these courses have made it extremely easy for those who want to learn as they offer their members free training, free demonstrations as well as tutorials and simulations of Forex trading accounts. The great thing about these simulations is that you can try them out without actually placing any of your money in to them and will help you learn the basics of Forex currency trading. Actually finding a course or tutorial is extremely simple all you need to do is key in “Forex currency trading online courses” and you will be amazed at the results that appear.

Ricky Lim
http://www.articlesbase.com/currency-trading-articles/forex-online-currency-trading-167988.html

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