Guerilla Trader (Part I)

By Ahmad Hassam

What is your profile as a forex trader? Have you ever thought of thinking which trading profile best suits you? A trading profile that matches your personality can make the difference between success and failure. Forex traders have different profiles. Your trading profile depends on the time frame you trade. Are you a short term trader like a day trader or a swing trader? Are you a long term trader like a position trader? So your time horizon can range from a very short term to a very long term. Find the time horizon that best suits you and bring all your trade plan considerations in line with it.

Discovering the bad traits in you early is going to help you get a firm toehold and develop into a good trader in the long haul. So determining your trader profile early on in your trading career is very important for your success as a forex trader. Good traders share common characteristics. Bad traders share many things in common.

Jumping from one trading style to another will make you move in circles. You need to find the trading profile that best matches your personality. Too many traders jump from one type of trade and profile to another quickly and often. Forex markets are enormous, complex and deep. Finding your right trading profile is essentially finding your own niche in the market. Once you know your profile, you can dig deeper for improvements.

So how you determine your trading profile? The primary considerations in determining a trading profile are: 1) How much profit you wish to achieve in each trade? 2) How much risk you are willing to take in each trade? 3) How long on average do you expect to hold your positions?

You should know this fact that the longer you hold a position, the more you can benefit from the developing trend. At the same time, the longer you stay in the trade, the more you are at the risk of a sudden news release or announcement that can be bone jarring for your trade.

A Guerilla Forex Trader is looking for very short term profits something like 10-20 pips. Trading costs can become highly significant for a Guerilla Forex Trader as he/she may be in and out of the market frequently. So what are the most probable trader's profiles? The answer to this question will lead you to one of the following profiles: 1) Guerilla, 2) Scalper, 3) Day Trader and 4) Position Trader.

If you are new to forex trading, you cannot and should not be a Guerilla trader. Now read it very carefully, a Guerilla is not a good fit for a new trader. This profile is best left to the professional forex traders with direct access to the interbank market and very low bid/ask spreads. A Guerilla Forex Trader might follow a 5 minute chart to follow the market, the 30 minute chart to determine the long term trend in the market and 1 minute chart to time trade entries and exits. There is too much noise on the 1 minute chart and it will be very difficult to make sense of that noise.

So if you are a new trader just starting to learn the ropes, you should avoid Guerilla trading profile. You will not be able to cover your trading cost with this profile. You can only be profitable in the long run if your trading cost is less than your profits. - 31876

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Stock Trading Software: How Will It Assist You?

By Carl Keller

Owning a terribly good stock trading software will be a very handy tool for faster and easier transactions within the stock exchange. Once all, it is a nice method to research the market with the use of an online software that is capable of calculating necessary indexes plus giving you a preview on that shares you should consider trading.

A stock trading software is basically a pc program that enables you a bound degree of access to the stock market of any half of the world. This program has the flexibility to investigate movements among international markets.

Traders usually use this sort of software to perform both buying and selling in the stock exchange. It also offers investors various edges that may help them in successfully engaging in the stock market. Here are some of the ways that the software becomes helpful to you:

Time Reduction

One in all the key edges in using stock trading software is that it saves you plenty of time. Once all, time is a very essential issue in stock trading for you to be ready to create the most effective deals.

Through the employment of this program, you'll be able to forego with having to spend therefore long in making an attempt to interpret information on your stocks through newspaper reports or on-line stock pages. Through one click of the mouse, the software will download the required info and can process all the information for you therefore you'll build your selections faster.

Purpose Guidance

Another great profit for using this software is that it can give you great trading recommendation, particularly if you're a beginner. As a result of the program isn't biased upon emotions in presenting its opinions to you, a additional objective and truthful judgment on that stocks can be best to take a position on will be delivered. And so, there's a better chance that you'll be guided to making a better and unbiased decision.

Additional Management

Using a stock trading software conjointly gives you more access and control to your own accounts. Instead of relying an excessive amount of on brokers to negotiate deals for you, you are now empowered to handle a lot of the work yourself, and you'll even constantly check on how your investments do within the market. This manner, you'll monitor your stocks a lot of effectively.

Broadening Of Your Selection

Finally, the employment of trading software can also permit you to create international trades easier and this could broaden your portfolio. As a result of the program is predicated on data technology and a vast on-line network, it'd be easier for you to form international transactions without having to go away your own home. This will pave way to broaden your stock portfolio and even create it additional secure.

Indeed, the employment of trading software is a great way to maximise what trendy technology has to supply and incorporate it in making profit. By saving you plenty of your time, supplying you with more objective advice, empowering you to have additional control and broadening your portfolio, this program has proved its usefulness for anyone curious about engaging into stock exchange.

And thus, if you are interested on making your stock transactions faster and easier, or if you are just new to the market and would wish very sensible assistance in your decisions, then you'll be able to never get it wrong by investing on a sensible stock trading software. - 31876

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Thinking About Forex?

By Kris Deaney

Many people are starting to be curious about trading Forex. There are a number of reasons for this, however the most popular ones are the ease of entry into the markets, the chance to make the most of markets no matter what direction they're going in and also the leverage that's obtainable for traders.

These are all good reasons to trade Forex, but a trader must be careful. Leverage as an example can be a disadvantage as well as an advantage, if a trader doesn't totally understand how to manage risk.

That is why it's important for a trader to have a good trading strategy, before they start trading within the market.

The other issue they will need to think about, is how to find a very good Forex broker. Unfortunately, the Forex market is not regulated. This means that many brokers can really do as they like, and a few opt to to act in unscrupulous ways.

Joining up with a good Forex broker means that people will be able to avoid things like slippage. Slippage is where a brokerage will re-quote a price that a trader needs to buy or sell at. This will always occur to some level, especially during fast moving marketplaces, however top quality brokerages can keep this to a minimum.

A top quality brokerage will additionally give traders low spreads. Essentially the spread is the distinction between the bid and ask level, or alternatively, what a particular currency can be bought or sold for at a certain time.

The greater the spread the more costly it will be to trade. Top quality brokers provide lower spreads. They can also offer the opportunity for training and education, so that traders can develop market knowledge with their trading strategies.

It additionally means they can give traders with the chance to get up to the minute financial information, so that they're tuned in to world events and the release of economic data, furthermore being able to use professional charting programs, as any other skilled bank trader could.

Brokers both good and bad will also provide a trader the possibility to use leverage in a trade. For those not sure what this is, if for instance a trader trades at 10:1 leverage, they will just need to put down one dollar for each 10$ that they obtain in the market. 20:1 would be one dollar for every $20 that is traded within the market.

When leverage is employed as part of a trading plan, where risk is controlled, then it can offer very good chances for increasing profits. But, every trader needs to realize that it can amplify looses extremely quickly and because of that it has to be treated with respect, particularly by beginners. - 31876

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Common Sense Guidelines For Currency Trading

By Ahmad Hassam

Someone had rightly said a long time ago that common sense is so common that nobody uses it. Well, if you are going to become a trader than you need a lot of common sense. If you don't use common sense than you might as well not trade at all! OK, now a few common sense guidelines for you as a trader:

1) Always beware of forex brokers. Your broker might be cheating you and you may never know about it. It is all due to the unregulated nature of the forex market. Even if you complain nothing will happen. Don't fall into the trap of some unknown broker. Your ability to trade effectively depends on consistent spread and ample liquidity. You should always look for a reputable broker. Anyone can open a position. However, your ability to close a position at a good price is more important.

2) Trading means making consistent steady profits! Learn prudent money management rules. Avoid using excessive leverage that puts your investment capital at risk. Always trade with a stop! Never try to win big in one single trade. This is not trading, it is gambling. Always live to trade another day. If you believe in winning big than quit trading and start gambling! But if you do that you will only ruin yourself.

3) Never ever trade emotionally. Stick to your plan and maintain your trading discipline. Always develop and make a trading plan before you take up trading. Set a reasonable risk/reward ratio for your trades. Never ever override yours stops for emotional reasons. Don't react to price action buying just because you think it is cheap or selling because you think the price is high now. Always use technical analysis to make your decisions.

4) Don't punt. Punting is trading for the sake of trading without any planning or view. You are not a punter. Always plan each trade.

5) Don't try to trade around round numbers. Don't leave stops at round numbers or obvious levels. If you do that chances are they will be triggered.

6) You are not a gambler. You are a trader. Don't use martingale strategies in trading. Don't double up just in order to recoup your losses. In other words, only do that if it is part of a trading strategy. Don't add to a losing position unless it is part of a plan to scale into a position.

7) When trading against the trend be disciplined in taking profits and don't hold out for the last pip. When trading with a trend always use a trailing stop loss order.

8) Treat trading as a continuum. Don't base your success on one trade. Avoid emotional highs or lows on individual trades. Consistency should be your target.

9) Try to trade multicurrency. This will hedge your risk. Always keep an idea on the crosses.

10) Markets hate surprise news. You should know the economic calendar. Don't trade just ahead of an economic news release. Always beware of volatility following the economic releases. Be cognizant of what news is coming out each day so that you never get surprised.

11) Stay away from illiquid times like holidays or pre-holidays when liquidity is thin. Beware of central bank intervention in illiquid markets. - 31876

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Setting Your Trading And Investing Goals

By Sam McNeill

What's the best way to go about setting your trading or investing goals? Well, as with most goal setting in your life it involves two important elements: perceived difficulty, and how specific you are in stating your goal. These two elements play an important part in attaining your goals.

If you set yourself a trading/investing goal which is difficult and specific you are more likely to heighten your performance to attain your goal.

In a trading example a goal to earn $50,000 next year through your trading activity is good. However, a goal to achieve, say $51,600 will likely produce better performance as it is perceived by your brain as more specific.

Setting easy goals is unlikely to raise your performance as if you set a difficult but specific goal. So if you believed that a trading goal to earn $51,600 is easily attainable for the year, and then maybe set it to a more challenging $72,400.

And people are more likely to perform well when the goal is seen as believable based upon their knowledge, their training, and their skills. When people know it CAN happen because they CAN make it happen, performance increases. So don't set a completely unrealistic goal.

As you work towards achieving your goal, your belief in the importance of achieving your goal will make you more committed to your goal. As you assess your progress you will be reinforcing your commitment when seeing results. This will strengthen your performance to achieving your goal.

You can measure your progress against your trading/investing goal simply by keeping a running tally of your earnings year to date. So when you are half way through the year and have an earning tally of $38,100 from your goal of $72,400 you know you are on track as you are over half way there.

Most people who start trading shares or investing in shares do not have goals. When asked about what their trading goals are, they don't know and they don't worry about it. The most common response is "to make some money". This is neither specific nor difficult nor does it have a big "Why is this goal important" nor is it measurable.

Start by setting a difficult, specific, and realistic trading/investing goal and start measuring your progress. But make sure you understand why you want to achieve your goal; you need to know why it is important for you to achieve your goal.

Kevin Hogan discusses in his textbook "The Psychology of Persuasion", the idea of "the least acceptable result" and how this is the goal that most people will achieve from any activity. What is your trading or investing least acceptable result? Don't let this be your goal, set your trading/investing goal today and raise your performance and watch the results. - 31876

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Pick Forex Winners with Fap 'Winner

By Henry Blanc

Of all the financial markets available, it is the foreign exchange market that is the largest. In fact, it trades about $2 trillion daily, an amount equal to the total amounts traded in the stock market and the futures market combined, then multiplied by three.

Even a tiny fraction of the total amount of trades is a lot of money. I's every trader's dream to get the tiny fraction and have financial security. Their are risks involved in any investment though.

Trading in Forex isn't unlike handicapping horses. There's just a lot more data involved. Almost 50% of trades end in losses. Mastering this market is not easy, but if you can learn what the experts know the rewards can be huge. Forex trading can give you the financial security you want for yourself and your family. Don't even think about walking into this market blind.

Then came Fap Winner. Suddenly, the need to understand every bit of data, history, trends, charts, past movements, economy of countries and every bit of information concerning foreign exchange as well as all the factors that affect its movement is no longer needed.

Instead of becoming an expert, you have your own personal expert that will work for you 24 hours a day, 5 days a week to make the smartest trades possible. It does all the work so you don't have to.

Get ready to start making serious money in the Forex market with minimal risk to your investment.

Fap Winner is a fully automated Forex robot which makes all the trades for you. You just have to install it and input your data. It works at times you wouldn't be able to monitor the market, when you're sleeping, working or just spending time with your family. Fap Winner takes the work out of Forex trading and makes you an instant expert.

Making use of Fap Winner will have you trading as if you are a forex wizard if you will base it on what you will earn alone. With just an amount of $2997, you can already have an investment tool that can afford you your need as well as your family's.

This is a very small amount compared to the money will be earning as soon as you download the forex robot and start it running.

If you want to learn more about Fap Winner, just visit the website, http://fap-winner.com/. The site is full of information that can change the way you invest and the way you live. The explanations are clear and the site is easy to read and to use.

There is lots of information on the advantages and pitfalls of the Forex market and detailed explanations of how this robot can work to make you money without any work on your part.

It costs nothing to visit the site and it could be very rewarding. If you want to trade successfully on the Forex market, you owe it to yourself to take a look and see what the Fap Winner could do for your financial future.

The price of Forex software varies widely and there are many sites offering software for this market. You can shop around, but you won't find a better value than Fap Winner. - 31876

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Short ETFs

By Ahmad Hassam

The ProShares Short Dow 30 ETF (DOG) will return the inverse of the Dow Jones Industrial Average (DJIA) on daily basis. If the DJIA falls by 2%, DOG rises by 2% and if the DJIA rises by 2%, DOG will fall by 2%. Short ETF returns the inverse of the index it is linked to.

During the past few years, the number of Short ETFs has risen dramatically. Short ETFs not only cover the major stock indices like the S&P 500 or the DJIA but also different sectors like the energy, utilities or technology. You will even find Inverse ETFs on currencies now. Short ETFs are also known as Inverse ETFs or Bear ETFs.

Most of the ETFs are designed around some market index. ETF shares trade like ordinary stock shares. You can buy them. You can sell them unlike the mutual funds that can only be sold at the end of the day. The ProShares UltraShort Dow 30 ETF (DXD) rises 2% when the DJIA falls by 1%. So you can even find leverage short ETFs. A leveraged short ETF gives the trader leverage without the use of margins.

Over the years, short ETFs have risen in popularity with the investors and hedge funds. Short ETFs give you an excellent opportunity to profit from the volatility in the market and the major indices.

If you have been trading currencies, then you should know that inverse currency ETFs are a great way to profit from the volatility in the underlying currencies. Short ETFs are a great product as they have created new opportunities for traders. A trader had to actually short sell stocks to take advantage of a market drop before the introduction of short ETFs.

ETFs have opened up a whole new way of profiting from the markets. The trader had to go against the trend and buy or else move into cash or fixed income in the past if the market was dropping. Traders are not allowed to sell short stocks or ETFs in their retirement accounts. Short and leveraged ETFs provide traders with new opportunities.

ETFs also provide you with the opportunity to take advantage of the global market swings. China is one example that garners a lot of attention. The Shanghai Index in China rose 100% in 2007. In the first quarter of 2008, the Shanghai Index was down 35%.

In the past, traders who wanted to benefit from the fall of Chinese stocks could only short Chinese stocks that were traded in US Stock Exchanges. The ProShares family of ETFs introduced the Ultrashort FTSE/Xinhua China 25 ETF (FXP). Now if you want to trade the fall of Chinese stocks, you can trade FXP ETF.

Short ETFs can be used for other purposes as well. Assume you have a portfolio of $100,000 composed of 75% stocks and 25% money market fixed income. As a long term investor you can take advantage of short ETFs to hedge your portfolio position.

The forecast of the market for the next six months is not good. But you are reluctant to sell your stocks due to tax reasons. Suppose the market falls by 10%. Your stock portfolio falls by 7.5% assuming the same ratio between the market and your portfolio. - 31876

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