Wednesday, May 28, 2008

regulated forex brokers Facts

Forex Trading - The Secret of "Mr X" And His 5 Figure Income By Using Price Momentum

As a Certified Financial Planner, I have often been amazed with the specific trades that a client, whom I shall call "Mr X" places in the forex and stock markets. His calls are almost always winners, which means his trading signals are very accurate. He does not trade every day, because his trades are based on the trading setups that he obtains, which is around 3 or 4 times every month or averaging a signal a week. Most interesting of all, he is consistently one day earlier in deciding whether there is going to be a trading move or not. He is a trader who is always timely with his entry and exit, which is highly remarkable.

Needless to say, Mr X has been earning a 5 figure income from trading the forex market for years.

How does Mr X do it so consistently?

Firstly, he uses technical analysis and charting, and follow a trading concept called price momentum.

Price momentum dictates that when a currency breaks out in price, the momentum will carry it in the same direction, until it falters and the momentum decreases, and finally comes to a stop.

For Mr X, forex trading is a profitable game as he has perfected his entry and exit positions based on many years of trading experience in the direction of the price momentum.

Once a currency has broken out of a price level and has indicated that it will continue in the same direction, Mr X will just make a purchase position. Conversely, when he sees the price momentum dropping, and touch a certain level that he has determined prior to the occurrence, he would be selling.

In this way, setting a limit to the price momentum to ensure that it goes that direction and surpasses it, greatly enhances his profits, as this makes sure that he is not whiplashed. If the price momentum limit of a "X" number of pips is not exceeded, Mr X knows that the momentum is not strong enough to give him his profits, and he allows that signal to pass. This reduces his risk substantially, and sets him up for massive profits.

Most popular currencies are capable of large swings, swings that are explosive and are sharp several times a month, and when you adopt a price momentum method, you are well placed to capture these explosive price movements and reap massive profits.

There is of course a need to set a stop loss, because no trading system is foolproof. But when you do utilise a price momentum trading system, you will readily find forex trading to be largely profitable.

It is so profitable that Mr X adopts the same principles in trading stocks as well, and with similar results.

Indeed, trading price momentum can be your Forex Cash Cow Strategy. If you desire to see large profits in your trading, make price momentum a part of your trading arsenal. With the risk control limits in place, you can be like Mr X, raking in the profits consistently, month after month without a losing year.

To discover powerful professional trading secrets to help you create a 5 figure income trading forex in the comfort of your home, visit the author's website at

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Forex Trading - The Day Trading Myth(s)

There is a whole mythology surrounding day trading. Numerous myths have sprung up around it. Some myth busting needs to be done. :-)

1) There is a trade (or more than one) every day. No. There isn't. If you try to trade like that, you are going to have problems. It's called over-trading. The spread will eat you alive. You're trying to trade like a broker without the advantage of being spread positive.

2) You're always flat at the end of the day. Not true. This relates to the first point. If you try to get in and out quickly, you won't let the market give you anything. But it doesn't matter if the market gives you anything or not, the broker is going to take his share one way or another. You will (in terms of your account balance) bleed to death.

3) It's easier than other kinds of trading. Really? I think the real meaning of this is it's easier to sell day trading courses than other kinds of courses. Remember the old line about a sucker being born every minute (they're actually being born faster now). It's still true.

4) The market is the same on all time frames. They would have you believe that things happen on the five-minute chart just like they do on the daily chart, just the daily chart is slower. Not so. The market is much more random on the faster time frames. More randomness, means it's harder to discern what is really going on. And that means it's a recipe for being separated from your money.

Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".

Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide

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Forex Trading - Scale Trading

Scale trading is a method of trading that was originally developed for commodity traders. In it's most basic form, you buy a commodity as the price sinks. You do this because you know the price of corn, oil, wheat, live cattle, etc can't go to zero. These are real products that the masses need.

Then as the price rebounds, the futures contracts are sold off at prices slightly higher than when they were bought. If the price dips before all contracts can be sold, then more are bought with the profits of the ones that have already been sold.

That in a nutshell is how scale trading is done in futures. One of the most important keys to this method of trading is simply making sure that you don't run out of capital. You are going to let the price run against you. If you don't properly prepare ahead of time, you could be out all your trading capital.

Just like commodities, we know that currency prices will not get to zero (unless the currency becomes totally worthless, and believe me, if a currency like the dollar or euro becomes worthless, you will have much bigger problems than the fact that the currency itself is worth nothing!)

To effectively scale trade currencies, you need to find the major resistance points in the market. By major I mean MAJOR. You are going to treat these points as the zero line. Then from where ever the price is now get the difference between the price and your zero line (major resistance).

That is the distance you have to cover with your trading capital. Divide it into equal parts so that you won't run out of capital even if you have to buy all the way down.

The as the price dips, you buy. As it surges back up, you sell taking your profits.

Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".

Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide

Forex Trading Systems - Thinking of Buying One? Then Look For This

I read a lot of material on forex trading systems and the great copy offering me huge profits for $100 or so, sounds great!

Then when I come to buy the system I look for one thing and one thing only to see if it?s worth me parting with my money.

Its obvious but most forex system buyers don?t think to ask the obvious its:

The real time audited track record from the vendor.

After all if they make claims about how great their system is shouldn?t they be trading it and shouldn?t they have some proof it makes money?

Of course they should!

In most cases however with forex trading systems all you get is a hypothetical track record at best, or a load of vague claims without substantiation.

A hypothetical track record means absolutely nothing.

Let?s define exactly what this means:

It means the person had all the closing data in hindsight and can simply make the profit and loss whatever they want it to be.

You never see one that loses money.

Let?s face it, if we are doing a track record knowing the closing prices anyone can make money as they know what the prices did.

My 10 year old boy can do that!

There are some good forex trading systems out there and the best way to get one that is reputable is to get a trader who puts his money where his mouth is and trades his own system.

Would you take driving lessons from someone who had not driven before?

Of course you wouldn?t!

Use the same rule in trading if the vendor doesn?t have the confidence to trade his own system why should you?

Don?t fall for the hype

Fact is, there are many forex trading systems sold by vendors without track records and they know their systems don?t work and that?s why they don?t trade.

Of course, they make money from greedy and foolish people who fall for the copy.

Vendor wins you lose ? Simple.
People will say the fact that a froex trading system just because it has made money in the past does not mean it will make money in the future and of course this is true, but I Like the fact the person selling at least has shown profit and has the confidence to trade.

My view is never trade a system without a real time track record of at least two years.


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Forex Trading - Forex as a Home Business

There is a learning curve with any business. Doesn't matter if you want to start some MLM program, do dropshipping, or trade forex.

However, forex for some reason seems to have a huge learning curve. No one knows for sure how many traders fail, but estimates are around 90% to 95%. That may be a little on the high side, however, it does illustrate that you need to really know what you are getting into.

Another disadvantage of forex as a home business is the start up capital. One of the biggest reasons that new traders fail is not having enough capital to see them through the rough spots.

However, the negatives aside, there are some very intriguing things about forex trading. For example, there are no customers.

Sure, customers are the lifeblood of commerce. But as a trader, you don't have customers. All the headaches associated with them don't exist.

Second, down turns in the economy have no effect on you. You trade currencies from all around the world. You don't care if it's trending up or down. It really doesn't matter. You can profit at all times.

So, yes you can be totally autonomous. Just remember what I mentioned at the beginning. The learning curve is steep. You need to have plenty of capital. Trying to trade this market with just a few hundred dollars isn't going to work.

Brokers love people who try to trade like that. If you open an account with just several hundred dollars, they will consider that money already theirs. Sufficient startup capital is very important.

Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".

Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide