Saturday, July 05, 2008

The Best Informaiton on dangers of forex trading

The Though Side Of Forex Trading



You are sitting in front of your PC. Your heart is racing, sweat is starting to pearl on your forehead and adrenalin is pulsating through your veins at the speed of white light. You have live trade on the very popular Forex Market and your emotions are going mad.

If you ever wanted to feel like pregnant woman ( no offense intended) then this just the way to do it. A magnitude of pips and candles and fibs is glaring at you from the computer screen. Your money is gangling around in the air with your perspiration and the only thing that you can do is to have faith that you made the right move with you're trade.

This is all very scary and exhilarating at the same time. Some times trading the Forex Market should be compared to teasing a hungry lion with an open cage gate. Sometimes it is just downright tough. Why you ask? Because your emotions are out of control and that makes you scared money and scared money always lose. Why would you lose your money when you are scared because you will jump out with you winning trades with small gains and stay in with your loser hoping that the market will not hit you stop and take your money.

How can you prevent your emotions form ruining your trading career? First off never trade money you can not afford to lose, you can not use money that you saved up for your retirement or study money for college, or any money that if it is gone you are in deep... trouble. That will make your trading very difficult, now you need a plan of attack to trade the market if you do not have a plan do not live trade use a demo account to build your strategy. Demo trade until you make constant winning trades and see your demo account grow then you are starting to get your emotions under control. The most important rule of them all never trade with out a STOP other wise you're out of control. If your system tells you that you must take this lost never move your stop it will only worsen your losing trade.

What must I have in place before I start trading live? You must have a plan of attack and have the strength and discipline to stay with your Plan. If you lose, you have to go back and check if you followed you strategy if not to not trade again until you fix it. Every strategy will lose sometimes and you'll have to learn that losing it part of trading. Learn form every lost you take, by writing down the fault why you lost, so next you will not make the same mistake again.

Trading is like exercise, jogging you need to practice, to be come emotionally free to be in control when you are trading. When you have your emotions under control then you will succeed and make yourself a great big bundle of money.

Good luck on building your winning strategy!!!!

About the Author


Thank you for taking the time to read my article for tips and strategy's visit: http://www.Forexpippirate.com

Forex, A Week In Review - 3/20/06 To 3/24/06



We like to wrap up every week with a review of the previous week's trading. So, here goes.


Cable gave us a run for our money last week. We were able to end the week up anywhere from 100 to 200 Pips based on personal exit strategies, so we are not complaining, but the daily trading range has been very tight and very unpredictable making big profit targets was almost impossible.


It was important this week to work your trades, we were able to nail 3 out of 5 entries but if you were not watching and working an exit strategy, all but one trade could have gone against you.


If you were not using good trade management strategy you would not have closed the trade around 9:00 AM (before you were actually in the trade) and it would have gone against you for your stop loss. Remember, not taking a trade is a position, often time the best position.


For those of you watching our daily newsletters, we had another good week. We had three winning trades, although only one was for our full target, and more importantly no losing trades.


With that said we have nothing to complain about, going 3 for 3 with two days with no trades, remember taking no trade is as much a position as taking a trade.


And no losing days means we did not give back any of our gains and can add the full gain into our account for compounding. This is what the week looked like;

3/20/06


Short @ 1.7570, Stop @ 1.7615, Target @ 1.7520 & 1.7490


Did not fill either trade but had plenty of reason to get out of trade around 1.7530 on three separate occasions during the day, and there was no reason to not have protected your trade by at the very least moving your stop loss to break even. For 0 to 40, Pips on both trades.


3/21/06


Short @ 1.7540, Stop @ 1.7580, Target @ 1.7500 & 1.7440 - We filled the first trade for 40 and the second trade we closed at 1.7470 for 70 Pips.



3/22/06


Short @ 1.7490, Stop @ 1.7530, Target @ 1.7450 & 1.7410 - We filled both trades we an early exit at 1.7460 for 30 & 30 Pips.



3/23/06


Short @ 1.7460, Stop @ 1.7500, Target 1.7420 & 1.7380 - Missed entry by 11 Pips.


3/24/06


Short @ 1.7370, Stop @ 1.7420, Target @ 1.7310 & 1.7290 - Missed entry by 18 Pips. Closed both trades around 9:00 Am due to reversal indicator. Saved a 100 Pip loss.

About the Author


Eddie has trained traders for 10 years. His Forex trading course, or Forex seminar, is the only Forex Trading Education you need to make money Forex trading.

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What is Forex Trading?



What is Forex Trading?


FOREX, (FOReign EXchange market) or FX, is an international exchange market where stocks and shares are not traded, but currency. The return for the investor is not in the value of the currency per se, but rather the relative exchange value of one currency against another currency.


Therefore, Forex trading is always expressed in pairs such as Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).


By simultaneously buying and selling pairs of currencies, the investor, or speculator, hopes to profit from a favorable exchange rate change. Unlike the American stock exchanges, the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ), Forex trading is more predictable than stocks.


One strategy that the Forex investor uses is a technique that stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. In other words, an investor simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before. Another strategy for the Forex investor is to analyze the country of the currency's economy, political situation, and other possible rumors. The investor can also anticipate such things as political unrest or change that will also have an effect on the market.


Forex is the largest financial market in the world handling between 1.5 and 1.9 trillion US dollars a day. The combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors. Because of the the liquidity of the market, unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.


What are the risks?


Because of the sheer scale of the Forex Market, it ensures greater price stability and greater leverage. With built-in protection in the form of automatic limits for buying and selling, safety margins, and other risk protection measures, the likelihood of ending up in the red even when the Forex market is volatile is infinitely reduced. Furthermore, because of its' size, it is near impossible for a single investor to significantly affect the price of a major currency.


However, all Forex traders should note that the market is one of the most liquid around and subject to strong currency trends. While leverage figures of 100:1 are often times quoted, without adequate risk protection in place the pendulum swing between profit and loss can be dramatic. Even veteran Forex traders can be caught out from time to time and take large hits. With this type of investor speculation, the golden rule must be: don't risk more than what you can afford to lose.



About the Author


Richard Stranberg is a contributing author to the Forex Trading Guide. Visit the Forex Trading Guide at http://www.forex-trading-guide.us

How The Matrix Will Boost Your Forex Profits?



Perhaps you remember one of the most impactful movies of our time, the Matrix?
Morpheus believed totally in Neo to the point where he almost sacrificed his life to save him. Yet Neo did not believe in himself at the beginning, he was most uncertain about whether he was the One or not. So when he went to see the Oracle, she told him that being the One is like being in love, nobody tells you that you are in love, you just know it. The Oracle pointed to a sign hanging on the door: "Know Thyself"...


Still Neo didn't believe in himself but when agent Smith captured Morpheus and a member of his crew suggested to pull the plug so the agents of the Matrix won't get access to Zion, something in Neo changed and he began to believe...


A little further down the path of the One, Neo "accomplished miracles" because he learned how to believe in himself fully and completely. And remember Neo had a mentor who believed in him beyond any doubt and who taught him how to use his mind to defeat the Matrix and its dangerous agents. Neo's mentor, Morpheus, showed him the path and helped him empower his mind, yet Neo walked the path to his own success after he started believing in himself and mastered his own mind.


Perhaps you were wondering, yes and what has this to do with trading the Forex market?



"Know Thyself"


Forex trading or any trading for that matter is a mind game in the first place. Some people spend a lot of time and efforts perfecting certain trading skills and knowledge like reading the charts and data, entry and exit skills but any normally intelligent person can learn these skills, they are the easiest part of the trading game. They are no doubt necessary tools to your Forex success but they don't make the biggest difference between a really successful Forex trader and the one who is not successful. So what does make the difference?


Let's ask the question: what is your goal in trading the Forex? It is to make money. Period!
Surely while you're making the money and great profits you can have fun too and you should but what you need are specific mental attitudes and strengths, that is if you want to be a successful Forex trader. These mental states are an asset that will help you in many other situations and contexts of your life.



As my Forex mentor told me, the major three mental and emotional frames of mind that characterize the majority of successful FOREX traders are:


1.Discipline & Passion
2.Confidence & Courage
3.Patience & Smart Persistence


We'll touch upon all three briefly to make it as clear as crystal to you so you succeed in the Forex market.


Like trading a Pair of Currencies these mental and emotional mindsets go hand in hand.



Discipline & Passion



Discipline, say the most successful Forex traders, is really important! It helps you be more effective in planning your trades and in sticking to the good plans you established before entering the trade. Always have an action plan for stop and limit levels for the trade before you enter it, your analysis should cover up the expected upside and downside.


Passion means commitment and love for what you do. It is your passion for something that keeps you going, improving, constantly learning (willing to buy excellent Forex courses from experienced and successful traders, remember Morpheus mentoring Neo) and persist beyond the ups and downs of the business. You need to know why you are trading the Forex because it is an awesome opportunity that you have to take, so develop a passion for it. Simply do what it takes to be successful, learn from the best.


A word of Caution: Never mistake your "Forex passion" for emotion that you might feel while trading the Forex, when trying to enter a trade without using clear and sound entry/exit indicators and rules.
Have fun, learn, and stay tuned for future developments and grow as a person in strength and character in "your Forex business" while remaining emotionally detached when you get in and out of a trade. If you do, you are bound to incredible success in the Forex trading business.



Confidence & Courage



Successful Forex traders believe in themselves and their abilities to learn and grow, to acquire more competence learning from a mentor.
There is no reality only perception, the Matrix can trick you but you can have your own special Matrix inside your mind that empowers you with an unwavering belief in yourself!


Have the confidence and courage to stick to your plan and stay with your rules even if others are doing the opposite. Keep your vision (end result) that you can make it in the Forex market in your mind until you are successful in it.


If you experience a situation where you know exactly how a currency pair will go and have a sound trading plan, go for it! Sometimes people fail to follow their own good plans because all sorts of emotions get in their way, emotions like greed and fear. Stay calm and act with confidence and courage otherwise your planning, analyzing and information gathering will be totally useless to you.


You become more competent when you educate yourself about the markets and learn from successful traders. Self develop: "Know Thyself", get into the habit of monitoring your emotions and questioning your limiting beliefs so that your mind works for you and not against you. Don't take things too personally, if you make a mistake then consider it to be valuable feedback so you become more successful, never a failure!



Patience & Smart Persistence



An Indian wisdom says: "Life is always right!" we say: "the market knows much better than you do!"


Learn to listen and read the signs the Forex market is giving you. Learn how to wait, observe and only enter a trade when it is the right time to do so, before you can reap the profits.


It can be hard to wait before your Forex trading screen and not jump into action but The successful FOREX trader will enter a trade according to the direction of the prevailing trend or will wait until a new trend shows up and establishes itself. The waiting ranges from a few hours to days or even weeks before a winning trend appears.


even if you day trade and are not a long-term or position trader, you still are well advised to keep impatience from ruining your profit chances.
Also be patient means you stick with winning trades. But be most impatient with losing trades.


Practice "Know Thyself" and continue learning your Forex trading from the best and we are sure you will be a successful Forex trader. You will be on the path of Neo, the One himself!



Karima Begag


P.S. Karima Begag is an Internet Entrepreneur with special interest and "passion" for Forex Trading and Knows it is a Life Time Opportunity to generate income for anyone who is willing to give it a chance. For outstanding Free Forex Information go here: http://www.forexprofitsecrets.com


This is only one of the many profit making lessons and winning tips taught at Forex Profit Secrets. To get instant access to a Free gem of Forex Freedom Course click here now: http://www.forexprofitsecrets.com

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