Emotions Don't Work, Discipline Does, in Forex Trading

By Richard U. Olson

If you are involved in the investment world, you probably know that there are two things that make most people do whatever it is that they do, whatever moves they make, in the investment market. Those two things are fear and greed - two of the strongest and most basic of all human emotions. Sometimes, fear can turn into panic. Sometimes, greed can turn into extreme, foolish risk taking. Successful Forex traders are not governed by these strong emotions, however.

You see, successful Forex traders use managed Forex trading. They make use of tried and true Forex trading strategies like those based on mathematical algorithms. They might make use of a Forex auto-trading system and trading software. And, some of them might even make use of a Forex expert advisor to guide them in making buy, sell, or stop-loss decisions or setting their trading parameters.

But whatever may be the case, Forex traders who are making money are not merely acting - or reacting - on emotions. This does not mean that they are unfeeling. These traders still don't like taking losses and they do desire to make more and more money (hence, that makes them "greedy"). However, whatever they feel about a momentary loss or a stroke of greater profits than they had anticipated is subsumed by them. In other words, if their feelings would cause them to do something that is not in their investment trading plan, they ignore their feelings.

They ignore any type of feeling that may be influenced by various things such as the way their day is going, unfortunate financial news headlines and any internal voices telling them insistently to buy or sell on a trading platform beforehand, if these types of feeling may cause them to waver from their prepared Forex trading strategy.

It's discipline which is the key to Forex trading success. When you are immersed in your emotions as a trader, you are about to drown. You become one of the "sheeple". Your fear causes you to take profits or put up a stop-loss when you shouldn't, so you miss great profit opportunities. Your greed causes "irrational exuberance" and you risk too much so that you take heavy losses when you should have had good profits instead.

Forex trading discipline is based on real history and those tried and true trading strategies and principles.

You see, successful traders are actually taking advantage of the sheeple. They profit on movements in the Forex market that result from other people's irrational exuberance or panic.

Sticking to your investment strategy in the Forex market is perhaps most easily accomplished by using automated Forex trading software. This software will use mathematical modeling to predict market movements based on past behavior and can keep you focus on your investment goals without the risks posed by emotionally based investing. - 23200

About the Author:

Richard U. Olson recommends the incredibly accurate Forex Autopilot System that he uses to make consistent profits in the Forex markets. Grab his FREE e-course on Forex Trading Tips to realize your financial dreams.

Basics of Stocks PartII: What does Investing on Stocks mean?

By Mara Hernandez-Capili

Stocks are another form of investment that can make your money work for you or in other words, your money can grow in itself without you practically doing anything. In this way, you can focus on building your other assets and earning other forms of income. This article is written to provide you with the basics of investing on stocks.

What does investing on stocks mean and how is it different from investing your money in the bank? Investing on stocks is when you buy a share or a stock from a publicly listed company. This action will make you part-owner of that company and enjoy exclusive privileges such as voting rights. Your money or capital will have the freedom to increase when the company enjoys higher profits at a given time. However, you may also lose a certain percentage or your money may have the possibility of not earning anything if the company suffers losses.

Investing on stocks is different from investing your cash at the bank because of several things, first is because: banks have taxes payment and little annual percentage returns and is affected by the market inflation. The argument is always on this presentation: banks to maximum security but lower to no returns, stocks to greater risks but higher percentage returns. There is little to no risk of losing your money that is invested in a bank.

Investing in stocks left some people think twice about it since you allow your investment to operate on involved risks. The greater returns you are aiming at for your investment, the higher the alleged risks involved. It is advisable to play it safe first especially if youre a beginner and practice on investing with a capital where you are most comfortable with.

Whether you have plans on investing in stocks now is the right time to do so when you are still young and have a lot of time to recover in case you lost. - 23200

About the Author:

Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial I.Q. by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today.

A Look at the Forex Exchange Market vs the Stock Market

By Gugu Martini

The FX market is likewise known as the international foreign exchange marketplace. Dealing can occur between any two countries who have unique types of currency they lay the foundation for the FX market as well as the background for the the dealing in this market The FX market is in excess of thirty years of age, established in the 1970's and is one that is not based on any one business or investing in any one business concern, but the trading and selling of systems of currency.

There is a difference between the forex market and the stock market is the vast trading that occurs there, an amazing two trillion dollars or more can be traded each day A much higher amount than the money that is traded on the stock market of any one country One of the only market that involves one countries financial institutions as well as government institutions and those that are comparable to another countries institutions

The items that are bought and sold on the fx market are easily liquidated this means that they can be turned into cash quickly if it is not already cash From one countries currency to another the availability of cash in the forex market is something that can be arranged for any investor regardless of what country they are in.

The biggest difference the stock market and the forex market is that the latter is global or worldwide. The stock market is something that takes place only within a country due to dealing with the businesses and products in that country but the forex market takes that a step further to include any country.

The business day for the stock market typically which typically follow the traditional business day so the stock market is closed on bank holidays and weekends. Whereas the FX market is open 24 hours a day because countries from all over the world are involved in trading selling and buying in a variety of time zones. When one market opens just as markets are closing in other countries so this is the continual method of how the forex market trading occurs.

The stock market in any country will be based on the currency of that country so the French francs, and the French stock market, so the Pakistani rupee and that Pakistan stock market or the United States stock market and the dollar. compared to the fx market where you are involved in multiple countries and multiple currencies. There are references to many different currencies which is the biggest difference between the stock market and the foreign exchange market. - 23200

About the Author:

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Forex Options Strategy

By Hass67

Remember George Soros; the one who had broken the British pound and brought the Bank of England to its knees in the early 90s. George Soros made cool $1 Billion profit in a matter of few days by betting on the fact that the British pound was overvalued and Bank of England could not sustain its price for long.

He purchased $10 Billion of puts and calls forex options by gambling all the assets under his control as collateral on a single bet that in the end made history.

His knowledge of the currency markets was perfect. He was sure that his conviction that the Bank of England cannot sustain the overpriced British pound would come off right. Soon other currency speculators also joined. A huge selling pressure on British pound developed. Bank of England could not sustain the selling pressure too long and in a matter of 24 hours had to take British pound out of the European Monetary System and let it float freely.

The value of British pound plunged. George Soros gamble paid off. He is now famously called the Man who broke the Bank of England.

Currency markets are huge. Everyday roughly $3 trillion gets transacted in the forex markets. There are many methods, the traders can use for profiting from the volatility in the currency markets.

You as a retail forex trader can trade any one of these contracts: spot, futures and options. Two more contracts are traded in the currency markets primarily for hedging by large institutions like banks, corporations and hedge funds. These are forwards and swap contracts.

Lets discuss trading forex options. Options are derivative products that give you the right to buy or cell or certain underlying asset at a predetermined price known as a strike price before or on a certain date known as the exercise date.

The underlying asset in case of the forex options is the currency. Now, forex options give you the right but not the obligation to purchase/sell a certain amount of a particular currency on payment of a premium.

How do you profit from forex options? When the currency price is above/below the strike price, you can exercise your option to buy/sell that currency by buying/selling the currency at the strike price. The difference between the strike price and the currency market price is your profit.

However, in case, the currency market price is below/above the strike price of the forex options; you need not exercise your right to buy/sell. By not exercising the forex options contract, you only lose the premium.

There is a very good Non Directional Forex Options Trading Strategy that does not depend on the direction of the market. In other words you dont need to predict whether the currency price is going to go up or down and make your profit regardless.

This method is guaranteed to give you profits with an ROI of 30-50%. Try this method. It is risk free. - 23200

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in online trading especially options and forex trading. Read more about Forex Options Non Direction Trading System. Discover a revolutionary new Forex Robot

Forex Megadroid? What is That?

By Dan Patterson

Are you searching for a Forex predicting robot? One that is engineered to perform amazingly accurate? The solution may be in the Forex Megadroid. What it does is simply astounding. It is simply a carp-shoot to accurately predict the immediate future within two to four hours using only your human mind. But with Forex Megadroid, you will become like a Forex prophet who profits by predicting the near future forex trends an uncanny 95.82% accuracy.

How can this help you? Think about it, there is huge money to be made trading foriegn exchange rates. This takes the fear out of the equation. Currencies are always fluctuating. As a Forex trader, knowing when those fluctuations are going up or down can make a world of difference in your trading. It is reported on average that this robot has turned every dollar invested in 2009 into three dollars. That is an amazing 200% profit!

Because the forex market is so volatile, you need a program that can reliably predict the profitable trades before they occur. What is so innovative about Forex Megadroid is that it can analyze the Forex market in any kind of financial environment using secret computer-based calulations called RCTPA or "Reverse Correlated Time and Price Analysis." Yes I know... that's a mouthful you been to say that acronym, but the mathematics are solid and produce income for those that use this groundbreaking Forex robot.

However, please bear in mind that the developers of Forex Megadroid, John Grace and Albert Perry, are not just some nerdy mathmaticians who wear horned-rimmed glasses, out-of-style cloths, and pocket protectors. No, quite the contrary... These innovators have 38 years of real world experience in forex trading. They know through the school of hard knocks what are the common indicators of up or down forex movements. It was based upon this experience that the mechanisms of the forex prediction robot called Forex Megadroid was conceptualized.

Foex Trading on Auto-Pilot - Powerful Stuff!

Who doesn't like to have something that is a totally automatic and hands-free money making machine? People all over the world look for fool-proof systems like this to base their investing on. The future is now. If you want to get started using the forex megadroid robot, please visit http://www.forexmegadroidreview.com/ - 23200

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