Forex Trading- Who wants to be a millionaire?

By Forex Trading

We all want to make money from trading, and we all want to make millions from the stock market of the forex market. However it is a well know fact that over 90% of traders will in fact go broke and not become successful. So if we are to look at who does become successful there is a group of people that tend to become more successful than others.

There is a group of individuals who tend to make the better traders and their non mathematicians or College educated, they have a skill that anyone can actually learn and their very successful. The group of individuals I am referring to are...

Professional card players who are great at Blackjack and poker and the exact same skills you need in these games are the ones you need in Forex before we explain why lets dispel one of the greatest myths about Forex Trading:

One reason for this is if you watch all great card players, they will all have one common trait, which is patience. They also realize that they cannot win every hand, and as traders we cannot win every trade. If we understand this we are increasing our chances of success as a trader.

We also must realize there is more trading days to come, as there is more cards to be dealt. So if we miss a trade, don't trade for trades sake.

Forex Trading is Complicated

To enjoy Forex trading achiever does not take you have a college education or have a complex Forex trading strategy or knowledge of maths and the reason is simple - Forex trading is simple and if you get a system to Complicated it will break in the ever changing brutal world of Forex Trading. Also as humans we like to complicate things and we believe that if they are complicated, then we are smarter therefore it makes us feel better. Quiet often though simple things will make us a lot of money. This can be also looked at with trading strategies, keep them simple.

Mathematics doesn't aid, because markets don't move to certainties, you are only trading with odds and probabilities and that's why card players are so great at Forex trading.

Here are the reasons card players make such great Forex traders.

1. They are Patient

They wait for the right hand and only play when the odds are in their favour. Contrast this with the bulk of Forex traders who are always in the market or trying losing strategies like scalping. In Forex Trading you don't get rewarded for trading often, you get rewarded for being right.

2. The Ability to Fold

A fabulous card player will pass hands by when the betting odds are non in his favour and he is also happy to fold when in a hand, if he doesn't think he will win. He keeps his losses tight and he doesn't mind dealing them, as he knows his time will follow.

Most Forex traders on the opposite hand simply can't do this and run losses or get disappointed, as their emotions get involved.

3. Courage at the right Time

The fabulous card player knows when a great hand comes up, he needs to maximize his potential and will milk as much money from it as he can. They are prepared to bet huge amounts and hold on with discipline and win.

Contrast this with the average Forex trader who banks his profit early or bets 2% and thinks he is going to make a lot of money. In Forex trading, you need to hold and profit from long term trends and have enough riding on them to make a great profit.

4. discipline discipline discipline!

You have heard about how serious it is in Forex Trading and it is to take loss after loss as the market hurts your ego and makes you look stupid is hard. Most traders cant do - Professional card players know it's the key to success and are mentally prepared to do this and know they will hit a home run.

Keep it Simple.

Forex trading is simple and always has been and the huge difference between winners and losers is the correct to keep losses small and bet big amounts when the time is right.

That's why card players often become multimillionaire traders - there not interested in ego, being clever or Complex - but being able to make money and that's why this group enjoy Forex trading success.

Now that we have the patience and are ready to trade we need to find the Best Forex Broker which broker has most of the aces? Well visit us at CFD FX Report and we can show you who we recommend. Or you can email us at support@cfdfxreport.com

Happy Trading - 23200

About the Author:

CFD FX REPORT is the forex report and cfd report that traders need. We help our members with stock market education, finding a forex broker, finding a cfd broker. If your not using the best your costing yourself money!

The Essentials of technical Analysis: Part II

By Jack Haddad

Charting:

The time frame used for forming a chart depends on the compression of the data: intraday, daily, weekly, monthly, quarterly, or annual data. Traders usually concentrate on charts made up of daily and intraday data to forecast shorterm price movements.

The shorter the time frame and the less compressed data is, the more detail that is available. While long on detail, short term charts can be volatile and contain a lot of noise. Large sudden price movements, wide high-low ranges and price gaps can effect volatility, which can distort the overall picture. Long term charts care good for analyzing the large picture to get a broad perspective of the historical price action. Once the general picture is analyzed, a daily chart can be used to zoom in on the last few months. Four of the most popular methods of displaying price data are by the following charts: line bar, candlestick, and point & figure. The line chart is one of the simplest charts. It is formed by plotting one price point, usually the close. For that matter, I don't favor them because I personally consider the open, low, and high to be as important as the close in technical analysis. However, at times, only closing data are available for certain indices, thinly traded stocks and intraday prices. Bar charts are perhaps the most popular charting method. The high, low, and close are required to form the price plot for each period of a bar chart. The high and low are represented by the top and bottom of the vertical bar and the close is the short horizontal line crossing the vertical bar. On a daily chart, each bar represents the high, low, and close for a particular day. Weekly charts would have a bar for each week based on Friday's close and the high and low for that week. Bar charts can be effective for displaying a large amount of data.

Using candlesticks, 200 data points can take up a lot of room and look cluttered. Line charts show less clutter, but do not offer as much detail (no high-low range). The individual bars that make up the bar chart are relatively skinny, which allows users the ability to fit more bars before the chart gets cluttered. If you're not interested in the opening price, bar charts are an ideal method for analyzing the close relative to the high and low. In addition, bar charts that include the open will tend to get cluttered quicker. If you're interested in the opening price, candlestick charts probably offer a better alternative. The beauty of Point & Figure charts is their simplicity. Little or no price movement is deemed irrelevant and therefore not duplicated on the chart. Only price movements that exceed specified levels are recorded. This focus on price movement makes it easier to identify support and resistance levels, bullish breakouts and bearish breakdowns. Contrary to this methodology, Point & Figure charts are based solely on price movement and do not take time into consideration. The topic on candlestick charting is broad and beyond the scope of this article. This method of charting originated in Japan over 300 years ago, and have become quite popular in recent years. For a candlestick chart, the open, high, low, and close are all required. A daily candlestick is based on the open price, the intraday high and low, and the close. A weekly candlestick is based on Monday's open, the weekly high-low range, and Friday's close.

Trendlines:

Trendlines are an important tool in technical analysis for both trend identification and confirmation. The general rule in technical analysis is that it takes two points to draw a trendline and the third point confirms the validity. An up trendline is formed by connecting two of more low points. The second low must be higher than the first for the line to have a positive slope.

Up trendlines act as support and indicate that net-demand (demand less supply) is increasing even as the price rises. A downtrend is formed by connecting two or more high points. The second high must be lower than the first for the line to have a negative slope. Down trendlines act as a resistance and indicate that net-supply is increasing even as the price declines. - 23200

About the Author:

Dr. Jack Haddad, MD, MBA has been professionally trading the stock market since 1997 and had an annualized return of 39.4%. Dr. Haddad has recently launched MD Capital Management, an Investment Fund with Charles Schwab. The fund utilizes option hedging techniques to generate returns while minimizing risks. For more info, visit Jack's online group: MD Capital Management.

Smart Choices in Investments During the Crisis

By Rick Amorey

The economy is in a crisis, and as it has been said countless times before, it will get worse before recovery can happen. With that said, now is not a good time to lose your head; even though the financial situation has problems, it is still functioning. Panic is useless and you don't need to stash money away under your mattress.

Make wise decisions with your money in these times of trouble, instead. It's a frightening thing to lose the funds you have saved over a long period of time; but to keep it locked away in a vault is just the same thing, really. Careful decisions are needed to keep you from burning out during the recession, but remember to make decisions. There's a light at the end of the tunnel, and you can only get to it by moving forward.

So make that stock investment that you've been thinking about, or purchase those bonds that you've been eyeing. As long as you have thought about it, and you consulted a qualified broker regarding the decision, then you should be fine. Just don't make rash judgments, and contemplate it as thoroughly as any other investment you may decide to make.

I have made mention of consulting a stock broker. Nowadays, you can place stock orders through the Internet, and before you do, make sure to do a background check on anyone who will be handling your funds. Is s/he really with the brokerage firm? Does the brokerage firm have a legitimate license to operate? Make sure of everything and make sure Boiler Room firms don't pull a fast one.

Put that money to good use. Stagnant assets are really not assets at all, and they will eventually become liabilities as time goes by and they depreciate in value. When consumers begin to spend again, and the economy picks up, everything will slowly recover. For now, make sure to make the best decision in investing. - 23200

About the Author:

Do not fall for get-rich-quick schemes that are rampant on the Internet! With Emini Trading as your guide, you will learn a sound, well-built plan to slowly but consistently earn more and more with trading. Be a part of the Emini Trading System now!

How To Place Stop Losses?

By Hass67

The intra day forex market is full of noise that it becomes difficult for new traders to understand where to put the stop loss. There is so much noise in the forex markets in the short run that prices tend to jump 10-20 pips for no apparent reason.

The noise in the intraday market keeps on frustrating new day traders. They constantly find their stop losses being tripped even when the rates are going in the anticipated direction.

A static 10-20 pip stop loss is an arbitrary choice many traders make. Many new traders also use Trailing Stop Loss. Place your trailing stop loss too close and you will find your stop hit too early. Place it too far and you will have to forgo potential profits if the price retraces.

The actual reality is this that many professional forex traders do use stop loss but mostly place it on their computers making it invisible from their brokers. A better method to place a stop loss is by using a dynamic level that changes as the market rate changes.

Stop hunting is something the brokers are continuously doing. If a broker finds many stop losses at a particular price level on his price feed; he can easily trip them using a momentary blip in the price. You cant even complain. The momentary spike happened due to a sudden large transaction in the market.

Do you know this many professional forex traders only use a stop loss in their mind. They plan entry/exit for each position. Keep on monitoring it changing, the stop loss in their mind as the rate fluctuates. When they reach the desired outcome, they close the position. With experience, you will also learn to do the same.

Dynamic stop losses can be easily placed using Moving Averages, Bollinger Bands, SARs etc. Using a dynamic stop loss is a good way to manage your risk while letting the currency markets do what it wants.

With more experience, you will learn that placing fixed stop losses actually harms more. Rather than helping, using a fixed stop loss can hurt you more emotionally, psychologically and profit wise.

You should not try to trade before or after a major economic news release. You should not try to place stop loss close to or at round numbers. And you should also not try to trade in times of thin liquidity in the currency markets.

Stop hunting is something that you should know. Many forex brokers pry on new traders and keep on tripping their stop losses terming it market noise. - 23200

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in investing; stock and forex trading. Discover a revolutionary new broker buster Forex Robot. Learn Forex Trading!

Learning How To Make the Best Stock Pick

By Zachary Riff

When it comes to the theory, online stock trading and making the best stock pick is easy to learn. Even beginners with no background in finance can do it. Learning how to trade online is easier nowadays, because of the many sites that offer trading services and applications that enable beginners like you to know how to trade stocks. Online stock firms are your best bets for learn the tools for making the best stock pick on the lot.

Searching for Sites - Start by surfing for an online brokerage firm that offers start-up accounts that are easy to use and understand. There are many sites that offer turnkey applications and solutions for beginners like you to learn quickly about making the best stock pick. So choose one that you're most comfortable with when you sign up. Many sites will also show the steps and ways for you to manage your stock and keep track of your stock investments. That way, not only are you learning something new, you'll be able to guarantee your investments yourself, and make the bst stock pick you want.

These sites also offer online stock services to aid stock trading neophytes who want to make the best stock pick. Many online brokerage sites offer real-time stock quotes so you can stay informed of the current trends and shifts in the stock market. Other financial and market online news sites may also offer information about the stock market, and specifics stocks and options you may be looking to buy.

Being Informed - To be on the safe side, try searching for sites that offer the best ways for you to get firsthand information from the market. When making stock decisions and determining the best stock pick, key information about the trading is your edge to buying or selling stock. Asides from online stock trading sites, there are also sites that keep track of the various stock markets all over the world and provide information about the best stock pick, new stocks, and other developments, to professional stock traders, brokerage firms and non-professionals like yourself.

Online stock brokerage firms can provide you with information on stock pick developments, stock quote data, and other stock trading updates. These information may be delivered in delayed or real-time or real-time formats. Getting real-time stock information is a requirement if you're interested in making the best stock pick. On the other hand, delayed stock quotes (that can be "delayed" from ten minutes to twenty-four hours) like after hours stock quote reports are often used for stock analysis and market projections.

These sites' reports can also include information on stock performance, as well as trading speculations and other news that may influence the value of your stock during the next trading day, week, or even month. You can also use these information in developing your own stock trading strategy, while earning the experience to make the best stock pick.

How It's Different - However, trading stocks online is not as instantaneous as it is on the floor. The lag time from the moment you make the best stock pick of your choice and elicit a buy offer for it, till that offered is closed, twelve or even twenty-four hours, may have elapsed. Thus, if the stock you're interested moves rapidly, your best stock pick could be the worst on the floor. This is because, the Internet cannot duplicate the market hours.

Be sure to keep a pulse on what's happening to your stock trading and investments so you can make the necessary adjustments. Keeping updated with the latest stock information is the best lesson to learn about online stock trading and making the best stock pick. - 23200

About the Author:

Get tips on where to make the best stock pick! Practice stock trading online now.