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Saturday, January 2, 2010

The Art of Investment Trading

By Georg Scheffer

You may be having great success with your short term trading portfolio and have become comfortable with investment strategies. Now you may wonder if you should apply your successful methods to your superannuation fund. Can you treat your super fund and your trading fund the same? What about calculating stops?

Stuart: I appreciate where that person is coming from, but to me they are so different, two completely different aspects of investment trading. Probably the biggest difference between the two is the amount of money in both. I have a lot more money in my super fund than my day to day trading fund. The purpose of both those funds is so different.

If you were to suffer extreme losses in your investment trading fund, you wouldn't be happy, but it shouldn't ruin you financially. However, when it comes to your super fund, the last thing you ever want to do is lose it because it holds your financial future. You should take a conservative and defense approach to managing it. The amount of money in your investment accounts plays a big role in how you handle the accounts. While the basic rules of investing apply such as cutting losses and running profits, you must adapt your approach to protect your account and reap the maximum benefits.

I want my super fund to grow and grow so when, by law, I'm able to tap into it, it's all there and will set me up.

The same thinking applies to your stops. You want to nip your losses and let profits run but you approach the two investment methods very differently. The way you apply stops to your trading fund just wouldn't work for your super fund.

David: Are you using the same method of calculation on your super fund as your CFD trading fund? Obviously the width is going to be different, but are you going to be using the same method of calculation?

Again, the two accounts are handled differently. Short term trading does well using a technical stop but you should use a volatility base for your super fund. They need different methods for both to be profitable. It is important you do not lock into a single method of investing. You need to be adaptable in order to maximize profits and meet your individual goals. - 23200

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Are Dallas Custom Homes Right For You

By Harry Backbacksac

When it comes to Dallas custom homes most people find it hard to afford the materials that are needed. This can be quite hard for many families because in today's world it is very hard to find a decent job and to save up the money. It seems as if every time someone saves up some money then there is always an unexpected expense that comes up.

It does not matter if you go through a bank or a credit union, you should always make sure that they offer the lowest financing charge around. You do not want to be paying a large amount of interest if you do not need to. This interest money that you save can be used for supplies that you may need on your home.

You will need to make sure that you have the money not only for the property but for the home and all the supplies that are needed. Not only will you need supplies for building the foundation of your home. You will also need supplies for wiring, plumbing and you may need to put a new septic tank or sewer in if your property does not already have one.

When it comes to picking out property you should always make sure that you get property that already has a septic system with it so that you do not have to pay more money to get one put in. You should always make sure you are not buying wetlands and that the zoning laws in that area will allow you to build in that particular area.

To get a project financed you will have to have your plans set out to show to the company that you are trying to go through. You need to be able to show them the foundation, framing, detailed walls, roofing, electrical and plumbing. If you find that geometrical recommendations are what your county wants then you will have to get plans for those to show them to your lending agency.

If you are working with a real estate agent, they can be very helpful in providing lenders numbers and locations. It does not matter if you use a bank or credit union because this is your choice and it all depends on who will allow you to get a loan through them.

If you are building this on your own you will have to have all of these things done. If you are having someone else do it you will still have to have most of it done only you wont have to have a building permit, the company that is building for you will have to have one. Make sure this is what you want before you go ahead and do it so that you wont have to worry about extra expenses if you decide you do not want it later on. - 23200

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Successful Forex Traders - What's Needed to Become One of Them?

By James B. Addison

Forex traders, nowadays, aren't required to work for the world's top financial centers. With an Internet connection, the contemporary trader has the option of doing so from the luxury of his or her own home, or while basking in the warm sun on a Florida beach in the winter, or from a snow-capped mountain top in the Swiss Alps.

People who decide they want to trade in the forex market can make a good part-time income. Taken a step further, they can also make a full-time income from it. But let's back up for a minute and take a look at what the forex market is and how it works.

A foreign exchange trader makes deals with foreign currencies, obviously. A forex trader sells one currency that is declining in value for another that is increasing in value. Two currencies (a currency pair) are involved in the trades. If a trader wants to buy dollars, then he or she has to have another currency to exchange for them.

For the inexperienced trader, it's best to work with just one currency pair at a time. Most people start with the EUR/USD market, the euro versus the US dollar. These two constitute the largest forex market. Information abounds for this market; it also tends to have lower costs and, considering forex's volatility, is reasonably stable.

Volatility in the forex market means that prices rise and fall sharply, creating high risk. It's the high risk that causes the potential for loss. You must be able to absorb a loss without it affecting you bottom line. If not, you'll quickly go broke. Some losses are going to happen; there is nothing that can be done about it. Managing your money in such a way that you don't risk too much on any one trade is paramount. Fortunately, your broker can use stop losses for you if the price goes in a certain way against you. The aim is not to have no losses, but to make certain that your profits outweigh your losses so that in the end you have a net profit.

You'll need a computer with a high-speed Internet connection whenever you want make a trade. You'll also need to set aside the time required to learn a profitable trading system, and then on the actual trading. It takes some self-control, but you'll need to lock yourself in a room for at least two hours a day for study if you want to become a competitive trader. Don't try to trade while working at your day job. You'll never be able to give it enough attention to do well. The same goes for using the computer from home with kids crawling in and out of your lap wanting to play. This can't be stressed enough: Learning the forex market requires your full attention.

If you're one who prefers a solid investment with predictable low returns, then you shouldn't become a currency trader. Forex traders typically enjoy the risk and the thrill of this fast-paced market.

It's a big help if the new trader is focused on goals and not easily swayed by emotions. You shouldn't let a fear of loss or a dream of instant wealth divert you from your strategy. It's also a good idea to keep abreast of financial news in your country as well as the world's major powers, because the happenings within a country will have a definite affect of the forex market. With these characteristics and a solid trading system in place, a beginning forex trader can see great gain from financial investment. - 23200

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One Way To Choose A Forex Signal Provider - Let's Examine Draw Downs

By Tom K Kearns

So, you are in the market for a third party signal provider. The maximum draw down of the trader is your first step in the selection process. To define the maximum draw down - this is the gap between the ultimate amount of loss between the absolute top and the absolute bottom. Included in this number is also the open positions, but not included is the account margin necessary to keep you away from a margin call. How much is too much of a draw down you may well ask. Of course, like many answers to many questions, it is - That depends. Many, many issues need to be examined when coming up with an answer to this very important question. It goes without saying that a person with an account in the high thousands of dollars can stand more of a draw down than a person with a much smaller account. So, that being said, what are some other things to consider?

Another thing to look at aside from the actual number is how that number came to be. If a trader has a draw down that is too high for you to tolerate but otherwise seems to trade well, you should look at how many positions he opens at a time. If that trader opens 5 trades on any given pair at a time you can instantly cut their historical draw down by 5. Limiting the # of open trades for a trader could drastically reduce the overall draw down.

Sometimes you will find a trader who has a great track record aside from one major meltdown where a single trade ran out of control for days unchecked. This will produce an abnormal draw down in relation to the trader's real ability. He may be the kind of guy who can't recognize when a trade has no chance of coming back to even. He may also be a guy who lost his internet connection at an inopportune time once or twice. Either way you can keep this trader from doing this to your account by setting your own stops for him. Just make sure that you only stop out his trades that are well out of a realistic trading range.

At this point, we are going to visit again our original question. Now that you have accomplished all you can to limit draw down, I will caution you by saying any amount over 35% of your total account equity is way overdoing it. If you let yourself become in a situation where a 50% plus loss is incurred, coming back from it would involve some extremely risky behavior. A 50% loss demands a 100% gain just to get back on the level.

When considering draw down you should also look at how much history is available on that trader. If he only has 3 weeks of history than chances are that his largest draw down is yet to come. If he has 50 or 100 weeks of history he has probably already hit some rough patches and you can get a better idea of how rough the rough patches are for that particular trader.

You must constantly monitor your traders on all of your accounts, whether live or demo. Should any draw down run rampant, you will need to reevaluate and possibly delete the trader from your active portfolio. - 23200

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Obtaining Your Advanced Cash Settlement Online

By Tiger Claire

There are times when something goes awry thus we're forced to file a claim in court versus an insurance company or other entities that have caused us grave distress and damage due to their unwillingness to participate, among other things.

While we are fighting for this claim in court however, our financial situation might not improve until such time that we've won our case. It is during these moments that we're at our most vulnerable state and this is the ripe opportunity for the companies to retaliate. What happens then is that they initiate an out-of-court settlement that is far less than our claim should we win the case.

This is where Advance Cash Settlement corporations come into play.

WHAT ARE ADVANCED CASH SETTLEMENTS?

In brief, advanced cash settlements are the amount of money given by specific financing corporations to plaintiffs awaiting the decision on their lawsuit claims. The money we obtain may then help us go on with our case; and likewise continue on with our lives without fear of where to obtain the cash to pay for things such as bills and other obligations.

There are funding companies that give advance cash settlements that render the plaintiff free from any obligation should the case lose in court. But basically, there is an interest rate of up to five percent; compounded monthly, attached to the total amount of the obtained advanced cash settlement. The total amount is due only after the lawsuit has been won and money given to the plaintiff.

ADVANCE CASH SETTLEMENT COMPANIES

If you're searching for the right funding institution to help you get an advance cash settlement; there are several of these that you can locate on the internet. Online, you can learn more about getting an advance cash settlement, interest percentages plus other duties that might be needed from you once you agree to their Terms and Conditions.

It is best to meticulously study all your alternatives first prior to picking one that you deem would best suit your interests. While your need for money may be urgent, consenting to something you do not fully understand might put you in bigger financial woes than the one you are in at the moment.

Nonetheless, once you have made your choice, you can readily apply for advanced cash settlement over the internet and processing is actually done faster online. - 23200

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