New Forex Trading Strategy

Monday, October 5, 2009

Best Forex Trading Without A Doubt

By Chris Green

As a trader you shouldn't settle for anything but the best forex trading you can do. With so many strategies available sometimes it can be a little difficult to chose where to start. Be sure when looking for strategies to add to your skill set that you test them out one by one until you find one that works for you. Depending on the strategy it can take anywhere from a few days to a few weeks to test it out completely.

What is the best forex trading strategy? This would be dependent on many factors such as: How much time do you have to put into this method? How long until you should expect some results? If you don't see yourself getting immediate results, be patient. It can take anywhere from a few days to a few weeks to properly test out a method and get accurate results. Is this method repeatable? In order to make a method good, it has to be repeatable. Repeating and making profitable trades is what it is all about.

The best forex trading would be dependent on the trader and their preference of trading. There are many different styles of trading available such as: scalping, trade timing, interest rates and volatility, the bond market and currency pairs, etc. With so many options on what method of trading to do, one can find them self in a position trying to figure out which one suits them. One of the most difficult aspects of forex is finding out the method that works for you. Once you find out your niche method, the profits become easier.

Constantly wondering what is the best forex trading method is what happens to most new traders. There is so much information out there that it constantly keeps you in a questioning loop. Well stop to wandering and start learning the scalping method. The most popular method today and continues to climb with traders joining in on a daily basis. Scalping is quick short trades lasting from seconds up to a minute with minimal trading account risk.

If you still find yourself wondering what the best forex trading is, then you need to spend time testing out and learning scalping trading. Whether you are just starting out in forex or you are a long time trader, there is something that can substantially help your trading. Need that edge that will put you past the rest, and help you achieve your success and goals? Look no further. If you want to be the best and demand only the best, you need to check out one of the best kept secrets to forex scalping and take lead! Don't be a failing statistic, take action today and blow the competition away! - 23305

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Basics on Investing In Penny Stock That Matters

By Malcolm Torren

What's a penny stock market? How does it operate and why do some people talk about penny shares going up and down? Who are these so called stock brokers? Two words should be enough to give you a brief idea. These are because of investments and profits. The stock exchange is a public center where company stocks and shares are being sold and bought everyday. People keep on investing in penny stock trading daily because there is money to be made.

Everyday, shares sold in the market rise and fall. While every investor's goal is to earn good hefty profit, there will always be lost investments and gain at the end of the day. Some investors own penny stocks in several small cap companies. They do this to increase their probability of profit. They could lose in one deal but gained a great amount of income from another buy.

It's a good challenge to invest in penny stock companies. If you're new to this business, check this outline:

- Some facts about investing in penny stock - Common penny stocks are traded between one dollar and five dollars per share. These shares are not traded frequently. Information is usually scarce in this arena. Penny stocks are usually hyped and are more exposed to media press releases. These stocks are usually difficult to accurately price. While it is true that penny stocks are not easy to sell, investors still believe in investing in penny stock trading because of its huge potential leverage.

- Signs of fraud - It is commonly know to investors that penny shares are prone to fraud. This is mainly caused by the lack of information and inaccurate pricing. There are some ways to determine if a penny stock or the stock broker is reliable of not. Here are some of them:

1. When a stock broker claims about his successful business without any documents to support it;

2. When the media over-exaggerates it, making it sound too good to be true;

3. Sales strategies that talks about huge companies today that started out as penny stocks;

- Brokers and Advisers - These firms are your best friends in the business. They can do a lot for your investments for a commission. Stock brokerage firms possess the stock market intelligence to level up your confidence. So when investing in penny stock trade, consider getting a broker. You've seen how major stock exchanges like NYSE, AMEX, and NASDAQ work. You just can't do it alone.

- Penny stock tips - Learn, learn, and learn. Your assumption must also include the risk of investment loss whether in part or in whole. Research and analyze the trends. Know the best stocks available. Knowing all these things may still not be enough. The stock market is a very fast paced business environment. You must be extremely alert if possible if you decide on investing in penny stock trading. There is actually no guarantee. At the end of the day, what counts most is your decision. And that is always based on how much you know and understand it. - 23305

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Automated Expert Advisors (EAs) Are They Worth Considering?

By Ash Naeck

If you are familiar with Forex, I bet this is one of those questions that got your brain juices running.

At the start of my trading career, I spent countless hours looking for what I believe would be a perfect Expert Advisor. One with small draw-downs, good returns and that could make consistent profit in any market conditions. To cut this story short I had set myself for a never ending quest. The word "holy-grail" simply does not exist in the Forex world and it took me a lot of time and a large amount of wasted cash to realize this fact.

Why use Expert Advisors?

Below are some of the main reasons why traders are attracted to Automated Expert Advisors:

- No stress

- Less emotion

- More time to relax

- Emotion free

- Doesn't require constant monitoring

- No need for experience

- Improve trading system

As a trader, those are the benefits you will be exposed to having an Expert Advisor trading on auto-pilot. Those are great features indeed but not so great when you take into account the negative side of it. The fact is that more that often Expert Advisors do not deliver on their original promise leaving your trading capital in ruin.

There are thousands of automated Forex providers on the net nowadays. This number is increasing day by day and funnily enough they all seem to have insane winning rate some even with a 100% success rate (hmmm). The common sales pitches used by those providers are:

- Make a killing trading with this robot

- No experience needed- start making money in minutes

- Make a daily $500 on autopilot

- Plug in and make money in a matter of minutes

If half of the above were true I would be sitting on a nice beach as we speak enjoying the sun and sipping on a cocktail, however, here I am sharing with you my experiences about automated expert advisors. Systems that promise to make you thousands overnight or 500%+ return per month are simply B.S. You are more likely to lose than actually make money.

If you are reading this article then consider yourself as one of the lucky ones. Do not get me wrong and am definitely not bragging here, I am simply sharing with you the experience I have had, personally, over those 5 years of trading. I am one of the few who will tell you that 98%+ of the Expert Advisors available on the net simply do not work. If they did work don't you think those major financial corporations would use those systems instead of relying on their FX traders?

The fact is that banks and the big institutions rely heavily on their currency traders to take advantage of the Forex market. They understand that the currency market is way too unpredictable and volatile to allow a robot to be in control. Market conditions change all the time and the only way to adapt to those changes is to have a human mind in control. A robot for instance cannot bend the rules and thus does not cope well if conditions of market changes violently.

Forex robots are many a time designed my mathematicians or engineers who believe they cracked the code to Forex trading. Well no offence to them but if they have already cracked the code, why am I still not profitable. You see the nature of the Forex market is such that changes in market conditions cannot be predicted. This is due to news, catastrophes, political changes etc Do you believe those robots can take all those changes into account?

Here are some of the points to take into account when investing in a Forex Robot:

- Who developed the system? (make sure he/she is a well-known Forex trader with substantial experience in Forex trading)

- How long has the system been in use? (at least 2 years)

- How long has the system been in operation?(2+ years)

- What is the maximum risk exposure?

- Maximum draw-down.

If all the above questions check out okay then you got yourself a winner.

I spent a lot of money on different Expert Advisors over the many years, and it is fair to say that I lost more money than I made. I nearly gave up on all those worthless expert advisors until the day I was introduced to a product designed by a guy named Ashkan Bolour.

I knew nothing about Ashkan Bolour at this point. I researched the net for more information and learnt that he was a highly successful money manager who was well respected in the Forex world. He had featured in many trading books and had become quite an authority in the foreign exchange arena. I decided to try his product after seeing the nice monthly returns he had on his live accounts.

Well the results were quite amazing. It was not a system making 500% or even 100% return each month but it was making some very consistent profits with small draw-downs. If ever you are looking for a proven system backed by consistent profit made on live accounts, Ashkan Bolour's system, the FXprofit Mountain is a must. - 23305

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US Dollar (Part I)

By Ahmad Hassam

It is important for the currency traders to have a good grasp of the general economic characteristics of the most commonly traded currencies. US Dollar is the most heavily traded currency in the global economy.

Traders need to also know the difference between the expected and the actual data. Some currencies tend to track commodity prices while others may move in complete contrast.

The correlation between the currency markets and news is very important. News or data that is in line with the expectations has less of an impact on currency movements than unexpected news or data. Therefore short term traders need to closely monitor the expectation of the currency markets.

United States is the worlds leading economy. US GDP is approximately three times the size of Japan, five times the size of Germany and seven times the size of UK. The US economy is now a service oriented economy with almost 80% of GDP coming from real estate, transportation, finance, health care and business services.

United States capital markets are the most efficient markets in the world. United States has the worlds most liquid and deep equity and fixed income markets in the world. The manufacturing sector is still formidable and US Dollar is particularly sensitive to the development within the sector. Cheap capital formation is what drives any company or any economy and United States capital markets help in cheap capital formation.

Foreign Direct Investments (FDI) into the US is equal to almost 40% of the total net inflows for United States. Investors from all over the world purchase US assets due to their liquidity and safety. The import and export volume of US also dwarfs the countries. This maybe due to the sheer size of US as true import and export represent only 12% of the GDP.

United States is running a large CA deficit for more than a decade now. US economy is facing the paradox of the twin deficits. One is the Budget Deficit and the other is the Current Account (CA) deficit.

The large CA deficit makes the US Dollar highly sensitive to changes in the capital flows. US need to attract a few billion dollars of capital inflows daily in order to prevent the decline in the value of US Dollar.

United States is the trading partner of many countries across the globe. US is also the member of the World Trade Organization (WTO). US trade is equal to roughly 20% of the world trade. A weaker US Dollar will help boost US exports whereas a stronger US Dollar makes the US exports expensive and US imports cheap.

Leading export markets for United States are: Canada, Mexico, Japan, EU and UK. Leading import sources for United States are: Canada, China, Mexico, Japan and EU. The growth and political stability in countries that are leading export markets for US are important. For example, should Canada growth slow; its demand for US exports will fall that will have a ripple effect on US growth. - 23305

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Euro Currency Profile (Part I)

By Ahmad Hassam

The European Union consists of fifteen member countries that include France, Germany, Greece, Ireland, Italy, Luxembourg, Austria, Belgium, Denmark, Finland, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.

Only 12 common currency countries out of these above 15 countries constitute the European Monetary Union (EMU). These 12 countries share a single monetary policy dictated by the European Central Bank (ECB). All these above countries share the common currency Euro except Denmark, Sweden and United Kingdom.

After the United States, EMU is the worlds second largest economic powerhouse. EMU has a highly developed and efficient fixed income, equity and the futures market. This makes EMU the second most attractive investment market for domestic and international investors. Many hedge funds are based in EU countries.

Historically US assets have had solid returns. As a result, United States absorbs something like 70% of the total foreign savings. In the past, EMU had difficulty in attracting foreign direct investment or large capital inflows. The primary reason was the United States.

However, with the introduction of the Euro and the EMU beginning to incorporate even more members in Eastern Europe, the Euros importance is expected to increase. The capital flows to Europe is expected to increase.

With foreign central banks expected to diversify their Euro reserve holdings even further, demand for Euro is expected to continue rising. EMU is in fact a trade driven and a capital flow driven economy. Trade is very important to the national economies within EMU.

EU exports comprise almost 20% of the world trade. While EU accounts for only 17% of the world imports! Because of the size of the EMUs trade with the rest of the world, it has significant power in the international trade arena. Unlike United States, EMU does not have large trade deficit or surplus.

The formation of EU allows individual member countries to group as one entity and negotiates on an equal playing field with the United States. United States is the largest trading partner of EU. International clout is one of the primary reasons in the formation of EU.

Leading import sources for EU are United States, Japan, China, Switzerland and Russia. Leading export markets for EU are the United States, Switzerland, Japan, Poland and China.

EU is primarily a service oriented economy. Services account for more than 70% of the EU economy while manufacturing, mining and utilities account for around 20% of the EU economy. Large numbers of EU based companies concentrate their research, design, innovation and marketing part of the activity in EU while outsourcing most of their manufacturing to Asia.

Most international trade transactions involve the British Pound, the Japanese Yen and the US Dollar. It is important for most of the countries to hold large amounts of reserve currencies to reduce exchange rate risk and transaction costs. - 23305

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