Know These Trading Secrets

By Ahmad Hassam

Trading is not investing. Trading is speculating. Trading can be challenging. Speculating is defined as taking business risk in the hope of profiting from market fluctuations. Successful speculating requires predicting outcomes and analyzing different market situations. It also requires putting your money on the side of the trade on which you think the market is going to go up or down.

If you are a trader, you should appreciate the fact that if you apply the correct techniques for analyzing trades, manage your money and protect your trading account, you can be wrong 70 percent of the time and still be a successful trader. How is that possible? It is only possible by entering a trade where the risk/reward ratio is les than1/3.

Opportunity keeps on shifting from one market to another. For example, forex and gold markets are really hot while stocks are down. Gold prices are going up. Those who entered the trend at the right time and ride the trend for maximum profits will make a lot of money in the gold markets. Right now countries, institutional investors, retail investors, in fact almost everyone is running and buying gold as a hedge against turmoil in the global markets.

Many hedge funds had made a lot of money by investing in crude oil futures in the year 2008. Right now oil prices are down due to the reduced demand in the global markets, this situation may continue for some months or some years but suddenly you will find that crude oil futures have become a great investment opportunity again.

Oil prices will again go up in a few years time as the global economy recovers and demand for oil increases. In trading it is the timing that is of essence. Timing for entering the market and the timing for exiting the market!

Successful trading requires mastering a strategy that enables you to trade multiple markets and multiple time frames. A lot of people make the mistake of focusing only on one market. In reality all the markets are interlinked. If something happens in one market, you will find the repercussions in the other markets. Many people end up spending time on only one market.

Many traders get stuck up with one market. They do testing, development, put on a million indicators, go and trade live. But then what almost happens is that the market starts to go sideways or the opportunity shifts to another market. While they do everything they can while spending all kinds of time trying to figure out one market and one timeframe.

There were so many stocks just a few years ago that were incredible to trade that either dont exist anymore or would not trade successfully today. So you really have to have the ability to be able to adopt the market conditions and not waste your time to really master one market which is critical.

Many gurus will teach you that you really need to learn the ins and outs of one market. They will tell you to focus only on one market and then stick with it. But the problem with that philosophy is that opportunity keeps on shifting from one market to another. Mastering different markets is counterintuitive. Always remember a good trader always follows where the money goes. In other words, follow where the opportunity goes. - 23223

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know The Trend Forex System. Learn Forex Trading!

Selecting A Forex Trading System

By Bart Icles

The foreign exchange market grows more and more attractive as each trading passes. Investors are not only attracted by the sizeable profits that it can offer, they also want to know if they can really cope with the changing trends of the market. To achieve a more manageable trading experience, investors - both beginners and seasoned traders alike - use forex trading systems. It can be tricky to select a forex trading system that would best suit your needs so it is important to take note of some basics.

In the forex world, investors cannot simply tell what lies ahead of them and those who do not do something about this end up losing money and they eventually give up on forex trading. However, a wise investor would not totally give up on trading if he or she loses money. Instead, a wise investor would just take a step back and review the situation at hand and then go back to trading again. In a situation such as this, it helps to have a forex trading system that can help you get off on the right foot. Doing so, you will be able to save some money for yourself and hopefully become the next most profitable forex trader.

Different kinds of forex trading systems are available and they are based on the different kinds of traders that exist in the forex world. There are three types of forex traders in the currency market. The short term trader, also known as the scalper, likes to open and close a trade in just a matter of minutes. This type of trader takes advantage of the smaller movements in forex rates and large amounts of leverage. The long term trader looks forward to holding positions for months and months on end, and sometimes even years by making decisions based on long-term factors. In between these two are the medium term traders who hold positions for a couple of days by taking advantage of technical situations that appear to be more opportunistic.

To determine which forex trading system would best work for you, it helps to know what kind of trader you would want to become. Short term traders can lose large amounts of capital in just a matter of minutes but they are also able to realize profits faster. Medium term traders can safely hold their positions but they can easily miss out on big opportunities. Long term investors reap in the largest amounts of profit but they also require large investments to cover losses brought about by unpredictable movements.

In choosing a forex trading system, choose one that can be adjusted to your trading personality and your needs. Do not choose a system based on the needs of other traders because this simply will not help. Choose one that will allow you to be more creative on your side of the market, one that can help you achieve your goals in your forex career. - 23223

About the Author:

A free forex education starts with a desire to learn and a drive to become a great trader. The best forex education takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Getting the Right Forex Trading Broker

By Jane MacRae

If you have been in the forex game, you will understand that a right forex trading broker can really be your life saver. Despite that there are so many brokers out there you can choose from, to find the right one is not always easy. Here are some tips to help you go about.

* Does The Broker Offers a Free Demo Account?

Many online forex brokers offer free demo or test accounts to new and potential members. Take advantage of them.

Not only are demo accounts a great introduction for those new to forex trading, it will also let you take a look at the trading platform used by that broker. You want an interface that is easy to learn and understand, and that you will be comfortable to use.

* Ask for References

A good broker will not mind giving you references. You need to be able to talk to other people who have used his services, and find out whether or not they are happy with their experiences.

If a broker refuses to give you references, you should probably steer clear.

* Examine the Minimum Deposit Requirement to Open an Account

All forex brokers set their own minimum deposit requirements when you open an account with them.

If the amount of minimum deposit asked by one broker is higher than what you are comfortable with, simply search for one that requires a lower minimum. There are options out there for every investor, no matter how much or how little they have to invest.

* Check the Broker's Credentials

Although there is no centralised, governing body to regulate the whole forex market over the world, the business practices of each forex broker is regulated by institutions in the countries where they are located.

For example, a broker located in the US should be registered as a Futures Commission Merchant (or FCM) with the Commodity Futures Trading Commission (or CFTC). They should also be registered with the National Futures Association (or NFA).

* Be Clear About All Charges

As a general rule, cheaper isn't always the best.

Compared to their competition, some brokers may charge less for their services. However, they may try to make up for the difference with hidden fees that you may not even be aware you are being charged.

So, before you engage any broker, be sure to ask about possible hidden fees, read the fine print, and learn as much about them as you can.

It can be an inevitable (and sometimes painful) experience for most forex players to find a right forex trading broker. With the tips given in this article, you should at least know what to look at. Remember, though, you can still make mistakes but don't get frustrated. Sometimes, we just grow out of try and error. - 23223

About the Author:

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Commodities and the Global Macro Economic Picture for Traders

By Bruce Soros

While most people think of commodity traders as just a bunch of guys in Chicago the truth is that many different types of investors participate in the commodity markets. Obviously we have floor traders but we also have several types of upstairs traders.

The largest group of traders are the upstairs traders, to differentiate them from the floor traders. Inside of the upstairs traders that largest group is that of the systematic long term trend followers. The next biggest group of commodity speculators are the global macro traders.

Next up are the global macro traders. They are probably the second largest group of commodity traders as they look to trade disparate and uncorrelated asset classes, as well as get a better picture of global imbalances.

One of the easiest to comprehend examples is that of the oil markets. When oil is climbing Mt Everest like Carl Lewis in the Olympics then you know that there will be some huge dislocations in the economy. Oil and oil service companies will be climbing like no ones business but other companies like airlines and trucking companies will be getting whacked like a rat in a mafia movie.

One area that also gets a ton of attention is that of precious metals. Precious metals have a small piece of the industrial machine but mostly are used as an inflation hedge and as an asset backed alternative currency as more and more of the fiat currencies look long term bankrupt.

Another huge piece of the economic pie is that of industrial commodities. Industrial commodities comprising aluminum, zinc, lead, tin, nickel, iron, copper, etc are used in everything for everything. If you drive it, plug it into the wall, or live in it then you have industrial metals all around you. And you only need to have accounts with access to three exchanged to trade 95% of all this.

Agricultural commodities are the last major group of commodities and the ones that tend to get the shortest thrift. This is a mistake as the worlds economies continue to grow and more and more people become more prosperous they eat better and better. This coupled with the fact that there is less water on earth and you have the potential for a large increase in the price of food worldwide.

Obviously commodities are huge part of the global economy. If you are not using and monitoring them you are missing out on some of the biggest puzzle pieces out there. If you are a global macro trader you need to be monitoring all the commodity complexes. - 23223

About the Author:

If you need actionable trading ideas then check out The Macro Trader It is a weekly global macro investing advisory publication with frequent intra-week updates for time-critical analysis and actionable trading ideas.

Professional Forex Trading - How To Get To That Level

By James Oleander

Maybe you've been thinking of becoming a professional trader. However, perhaps also you've been held back because you think there are some qualifications you'd have to have that you haven't attained. You may be surprised to know that there are no credentials you must have to be a forex trader. This is a wide open field and one in which to a large extent you determine your level of success.

A professional trader needs to be qualified or have business contacts that can help him or her get started; otherwise a job at a financial powerhouse is out of the question. The situation is different, however, if you work for yourself. Then all you need is your own computer, the ability to get online, and some money to start trading with.

Many forex traders work in the comfort of their own home, for themselves, and are successful. While I do have special qualifications that are helpful (a Finance and Accounting education), this type of knowledge is superfluous to being a forex trader and did not influence my success at all. You can be just as successful without a lot of finance or accounting knowledge.

Still, you're probably asking what skills you do need to begin this career. This is a very good question.

As for generalized knowledge, it's always good to have at least a rudimentary understand of the math, arithmetic, perhaps also some statistics. Those skills will help you analyze things faster and save you valuable time you can spend analyzing other aspects of the market. Aside from those things, you are pretty much set to begin your foreign exchange trading.

You have to have a high level of motivation and be unwilling to fail. This mindset will help you get over the rocky parts of your path to forex trading success. Forex trading requires a time when you will be testing the waters, which includes dealing with inevitable losses. It will take you a while before you learn the game and can start making more money than you lose. Until you start making money, you will have to rely on your desire to succeed to keep you focused on your goal.

This is a great career if you have the motivation because you can't be too old or too young. You can be a man or a woman, as it's expertise and the ability to generate profit that will be respected, not gender. Along with motivation, you have to be focused--eyes on the prize--and you do have to be disciplined.

For one thing, anyone who works out of their home has to be to get the job done and not get distracted by household or social tasks. But it's also true that you're working with money and you must be disciplined to keep working and not get too disappointed or too excited. You will develop your own way of trading, but the attributes you bring to the system are probably just as important, if not more so. - 23223

About the Author:

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