Friday, August 31, 2007

Forex Beginner Systems - A Step-By-Step Guide to Trading Profit

This forex beginner systems article is a comprehensive guide to the steps needed in devising a forex trading system as a beginner. Knowing which way to jump with all the information floating around can be a daunting proposition; so having a step-by-step guide by a successful experienced (and humble: lol) trader is obviously a great start. There aren't any in depth explanations here as the purpose is to highlight the areas which require further investigation, and in what order of importance. I have articles specific to each category on my website which I will link to at the bottom of the page. Anyhow, follow through with each of these steps and you will be well on the way to forex trading profit.

The main steps are:
1.) Get background information on what forex trading entails.
2.) Learn how to manage risk and size positions correctly.
3.) Find a strategy you are comfortable with.
4.) Test your strategy.
5.) Interpret the numbers.
6.) Find a broker.
7.) Rake in the cash!

First of all, with forex beginner systems, it is important to know just what you are getting into. Forex trading is just like any other business. You wouldn't go off and try to build houses without reading a book or getting some lessons now would you? Constructing systems is much the same. Without any knowledge of the market you are essentially building a "house of cards". You don't need a Phd in macro-economics, but a solid knowledge base will only aid in your trading decisions and help ease your mind throughout the entire process.

Risk Management:
The next thing to learn is how to manage risk and size positions. These factors should be the cornerstones of any system. In essence: you need to know how much to risk losing on each trade. People often make the mistake of ignoring this factor; that's why over 90% of traders fail. Think of it in terms of being a gambler or being a casino; we know who always wins right? Do your due diligence on risk management and position sizing and you will be well on the way to becoming one of the 10% of successful traders.

Once you understand the numbers a little better you can look at specific strategies to trade. Forex beginner systems should be quite simple. As with many other things; simple can also be very effective. I have found that trend trading and swing trading in particular can be very simple and also very effective. The main thing though, is that you feel comfortable trading a strategy. Psychology plays a large part in forex trading too, so having a simple yet effective strategy is often the best. It's a case of K.I.S.S. (keep it simple stupid!).

The next aspect of creating forex beginner systems is testing. Testing your system is all important in knowing if you will turn a profit or not. Don't "go off half cocked"; you may wind up with a "blown up" trading account. It's a step closer to being a "casino" and another step away from being a "gambler". To add further perspective; just imagine if boeing didn't test their planes before they used them..... Would you be getting on one? I didn't think so! It's much the same with trading; test your hypotheses and make sure they work.

Analyzing the results of these tests is the next thing to do. Anyone can see if a system will be relatively profitable from the results of testing. The hard part comes with understanding how to interpret the results and how they will effect your trading in real time. Analyzing the results and making necessary changes to your forex beginner systems will also likely make you substantially more profitable. There is no end to what can be done with statistics. Again let's look at our jet-plane analogy. From flying the plane we know it doesn't crash. But how much fuel per mile did it use? How much will we need to fly from our place to a nice island in the Maldives? How can we get their faster or without using as much fuel. You get it? Knowing how to get there is one thing; but getting there the cheapest and fastest way possible is harder.

Now it's time to find a broker to trade your forex beginner systems with. Brokers offer free trial accounts with play money to check out their wares. By all means take advantage of these offers. Also, you should be aware of some of the different types of brokers and the features they offer. This is important as well. Think of it as choosing to fly "Econo-miser" or "Champagne" airways.

Now you should be all geared up with some shiny new forex beginner systems if you have investigated all these things thoroughly. If you're still not sure, there is loads more information on my site and others. There are loads of people researching new ways to make money in the currency markets, so please, check the web regularly and see what else they have found. Some offer their information free (like me) and others charge for their info. Do not be too tight with the purse strings though; as one profitable trade can often see an item paid for many times over. Now off you go and rake in some of that cash!

The original article with links to all relevant articles can be viewed here

Joseph Ward is an experienced, successful currency trader. He teaches his simple, practical and profitable forex trading methods, for free, via his website Take a look at some articles, tutorials or reviews and start your journey to forex trading profit today for free!

Copyright 2007 Joseph Ward.
Permission is granted to reproduce this article online provided the article is not edited and the preceding links with this copyright notice is included in such reproduction.

My Experiences Trading Sugar Commodity Futures Contracts and Options

Sugar trading is romantic! Here's some valuable hints and kinks taken from actual trading experiences.

Sugar is a great market for beginning commodity traders. Sugar futures contracts require a small margin and rarely make extreme moves. Currently, an account margin of $1200 will control about $13,000 worth of sugar. (112,000 lbs at 12 cents per pound) A one cent move in sugar equates to $1120.

Brazil is now energy independent from its use of ethanol in the form of alcohol. Ethanol is derived from sugar. This has brought a great increase in the number of speculators and commercial hedgers trading in sugar futures and options. The volatility and liquidity generated is a positive by-product.

Sugar trades for only three hours a day, from 9am-12pm. What a great life to be an expert sugar trader! It's a fifteen hour work week.

Sugar has made several extreme moves over the last thirty-five years. The last big move to 18 cents a pound was last year. In the early 1980's sugar hit 44 cents a pound. In the early 1970's sugar hit 66 cents!

On the other side, sugar once got as low as 2.5 cents a pound. The whole 112,000 pound contract was worth only $2800! You could have taken delivery and warehoused it for a few years and sold it for 15 cents a pound or $16,800. (Or just kept rolling the contracts forward with no delivery) That's not a bad profit if you believed sugar was not going to be free. Multiply this times ten contracts and you are looking at over $160,000 on a $30,000 investment. There certainly is opportunity if one is willing to take on the risk.

During normal or quiet markets, options on sugar futures are usually cheap and you can buy a lot of time. Strategies are abundant for spreads, straddles, and strangles. Sugar makes lots of long-term patterns and formations. Wave analysis and swing trading works well for sugar when it's trending.

Some traders look for the possibility of "pyramiding" contracts when sugar is active. This is a risky technique used when the market is in an extended trend. A trader tries to keep adding futures positions using previous profits. Dont ever forget this is a double edge sword. If you add to positions, make sure to adjust catastrophic stops so that your losses are not out of control if the market reverses. If the market stops you out and moves in the other direction, dont be afraid to get back in if the trend is still intact. Sugar trends can last a lot longer then most expect.

Look to exit positions after big moves during the morning opening or near the close. Sugar futures tend to reverse after very large moves by gapping open the following day. Try not to keep big profits over the weekend thinking Monday morning will have a big follow through. You may want to lighten up on Friday right before the close.

If you feel nervous about holding onto big profits, my best advice and rule of thumb is to keep one-half of your position and sell one-half. This way you can never be more than one-half wrong, and one-half right. This is a form of "scaling out", which is a favorite technique of mine. Besides, after a climatic move the option prices are usually very inflated. The option premiums may actually decline on a flat opening Monday because the previous panic reaction wasn't justified.

Hurricane seasons are a time when the sugar market gets a lot of attention. There is always the possibility that the crop in some of the sugar growing areas could get blown away and damaged beyond recovery. This could happen, but is rare. Many traders buy options to cover this vulnerable period of time, looking to profit. Though over the long haul, more precise timing is required to cover the option premium expenses.

A great strategy for sugar is buying a call and selling another call at a higher strike price to cover some of the premium expenses. (spread) Also, you could buy a futures contract and buy a cheap put as protection. And finally, sell options in a trading range after a big move. This is a strategy used to capture inflated premiums for profitable erosion.

Sugar has long term "kick-in-the-pants" cycles that produce massive moves every eleven years or so. Keep an eye out for the next one.

Here's how I look for opportunities in the sugar markets: First I generate a TimeLine forecast that shows a strong move up or down in sugar. The TimeLine is based on time cycles and other preprogrammed patterns. I then determine if the move is expected to be choppy, trending, and for how long. This helps us focus on possible directional futures/option positions or writing options in a range, or even writing options with the trend.

Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strategies. In hindsight there's always a best strategy we could have used. Keep this is mind when narrowing down the choices. When finished, we want to have one or two potential trades to work with. We call the selected few, "high probability, low risk trades."

Remember there is more to planning a trade than just coming up with a forecast. The market may move as predicted but we can still lose by choosing the wrong trading vehicles. Pick the right vehicles and strategies that will allow us to stay in the market without excessive fear, but still carrying calculated risk.

We NEED to take on calculated risk or the market will not pay us for our services. In addition, the vehicle has to move far enough to make a profit without letting the expense of protection eat us up. Excessive protection (risk avoidance) can come in the form of option premiums, too close-in stop loss orders - and overdone, complex spread strategies. Matching a forecast to a strategy is an important skill to succeed in commodity trading.

Good Trading!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his market forecast TimeLine Trading charts and get his complete 44+ lesson, "Thomas Commodity Trading Course - all free." Main site:

Forex Scalping- A Key Market Factor You Must Know

Forex scalping requires a completely different mindset to other forms of day trading. Those who engage in Forex scalping normally make a number of trades a day taking somewhere between 5 to 10 pips from the market each time in many cases. Of course, the more trades that are made, the higher probability the scalper will have losses.

Hence the need to exercise discipline and not shoot at everything that moves. Look for only high probability trades. This however is easier said than done. That is why the following piece of information is critical in understanding market behavior from a Forex scalping point of view.

A Crucial Piece Of Information

The crucial piece of information we are referring to is this:

Somewhere between 60 - 80% of the time, the market is in consolidation.

This means that most of the time, the market is not making significant moves. It tends to range in a consolidation channel for hours at times before another significant move takes price to another level.

This market behavior pattern is ideal for Forex scalping once the trader fully understands it.

Develop Recognition Skills

Whenever the trader opens a chart, key support and resistance levels need to be identified. Previous highs and lows should jump out at the trader and be quickly recognized and identified.

To this end it helps to draw horizontal lines on the charting software to mark the top of a channel and the bottom of a channel on whichever time frame the trader is using.

The Key Forex Scalping Principle

The main principle that governs Forex scalping is the same principle that applies to all forms of day trading:

Sell The Rallies - Buy The Dips

Hence, when Forex scalping, the trader will look for ranges or consolidation channels where price is obviously moving (often within a 20, 30 or 40 pip range) and set an entry order to go long when price hits the bottom of the range, or an entry order to go short when price hits the top of the range.

There is always the possibility price will breakout at that point in which case it will be a losing trade. That's why it is important to maintain tight stops, perhaps no more than around 15 pips to keep the profit/loss ratio within reason.

Be Selective

To make Forex scalping trades higher probability it is important to select trades that have a number of elements going for them.

It is often not enough to just jump in on any range you see and enter an order to go long or short at the top or bottom of the range.

You want to look for ranges where the top or bottom coincides with other indicators. For example, the 200 EMA (Exponential Moving Average) is a very powerful indicator on the 4 hour, 1 hour, and 15 minute time frames. Seeing it is one of the most popular indicators of all time used by traders in the global market place, it pays to take notice of where price is in relation to the 200 EMA.

So if you see a trading range where the top or bottom also coincides with the 200 EMA on one of the higher time frames, zero in using the 5 minute chart, draw your horizontal lines to mark the range or consolidation channel, and choose a suitable order entry point. The 200 EMA provides a strong level of support or resistance, depending on which direction you are trading.

Likewise, if the top or bottom of the range is also lining up with a pivot level, or a Fibonacci retracement or extension level, you have added reasons to believe price is going to respect that level, at least for a while. You can then enter an order at the price point with reasonable certainty that you can grab 5 to 10 pips from the market, depending on the height or depth of the trading range.

Why Forex Scalping Methods Should Be Part Of Your Overall Strategy

This characteristic of market behavior, the fact price spends most of its time in trading ranges, makes Forex scalping a very profitable method once the trader has acquired experience and developed understanding and recognition skills.

Rather than waiting for the occasional significant price move, the trader who also has a Forex scalping strategy in his toolkit can utilize those long periods in the trading day when price doesn't go anywhere.

The powerful 200 EMA strategy - easy for newer traders:

How do you trade the non-farm payroll report? Read this:

For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:

Medical Uniforms Have Expanded to Include a Much Wider Range

Earlier whenever we pictured the medical professionals the image of white lab coats, gloves and scrubs formed in front of our eyes. Now gone are the days when the medical staff would easily fit into such stereotype images. The world of medical uniforms has undergone a revolutionary change and now the medical uniforms are easily available in a variety of designs, styles and colors. Made out of different materials, the uniforms have managed to bring about a complete image makeover for the professionals in the medical field. The internet has also managed to add to the options available within the range of medical uniforms and many online shops have come into existence to offer a wider choice to consumers.

Medical uniforms should be chosen with extreme care, as the people who wear it are responsible for handling patients and providing care to them for long durations at a stretch. The material used for making the uniforms should be comfortable so as to absorb sweat and any pungent smell that forms a common feature of any hospital or nursing home. Most medical uniforms are therefore made of cotton or poly-cotton materials. The traditional medical uniforms were usually buttoned and back-button ones but now the drawstring pants and pullover tops have changed the complete appearance of the uniforms. A medical staff also has the opportunity to wear formal yet trendy clothes, thereby doing away with the preconceived notion of the medical staff being drab and boring.

The online shops have managed to bring convenience to the desktop of consumers. Now, simply by clicking onto a website that offers medical uniforms, a customer can get a complete preview of the product and the cost attached to the purchase. Most reputed online stores do not charge any hidden costs or additional charges for shipping the product or for the timely delivery. Online shopping convenience makes it possible for the customer to get medical uniforms as per his or her requirements within a time limit of around two days in most cases. Also, as the online sites let the customer have a look at the design and style of the medical uniforms, there is no chance of the customer not liking the final product. The medical uniforms can now easily be chosen according to the preference of the customer who now has a much larger variety to choose from.

The ease of purchasing medical uniforms online is that a number of people could have a look at the uniforms without having to physically walk into a store. Purchasing uniforms in bulk for yourself and your colleagues may also get you an enviable bargain and a heavy discount on the best quality products. Separate divisions of the medical ward can select separate look and style of medical uniforms like the pediatric ward staff can have uniforms with cartoon characters drawn on it. The only point to be kept is mind when buying uniforms online is that the company should be legitimate and the return policies should be in place.

Mark Simpson has specialization in the business of online trading and medical uniforms are an area of special interest to him. To know more about medical uniforms nursing scrubs, medical scrubs, nursing shoes and other kinds of nursing uniforms visit

Forex Trading - Instantly Increase Your Profits With The 80 - 20 Rule

The 80 20 rule was not devised for Forex trading - however if you apply it in your trading, you'll instantly increase your profit potential. The rule is simple to understand and apply - and all Forex traders should use it.

So, what is the 80 20 rule, and why is it so powerful in terms of making Forex profits?

The Logic of the 80 20 Rule

In the nineteenth century, Vilfredo Pareto, an Italian philosopher, observed that a small section of the population held most of the money and power. He postulated that in most countries, 80% of the money and power was controlled by around 20% of the people. Therefore, 20% of the participants accounted for 80% of the results.

The 80 20 rule applies to many other areas of life - including Forex trading, and in simple terms, the key point to consider is this:

80% of your results will be generated by 20% of your efforts.

This also means that:

20% of your results will be generated by 80% of your efforts.

In Forex trading, its a fact that most traders make this critical error they trade too much - and try to force results by working too hard.

Heres what you need to do, to apply the 80 20 rule in Forex trading, and increase your results:

1. Cut out short term trading - like Forex day trading. In day trading, you trade frequently - but it simply doesnt work. This is because all short-term volatility is random - and you can never get the odds in your favor.

2. Only trade significant technical patterns - such as critical breaks of support and resistance, with your Forex trading system.

3. Risk more per trade on the good trades - up to 20% is OK. Remember, risk goes with reward - and you need to take meaningful calculated risks, when the odds are in your favor.

4. Dont diversify! Forex traders think this spreads risk, but all it does, is simply dilute profit.

In terms of your Forex trading strategy: Focusing on the above will make you more money but youll also reduce the effort you put in.

Shift your emphasis to long term trading - and only trade the best signals. By doing this, your workload - and the amount of time you need to spend on your Forex analysis will be reduced.

If you apply the 80 20 rule to your Forex trading in the above way, youll cut the effort you put in. Youll also increase the profits you make - and thats what all Forex traders want!

Cutting the Effort You Put In and Getting Bigger Rewards

Many people think that the more effort you put in, the better the results you obtain. This is true in many areas of life - but not Forex trading! Here you are paid for being right with your Forex trading signals - thats all.

Also, dont fall for the myth that the more you trade, the better your chance is of having Forex trading success. This is simply not true - because the big trades, with the best ratio of risk to reward dont come around that often.

Incorporate the 80 - 20 rule in your Forex trading strategy, and watch your profits soar.

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Commodity Trading Make Money Fast In 5 Simple Steps

This article is all about trading commodities for big profits and how to make money fast.

We will outline the best method and the best commodities to enable you to have big profit potential, so lets get started.

Commodity trading covers a variety of areas including currencies, stock indices, energies bonds and a variety of soft commodities.

1. Commodity Trading - Your method

Look at any chart of any commodity, you will see trends and it these trends you want to lock into and trade for profit.

The best way to do this is with a technical trading system and you should be looking to trade the longer term trends as these yield the biggest profits.

There are lots of good trading methods, but the most important point to keep in mind is you need to understand the method and why it will work and have confidence in it.

Many traders simply buy computer systems they dont understand, or try and follow an advisor or broker. If you do this you will probably lack confidence and when loses come you will deviate from the method.

The biggest attribute a trader can have is discipline.

You need to have it to apply your method. If you dont, you really dont have a method at all.

2. Commodity Trading Best markets to trade

There are two key factors in deciding what markets to trade and they are - Trending nature and liquidity.

While all commodities trend, some tend to offer better, more consistent trends than others. Market sectors that offer good reliable trends include Currencies, energies and interest rates and these are great for all traders.

They also offer high liquidity, which means trades can be entered and exited quickly, to lock in profits or liquidate losing trades.

Many commodities have low liquidity and erratic trading patterns and these should be avoided.

3. Commodity Trading Diversification

If you want to make money fast DONT diversify too much. Stick to one or a few areas only. Diversification dilutes profit potential. If you have confidence in your method dont diversify across to many sectors.

4. Money Management - Risk

If you want to make money fast then you need to take risks. Commodity trading offers great profit potential, but with reward goes risk - Its as simple as that.

On small accounts those below ($100,000) you have to risk more because you have small equity and your risk per trade needs to be higher.

If you have an account of $25,000 and you risk 2% (as many experts will tell you) you are risking $500.00. Chances are you will get stopped out a lot of the time and take a string of losses.

Many traders try so much to restrict risk; they end up creating it - As they are simply not taking enough of a risk to win.

When trying to build equity fast be selective in your trades and be prepared to risk up to 10% per trade.

5. Commodity Trading - Success has U in it!

If you want make money fast in commodity trading you need to take responsibility for your trades. Many losing traders blame everyone else the system they have market conditions the wife and many more.

However winning traders take responsibility they know that they can get systems and knowledge elsewhere but its up to them to apply the tools for profits.

To make money fast you need knowledge, a robust trading method you have confidence in, the discipline to apply it rigidly and the appetite to take calculated risks to reach your goals.

Approach commodity trading with the right attitude and you could make money fast and pile up big profits consistently.

For more FREE information

On commodity trading please visit our website and discover a commodity trading system with an outstanding record of success from a company doing business in the markets for over 25 years visit:

Commodity Trading Systems - Learn From a Trading Master and Boost Your Profit Potential!

Legendary trader W D Gann amassed a fortune of $50 million dollars in the first half of the last century, although he died in 1955, his commodity trading systems are still used today by traders all over the world.

Successful commodity trading systems have the ability take the emotion out of trading, liquidating losses quickly and spotting and holding the big longer-term trends and thats exactly what Ganns Commodity trading systems did.

Ganns Commodity Systems Track Record

Ganns commodity trading systems allowed him to make some stunning predictions and trading gains such as:

1. He predicted improvements in business in 1921 and the Bull Run in stocks.

2. 1928 he forecasted the end of the Bull Market in stocks a full year in advance of the 1929 crash. He then bought stocks in the Dow at an all time low in 1932.

3. In 1935, of 98 trades in cotton, grain, and rubber, 83 trades showed a profit. His percentage of profitable trades was often 90% or higher.

History Repeats Itself

Gann was a prolific writer and wrote extensively, outlining his thoughts on commodity trading systems in a series of books and courses. Some of his ideas were grounded in empirical studies, while others were more mystical in nature.

Ganns major contention was that certain laws governed not only the markets, but nature as well and were universal in scope. He believed that human psychology was constant and that this manifested itself in repeatable price patterns.

We cannot escape it (emotion) In the future it will cause another panic in stocks. When it comes both traders and investors will sell stocks, as usual, after it is too late or in the latter stages of a bear market

He was aware that human nature was constant and influenced the majority of traders.

Therefore, in order to make a success the trader must act in a way to overcome the weak points that have caused the ruin of others

For more information on trading psychology excellent books to read any by Jake Bernstein, Jesse Livermore, Larry Williams, Van Tharp and Jack Shwager and you will see why human nature repeats itself.

The Influence of Price and Time

One of the most important thoughts behind Ganns commodity trading systems was the concept of combining price and time.

Gann believed that crucial price movements happened when price and time converged. These points could indicate an important trend change was imminent. If on the other hand, price and time were not coordinated, or did not converge, time always held priority over price. Time was therefore considered by Gann as the ultimate indicator, because all of nature was governed by time.

In the "Wall Street Stock Selector" Gann said.

"Just remember one thing, whatever has happened in the past in the stock market and Wall Street will happen again. Advances in bull markets will come in the future, and panics will come in the future, just as they have in the past. This is the working out of a natural law ..." and, "It is action in one direction and reaction in the opposite direction. In order to make profits, you must learn to follow the trend and change when the trend changes."

Making Big Profits with Gann

There are many commodity-trading systems to choose from and Gann with its unique method of technical analysis is worth serious consideration by any trader.

If you are, a day trader or long-term position trader, look at Ganns commodity trading systems and see how they can help you become a better and more informed trader.

To learn more about using Gann methods to improve your trading performance please visit our web site:

Intra Day Charts - How Do You Use Them To Make Profits?

Many trader use intra day charts to try and time the market for maximum profits and keep losses small and make big profits overtime.

But how can you do this? Lets find out.

Intra day charts sound like a great way to maximize profits and keep losses small but all you will do is end up losing money quickly.


Consider what the FOREX market actually is and you will see why using intro day charts is simply a good way to put the odds firmly against you.

The FOREX markets are huge and trillions of dollars are traded everyday and you cannot predict what will happen in such a short time frame as a few hours or minutes.

Its a ridiculous way to trade.

There is insufficient data and volatility in such short time frames is unpredictable.

Trade with the odds

Currency markets trade longer term and reflect the underlying health of the economy (which of course is long term) and intra day movements are random.

You cannot set stops intra day, as daily resistance and support points are meaningless.

The scenario that dooms you to lose.

You can keep your losses small, but your chances of being stopped out are also high.

As for running profits, intra day traders simply want to get out in the day with a profit.

They can do this sometimes (by luck more than anything else) but their profits are never big enough to cover their inevitable losses.

Ever heard the phrase

Run your profits and cut your losses?

Its sound advice.

You cant do this trading intra day.

All you will end up doing is keeping your losses small, have higher odds of being stopped out and never be able to run your profits to cover your inevitable losses.

The net result You lose all your money over the longer term.

Intra day trading is mostly promoted by system sellers or vendors who simply make money selling to you.

They dont trade themselves and if you ask them, can NEVER Produce a real time track record of consistent gains.

You may get a few testimonials or a hypothetical track record in hindsight.

We can all make money in hindsight, but trading intra day in the market real time is far harder and you will lose.

Dont fall for this method of trading you will simply lose as the odds are firmly against you.


On all aspects of becoming a profitable trader including articles FREE PDF downloads and an exclusive Trading Course with a real time track record visit our website at

Lack Of Forex Education A Major Cause Of Failure

Lack of thorough Forex education can be costly.

Some new traders open a mini-account and immediately throw $5,000 at it, jump in and get their feet wet. Within 3 months or less the account is finished.

What happened?

There is a lot of hype surrounding the Forex! The internet is full of claims that you can turn a few hundred dollars into tens of thousands within months or 1 or 2 years.

With the most rudimentary information, new traders are sometimes encouraged to begin trading long before they are qualified.

Regretfully, some get-rich-quick merchants merely teach a little technical analysis and basic concepts in the Forex education they offer and miss what amounts to the most crucial part of Forex education: Mental and emotional discipline.

Aspects Of Forex Education

So in brief, here is how the various aspects of a thorough Forex education could be prioritized in increasing order of importance:

1. Forex terminology and trading mechanics

2. Learning how to read charts

3. Learning how to use the online trading software

4. Learning a variety of technical indicators

5. Learning a handful of proven strategies employing those technical indicators

6. Practicing in a demo account

7. Opening a mini account (still viewed as a practice account)

8. Strict risk management

9. Developing mental discipline and control of emotions through experience

Let's take a look at this list a little more closely.

Notice the items of lesser importance have to do with the mechanics of trading. Most Forex education packages spend ample time on the mechanics.

But the most crucial aspects, the factors that can make or break a Forex trader are the last two, items 8 and 9.

Risk Management

Forex education must include a detailed explanation of risk management rules to be of any value.

You need to know how to calculate risk reward ratios and which trades your equity will allow and which ones you need to avoid.

Estimates vary as to what is the optimal risk percentage on any one trade. Some very conservative traders may suggest no more than 1%. As a general rule, 2% seems to be a reasonable figure allowing for a series of losing trades without putting the account in jeopardy.

More liberal traders even suggest 5% but in my view that is dangerous. Image the hit on your mental energies if you get 5 or 6 losing trades in a row if you trade with that kind of risk.

An effective Forex education will devote a serious amount of time to discussing risk management.

Mental Discipline

There is a reason why this is the most crucial factor of all. Most traders fail, not because they don't have a good trading strategy, but because they lack the mental discipline to follow it.

The Forex can take an undisciplined trader on an emotional merry-go-round and empty the account at the same time.

That is why any Forex educational package of value will spend considerable time offering strategies and guidelines on how to keep mental focus and emotions in check.

Some Forex education package are put together by individuals associated with online brokers who don't actually trade themselves. Avoid them.

Go With Professionals

If you are going to invest in Forex education, go to the professionals. Do a little research and make sure the people teaching you are seasoned traders themselves, preferably with years of experience.

So when contemplating the Forex, don't be in a rush. Take your time, research, identify a good mentor, and be thorough in your Forex education. Eventually, you may be in the small percentage of traders who make a substantial income from currency trading.

If you are looking for a comprehensive Forex education with mentoring from professionals check this:

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What to Sell on the Internet?

The phenomenal growth of ecommerce lures more and more people to dream about starting an online business. The question that bothers many and restrains them from realizing their dream is what to sell on the Internet.

If you have spent sometime on the Internet trying to figure out what product or service you should choose to sell online, you must have noticed that people are selling every conceivable product and service over the Internet. Contrary to popular belief, even big ticket items are also selling on the Internet very well. But, nevertheless, it is not very easy for a newbie to find a product rather quickly and start marketing online.

If you are having difficulty in finding a good tangible product to market on the Internet or afraid to manage all the hassles of shipping and handling you may seriously consider selling information online.

According to data, most people browse through the Internet in search of some sorts of information that they require. Survey conducted by Neilsen Media Research shows that Books and Information Category tops the highest selling product and service on the Internet with a significant margin in comparison to other categories. This makes information a natural product for sale on the Internet. Information sells online in the formats of e-books, articles, reports, data, whitepapers etc. If you have expertise in any specific field, you may consider selling your ideas in one of the mentioned format. Check out Clickbanks marketplace to get a good idea what people are selling. You will be truly amazed by the scope of ideas!

Although, information is the most sought after product on the Internet; that does not mean it is an easy-to-sell product. For one thing there are tons of free information available on the Internet, and the second is people on the Internet are not very willing to pay for information. This is the reason why you have to be very careful in choosing the right product to market online.

People will buy your information product, if it is:

- A particular knowledge that they crave

- It makes their life easier, i.e. saves time

- It teaches them some subject that they would like to learn.

Which are the products that fall in these categories?

Expert advises, tips and ideas in a niche field:

Body building tips, dieting secrets, dating ideas, stock trading secrets, Internet marketing ideas are examples of this category.

Trend forecasts:

Businesses spend fortunes to have a better understanding of specific trends. If you have enough expertise to predict a trend of a specific field, i.e. high technology, stock market, Internet, etc., you may have a comfortable living by selling newsletter and whitepapers. The hard part is: you have to prove that you are really an expert in this field.


Thanks to Internet, more and more people are willing to learn different subjects from the comfort of their work and home. If you have enough knowledge of a particular subject, create an online course and market it through Internet.

Surveys and data:

Business bases on various marketing, demographic, sales and other data. You may collect those data from various sources and by conducting your own online surveys. This also requires enough knowledge of a specific business field and their requirement.

Research and Analysis:

People are often ready to pay for research and analysis information of their fields because, in general, this saves their own time. That is why subscription based stocks and other research websites are thriving on the Internet.

There are number of other reasons why you should consider selling information on the Internet.

Audience size

Millions of people from all over the world are browsing through the Internet in any given time. Your information product can be exposed to a very large number of prospective buyers in no time.

Easy to develop

Information products like reports and e-books are fairly easy to create. All you need is the knowledge of the field, a little determination and enough time to spend on it.

Low cost and low over head

You can create and market a report for less than US $100. You can take advantage of numbers of free marketing tools available on the Internet. You can even keep your overhead low by doing things all by yourself.

You can start part time

This is one business you can start from shoestring and spending only couple of hours a day. You can keep your job until you feel comfortable with the earning you generate through your online endeavor.

Conduct business from anywhere

The best thing about this business is you can do it from anywhere. You are no longer confined to a specific geographical region. While developing your information product keep in mind the following aspects:

- Does this product satisfy a need or does it solve a problem?

- Is their enough value in it?

- Is it a better product than others available on the Internet?

- Is this product easy to market to your chosen market segment?

The last question is very important as the sheer size of Internet makes it virtually impossible to focus on it as a whole. You must segment your market as clearly and as specifically as possible to become a successful Internet marketer.

Once you finished developing your product, initially, try selling your product through a marketplace similar to Clickbank. This will allow you to setup your online business fairly quick. You will not need a merchant account of your own and you can build your affiliate program with an ease.

Nowshade Kabir is the founder, primary developer and present CEO of a Global B2B Exchange with solutions to create e-catalog, Web store, business process management and other features to run a business online. You can read various articles written by Nowshade Kabir at

Forex Swing Trading Swing Trade Your Way To Regular Profit

The rise of online forex trading means that anyone can swing trade for short term profits, Its not only profitable, its easy to learn, good fun and that's what trading should be.

Forex swing trading online provides the ideal market for the methodology of swing trading.

So why are currency markets the ideal for swing trading?

Lets first of all define what forex swing trading actually is

Forex Swing trading aims to identify intermediate swings in price, that can last from anywhere from a few days, to a few weeks.

This is not day trading day trading has no reliable data as the period is to short and you cant make money.

Swing trading here means still looking at short time frames, but the data is reliable enough for you to get the odds in your favor.

The following conditions make FOREX swing trading potentially such a lucrative way of trading

1. Liquidity

Each day the global forex markets see trillions of dollars transacted.

This is a 24 hour market and is the worlds biggest investment marketplace.

The huge size of the markets allows traders to open and close transactions quickly, to lock in profits and minimize losses.

2. Volatility

Currency markets are volatile and this is why a short term trading method such as forex swing trading can be so profitable.

A volatile moving market is essential for swing trading.

This volatility means a large number of potential opportunities that are presented to forex traders.

3. Transaction costs

Low transaction costs that were once the preserve of large institutions, now any trader can get 3 5 pip spreads meaning short term trading is viable for any trader

Swing trades come regularly

While currencies present long term trends, there are many profitable swing trading opportunities within them.

These shorter trends last for a few days to a few weeks and they offer regular high reward low risk trading opportunities for forex swing traders

5 Psychology is easy to learn

Many traders lack patience and want to have quick action well thats exactly what you get with forex swing trading.

FOREX swing trading offers them a lot of trades regularly and you dont need the patience of a long term trend follower.

Swing trades tend to either run to profit quickly or loss, keeping the trader interested, motivated, disciplined and focused.

This is an ideal way of trading for someone who loves trading.

Forex swing trading is also

Easy to learn you can simply use support and resistance lines with some confirming momentum indicators. For example, we use just stochastics and RSI Its simple and a stress free way of trading and best of all can make big profits with low risk.

FOREX Swing trading is fun and very profitable and thats the way trading should be.


On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at

Thursday, August 30, 2007

Successful FOREX Trading Is Based On 3 Character Traits - Do You Have Them?

There are three character traits you need to have, to become successful in FOREX trading and most people simply cant acquire them.

When you consider that everything about FOREX Trading can be learned, yet 90% of traders lose, you will realize just how important these traits are.

Lets start with a tale of a group of traders that had no experience and in just 14 days started trading careers that were to see them become some of the most successful traders of all time.

A lesson from the turtles

The turtles, was the nickname given to a group of traders who were taught by legendary trader Richard Dennis to trade in just 14 days.

His contention was that traders were made not born and set out to prove his point to stunning affect.

The key to their success was to instill in them 3 key character traits:

1.Accepting Responsibility

Dennis made them accept responsibility for their actions by giving them all the knowledge they needed - then all they had to do was learn it, understand why it would work and apply it in the market.

Of course most traders dont do this.

They think that by following news stories, chatting with their brokers or buying an e-book they can gain success but this is a recipe for failure.


Because if you dont accept responsility for your actions and understand why your trading plan will work, you will lack the next key character trait.


If you follow someone else you wont have the confidence to trade a method through the bad times.

You must understand why your trading plan will work in the longer term to stay with it and this means understanding how it works and why it will be successful.

If you lack confidence, you will simply lack the next key character trait which is:


You will hear this word a lot and you need it to succeed, its talked about a lot but most traders dont really understand what it is or how you acquire it...

Even if you have a sound trading method, you need discipline because it can and will lose as do all systems.

When losing streaks come you cant blame anyone it serves no purpose, you need to stick with your forex trading system and be confident that it will turn around.

Discipline flows from accepting there is no one to blame, that you alone are responsible and knowing your systems well enough, to understand that if you stick with it you will succeed.

It sounds simple...

However, today the bulk of traders (as we have said earlier) or want to rely on a so called expert to lead them to success or rely on seeking the opinions of others.

They dont really understand that:

They need to take responsibility and trade a method they know and understand and have total confident in to follow it with discipline.

Finally remember this

Richard Dennis taught the turtles however he did not tell them to follow him blindly He gave them the tools and THEY made them work.

They learned to trade and in 14 days were ready to take the test and they all passed - amassing countless millions of dollars quickly and many of them became legends.

Trading looks simple but few traders realize the 3 key character traits outlined above are needed to succeed and thats why 90% of traders lose all their equity in Forex Trading.


On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at

Do You Need Forex Trading Signals?

All trading strategies boil down to knowing when to buy and when to sell. These points in time are known as entrance and exit points, respectively. Yes, it sounds simple buy low and sell high. But its not easy and when trading currency its even tougher than trading stocks, where company statistics can give you a good starting point.

Forex trading is different. Youre trying to predict how the currency market will change in a certain time frame and then take advantage of the gainers by buying them at their lowest points and selling them when theyve peaked. The question is, how does currency behave. What factors influence its gains or losses? And how do we measure those factors?

Professional traders study these very questions every day. They may be sitting in front of their monitors nearly every waking hour in order to pull together facts about how the various currencies are acting in relation to each other. They try to determine a relationship between daily events and forex prices. But most investors dont have this kind of time or dedication. How are they able to make good trades? Simple they buy the information rather than research it themselves.

Forex brokerage houses have come up a solution for the average or more casual investor. They distribute the results of all that professional research, combined and reported in what they call signals, to paying customers. Subscribers learn what factors are present in the market that could mean a change in currency values. This eliminates hours of daily research and allows the more casual investor to have a life outside of trading, yet still get some of the same information the professionals use.

Unfortunately, signals arent complimentary. Your broker probably offers signals for a fee. You need to determine your level of involvement in the forex market and whether or not its worth it to you to subscribe to a service like this. If you havent found your broker yet, this may be a good included service to search out and compare prices for.

Signals bring results.

Those companies that create the signals use technical and statistical analyses, combine them with trend indicators and deliver the results frequently to assure that you get accurate and real time information. The forex market is fast-paced and volatile, so it is up to you to use the signals to set up and execute trades.

Of course, theres no guarantee. Signals are a useful TOOL, no more. They give an indication of how the market is performing and how it may be trending. But they can and will, be wrong. The goal should be to have enough winners to pay for the losers and have profit left over. Never expect to have no losers, because you will. You cant let this discourage you, but instead learn from it. Find the signal you missed or the time limit you failed to recognize. Next time youre in a similar situation, chances are youll do better.

Remember, if forex trading signals were perfect indicators, no one would ever fail in the foreign exchange market. Use the tools, but dont be completely dependent upon them.

Michael Russell Your Independent guide to Forex Trading

Forex Trading Tips

Forex trading has the highest volatility of any investment market in todays global marketplace. Forex has a volatility of 500. Liquid stocks volatility is from 60 to 100. Smart investors are currently jumping into the forex market at record numbers.

With access to a computer, an investor can go online anywhere in the world 24 hours a day, except for the weekends. A Forex investor is in control of his account. With the right strategy and attention to world events, a Forex investor can reap substantial profits with his investment.

Although an investor can enter the Forex market with very little capital outlay, he should keep in mind that, with the volatility of the currency market and the economic and political turmoil around the world, Forex trading is not risk free.

A Forex investor must be able to analyze the news, not just listen to it, and after analyzing the news, an investor should use proven strategies when buying or selling. An investor should never make and investment decision based on fear or greed. He should consult reputable charts and graphs and known and proven market indicators before making a decision. A Forex investor should familiarize himself with the big players and political figures that influence the market. Learn personalities and listen to fellow Forex investors. Because Forex traders all trade in currencies, there is no threat of insider trading. Every Forex investor is an insider. With the right strategy and insight into what moves the market, a Forex trader can be very successful.

Milos Pesic is an expert in the field of Forex Trading and runs a highly popular and comprehensive Forex Trading web site. For more articles and resources on Forex related topics, online forex trading, trading tips, forex software and much more visit his site at:


An Introduction To Breakout Trading

Breakouts are one of the easiest technical patterns to spot. They occur in all instruments and in all time frames, so it doesn't matter if you're swing trading a currency, or day trading a futures contract, breakouts are a pattern you can trade.

What Is A Breakout?

Before we look at trading breakouts in more detail, we should first answer the question, what is a breakout? To understand breakouts, first it's necessary to understand support and resistance - the basis of all technical analysis.

Put simply, support is the point at which enough buyers come into a market to arrest a drop in price. Conversely, resistance is the point at which enough sellers enter a market that the price stops rising.

If buyers enter a market at a certain price, stopping the fall, and the price rises then subsequently falls, the price will once again reach the point of previous support. At this moment, the support is said to be being 'tested'. If the buyers re-enter the market at (or close to) the same price as before, thus pushing the price back up again, we can say that support has held. The support price point now has more strength than before, because it has been tested twice.

If the price bounces from the support point repeatedly, that support becomes stronger and stronger. In a sort of 'self fulfilling prophecy', new buyers will often come into the market near previous support in the hope that the price will once again bounce and rise, thus making the support hold again.

Eventually however, the support will fail and the price will drop through. This is a breakout - so-called because the price has broken out of the range in which it was trapped, between support and resistance.

When a breakout occurs, it will often do so with such force that the price will carry on dropping (or rising, it the breakout was to the upside - that is a break of resistance). To understand why, consider all those buyers who were buying at the support line. Eventually there are not enough of them left to prop up the price, and so it falls below support (in other words, it breaks out). Some buyers who had bought at that price point will immediately cut their losses and sell. This pushes the price down further. As the price drops, more and more buyers who had purchased at support will hit their stops, triggering yet more selling.

This vicious circle of selling causes 'momentum' and the price spirals downwards.

After all, if we sold when the price broke-out to the downside, or bought when it broke-out to the upside, we could just sit back and enjoy the ride, right? Well, not quite...

False Breakouts (Fakeouts)

Not all breakouts follow through. Sometimes the price will dip below support (or pop through resistance) only to turn around and go back within the previous trading range. This is more prone to happening with certain instruments where market makers or big players can control price to a certain degree.

For example, let's imagine a market maker wanting to buy a large quantity of stock. Naturally, he wants to get it at the best price he can. The stock is currently trading within a range. The market maker already has a chunk of stock, and he sells this off, his relatively large selling forcing the price through the support level. As the price of the stock drops, a number of short-sellers enter the market, selling on the breakout expecting momentum to carry the price further down. The market maker starts buying up all this stock that the shorts are selling, getting it for a bargain price. As the sellers run dry, the price is forced back up, and as it does so, the short sellers stops start getting hit and they are forced to cover their positions by buying back stock. All this buying activity pushes the price even higher!

When a breakout is manipulated in this way, it is usually referred to as a 'fakeout'.

Safe Breakout Trading

So if a trader can't be sure if a breakout is going to follow through or not, should they even attempt to trade them? How can we take advantage of this seemingly simple, but deceptively devious, trading pattern?

One way is to carefully choose the instrument we trade. Forex for example, is less prone to fakeouts because the market is so huge that it is almost impossible for any individual or institution to manipulate false breakouts.

Another way is to use advanced trading tools like Level 2, which gives complete market transparency and therefore lets the trader see what's really driving price.

But perhaps the most effective way is simply to become a student of 'momentum', or tape reading. If you can learn to read the tape (the Time & Sales screen, which reports trades in real time), you can quickly learn to spot true momentum and real breakouts.


Breakout trading is a relatively high probability low risk way to trade. As with any trading pattern, breakouts will work some of the time, and will fail other times. With practice, and by learning to read momentum, a skilled trader can quickly learn to spot the best breakout opportunities.

Harvey Walsh is a full time day trader and part time trading coach. He has helped students from around the world to break free from the day job and start a successful and profitable career, day trading from their own homes. You can find out more about Harvey, and learn some of his most profitable trading strategies, at his website

Aintree Day Two Preview

A little short on time today, so I'll keep this brief (I can hear your collective sigh of relief from here!)...

Yesterday - Mighty Man won the first as expected, but I didn't back it. I lost money on State Of Play, as Exotic Dancer proved himself a very very good horse in the Betfair Bowl.

Katchit won as he pleased, and I did back him but only for small money. By the way, did I mention I love this horse?

Just one point of order here: what the Dickens are the BBC doing employing the abject buffoon who is Jim McGrath to do the commentary?! Not only did he call the foot perfect Katchit as making a bad blunder (then followed it up by saying he jumped the next much better) when it was blatantly apparent to anyone with even one partially functioning eyeball that it was Punjabi who made the 'horlicks'; he also couldn't track a faller down for over a fence and, when he did, it was clearly a guess as he said Locksmith fell, then called him as the leader in the final quarter mile.

Finally, and this must surely have not been lost on the powers that be, in their first rehearsal for the Grand National, they were using four commentators (as they will be on Saturday). McGrath came a distant fourth - tailed off - to this listener's ear anyway, when pitched alongside the estimable race reading talents of Tony O'Hehir, my mate Ian 'Barty' Bartlett and another chap whose name escapes me, but who is a fine up and comer who often calls at Wolverhampton.

McGrath is an ignoramus. I never want to hear of a horse 'careering away' again in my life! (but I suspect I will have heard it twice more before the second race is over...)

Onwards, dear reader... I got the Hunter Chase wrong, and am still waiting to see where mine finish. Scots Grey looked beaten and rallied very well: a real treat if you backed it because you must have thought you'd lost your money, only to see him come back with admirable resolve.

The money for Bambi De L'Orme in the antipenultimate (that's third last to you and me) was well placed, and he won nicely. None of my cash was on him.

Had a decent bet on Wins Now in the sixth race and reckon he would have won but for a terrible mistake at the last hurdle. McCoy is not really a man for the Festival meetings it seems. At least not when I back him... TTS had the winner in Tidal Bay, and of course my bet on the Bay was left second at Cheltenham. Bugger.

In the last TTS had three non-qualifiers, due to the prices. Pity, because Two Miles West won at 25/1 and Gods Token was second at 33/1. The exacta paid a piffling 3170.20! (Place lay of the day Laouen beaten into 5th, so lay landed - just!)

To today, and hopefully none of you are triskaidekaphobic (afraid of the number 13 of course!)... No time for (further) verbiage, so my placepot / win selections are as follows:

Race 1: Ungaro and Dom D'Orgeval
Race 2: Massini's Maguire (a very tough horse to pass!)
Race 3: Well Chief (different class, barring jumping errors... no money down this time though!)
Race 4: Ground Ball, Umbrella Man, Risk Accessor, Hakim, and Le Volfoni
Race 5: Osana (tipped here as an Aintree horse before Cheltenham)
Race 6: Limerick Boy, Green Belt Flyer and Fundamentalist (place lay of the day: Copsale Lad.)
Race 7: One Gulp

Good luck if you're playing today...


Matt Bisogno is a lifelong horseracing and betting enthusiast, and has published a number of statistical analysis of trainer patterns for horse racing betting purposes.

Should You Trade The Forex Market Or The Futures Exchange?

Back in the nineteenth century farmers started selling contracts to deliver their produce at a fixed price at some specified future date in an effort to stabilize the supply and demand of agricultural products out of season. At this point the futures market was effectively born.

Today the futures market extends far beyond agricultural products and includes many different items from manufactured goods to currencies and treasury bonds, but the principal remains the same. One essential difference however lies in the fact that for many futures traders there is no intention to actually purchase the goods in question or to take delivery and it is the futures contract itself that is the trading instrument.

As an example of how futures trading works let's assume that a baker enters into a contract with a farmer to supply 100 tons of wheat at $50 a ton on a specified date. This contract need not necessarily require the baker to purchase the wheat specified in the contract but gives him the option to do so if he so chooses. Now, Futures accounts are settled at the end of each trading day and so, if after entering into the contract, the market price of wheat on a particular day is $40 a ton the farmer's trading account will be credited with $1000 ($50 - $40 X 100) and the baker's account will be credited with the same amount.

Final settlement of the account and delivery of the wheat will then take place on the agreed date and, for the sake of argument, we'll assume that the price of wheat is still $40 a ton at this point. The farmer will now have $1000 in his trading account and the baker will need to pay his account the $1000 that it is down. So how did both parties do?

The baker has lost $1000 on his futures contract but is able to buy wheat on the open market now at just $40 a ton rather than the $50 he anticipated and so his loss on the contracted is balanced by his ability to buy cheaply on the open market. In effect he has protected himself against having to pay more than $50 a ton but has in essence lost because the market price has fallen.

The farmer on the other hand has made $1000 on his futures contract but, because the market has fallen, he can now only sell his wheat for $40 a ton. Once again the difference between the two is balanced and, by entering into the contract he has effectively gained the $1000 he would otherwise have lost on the open market.

In many cases speculators will enter the market and will buy and sell futures contracts. For example, if they expect prices to rise they will purchase the contract from the buyer (known as buying long) and, if they expect the price to fall, they will purchase the contract from the seller (known as buying short).

The Forex, or foreign exchange, market is similar in many ways to the futures market but has several important advantages.

The Forex is the largest financial market in the world and is a giant when set alongside the futures market. This makes the Forex market very much more "liquid" and provided many more trading opportunities for both buyers and seller.

The Forex market is also open 24 hours a day, 5 days a week, while most futures exchanges are open for only 7 hours a day on Monday to Friday.

Forex transactions are commission-free, while brokers will charge both commission and brokerage fees on futures contracts.

Forex transactions are executed almost immediately because of the high volume of trading and there is usually little difference between a quoted price and that actually paid on the transaction. In futures trading quoted prices will often reflect the last price paid on a similar trade and there can be a marked difference between the quoted price and the actual price paid.

Finally, the Forex market has a number of in-built safeguards which mean that trading on the Forex carries less risk than trading on the futures exchange.

If you wish to learn forex trading online and discover more about this exciting world which can bring real time forex news to your computer screen, then please visit

Wednesday, August 29, 2007

Learn FOREX Trading in 6 Simple Steps

This article is for anyone who wants to learn FOREX trading with the view to making big profits.

Its a well-known fact that anyone can learn FOREX trading - but very few traders make big profits.

Here we are going to show you how to learn the basics and apply them with the right mindset to succeed.

The Six Steps:

1. Attitude

Firstly, its a well-known fact that the traders who make the money, approach FOREX trading with the attitude they will do what it takes to succeed. This means they dont listen to gurus or read tip sheets - they do it for themselves.

Too many novice traders think they can follow someone else and be successful - but the only person who can give you success is you!

2. Method

If you are going to trade FOREX, you need a method - and this does not involve day trading - it involves long term trend following. The big currency trends last for months or years - and your aim is to lock into these currency trends, and make big profits.

The best way to catch these long-term trends is to use a breakout method - this is a PROVEN way to make money, and breakout methods form the basis of many top-trading systems.

Good software is available form such vendors as Omni trader, Trade station, and Supercharts any of these programs will allow you to test a method, and then when youre confident, trade it.

3. Discipline

By developing a method you are confident in, means that you will be apply to apply it to the markets - and stick with it, even through loosing periods.

Most traders who follow gurus and tip sheets cant do this and as they havent developed a method themselves, they soon throw in the towel and discipline goes out the window.

4. Knowledge

You can learn a breakout method very quickly - but you still need to overcome the psychological pitfalls of trading. Read some books that focus on this area - some of the best include:

Jack Schwagers Market Wizards and New Market Wizards

Edwin Le Feurves Remisenences of a Stock Operator

Also, any books by: Jake Bernstein and Larry Williams.

These books are motivational, and will keep you focused on the your task.

Trading is all about applying a trading system with discipline - and these books will help you achieve this.

5. Taking a Risk

When learning FOREX trading, most traders try and restrict risk above all else. However, they do it to such a degree, that they end up taking losses as they get stopped out the market. In many instances, the direction they chose was right but they just didnt give the trade enough room on the downside.

If you want to make big money by FOREX trading, keep in mind that with risk goes reward.

Taking calculated risks is quite different from being rash - you simply need to wait for the right opportunity, and have the courage of your conviction.

6. Trade in Isolation

Trade in isolation to stay focused - keep in mind that if you are subject to the opinions and views of others, which may differ from your own - it will put you off.

The fact that you may be doing trades no one else may agree with, is good - Why? Simply, because 90% of traders lose - so the mass opinion is not the one to follow.

Learn FOREX Trading

If you want to learn FOREX trading, and make big money - you can do it. The proof is an experiment over two weeks, with a group of novice traders. These traders were nicknamed the turtles and they went on to become some of the most famous traders of all time.

If you want to learn FOREX trading, dont fall into the trap of believing that you can follow someone else. Get the knowledge - and then take responsibility for your own financial success. You will then be doing what 90% of traders dont do - and you can then enter the elite 10% of traders who pile up huge profits consistently.

New! A valuable FREE Currency Trader CD containing 9 critical trading reports, tips, strategies and currency trading info. Visit our web site now and grab your CD

How To Start Investing For Financial Independence, Part 1

Today, I am going to start a multi-part series about how to go from being a beginning investor to being financially independent in a steady and predictable way. At our website, we get tons of e-mails about how do I start, how do I start with little $s, etc., etc., etc. If you are asking this question, congratulations because you are ahead of most. All of us have been there at some point.

I must warn you. What I am about to share here for free is what gurus across the nation charge thousands of dollars for in weekend seminars. The secrets revealed are going to seem pretty simple because quite frankly, there are no secrets. The methods used here have been done for centuries and there is no real reason to complicate them. Lets apply these principles to see how fast someone might become financially independent without betting the farm.

Realize that everybody has wildly different starting points and different financial goals. For this series of articles, we assume that an individual has access to at least $15,000 liquid capital (or home equity) to start, is at least breaking even with their current income versus expenses, and has decent credit to obtain financing. Note there yet?.... See the footnote below.

To start, what you need is to make your money grow while keeping your current income stream, and current expense level in place. I cant say this more plainly..To change your current financial path, you have to us your money and your time to grow additional income streams that increase wealth. There is many ways to do this but we are going to use investing in real estate as an example.

Now for beginners, here is the really bad news As an investor, you reap rewards by putting your money in HARMS WAY. You do everything in your power to minimize your risk but bottom line is that real investors make money by taking CONTROLLED risks. As investors get better, they learn how to make fantastic investment returns doing things that all their friends and relatives thing is crazy.. However, they know exactly what risks they are taking are why those risks are small in comparison to the potential rewards.

One reason people really like real estate investing is leverage; i.e, you can purchase an expensive property using 0-20% of your own money while financing the rest. So if you put 10% down for example, and then the property goes up by 20%, you have made a 200% return (ignoring expenses, taxes, etc. for simplicity). Of course this works in reverse If the property drops by 20%, you have lost not only your original investment but have to come up with another 10% as well.. Ouch!

For someone beginning, here is what I would suggest: 1) Look for an opportunity that will return at least 150% in 2 yrs or less;

2) Be mentally and financially prepared if the investment does not work out;

3) Have VERY good reasons why you dont think you will lose money You may not make as much as expected but you would rather not lose money at this stage.

4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan.

In our Mastermind Group, we are bringing out a land project (see related article Land Investing that appears to meet these criterion (each investor has to decide for themselves). So lets say the purchase price is $150,000, with 10% down and another $3,500 in closing costs. With good credit, then the financing obtained would make the land payments for 2 years while waiting for growth.

Now lets say after you did your analysis, looked at what had happened in the past, looked at why you thought more and more people would want this property, etc., you decide that you think this property will average 20%/Yr escalation over the next 2 years. MORE IMPORTANTLY, you decide that barring a major meltdown in the market, you think there is little chance that you cant at least break even after 2 years.

So if you end up being right about the growth, then you might net a tidy $43,000 (before taxes) or so after everything is considered. After long term capital gains at 15% lets say, then you just picked up about $36,000 of the markets money. That is money that if you take a loss on the next investment will not be nearly as painful as if you lost your original money. When you combine this with your original investment amount, you now have around $55,000 of operating capital for step 2.

Realistically, you cannot predict how much you will make from the investment. When I invest, I try to establish in my mind what is reasonable. Frequently, I have been surprised to the positive and made much more than expected. Sometimes I have made less. The key being to put yourself in a low risk situation where you have a strong reason to believe the market will go in your favor.

To accomplish this first step, lets look at what you really had to do:

1) Had to be willing to put $$ in harms way;

2) Had to educate yourself enough to evaluate the risk and the opportunity;

3) Had to find the opportunity or be in a position to have the opportunity presented to them;

4) Had to act.

I would like to comment on the education side. As a former professor, I have seen very smart people spend 1,000s of hours and 10,000s of thousands of dollars educating themselves to earn a living; this is a great move in many cases. On the other side, I have seen very smart people who want investing to be a major source of income but will not spend any time or any money educating themselves.

To me, this is a recipe for disaster. By the time we finish this series, you will see that with a few simple steps, implemented over time, many people can easily produce more money than from their regular job. Furthermore, many people will put 100s of thousands of dollars at risk but know almost nothing about what they are doing. If you chose the path of making your investment dollars grow steadily with time, I hope this does not end up describing you.

** Footnote: If you are not yet at that level, here is what I suggest. First, read Michael Mastersons book called Automatic Wealth. This is an excellent book on how to rapidly change your financial position while staying employed. Next, I would read Van Tharps new book called Safe Paths To Financial Freedom. Van uses a very different thought process from many and so adds a great deal of rounding. Like anything else, you will not agree with everything written in these books but they provide some great thought processes. When you have some capital and are cash flow positive, them come back and revisit this article.

Chris Anderson is a leading authority on preconstruction real estate investing and has been referenced in many venues including the New York Times and USA Today. Free sign up at to get continuing education and articles or visit his Investing Mastermind Group to get access to world class investing projects.

How a First Time House Flip Went Bad

Lets call him John. A bright and hard worker just trading time for dollars at his regular job. His first house flipping experience could have been a lot better.

John was watching Property Ladder on the A&E network one day and got the bright idea to flip a house himself. After all, those people were making money. A complimentary show Flip This House confirmed that money could be made, lots of money.

If you havent seen Property Ladder, its a television show that features first time home flippers. Usually in that show the inexperienced flipper, egged on by Kirsten Kemp, make almost a years salary or more by fixing up an old house and selling it. Kirsten Kemp is a veteran of flipping houses and is a bit too pretty to be mistaken for Bob Vila.

John figures that the people featured in these shows are not all that bright and certainly he could do as well. With a bit of nervousness John put a 10% down payment on a home that needed repairs and begin the repair process. Or did he?

The first thing John did was to ponder what really needed to be fixed and if he needed a contractor to do it. Two weeks went by.

After getting several bids, John chose a contractor to come in and totally renovate the property for $11,000. That included paint, carpet, appliances, and a new wall to turn an open area into another bedroom. Once it was agreed, the contactor was to start working. As luck would have it, the contractor had some unfinished jobs and couldnt start for another two weeks. John was patient, after all it was going to be a great flip and he was going to make money. It was just another $800 for an extra month, no big deal.

Once the contractor started he stared with a bang. Just like on the show Flip this House a big yellow dumpster was deposited on the lawn and a crew started ripping out wall paper and junk from the house. That demolition lasted about two days.

The next thing this go getter contractor did was to disappear for another two weeks. The excuse: Men had quit and another job was pushing them behind.

To make a long story short, the contract took 8 months to get nearly complete, and then John pulled the plug and fired the contractor.

John paid others to come in a finish what was started. He had now 9 months of house payments into the project, 10% down, and construction costs.

After the house was ready, John listed it with an agent, and it sat another month. John lowered the price a bit with the prompting of the agent, but got cold feet after two weeks and wanted to raise it again. Too late! The house had a full price offer. Good news, sort of.

All said and done John made a little money and got a whole lot of experience. It was a flop, but at least he didnt lose money.

Lets review what John, now wiser, could have done differently on his first flip.

Firstly, putting 10% is ok, but not ideal. John should have used private money or have financed the property at 100%. That money could have been used for fix up rather than being tied up in the property.

Second. John waited too long to decide what he was going to do. He should have known before he bought the property what his plan was. This would have saved two weeks at least.

Third. While John got a referral for the contractor, he should have gotten more bids. A deadline for the completion of the job, with penalties, should have been written in the contract.

Fourth. John waited too long to fire the contractor once he knew there was a problem. He was afraid that he would still owe the full amount if he terminated the contractor before the work was done. A proper contract would have prevented that fear.

Sixth. John listed with a realtor too early. The property should have been for sale by owner from day one and John should have tried to market the property himself.

Seventh. The price was set, and then changed too quickly. Better marketing would have netted John with a nicer profit. John should have known the selling price even before buying the property.

A lot of mistakes were made, but John still made a slim profit. All is well that ends well, but you dont need to make these same mistakes. Learn from John.

Scott Ames is publisher of a website dedicated to those interested in flipping houses for profit, either retail or wholesale. You may visit the site at

Investing - Enjoy the Precious Metals Commodities Ride

Our rather pessimistic articles of late on the housing bubble, the ominous warnings from a long list of financial experts and their suggestions on how to best weather the impending financial hurricane have been refuted by none other than the well read author of our "Crazy Man" articles (see "A Crazy Man's Rant or Right On? You be the Judge" and "Crazy Man's Rant - He's Crazy Like a Fox!") who sees things completely differently. Who is right - the eternal optimist with a different take on the economic environment or the big bad bears? Below are his comments.

"I have been beset, of late, by a number of anomalies in what I read and know about the economy and how they translate into an imminent housing collapse and how those linkages to other major segments of the economy would cause general economic bedlam.

Be that as it may, I am convinced that we are in the early stages of a multi-year secular commodities bull market.

I am equally convinced of "peak oil" and the merits of energy investments whether they be for reasons of supply, geopolitical or for environmental reasons.

I am also convinced of the large and continuing incremental demand for base metals and other commodities by the growing economies of Asia centered around China and India.

And, finally, I am totally convinced that this demand for base metals and other commodities will continue to escalate even if recession becomes the order of the day in the United States and other developed western economies because of the explosion of savings and demand by the growing middle class of Asia.

I am puzzled, however, as to why you are so convinced that housing demand and prices are on the brink of tanking.

As I see it the recent increase in short term interest rates are not that unsettling (John Mauldin, in his most recent article entitled 'When Will the Fed Stop?' supports my contention making the point that from an historical basis the Fed funds rate is not that high given the fact that from 1946 through 2000 the median fed fund rate was over 6% and yet the U.S. economy grew rapidly during that period) and the almost permanently static longer term interest rates continue to make housing a tremendously affordable proposition. In addition, institutional lenders continue to bend over backwards to accommodate buyers.

Your "Our Worst Nightmare" articles on the housing market (see "Our Worst Nightmare - The Puncture of the Current US Housing Bubble" and "Our Worst Nightmare - The Bubble Has Burst") are sensationalist and misleading. Housing is a hard commodity. It is real, concrete, can be seen and used. Compared to paper representing bonds and equity shares, it is tangible just as all other commodities are. So if we are really in a commodity secular bull cycle, why should we despair over the suggested imminent collapse of the housing market? Where is the nightmare? Moreover, if the FED continues to be accommodative in terms of money supply, interest rates and credit generally, why should the buoyant housing market fall apart prompting all the other elements of the economy dependent upon it to do the same? Again I ask: where is the nightmare?

As I see it, official employment figures indicate a strong economy and the CPI index is not in the least inflationary. Also, surveys of consumer and producer confidence stand almost at multi-year highs. Knowing that Robert Prechter preaches that public attitudes and social mood lead to behavior and activity - not the other way around as we almost all believe - this public optimism bodes well for a continuation of the current economic reality. With an always accommodating FED policy of M3 annual growth in the money supply of almost ten percent, all should be sweetness and light for continuing consumer led demand and economic growth. As I see it, all your 'ominous warnings and dire predictions' are also way off base and are alarmist at best.

You go on and on in your "Ominous Warnings and Dire Predictions" articles (see "Ominous Warnings and Dire Predictions of the World's Financial Experts Part 1 and 2 of a 6 part series) about all kinds of things but:

a) fail to address why so many people are so optimistic given the obvious inflationary consequences of growth in the money supply, bubble-like housing prices and a loss of affordability because of rising house prices.

b) fail to express concern that official numbers relating to the Consumer Price Index, unemployment, GDP and other measures of economic reality are largely bogus and

c) fail, most importantly, to mention the unfunded liabilities of Social Security IOU's, Medicaid, Medicare and its new drug plan, Freddie and Fannie Mae and the Pension Guaranty Corporation which purportedly backstops underfunded private and public sector defined benefit pension plans.

Now I may be talking out of both sides of my mouth here but I also feel strongly that this lengthening list of economic fundamentals are, indeed, alarming and can not continue indefinitely without a blow up. Politicians and central bankers along with their cheerleaders in the brokerage, banking and mutual fund industries, assisted by a largely ignorant and culpable popular news media, will, however, do their best to leave the toiling masses largely ignorant of economic realities for as long as possible.

Inevitably though, when the 'dam breaks' or the 'deck of cards' collapses, it will be quick and calamitous in its magnitude and impact. That is why I am well positioned in precious metals (gold and silver bullion, mining company shares and some well placed long term precious metals warrants to reap the major benefits of leverage these assets continue to give my portfolio) but somewhat less so in base metals and energy. That is my comfort zone which allows me to sleep soundly because it is the best way to protect my hard earned equity and prosper from the fallout of the coming financial collapse. The only thing I do not know is the extent of this future financial dislocation or its timing. What the heck, life wouldn't be very interesting if we could predict the future with absolute certainty, now would it?

For what it is worth, and I have been laughing all the way to the bank of late, I believe we are in a genuine commodities bull market and, as such, see no need to spend much time paying attention to the daily ebbs and flows of the market for these investments. I have done my research and analysis and taken a position. I periodically review the performance of my investments, fine tune them on occasion and then get on with my life confident that the markets will develop as we know they are destined to with our assets safe and growing. If there is a fiscal hurricane approaching as you suggest I am confident my portfolio is secure. (See "Warning! Fiscal Hurricane Approaching! Is Your Portfolio Secure?").

Call this the standard 'buy and hold' approach if you will, but it isn't. Traditional buy and hold investing makes a fetish out of percentage asset allocation between market sectors, stocks and bonds, picking individual stock winners and pruning losers all in the name of 'balance and diversification.' Lighten up and enjoy the commodities ride."

The bottom line conclusion appears to be for investors to strategically position themselves in a wide variety of assets including precious metals, mining shares and long-term warrants.

Dudley Baker is the owner/editor of Precious Metals Warrants a market data service which provides you with the details on all mining & energy companies with warrants trading on the U. S. and Canadian Exchanges. As new warrants are listed for trading we alert you via an e-mail blast. You are provided with links to the companies' websites, links to quotes and charts, tips for placing orders.

Online Currency Trading Strategy The Insider Secret

If you have an online currency trading strategy, then you should incorporate the advice given in this article to make bigger profits - and maybe even change a losing system into a winning one.

The advice were giving here is contrary to almost everyone else on this subject - keep in mind however that 90% of traders lose! So, lets stay away from the losers and make some profits.

Get Set for Bigger Profits

So, whats this insider secret anyway? - Its about looking at money management in a different light.

Money Management and your Odds of Success

Most traders are virtually guaranteed to lose - because they have money management strategies that ensure they are constantly going to get stopped out by normal market volatility.

For example, many traders risk say 2% of their equity on a trade. On small accounts, this amounts to just a few hundred dollars. They enter the trade, and market volatility ensures their stop is hit. The market then goes back in the direction they had anticipated - and piles up thousands of dollars! Our trader though, thinks he was just unlucky - and tries again, but he wasnt unlucky, and volatility will take him out every time.

Money Management Guaranteed to Lose

A string of small losses soon adds up, and the trader runs out of money - and his online currency strategy is at an end.

The trader may have been right, on where markets were going - but got stopped out of the trade - and ended up losing instead of winning.

Does this sound familiar? - It happens all the time.

How to Protect Equity and make Bigger Profits

Here are seven tips to incorporate into your currency trading strategy, to protect equity and build huge profits.

1. Dont listen to advisors or brokers. Advisors dont care if you win or lose - and brokers certainly dont mind, as they work on the assumption you will lose anyway. The more commission a broker makes the better - and tight stops ensure this.

2. You need to risk more per trade - so you need to be very selective in trades. Forget day trading, and concentrate on the big, longer-term trends.

3. Keep in mind this truism with risk goes reward. Without risk, there cannot be big rewards. Currency trading offers big rewards - but you have to be prepared to take the risk.

4. Taking a risk with no thought, and taking a calculated risk, is entirely different. If you are taking a bigger risk, you are not necessarily going to lose - it depends on the logic behind the trade - and the profit potential. Thats why you should trade sparingly - and concentrate on the big trends.

5. Use up to 10%, or maybe even more, on the trades you are confident in - these are the big moves - and you dont want to be stopped out!

6. Dont move stops up too quickly to protect equity big currency trends last months or years - so give the trade room to move. You dont want to get into a big trade, and get stopped out on the first correction - if you think the trade is going to be big, then have the courage of your conviction.

7. Use options as a vehicle theyre great if used correctly - to give you staying power. Use at the money, or in the money options - with plenty of time value, for greater staying power. Options are a great tool, but NEVER buy out of the money options - or options that are close to expiry.

An online currency strategy consists of a number of components - and the one that lets down the bulk of traders, is money management. They try so hard to avoid risk, but end up creating it - and lose. Dont make this mistake in your currency trading strategy - you need to take risks, pure and simple - and as the famous, US general George Patton said:

Take calculated risks - that is quite different from being rash

The fact is, most traders dont believe this they end up creating risk by trying to avoid it - and thats why their currency trading strategies fail every time dont make the same mistake!

New! A valuable FREE Currency Trader CD containing 9 critical trading reports, tips, strategies and money management info. Visit our web site now and grab your CD