Monday, October 1, 2007

Currency Trading Success 6 Tips to Increase Your Profits

If you want to increase your profit potential and achieve currency trading success then the simple tips will help you.

Some are at normal investment wisdom, but as the bulk of traders dont ever achieve long term currency success, so thats Good!

Here are your 7 tips for greater currency trading success and bigger profits.

1. Focus on the long term trends

Currency trends mirror the health of the economy generally and economic trends last years and these are reflected in currency trends.

Forget day trading, its the equivalent to flipping a coin. You cant predict such short term movements so dont try.

When flipping a coin the odds are even, but keep in mind in currency trading the fact that you have to place a stop and you have to overcome both slippage and commission, means you will take a thumping loss.

Day trading wont lead to currency trading success for you, but will simply make your broker rich.

2. Trade in frequently

Many traders want to be in the market all the time and act like gamblers trading for the sake of trading if you DONT want currency trading success do this!

Only trade this moves with the best profit potential.

Keep in mind you may need to be patient You cant hurry the market, so dont try.

3. Dont diversify too much

If you dont risk anything you wont make anything.

Diversification is the enemy of making really big gains.

To make really big profits you have to have the courage to take calculated risks on the really good trades and go for maximum profits.

This is the only way you will make really big gains - Period.

4. Use a simple system

There is no correlation between how complicated a system is and how much profit it will make.

On the contrary, simple systems are more robust than complicated ones and will cope better in the face of brutal market conditions.

A good example of a simple system is a breakout system, which anyone can understand.

You must always make sure you understand the systems logic.

If you do, you will have the discipline to follow it through inevitable losing periods, so never trade a system where the logic is not revealed.

A great method to learn is the Gann method of trading, its different, its revealed and it made him $55 million.

In conclusion, get a system you understand, thats simple and that has been proven to be successful.

5. Never Seek or Give Opinions

If you win at currency trading you will often be trading in the opposite direction to the majority so dont discuss your trades with other people, they will put you off and dont give opinions either.

Trade in isolation.

Independent thought, is one of the keys to currency trading success so dont get distracted.

6. Stay with the majors

Stay with the major currencies: US $, British Pound, Euro Swiss Franc and Japanese yen.

These all have good liquidity and good trends.

Dont trade minor currencies that can feature erratic moves or currencies that dont have a long history.

The majors will give you plenty of opportunities so use them.

Above are six general rules for currency trading success and bigger profits.

In part 2 of this article we will look at some others that will help you achieve bigger profit potential from your currency trading. Good luck!


W D Gann was a trading legend and made over 50 million trading. Get more info on all aspects of Gann trading including an exclusive Gann Trading Course visit our website for a huge resource of articles, features and downloads and at

Race Horses and Mutual Funds

For years investors have been taught to look into the composition of a mutual funds. In other words the "experts" want you to take the time to analyze the stocks within the mutual fund portfolio, categorize them by industry group and try to understand the objective of the fund manager. This is nonsense.

When I go the track I look to see what the horse has been doing for the last several races. I don't give a hoot what he had for breakfast. All I want to know is has he been fast? Is there a good chance he will finish in the money in the next race? I only want to know how he has been performing.

Most mutual fund managers, except those who follow index funds, are always trading. You have no idea that what is in the portfolio today was there yesterday or will be tomorrow. Some fund managers trade more than others, but you can prove this to yourself by looking at the fund prospectus at the beginning of the year and one of the updates that funds publish quarterly. Many of the stocks will still be there, however, you don't know if the percentage holdings are the same.

By the way, don't bother reading a mutual fund prospectus. They are worthless when it comes to making money. Consider that most of the information in it is about a year old by the time you read it. Think about this seriously for a minute. Is there anything you can find out in the document that will show up in your bottom line? I'll wait while you think. OK? There really wasn't anything was there? All prospectuses are basically worthless.

But you say the SEC (Securities and Exchange Commission) in Washington approved this. No, they did NOT. They don't approve of anything; they just read it to be sure it meets the regulatory requirements for disclosure. There is almost no difference between the prospectus for the worst mutual fund and the best mutual fund and both of them may have been read by the same Dilbert in his cubicle at the SEC.

There is one excellent way to find out which fund to buy. It is based on performance. How much has the fund increased in price during the past 12 months? Just 12 months. Many financial analysts want you to look at 3-year, 5-year and 10-year performance. Remember that horse? I don't care how many races he won 3 or 5 years ago. Can he run NOW? There are many publications and web sites that tell you the best performers. Investor's Business Daily prints a list of best performing funds each day. You might have to see the paper every day as they sometimes just tell about the long-term performance. You want the last 12 months and the last 3 months.

Three years ago you could have bought the best performing fund on the street and today have a dog. I call a dog any mutual fund that is not outperforming the S&P500 index.

If you were a jockey you would want to ride the fastest horses because in many races you get a percentage of the purse. The same applies to mutual funds. You must own only the best performing funds at all times. Like the jockey you must pick the fastest horse if you want to be a winner.

You should review your fund holdings monthly to see that you are only in the best funds. It might take you an hour, but you will find that you will double the current return on your mutual fund investments. Do it!

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at and discover why he's the man that Wall Street does not want you to know.

Runescape Guides - A Beginners Guide To Making Money On Runescape

If you are reading this it's probably because you are interested in Runescape and more importantly making money on Runescape. With millions of players now playing the online game, it's no wonder that there is such a huge demand for making money guides for Runescape.

More or less as soon as you have finished on Tutorial Island, the fun begins. It's easy to get a little overwhelmed for the first few times you go on. The whole place looks so big and confusing. There are people everywhere, probably trying to trade with you do you even know what trading is yet?

Take your time and look around, you don't (and probably won't) make it around the whole world on your first visit. Chances are, you might get lured into the Wilderness though Players are good at doing this to you and it's something that you should avoid at all costs. Never follow someone that tells you to follow them past the warning ditch into wildy, it's where players can kill each other (known as PK player killing).

Next, you might be told that the best way to start making money is by killing chickens and collecting their feathers. It's a very good idea, but you need to collect a few hundred (about a thousand ideally) and sell them all in one go to make the most amount of money from them.

A much better idea is to go mining. As you mine you are gaining experience and pushing your levels up, as your levels progress so does the available ores. The one you can start mining straight away is copper and tin, if you smelt these together them produce bronze. I strongly advise doing both mining and smelting to start with. Not only will it take your experience and levels up, it's easy to sell and in demand most of the time.

This brings me on to another problem that people new to the game soon come across. Not everything stays at the same price all the time. Supply and demand play a big part of how much something costs. For example, yew logs are normally in demand all the time, whereas sapphires can be sold for lots of GP (gold pieces the currency of Runescape) on one day and then nothing the next. If lots of people start to sell something at the same time, the price will go down. If there is hardly anyone selling something, the price shoots up. Learning how to judge this is important.

Making money on Runescape takes time and effort, but the rewards are certainly worth it. Anyone with lots of GP will hold power, power can get you almost anything you want. It's easy to see why there are lots of people playing the game purely to make money (you can also make money in the real world given enough time.)

To get more great runescape guides, including many on how to make money on Runescape, simply teleport to our great new blog Runescape Guides & Tips

Taking Risk on High Yielding and Broader Capital Ventures

Private Equity Venture Capital is an investment stocks from private firms that are not listed in stock exchanged market. Usually the exchanged market is composed of members who inter-sale securities in a definite stock market set at a particular time, or fixed buying timetable of closure. Private equity is funding on a very broad sense. Types are leverage buyout, growth capital, angel capital, venture capital, and the mezzanine capital.

Some Types of Private Equity Venture that are Popularly Favored

1. The Leverage Buyout

This kind of venture capital is set on a ratio of 90 to 10 percent capital funding distribution coming from loans, or second party funds with a 10 percent equity of the base company, using the assets of the enterprise to pose as collateral for those borrowed funds, and payments thereby of said loans will be paid by any cash flow, proceeds, or acquired gains of the subject business in equity.

In some instances, a significant amount of debt will be incurred to zero equity at all (disregarding the remaining 10% if it's not available at all). Usually, this happens when an enterprising group takes over the acquisition of a public or private company or business that's in the brink of insolvency due to mismanagement, or corruption. In other cases it is a combined capital from the buying group of managers, and from outside funding thru acquired debts, most often in form of high yield "trash" bonds.

2. The Angel Capital

This private equity capital venture that involves several business entrepreneurs joining together as a group "angel group" with the aim to invest as a collective shareholder of an entrepreneur's stock, with visions to specialize in some industry's expertise, likewise marketing in specific markets of target.

A wide range of innovative industries that has been patronized by the angel group capitalist, from software, communications, manufacturing, medical equipments, and various innovative devises used in hospitals and in the medical profession. These Angel groups aim at contributing to the economy in particular, and usually choose to involve with entrepreneurs just within their regional jurisdiction, so their visions will be established where it is projected to be catered along.

3. Mezzanine capital

It is a capital (debt incurred in equity capital ventures), which operates in a very broad financial process from the point the indebtedness has been drawn from a financier up to the time payments are settled, thus making a risky venture but with high yielding profits in investments classified as "subordinate" (a preferred stock), debt representing a claim on the Company's assets that are directly next level-higher than the company's shareholders.

Mezzanine debt often includes equity warrants, a separate clause attached to the obligation (notwithstanding the usual charge on interests), a debt conversion feature, more likely similar to convertible bonds.

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Forex Course Trading

Nothing can help you better understand the nuances of the exciting tools and strategies of the forex market than a forex course trading. If you are a first time player or want to start as a foreign currency trader, a course in the forex market can guide you and build your confidence to face the real world.

The foreign currency market is highly developed with some of the most advanced trading systems and features available to make your decisions more scientifically. Whether you are a day trader or a long term player, you need to develop your own strategies to time the market and your entry and exit points. Forex course trading can help you in your understanding of the terms and concepts. As you learn the basic tricks of the trade, you can learn the advances strategies, straddle concepts, technical analysis indicators, charting software and other tit bits to gain your foothold in the forex market.

Forex market demands a fair bit of knowledge about the finer aspects of trading and techniques to be successful consistently. Hence it is all the more important that you are armed with right training. Forex course trading can fill that gap and make even a novice an expert in the field.

While it is true that no forex trading course can make you rich overnight, it is also true that there are no magic formulae to make money in the shortest possible time. It is only patience, hard work and consistency that brings dividend in the long run. A good course will equip you not only with the trading strategies but also how to handle exceptions and time your market moves.

Charting and Technical Analysis are one of the most important tools for predicting the future trends and fluctuations. Forex course trading will help you do that to give shape to your strategies for your good. A good trader does not spend his time and energy trading all day. He looks for 4 or 5 good trading opportunities in a week and place his orders based on that analysis. The timing is very important and so is the correctness of his prediction. This way you can earn better than the expected returns without having to time the market all the times. Hence an understanding of the trading systems and rules allow you to concentrate on exceptions rather than all the currencies and commodities for making an entry in the market.

If you are planning to take forex course trading, never be enamored by all those claims of making risk free profits by trading in currency spot and futures. Remember that there are no free lunches. Currency trading is a specialized field and has its own risk reward paradigm. In most of the cases, you will have to adjust your trading strategies to fit that paradigm to remain within the ranges. One wrong move and all your equity may be wiped out. The forex course trading will also help you to understand that sometimes it is better to cut losses than to cut a sorry figure later.

Thomas D. Houser
The key to successful Forex trading is knowledge.