Currency Trading With Great Tips

Currency trading with great tips can help you push your trading from mediocre to great. This is an exciting market to get into where you get to work from the comfort of your own home and generate an income solely by yourself. That may scare some, but it is liberating to others.

How important is the news?

I think it is very important, but you don't have to look at it that way. The way I view it is that it is free information. I get up in the morning, turn on the television and watch it while I drink my coffee. It's like my free personal consultant.

You need to pay particular attention to the news that is talking about the economy or will have an affect on the economy. The most important piece of news is an interest rate change by the central bank in your country. This basically signifies that the supply of money in the economy will change, which means the price of currency will change. You will also want to watch out for news on GDP, consumer spending and unemployment.

When should I trade?

I think the best time to trade is during the peak hours. This means there is a lot of people trading and a lot of money moving around. The reason to trade at this time is to ensure that market forces are in control and no one trader can manipulate the market. At this time a big bank could make a huge trade, and the affects would be minor because so many other people are trading. If you look at an off-peak time, this same bank could cause a currency to go in a completely opposite direction.

What software should I use?

The best software I've come across is Forex Killer. It is able to find profitable trends, so you can make more profitable trades. It also has automation features that allow the software to look after trades while you're away from the computer. It's like having a second employee that works 24hrs a day. It is an essential tool for your toolbox.

The automated software of Forex Killer will give you an immediate edge in the market. Make trades that work for your profit line. For more information on the Forex Killer software, check out Forex Charting Software.

Reuters - British banking giant HSBC will try to raise $18 billion to quell investor concerns as a worsening global economy punished famed investor Warren Buffet's Berkshire Hathaway with a 96 percent plunge in profits.

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Trading Timeframe Selection

Well, I've had a frustrating week. No opportunity to trade until Friday, and no opportunity to work on my website and newsletter service. NOT HAPPY!!!

But then, that happens to us all from time to time. Life has a habit of failing to consult with us, prior to messing with our plans.

What happened? Well, before I was trading I used to work as a pilot, with a specialty in aviation safety. I've maintained a link to that industry, and still do some work on a part-time basis. Usually it's not a big deal at all, and I can fit it in around my life. Sometimes though, a bit of a crisis happens (safety's like that!) and I've got to travel away, and well... my plans just don't matter anymore.

Yeah, I know. I've got no-one to blame but myself. After all, I choose to do this. And this probably has no relevance to your life. So let me get to the point - how does this story relate to the title of this article - 'Trading Timeframe Selection'.

Ok, those of you who have been around my website for a while know that day-trading is my thing. I like the short timeframes. Anything more than 5 minutes is way too long for me. Why is that? Well, several reasons really:

1. More action.
2. Tighter stops (I hate large losses).
3. Psychologically, I'm a bit of a control freak - I like to monitor a trade from start to finish.
4. I can sit in cash when I'm not trading, so it's no problem if I get called away and can't trade for a day or two.

Really, it's all psychology!

I used to trade daily charts several years ago, and really hated the 'surprise' each day when I woke up to see what the US market had done to my position overnight. Now, when I'm trading, I can manage the trade closely. And when I'm not trading, I'm out of the markets. Simple!

Day-trading is just a perfect fit for my psychology. And it just happens to fit my lifestyle as well, because if I have to go away quickly I'm not leaving open trades in the markets.

For some crazy reason, about six weeks ago, I decided that I should look into trading daily charts again because that would give me more time to work on the trading education website & newsletter. I decided to trade options on equities, which would allow me to place defined-risk trades and profit from theta decay. Great plan! So I set about simulation trading for a couple of months, just to be sure it would work for me. Well, everything went fine until this week.

Suddenly, I couldn't monitor my trades. I'm left in the market with an overall delta positive portfolio, and no access to a computer to adjust the trades, and the Dow drops 358 points. Not a big deal really, as it's simulation. The position had been in profit, and is only sitting on a slight loss now, so with three more weeks till expiry there's still a great chance to work my way out of trouble. Of course, had it been live I would have phoned my broker and closed out all positions.

But here's the real lesson for me:

1. Daily charts do not match my lifestyle,
2. Daily charts do not match my psychology, and
3. Daily charts do not match my risk tolerance.

I wasn't comfortable holding positions overnight when I couldn't monitor them. And the whole 'speed' (or lack of speed) of the game frustrated me. Could I get used to it? Absolutely! But why bother when I've already found my niche. I'm a day-trader. Why try to change?

So, what's your perfect timeframe?

The only way to find out is to try the different alternatives. These days you can get a demo or simulation platform for almost every market, and timeframe. So there's no excuse for not trying the different timeframes to find the one that fits your psychology like a glove.

Try the short timeframes for a couple of weeks. Try the intermediate timeframes for a month or so, say the 1 or 4 hour charts. Try the daily charts for a couple of months. While you're at it, try the weekly charts.

What you're first attracted to is not necessarily the right fit for your psychology or lifestyle. When I first got into trading I traded the weekly charts on stocks. This changed quickly to daily charts. And then over several years it progressively got shorter and shorter. Maybe day-trading would not have suited me back then, but the thing is, I never even thought to try anything else. Had I done so, I might have saved myself years of 'daily chart' pain.

So what are you waiting for? Test your timeframes, and find the right one for you - the timeframe that matches both your lifestyle and your trading psychology.

Happy trading,

Lance Beggs

Copyright 2008. Lance Beggs. All Rights Reserved.

Would you like to learn more about how I trade the forex and equity index markets? Check out the articles, videos and trading resources on my website right now at http://www.YourTradingCoach.com

Reuters - Even if the government took a large common equity stake in Citigroup Inc, worries would likely persist about the bank's ability to absorb soaring losses in a deepening recession.

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Online Forex Day Trading The Tao Of Rapid Wealth Creation And Perpetuation

Foreign currency trading is the most profitable and powerful way to make money today in the world.

It is a 2.5 trillion dollars daily global market and business.

For this reason the knowledge and the secrets of how to do it successfully have been kept away from the public for thousands of years.

This is because it is the jealously guarded SECRET of how the Money and Power Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the Movers & Shakers of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas make their money and get rich.

They create vast fortunes easily trading foreign currencies.

Thereafter, using this great wealth, they create factories to manufacture consumer goods and products and hire you, Joe Bloke to work in those factories, banks and jobs at minimum wages.

So, it is no wonder why they dont want you to know about the REAL TRUTH and SECRET on how to generate great wealth through foreign currency trading.

If you know how to trade foreign currency and generate $100,000 monthly for life, will you be idiotic, nave and crazy to go to work at these DEAD END jobs to earn minimum wages and be paid nickels and dimes?

So, there has been a persistent organized campaign by the powers that be, the Money Elite to KEEP AWAY AND HIDE these SECRETS of creating vast wealth from foreign currency trading.

That is why they are always floating false propaganda and negative campaign in the mass media that currency trading is risky and you should not do it because youll lose all your money.

If you go to your bank manager or money management advisor or investment management company and tell them that you wish to make money at home from online currency trading, they will scream at you and try to discourage you and frighten you with the false information and half truth that it is risky and that youll lose your money.

This is because it is THE SECRET with which they make money and get rich!

Citibank alone makes $20 billion dollars trading currencies yearly.

Most banks, including your bank trade currencies and it is among the major ways to create income.

It is just that they dont advertise this secret.

George Soros, the King of forex trading makes billions of dollars yearly trading currencies!

It is reported that a few years ago, he nearly caused the government of Thailand to go bankrupt because he made so much money trading their currency!

Yes, foreign currency exchange trading or forex trading can be risky.

It is true, you can lose your shirt and go bankrupt.

But this is half of the truth.

The other half of the truth is that if you buy and study a good forex currency trading e-book guide or program and understand how it works, avoid the pitfalls and get to know the secrets of risk management and trade with discipline, you can get fabulously rich so fast it will make your head spin round and put the devil to shame.

This is why there is an organized campaign to discredit online currency trading.

If you get rich so fast, then youll not need to depend on the Money and Power Elites and their jobs and welfare system where they allow you nickels and dimes to keep you subjugated.

If you get rich too fast, they will no longer be able to manipulate you into voting and keeping them in power to continue milking your life by making you labor and work yourself to death making them rich.

There are so many reasons why most beginners in foreign currency trading fail to earn money and instead lose all their savings.

When they first hear about how easy and fast it is making money from day trading currency, they search the internet and find a forex trading broker.

Then they open a currency trading account and put in a few thousands of dollars in the online currency trading account and immediately begin to try to earn money from online currency trading.

And they get entangled in all the foreign currency trading sophisticated strategies and systems of technical and fundamental analysis such as reading Forex charts, Moving Averages, Elliot wave, Stochastics, Bollinger bands, Directional movement index, Trend and Oscillator indicators, Fibonacci retracements and others.

They spend all day and night listening to business news on radio, reading forex newsletters, forex articles in magazines and watching business news on TV

These beginners dont take their time to buy a valid online currency trading e-book guide to study and understand the forex market and the currency trading SECRETS before they begin trading.

They dont open the free demo trial forex trading account to practice for free to develop viable profitable currency trading skills first before they open a paid forex trading account to begin trading and making real money.

They make the fatal and dumb mistake of trying to fly in the world of foreign currency trading market before they learn how to crawl.

So, they get confused, make grievous foreign currencies trading errors and lose their money.

When they lose their money, they will not accept responsibility because that is the difficult part.

The easy thing to do is to blame their mistakes on online currency trading and to declare and gripe that it is risky and a scam designed to con the unsuspecting public.

This gives them the justification to begin filing false complaints and instigating legal action with the lame excuse that they were nave and didnt know the risk involved and so have been ripped off.

The truth is that there are at least one million people around the world who have foreign currency trading skills and do it well to make millions of dollars monthly!

Yes, sometimes they will lose.

But most of the time they are fabulously profitable.

I once read about a taxi cab driver from New York who started trading foreign currencies about 10 yrs ago.

While driving his taxi cab, occasionally during his lunch break, he will log into his forex trading account and enter a few currency trades.

By the end of his driving day shift, he would check his online currency trading account and was always surprised to find that for a few minutes of trading currencies, he had made more money that day in minutes than he made driving the cab for a whole month.

This encouraged him to stop driving the taxi cab and to begin trading currencies full time.

In 10 years, he made $4 billion dollars ($4,000,000,000) trading foreign currencies online and was listed in Forbes Magazines 400 richest Americans!

He is just one out of the many average people all over the world who took the time to study online currency trading, understood it and trade it correctly and are making millions of dollars without any hard work.

You too can do the same.

It is simple.

If you can click your mouse once to buy the currency and in a few minutes click your mouse a second time to sell them, you can make money.

It is a no brainer. Even a caveman can do it!

So, foreign currency trading is not difficult to understand or to do like stock or bond or commodity trading.

If you know where to get a good and valid forex trading guide or e-book and be patient to spend 1 hr daily to study it to understand the foreign currency trading market, how to click your mouse to buy and sell the currency; and if you will be patient to do the free demo trial for a few months before you open a paid forex trading account to begin trading, you can get obscenely and insanely rich so fast, it will make your eyes want to pop out, seeing all the piles of cash you generate just by clicking your mouse twice for a few minutes daily!

One powerful secret that will help you as a beginner is to avoid hiring money managers at the beginning to trade currencies for you.

The reason is that 90% of these money managers who advertise with highly impressive websites and brochures and also in TV infomercials and radios and seminars are fraudulent.

When you hire them to trade for you, they will over trade your account (churning) so as to generate a lot of trading fees for themselves because whether they make money for you or not, you must pay them their fees.

The more they trade your account, the more fees they generate for themselves!

By over trading your forex currency account, they expose it to massive risk which will eventually lead you to lose a lot of money.

This is because there are certain days and times which are profitable to trade and there are some days and times which are not.

Therefore by over trading (churning) your currency trading account, they get rich at your expense.

Plus, some of them will even use some profits they generated from trading your account to trade for themselves and make themselves rich without you knowing what is going on.

As if that is not bad enough, some will entice you to trade on margin. This means that they will loan you money to trade.

But the trick is that they are loaning you digital money which is created from the air and has no value.

All they do is go to your account and enter any amount of money they wish to loan you. (They dont actually put real money into your currency trading account!)

This is not real money because it is just digital artificial numbers.

But if you use this fake funny digital money to trade and lose, then youll owe them real money!

Youll be required to pay them with real money!

And if you fail to pay them, they can freeze your bank accounts, assets and homes to collect the debt.

This is how most of these brokers get rich at the expense of nave beginners in online foreign currency trading.

So, if youre a beginner, avoid hiring money managers to trade for you at the beginning. Stay away from managed trading.

Instead learn to trade and after you have made at least $500,000, contact us to give you the list of the best and honest money managers in the world (as well as the best forecasting services) who can trade for you and make you richer.

There is another fraud which some money managers perpetrate.

After you open a paid online currency trading account and put in thousands of dollars in there for them to trade for you, they use your money to trade for themselves.

Then they use a computer software to generate a fake forex trading account statement for your forex trading account which will show that youve lost money.

There is no way most people will find out, because you cant access their trading activities.

And sometimes even when you find a honest and reputable money manager to trade for you, when your account becomes profitable and you request to withdraw some of the money, they will begin to give you a run around, excuses and try to discourage you from withdrawing the money.

If you persist, youll find out that suddenly your account will begin to lose money because they have softwares to manipulate it and generate dubious account statements to make it seem as if youve been losing money!

Above all, most beginners in forex currency trading fail to earn money because they spend too much time in doing complicated forex mathematics, reading charts, listening to business news on radio, TV and reading too many forex newsletters and magazine articles, which are conflicting, confusing, time consuming and counter productive.

They spend so much time over stuffing themselves with forex trading news and information that they become constipated with information and overwhelmed and so have little or no time to actually click their mouse to buy and sell the currencies and make money.

Most beginners also are unable to find and use a good currency trading system and software.

Some of them are even conned into buying outrageously expensive trading softwares and system for $4000 from some companies who advertise on TV infomercials late at nights.

They dont know that they can get the same forex trading system and softwares for free online at the websites of some forex trading companies!

These $4000 softwares are not for beginners and when we checked them out, we found they are complicated and not easy to use.

Infact after you manage to master how to use it, they will not help you to make more money!

So, it is not wise squandering your hard earned $4000 to buy them.

If these over priced worthless forex trading softwares work as they are advertised in seminars and infomercial, the companies will not be selling them.

Instead they will keep them secret and use them to make billions of dollars.

If you wake up tomorrow and discover you have a goldmine underneath your house, will you go out and advertise in TV infomercials and radios and seminars to sell your house for $4000???

The truth is that most of these infomercial advertising forex companies dont really trade currencies. They are just sales people. Shysters. Tricksters.

They make their money by peddling worthless forex trading softwares to the nave beginners for $4000.

When you check one of these companies out (one of them has the audacity to call their worthless software Forex Made Easy), youll discover that the CEO of this company actually admitted that not only that he does NOT use his $4000 software to trade but he knows nothing about trading currencies!

He only lends his name to his company to use to market their worthless foreign currency trading software.

The companys pitchman who conducts the seminar is a sales man and he also doesnt trade currencies because he had committed fraud in the past and was barred from trading commodities.

While the CEO of the company runs infomercial and seminars peddling worthless forex trading software for $4000, he doesnt use it and doesnt trade currencies.

Instead he hired a money manager who trades the currencies for him!

So, if youre a beginner who desires to get rich fast from currency trading, you must know these insiders SECRETS of currency trading market and the pitfalls and how to avoid all the fraudulent companies peddling worthless forex trading e-books, books, softwares, systems and complicated trading strategies.

There are millions of them.

Beware because they are smooth operators who are very skilled in salesmanship and who can easily dazzle you with their big refined nonsensical English and so con you.

There are billions of dollars to be made in foreign currency trading and you can get abundantly rich trading these currencies online from home or office starting small.

But you must locate and buy a valid foreign currency trading e-book guide.

You must study it and understand it.

You must try the free demo account trading and do well in it before you can open a paid forex trading account to actually begin making real money.

You must begin by trading only one or two currencies at the beginning.

With time as you acquire more skills, you may trade more currencies.

You must learn how to trade with discipline and learn the BEST DAYS AND HRS to trade to be profitable and the other times when YOU MUST NOT TRADE to avoid losing money.

You must know how to go long or short on a currency, how to enter Market Order, Limit Order, Stop Order, OCO order and Entry Order.

If you learn how to do Online currency trading hedging, it will help you to maximize your profits.

You must be disciplined and avoid emotional currency trading.

When you make a reasonable amount of money for the day, stop trading because you cant be profitable at all times of the day and if you dont stop and take your profit, you may end up losing all the money you made.

Above all dont open a paid currency day trading account and trade until you have done the free trial demo account trading for a few months and mastered it.

At the beginning, keep your trading strategies simple.

Avoid complications and advanced trading strategies of technical and fundamental analysis because these are the reasons why 90% of beginners lose money.

Use a simple trading strategy to get rich at the beginning.

Afterwards you may then take advanced forex trading courses and do technical, fundamental analysis and use forecasting services to make even more profits and get richer, making millions of dollars effortlessly.

If youre serious in learning all the insiders SECRETS about how to make millions of dollars trading foreign currencies online, without selling your soul to the devil and without losing your shirt, you must get our powerful currency trading e-book which reveals a very simple and yet profitable and powerful trading strategy which is guaranteed to make you $100,000 monthly for life from home or office.

You can learn to get rich from the jealously guarded foreign currency trading SECRETS of the Money and Power Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the Movers & Shakers of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas.

With the millions of dollars which you make from foreign currency trading, youll be free like a bird to buy a mansion, with the most lavish and expensive furnishings, jewelry, antiques, electronics, a 50ft yacht, dream luxury cars, pick your choice: Lexus X470, $44,000 Jaguar 2007 S type, Silver Porsche Carrera, $180,000 Ferrari Testarossa, Mercedes 2007 Model S Class, 2007 Rolls Royce Silver Seraph, Bentley Mulsanne S, $220,000 Bentley Arnage Silver Tempest or a flaming red Lamborghini Jalpa!

You can make all your dreams in life to come true, without any hard work!

May these insights into foreign currency online investing, foreign currency trading program, investing online, forex trading, day trading, online trading e-book, day trading online, day trading system, day trading course, day trading future, forex day trading, day trading book, day trading firm, day trading training, currency day trading, online future trading, online currency trading, online forex trading, online commodity trading, online currency trading system, currency forex online trading, online trading course, online trading education, trading, online trading investing, forex, forex trading, forex broker, forex market, forex trading system, forex news, forex trader, forex signal, forex trading, online forex, trade forex, forex quote, forex education help you make millions of dollars and to achieve your lifes ambitions and dreams.

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Thank you.

Ikey Benney is the creator of Mscsrrr Millionaire Automated Foreign Currency Trading e-book Guide. Discover how to begin generating $100,000 monthly for life from home or office without doing any work currency trading program: http://www.mscsrrr.com

Reuters - Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.

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What Trading Cannot And Will Not Do For You

Many new traders get pulled into the trading world, thinking that it will make them an overnight millionaire or put them at the top of the food chain. Hollywood may portray the trader as someone who makes money without trying, but this couldn't be further from reality.

Trading for a Living

Whether investing, swing trading or day trading, you must commit considerable hours to make a living. Day trading involves hours at the trading station, swing trading requires a bit more work, and investing is as good for as much as you're willing to dedicate. It is important to realize that although you might be a world-class trader, you're not going to avoid work. Trading is as much as a job as any other position, but the biggest difference is that you are paid based on your returns. How good you may be at investing will directly correlate to how much you make. This is one of the few businesses that will pay you what you're worth.

Professional Trading

Trading likely didn't come easy to professional traders, and it won't come easy to you. Very few professional traders were profitable from day one; it's almost impossible to become profitable without taking losses in the beginning. Do not expect that the markets will be forgiving - losses do happen, but you'll get better with time. Consistent profits do follow losses, and you have to be willing to wait them out.

You Have to Study to Become Great

One of the biggest professional insider secrets is that you have to be willing to learn to earn. There are many resources available, from profitable trading strategies to step-by-step instructions on money management. Risk and money management tips are often the best areas to learn first, as budgeting is very critical to turning a profit with trading. You'll soon find that money management is on the top list for professional traders; risking too much money or to little can easily turn a complete trading plan into garbage.

Trading is Different from Person to Person

Developing your own trading style depends a lot on what kind of trader you are and what kind of risk you are willing to assume. Investing involves less risk than day trading because it works over the long term, but does not provide the instant gratification of day trading. Day trading can bring big profits in a matter of minutes, but can also be a very gut-wrenching career. You need to have your own trading style to work for you, rather than attempt someone else's trading style. What works for you won't work for others and vice versa.

About the Author:
Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading

Reuters - Merrill Lynch is shifting a majority of its contracts from troubled Indian software firm Satyam Computer Services Ltd to rival Tata Consultancy Services , the Economic Times reported on Monday.

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The Hidden Secret of Technical Analysis

Did you know that there is a whole 'other world' of technical analysis that most novice traders are either totally ignorant of, or fear to go due to the fact that it might actually require some work?

Well, there is! And I'd suggest that if most novices fear to go there, then perhaps it might be worth some investigation.

What is technical analysis? For most novice traders it seems to be one of, or a combination of, the two following approaches:

a. The art of defining recent price action through classical charting techniques such as the Dow Theory definitions of an uptrend and downtrend, and recognition of patterns such as channels, triangles, head and shoulders, cup and handles, and on and on, or

b. The art of representing price action through the numerous indicators available on your charting platform, such as moving averages, stochastics, MACD, and on and on.

This is great. It's a good start. But the fact is that no matter how we define the structure of the market, whether based on Dow Theory, or Elliot Wave Theory, or through an indicator based approach, it is important to remember that this structure defines PAST market movement. It's a simplification that allows us to quickly identify what happened in the past.

Profits come from future price action though, not past price action. So having defined past price movement, these traders then use general rules associated with that past price action to justify an entry into the market.

For example:

* "The break below the neckline in a head and shoulders pattern is a great entry short, with a target equal to the distance from the neckline to the peak of the head." - so having identified a breakout down, they enter short.

* "A moving average crossover is an indication of a change of trend" - so identifying the EMA 10 crossing above the EMA 20, the novice trader enters long.

Once again, this is great - hopefully at least better than random entry. These general rules for entry are fine if you're satisfied they provide a slight edge, and you have a complete understanding of the probabilistic nature of price movement, and an appreciation for the necessity of position sizing and risk management. You may well make some profits.

However I'd suggest that there's a whole other world of technical analysis that you're not seeing. That still won't guarantee success (the elusive Holy Grail doesn't exist, so stop looking), but it will provide further opportunity to increase your edge. Use of this hidden world of technical analysis will allow you opportunities to enter lower risk and higher probability trades. Lower risk trades through getting earlier entries closer to support and resistance areas, so you can safely place tighter stops. Higher probability entries, through analysis based more closely on the truth behind price movement rather than a general rule for pattern or indicator based entry.

So where do we find this 'other world' of technical analysis?

Look behind your indicators, or behind the classic charting patterns, and what do you find?

Price action!

It doesn't matter how we define past price action - an uptrend, a downtrend, a range-bound sideways trend, a head and shoulders pattern, an ascending triangle, wave 4 of a five wave pattern. It's just a label that describes an approximation of past market movement.

The label is not important. What is important is the nature of price movement behind the pattern or indicator overlay.

Too many people will say that, because the price is above the 50 period moving average, or because the 10 EMA is above the 20 EMA, or because they have identified a structure of higher highs and higher lows, the market is in an uptrend. They apply a label - uptrend. And that's it, end of story. No correspondence will be entered into. The market is in an uptrend, and they're looking for trades in the long direction.

Looking beyond the "uptrend" to see how price is really moving can allow us to see the internal strength or weakness of the trend. It can provide you with an insight into the fear, doubt or greed of the market participants that create the price action, which then creates the price trend or pattern, or moves the indicators.

I'm not saying you necessarily have to get rid of your indicators - just recognize them for what they are - a useful approximation of the market.

And recognize that if you want to improve your edge, you may need to look behind the pattern, look behind the indicators, look beyond the label, and see what price is really doing.

* Is the volatility of price movement changing, and what does that mean?

* Is the momentum increasing or decreasing? What does that mean?

* Is the momentum of this price move greater or less than the preceding swing, and what does that mean?

* Is the momentum of this price move greater or less than the previous swing in the same direction, and what does that mean?

* Let's go even deeper, and consider the thought processes and psychology of the people who are long (or short) in this trade, and currently sitting on a profit. Where are they looking to exit? Where are they going to take profits? Where are they going to place their stops? What does this mean for future price action?

8 Let's consider the psychology of the traders who are currently fighting this move, sitting in drawdown, sweating on every tick and praying to the market Gods - "If you can just this once turn price around so I can get out at breakeven, I promise I'll never again take such a stupid trade". Where are these people trying to get out? At what point will the fear become so great that they'll just have to get out?

* Let's consider the psychology of the people sitting on the sidelines, having missed the start of the move. Some of these will be professional traders - where will they be identifying a low risk and/or high probability entry into this trend? Some of these will be novices - where is the absolute worst place to enter, having chased the market and entered simply out of fear of missing out on the move? Yes, some people do enter right at the very worst tick possible. Where potentially is that, and what does that mean for future market movement?

The answer to all these questions will make a great subject for future articles. For now I'd just like you to start looking beyond the indicators and patterns, and discover a whole other world of technical analysis - price action.

Examine the current internal nature of price movement - the speed, the momentum and the volatility. And consider how this is likely to influence the decision making of the novice traders who will be entering and exiting the market based on their own fear or greed.

And try to discover how you can use this information within your current strategy to lower the risk of entry, improve the probability of your entry being in the right place, and improve the management and exit of your position.

If you are interested in improving your current edge in the market, analysis of price action may be just what you're missing. Check it out now.

Happy trading

Lance Beggs

(c) Copyright 2008, Lance Beggs

http://www.YourTradingCoach.com All Rights Reserved Would you like to learn more about how I trade the forex and equity index markets? Check out the articles, videos and trading resources on my website right now at http://www.YourTradingCoach.com

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FOREX Trading Signal Subscription Services - To Use Or Not to Use

Novice and expert traders agree that trading signal subscription services are useful trading tools. Using trading signals to help with buy and sell decisions eliminates some of the guesswork. However, the foreign exchange market (FOREX) is always unpredictable. Even the most skilled analysts sometimes make errors in judgment. Or, the market takes a turn so unexpected that analysts and traders are taken by surprise. Generally speaking, however, trading signals tend to produce more profits than losses.

"Trading signals" are simply advice and recommendations on buying or selling on FOREX. They are delivered electronically to traders when they open an account with a trading signal company. These signals are based on algorithms developed by experts. The algorithms analyze an individual trader's profile and criteria. They compare these against the current market status and prices. They then make buy and sell recommendations based on this data. The subscriber receives e-mail notifications outlining these recommendations.

Each buy and sell signal consists of two price data. They are "take profit" and "stop loss." A "take profit" indicates that the price of a currency is trading higher than it was at the time an order was placed. Using the euro as an example, a trader may see an upward swing in the price. The higher it rises, the more it will be traded. The investor decides his target price and places the order. When the euro reaches the "take profit" level, the profit is automatically transferred to his account.

A "stop loss" is based on a trader's own criteria for minimizing the risk of loss. The trader pre-sets this target based on his own comfort level. It is an order given to a broker to buy or sell a stock when it reaches a particular price. The "stop loss" is the trader's hedge. The investor's euros will be sold when their value falls below the price at the time of order.

There are several advantages to using trading signal subscription services:

* It takes much of the guesswork out of trading on FOREX. It's like having a panel of experts working for you. Trading signal services relies on data and market analysis gathered by those who know FOREX. Financial professionals, mathematicians and computer programmers contribute to the development of the software. The algorithms make determinations based on this information plus the trader's criteria and the current market status. The result is a trading signal delivery system tailor-made for each individual trader.

* It's possible to make multiple trades simultaneously. A lone trader cannot be tied to a computer screen all day long watching the market. The market also changes quickly and frequently. What was true of a currency's value in the morning may be old news by noon. Instead, the investor can watch for his trading signals as they flow in. He can make multiple trades and be assured that his criteria are followed.

* You can "try before you buy." It can be daunting to place money on a system that you've never used before. That's why most trading signal subscription services recommend demo or practice accounts provided by FOREX brokers. Traders are given virtual credit. The investor can set his criteria and then play the market virtually. It usually takes only a few weeks to understand the signals. The trader can gauge his virtual success and decide whether a subscription would be worthwhile. People who use practice accounts typically find the experience educational, insightful and valuable.

There are numerous trading signal subscription services to choose from. Most range in price from $50 to $100 per month. Most offer the same basic services. Packages vary slightly from company to company. To name a few, Forex Trend System and Forex Winning Signals are well known subscription services with trial membership. Comparison shopping and trying demo accounts from several services can help you choose.

Kote Dylan is a beginner of FOREX trader. He has traded the market with a demo account. For those who are new to FOREX, it is recommended to visit Forex Trading System Product Reviews and find out which trading software, tutorial or trading signal subscription service fits your need and budget.

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A Forex Robot to Make You Hundreds Every Day

A forex robot is a highly mechanical trading system that can work almost as a human trader and comes with some added advantages. To earn profit from forex trading may not be an easy proposition if you are not knowledgeable enough with the workings of the market. But if you have software with you, things become quite simple. An efficient robot can return handsome amount with machine-like periodicity. With very little start up cost and without any technical skills you can enjoy the profit generally achieved by the expert forex traders.

A Forex robot can help you to develop a second source of income. You go on performing your usual office responsibilities or carry on with your hobbies, and the forex robot will work relentlessly to earn money for you. Some good forex robots like Forex Tracer or Forex Killer are capable of taking control over the entire situation. They are developed on the basis of historical performances, analysis of the results obtained with various fundamental and technical indicators, and forex experts, who put in their years of experience on the system. These exclusive inputs you can never expect from an average forex trader.

But, it is advised that you do not limit the potential of this kind of software by treating it as a black box. I assure you, it would be exciting to explore some basics to understand how your forex robot can be so precise? What makes it work for you over and over again? This will, in turn, make you more confident with your decisions. There are some factors, which can enhance the performance of their outcome. One such tip would be to use stable pairs only while trading with them.

Read more about a Forex Robot here

Reuters - Stocks rallied for a second day on Friday on hopes Washington's stimulus package and a bank rescue plan will bolster the ailing economy, even as data showed the biggest one-month job losses in 34 years.

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Online Trading - Breaking Through Trading Distractions!

In my opinion, the second biggest challenge that you face in your online forex, stock commodity or futures trading is distraction.

Now, I say the second biggest challenge, because the first challenge is to know what the heck you are doing in the first place! Frankly, if you don't know that- and most beginner and many intermediate level traders really don't- then you're going to need all the distractions you can get to keep you away from the markets so that you don't keep losing your money!

However, assuming that you do know what you are doing in the markets and have a sound plan, then the next major challenge that you face is distraction. It goes back to what we have discussed about the need for mental focus. However, the issue of distraction is wider ranging. When we spoke about focus, we were talking about the need to focus within all the vast variety of choices available to you in the trading world.

With distractions, the issue is much wider and potentially worse still. Here, we are talking about literally everything that can distract you from your online trading. If you are a private trader working from your home, this can be an endless list; the postman, your cat, the need to get some bills paid,the shopping,the fact that it's a sunny day and you'd rather be outside,surfing the internet, checking your email, the telephone, odd jobs around the house, and so on. If you are in this position, I am sure you can add to the list.

Even if you are an investment bank trader, there are still plenty of distractions. Some of the above- email and the internet for example still apply- and there are others. Chatter from your colleagues, meaningless bullshit meetings that you must attend and are not allowed to get out of, the endless stream of media "information" and more.

At least for the institutional trader, it is understood that trading is a business. It is literally his/her job. There is daily accountability involved and it cannot therefore be mistaken for a hobby and treated as one. However, for the person working at home, this is a much easier mistake to fall into, especially at the very start, when you may not have decided upon your trading routine.

Speaking personally, I have to say that distraction is something that I have a big problem battling against, since I do operate from home. The problem is that if your mind is not totally focused upon what you are doing in the financial markets, and getting the process right, the margin for error quietly widens and things can start to go wrong.

The key point to come back to is that trading has to be a business, if it is intended to be your primary source of income for yourself and your family. If that is the case, then it is imperative that you treat it with the seriousness that it deserves. That means that even though you may be working for yourself at home, you need to impose some business disciplines that you would find in a standard office environment.

If at all possible, you should establish for yourself a separate room for your online trading. Wherever possible, you need to give very serious thought to closing the door to family and pets in order to concentrate on what you are doing. (Now, I know that this is hard because my two cats basically have total access to me, and I can't see that changing. But as the saying goes: do what I say, not what I do!)

Let's not forget that neither your friends, your pets, nor your family would have access to you if you were working at an office job somewhere, would they? Hence, closing the door closes out an enormous source of distraction.

Use effective time management principles to deal with other distractions. In other words, schedule other things that need to be done appropriately so that they do not interfere with your trading. Maybe you need to fix upon a time when you check and deal with your email once in the day, or at most twice, but you certainly do not keep looking at it every five minutes or so.

Do you know what constantly checking your email all the time is like?

It's like going to your front door every few minutes to see if there is anyone there! Did you ever think of it like that? Well, if you would never do that, why check your email every 5 minutes?!

What's the big deal? Well, it takes time away from you focusing upon your business, which is trading, not email checking or chatting idly. When you break your focus, then it takes a certain period of time to restore it. If this keeps happening the whole time, your mind is working hard just to stand still, i.e. to keep getting back to where it left off last time.

That is why it is so vital to get this under control. If not, it is not the trading that is exhausting you, so much as the sheer amount of clutter that you have allowed to invade your own brain. They say that failing to plan is planning to fail. Hence, starting today, sit down and plan out what you can do to minimize the distractions during your trading day. Consider the email challenge. Consider too scheduling certain activities together, e.g. make all of your outgoing calls at the same time, when you go out to the shops, make sure that you get that post office visit done too. Try to handle pieces of paper that come onto your desk once, and don't keep coming back to them over and over again.

This is all about organizing you, and you are unique. Hence, it is impossible for me or anyone else to give you a list. You have to come up with it yourself, and then go to work to reduce the distraction to your trading. I've given you a broad hint in what we have been discussing, but it is ultimately down to you.

Remember, your online trading is a business, not a hobby. It will ultimately, if it is not already, be your primary source of income and that upon which your family depends. Hence, you owe it both to yourself and to them to get serious and to get professional, no matter whether you trade from home or on the proprietary trading desk of the biggest firm on Wall Street.

Discover FREE expert Trading videos, podcasts and articles packed with secret strategies to super-charge your Trading and rocket your profits. Dr. Asoka Selvarajah also offers you his critical FREE report, "The 7 Deadly Mistakes Of Online Trading". Visit http://www.OnlineTradingRebel.Com right now!

Reuters - The number of U.S. workers filing new claims for jobless benefits hit a 26-year high last week and factory orders plummeted in December, data showed on Thursday, illustrating an economy mired deep in recession.

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Your Forex Day Trading System Success

Late night infomercials are notorious for toting the success of automated mechanical forex day trading systems. These systems will supposedly make a forex day trader an instant success, netting thousands of dollars to an investor that follows the system to a tee. Unfortunately, many forex day trading systems are flawed and prone to failure. These mechanical systems are more often than not a waste of money.

Fortunately, even without the aid of an automated forex day trading system, forex day trading can still be profitable. One great suggestion for the beginning day traders is to avoid these mechanical trading systems all together. Instead, opt to learn basic trading skills, technical analysis, gain a solid approach to your method of investing, and gain a little experience in the market.

One great way to make a profit with forex day trading is to concentrate on one currency pair, such as the USD/JPY or EUR/USD. Why focus on one currency pair? Because, by observing a single pair you can get a feel for how those currencies flow with the economy and market. You can also cross check it with other pairs when the currencies begin to drastically change. By concentrating on a single currency at certain hours, you will learn when it is best to buy, sell, and hold.

There are two styles of day trading systems. The continuation day trading system is the first. Continuation focuses on breakouts and trends. This style is best utilized when trading during the most active hours of the day. The other type of forex day trading is the reversal day trading system. The reversal day trading system involves trading currency when the ranges are at the edges, betting against breakouts. This system is best during the quieter trading hours, when fading the edge of the range is more probable. Whichever system you decide to use, success comes from the proper use of risk vs. reward and setting stops and profits in the right places.

What forex day trading system you use depends on your geographic location and the currency pairs you choose to concentrate on. Somebody living on the west coast of the US, trading the currency pair EUR/USD, would want to use the reversal day trading system. The EUR/USD trading has quieted down by mid morning Pacific time. In order to capitalize with continuation, that person would have to get up very early or stay up very late.

Remember, having a personal system of stops and profits is vital to making a profit. Someone using the reversal system might look for double-top and double-bottom ranges. If you can get off 5 trades a week and capitalize on three of them, you will earn a nice profit if your wins are 1.5x your average loss.

Important to any forex day trading system is the utilization of a methodology. This methodology can be the creation of a forex expert, your own creation, or a combination of the two. Have trading ideals in mind and have the discipline to stick to them. Don't take unnecessary risks.

Peter Flemming is a professional Forex Trader and is a staff writer for a forex Trading Profits, a website about learning forex trading and trading education. Download a copy of our free forex ebook today!

You may republish this article on the condition that it is not edited and all html links to our website are kept intact. TradingProfits.org All Rights Reserved.

Reuters - Macy's Inc said on Monday it would slash about 7,000 jobs and cut its quarterly dividend as it forecast earnings for fiscal 2009 that fell far below Wall Street expectations, sending its shares down 4 percent.

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